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Marketing Demographics by Age

Marketing Demographics by Age

Companies seeking long-term business growth can find it by emphasizing the earning power of young workers, near-retirees, and women.

We all want to be treated equally and fairly during the buying and service process, regardless of our age. Let’s examine how you, as a service provider, can give exceptional service by understanding the needs and values of each age group.

Marketing to The Veterans

Marketing to The Veterans These people were born before 1943. Their beliefs and values include: Everyone should adhere and conform to the same rules, regulations, and policies. Those who are older or in positions of authority automatically deserve respect. Patience is an important virtue. The bigger the better. Personal pleasure is secondary to job responsibilities and tasks.

To win them over as a lifetime customers, make them feel special by remembering their name. Honor them by calling them Mr. or Mrs. or Sir and Ma’am. Thank them for their patronage with a personal note. Add a personal touch, and show genuine interest in them as a person.

Marketing to The Boomers

Marketing to The Boomers These people were born between 1943 and 1960. Their beliefs include: If it’s not working, either fix it or move on and find something better. They value personal growth, health, and wellness. They are optimistic. They believe they are the star and deserve center stage.

To keep them as lifetime customers, provide service that treats them as individuals, not just clients. Be personable. They value personal relationships that grow with time. Be solution oriented. If you can’t fix something, be honest; and then offer alternatives. Boomers value their time and want solutions now. Don’t tell Boomers what they can do.

Marketing to Generation X

Marketing to Generation X Baby Busters or 20-somethings were born between 1960 and 1980. They have a need to be self-reliant. They value family and friends. They tend to be informal and look for fun in every situation. They treat everyone as an equal regardless of “rank” but tend to be skeptical. They have respect for knowledge and technology.

If you want them to do business with your company, show interest in their family and friends, and admire their children if they are tagging along, or their pictures are prominently displayed on their desk. Treat them as equals. Approach situations in a relaxed and informal manner. Let them ask questions and seek information. Show that you have nothing to hide. Use technology to demonstrate your product and services.

Marketing to The Nexters

Marketing to The Nexters Generation Y or the Internet Generation were born between 1980 and 2000. They tend to be optimistic, street smart and very computer and technology literate. Achievement oriented, they are also strong believers in civic duty. They learn flexibility early since many come from divorced families.

If you want these customers to do business with your company, appeal to their strengths. These young people like to spend money, and they are more likely to purchase your product if your business donates to non-profit organizations. Also, appeal to their technical shrewdness. If it makes life more convenient, easier or is the latest in technology, they will probably want it.

Conclusion: For successful marketing by age-demographics, consider each age group and customize your service

Service providers can give exceptional service by understanding the needs and values of each age group. I give these guidelines to assist you in providing the best possible customer care, but nothing will ever surpass kind and equal treatment to each and every customer you serve.

Learn to present information in a different manner to appeal to core values, which are different for each generation.

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Posted in Business and Strategy Management and Leadership

New Challenges in Leadership

Leadership today is more challenging than ever. Leaders face globalization; increased competition for customers, markets, and talent; rapid change; speed and complexity; change in types of workers and related contracts; loss of purpose among workers; increased process management and decreased mobility-among other things.

Leaders today must create a pathway along a liminal landscape that is constantly shifting between chaos and order. In this state, people live outside their comfort zones; they experience a loss of meaning and direction. They are faced with doing things they have little experience with or have ne.ver done before. They realize that the future is not just unknown; it is unknowable.

A special type of leader is needed for this unknowable condition-one who can help provide direction, meaning, and contain anxiety for others, on one hand, and facilitate openness, ongoing learning, and reflection on the other. These leaders must not only embrace both order and chaos but also provide a way for people to reflect transformaupon what they are doing and enable needthem to make more useful sense of it. Leaders also need to be both effective mentors for others and effective learn-ers themselves.

Leaders can successfully navigate this territory by embracing both sides of the order I chaos paradox-transformation and emergence.

  • Transformational leaders-those who bring order to guiding changemust not only convey a compelling vision and be sensitive and responsive to the needs of their constituents but also behave as role models who walk the talk. These leaders typically are officially designated and have the formal position, authority, and backing. They drive change, establish the vision, and mobilize the troops.
  • Emergent leaders, on the other hand, may not be officially sanctioned and are more on the chaos side. They may, in fact, be part of what Ralph Stacy terms the shadow organization interactions among members of a legitimate system that fall outside that legitimate system. As people operate in the shadow system, leadership roles emerge. The roles then shift based on contributions people make and how they make that contribution known.

