“Raisio Group And The Benecol Launch

469 Words2 Pages
Case Study 6: “Raisio Group and the Benecol launch” 1. What is Raisio’s strategy for commercializing its innovation regarding stanol ester and its cholesterol-reducing properties? Raisio wanted to pursue a self-sufficient strategy in which the stanol ester was only used in its own branded margarine, Benecol, which was produced in its own factories and marketed and distributed through its own sales and distribution system. The company realized that if it wanted to globalized it required food processing facilities, market knowledge, regulatory know-how, and distribution facilities that were quite beyond Ratio’s ability to provide. It also found out that for being able to supply the potential market it needed to produce stanol ester in all regions where Benecol products where manufactured and marketed. In order to cover these weak points Raisio: o Signed a cooperative agreement with McNeil (Johnson & Johnson), which had the capabilities needed to introduced Benecol to the world market and also possessed an extensive experience in approval procedures. This agreement gave McNeil the right to use the trademark and patents on the US, Canadian, and Mexican markets. Raisio received a payment for the assignment of these license right and also remunerations related to the operative development and royalties. With this agreement the Raisio Group will keep the entire production and will develop Benecol production and marketing in Finland. Global marketing will be carried out with a skilled and strong cooperation partner. o In terms of the production Raisio needed to expand the production areas so it set up a joint venture with UPM-kymmene; sign an agreement with the French company Les Derives Raisinques et Terpeniques; sign a letter of intentions with the American Westvaco Corporation in South Carolina; and a final agreement was sign with the Chilean company. 2. What
Open Document