Q.1.What is a Multi-unit Restaurant (MuR) Business? How big is it? Is it a consolidated or
fragmented industry? What are its economics?
Q.2.Identify MuR critical success factors in the US and then discuss potential institutional
voids in China
Q.3.Why did Levendary decide to enter the China Market? How did its US foundation
match against China Market needs? (compare US Vs China market in terms of customers
and operations)
Q.4.What are the key issues facing Mia Foster and what would you recommend her to
address those issues?
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
