Should Healthy Berry become a Eurobrand?
Lora Brill has been saddled with the decision of whether to make some big changes to a long-term successful company in order to push the growth potential of the company to a whole new level. In the present competitive environment, it is important to identify and jump on the first sign of a growth opportunity for a company. The cereal industry is highly competitive and it is important to be a forerunner in innovation. United Cereal faces a lot of competition in the increasingly competitive cereal market in Europe. The key issues that United Cereal faces in launching Healthy Berry as a Eurobrand are as follows
* Competition from Kellogg’s and Cereal Partners are ahead of United Cereal in coordinating European strategy and present a huge risk.
* With the present organizational structure and country specific focus, it adds huge costs to the development and launch of a new product. This has stalled the release of new products
* Weaker European economies will further restrict the launch of Healthy Berry Crunch in other subsidiaries
* The launch of Healthy Berry will cost upwards of $20 million and will need approvals from the parent operations in Kalamazoo.
* Brill’s proposed organizational changes to create Eurobrand teams will be perceived as a direct challenge to the country manager’s local authority levels.
* Concern about the effectiveness due to the team size (upwards of 12).
The market structures and taste differ to a large extend in different European countries. The wounds of the “Podcafe” and the frozen fruit juice line debacle are still fresh in the minds of Corporate in Kalamazoo. Lora Brill had an uphill task of balancing the company’s interests with the urge to become a market mover. With the increasing competition, the Eurobrand issue is very urgent and important as it can potentially decide the future direction of the hot and ready to eat cereal market segment for...