OREO'S JOURNEY HOME
For many foreign brands like OREO, Chinese New Year is a challenging moment: city residents return to their rural hometown, marketing opportunities move there; and second, people enjoy traditional snacks.
Oreo wished to expand into rural areas, without relying on a traditional strategy based on costly distributors. Through Rural Taobao, we introduced OREO into more than 10,000 Taobao Pop-up Sales points in the countryside. The campaign also included Oreo access to Village fairs, a traveling Caravan with displays, and a Railway train with Oreo themes.
For 2015 Chinese New Year Oreo wanted to make some marketing transformations, completing 3 objectives:
- Get Oreo into Chinese Consumer consideration for CNY festive snack buying
- Seize the opportunity to Grow e-commerce sales by 20% during festive period
- Entry and distribution of Oreo into new markets of rural China
How can Oreo be a agent of change to rural city marketing?
Challenge 1: “Localization” of a Foreign Products
Foreign brands need to localize into Chinese culture to be received by rural Chinese consumers.
Challenge 2. Weak distribution network in rural cities
Distribution for rural areas are hard to penetrate and expensive to develop.
Spring Festival travel rush: 2.9 billion travelled back home for reunion and celebrate the Lunar New Year. The Oreo brand resonates to them but they have limited luggage space.
As many leave the cities and travel back home, purchasing power transfer back to rural shoppers. The brand and product distribution do not reach this consumer segment.
Taobao Village has Covered rural areas in 22 Provinces, creating 10,000+ O2O Experience Shops. Simultaneously connect with spring festival migration population and reach out to the festive shopping crowd.
Oreo New Year Marketing Campaign: Enter Rural Markets Via Taobao Villages
Using Taobao CNY Goods Festivals, in one week we could access to 22 provinces all over China with 10,000+ pop-up shops, and 10,000+ Oreo Taobao partners, to make online Tmall Flagship sales grow 150%.
Leverage Alibaba’s 3 major resources, bring Oreo to rural homes:
10000+ Pop-up Shops with Taobao villages
Big Caravan travelling the Village fairs
Unique form of Advertisin: a Train designed for CNY
This campaign was a game changer for us, a fundamental shift that shows the power of ecommerce in driving new sales and building brand preference, Alibaba are a powerful partner in our growth strategy for the next five years.Denis Dong eCommerce Marketing Lead, Mondelez International