A study of the market potential of cadbury oreo biscuits in Chennai city

Indian Biscuit Industry is the largest among all the food industries and has a turnover of around Rs.3000 crores and is known to be the second largest manufacturer of biscuits. The sale of premium biscuits is on a constant rise. This shows that cookies and sandwich biscuits will continue to perform well in future. Cadbury India Ltd. launched Oreo in India in March 2011 as the delicious combination of dark chocolate biscuit and vanilla cream which was launched at Rs 5 for a pack of three to drive impulse purchases and trials, Rs 10 for a pack of seven and Rs 20 for a pack of 14 for heavy usage. This paper focuses on the market potential of Oreo in Chennai at the retailer's level of distribution when compared to that of its competitors and improve its distribution reach. It also emphasizes on studying the distribution process used to service the retailers and wholesalers and identify and correct the gaps in the distribution process. Data was collected by the method of personal interview with the help of a questionnaire checking the availability of Cadbury products and that of its competitors in retail outlets in around fifteen areas of Chennai. Oreo's reach was found to be low when compared to that of its competitors and gaps were found in the process of distribution of Oreo. This study suggests ways by which Oreo distribution can be increased and bring it in-par to its competitors and thus increase the sales of Oreo by identifying potential areas and store types. The study also highlights the difference between the distribution of confectionery products and biscuits.