Oreo marketers documented a total of 2.3 million followers on Instagram, 850,000 on Twitter, and 41 million on Facebook, accompanied by 189 million YouTube views in 2017. This is the result of a massive digital campaign launched in 2012.
History
In 1912, the US National Biscuit Company (Nabisco) introduced the Oreo brand of biscuits, featuring a chocolate biscuit with butter cream filling. Since then, the product has undergone minimal changes and has consistently ranked as the top-selling cookie in the US, as claimed by the brand.
By 2016, Oreo generated over $2 billion in revenue, according to Mondelēz, the company behind Oreo’s manufacturing.
Initially, the United States served as Oreo’s primary market during its ownership by Kraft, reflected in the advertising slogan of the era, “America’s Best Loved Cookie.” However, by the 1990s, the company shifted its focus to the international market and started production in China.
In 2012, Kraft underwent a split, resulting in the formation of Mondelēz International, specializing in snacks, and Kraft Foods, which maintained its emphasis on groceries. In 2009, Mary Beth West assumed the role of Chief Marketing Officer at Kraft, observing a tendency within advertising campaigns to overly prioritize the brand, potentially neglecting the buyer.
“It’s like a consumer wakes up in the morning, thinks about cream cheese, and says, ‘Maybe I should wear something silver to match the cheese package,'” Mary Beth West expressed to Fast Company.
For quite some time, Oreo cookies have remained confined to the kitchen. The brand’s target audience has traditionally been families with children. Consequently, in commercials and on posters, the beloved cookies were typically portrayed against the backdrop of a kitchen table, with a child seated alongside holding a glass of milk.
Oreo Market Segmentation
Various companies employ different strategies to succeed in reaching their target market. Market segmentation aids in dividing the market into distinct groups of consumers who are likely to be interested in the company’s products.
In the case of Oreo, geographic segmentation played a crucial role. For instance, in Malaysia, all Oreo products have gained immense popularity due to the widespread coffee culture in the country.
Coffee is commonly accompanied by cookies, leading to increased demand for Oreo products. Psychographic segmentation also contributed significantly, considering factors such as lifestyle, consumer opinions, expectations, and interests. Based on these parameters, consumers form impressions of the product and decide whether or not to prefer it.
To capture the interest of the appropriate consumer categories, Oreo implemented various strategies. The company actively engaged in advertising, marketing programs, and even participated in charitable initiatives. A notable example is the opportunity provided to students to sell Oreo biscuits and sandwich cookies, thereby gaining an understanding of philanthropy’s essence.
Demographics allow for the breakdown of the target market by age, gender, occupation, and other relevant indicators. Oreo primarily targets children and adolescents aged 6 to 18 years. With its affordable price and appealing appearance, Oreo also appeals to young adults.
Although Oreo has already captured the hearts of children in schools, families, and even university students, the brand is now focusing on another market segment – adults. While children may choose ice cream, adults opt for tea accompanied by Oreo Cookie Snow Cream Pie.
This strategy caters to all family members and fosters an atmosphere of comfort and tranquility.
Target Market of Oreo
Oreo is a cookie product shaped like a sandwich, with a sweet crème filling between two biscuit pieces.
Since the 1970s, Oreo has been prominently marketed as a chocolate sandwich cookie and remains a leading baked and sandwich product globally.
The idea for the product originated from the association with gold, as it was initially packaged in small golden sachets, creating a perception of value. However, Oreo’s packaging has evolved over the years to adapt to changing marketing needs.
The target market for Oreo cookies primarily includes children and women. The product’s appealing nature aims to cater to the preferences of both moms and children, while the company also seeks to expand its market to include men.
With Oreo’s extensive distribution network worldwide, it is expected to generate impressive profits, gross margins, and sales.
Furthermore, the population of children and women is projected to continue growing, surpassing that of men. This broad target market is likely to further boost the product’s sales volume.
Demographics Segmentation
Demographics allow for the segmentation of your target market based on age, gender, occupation, and other relevant indicators. Oreo primarily targets children and teenagers aged 6 to 18. With its appealing value and affordable price, Oreo also attracts young adults.
While Oreo has already captured the hearts of children in childcare, families, and even university students, the brand is now focusing on another market segment—adults. While children may choose ice cream for themselves, adults opt for Oreo Cookie Tea or Snow Cream Pie. This strategy caters to all family members and creates a comfortable and peaceful atmosphere.
