Oreo: Crowdsourcing as a Marketing Tactic
Case
Author: Ernest Baskin & Thomas Vecchio
Online Pub Date: January 02, 2018 | Original Pub. Date: 2018
Subject: Advertising & Promotion, Brand Management & Strategy, Marketing Communications
Level: | Type: Indirect case | Length: 3328
Copyright: © Ernest Baskin and Thomas Vecchio 2018
Organization: Mondelez International| Frito-Lay| Oreo | Organization size: Large
Region: Northern America | State:
Industry: Manufacture of food products
Publisher: SAGE Publications: SAGE Business Cases Originals
DOI: https://dx.doi.org/10.4135/9781526447241 | Online ISBN: 9781526447241
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
© Ernest Baskin and Thomas Vecchio 2018
This case was prepared for inclusion in SAGE Business Cases primarily as a basis for classroom discussion
or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein
shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use
only within your university, and cannot be forwarded outside the university or used for other commercial
purposes. 2022 SAGE Publications Ltd. All Rights Reserved.
The case studies on SAGE Business Cases are designed and optimized for online learning. Please refer to
the online version of this case to fully experience any video, data embeds, spreadsheets, slides, or other
resources that may be included.
This content may only be distributed for use within Universitas Indonesia.
https://dx.doi.org/10.4135/9781526447241
Page 2 of 9
Oreo: Crowdsourcing as a Marketing Tactic
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
Abstract
This case covers the concept of crowdsourcing in a business perspective through the lens of
Oreo’s #MyOreoCreation contest. It covers the following topics: crowdsourcing, cannibalization,
consumer relationship management, and an analysis of the pros and cons of crowdsourcing with
comparisons.
Case
Learning Outcomes
The primary learning objectives for this case are to:
•
•
•
•
Understand the logic behind social-media-based crowdsourcing.
Analyze Oreo’s implementation of crowdsourcing.
Assess the positive and negative outcomes of crowdsourcing.
Consider how crowdsourcing can build brand recognition and brand trust.
Introduction
From May 8, 2017, to July 14, 2017, and from July 14, 2017, to August 15, 2017, Oreo launched a
#MyOreoCreation contest on social media. In this contest, consumers submitted ideas for a good-looking,
unique, or tasty Oreo flavor combination. The winner’s idea would become reality in the summer of 2018, and
they would also receive a $500,000 grand prize. The contest was almost entirely social media based, with a
majority of responses to the contest being on Facebook, Twitter, or Instagram. Contestants were also able
to submit on the Mondelez International website (Mondelez International is the parent company of Oreo), but
the main platform for the campaign was social media. Companies often use social media as a public space
to connect with consumers and to collect information and feedback from them. By using social media, the
company can more effectively connect with younger generations, including millennials, who make up 25% of
the US population according to a Mintel report (Macke, 2017). Generation Z, or “iGens,” refers to people born
post-2000, who are also very active on social media: “Like Millennials, iGens share constant connectedness,
but this generation of digital natives is also fiercely independent about their digital decision-making, from how
they use Snapchat to the products they purchase” (Schneider, 2015). In 2017, 82% of 18–29 year olds and
79% of 30–49 year olds used Facebook. The average user also spent about 20 minutes browsing. During
that 20-minute period, over one million links were shared by the near two billion active users on Facebook. Of
those two billion, 1.66 billion were on mobile devices (Aslam, 2017).
What does this mean for Oreo? Essentially, Oreo is able to reach a broad range of people very easily and is
provided an easy advertising platform. Social media exposes them to a broad range of people, from college
students to young parents. One of their July 2017 posts garnered 4.9 million views and nearly 4,000 shares.
The current Oreo lineup consists of the original flavor, peanut butter, birthday cake, cookie dough, lemon,
berry, and others. Their most recent flavor concept is their kickoff for the competition: the Firework Oreo,
which is very similar to their normal cookie, but has a popping candy similar to Pop Rocks inside (Multivu,
2017). Just after the contest’s launch, the company began receiving a wide range of ideas from consumers,
such as avocado or “Thanksgiving.”