Another way leadership emerges is when an individual articulates and initiates potentially creative thought, discoveries, and behavior either on their own behalf or that of others. Often these leaders emerge from the ranks. Conversely, they may be officially sanctioned as leaders but have relationships and ways of working that go beyond what appears on charts, in position descriptions, or in job objectives.

They make the vision come alive by creating space for it to unfold through their own actions; they build commitment and confidence, create opportnities, and help others lead them selves. These leaders translate the guiding visions, values and beliefs into action by using them to shape their own behavior.

The attributes of both transformational and emergent leaders are needed. These attributes, more likely to be manifest in a team of individuals, are essential for navigating the liminal space between chaos and order. The manner in which they are combined and applied will depend on the leaders and their organizations.

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Posted in Management and Leadership

Charles Baudelaire: In Praise of Cosmetics

Charles Baudelaire introduced the idea that no woman is so beautiful that her beauty would not be enhanced by cosmetics.

Charles Baudelaire, French poet and essayist For much of the history of humanity, the wearing of cosmetics by women has been viewed, in the West at least, as something associated with harlots and stage performers (with those two professions once being considered almost equally disreputable). As an early nineteenth-century song once asserted, it is nature itself that “embellishes beauty,” so what need would a virtuous woman have for makeup?

The French poet and essayist Charles Baudelaire (1821- 67) was raised in this culture of “naturalized beauty” and never really questioned it in his early years. But then, in the 1860s, the man who coined the word “modernity” began to question what Romantic artists and writers referred to as the “supremacy of nature.” In his book, The Painter of Modern Life (1863), he turned his attention to the nature of beauty in the chapter titled “In Praise of Cosmetics.” Charles Baudelaire wrote in his “In Praise of Cosmetics” (1863,) “I am perfectly happy for those whose owlish gravity prevents them from seeking beauty in its most minute manifestations to laugh at these reflections of mine … .”

Baudelaire had always felt especially drawn to the opposite sex, and was conscious of how society’s notion of beauty was changing in an increasingly industrialized world. His essay on beauty was a little too whimsical to be taken absolutely seriously, but it was nonetheless a triumphant defense of the notion that makeup can make the beautiful even more beautiful. “External finery,” Baudelaire wrote, is “one of the signs of the primitive nobility of the human soul.” Every fash ion is “charming,” and every woman is bound by “a kind of duty” to appear magical, to astonish, and to charm her fellows. Accordingly, nature could now be imaginatively surpassed by applying black eyeliner, which “gives the eye a more decisive appearance,” and rouge, which “sets fire to the cheekbone.” Baudelaire’s emphasis on the beauty of artifice over nature marked a significant departure from the Romanticism of the first half of the century, reflecting the rise of decadence and Aestheticism, to many of whose practitioners he was a hero.

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Posted in Leaders and Innovators Music, Arts, and Culture

India Will Not and Must Not Become a Superpower

Indian historian and environmentalist Ramachandra Guha speaks of why India will not and must not become a superpower.

I broadly agree with Guha’s analysis about India’s last 60+ years since 1947, especially in the arena of inclusion/exclusion of communities in development process (e.g. tribals being mostly excluded), also the growing Maoism factor, and the polarization of religious communities who, unfortunately can have a foothold in mainstream politics with their religious agenda (e.g. Sangh Parivar via the BJP or the Muslim Parties such as the recently launched one by Akbaruddin Owaisi in Hyderabad).

But Guha is cautious not to completely belittle India’s progress in the last 7 decades and is in fact very hopeful of India’s future. This comes across in most of his writings.

India Flag As for Guha’s reasons why India should not become a superpower his talk mentions something to that effect. He is suspicious of superpowers because the 20th century’s experience with political/economic superpowers (Britain, USA, Russia mainly) is by and large not a good one when you see the record of colonial and post-colonial 20th century. Africa and all parts of Asia were left in tatters and the effects are still unfolding especially in the Middle East and South Asia (Indo-Pakistan conflict/ Hindu-Muslim communal rivalry).

