United Cereal

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“United Cereal: Lora Brill’s Eurobrand Challenge” case analysis

Question 1. As Lora Brill, United Cereal European VP, would you authorize Jean-Luc Michel’s request to launch of Healthy Berry Crunch in France? Be sure to analyze both sides: Launch and Delay Launch (summarize in a table format and then discuss).

Question 2. Does United Cereal represent an example of centralized or decentralized international management?

Question 3. What do you think of Brill’s Eurobrand proposals? Should she authorize the launch of Healthy Berry Crunch as the Eurobrand? What concerns do you have? How do you resolve them? Be sure to analyze both sides: Launch and Delay Launch (summarize in a table format and then discuss).

Question 4.a. How might United Cereal implement your recommendations? 4.b. What do you think of the Eurobrand Team proposal? 4.c. How can you make the Team work?

Introduction

The case gives a brief idea about the company’s confusion over a new product launch in Europe. United Cereal was first established in the year 1910 in Kalamazoo, Michigan, It also stepped in to the market of other markets such as beverages, frozen food, and baked food. But the breakfast cereal trend soon set in. And it was very necessary for the company to do a full research before launching a new product. The company had strong values and policies, which it needed for its managers to follow. Breakfast cereal market was a potential market and there was only one major competitor, Kellog. With the growing demand of the ready to eat cereals, the company was now in a highly competitive industry.

To develop a new brand, was both expensive and time taking. The company had now stepped into European market after 30 years in the business. It first acquired the local market distribution, and then grew it by introducing American products. European market was becoming a complex market to handle.

Crunch in other European markets with the Eurobrand approach, continuing with Germany and Benelux, as those countries are also in favor of Healthy Berry Crunch. At the same time the company would do the further research on other European countries and choose the countries that test results show well to launch the next. Paying attention on the recovery in Spain, when it is getting ready and if the product test results show well, the product can also be launched in Spain next.

For the issue of too much cost ($20 million), as mentioned above, the savings over three years would compensate the cost associated with the launch. Also, the issue with local customization causing differences in product profiles and market strategies would be solved as the consumer tastes in Europe are converging as market differences are eroding. Hence, it is not too unrealistic to say that Healthy Berry Crunch will be well received across Europe.[/private_membership] And lastly, although the current organization structure doesn’t fit for Eurobrand, but changing the organizational structure to support Eurobrand strategy will definitely lead the company’s success as well as help European countries work together, understands each other more and become closer.

Question 4.a. How might United Cereal implement your recommendations? 4.b. What do you think of the Eurobrand Team proposal? 4.c. How can you make the Team work?

Answer 4.a.

Implementation steps:

1) Remind all staff in the company of the failure that resulted from only having one person in charge of the “frozen juice product launch”, which was called a “disaster”.

2) Convince all country managers that their input will be considered in the Eurobrand teams and that this is not a challenge to their authority. This is really important to consider because the failure of the previous standardized European product launches was a result of the lack of support provided by the country managers.

3) Create “Eurobrand Teams”, expanding responsibilities of country managers with a lot of cross-country...
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