United Cereal Case Study

1864 Words8 Pages
1. As Lora Brill, United's European VP, would you authorize Jean-Luc Michel's request to launch the "Healthy Berry Crunch" brand in France? Is yes, for what reasons? If no, on what basis? Central to Lora Brill’s dilemma of whether to launch “Healthy Berry Crunch” in France is the potential gain from the first-mover advantage by launching the product now versus increased market visibility and certainly by launching the product later after proper market research. Adding to the pressure to make a quick decision is the rumor that Cereal Partners is planning to launch Berry Burst Cheerios in France, a move that could potentially threaten United Cereal’s position as the first mover in the market. In order to make an informed decision on this…show more content…
From the above analysis, it seems that the merits of delaying the product launch far outweighs the benefits of taking immediate action. As such, it is advisable that United Cereal delays the product launch until conclusive market results have been established. Although it may be advantageous to be the first in the market, much could also be gained by careful preparations, which would allow the company to learn more about market conditions and better prepare for such a strategic market entry. In line with the company’s values, United Cereal should balance deliberate cautiousness with a willingness to invest in new products. To launch the product now would tip this balance towards unnecessary risk-taking that could cost the company millions. 2. What is your assessment of Ms. Brill's Eurobrand proposals? Should she authorize the launch of Healthy Berry Crunch as the Eurobrand? What concerns do you have with decision-- and how would you resolve them? The Eurobrand proposal was drafted up in response to growing price and promotion pressure from competitors, forcing United Cereal to develop a plan to lower costs and implement more efficient processes. While I agree the company needs to progress towards a more Centralized strategy in order to cut costs and stay competitive in the market, I am doubtful that the strategy would yield favorable results in all areas of the product development process. Although coordinated market approaches can work well
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