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SWOT ANALYSIS of OREO

Oreo is the number one cookie brand worldwide with over 40 billion cookies produced annually and $3.28 billion in annual sales. However, it faces threats such as unhealthy ingredients limiting consumers, strong competitors like Mars and Nestle, and high advertising costs. Opportunities for growth include launching new flavors to attract new customers, marketing toward children, and partnerships with other popular brands. Weaknesses include some product types selling poorly and being seasonal or discontinued, and cookies not being the healthiest option due to high sugar and fat content.

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Kunal Arora
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1K views2 pages

SWOT ANALYSIS of OREO

Oreo is the number one cookie brand worldwide with over 40 billion cookies produced annually and $3.28 billion in annual sales. However, it faces threats such as unhealthy ingredients limiting consumers, strong competitors like Mars and Nestle, and high advertising costs. Opportunities for growth include launching new flavors to attract new customers, marketing toward children, and partnerships with other popular brands. Weaknesses include some product types selling poorly and being seasonal or discontinued, and cookies not being the healthiest option due to high sugar and fat content.

Uploaded by

Kunal Arora
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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25/10/2020

SWOT ANALYSIS OREO

❖Strengths
• It is the number one brand in the cookie market in the world.
According to Statista.com, Oreo has the biggest turnover in the cookies industry (of 3.28
billion US dollars) because it is the best-selling one. More than 40 billion cookies are
produced per year.

• Authority of Oreo in social media.


The company has an enormous audience. On Facebook, they have developed customer
relationships stream up to 38 million followers, and 3.1 million on Instagram.

• The Company applies widespread distribution means.


One can find Oreo products in more than 100 countries. The biggest market suppliers are
the United States, China, The United Kingdom, Indonesia, Canada, Mexico, Spain,
Argentina, India, and Germany.

❖Weaknesses
• Not all the product types are accessible enough and affordable.

For example, “Uh-Oh Oreos,” “Oreo cakesters,” and others had the lowest
amount of sales, which induced discontinuing their production.
• There are variations of Oreo goods that are seasonal.
Sometimes it makes consumers disappointed because they need to wait for a while to be
able to purchase their favorite one again. For example, “Cool Mint Creme Oreos,”

• Oreo cookies are not the healthiest option.


A serving of Oreo offers two pieces of biscuits that are 140 Calories. This sounds good;
however, the cookies are addictive, and one cannot end up with just several slices. In turn,
it causes to exceed the daily amount of optimal sugar and fat, thus, gain weight in a short
period.
❖Opportunities
• Launching new variety of flavors.

It not only will grow the percentage of sales, as people will at least like to try the new
product but also will have a positive effect on the popularity of the brand.

• Attracting the attention of children.


Children are the main purchase guiders over parents; thus, there is still a chance to evoke
attraction among kids. Tricky promotions or commercials designed for kids are once again
a practical tool to be exerted.

• Tying up with other popular brands.


Cooperation with competitive products is a fragile marketing step, which will have a
positive effect on brand popularity, sales growth, revenue streams, and the Company’s
overall progress.

❖Threats
• Unhealthy ingredients.
Oreo cookies include much sugar, fructose, fats, corn syrup, and other hazardous
ingredients for people with diabetes. It limits or eliminates potential consumers’ purchasing
opportunities.

• Strong Competitors.
Oreo has powerful competitors like Mars, Nestle, Lays, Britannia & Sunfeast, Bingo, etc.
They are considered to be a part of the cookies industry and are purchased as snacks. They
are real competitors for Oreo, which proves their annual sales, lower price, huge
turnovers, and prominence from the world scale.

• The high cost of advertisements.


The cost of advertising for Oreo is high and this cannot be factored into the prices of
products. However, since the company depends on impulse for the purchase they cannot
afford to cut down on the costs of advertising.

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