No company can stay on top for a century without being able to overcome adversity. In 2003, adversity showed up at Oreos front door in the form of angry moms!
Heightened awareness of childhood obesity combined with a national low-carb obsession created a perfect storm that threatened to crumble Oreo. Oreo had gone from America’s favorite cookie to America’s most unhealthy. The original Oreo recipe was almost 60% sugar and heart-clogging trans fat. Moms stopped buying them. 2003 witnessed Oreo’s first double-digit sales drop.
Oreo reacted by launching a string of healthier cookies such as Reduced Fat Oreos (30% less crème filling…not very innovative), Oreo Crisps (no crème filling…even less innovative), and Oreo Minis (like Oreos…only smaller). All were great attempts at fixing the wrong problem. The problem was never the cookie. America still loved the original cookie! The problem was; moms felt guilty about serving the cookie. Step one in the innovation process is- SOLVE THE RIGHT PROBLEM!!
In the late 90s and early part of the 21st century, milk sales were declining at a rate of 3-4% per year. In an attempt to stop the slide the Milk Processors Board launched the uber-successful “Got Milk?” campaign. Oreo spotted an opportunity to turn their situation upside down. Oreo partnered with “Got Milk?” in what they called our way of helping moms get their children to drink more milk. Oreo adopted the new tag-line, “Milk’s Favorite Cookie.” The only thing crazier than Oreo selling itself as an integral part of a healthy after school snack is….it actually worked! The co-branded Oreo/“Got Milk?” campaign helped to dramatically raise both milk and cookie sales in 2004. The Oreo/”Got Milk?” campaign was so successful, the Milk Board offered to pay Oreo $1 million for the rights to use the Oreo brand in billboards and print ads across the country.
Oreo declined the money, but graciously accepted the free advertising.
Next week will be the last in the Oreos series- Oreos Part 5: Broaden Your Horizons.
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“…our way of helping moms get their children to drink more milk.” We are so easily duped!
But you’re right: Identifying the ‘right problem’ is often harder than solving it.