Caso: Sara Lee´s Légss: What Entry Strategy

Universidad Autónoma del Noreste - Postgrado
Mercados Internacionales - Lic. Alex E. Gómez Conyers

Case No. 9 Sara Lee’s Léggs : What Entry Strategy?

Sara Lee Corporation, whose products range from the L’Eggs and Hanes hosiery lines to a vast array of food lines, has been concerned recently with some key decisions. It views the emerging (1992) single European marketplace as a tremendous marketing opportunity.
In Sara Lee’s experience, many of the same products, particularly the some brand names, don’t appeal to all European markets. Brand names such as Sara Lee, Hanes, and Léggs, which are well-known in the United States, have little meaning in Europe. Hundreds of European companies make, import, or ship knitwear and hosiery-related products.
What is the future in Europe for Léggs? Company executives are concerned about the cultural and language differences. They view Europe as a heterogeneous rather than as a homogeneous market, and they believe it ludicrous to think Europe can be blanketed with a single brand name. In Europe Sara Lee is planning to use Dim, a hot hosiery brand in France, to sell throughout Europe, but the company has no substantial hosiery production capacity in Europe.

Questions

1. Discuss how (if at all) Sara Lee should enter the European market with Léggs.

2. Which entry strategy would be most appropriate, and why? Discuss in detail and state your assumptions clearly.