Raisio group’s potential threats and opportunities

Jun 21st, 2015
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In this case analysis I will address issues facing the Raisio group’s potential threats and opportunities. I will also include suggestive actions I believe to be the best for the firm. Raisio’s new product Benecol margarine is a functional food product which helps lower the LDL-cholesterol value of humans by approximately fifteen percent.

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Benecol Case StudyIn this case analysis I will address issues facing the Raisio groups potential threats and opportunities. I will also include suggestive actions I believe to be the best for the firm. Raisios new product Benecol margarine is a functional food product which helps lower the LDL-cholesterol value of humans by approximately fifteen percent. This health argument is the main feature of the product. Raiso was under pressure from competitors, and needed to penetrate the market quickly. Introducing Benecol as a food would be a lengthy process. This led to the introduction of Benecol as a dietary supplement. The FDA was a threat to Raisio, stating the product was a food and not a dietary supplement. The U.S Food and Drug Administration regulate their name: food and drugs. They do not, however, deal with dietary supplements. Raisio cleverly devised a marketing plan around the FDA, by calling it a dietary supplement. It looks and tastes like margarine; but it is not food, it is a supplement. The FDA obviously disagrees with this form of thinking. The new margarine is controversial, not because of health concerns but because of the way it is being marketed. I believe the reason for the delay of Benecol is based on poor marketing decisions and strategy. To succeed, this product would have required a major change in the behavior of consumers. Benecol, a product to lower cholesterol, required eating a large quantity of margarine to benefit from the active ingredi

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