Oreo has been a staple ever since its founding. Consumers love the nostalgic feelings associated with the brand. Oreo’s marketing strategy allows them to communicate with the audience they target by using effective marketing actions. Now Oreo uses a mid-premium pricing policy, they offer quality products and they price them at mid-range which has resulted in a loyal customer base. They do face strong competition internationally. They want to be able to satisfy customs in certain price-sensitive countries. By offering quality products at lower prices they are able to maintain and gain a larger market share. As their reputation and brand awareness in the new market continue to rise then they will increase their prices following the increased recognition and demand. Not only that but the offering they provide makes them very popular in new markets “With the variety of products offered and the wide choice of sizes, the prices are different and the brand has been able to achieve a better turnover”. Oreo’s entry into India was subject to slow growth in the market. Oreo decided to follow a pricing policy that was based on lower prices, but as mentioned, with the success price increased drastically.
An advantage of the med-premium pricing strategy is that they improve the brand reception and value. Premium pricing also improves brand value and the perception that consumers place. Their association in consumers’ minds lists them as a top-tier price based on their pricing strategy. Additionally, not only does a premium-priced product accrue its own high-quality reputation, but it also improves the reception of all the other product lines.
Oreo will continue to utilize this pricing strategy when entering into new markets. The past success associated with it has created a positive association for future expansion. This allows them to garner market audience recognition then once a larger enough market is accrued then they will increase prices subtly.
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