Oreo announced the campaign on May 8, 2017, and began the social media push shortly thereafter. This
included posts on their social media accounts and a formal press release. The press release on their website
outlined the contest:
Page 3 of 9
Oreo: Crowdsourcing as a Marketing Tactic
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
When it comes to OREO product innovation, the sky is the limit – literally! Introducing
Firework OREO Cookies, the newest limited edition flavor from the OREO Wonder Vault, featuring popping
candy creme, hits shelves nationwide starting today. With this unique OREO cookie flavor launch, the brand
also invites fans further into the OREO Wonder Vault by kicking-off the #MyOreoCreation #Contest, a search
for future OREO creations. For the first-time ever, fans will submit their ideas for what the OREO Wonder
Vault should create and release next for the chance to win a cash reward valued at $500,000, as well as
unprecedented fan access to top-secret OREO creations.
The #MyOreoCreation #Contest leverages the unique equity the OREO Wonder Vault has built around
innovation and, especially, deliciously unexpected flavors. Because whether it’s turning OREO cookies into
Chocolate Candy Bars or capturing the flavor of a favorite treat in an OREO cookie, the OREO Wonder Vault
is constantly dreaming up ways to surprise and delight fans. And now, fans can join in.
“Our newest limited edition flavor got us thinking – if we can create a Firework OREO cookie, what else
could we create? And who better to ask than those who are already sharing their flavor and creation
ideas,” said Madeline Vincent, Brand Manager, OREO. “We’ve always loved hearing and seeing our fans’
ideas and now we’re thrilled to merge that passion and creativity with OREO innovation to come up with
future OREO Wonder Vault creations.”
Using the newest limited edition flavor as inspiration, fans are encouraged to get creative when it comes to
dreaming up what could be an OREO creation. It could be a never-thought-possible-in-a-cookie flavor, or the
combination of two flavors. It could even be an idea that’s not even a flavor (see Firework OREO cookies!).
Maybe it’s a flavor inspired by a favorite memory (what would that perfect day at the beach taste like?) or
a place (how about the Rocky Mountains?). It could even be a favorite activity (like going to a carnival or
camping).” (Multivu, 2017)
Crowdsourcing
Crowdsourcing is the practice of obtaining information or input for a task or project by enlisting the services
of a large number of people, either paid or unpaid, typically via the internet. It is a relatively new marketing
tactic because it emerged in the last decade or so. The concept revolves around relationships with consumers
(Janofsky, 2014). “Crowdsourcing is a fount of mutual benefit for firms and consumers: Users receive benefits
in the form of economic reward, social recognition, self-esteem, and/or the development of a skill, and the
crowdsourcing firm benefits from the advantage of what the user has brought to the table in terms of the
activity initially proposed” (Estellés-Arolas, 2012).
Crowdsourcing is an inbound marketing strategy, meaning it attracts new customers through its content
(Marketo, 2016). In the example of Oreo, Mondelez was using a pull marketing-focused approach to entice
new customers and generate buzz. Pull marketing uses mass media promotions, word-of-mouth, and
consumer involvement to make the consumer come to the supplier. Using this strategy, the company can
actively engage the consumer in the process and follow through with Customer Relationship Management
(CRM). CRM enables a business to manage relationships with its customers by storing data about them
(Rouse, 2014). Official website idea submissions required the consumer to include an email address. If one
million of Oreo’s Facebook followers submitted an idea via the website, then Oreo potentially has one million
new people for a mailing list with deals and new upcoming products. On social media, the company can track
who follows them and which times of day are peak for clicks on their pages. This information can be used to
target certain groups or even curate when ads should go up for the most eyes to see.
Over 41 million Facebook users, 2.3 million Instagram users, and nearly 850,000 Twitter users follow Oreo,
all reachable through the campaign. According to GQ, Mondelez International, the parent company of Oreo,
noticed a decline in sales in early 2017 (Sedacca, 2017). Regardless, Oreo’s brand brings in billions each
year, and the company is looking forward to introducing some new flavors to their lineup.
Oreo was not the first to use this strategy. Frito-Lay executed a similar campaign called the “Do Us A Flavor”
contest. In that campaign, people could win $1 million for submitting their flavor ideas. In 2012, this contest
Page 4 of 9
Oreo: Crowdsourcing as a Marketing Tactic
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
was so popular that the winning chips sold out in less than two hours after hitting the shelves (#TBTeam,
2016). They were also resold online for much more than the average price of a bag. 2017’s contest had
three finalists—Crispy Taco, Everything Bagel with Cream Cheese, and Fried Green Tomato—which were
narrowed down from 18 semifinalists. Consumers voted for them via hashtags on Twitter, Instagram, and
Snapchat. Similarly, Starbucks implemented a “White cup contest” in 2014 in which customers doodled on
their cups and one person’s cup was chosen to go into production (Starbucks Invites, 2014). The winning
design contained an elaborate black and white pattern by Brita Lynn Thompson, a 20-year old community
college student in Pittsburgh (Starbucks Announces, 2014).
