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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

  1. Can you re-create Hydrox through a name change?
    What kind of brand name could compete with Oreo? (Most people unfamiliar
    with Hydrox think it is a cleaning product.) Develop five (5)
    possibilities for a new name. Pick the best out of five and give your
    reasoning.
  2. 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).
  3. Can you modify the original formula to make
    something new and more competitive? Will a brand extension work here?
    Why or why not?

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