Case Study United Cereal
1. As Lora Brill, United Cereals’ European VP, would you authorize Jean- Lue Michels’ request to launch Healthy Berry Crunch in France?
In November of 2009, there was a drop in shipments and shares of the product and their studies presented that over 30% of survey-takers did not like the product because of the form and consistency of the product. In my opinion, the product should be tested and developed longer; which means that there would be an enormous increase in the budget they would need and I believe that is above the approval of the Division Vice President. I also think that the rumor about the Berry Burst Cheerios could have a severe impact on UC’s sales of Healthy Berry Crunch if they do not have …show more content…
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?
Eurobrand is a coordinated Europe-wide plan towards product marketing, which had thrived in product development for United Cereal. As Consumer tastes are meeting, old habits are disappearing, and EU regulation is wearing awaynmarket differences by regulating the products as well as their advertising, promotion and marketing.
Launching Eurobrand could lead to a loss of the UC way, which is “Listen to the Customer”. Unless United Cereal would test Healthy Berry Crunch across Europe, it would never know if the consumers across Europe would want it or not. Launching HBC in France alone will cost at least $20 million, which is 10 times the approval level of Jean-Luc Michel, and two times the approval level of Lora Brill. There is difference in opinions through United Cereal over this strategy and many companies are still in recovery from the recession, so these will create future problems for Eurobrand to succeed as a European strategy. If UC were to launch Eurobrand they will be able to cut their product growth and marketing expenses by 10% to 15% over the next 3 years. If United Cereal were to launch Eurobrand they would be the first to introduce such an idea, putting them ahead of the game. If the idea becomes successful, it will give UC a strong market …show more content…
2) Get the support of the Country Managers by convincing them that their input will be considered in the Eurobrand teams in order to assure them that their authority is not being challenged. 3) Create “Eurobrand Team”, expanding responsibilities of Country Managers and bring the UC employees closer. 4) Test the Eurobrand approach in order to compete with Cheerio’s Berry Burst by launching the HBC product in France 5) UC could spread Eurobrand strategy to other European countries slowly, such as Germany, as long as this would prove to be successful in