IndexThree Product LevelsProduct ClassificationsPricing StrategiesDistribution StrategiesPromotional ToolsConclusionMondelez International, Inc is a multinational confectionery, food and beverage company that focuses primarily on manufacturing of American-based snacks. With net sales of $25.9 billion and net income of $3.4 billion during 2018, Mondelez is one of the world's leading snack companies. Mondelez initially came from Kraft, but due to corporate expansion, Kraft was then split into Kraft and Mondelez. According to Marketing Week, “Fast, focused and fearless” are the 3 qualities that Mondelez International is committed to upholding in the market. Brand families such as belVita, Cadbury, Halls, Tiger and Oreo are part of Mondelez's portfolio. “Snacking made right” is Mondelez's slogan to empower people to snack the right way. It is their responsibility to be the future snack leader by producing the right snack at the right time and in the right way. Since Oreo cookies are one of Mondelez's products, it will be the product that will be analyzed in this report. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Three Product Levels Three product levels consist of the main product, the augmented product, and the real product. The main product is the benefits the product brings to consumers. As mentioned by Mondelez International, the main product of Oreo cookies is to satisfy our hunger needs. Oreo cookies could serve as between-meal snacks when consumers are hungry. Next, the actual product is the tangible, physical product purchased. Mondelez has successfully established its trademark for Oreo, whose name "Oreo" makes consumers imagine the cookies as sandwich cookies with frosting. Additionally, even though Oreo packaging can vary depending on tastes, Oreo packaging is still always designed to be in blue. This is to allow customers to easily recognize the product. As Mondelez has built its reputation in the snack industry, it has also provided quality assurance to consumers. Finally, the augmented products added value to the products. Just like with Oreos, Mondelez offers free shipping to customers who purchase Oreos in bulk for retailers or wholesalers. Product classifications Since Oreo is a food product that could be classified as a snack, it falls under the ready-to-eat product classification. Convenient products are usually purchased frequently by customers without making much comparison and making an effort to research the product when purchasing. Therefore, it is important that Oreos are priced lower than other food products. According to Mondelez's annual report, Oreo cookies are placed in various environments such as supermarkets, gas stations, vending machines, convenience stores and retail food outlets. They are made easily obtainable so that consumers can purchase them whenever they want. Pricing Strategies For Oreo cookies, Mondelez has used two types of pricing strategies, which are segmented pricing and promotional pricing. First, segmented pricing is set based on customers, products, and locations. These have influenced product prices and change over time. Oreos sold at a supermarket may have different prices than Oreos sold at an airport. For example, the selling price of a 137 gram pack of Oreos at the local supermarket might be RM3.67, but at the airport the same pack of Oreos might be.
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