Geographic Segmentation
Geographical segmentation played a crucial role in Oreo’s case, particularly evident in the popularity of all Oreo products in Malaysia. This can be attributed to the widespread coffee culture in the country, where coffee is commonly enjoyed with cookies.
Behavioral Segmentation
Behavioral factors also influence Oreo’s market strategy. These factors include health awareness, attraction to the packaging, and specific eating habits, such as enjoying a biscuit with a hot drink. Understanding these behavioral aspects helps Oreo tailor its products to meet consumer preferences and habits.
Psychographic Segmentation
Psychographic segmentation was also significant in this regard. Oreo took into consideration the consumer’s lifestyle, opinions, expectations, and interests. These factors influenced the consumer’s perception of the product and their preference for it.
Oreo implemented various measures to attract the right consumer category, including active participation in advertising, marketing, and charitable activities. An excellent example is the opportunity for students to sell Oreo biscuits and sandwich cookies, emphasizing the essence of philanthropy.
Consumer Marketer
As a Consumer Marketer, the objective is to establish a clear, distinctive, and desirable position for the product in the minds of target consumers, differentiating it from competing products. Oreo aims to develop a unique market position for its products, ensuring they are perceived with a high-status image in advertising. Customers are willing to pay for Oreo’s high-quality products and diverse range of flavors.
To maximize brand awareness, Oreo has implemented a well-integrated marketing program utilizing the marketing mix to cater to the needs and desires of its target market, striving to become the most renowned and respected brand globally. Strategies for product, price, place, and promotion are part of a coordinated action plan, each component influencing product positioning.
Oreo offers various products such as Original Oreo cookies, Golden Oreos, and Mini Oreos, available through supermarkets, mail-order catalogs, and the website. Oreo also provides nutritional information and products tailored to fit a healthy lifestyle, catering to consumer preferences for low-carb, low-calorie, reduced-fat, and calcium-rich options.
Price reflects the amount customers must pay for the product, inclusive of payment terms, loans, allowances, and discounts. Oreo’s prices range from RM 1.60 to RM 14.99, generally lower than competitors. For instance, Oreo cookies are around 20% cheaper than Famous Amos cookies and 10% cheaper than Royal Dansk Danish butter cookies. However, Oreo is priced slightly higher than fast-service restaurants like Big Apple Donut, but still 17% cheaper on average than Starbucks.
Oreo’s Mission
Oreo’s mission is to become the market leader in selling sandwich cookies.
SMART Objectives
- Increase market share by 15% within the next fiscal year.
- Expand distribution channels to reach 95% coverage in target markets within two years.
- Achieve a 10% increase in brand awareness through targeted marketing campaigns within six months.
- Enhance customer satisfaction by improving product quality ratings to an average of 4.5 out of 5 within one year.
Value Proposition
Oreo offers a variety of products tailored to meet the needs of its target users.
Firstly, it provides nutrition through the chocolate filling sandwiched between two wafers. Secondly, Oreo serves as a quick source of energy for consumers.
Compared to other brands in the market, Oreo is generally more affordable, making it pocket-friendly for its target market.
4-P strategy of Oreo
Oreo’s marketing program was structured around the traditional marketing mix, commonly known as the 4-P strategy:
- Product
- Price
- Place
- Promotion
Each of these elements holds significance in influencing the customer’s behavior.
To maximize their brand awareness and establish themselves as the most renowned and respected brand globally and in their target market, Oreo implemented a well-integrated marketing program.
This program utilized a marketing mix to meet the needs and desires of its target market. Product, price, place, and promotion were strategies that were integrated into a coordinated plan of action.
Each component played a crucial role in influencing buyers’ perceptions and positioning of the products.
Product
A product refers to something a customer chooses to fulfill their needs. Consumers are drawn to the common characteristics of a product, including packaging, design, brand awareness, and high quality.
A product is defined as something that can fulfill a customer’s need or desire. It encompasses features, branding, product design, packaging, and quality. Oreo offers various products such as the original Oreo chocolate sandwich cookies, Golden Oreos, and Mini Oreos. T
Oreo offers a variety of products such as chocolate sandwich cookies, Golden Oreos, and Little Oreos, which can be found on supermarket shelves, retail stores, and the website.
