Famous Amos Case Analysis

CA 485: Cases in Strategic Communication

Midterm Exam- Niki Marchand

Chapter 5, Exercise 2 (p. 104)

Famous Amos vs. Chip and Cookie

In the 1990s, Amos Wally, the founder of Famous Amos chocolate chips cookies, sold the rights to his brand to Kellogg. As the cookie’s creator, he was deeply disappointed when Kellogg lessened the quality of his famous cookie and decided to take matters into his own hands. Amos Wally started making his chocolate chip cookies again under the brand name Chip and Cookie. While his cookie uses the original recipe, he has had little success in competing with the brand Famous Amos. Even though the cookie is better than the ones produced by Kellogg, his business has suffered.

        In order to recapture the brand loyalty of customers Wally once had he must distinguish the product from the brand name. While this will be extremely difficult to do, it must be done in order to grow his business. Famous Amos was only the name of the cookies he produced. If Wally could bring the focus back to the actual product, the cookie and its original recipe, he could regain the loyalty of customers he once had. However, this will be no easy task being that Kellogg is such a well-established brand. Kellogg has more revenue and resources to keep the Famous Amos brand name strong. In order for Chip and Cookie to grow, the brand needs to make sure the famous cookie is the center of attention. Draw attention to the fact that the cookie possesses the original recipe and founder. Make sure customers know the difference between the cookies produced by Kellogg and the ones produced by Chip and Cookie. Lastly, Chip and Cookie needs to place a major emphasis on the fact that the cookies they produce are higher in quality and are the cookies that were originally purchased by the consumers.

        In order to market the Chip and Cookie brand, there are four tools the company should use. They are product, price, place, and promotion. In order to develop a successful marketing strategy, the company needs to adhere to the “Four Ps” and focus on each one individually.

        When it comes to the product, the objective needs to be bringing attention to the actual cookie the brand is putting on the market. Show how it is different than what the other competitors are producing. In the situation pertaining to Chip and Cookie, an objective is to make sure consumers are aware that the cookies they make are the original Famous Amos cookies without all of the fame of the Kellogg brand name. They need to package the cookies in a way that highlights the cookie and the original recipe. By having a package showing the actual cookie in all of its glory it will be more appealing to customers who crave the original taste.

        When it comes to price, Chip and Cookie may actually be able to sell at a higher price than that of Famous Amos. Famous Amos is priced off of the brand name and is fueled by the massive amounts of revenue generated by Kellogg. The price for Chip and Cookie could be higher as it would be a direct reflection of the cookies’ quality. While discounts may need to be offered in order to recapture initial brand loyalty, consumers are proven to pay more when it comes to getting a better bang for their buck. In this case, consumers would probably be more apt to pay a higher price for the original cookie they were so loyal too regardless of the brand name it is under.

        As far as place is concerned, where Chip and Cookie chooses to distribute their product will play a major factor in their success. Consumers must be able to know how and where they can buy the product and what all the ordering and purchasing process will entail. Chip and Cookie needs to make sure their product can be found easily in numerous outlets. An object for the company would be to place their product in the same major retailers as the Famous Amos brand so consumers would be able to compare the brands and have the option readily available to purchase the Chip and Cookie brand.