Problem Identification
United Cereal, is an establishment with experience of more than 100 years in the breakfast food business. This corporation is going through difficulties in making a choice for the launch of its latest cereal product. United Cereal is a multinational organization with worldwide experience. The issue here is that the company's vice president Lora Brill is deep in thoughts about whether she should adapt the idea of Eurobrand and launch the Healthy Berry Crunch throughout Europe or that pursuing France is the best alternative for launching Healthy Berry Crunch. The VP needs to think critically about the situation in order to select the most ideal option.
Porters Five Forces Analysis
Threat of New Entrants: The barrier of
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This alternative contains numerous significant features that works in favor of the implementation if chosen. The initial benefit will be the growing interest of French buyers in regard to healthy products. This however, provides an opening for the company to harness. Furthermore, since this segment is somewhat new in the industry, especially in France, the competition will most likely be minimal. Also, by entering this new segment of the market, the corporation can attain a first mover advantage and obtain a sturdy hold in the French market as well. Implementing the Eurobrand strategy in France will be great since it has a good geographical location. There will also be cost savings between 10%-15% which will be a great benefit for the company. Also, cost savings will favour the long-term plan of the company and will provide it with the influence to settle and discover other markets as well. A disadvantage of going into France will be the high costs and risks in introducing this Healthy Berry Crunch cereal. Also, Cereal is not the primary choice for the French people when it comes to breakfast. Moving on, another concern in regard to a full-scale launch of Eurobrand is the company's structure. Within the case, the company's vertical integration is considered as a good one because of its traditional setting and how it averts many dangers. Hitherto, it can be negative as …show more content…
Also, by using Eurobrand teams, the company can obtain more information about the similarities and differentiations within cultures and be able to device that into their product-making and distribution plans. Another advantage will be attaining higher economies of scale by becoming more of a power house throughout Europe by standardization. Furthermore, a sturdy standardized brand name will grow the marketing power United Cereal has throughout Europe. Lastly, a more swift and aggressive plan such as Eurobrand can avert the Podcafe fiasco problem. Moving on, one con of this option is that the is a high check attached to Eurobrand, and therefore, in a recession, cash flow is not readily accessible like before, especially with diminishing revenues. Furthermore, if the power of the GMs within the company are diluted, it can interrupt the harmony in the organizational structure leading to a lot of esteemed people leaving or becoming unmotivated. It will also be a bad idea on the company's part to ignore local cultures and markets. This is because for them to be able to compete with Kellogg, they will need to achieve competitive advantage by attaining shelf-space, delivery chains, and brand within the community. Lastly, a leader chosen for the Euroband strategy ought to be obvious. This is due to the fact that, if administrators do
TCBY has been a frozen treats product innovator from the day its first shop opened in Little Rock, Arkansas in 1981. The great-tasting, low-fat frozen yogurt concept received an enthusiastic response from an increasingly health-conscious public. Its trendy new product propelled the company to the forefront of franchising, and was the ‘first in a long line of ground-breaking menu items that anticipated consumer preferences and continually refreshed the TCBY concept’ (Conlin 2001, p. 133). But TCBY products are just one of the reasons that thousands of operators have concluded that a TCBY franchise is the preferred opportunity in branded frozen treats, and a dynamic partner in any co-branded concept. However, TCBY is facing a lot of problems, both internal and external, during the difficult period from the late 1980s to the early 1990s, especially the problem with its franchising system. The purpose of this report is to provide a comprehensive situation analysis of TCBY, with special reference to its franchising system, and identify several concerned issues of TCBY and its franchisees, and how these issues have negatively affected the relationship between them. Furthermore, this report also provides three recommendations in the attempt to diminish these concerned issues and better maintain the relationship between TCBY and its franchisees, and most importantly, help TCBY to increase the company’s performance and achieve their strategic goals in the next few years.
John Harvey Kellogg wanted to cure “Americanitis”, which was the stomachache caused by the typical American breakfast. This breakfast consisted of sausage, fried ham, beefsteak, bacon, with whiskey and salt added on top. He decided to build a tiny health center that helped American improve their heath. In that center, he provided tips for healthy eating, and exercises. He did not allow fats, salt, or sugar in his clinic. In 1894, he took a trip to Denver, where he met an entrepreneur who invented a cereal made of shredded wheat. This inspired Kellogg to take this idea back home, and share with his brother, Will. Kellogg and his brother began to experiment, and created many cereals. They then met C.W. Post, and decided to collaborate and were eventually called themselves The Big Three. They invented 108 different brands of cereals. In the 1940s, they began adding a candy coating to the cereal. The Big Three controlled about 85% of the cereal market. The public’s enthusiasm for cereal grew drastically because women, who had children, had more time in the morning. Although convenience was the key to starting the day, the Big Three could not control the breakfast table without being finessed.
