Discussion Topic 1: Product Strategy
What is your favorite brand of sandwich cookie? If you are like most Americans, chances are it is Oreo. In fact, Oreos are so popular that many people think Oreo was the original sandwich cookie. But they are wrong. Sunshine first marketed its Hydrox sandwich cookie in 1908. Hydrox thrived until 1912, when Nabisco (now part of Kraft) launched Oreo. With Nabisco’s superior distribution and advertising, Hydrox was soon outmatched. By 1998, Hydrox sales totaled $16 million, while Oreo’s revenues were at $374 million. Hydrox has been purchased by Keebler (subsequently purchased by Kellogg), whose elves are trying to give the cookie a major facelift. You are part of the Keebler team deciding what to do with the Hydrox brand. Activities Can you re-create Hydrox through a name change? What kind of brand name could compete with Oreo? (Most people unfamiliar with Hydrox think it is a cleaning product.) Develop five (5) possibilities for a new name. Pick the best out of five and give your reasoning. How can you package your renewed sandwich cookie to make it more attractive on the shelf than Oreo? What about package size? Draft a brief packaging plan for the new Hydrox (or whatever name you chose). Can you modify the original formula to make something new and more competitive? Will a brand extension work here? Why or why not?
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