However is it possible to define a superpower differently? Can India become a superpower of a different kind? There is no answer to this question since the model does not exist for the 21st century of such a superpower (EU is a close alternative but EU is historically unique and cannot be replicated). But the model being pursued by India since the last 20 years or a little more does not lend itself to an interpretation that India, even if it became a superpower, will be different from China or USA. And hence my opinion would be in agreement with Guha that India is better off not being a superpower but taking care of its internal issues as best as possible. This does not mean that we cannot unleash Indian potential. The day we unleash Indian potential by and for Indians will actually be the day India might actually claim “superpower” status. (There you go! a new understanding of what it means to be a superpower!)

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Posted in Global Business

Creating a Positive Global Community

Creating a Positive Global Community

To create a positive global community, we need to meet three key challenges:

  1. Reaching out to humanity and avoiding isolationism. In the global community, it is easier to reach out and easier to become isolated. Superficial communication with everyone can lead to meaningful impact on no one. We need to be inspired and educated in the value of trying to benefit the world, not just ourselves. As the opportunities for huge individual achievement and wealth form, we need to better recognize people who make the transition from success to significance. Community heroes need to be celebrated based upon their skills in giving—not their skills in taking.
  2. Celebrating diversity and avoiding conformity. Our ability to adapt to changing situations is largely a function of our diversity. Language leads us to view the world in different ways and to have different approaches to making decisions and solving problems. We need to encourage diversity in language, culture, and lifestyle to ensure our own survival. Powerful countries must not try to make other countries become like them. Residents of the global community need to celebrate the fact that “different” may be synonymous with “fascinating,” “enhancing,” and even “necessary.”

Building long-term value and avoiding short-term stimulation. Residents of the global community have almost unlimited access to sources of pleasurable, short-term stimulation. Television, movies, interactive games, virtual-reality experiences, chat rooms, and other options are available at a low cost. Yet few of these activities produce any long-term value. We need to inspire and educate people about the value of “investing” for the future. Long-term value is the result of vision, creativity, innovation, and hard work. We now have access to tools with the potential to dramatically increase our productivity, but we also have access to countless pleasurable distractions that lead nowhere.

Challenges and Opportunities for the Global Community

Challenges and Opportunities for the Global Community

The global community has the potential to become a nightmare:

  • A world of conformity: with billions of people wearing the same baseball caps, baggy shirts, jeans, and shoes, speaking the same language, and laughing at the same jokes.
  • A world of short-term stimulation: with countless hours spent on mindless social media, television, video games, and a virtual reality that begins to eliminate the real human experience.
  • A world of isolation: with lives spent in front of a screen, striving for personal excitement and gain with little thought for others and even less effort devoted to helping future generations.

The global community has the potential to be a dream come true:

  • A world of diversity: with billions of people being able to communicate, trade, share cultural experiences, and appreciate each other, with access to a range of products, services, religions, cultures, philosophies, and languages.
  • A world building long-term value: with countless people working together to advance our cultures, building on what has been learned in a manner that is positive, efficient, and productive.
  • A world reaching out to humanity: with people helping each other in ways that could never have been imagined, celebrating each other’s success, and helping less fortunate members of the community become more productive.

Will the global community of the future become a nightmare or a dream come true? No doubt it will be some of both. The increase in global communication, trade, technology, and culture will continue. By inspiring people and educating them in the values of celebrating diversity, building long-term value, and reaching out to humanity, we can build a global community that is more like a dream come true.

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Posted in Business and Strategy Global Business

The Future of Technology: What is your role to play?

The Future of Technology

For most of the past 20 years, many of us have read about the future for digital revolutionaries and listened to visionary presentations.

Frankly, many of us would be skeptical about what we were hearing. And it wasn’t for a lack of desire. All of us want to believe that the digital revolution is real, and we want to be inspired by its incredible promise. But, digital technology has failed in many cases to live up to the hype.

But, this year the revolution became real. Today, we are entering an era where every process—and all content—is becoming digital, mobile, and virtual.

Every time we walk into a Starbucks, hear a song on the sound system, pull out a laptop, and download it wirelessly—the digital revolution is more real. Every time we go to a wedding reception with a digital camera and a printer and shoot, edit, and print the images; and present the bride and groom with a photo album before we leave—the digital revolution is more real.

Today, photography is a digital, mobile, virtual process. You create digital content—a digital camera is a computer with a lens—and then you take that content and network it. You send it wirelessly, edit it, share it, and when you are ready, you print it. Every process is following this pattern: every physical, analog process will become digital, mobile, and virtual.

