Raisio Group and the Benecol Case Analysis
Raisio Group and the Benecol Case Analysis
Raisio Group and the Benecol Case Analysis
In 1939 in the town of Raisio, Finland The Raisio Group opened as a grain-milling company. Merging in 1987 with the vegetable oil factory located next to the milling plant the joint company became Raisio Tehtaat Oy Ab(). Through this joint venture a number of products were manufactured, sold locally and exported. However the company’s stand out product was introduced in 1995 in the form of a cholesterol-lowering margarine named Benecol. Stanol ester is the active ingredient that provides the lower cholesterol benefit. The success of Benecol and stanol ester would depend on Raisio’s ability to market and distribute the product worldwide.
Synopsis of Case
While studying the effects of rapeseed oil on blood cholesterol levels Raisio was presented with the idea to research plant sterols. Exploration into plant sterols proved valuable as it could be used to produce stanol ester. The Benecol launch in 1995 to the Finnish market stirred up curiosity around the world. Lacking the capabilities and resources to distribute internationally, in 1997 Raisio and Johnson & Johnson’s McNeil subsidiary entering into a licensing agreement to distribute Benecol to the U.S. Mexico and Canada. ()
Relevant Factual Information about the Problem or Decision the Organization Faced Raisio had created the knowledge of stanol ester, but faced a problem with their inability to maintain the demand needed in its current markets. The production of stanol ester from plant sterols was a challenging process and required new facilities be constructed to handle current and anticipated demand of Benecol. According to Grant, “The sales expectations for Benecol were high” (), so the stanol ester shortage had to be resolved before Benecol could be launched worldwide. ()
Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials
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Raisio Group and the Benecol Case Analysis
In 1939 in the town of Raisio, Finland The Raisio Group opened as a grain-milling company. Merging in 1987 with the vegetable oil factory located next to the milling plant the joint company became Raisio Tehtaat Oy Ab(). Through this joint venture a number of products were manufactured, sold locally and exported. However the company’s stand out product was introduced in 1995 in the form of a cholesterol-lowering margarine named Benecol. Stanol ester is the active ingredient that provides the lower cholesterol benefit. The success of Benecol and stanol ester would depend on Raisio’s ability to market and distribute the product worldwide.
Synopsis of Case
While studying the effects of rapeseed oil on blood cholesterol levels Raisio was presented with the idea to research plant sterols. Exploration into plant sterols proved valuable as it could be used to produce stanol ester. The Benecol launch in 1995 to the Finnish market stirred up curiosity around the world. Lacking the capabilities and resources to distribute internationally, in 1997 Raisio and Johnson & Johnson’s McNeil subsidiary entering into a licensing agreement to distribute Benecol to the U.S. Mexico and Canada. ()
Relevant Factual Information about the Problem or Decision the Organization Faced Raisio had created the knowledge of stanol ester, but faced a problem with their inability to maintain the demand needed in its current markets. The production of stanol ester from plant sterols was a challenging process and required new facilities be constructed to handle current and anticipated demand of Benecol. According to Grant, “The sales expectations for Benecol were high” (), so the stanol ester shortage had to be resolved before Benecol could be launched worldwide. ()
Explanation of Relevant Concepts, Theories and Applications Derived from Course Materials
Recommendations
Alternative
References: Grant, R. M. (2010). Cases to accompany Contemporary strategy analysis, seventh edition. Hoboken, N.J: Wiley.