Oreo continually introduces interesting new products with innovative flavors.
Oreo’s product idea revolves around several key concepts. Firstly, it offers a combination of chocolate and wafer biscuit, which appeals to both moms and children due to its delicious taste and attractive appearance.
Secondly, Oreo’s traditional design has maintained its appeal to children and moms for over a century. Additionally, variety is a central aspect of Oreo’s business idea.
The product is available in various shapes, including double big stuf Oreo, stuf Oreo, football Oreo, and mini-Oreo. It also comes in a range of flavors such as Green tea, Blueberry Ice Cream, lemon ice and Oreo DQ Blizzard Crème Oreo.
Furthermore, Oreo provides resources and information on cookies that cater to a healthy lifestyle. For instance, Oreo offers recipes categorized into five groups: counting carbs, fewer than 150 calories, reduced fat, options specifically for kids, and those that are a good source of calcium. This demonstrates Oreo’s commitment to meeting the diverse needs and preferences of its customers while promoting a healthy lifestyle.
Price
Price denotes the cost of a product. Oreo maintains a highly affordable price, often lower than its competitors.
For instance, Famous Amos cookies are priced 20% higher, and Royal Dansk Danish cookies are 10% more expensive.
However, compared to Starbucks, Oreo is approximately 17% more expensive.
Place
Place also plays a crucial role in consumer choice.
In Malaysia, for example, there are no Oreo retail stores, which may be more convenient for those in a hurry.
However, supermarkets are favored by those who prefer a relaxed shopping environment.
Price refers to the amount customers must pay for a product, encompassing payment terms, credit terms, allowances, and discounts. Profits accrue to those who set the appropriate price. Oreo’s prices range from RM1.60 to RM14.99, surprisingly lower than its competitors, albeit marginally.
For instance, Oreo’s regular pack is more than 20% cheaper than Famous Amos cookies, and Oreo butter cookies are 10% less expensive than specialty competitors like Royal Dansk Danish butter cookies. However, compared to quick-service restaurants, Starbucks is pricier. When comparing Starbucks with Big Apple Donut and Coffee, the latter is on average 17% cheaper.
Promotion
Promotion is arguably the most vital component of a marketing strategy.
Public relations, presentations, and advertising all play significant roles in expanding the consumer audience.
Promotion encompasses various marketing strategies such as advertising, sales promotions, public relations, trade shows, direct mail, and packaging. Successful promotions aim to alter beliefs, increase awareness, knowledge, and purchases among potential buyers. Running promotions at major food retailers across many countries allows Oreo to gather feedback from consumers.
One of the promotions utilized by Oreo is coupons. Coupons are distributed at sampling stations within food retailers and on the company’s website. Additionally, seasonal promotions are incorporated into the company’s media schedule.
For example, from January to February, a contest offering a one-year membership to Bally Total Fitness will be held to align with customers’ New Year resolutions. During the months of April to May, ten elliptical cross trainers will be given away in a sweepstakes drawing to kick off the swimwear season.
In December 2009, Oreo hosted a contest for the most creative Oreo Christmas cookie house design. The winner received five thousand dollars to help settle their credit card bills from Christmas shopping. These promotions aim to engage consumers and drive sales during specific times of the year.
In July 2016, Oreo hosted one-day exhibitions in New York and Los Angeles, creating an immersive atmosphere where visitors felt like children amidst oversized objects in the room.
Digital Marketing of Oreo
By the late 1990s, Oreo had garnered admiration in 30 countries, solidifying its position as the best-selling cookie of the 21st century. Recognizing the brand’s potential, the company’s marketers adapted to the digital age, shifting their focus to digital marketing strategies.
In 2009, Dan Anderson, the brand’s chief marketer, altered the marketing trajectory, emphasizing the importance of integrating with pop culture and seamlessly engaging with social networks.
The Martin Agency conceptualized the Wonderfilled campaign, transforming cookies into captivating characters rather than mere products. Within the first month of the campaign, Oreo witnessed an expansion in market share and a 12% increase in consumer growth.
To celebrate its 100th anniversary, the cookie brand started a campaign on social media. Every day for 3.5 months, they shared pictures of cookies linked to important daily events.
