BU491 Lecture Notes - Lecture 7: Breakfast Cereal, Brand Management, Cereal Partners Worldwide
Document Summary
Problem: healthy berry crunch, new breakfast cereal part of the french subsidiary. Europe has unstable markets that made brill unsure of making this the first multimarket eurobrand launch. Started brand management managers leadership of cross-functional teams . Each brand generated its own profits and was compared to other brands: reduced horizontal communication but more vertical. Us industry 30 companies with revenues of 12 billion. Five players accounted for 80 % of sales. There are two categories in the market: hot, ready to eat. More than 10% of revenues were allocated to marketing. Profitability depended on people"s ability to manage costs and maximize retail shelf space. Large companies dominated in: purchasing, distribution, marketing. Us cereal companies found growth in expansions to new offshore markets. Strategy was to acquire an establish companies local market distribution and implement us product lines. Varied around countries because of existing breakfast traditions. Varied with countries regarding the supermarkets existing in each country.
