United Cereal: Healthy Berry Crunch Porter Analysis Health Berry
Crunch: A Eurobrand? Make It A Eurobrand? Make It A Standardized
Product? Try it as a standardized product for France
Local customization has caused problems
sales, general and administrative (SG&A) expenses were 25% higher
than in the U.S. operations
Pace of major new production introductions has decreased
Example: Wake Up!, Mother Hubbard’s Pies
Managed by the country manager (CM)
Will not threaten their sense of authority
Have someone they can report to with question and concerns
Test it in France in the beginning and then consider spreading it through
the rest of Europe
Too expensive
$20 million in France alone
Other markets are not ready
Italy: no shelf space
Spain: still recovering from recession
Only have tests for France
64% intention to repurchase, focus groups
Stick to UC core values
Launch The Product? Do Not Launch Product? Decision
(Recommendation) Indicators Of Success Questions? Thank you! Product
Launch Andrea Young, Patrick Murray, Hristiyan Hristov, Michael
Piacentini Cereal market in Europe becoming more competitive over
past decade
Increased interest in natural and healthy foods
CM’s prefer product extensions over product launch
Ability to enter market Arst in France before Kellogg or Cereal Partners
If Eurobrand concept used, product development and marketing costs
would be cut by 10-15% over the next three years
Initial full-scale test failed to reach 60% approval waiting for “intention
to repurchase”
Unable to schedule 2nd full scale test for assurance
$20M to launch product in France
Rivals:
Kellogg’s, Cereal Partners Worldwide, Weetabix
Kellogg has an EU share of 26%
DiversiAed into other categories
Moderate Degree of rivalry
Substitutes:
Traditional foods
Typical breakfast: coGee and pastry, bread and fruit jam, fruit, cereal
