Beautific: Sanofi's Initiative to Enter the 'Beauty Drinks' Market with Coca-Cola
(6 pages of text)
Case (Pub Mat)
In 2012, Sanofi, a French pharmaceutical company, was considering forming a joint venture with the American soft drinks giant Coca-Cola to develop and commercialize a new line of beauty drinks, “Beautific,” which would provide health and beauty benefits to consumers. Rumours about the partnership in the press had been met with anger from Sanofi’s employees and skepticism from market analysts. It was unclear whether the initiative made sense from a strategic point of view for Sanofi. How different was the initiative from similar past projects that had been met with reluctance by consumers? What were the implications of internal dissent within Sanofi? Venturing into the beauty drinks business might signal a shift by Sanofi away from research and development-driven drugs. Would association with Coca-Cola, a company often decried for contributing to poor health, help or damage the reputation of a pharmaceutical company like Sanofi?
This case can be used in any strategic management or business policy course at the undergraduate (bachelor) or graduate (master) level. It is scalable and allows for both technical analysis and insightful discussions. The case may be used to illustrate the following strategic management concepts:
- Dynamics underlying the emergence of a new market.
- Strategic positioning in converging industries.
- Capacity building and capability acquisition.
- Rationale for strategic partnerships.
- Strategic alignment and fit.
France; USA, Large, 2012
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