222
Chapter 3 Developing Transnational Strategies: Building Layers of Competitive Advantage
of cross-functie
Turing, market
was managed
measured aga
Case 3-2
United Cereal: Lora Brill's
Eurobrand Challenge
Kalamazoo, Michigan, grocery store. UC, as it was
known in the industry, eventual diversified into
snack foods, dairy products, drink and beverages,
frozen foods, and baked goods.2010 UC was
a $9 billion business, but break; cereals still ac-
counted for one-third of its revenue and even more
also competer
resources,
Although
nication, ver
top manage
mundane br
ing copy ar
of its profits.
Christopher A. Bartlett and Carole Carlson
Lora Brill. United Cereal's European vice presi-
dent, was alone in her office early on a cold March
morning in 2010. I've given approval to a dozen
big product launches in my career,” she thought.
"But the implications that this one has for our
European strategy and organization make it by far
the most difficult I've had to make."
The decision related to Healthy Berry Crunch,
a new breakfast cereal that the French subsidiary
wanted to launch. But Europe's changing market
and competitive conditions had led Brill to con-
sider making this the company's first coordinated
multimarket Eurobrand launch. It was a possibility
that had surfaced some equally challenging orga-
nizational questions. "Well it's only 7 AM,” Brill
thought to herself, smiling. “I have until my lunch
appointment to decide!"
UC's Corporate Values, Policies and Practices
Thomas grew the company with strong set of val-
ues that endured through its history and "commit-
ment, diligence, and loyalty" were watchwords in
UC. As a result, it attracted people who wanted to
make a career with the company, and it promoted
dozen sign
the corpora
we attacht
senior exe
brand mar
While the
could co
anced de
invest in
petitors
away,
managers from within.
that wh
The B
was in
grew
tion
wher
tem
indt
United Cereal: Breakfast Cereal Pioneer
In 2010, United Cereal celebrated its 100th birth-
day. Established in 1910 by Jed Thomas, an im-
migrant grocer from England, the company's first
product was a packaged mix of cracked wheat,
rolled oats, and malt flakes that Thomas sold in his
exc
inc
an
Among its managers United Cereal instilled
a strong commitment to "The UC Way, a set of
time-tested policies, processes, and practices em
bedded in iconic company phrases. For example,
"Listen to the customer" was a deeply rooted be
lief that led UC to become a pioneer in the use of
consumer research and focus groups. "Spot the
trend, make the market" was another iconic phrase
reflecting the high value placed on extensive mar-
ket testing prior to launching new products. Finally,
the value of “Honoring the past while embrac-
ing the future” led UC to reject the conventional
wisdom that processed food brands had fixed life
cycles. Through continuous innovation in market-
ing and product development, many of its products
remained market leaders despite being more than
half a century old.
United Cereal had a well-earned reputation as
an innovator. During its 100-year history, its R&D
labs had secured more product and process patents
than any other competitor. The company had also
pioneered the "brand management” system in the
food industry, giving brand managers leadership
ac
С.
HBS Professor Christopher A. Bartlett and writer Carole Carlson
prepared this case solely as a basis for class discussion and not as an
endorsement, a source of primary data, or an illustration of effective
or ineffective management. This case, though based on real events,
is fictionalized, and any resemblance to actual persons or entities is
coincidental. There are occasional references to actual companies in
the narration.
Copyright © 2011 President and Fellows of Harvard College.
To order copies or request permission to reproduce materials, call
1-800-545-7685, write Harvard Business Publishing, Boston, MA
02163, or go to http://www.hbsp.harvard.edu. This publication may
not be digitized, photocopied, or otherwise reproduced, posted, or
transmitted, without the permission of Harvard Business School.
ca
222
Chapter 3 Developing Transnational Strategies: Building Layers of Competitive Advantage
of cross-functie
Turing, market
was managed
measured aga
Case 3-2
United Cereal: Lora Brill's
Eurobrand Challenge
Kalamazoo, Michigan, grocery store. UC, as it was
known in the industry, eventual diversified into
snack foods, dairy products, drink and beverages,
frozen foods, and baked goods.2010 UC was
a $9 billion business, but break; cereals still ac-
counted for one-third of its revenue and even more
also competer
resources,
Although
nication, ver
top manage
mundane br
ing copy ar
of its profits.
Christopher A. Bartlett and Carole Carlson
Lora Brill. United Cereal's European vice presi-
dent, was alone in her office early on a cold March
morning in 2010. I've given approval to a dozen
big product launches in my career,” she thought.
"But the implications that this one has for our
European strategy and organization make it by far
the most difficult I've had to make."
The decision related to Healthy Berry Crunch,
a new breakfast cereal that the French subsidiary
wanted to launch. But Europe's changing market
and competitive conditions had led Brill to con-
sider making this the company's first coordinated
multimarket Eurobrand launch. It was a possibility
that had surfaced some equally challenging orga-
nizational questions. "Well it's only 7 AM,” Brill
thought to herself, smiling. “I have until my lunch
appointment to decide!"
UC's Corporate Values, Policies and Practices
Thomas grew the company with strong set of val-
ues that endured through its history and "commit-
ment, diligence, and loyalty" were watchwords in
UC. As a result, it attracted people who wanted to
make a career with the company, and it promoted
dozen sign
the corpora
we attacht
senior exe
brand mar
While the
could co
anced de
invest in
petitors
away,
managers from within.
that wh
The B
was in
grew
tion
wher
tem
indt
United Cereal: Breakfast Cereal Pioneer
In 2010, United Cereal celebrated its 100th birth-
day. Established in 1910 by Jed Thomas, an im-
migrant grocer from England, the company's first
product was a packaged mix of cracked wheat,
rolled oats, and malt flakes that Thomas sold in his
exc
inc
an
Among its managers United Cereal instilled
a strong commitment to "The UC Way, a set of
time-tested policies, processes, and practices em
bedded in iconic company phrases. For example,
"Listen to the customer" was a deeply rooted be
lief that led UC to become a pioneer in the use of
consumer research and focus groups. "Spot the
trend, make the market" was another iconic phrase
reflecting the high value placed on extensive mar-
ket testing prior to launching new products. Finally,
the value of “Honoring the past while embrac-
ing the future” led UC to reject the conventional
wisdom that processed food brands had fixed life
cycles. Through continuous innovation in market-
ing and product development, many of its products
remained market leaders despite being more than
half a century old.
United Cereal had a well-earned reputation as
an innovator. During its 100-year history, its R&D
labs had secured more product and process patents
than any other competitor. The company had also
pioneered the "brand management” system in the
food industry, giving brand managers leadership
ac
С.
HBS Professor Christopher A. Bartlett and writer Carole Carlson
prepared this case solely as a basis for class discussion and not as an
endorsement, a source of primary data, or an illustration of effective
or ineffective management. This case, though based on real events,
is fictionalized, and any resemblance to actual persons or entities is
coincidental. There are occasional references to actual companies in
the narration.
Copyright © 2011 President and Fellows of Harvard College.
To order copies or request permission to reproduce materials, call
1-800-545-7685, write Harvard Business Publishing, Boston, MA
02163, or go to http://www.hbsp.harvard.edu. This publication may
not be digitized, photocopied, or otherwise reproduced, posted, or
transmitted, without the permission of Harvard Business School.
ca
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