For instance, on the day of the rover’s landing on Mars, Oreo featured a red-filled cookie imprinted with a wheel track. This initiative heightened user engagement by 110%, with Facebook posts amassing 5 million likes. Furthermore, the food company paid tribute to Elvis Presley, acknowledged the Mars rover landing.
Interaction with consumers
According to research conducted by marketing agency Mediakix, users spend an average of about two hours per day on social media platforms. Recognizing this trend, the Oreo brand actively immersed itself in the realm of social networks, engaging in constant interaction with consumers who shared their ideas and opinions about the product.
The success of the Daily Twist Campaign underscored the fact that cookies are not solely beloved by children and can be effectively advertised beyond the confines of the kitchen.
The brand’s longevity became an asset, as many Americans have fond memories of Oreo’s taste from childhood. In the 1980s, the cookies boasted the slogan “For the Kid in All of Us,” a concept that marketers frequently revisited.
Marketers encouraged consumers to indulge in a glass of milk and a pack of Oreos to evoke memories of childhood and relax. This led to the popularization of the term “Oreo moment” in the English language, signifying a pause or a moment of relaxation away from stress.
gaming-centric advertising campaign
In 1923, the Oreo team introduced the formula: “Twist, lick, dunk.” This concise slogan, encouraging consumers to engage with the cookies, quickly became synonymous with the brand. By 2015, cookies had truly evolved into a form of entertainment.
This transformation provided another avenue to evoke the inner child in adult buyers. According to data from the marketing organization Effie, the gaming campaign resulted in a 24.6% increase in sales.
In August 2017, Oreo launched another gaming-centric advertising campaign. A vibrant branded van embarked on a six-week tour across several UK cities, unveiling four new cookie flavors.
Buyers were invited to complete a brief electronic questionnaire consisting of five questions about their personality. Subsequently, a recommendation for the most suitable flavor for the customer appeared on a tablet screen. The results could then be shared on social media platforms.
Marketing Strategies of Oreo
Oreo, as one of the most iconic brands globally, owes much of its success to its innovative marketing strategies. Over the years, Oreo has implemented various approaches to effectively connect with consumers and foster brand loyalty.
1. Global Adaptation
Global adaptation is a significant marketing strategy employed by Oreo as a multinational company operating in various regions worldwide. To effectively reach diverse audiences while maintaining its brand identity, Oreo implements the following approaches:
Regional Flavors: Oreo offers region-specific flavors to cater to diverse taste preferences across different geographies. For instance, Oreo has introduced unique flavors such as wasabi and hot chicken wing cookies in China, lime and chocolate mint variants in Mexico, and a yuzu citrus flavor in South Korea. By tailoring its product lineup to suit regional palates, Oreo enhances its appeal to distinct markets while staying true to its core values.
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Relevance to Culture: Oreo’s advertising campaigns frequently incorporate elements that are relevant to local customs and festivities. For significant events such as Chinese New Year or Diwali (the Indian festival of lights), Oreo introduces special edition packaging and promotional materials tailored to resonate with those specific communities. By acknowledging and embracing cultural diversity in this way, Oreo demonstrates respect for its international customers and strengthens its brand image.
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Language Barriers: When expanding into non-English speaking countries, Oreo ensures that its packaging and marketing materials are accurately and sensitively translated. The brand recognizes that language barriers can impede accessibility and inclusivity, so it prioritizes clear communication across linguistic borders.
Collaboration: Oreo partners with popular artists and influencers from diverse regions to highlight the versatility and universal appeal of its cookies. By collaborating with individuals who resonate with local audiences, Oreo can reach new demographics and establish credibility within those communities.
2. Brand Consistency
Brand consistency is integral to Oreo’s overarching marketing strategy. Maintaining a consistent image and message associated with the Oreo brand is crucial for establishing trust and recognition among consumers. Here are some ways Oreo achieves brand consistency:
Unique Design: Since its inception in 1912, the Oreo cookie has prominently featured a recognizable black and white checkered pattern on its packaging. This enduring design element remains unchanged, serving as a visual hallmark of the brand identity. It communicates stability, reliability, and familiarity to consumers, reinforcing the brand’s presence on store shelves and in the minds of consumers.
