United Cereal

Submitted By: Group 1Abhinav Agarwal Alister D’souzaAnandita ChakrabortySouhardy BanerjeePromiti Banerjee Shreya Chaturvedi Surabhi Sharma

The Dilemma

• Europe’s changing market and competitive conditions• Market growth slowed to les than 1% annually• Sales, General and Administrative expenses 25% higher than in US• Wide differences in product portfolios and market strategies across Europe• Reluctance for standardization by CMs

What is a Eurobrand ?

• Country managers aim is to maximize profit and strong penetration in their markets• Existing structure led to high costs and lack of coordination in product strategy acroos

Europe• Standardized product and marketing strategy across Europe• Regional VPs would have additional responsibilities of coordinating Europewide for

several products• For the first time, European perspective to product strategy• Eurobrand teams to develop Eurobrand brand strategies• Eurobrand teams would decide product formulation, market positioning, packaging,

advertising, pricing and promotions• Eurobrand teams would also concentrate on reducing costs

In Favor Against

Youth are oriented towards healthy food items

Unfavorable response of 30% survey takers to the form and consistency of the product

Product extensions preferred over new product launch

Launching in France would involve budget constraints as evident from the budget approval of the division VP

Only competitor right now is Kellog’s, thus competition can be managed

United Cereal – Launch in France

In Favor Against

Saving by 10-15% due to product development and marketing cost

Loss of UC way

Gives UC a strong market penetration Cost is much higher then the budget

Makes UC a truly European entity Creates future hurdles for Eurobrands to succeed as European strategy

Only competitor right now is Kellog’s, thus competition can be managed

United Cereal – Launch via Eurobrand Strategy

Recommendations

• Launch the product in France because – • Already tested favorable for the launch • Net Profit margin 13% • Yearly sales 388Million dollar • 64% repurchase rate • Smaller risk

• Conduct test marketing in different European countries• Find out positive outcomes of the following parameters

• Repurchase Rate • In the countries with favorable results are obtained, launch the product in those countries

Launch Healthy Berry Crunch in France

Conduct business analysis and test

marketing in European countries

Launch as a Eurobrand

Reorganize the organizational Structure