LORA BRILL’S EUROBRAND CHALLENGE
Introduction.
The “United Cereal” case is focusing on European division of a giant multinational breakfast food company, which describes a launch decision for a new cereal product. As the case evolves, the decision has major strategic and organizational implications for Lora Brill, European VP. Lora Brill has been concerned with the decision of whether to make some major changes to a company with 100-year success history in order to push growth of the company’s potential to a completely new level. Lora Brill has been presented much of the information she needs to make a decision, but due to mixed results in past trials of a similar nature, Lora is not sure what to do. United Cereal is a pioneer in the use of research and focus groups. The company puts a very high value on extensive market testing prior to launching a new product. As the initial testing of the blueberry based cereal was not successful, Healthy Berry Crunch was not put through the normal testing to ensure complete customer acceptance.
Problem Identification.
United Cereal is an organization embodied with a strong set of core values. Throughout its 100-year history starting back in 1910 the company’s management believed in commitment, diligence and loyalty; attracted people to work for the company and promoted managers from within. Their managers are committed to “The UC Way” and certain deeply rooted beliefs like:
• “Listen to the customer”- that led the company to pioneer the use of research and focus groups.
• “Spot the trend, make the market”- led the company to place high value on extensive market testing prior to launching new products.
• “Honoring the past and embracing the future”-gave UC a high regard for product development and innovation in marketing.
To be able to answer whether the Eurobrand cereal is truly viable it is necessary at first to make clear what the cereal market in Europe looks like. The $7 billion cereal market