Product Development: Oreo consistently introduces limited edition flavors and variations of its classic cookie, while ensuring that each new launch remains aligned with the brand’s core essence. Despite the introduction of new offerings, they still feature the iconic black and white checkered design and messaging, maintaining consistency in how the brand presents itself to consumers.
Color: Oreo predominantly employs two colors – black and white – across all elements of its branding. This color palette reinforces the brand’s essence of simplicity and timelessness.
Tagline: Oreo’s tagline, “Open Up With Oreo,” emphasizes the values of sharing and connection, perfectly aligning with the brand’s image as a wholesome treat enjoyed by families and friends. The tagline consistently accompanies the logo in various communication channels.
Advertising Style: Oreo advertisements typically adopt a playful and cheerful tone, showcasing the joy and delight associated with consuming the cookie. The brand’s use of humor and relatable scenarios in its commercials creates a welcoming and enjoyable atmosphere surrounding the Oreo brand.
Presence: Oreo maintains a consistent presence in stores and supermarkets worldwide, ensuring that the brand is always readily available to consumers. This consistent availability greatly contributes to the brand’s longevity and reputation as a reliable source of enjoyment.
3. Interactive Campaigns
Oreo has embraced interactive marketing campaigns, encouraging consumer engagement through social media and online platforms.
“Open Up With Oreo”: This campaign invited users to submit photos of themselves enjoying Oreos with friends or family members, accompanied by captions describing what makes their relationships special. Selected entries received prizes, including a year’s supply of Oreos and $10,000 towards a vacation. This initiative not only encouraged people to purchase more Oreos but also engaged them through storytelling and sharing meaningful memories associated with the brand.
“Wonder Vault” : Oreo created a cool virtual adventure called the Wonder Vault. People could explore a magical world using their phones or tablets. They found special Oreo flavors and limited-time treats as they wandered through the virtual vault.
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Twitter Challenge: Oreo initiated a competition where participants could design their own Oreo cookie using the hashtag #MyOREOCreation. Contestants submitted their concepts via tweets or Instagram posts, and chosen finalists earned a trip to New York City to witness their creation materialize. This interactive campaign not only sparked enthusiasm for Oreo products but also offered valuable insights into customer preferences and inventive flavor combinations.
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Digital Billboard Series: Oreo developed a collection of interactive billboards in Times Square, New York City, encouraging pedestrians to engage in straightforward yet captivating mini-games. Each game tasked players with stacking virtual Oreos as tall as they could before they toppled over. Participants could compete against one another and share their scores online, fostering involvement and dialogue surrounding the brand.
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Real-Time Marketing: Oreo keeps up with what’s happening in the world and popular culture. They make quick social media posts and ads that relate to current events. For example, during the 2013 Super Bowl blackout, Oreo posted a picture of a half-eaten Oreo with the caption “You can still dunk in the dark.” This smart and funny move made Oreo stand out and got a lot of praise for being quick and clever.
Promotions and Flavours of Limited Edition: Oreo likes to keep things fresh and exciting for its customers. They often introduce special flavors for a limited time, like Red Velvet Oreos or Birthday Cake Oreos. These unique flavors get fans excited to try something new and boost sales. Oreo also runs promotions for holidays like Halloween and Valentine’s Day, which keeps customers interested all year round.
User Generated Content: Customers are encouraged by Oreo to share their brand experiences. Oreo engages with its followers on social media and highlights their postings on its official channels, whether they are sharing recipes for their favourite dipping sauces or taking images of creative Oreo treats. This community-building user-generated content demonstrates how universally loved Oreos are.
4. Emotional Branding
An essential component of Oreo’s marketing strategy is emotional branding. In order to create a stronger bond with its target market, the brand wants to create particular feelings in them. Here are a few instances of Oreo’s use of emotional branding:
Playfulness: Oreo’s creative team consistently produces imaginative and entertaining advertisements that resonate with both young and old audiences. Through playful wordplay and unexpected twists on classic games, Oreo’s sense of humor connects with consumers on a personal level, fostering fondness for the brand.
Nostalgia: Oreo capitalizes on childhood memories and family traditions linked with cookies and milk. Its timeless appearance and familiarity evoke nostalgia among adult consumers who fondly recall enjoying Oreos with loved ones during their upbringing. By triggering these cherished memories, Oreo forges an emotional attachment with its audience, potentially leading to increased brand loyalty and sales.
