Oreo Company Background

Oreo is a cookie cream biscuits which were first developed and introduced by the National Biscuit Company aka NABISCO in 1912; Oreo was first launched in the United States of America as the first and original cream cookie with its famous slogan (America's Favourite Cookie). Many costumers seem to believe that Oreo biscuits are really the first and the original cookie, whereas, Nabisco copied the idea of Sunshine Biscuit Inc Hydrox cookie. The Sunshine Hydrox cookie first came on the American markets in 1908, and thrived until 1912 when Nabisco launched the remarkably similar Oreo. Given Nabisco’s marketing superiority, Hydrox never had a chance. In 1998 sales of Hydrox totalled $16 million against Oreo’s $374 million. The success of Oreo

Company’s background

2.1 The National Biscuit Company Nabisco originally known as National Biscuit Company is an American company brand of cookies and snacks that has been in existence since 1898. During their 109 years in existence, they have grown through natural growth, mergers, and acquisitions. This has allowed Nabisco to be the leading snack maker in the world the company is a subsidiary of Illinois-based Kraft Foods. The Oreo chocolate sandwich cookie was first introduced in Hoboken, N.J. in 1911. Oreos today are far and away the world’s most popular cookie. The Oreo family accounts for approximately 10 percent of all store cookie sales--a $3 billion market.

However in recent years Nabisco has been reluctant to adapt to current market trends. The company was focusing on producing new versions of existing products to make them more convenient.

2.1.1 Mission, Objectives, Corporate Image, and Brand Image

2.1.1.1 Mission Statement “We want our consumers to regard us as their primary snack food. We want our customers to know that we have their wants and needs in mind along with working to create products that will cater to their health conscious lifestyles.”

2.1.1.2 Marketing

The company was purchased by Keebler Company which was subsequently purchased by Kellogg in 2000. At the time of its purchase by Keebler, Sunshine Biscuits was the third largest cookie baker in the United States.

Sunshine Biscuit, Inc. introduced the Hydrox cookie in 1908. Nabisco copied the idea and introduced the Oreo cookie in 1912. Those that knew Hydrox preferred it to the Oreo. It tasted crisper, was a little less sweet, and was made with vegetable shortening rather than animal fat (Due to health concerns, at some point, Nabisco stopped using animal fat). Nabisco’s superior distribution and promotion gave it a far greater fan base, and turned the Oreo into an American cultural icon. In fact, their pervasive marketing gave most the notion that Oreo was the original and Hydrox was the copy. Trying to thrive with such a competition, Sunshine Hydrox went through major adjustments such as:

• New name – Keebler Droxies. Hydrox name means that it came from a mix of hydrogen and oxygen to signify pure ingredients, but consumer research studies revealed it sounded more like a cleaning fluid.

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