Case study 1.2 CPW

Topics: Brand, Strategic management, Marketing Pages: 5 (2518 words) Published: October 26, 2014

Table of Contents
TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc401266460 \h 2How can General Mills and Nestlé create international competitiveness by joining forces with CPW? PAGEREF _Toc401266461 \h 4The CPW Value Chain PAGEREF _Toc401266462 \h 4Centralization of the Upstream Activities. PAGEREF _Toc401266463 \h 5De-centralizing downstream Activities PAGEREF _Toc401266464 \h 5Evaluate the international competitiveness of CPW compared to the Kellogg Company. PAGEREF _Toc401266465 \h 6Kellogg Background Information PAGEREF _Toc401266466 \h 6Value Chain PAGEREF _Toc401266467 \h 6Kellogg Advantages PAGEREF _Toc401266468 \h 6CPW Advantages PAGEREF _Toc401266469 \h 6Suggest how CPW can create a blue-ocean strategy. PAGEREF _Toc401266470 \h 7First Strategy: Stand-alone store PAGEREF _Toc401266471 \h 7Second Strategy: Partnership with fitness centres PAGEREF _Toc401266472 \h 7Where and how can CPW create further international sales growth? PAGEREF _Toc401266473 \h 8Marketing and Brand Strategy PAGEREF _Toc401266474 \h 8Strengthening Core Branding PAGEREF _Toc401266475 \h 9New Global Brands PAGEREF _Toc401266476 \h 9Innovation and New Product Launch PAGEREF _Toc401266477 \h 9Merger and Acquisition PAGEREF _Toc401266478 \h 9Conclusion PAGEREF _Toc401266479 \h 10Bibliography PAGEREF _Toc401266480 \h 11

Executive SummaryCereal Partners Worldwide (CPW) joined forces with General Mills and Nestle in order to create more international competitiveness. This was achieved by combing all the organization strength into one. General Mills brought massive manufacturing capabilities, excellence in products and production process, and diversified portfolio of products. Nestle brought feeding the world, selling in all countries and deep understanding of international marketing and distribution. With the upstream value chain, CPW will need to centralize procurement on raw materials for all its manufacturing operations. By using this strategy will receive CPW more of the bargaining power when dealing with suppliers. This will result in lower costs and better opportunities for future suppliers. With the downstream of the value chain regarding marketing/sales & distribution and having these parts of the organization decentralized, this will give CPW competitive advantage over competitors. This will give CPW the ability to market variety of different product to certain individual consumers. When one compares both advantages over CPW and Kellogg with the value chain, it can see which has the better-perceived customer value. Kellogg had the better value added chain; this was shown by comparing advantages over CPW. By looking at the advantages compared with both companies, this can explain why Kellogg is more of a market lead in international business strategy. The two best blue ocean strategy would be having a stand-alone store and partnering up with a fitness centre to form a private label. With having a stand-alone or a private label, this will give CPW to connect with their health-conscious consumer. Another benefit of doing a private label is a decrease in cost relative brand marketing. This gives CPW to focus on the quality of the product to increase brand loyalty and confidence. To increase sales volumes, CPW needs to improve on penetrating into their market using a glocalization strategy. There are five areas that CPW can work on marketing and brand strategy, strengthening core brands, Innovation and new product launch, new global brands, and merger and acquisition. This will give CPW more of a presence in their market and be able to act like an international and local provider to their consumer base.

How can General Mills and Nestlé create international competitiveness by joining forces with CPW?General Mills and Nestle need to leverage the value chain in their joint venture to gain market share. This can be done by centralizing upstream activities and decentralizing downstream activities. Adjusting how these activities...

Bibliography: BIBLIOGRAPHY Hollensen, S. &. (2008). Essentials of Global Marketing. Harlow, Essex, England: Pearson Education.
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