So in this revolution, what is your role? Our role is to drive that digital change, democratize technology, and empower digital revolutionaries. Enabling the digital revolution takes more than gizmos and gadgets. What matters now is making it all work together in a way that creates simple and enjoyable digital entertainment experiences at an affordable price. Too many products still don’t connect to one another; they don’t work easily together. Too few of us have access to broadband at home. Too many products still cost too much. Too much digital content is still being taken illegally, undermining business models and artistic integrity. Issues of cost, complexity, connectivity, and manageability still get in the way of simple, enjoyable experiences.

We’ve focused on devices that we hold in our hands or hang on our walls—not on the ecosystem. Trying to solve all challenges by focusing just on plasma screens or music players is like trying to tell the story of television by focusing on the TV set.

The real revolution is different, cutting far deeper and broader than simply the devices that fly out of stores. The true revolution is in the way that entertainment is created, distributed, managed, and consumed. It is around the experience, and making the whole system come together—a system that requires an entire network of players and partners, from service providers, to media companies, to content creators, to online services and more—and all those players working together to deliver the best experience. The entire entertainment process—whether it is music, movies, TV, or images—is becoming digital, mobile, and virtual.

The Digital Future

To tie everything together today in one system means many devices, miles of cable, half a dozen remotes, hundreds of pages to read in manuals, and even then, good luck getting it all to work right.

From the beginning, the ultimate promise of the digital revolution was always about putting more power in the hands of people—to allow all of us to do more, be more, and enjoy more in our daily lives. The digital revolution is not about cyberspace-cold, alien, and distant-it is about technology that is intimate, intuitive, and accessible where we want it to work, when we want it to work, and how we want it to work.

We are entering an era in which every consumer becomes the photographers, film producers, and deejays. We are all digital revolutionaries now.

But the future will not be made simply by the companies that put the coolest devices in people’s hands, or create the prettiest devices to hang on walls. The future will be made by companies that understand how to move content from creation, to distribution, to consumption; and understand what is required to hide complexity and deliver a great end-to-end consumer experience, and companies who have the partners to create and support the experiences you want.

We are on the verge of a digital entertainment future where every one of us has access to every song ever written, every movie ever filmed, every photograph ever shot—available any time and anywhere we want it, on any device that’s most convenient.

Revolutions have always been about giving power to the people—about people taking control and about the power of democracy. And the digital revolution is about the democratization of technology, and the experiences it makes possible—digital experiences that change lives and change the world.

We don’t know for sure where the next five years will take us. But we do know that revolutions are not made by doubters, cynics, and skeptics. Revolutions are made by people who believe that everything is possible.

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Posted in Business and Strategy Management and Leadership

The Way Ahead: How to Get Ready for What’s Next?

How to Get Ready for What is Next

We can already see the future taking shape. But I believe that the future will turn in unexpected ways. The greatest changes are still ahead of us. The society of 2030 will be very different from today’s society and bear little resemblance to that predicted by today’s futurists.

The next society is close enough for action to be considered in five areas:

