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

1. 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.
2. 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).
3. Can
   you modify the original formula to make something new and more
   competitive? Will a brand extension work here? Why or why not?

Reference

Lamb, C. W., Hair, J. F., & McDaniel, C. (2014). MKTG7. Mason, OH: Cengage.