Gruppo Bimbo

Topics: Bread, Health, Staple food Pages: 2 (664 words) Published: February 18, 2014
Prompt: What changes, if any, should Grupo Bimbo make to its global strategy in order to be more successful internationally? What changes should they make in the US market? What changes should they make to improve profitability in Brazil? Should they remain in China, and if so how should they pursue long-term profitability?

It goes without saying that in order to be successful in a global market, one cannot blindly roll out a stock product and call it a day. Covering the globe is not a “one and done” process—personalities, tastes, price sensitivities, cultural fads, nods, and nuances must be taken into consideration. Even aesthetics (packaging, colors, logo) and name can be absorbed differently per country.

US: Although one of the most gluttonous countries, where bread products are an undoubted staple, the US market did not openly welcome Grupo Bimbo (GB) as warmly as they had hoped. Across the carb industries, there was a shift away, which was largely due to the implications of the new health and wellness trend: low-carb, low-sugar, natural, organic and healthy. What mass-market bread producer could live up to these expectations? In order to succeed in the US market, GB must offer a portfolio of fresh baked goods that caters to the health trend. They also face challenges in their distribution, pricing, and delivery timing. Since they consider themselves a premium product with premium pricing, they need to take advances in qualities, be them taste and/or technology (improve tech, delivery logistics, etc. to offer freshness). Another point that can be picked up is the case for steering around unionized truckers. GB can reduce costs by moving to areas with more favorable union laws.

Brazil: It would seem a “logical leap” to assume a product widely consumed in Mexico would fare well in Brazil. Short-sighted, but “logical.” However, failing to recognize that Brazil is not without its own identity was a big mistake on GB’s part. Bread...
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