  1. The future corporation. Enterprises—including many non-businesses, such as universities—should start experimenting with new corporate forms and conducting a few pilot studies, especially in working with alliances, partners, and joint ventures, and in defining new structures and new tasks for top management. New models are also needed for geographical and product diversification for multinational companies, and for balancing concentration and diversification.
  2. People policies. The way people are managed assumes that the workforce is still largely made up of people who are employed by the enterprise and work full-time for it until they are fired, quit, retire, or die. Yet, two-fifths of the people who work in many organizations are not employees and do not work full-time. Today’s HR managers also still assume that the most desirable and least costly employees are young ones. Older managers and professionals are often pushed into early retirement to make room for younger people who are believed to cost less or to have more up-to-date skills. The results are not encouraging. After two years, wage costs per employee for the younger recruits tend to be back where they were before the “oldies” were pushed out. The number of salaried employees seems to be going up at least as fast as production or sales, meaning that the new young hires are no more productive than the old ones. Demography will make the present policy increasingly self-defeating and expensive. The first need is for a “people policy” that covers all those who work for an enterprise, whether they are employed by it or not. After all, the performance of every one of them matters. So far, no one seems to have devised a satisfactory solution to this problem. Second, enterprises must attract, hold, and make productive people who reach official retirement age, become independent outside contractors, or are not available as full-time permanent employees. For example, highly skilled and educated older people, instead of being retired, might be offered a choice of continuing relationships that convert them into long-term “inside outsiders,” preserving their skill and knowledge for the enterprise, yet giving them the flexibility and freedom they expect and can afford. The model for this comes from academia: the professor emeritus. He remains free to teach as much as he wants, but gets paid only for what he does. Many emeriti do retire altogether, but about half continue to teach part-time, and many continue to do full-time research. A similar arrangement might well suit senior professionals in a business. But for people in operating work-sales or manufacturing-something different needs to be developed.
  3. Outside information. Surprisingly, the information revolution has caused managements to be less well informed. They have more data, to be sure, but most of the information so readily made available by IT is about internal matters. The most important changes affecting an institution today are likely to be outside ones, about which present information systems offer few clues. One reason is that information about the outside world is not usually available in computer-useable form. It is not codified, nor quantified. This is why IT people, and their executive customers, tend to scorn information about the outside world as “anecdotal.” Moreover, many managers assume, wrongly, that the society they have known all their lives will remain the same. Outside information is now available on the Internet. Managers must ask what outside information they need, as a first step toward devising a proper information system for collecting relevant information about the outside world.
  4. Change agents. To survive and succeed, organizations will have to become change agents. The most effective way to manage change successfully is to create it. Grafting innovation onto traditional enterprises does not work. Becoming a change agent requires the organized abandonment of things shown to be unsuccessful, and the continuous improvement of every product, service, and process. It requires the exploitation of success, especially unexpected and unplanned-for success, and it requires systematic innovation. It also requires seeing change as an opportunity, not as a threat.
  5. Big ideas. Once again we see the emergence of new institutions and theories. The new economic regions—the European Union, NAFTA, and the proposed Free-Trade Area of the Americas—are neither traditionally free-trade nor traditionally protectionist. They attempt a new balance between the two, and between the economic sovereignty of the national state and supranational economic decision-making.

And then there is the upsurge in interest in Joseph Schumpeter’s postulates of “dynamic disequilibrium” as the economy’s only stable state; of the innovator’s “creative destruction” as the economy’s driving force; and of new technology as the main, if not the only, economic change agent-the antithesis of earlier economic theories.

The central feature of the next society will be new institutions, theories, ideologies, and problems.

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Posted in Global Business Management and Leadership

World Economic Forum 2015: 10 Global Challenges and Expert Views

World Economic Forum: Annual Meeting 2015

From climate change to gender parity, the World Economic Forum 2015 held in Davos, Switzerland, identified ten significant global challenges that require collaboration across different sectors to solve.

These ten can be summed up as: ignorance, greed, religions, regionalism, rituals, poverty, education, health, leadership, and gender.

Here are expert opinions on the ten global challenges.

  1. Agriculture and food security: How to help smallholder farmers feed the world. “To sustain a population of 9 billion people by 2050, we’ll need to produce 60% more food. We can only do this if small farms flourish,” writes Gerda Verburg, Chair of the Committee on World Food Security.
  2. Economic growth and social inclusion: Why 2015 is a make-or-break year for the economy. “The global recovery remains weak and uneven. Accepting stagnation is not an option,” writes Christine Lagarde, Managing Director of the International Monetary Fund.
  3. Employment, skills and human capital: Three forces shaping the university of the future. “Technology is changing the nature of higher education—but not its underlying value,” writes Drew Faust, President of Harvard.
  4. Environment and resource security: “From all corners I heard increased commitment to action on climate change.” The UN’s Christiana Figueres draws four conclusions from Davos.
  5. Future of the global financial system: Why we need institutions to solve the world’s problems. “Monetary policy alone cannot provide stability and avert crises,” writes Professor Klaus Schwab, Executive Chairman of the World Economic Forum.
  6. Future of the internet: There are two types of companies. Those who have been hacked, and those who don’t yet know they have been hacked. “The internet of everything has changed security forever,” writes John Chambers, CEO of Cisco.
  7. Gender parity: Empowering girls in the worst countries for gender equality. “Invest in a woman and she will invest in her community,” writes Lebogang Keolebogile Maruapula, a Global Shaper.
  8. Global crime and anti-corruption: Want to end poverty? Start with corruption. “Graft has thwarted four out of the eight Millennium Development Goals. We cannot allow it to blight our future,” writes Cobus de Swardt, Managing Director of Transparency International.
  9. Infrastructure, long-term investing and development: Are we too slow to innovate in infrastructure? “Our industry finds change too difficult. We should be experimenting with 3D-printed homes and super materials,” writes James Stewart, KPMG’s Chairman of Global Infrastructure.
  10. International trade and investment: How will China’s next steps affect Brazil? “The Asian giant’s economic rebalancing will play out in the market for steel and soybeans,” the economist Ilan Goldfajn.
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Posted in Global Business

China’s Relexed One-Child Policy: Baby Boom in China?

