Benecol and the Raisio Launch

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Running Head: CASE ANALYSIS: RAISIO GROUP AND THE BENECOL LAUNCH

CASE ANALYSIS: RAISIO GROUP AND THE BENECOL LAUNCH

LARA PORTERFIELD

OTTAWA UNIVERSITY

AUGUST 1, 2014

Raisio is a forerunner in healthy, ecological snacks with leading brands and an active developer of the sustainable food chain based in Raisio, Finland. Raisio has created a product additive known for lowering cholesterol levels, developed from plant sterol. From its earliest days, Raisio had shown considerable entrepreneurial initiative and technical ingenuity (Grant, 2013). Raisio's aim is to grow to become the leading provider of healthy and ecological snacks in Northern Europe (Raisio). The launch of Benecol, its cholesterol-lowering margarine, at the end of 1995 had attracted the interest of food processors and supermarket groups throughout the world and fueled a surge of investor interest (Grant, 2013).

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Benecol was launched in supermarkets and the product flew off the shelves as quickly as it appeared. Raisio was forced to institute a system of rationing supplies to its distributors (Grant, 2013). The public response to this product was overwhelming and it was soon realized that this product required its own manufacturing unit. A proper strategy must be developed to ensure sustainable success.

1- Raisio’s initial strategy during the launch of Benecol was to first file for several protective patents to try and stay ahead of potential competition

2- The second initiative was to move the production of Benecol into its own unit within a new division. The Benecol unit would be responsible for developing all aspects of the business. It was responsible for acquiring plant sterol, producing

plant stanol ester, managing international publicity for the project, and concluding research.

3- Raisio’s next strategic move was to negotiate an increase supply of plant sterol.

4- It was soon obvious that production of the plant sterol needed...