Raisio Group And The Benecol Launch Case Study

Raisio focusing on the Benecol product development

In November 2014, Raisio completed an acquisition that expanded the company's home markets for cholesterol-lowering Benecol products. Raisio is responsible for the sales and marketing of Benecol products in Finland, Hong Kong, Portugal and Poland and now in the UK, Ireland and Belgium.

The acquisition of Benecol business from the affiliates of Johnson & Johnson is in line with Raisio's HEM strategy. HEM stands for Health, Ecology and Mobile food. In December 2014, all Benecol operations were combined into one entity, which means that the licensing and partner cooperation for plant stanol ester, a Benecol product ingredient, as well as the sales and marketing of Benecol products in home markets are included in the same unit.

Strong focus on marketing and novelties

Raisio is focusing on the sales and marketing of Benecol products and product range development in its home markets. The UK and Poland are the largest markets of Raisio's home markets for Benecol products. In other Benecol's home markets, Raisio develops and creates novelties together with its licensing partners.

Sales growth continued in Benecol minidrinks

Consumer habits and the most popular Benecol products vary from country to country. In several markets, Benecol minidrinks have already for years been a growing product group. In Finland, sales are showing good growth in Benecol yogurts launched in 2014. Last year, Benecol Plus minidrinks were launched in the UK. In addition to cholesterol-lowering effect, the minidrinks contain vitamin B or calcium.

Raisio seeks growth for Benecol in two directions: organic growth in the existing markets and new market entry opportunities, particularly in Asia.

Raisio, Johnson & Johnson, & Benecol

Please, I really need your help. Can you please help me with this case study? Also, I attached the whole case study with some charts included. Please, I had to make the charts small to post it, so extend the charts larger so you could view it. I also add bullets to show different sections. Thanks in advance and I truly appreciate it.

Please help me write a response about Raisio and the Benecol Launch. In this paper, address the following questions concerning Raisio's strategy in launching the new product, Benecol:

• What is Raisio's initial strategy for launching Benecol?
• What are the risks associated with the partnership with Johnson & Johnson?
• What strategy do you think they should employ after the dissolution of the J&J partnership (your recommendations)?

You are not required to use outside resources for this assignment. If you choose to use any resources besides your text, you will need to include citations and references in APA format, but if you choose to use just what you have learned from your text readings this week in response to the case, you will not need to include those references.

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Raisio initially launched its cholesterol-lowering margarine at an extremely high price, compared to the rest of the market, and only in Finland. Despite this pricing, due to the product's unique stanol ester formula, the company was able to "satisfy about (only) two-thirds of the domestic demand." Since the product was the only cholesterol-lowering margarine currently in Finland, Raisio was able to set a high prices and maintain control through vertical integration. Raisio allowed its stanol ester to be sold only in its' branded margarine, Benecol, and the product was produced only in the company's own production facilities and distributed and marketing only through the company's own sale and distribution system.
Raisio realized that its' lead in the market with cholesterol lowering margarine was likely to be short-term, as other companies were likely to find "alternative approaches" and its' patents would only allow the company a few years lead lime. Raisio needed to act quickly to increase production, expand the use of stanol ester in a variety of health-food products, increase production and ...

Solution Summary

This detailed solution involves the case study with Raisio, Benecol margarine, and Johnson & Johnson. It answers the following questions:
• What is Raisio's initial strategy for launching Benecol?
• What are the risks associated with the partnership with Johnson & Johnson?
• What strategy do you think they should employ after the dissolution of the J&J partnership (your recommendations)?
and includes an APA formatted reference.

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