Raisio Group and the Benecol Launch

Raisio Group and the Benecol Launch

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Raisio Group and the Benecol Launch

Introduction

In this detailed case study, I endeavored to address the potential opportunities and threats facing Raisio group. The study also embarked on analyzing those threats on order to come up with suggestive recommendations that I believe will assists the firm. Benecol, Raisio’s new margarine product is more of a functional food product that the firm guarantees will effectively lower the amount of human cholesterol (LDL) by an approximated value of 15 percent (Raisio.com, 11). This argumentative idea on health is the main product feature. Raisio was undergoing a lot of pressure in its industry from the fierce competition and therefore needed a quick market penetration. However, introducing Benecol as food into the market would prove to be a lengthy process. The firm’s management therefore opted to introduce it as a dietary product. The FDA attempted to threaten Raisio’s move by stating that the Benecol product was not a dietary supplement but food (Grant, 2010). Raisio’s management attempted to device a brilliant strategy in order to combat these threats. However, these attempts would later prove futile, as the management did not fully analyze the situation. Any decisions made in a business venture should be thoroughly thought through and fully analyzed.

Case Synopsis   

In a clever manner, Raisio devised a strategy around the FDA by branding their Benecol as a supplementary product. They argued that their product might be similar to margarine, but the composition counts as supplementary product. The FDA in turn would not agree with this argument. They thought that Raisio’s new product was not only controversial, but was also a health concern as well as the implemented marketing ways (Raisio.com, 21). It is my belief that the reason behind Benecol’s delay can be attributed to poor marketing methods and strategies. In

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