What is your favorite brand of sandwich cookie? If you're like most Americans, chances are it's Oreo. In fact, Oreos are so popular that many people think Oreo was the original sandwich cookie. But they're wrong. Sunshine first marketed its Hydrox sandwich cookie in 1908. Hydrox thrived until 1912, when Nabisco (now part of Kraft) launched Oreo. With Nabisco's superior distribution and advertising, Hydrox was soon outmatched. By 1998, Hydrox sales totaled $16 million, while Oreo's revenues were at $374 million. Hydrox has been purchased by Keebler (subsequently purchased by Kellogg), whose elves are trying to give the cookie a major facelift. You are part of the Keebler team deciding what to do with the Hydrox brand.
Activities
- Can you re-create Hydrox through a name change? What kind of brand name could go head-to-head with Oreo? (Most people unfamiliar with Hydrox think it is a cleaning product.) Make a list of three to five possibilities.
- How can you package your renewed sandwich cookie to make it more attractive on the shelf than Oreo? What about package size? Draft a brief packaging plan for the new Hydrox (or whatever name you chose).
- Can you modify the original formula to make something new and more competitive? Will a brand extension work here? Why or why not?
Purpose: To show students how important branding can be to product success. Students try to relaunch the Hydrox cookie brand (the original chocolate sandwich cookie) by investigating branding issues, including brand name and brand mark, determining the role of packaging, and assessing the feasibility of brand extensions.