What do companies aim to gain from these contests? For one, crowdsourcing creates a connection between
the company and their consumers through social media. Millennials are currently the most targeted
demographic, but they can also be the most complex and difficult audience to reach. Social media splits them
from other generations due to their heightened comprehension of the online world. However, crowdsourcing
campaigns manage to attract several generations via social media. For example, the average age of
Facebook users in the United States is 40 years old (Philips, n.d.).
This type of campaign can lead to virtually free advertising. After a PopSugar post by Erin Cullum was posted
about avocado Oreos, several similar articles were published. Business Insider, Mashable, Delish, AdWeek,
and Food & Wine are just a few of the outlets that covered the “unique” cookie concepts (Cenicola, 2017;
Dockray, 2017; Matthews, 2017; Sherman, 2017; Skrovan, 2017). Even YouTube streamers like The Secret
Life of Vivian tried to make their own interpretation of the avocado Oreo. Social media has made it much
easier to be heard and to spread opinions on unique concepts. Anindita Mukerjee, the chief marketing officer
for Frito-Lay North America, notes, “Today, consumers want to have their voices heard and they want to have
their hand in where a brand goes, what a flavor is for a brand, what direction it goes, they want to have a say”
(Hohmann, 2015) in relation to Frito-Lay’s “Do us a Flavor” competition (see Figure 1).
Page 5 of 9
Oreo: Crowdsourcing as a Marketing Tactic
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
Figure 1. Example of the Lay’s Do-Us-A-Flavor chips in store.
Source: Author.
Page 6 of 9
Oreo: Crowdsourcing as a Marketing Tactic
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
Pros and Cons of Crowdsourcing
It is essential in understanding crowdsourcing to analyze its effects on everything downstream of the concept,
from brand personality to cannibalization of other products. Cannibalization is when a company’s new product
has a negative impact on the sales performance of its existing and related products (Staff, 2003). In this case,
cannibalization may not happen immediately. Oreo has no intention of altering their flagship cookie, but as
more flavors emerge, they begin to factor into shelf space and purchasing habits. In just the classic Oreo
varieties, there are Oreo Thins, Double Stuff, Mega Stuff, and Minis. Parents are the primary purchasers
of packaged cookies, and now, as Millennials enter the workforce and become the primary purchasers or
“gatekeepers” for their new households, there is potential for changing preference. Millennials are perceived
as snackers who desire variety (Averbook, 2017). As Baby Boomers become targeted less, shelf space
allocated to the original flavor could begin to shrink.
Cost is also a factor because the company would like to save in market research. Surveys conducted over
the phone or email can cost anywhere from $5,000 to $20,000, depending on the number of people in the
sample (Suttle, n.d.). If the team behind Oreo were to perform traditional market research, they would spend
more on smaller samples of people to collect information than they would with crowdsourcing. Oreo received
thousands of responses to their contest from the beginning of the campaign. However, companies don’t
always save costs with this type of marketing campaign. In an article in The Wall Street Journal, Janofsky
(2014) wrote, “A very high volume of half-baked ideas brings with it the overhead cost of evaluating those
ideas. A breadth of creative input, while attractive in its own right, may require considerable review. Another
problem is that, when ideas aren’t completely thought-through, they simply create a lot more work for the
organization.” While the ideas may be free to obtain, evaluating them takes time, money, and employee hours.
That said, crowdsourcing is much faster and cheaper than conventional marketing research techniques and
simultaneously increases consumer engagement with the brand.
Another potential consequence of crowdsourcing is brand dilution. Dilution means the brand’s name, quality,
or image is decreased. (Penn, 2016) For example, searching #MyOreoCreation on Twitter yields an account
called MyOreoCreation, which, to the average person, appears to be an official account. This account
posted weird and unappetizing flavor ideas like sheet rock, glue, and pencil lead. The parody account
potentially dilutes the Oreo brand because some consumers might have confused it as an official account.
That miscommunication could have led to negative misconceptions of the competition or poor consumer
acceptance of the contest.
