How can an 11-year old explain the value of a brand?

Igor PauletičSales

After 6 straight days of golfing, I went for a relaxing walk around lake Bled with my family. Our children are always thirsty and have to go to the toilet right when we arrive to the Vila Prešeren café. So we always end up drinking the most expensive coffee in the region, whether we want to or not.

This visit was even more expensive than usual. There was a shiny, well-designed menu at our table, and since the place was packed and we had to wait at least 15 minutes for our waiter, our family had the time to see their offer. So instead of stopping for a simple cup of cocoa, the children ordered an Oreo Shake. It is still cocoa, but since it contains Oreos, they can sell it at double the price of regular cocoa.

How can marketing help a product live for 100 years?

I was impressed how a branded cookie (nothing special by the way) can help you sell a cup of milk with a spoonful of cocoa at double the price, so I started googling to find all about Oreos. I have heard about them a couple of years ago when their marketing department brilliantly used the Super Bowl blackout. Then I discovered something that surprised me greatly – in the 100 years since they’ve started making Oreos, more of them are currently being sold as an ingredient for making other desserts rather than for eating them as they are. There is no better way to diversify your product. When people get tired of your cookies, you just publish a recipe for a new Oreo cake. There are currently 468 recipes on the manufacturers website. Cheapest product development if you ask me. And you are not alone in this – your most loyal buyers will help you.

When a branded cookie can help you sell a cup of cocoa at double the price. Click To Tweet

If I can somehow understand that cafés help their sales with a brand like Oreo, I was surprised to find that Milka used Oreos in their chocolate. If your brand is included by Milka in their product, this means that it has surpassed theirs and adds value to their chocolate. Even Milka can hope to sell more chocolate thanks to Oreo.

When does marketing achieve its peak?

I discovered that the crucial Oreo phenomenon is the self-promotion of the Oreo brand by the consumers themselves. No culinary forum seems complete without at least one dessert recipe that contains Oreos. What more could you want than buyers bragging about your product? They even compete in who praises you more.

What more could you want than buyers bragging about your product? Click To Tweet

The only thing I don’t understand is why they don’t sell crushed Oreo cookies for baking. This way they could sell all their damaged cookies and manufacturing leftovers. They wouldn’t even have to lower the price considering the hype of their fans. Maybe they would only need to put some new “original” Oreo recipes in the box every month. It would be even better to replace their “original” recipes with recipes, sent by their customers. This would provide them with some “gamification” leverage as well. But they are probably already doing that. I suppose I just haven’t googled hard enough.

 

igor.pauletic@frodx.com

 

About the Author

Igor Pauletič

Founder and CEO of FrodX, who uses his rich experience to assist customers to transfer the latest technological, operational, and social trends into their business operations. He mostly focuses on new product development, omnichannel sales architectures, and go-to-market strategies. As a team member, he fills the role of the idea generator and constantly challenges the status quo and established decision making patterns.