Even the world’s most popular cookie, the Oreo, required a rebranding to transform from the failing knock off it was to the wildly successful brand it is today. Milk’s favorite cookie didn’t start as the successful cookie we know and love.
Business Insider recently released an article on the history of the Oreo. In the article, it is revealed that two brothers, Jacob and Joseph Loose, split from each other, building two competing companies, and developed nearly identical cookies. Jacob created the Hydrox, shortly after, Joseph, with Nabisco, released an almost identical cookie called the Oreo.
“The Oreo was priced cheaper and came off as a generic cookie, and the Hydrox remained the favorite. Nabisco essentially produced the Oreo at a loss.” Read the article here.
Hydrox dominated the market for many years. So what happened to catapult Oreo into the level of cookie stardom it enjoys today?
As luck would have it, in the 1950s, cleaning products hit the market en mass. As you can imagine, Hydrox sounded like a chemical cleaner, which provided Oreo the opportunity to make their move. Nabisco doubled down on their marketing and made two critical branding decisions:
First, the Oreo relaunched at a higher price point, removing the stigma of “generic” cookie and positioning it as the “premium” cookie.
Second, Nabisco licensed the Oreo for other products, such as Cookies & Cream ice cream.
The story of Oreo and Hydrox is an excellent story on many levels, but it also provides a few great lessons for business leaders.
For the underdogs in any industry, be ready to overtake your competitors when you find any opportunity.
Industry leaders need to remember that your competitors will look for any opportunity to dethrone your company and take your customer base. Don’t become complacent. Hydrox could have renamed their company, when it was becoming apparent their name was not as appealing anymore. However, they didn’t and Oreo was able to seize the opportunity.
Every company should be aware of consumer opinions. The name Hydrox became less appealing as it sounded like a cleaning product. Pay attention to how consumer opinions change because, in today’s world, they can change much quicker than they did 70 years ago.
How are you tracking consumer opinion in your industry?
Do you need help evaluating the consumer opinion in your industry, while finding opportunities to get ahead and stay ahead of your competitors? If you would like to AMP up the growth of your established B2B company, contact me today for a free one-hour consultation to determine how I can help you. There is no obligation and no pressure, just a frank discussion of your company’s needs and goals. Even if we don’t move forward, I will give you some solid ideas for growing your company.
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