United Cereal

United Cereal: Lora Brill’s Eurobrand Challenge

United Cereal (UC) was established in 1910 by Jed Thomas and sold a variety of products such as snack foods, dairy products, drinks and beverages, frozen foods, and baked goods. Breakfast cereals accounted for one-third of its revenues and even more of its profits. The French subsidiary now wants to launch a new breakfast cereal, Healthy Berry Crunch. However, due to Europe’s changing market and competitive conditions, Lora Brill, UC’s European vice president, faces the challenge of deciding whether or not it is in UC’s best interest to launch the new cereal in the European market.

As Lora Brill, I would authorize the request to launch Healthy Berry Crunch in France due to several factors. Firstly, there has been a growing interest in France for healthy breakfast foods. The testing of the blueberry -based cereal extension of Healthy Crunch in six French cities resulted in data indicating a 64% intention to repurchase, which according to Jean-Luc Michel, was very promising. In addition, although Kellogg’s Special K with Strawberries had already been launched in France in 2006, it has been the only competitive product in this French market segment in the last four years. Since there are few competitors in this market, United Cereal will have a first mover advantage. Furthermore, implementing coordinated European product market strategies by launching it under the Eurobrand, product development and marketing costs would be cut by 10% to 15% over the next three years.

Brill’s Eurobrand proposals would create a coordinated European wide strategy towards product marketing. By standardizing products along with their marketing, advertising and promotions, there is potential in increasing sales as consumer tastes are converging and local customs are disappearing. Brill should authorize the launch of Healthy Berry Crunch as the Eurobrand because it will allow UC to cut their production costs over the next few years and...