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Raisio Group and the Benecol Launch Case Analysis Essay

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Raisio Group and the Benecol Launch Case Analysis

Park University

Benecol was launched in 1955 by the company Raisio in Finland (“Benecol,” 2010). Benecol has become a successful additive to multiple product lines due to its unique ingredient of plant stanol ester. The ingredient has been proven to reduce cholesterol levels and can easily be added to any food (Grant, 2010). Raisio, up until 1997, produced much of the plant stanol it needed and was self-sufficient in its exploitation of stanol ester technology (Grant, 2010). Raisio then made the decision to become part of Johnson & Johnson in order to gain global marketing, manufacturing, and distribution capabilities. Through
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Their success was based on its innovation to create technology to extract and produce the main ingredient in Benecol. By using a differentiation advantage which singled them out in a very specific market (foods that lower cholesterol) they were able to put plans in place to guarantee the success of the product. By merging with J&J, they create a large market for their product with multiple distribution capabilities. Because differentiation is only affected when consumers are made aware, Benecol was marketed widely to lower cholesterol and most people know it now as a “health food” (Grant, 2010). The process of innovation and competition is also very important in the position that Benecol is in its life cycle. The product began with short production runs, with limited specialized distribution channels in 1996. It then emerged into the growth stage of its life cycle when it partnered with J& J to create multiple product lines, mass production, and competition for distribution. Benecol seems to be in its Maturity stage at the present time, allowing for long production runs, and distributors carrying fewer lines, due to economy and less demand for high end food products (Grant, 2010). Because there are only a handful of companies that can create products with plant stanol ester, Benecol is a leader in its innovation for the technology. Benecol is also very well diversified, and it continues to create products that
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