United Cereal

Submitted By:
Group 1
Abhinav Agarwal
Alister Dsouza
Anandita Chakraborty
Souhardy Banerjee
Promiti Banerjee
Shreya Chaturvedi
Surabhi Sharma

The Dilemma

Europes 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

United Cereal Launch in France

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

Kellogs, thus competition can be
managed

United Cereal Launch via Eurobrand Strategy

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

Kellogs, thus competition can be
managed

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

Reorganize the
organizational Structure

Launch as a
Eurobrand