Friday, December 7, 2007

America's Favorite Cookie boosts sales across US

Here's a great article on the power of branding and the recognition of the Oreo Cookie to be America's favorite!

Menuing ‘America’s Favorite Cookie’

Dairy Queen’s Nissen says the right brand name can provide a big boost by communicating to customers in one word what the flavor pr ofile of a new offering is. When Dairy Queen introduced a spicy burger it purposely chose to partner with Tabasco in an advertising campaign. The company could have simply used Tabasco or one of its competitors, but by drawing up a licensing agreement and ad campaign, “It instantly communicated the flavor profile on this burger was different. It’s hot and spicy,’’ Nissen says. Nabisco notes, for instance, that its research suggests Oreo is considered its own flavor alongside chocolate and vanilla.

At Baskin Robbins, a variation of an Oreo cookies-and-cream treat has been a top-five seller for years and product extensions featuring the Oreo are always a good bet, says Scott Colwell, vice president of marketing. “They have a lot of credibility with consumers,’’ he says. During the fall, the company rolled out six Oreo-themed products including: an Oreo cookie pie; a new Oreo cake; a new flavor, Jamoca; chocolate and Jamoca Oreo shakes; and an Oreo-layered sundae. The company won’t reveal sales figures but says the new offerings helped sales jump the first week they were introduced in August and are “exceeding expectations.”

Like pizza and Oreo, frozen dessert restaurants are in a competitive environment. The category’s sales increased by 2.2 percent from 2005 to 2006 while units dropped by 1.2 percent according to data gathered from Technomic. Dairy Queen sales were flat from 2005 to 2006 with a slight increase in same-store sales while Baskin Robbins experienced a 6.5 percent jump in sales with a small same-store sale bounce. Newer competitors like Cold Stone Creamery, which saw a double-digit jump in sales in 2006 and higher same-store sales, are chasing both venerable brands.

Cold Stone, of course, made its name with its smorgasbord of mix-ins. And like its competitors it has its own Oreo creation, Oreo overload.

(See the entire article at: http://http://www.qsrmagazine.com/articles/features/110/oreo-3.phtml)

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