Raisio is preparing to launch a new product, Benecol, to the global market. Benecol is a nutraceutical that reduces LDL cholesterol when ingested on a daily basis. The product has been successful in the company’s home country of Finland. Raisio is building on this success by entering into a marketing agreement with Johnson & Johnson's McNeil Consumer Products Group.
There are barriers to global marketing that Raisio must overcome, however. Benecol is under fire from the Food & Drug Administration (FDA). The FDA has regulatory objections, as this product is difficult to classify as a food, dietary supplement, or pharmaceutical. Introduction into the United States may not be in the best interests of shareholders, as the market is new to valuing the prospects for nutraceuticals. (Moffet, 1998)
Discussion
This launch, like any product launch, is a critical time for Raisio. The success of Benecol globally is key to the company’s survival. In order to penetrate the global market there is need for capital, risk evaluation, and a determination of a reward system for investors. The global launch of a product is a process aimed at building sales momentum. Steps include matching product capabilities to market needs, clear positioning and messaging, setting clear launch goals, utilizing the power of leverage, priming the pump, and timing the launch to maximize sales.
Global launch must incorporate consideration of several important factors that need to be considered before rolling out the product in the global market. Positioning is the first, analyzing the value stream to determine optimal placement for the product. Next, international licensing is required for global business, and this can be best handled through partnership that will facilitate market penetration.
