Brand Update : Oreo does it again with 5Star

In my earlier posts on the brand, I had talked about how the Oreo brand is being used as a platform to launch variants by collaborating with other brands in Modolez's portfolio like Dairy Milk. Oreo is now experimenting with yet another launch this time with the 5Star brand. Recently the company launched a new product Cadbury 5 Star Oreo which combines the caramel of 5 Star with Oreo. Mondolez has rightly realized that their products both in the chocolate and biscuit categories are no longer water-tight compartments but the consumers perceive these as a part of the snacking category which is much broader than chocolates and biscuits. 

This realization has given rise to the new strategy of cross-pollination ( as mentioned in some business news reports) of brands giving rise to new variants. The advantage of such collaboration is that there are instant awareness and motivation for trial. For snacking category success, a trial is a pre-requisite to success. When two familiar brands come together for a new variant, consumers don't have a reason not to try the variant and the product efficacy then will decide the fate of the new variant. For snacking category, consumers look for variety and novelty. So these experiments are a necessity if one wants to succeed. 

Mondolez should be credited for thinking beyond their products. How many brand managers would agree to their iconic brands to be cross-pollinated with other brands within the brand line for creating new variants? 

These experiments will encourage marketers to think beyond the products thus eliminating the occurrence of marketing myopia. It is not about whether the new variants succeed or not. This example also resonates with the advice given by Roberto Goizueta to the Coke executives who were rattled by Pepsi Challenge. Goizueta told the executives to focus on what percentage of fluid intake of an individual can Coke capture rather than be worried about the growing share of Pepsi. This changed the mindset of Coke executives encouraging them to rise up to the Pepsi Challenge. In the same manner, Mondolez is trying to gain a larger share of the whole snacking market rather than being narrowly focused on individual brand share. This probably is encouraging the company to launch this type of products.

Lessons of Leverage from Cadbury & Oreo

When you have two very popular brands, how often you think about leveraging the strength of those two brands for mutual advantage? Lessons are to be learned from the two most popular brands from Kraft foods - Cadbury and Oreo. When Cadbury was taken over by Kraft foods, many saw synergy in the business and not brands. However, Kraft foods have very cleverly leveraged the strengths of both the brands by launching variants exploiting the strength of both the brands.

Take the two products - Cadbury Silk Oreo which has Oreo biscuits inside and Oreo biscuits dipped in Cadbury chocolate. Consumers have different tastes, some like their chocolates to be crunchy while others would like creamy chocolates with no interference in between. But more importantly, consumers are craving for more consumption experiences. They are willing to experiment with different combinations and here loyalty seldom matters. 

So when the two brands which have powerful equity decide to collaborate and bring new products together, the experiences multiply manifold. Of course, there will be consumers who don't like these variants, there are original products for them. However, a large set of consumers of this category of foods love new varieties and combinations. 

While many FMCG brands bring out variants and combinations, it's very rare that such brilliant leverage of brand strength has occurred in the Indian market.