Crowdsourcing can potentially backfire if resources aren’t devoted to review submissions. For instance,
the UK attempted crowdsourcing a name for its new $290 million polar research ship. Initially, the contest
received names like Shackleton, Endeavour, and Falcon. However, the winning name was Boaty McBoatface
(Williams, 2016). The UK decided it wouldn’t use that result. Science Minister Jo Johnson said, “there were
more suitable names.” They settled on the fourth-place winner: The RRS Sir David Attenborough (BBC,
2016). This name was met with backlash due to the fact it was not actually the winning name. An article by
the BBC notes, “This has sparked outrage, of sorts, on social media. Boaty McBoatface had proved to be a
powerful force, spreading across the internet and sparking a number of imitations” (Williams, 2016). Since the
people in charge discounted the public’s decision, a negative effect transfer occurred. Negative effect transfer
refers to a negative opinion of an entity resulting from an action connected to that entity (Meyers, n.d.). In
this case, by not aligning with the community, the company/group isolates the community from the process.
If Oreo were ever to isolate their targeted consumer base, they would run the risk of losing potential sales
and return customers. Recently, Sweden’s MTR (Mass Transit Railway) declared one of its newest trains will
be named “Trainy McTrainface” (Gilchrist, 2017). In order to appease the public, the British Antarctic Survey
named the sub-sea vehicle the ship will carry Boaty McBoatface. Clearly, crowdsourcing can have significant
negative ramifications if not executed properly.
Discussion Questions
1. What is crowdsourcing and what are its positive and negative attributes?
2. Is social media an effective tool for crowdsourcing?
Page 7 of 9
Oreo: Crowdsourcing as a Marketing Tactic
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
3. What should Oreo avoid when bringing their contest to a close so they do not receive a similar
backlash to the “Boaty McBoatface” incident? What other consequences could this have?
4. Are there cannibalization risks for the new products resulting from Oreo’s campaign? How can these
risks be mitigated?
Further Reading
BrandIndex. (2014, October 13). Crowdsourcing campaign appears to boost brand perception for Lay’s.
Retrieved from http://www.forbes.com/sites/brandindex/2014/10/11/crowdsourcing-campaign-appears-toboost-brand-perception-for-lays/#11de2923571d
Campbell-Schmitt, A. (2017, May). We Tried Fireworks Oreos With Popping Candy Inside. Retrieved from
http://www.foodandwine.com/news/firework-oreo-taste-test
Garner, L. (2015, July 21). Entrepreneur Business Website Talk Business Small Medium Business Advice
Tips SME Success. Retrieved from http://www.talk-business.co.uk/2015/07/22/crowdsourcing-the-pros-andcons/
Janofsky, A. (2014, October 29). Benefits of Crowdsourcing. Retrieved from http://www.wsj.com/articles/
benefits-of-crowdsourcing-1414625224
Kirkpatrick, D. (2017, May 09). Oreo is letting fans come up with its next flavors. Retrieved from
http://www.marketingdive.com/news/oreo-is-letting-fans-come-up-with-its-next-flavors/442259/
Zimmerman, K. (2016, July 12). How Crowdsourcing Is Transforming The Workplace. Retrieved from
http://www.forbes.com/sites/kaytiezimmerman/2016/07/12/how-crowdsourcing-is-transforming-theworkplace/#2b9e539f7030
References
#TBTeam. (2016, July 20). Do Us a Flavor and Use Social Media: How Lay’s Tapped Into Social Media.
Retrieved from https://tbsmo.com/do-us-a-flavor-and-use-social-media-how-lays-tapped-into-social-media/
Aslam, S. (2017, August 11). Facebook by the Numbers: Stats, Demographics & Fun Facts. Retrieved from
http://www.omnicoreagency.com/facebook-statistics/
Averbook, M. (2017, August). Cookies - US - August 2017. Retrieved from http://academic.mintel.com/
display/847877/
BBC. (2016, May 06). ‘Boaty McBoatface’ polar ship named after Attenborough. Retrieved from
http://www.bbc.com/news/uk-36225652
Cenicola, T. (2017, July 07). From tea to Swedish Fish, Oreo is trying new flavours for an Instagram
generation. Retrieved from http://business.financialpost.com/news/retail-marketing/when-just-vanilla-wontdo-how-about-a-blueberry-pie-oreo
Cullum, E. (2017, September 03). One of These Crazy Flavors Could Be the Next Oreo Cookie in Stores.
