Client Name

Continental Biscuits Limited

Faculty Advisor

Mr. Syed Atif Murtaza Qaiser

SBS Thought Leadership Areas

Behavioural Studies

SBS Thought Leadership Area Justification

This Experiential Learning Project (ELP) is firmly situated within the Behavioral Studies thought leadership area at IBA’s School of Business Studies. Behavioral studies focus on understanding human decision-making, attitudes, perceptions, and motivations—all of which are central to this research on Oreo’s market performance after a price hike.

1. Focus on Consumer Psychology and Decision-Making At the heart of this project is the analysis of how Pakistani consumers—especially in the SEC B and C segments—respond to pricing strategies, perceived value, and product positioning. Through surveys, focus groups (with both children and adults), and market data, we examine:

Brand loyalty and switching behavior (e.g., movement from Oreo to Prince or Rio)

Perceptions of value and quality post-price change

Purchase triggers such as packaging, advertising, and peer influence

These elements fall directly within behavioral science, especially Consumer Behavior Theory, Theory of Planned Behavior, and Keller’s Brand Equity Model, all of which underpin the findings.

2. Retailer Behavior and Trade Decision-Making The project also explores retailer stocking preferences, incentive-driven behavior, and response to product margins, which reflect behavioral dynamics at the trade level. Retailers are not just logistical partners—they are decision-makers influenced by perceived profitability, brand strength, and promotional strategies.

3. Experimental and Observational Insights Using a mixed-methods approach (surveys, focus groups, store audits), the project draws on real-time consumer feedback, emotional reactions, and in-store behavioral cues (like product visibility and impulse buying), further anchoring the research in the behavioral domain.

4. Alignment with IBA’s Vision Behavioral Studies at IBA aim to inform marketing, economics, and management strategies that are human-centered and rooted in empirical observation. This report contributes to that goal by:

Providing actionable insights for brands navigating pricing vs. loyalty trade-offs Highlighting how consumer psychology in emerging markets is distinct from Western contexts Offering recommendations that consider both emotions and economics

Aligned SDGs

GOAL 8: Decent Work and Economic Growth

Aligned SDGs Justification

SDG 12: Responsible Consumption and Production Your study directly links with SDG 12 by exploring consumer behavior, brand switching due to price sensitivity, and value perception in a developing market.

The analysis of pricing strategies, pack size optimization, and consumer-level choices highlights how responsible production (by Oreo and competitors) influences sustainable consumption.

The focus on trade incentives, packaging efficiency, and minimized waste through better stock turnover also reflects sustainable practices in the FMCG sector.

SDG 8: Decent Work and Economic Growth By examining the impact of pricing changes on retailer margins, local employment (retail chains, wholesalers, distributors), and economic activity, your study supports SDG 8.

The industry overview touches on growth dynamics of the biscuit sector in Pakistan, including how manufacturers like Mondelez, EBM, and Bisconni manage competitiveness and efficiency.

The inclusion of focus groups and real consumer feedback adds insight into economic inclusivity, especially regarding affordability for SEC B and C segments.

NDA

No

Abstract

This project seeks into how Oreo’s recent price increase has affected its performance in Pakistan’s biscuit market. Over the last few years, especially with economic pressure rising in 2023–24, consumers have become a lot more price-sensitive. Oreo, which is known as a premium brand under Continental Biscuits Limited (CBL), raised its prices in response to cost pressures—but this seems to have changed how people think about and buy the product. The goal of our project was to assess Oreo’s brand equity, retail performance, consumer behavior, and competitive positioning after the price hike. We also looked into whether Oreo’s communication strategies and retailer incentives were still effective in this new environment. To do this, we used a mixed-method approach: primary data was collected via surveys (with over 70 respondents), in-depth interviews, store audits, and two focus groups (one with children, one with adults). We also reviewed market literature and studied over 20 case examples from Pakistan’s FMCG and biscuit industry to support or contrast our observations. The findings showed a drop in repeat purchases and a shift towards brands like Prince and Rio, especially in SEC B and C households. Consumers found Oreo les value-for-money, especially when compared to competitors offering more grammage at the same or lower price. Retailers were also found to be less interested in pushing Oreo SKUs due to slower turnover and limited trade promotions. Brand equity has held up in terms of awareness, but brand loyalty and perceived value have clearly been affected. Communication gaps were noticed, especially post-Ramzan, where Oreo failed to maintain strong visibility

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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