The Oreo in China: Time to Get it Right or to Get Out

As Shawn Warren, head of biscuits at Kraft for Asia Pacific, surveys the China market for Oreos in late 2005, he realises that changes need to be made, and fast. Oreo was first launched in China in 1996, but sales have been flat as the rest of China has been setting record growth in the biscuit industry. Oreo’s turnaround needs to be quick in order to avoid it being pulled altogether, which would be a complete disaster for the company. What should Warren and his team do to turn this global brand around in the world’s most populous country?

The Oreo case illustrates the dilemma faced by a successful multinational brand when entering an emerging market, namely China. It covers the complexity of dealing not only with differing consumer tastes, but also the challenges of local competition and distribution systems. The case provides a rich historical account of Oreo’s entry into China and the problems facing Kraft and its management as it strives to reach its full potential in a large and fast-growing emerging market.

This case can be used to illustrate a complete re-evaluation of the product, pricing, packaging, communication and distribution strategy of an existing brand in an international market. It can also be used to explore the global versus local mix that is needed for success in an international market, and to illustrate the strategies necessary to succeed in emerging markets like India and China.

Inspection copies and teaching notes are available for university faculty. To receive an inspection copy and teaching note, please email cmpshop [at] smu.edu.sg with your registered faculty email ID and a link to your contact information on the faculty directory at your university as verification. An inspection copy and teaching note will then be sent to your faculty email account.

Download Information

SMU Faculty/Staff can download the case & teaching note on iNet with your SMU login ID & Password via the following links:

· The Case (SMU-12-0020)

· Teaching Note (SMU-12-0020TN)

For purchase of the case and supplementary materials via The Case Centre, please access the following links:

· The Case (SMU-12-0020)

· Teaching Note (SMU-12-0020TN)

For purchase of the case and supplementary materials via Harvard Business Publishing, please access the following links:

· The Case (SMU-12-0020)

· Teaching Note (SMU-12-0020TN)