Retrieved from http://www.popsugar.com/food/My-Oreo-Contest-Creation-Flavors-2017-43694556
Dockray, H. (2017, June 30). Oreo is taking (and making) flavor suggestions, including avocado. Retrieved
from http://mashable.com/2017/06/30/avocado-oreo-hashtag-campaign/#hm.URjERYOqk
Estellés-Arolas, E. , & González-Ladrón-de-Guevara, F. (2012). Towards an integrated crowdsourcing
definition. Journal of Information Science, 38(2), 189–200.
Gilchrist, K. (2017, July 21). Sweden asked the public to vote on a name for a new train and this is what
they came up with. Retrieved from http://www.cnbc.com/2017/07/21/sweden-trainy-mctrainface-mtr-expressboaty-mcboatface-fail.html
Hohmann, K. J. (2015, November). Do Us A Flavor. Retrieved from https://sites.psu.edu/hohmanniampr/
2015/11/18/do-us-a-flavor/
Janofsky, A. (2014, October 29). Benefits of Crowdsourcing. Retrieved from http://www.wsj.com/articles/
benefits-of-crowdsourcing-1414625224
Macke, D. (2017, June). Marketing to Millennials - US - June 2017. Retrieved from http://bit.ly/2AIzoKE
Marketo. (2016, January 21). What is Inbound Marketing? Overview & Tools - Marketo. Retrieved from
https://www.marketo.com/inbound-marketing/
Matthews, L. (2017, August 28). Oreo Actually Made Some Of Its Most Insane Fan-Requested Flavors.
Retrieved from http://www.delish.com/food-news/news/a54084/oreo-fan-requested-favors/Newswire
Page 8 of 9
Oreo: Crowdsourcing as a Marketing Tactic
SAGE
© Ernest Baskin and Thomas Vecchio 2018
Business Cases
Multivu. (2017, May 8). The OREO Wonder Vault releases new firework oreo cookies. Retrieved from
http://www.multivu.com/players/English/8096351-oreo-my-creation-contest-firework-cookies/
Myers, C. (n.d.). What Is Transfer Advertising? Retrieved from http://smallbusiness.chron.com/transferadvertising-23214.html
Penn, C. S. (2016, November 7). The Danger of Brand Dilution. Retrieved from
http://www.christopherspenn.com/2016/11/the-danger-of-brand-dilution/
Philips, J. L. (n.d.). What Is the Breakdown of Facebook Users by Age? Retrieved from
http://smallbusiness.chron.com/breakdown-facebook-users-age-63280.html
Rouse, M. (2014, November). What is customer relationship management (CRM)? - Definition from
WhatIs.com. Retrieved from http://searchcrm.techtarget.com/definition/CRM
Schneider, J. (2015, May 6). How to Market to the iGeneration. Retrieved from https://hbr.org/2015/05/howto-market-to-the-igeneration
Sedacca, M. (2017, July 10). The Business Strategy Behind Oreo’s Constant, Weird New Flavors. Retrieved
from http://www.gq.com/story/the-business-strategy-behind-oreos-constant-weird-new-flavors
Sherman, E. (2017, July 30). Oreo Made Avocado, Unicorn, and Popcorn Flavors For Fans. Retrieved from
http://www.foodandwine.com/news/new-oreo-fan-flavors-avocado-unicorn
Skrovan, S. (2017, June 30). Oreo turns to social media to create kettle corn, avocado and other flavors.
Retrieved from http://www.fooddive.com/news/oreo-turns-to-social-media-to-create-kettle-corn-avocado-andother-flavors/446227/
Staff, I. (2003, November 23). Market Cannibalization. Retrieved October 04, 2017, from
www.investopedia.com/terms/m/marketcannibilization.asp
Starbucks Invites You to Decorate its Iconic White Cup. (2014, April 24). Retrieved from
https://news.starbucks.com/news/starbucks-invites-you-to-decorate-its-iconic-white-cup
Starbucks Announces the Winner of its White Cup Contest. (2014, June 23). Retrieved from
https://news.starbucks.com/news/starbucks-announces-the-winner-of-its-white-cup-contest
Suttle, R. (n.d.). Key Costs & Benefits in Marketing Research. Retrieved from http://smallbusiness.chron.com/
key-costs-benefits-marketing-research-26311.html
Williams, N. (2016, May 6). Boaty McBoatface decision sparks mock outrage. Retrieved from
http://www.bbc.com/news/uk-36228884
https://dx.doi.org/10.4135/9781526447241
Page 9 of 9
Oreo: Crowdsourcing as a Marketing Tactic