Flipped Class International Marketing

Q1. What makes OREO a good global product? List, at least, three factors.

Unique flavor translates across border, fun eating experience with cookie and cream in the middle, 

Q2. How does OREO change its product and promotion strategy to meet customer needs in different country markets? List, at least, five changes.

In China, Oreo produces lightly sweetened version of Orea that contains 27% less sugar. Response to consumer’s desire to less sweet product has been done in China. In Venzuela milk chocolate biscuits are more appealing than the dark intense coco. Milk chocolate version in this country is sold. In US, 18 ounce packaging is purchased mostly by customers. Accustomed to shopping weekly in US, Shopping behavior defines package size. In other countries, small package is desired. Stores don’t have space enough in countries like China and Brazil. Packaging adjustment based on what consumers are familiar with are done such as in China Oreo is sold in tube-light package form. Already existing popular brand logo/mark/name is established to gain trust like using Craft brand on biscuit in China. In Canada, MR Christie Oreo cookie is sold. Selection of medium of communication varies in different country. In Venezuela, outdoor advertising is more effective, and in China people prefer watching ad TV. Overall, five changes can be: advertising method, advertising channels, packaging, tastes, and brand recognition with the help of local known brands.

Q3. What challenges does OREO faces in the global market? List, at least, three challenges. 

Campaigns in one country may lose relevance in another country. Social and cultural preferences vary among countries. In country like China brands advertise on TV, so major focus is on TV advertising. The other two challenges are different in preference towards advertisement channels. People have different habits to learn, consume, and do things. Language barrier is another channel, but the video has not emphasized on that (Brannen et al, 2017).

Pepsi Video

Channels of distribution

Q1. Predominantly, what type of Middlemen do Pepsi use in their distribution channel?

Vertical marketing system is used. Pepsi’s franchise bottlers make the concentrate with carbonated water, and distribute the product to the retailers. Pepsi’s bottlers act as full service merchant wholesalers in a contractual channels providing many distribution and selling services to their retail clients. Bottlers also implement Pepsico sales and merchandise plans for various soft drinks they distribute. 

Q2. Define the large, small and on premise format of channels that Pepsi uses for distribution of their products? Give suitable example to explain each type.

The first channel of distribution is large format. In the large format, the customers that are covered are large such as Krogers and Walmart. The second channel is the small format in which the customers are such Wallgreen, Dairy Mart, and others. This is where impulse purchases occur. The third channel is on premise format which covers schools and restaurants, and other young brands such Taco bell, pizza hut, and others.  The marketing channels for the Pepsi is characterized by intensive distribution.

Q3. Put together, in a diagrammatic form, a detailed representation of the channel of distribution for Pepsi that shows all the key intermediaries or the channel members. 

References

Brannen, M. Y., Piekkari, R., & Tietze, S. (2017). The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance. In Language in international business (pp. 139-162). Palgrave Macmillan, Cham.