Oreo eats into market share of Britannia, Parle, ITC

With Cadbury's in the bag, Kraft's Indian operations have kicked off on a sweet note. Its first major brand, Oreo has eaten into the market share of rivals Britannia, Parle and ITC with ease. CNBC-TV18's Animesh Das finds out how the cookie crumbles.

Three words that have been instrumental in the making of India's second most popular brand in the chocolate cream biscuit category. In just six months, Kraft Food's Oreo has cornered more space in India's Rs 5,500 crore cream-biscuits segment, than Britannia's Treat-O managed in nine.
With market share curently at nearly 6%, it has also stolen fans away from rival brands like ITC's Sunfeast and Parle and Britannia's Bourbon. But Kraft says this is just the beginning.
V Chandramouli, Director - Snacking and Strategy, Cadbury India says, "I think the brand is still in a stage of generating trials. So to an extent this is still early stages of a brand. Most of the people who got onto the brand are really satisfied with the quality of the brand. What we see with Oreo is highly repeat rates."
Experts say Kraft India hit the sweet spot with a simple launch strategy -- introduce one product without variants, use the existing distribution network, and cash in on the strong brand recognition enjoyed by Cadbury's. Throw in introductory pricing, and Bob's your uncle.
Sunil Alagh, Founder and Chairman, SKA Advisors adds,