Post Cereals was the first company to come up with the idea for a pastry that would later inspire Kellogg's Pop-Tarts. In the early part of the 1960s, Post began developing a method of packaging dog food in foil in order to keep it fresh and avoid refrigeration. They began applying this method to food for human consumption and created a new breakfast pastry that could be prepared in a toaster and would complement their already popular cold cereals. The announcement of this new breakfast pastry, which Post had decided to call “Country Squares,” came in 1963. Because the product was released so hastily, however, one of Post's biggest competitors, Kellogg, was able to come up with their own version and release it six months later. Even though Post had released their Country Squares prior to Kellogg's version, their sales were lackluster. Many believed that this was due in part to their name. In a time of progressive pop culture, the name Country Squares could be seen as a backward way of thinking. The developers working on the proje...
General Mills, Inc. has sold Cheerios since 1941, so the company has a legacy for providing Cheerios to the consumers. The product contains healthy ingredients in which the consumers benefit from eating a ready-to-eat cereal. The inclusion of ingredients makes the value important and the quality of cereal have an increase in value. There is has been a higher demand of healthy ingredients recently in which Cheerios continues to succeed in this factor and continues to help a consumers’ health. In addition, Cheerios is part of a General Mills movement in which their mission is to “nourish everyone by making lives healthier, easier and richer (An "O" shaped by history, 2013).” This means that General Mills is improving in providing healthier products while competing against generic brands.
The European Vice President of United Cereal (UC), Lora Brill, is confronted by a dilemma: to launch a new product called Healthy Berry Crunch as the first ‘Eurobrand’ or not. A wrong decision may destroy her career, especially since Healthy Berry Crunch is not only a new concept of healthy cereal, but also a pioneer of United Cereal’s Eurobrand, which is different from the company’s usual standards. On the other hand, if she makes the right decision, she may be able to grow the company to a whole new level.
Krispy Kreme Case Study Question 1. The chief element of Krispy Kreme's strategy is to deliver a better doughnut and to appeal to customers in new ways. They have taken great steps to insure customer satisfaction from the use of their proprietary flour recipe to their automated doughnut making machines. They have chosen to target mainly markets with 100,000 households. They also were exploring smaller-sized stores for secondary markets.
This memo contains the answers to Questions 1 through 4 from the International Marketing assignment titled, "Krispy Kreme Doughnuts Going Global?" The questions are offset in the shaded area and the answers are provided below each question.
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
Nestle recognizes its position as a global leader in food and beverage company and the unique role it
Unilever’s Dove is part of the consumer goods company’s many brands which have historically lacked global identity amongst its many products. The lack of global identity resulted in issues such as diverse marketing standards, varied product development, and lack of brand recognition by consumers worldwide. Unilever’s solution to this problem was to group similar product lines under a few recognizable umbrella corporations. This initiative gave birth to the one of the most controversial marketing strategies in the history of business.
This report outlines and analyses the consumer decision process encountered when purchasing biscuits in relation to primary market research completed targeting one particular demographic of the possible market. The purpose of market research is to ensure that a businesses focus is on producing a product that meets the needs and wants of consumers, therefore it is essential to identify a potential target market and create a product that is able to be successful at all stages of the consumer decision cycle (Armstrong, Adam, Denize, Kotler, 2010, pp. 74-146). The report will explore the effects within the biscuit industry of various external factors influencing their products. Political and legal regulations, socio-cultural trends, economic shifts and the natural environment all impact a consumer’s decision making process and in turn the necessary actions of the businesses. Additionally, there are various demographic, geographic, behavioural and psychographic traits and trends of the target market that are inextricably linked to the circumstances within a marketplace and are analysed (Armstrong, Adam, Denize, Kotler, 2010, pp. 74-146).
Lack of brand awareness. Our company has a strong image in other countries. But as we introduce our product into our new market where we may not have competitors with similar products, we may have competition with a variety of related products. We will address this issue with heavy and aggressive promotion emphasizing in our products’ nutrition facts.
A Competitive Audit of Nestle's Milo. I plan to produce a SWOT analysis, PEST analysis and a Competitive Audit on Milo. This is because I’m going to need to produce a good analysis of the market place, if I intend to create the best marketing strategy. This is important because there are a range of options available when creating a marketing strategy. Without these analytical processes, I will not be able to identify, which strategy is appropriate.
This competitive advantage has been rendered sustainable as other players have found it difficult to catch up with the company's competitive strategy. In spite of this clear advantage, it was noted that the company faces some challenges being the world leader in soft drink distribution. The canning and bottling of the product which is done in many countries have now fallen into the hands of independent companies, thus it becomes hard for a given company to control the quality of the packaging
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