China's Relexed One-Child Policy: Baby Boom in China?

China’s implemented a much-criticized state-mandated family planning policy in 1979 to control the swelling population of a then-poor nation. The stipulated that every couple may have just one child. Ethnic minorities were allowed to have two children. Couples in rural areas were allowed have a second child if their first child was a girl.

Over three decades, the one-child policy worked too well and has produced a gender imbalance and a shrinking work force. Sex ratio in China is now 117 males for every 100 females. The policy has also resulted in an elderly population that rivals Japan’s in percentages and costs for caring for the elderly.

Under the latest change to the policy, urban couples will also be allowed to have two children, if at least one spouse is an only child. This change is estimated to produce ten million additional babies over the next five years.

'China, Inc.: How the Rise of the Next Superpower Challenges America and the World' by Ted Fishman (ISBN 0743257359) The trend of more babies, however, doesn’t look enduring. Most forecasts only account for an increase in births over the next five years. After that, as China gets richer, birth rates are likely to continue dwindling.

Wealthier countries simply have fewer kids. This trend has been corroborated with similar demographic developments in Hong Kong, Singapore, Thailand, and Malaysia. Consider South Korea, where fertility rates continued its four-decade downward trend after the government abolished the family planning program in 1996.

The United Nations estimates China’s population aged 64 and under will fall dramatically over the next 20 years because of lower birth rates.

Some estimate that there’s even an actual upside if China’s birth rate continues falling. Ted Fishman, author of ‘China, Inc.: How the Rise of the Next Superpower Challenges America and the World’, estimates that China will, nonetheless, remains competitive: “you get more and more resources pushed into children and education, and productivity will go up enormously as a result”

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Posted in Global Business

China’s Roller-Coaster Love Ride with the Oreo: Challenges for Marketers

Challenges for Marketers in China: Kraft Mondelez Oreo Cookies

While there are tremendous growth opportunities for global brands in the Chinese consumer marketplace, to be successful in China, global brands must align with local Chinese culture and tastes. It is essential that multinational corporations understand the promise, the potential, and the complexity of China’s markets

In 2013, the market size of the biscuit and cookies market segment in China was estimated to be about 50.4 billion Yuan, or USD 8.3 billion. With 16% market share, Mondelez International lead this market segment with Oreo established as the country’s most popular cookie brand.

Kraft Foods, then the parent of Mondelez, launched Oreo in China in 1996. In 2012, Kraft Foods split into two distinct publicly traded companies: snack-food giant Mondelez International and the North American grocery business Kraft Foods Group. For most of its 100-year existence, Oreo has been America’s best-loved cookie, and today it is a global brand.

'China's Super Consumers: What 1 Billion Customers Want and How to Sell it to Them' by Savio Chan, Michael Zakkour (ISBN 1118834747) In 2006, however, the Oreo cookies business was a tiny $30 million business that was losing money. This was largely because executives in Kraft’s headquarters, near Chicago, expected to just drop the American sandwich cookie into the Chinese market and watch it fly off shelves. The US-parent had assumed that what made Oreo cookies successful in its home market would be a winning formula in other markets as well. Kraft Foods CEO Irene Rosenfeld admitted, “It was too sweet, too big and cost too much.” The tradition of twisting open Oreo cookies, licking the cream inside and then dunking it in milk before enjoying Oreo cookies was considered a “strangely American habit.” Kraft’s local Chinese leaders developed a regional concept—a wafer format in subtler flavors such as green-tea ice cream.

By Q1 2013, China is the second-largest Oreo market, a $600 million business growing 30% a year. Fortunes declined by Q4 in part because China’s appetite for the creme-filled sandwich cookie fell. Distributors had excess biscuit inventory and a general realization that cookies are not as healthier. Chinese consumers bore easily, so food makers need to innovate and introduce new brand to keep the market constantly hooked. Traditional techniques, such as changing the packaging often is not enough.

Recommended Reading: ‘China’s Super Consumers: What 1 Billion Customers Want and How to Sell it to Them’ by Savio Chan, Michael Zakkour narrates the underlying change in the nature of Chinese consumers and the way that they think about buying products and services.

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Posted in Business and Strategy Global Business