Sense of Community: Oreo actively involves its fans in creating the future of the brand. Oreo encourages people to contribute creative ideas for new flavour combinations or designs on social media platforms by holding contests like the #MyOREOCreation contest. By appreciating consumer feedback and including them in the brand’s evolution, Oreo fosters a sense of community and belonging among its fans.
Joy: Oreo relates its cookies to happy occasions like holidays, birthdays, and other festivities. Advertising for the brand usually depict joyful scenes and smiling faces, like kids having fun at a funfair or playing in the sand. By evoking pleasant feelings in viewers, these pictures increase brand affinity and associate Oreo with enjoyable occasions.
4. Seasonal Marketing
Oreo uses seasonal occasions and holidays to promote its products. They release special packaging for Easter, Halloween, Thanksgiving, and Christmas, featuring festive designs related to each holiday. These limited edition packages are popular among collectors and fans who look forward to them every year.
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Contests and Giveaways: Oreo frequently holds online competitions and prize draws related to holidays and cultural events. Followers are encouraged to share their love for Oreos and enter for a chance to win gift baskets, merchandise, or trips to Oreo headquarters. These activities help increase engagement across Oreo’s social media platforms.
Limited Edition Flavors: Oreo often introduces special flavors for a limited time, like Pumpkin Spice Oreos in the fall, Red Velvet Oreos for Valentine’s Day, and Lemon Twist Oreos for summer. These unique flavors create excitement and draw attention to the brand during specific seasons or celebrations.
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Event Activations and Experiential Marketing: Oreo sets up booths at festivals and fairs, offering interactive experiences for attendees. Visitors can dip Oreos in unique icings or decorate their own cookies with colorful toppings. These hands-on activities entertain participants and encourage them to share their creations on social media, expanding Oreo’s online presence through user-generated content.
Collaborations: Oreo partners with chefs, food bloggers, and artists to showcase creative ways to enjoy its cookies, especially during events like National Cookie Month or International Chocolate Day. Artists may create artwork featuring Oreos, enhancing the brand’s presence in the creative community.
5. Events and Sponsorships
Oreo strategically partners with major events and entertainment properties to boost its visibility and strengthen consumer connections. Here are some examples:
Collaborations with cultural institutions: Oreo offers family activities and educational programes with a cookie theme through partnerships with museums like the American Museum of Natural History. Oreo collaborates with haunted attractions like Knott Scary Farm to offer spooky cookie experiences during Halloween.
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Music festival sponsorships: Oreo supports renowned music festivals like Coachella, Glastonbury, and Lollapalooza worldwide. At these events, Oreo creates exclusive merchandise and installations for festival attendees to engage with and share on social media.
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Sports league partnerships: Oreo is an official partner of Major League Baseball (MLB) and celebrates baseball culture through special cookie designs, stadium giveaways, and fan contests during events like the MLB All-Star Game and World Series.
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These partnerships with high-profile events and popular franchises help Oreo increase brand visibility and attract diverse audiences. Through emotional connections, innovative products, and engaging campaigns, Oreo maintains its status as a beloved brand worldwide.
6. Influencer Collaborations
Oreo has partnered with various influencers across different social media platforms to showcase creative ways to enjoy Oreos. Here are some notable collaborations:
Digital influencer partnerships: Online personalities like Rosanna Pansino, Yolanda Gampp, and Amber Kelley regularly share Oreo-themed recipes and DIY projects with their followers, inspiring them to get creative with their cookie creations.
Pastry chef collaborations: Professional bakers like Christina Tosi and Katzie Guy-Hamilton have developed decadent treats using Oreos as the main ingredient, including Oreo-stuffed cupcakes and Oreo-infused ice cream sundaes.
Food blogger partnerships: Oreo has worked with popular food bloggers like Smitten Kitchen, Minimalist Baker, and Oh She Glows to create recipes featuring Oreos, such as vegan Oreo milkshakes and no-bake Oreo cheesecakes.
Lifestyle influencer campaigns: Celebrities such as Mariah Carey, Serena Williams, and Dwayne “The Rock” Johnson have been involved in Oreo ad campaigns or endorsed the brand on their social media platforms. Mariah Carey even launched her own line of Oreo-based desserts called “Mariah’s World.”
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