Raisio, Johnson & Johnson, & Benecol
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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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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.
Solution Preview
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 ...
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