Professional Documents
Culture Documents
Group Members:
Kamalanathan Perisamy 820330
Rajendiraperasad Muniam 820309
Shubashini Mathyalingam 820283
Lilambikha Raja Vikraman Varman 820275
Overview
Characters:Bert Clark (Vice President & General
Manager)
Srikant Thipa (Director of Simple Meal
Unit)
Claire Mackey, (Director of Finance and
Planning)
Anna Chong (Chief Innovation Officer)
Bob Pugh (Director of Sales & Marketing)
Introduction
Brannigan Foods Soup Division 40% of the firms revenue.
Steady decline (3 years) divisions of sales, market share,
and profitability
Reverse the decline - increase
the growth back to 3-4%.
Each Managers suggest
different plan
1. Investing in the growing
sectors
2. Acquiring product lines,
3. Investing in organic
growth,
Situational
Analysis
5 Cs
Analysis
COMPANY
100 year legacy
RTE(71%), Dry Soups, Healthy
Soups, Fast and simple meals
Cash cow- 40% of total sales
Acquiring & integrating Anabelles
products into Brannigans product
line
Increasing market share by brand
awareness
COMPETITOR
Major competitors - General Mills
Small competitors - Roaring Cajun
Food
- Red Dragon Food
- Brothers Gourmet
Other competitors - Private labelled
soups which increases the sales to 5%
Less shelf space for Brannigan
products
CUSTOMER
Current market: Baby boomers
Targeted group: Young
generation, young & working
mothers
Trends: Innovation of new
flavours
COLLABORATORS
Decrease of 3% in Brannigans
Shelf Space
Must ensure that retailer
goodwill doesnt fall
Retailers would appreciate price
cuts that may boost sales
Supermarkets sold 62.9% of the
category
CONTEXT
Micro: 1) Political and
regulations environment
2) Economics
environment
3) Social and cultural
environment
4) Technological
environment
Baby boomers generation is
becoming older
Society, trend, fashion: Healthy
SWOT Analysis
STRENGTH
-100 years in line:
market leader in high
market share
- high brand
awareness with 14%
of sales
-RTE soups are still
considered as staple
food in the United
States
OPPORTUNITY
-New product
innovation to increase
sales
-Liaise with retailers
to generate
continuous solution to
obtain a win-win
situation
WEAKNESS
-Sales decline in past 3
years
-Failure in identifying
society behavior and
trend
-No integration
between
teams( Finance,
Marketing& Sales,
R&D, Simple Meal
Unit) due to lack of
THREATcommunication
-Private labelled
products grows, which
reduces Brannigans
shelf space availability
-New product from
various competitors
-Gap between product
offered and consumer
needs
Objective
To increase the profit and
market share back to 3-4%
Suggestion
2011
2012
7979
2013
Forecast
8230
2013
Tipha
8230
7330
3034
1669
425
2973
1635
416
2913
1602
408
2954
1625
426
625
315
627
295
600
303
620
283
189
178
178
188*
2011
7330
3034
1669
425
2012
7979
2973
1635
416
2013
8230
2913
1602
408
2014
2856
1570
422
2015
2799
1539
422
2016
2743
1509
423
625
315
627
295
600
311
600
273
588
260
576
247
189
178
184
184
184
185
2011
7330
2012
7979
2013
8230
2014
2015
3034
2973
2913
2856
2799
Less:
1669
1635
1602
1570
1539
425
416
427
423
419
625
627
612
600
588
Net Earning
315
295
287
287
281
189
178
189
185
181
2011
2012
2013
2014
2015
7330
7979
8230
3034
2973
3211
3398
3596
Less:
1669
1635
1766
1869
1978
425
416
447
447
447
625
627
642
714
755
Net Earning
315
295
356
369
416
189
178
209
209
209
Option 3
-The leader position in
the market obliges
Brannigan to invest in
R&D due to the
changing trends and
needs of the market.
-to invest in
marketing to make
the RTE soups strong
in the market.
Option 4
-reinforce the cash
cow of the division
which are the Ready
to Eat Soups.
-keep financing the
question mark
products, which will
become stars and
future cash cows
with the way the
This mix of both strategies certifies the companys
market is growing.
short term goals and envisions long-term profits with
the investment made, since it stretches the life cycle of
the RTE soups and boosts growth in the early stages of
Implementation
Increase R&D budget from $14M to $19M to develop
prototypes
Invest heavily in Marketing testing and launch new
products
Launch Deluxe Gourmet Deli line with few flavors
Launch Dry Soup line with Advertising few flavors
Raise Retailer margin for new lines by 5% to gain shelf
space for new products
Invest in Heart Healthy Promotion
Marketing Mix
4 Ps
PRODUCT
Implementation of Umbrella brand of Brannigans
soups division which gives emotional values to the
products and brands targeted different market
segment
Various product range that provides various benefits
Positioning Statement:
For people who enjoy health, easy to cook, Savoury
food, Brannigans soup is a brand of soups that offers
convenient varied, trustworthy and very good quality
soups that loves customers to enjoy meals while
taking care of their health and to save time at very
competitive prices based on its experience as leader
in the category and its innovative products.
PLACE
Distribution are major concern
Entries of private labelled
soups with constant growth of
5% due to price increase
3% shelf space reduced
PRICE
Maintain the price of RTE
soups
Tag higher price for Deli
soups, this will create a
Compromise Effect to
consumers by building an
impression of high quality
products
Shift consumers preference
by giving superiority of Deli
soup.
PROMOTION
-Pull strategy is used on Mass
Media and Digital for
discounts, offers and
promotions
-Sales Force:
:- must be reorganized to
increase 4% sales earnings per
year
1)A 20-80 division( 20%
farmers-80% hunters) to
increase the search and
acquisition of new retail
partners
Salaries:
1)Mix of fixed and increased
percentage of the variable part
2) Sales force teams will be
MARKET
Fragmentation and
growing new trends
has caused a change
in the strategy
MISSION
Reposition the brand
as an innovation
company that owns
the leadership by
increasing the life
quality of its
MEASUREMENT
consumers.
Digital marketing
impacts
MEDIA
TV ad and social
media
MONEY
$170 million budget for
marketing expenses of
year 2013
MESSAGE
Create
emotional
value
Objective
Increase Sales
Engage Consumers
Offer Value
Improve Brand
Image
Company website
Adv & promotiondigital sites
Social networkFacebook. Twitter,
Youtube
Conclusion
If investment is done in core segments of Brannigan Foods as
suggested by Bob Pugh, net earnings increase up to 399 million or
3.05% growth year on year. The sales would increase up to 3186
million by 2014.
Being market leader in Ready to Eat (RTE) segment Brannigan
should look forward to maximize profit on maturing product.
Clark also has to decide on a long term strategy. Look to cater to
customer preferences by developing new products internally.
Additional expenditure of around 5 million in R & D and also
additional promotional costs for the new products, the costs can be
met by the increased profits due to the increased investment in the
core products.
This would also reinforce Brannigans image as an innovator and
help increase its brand equity among customers. As such, Clark
would need to adopt both Option 3 and Option 4 to successfully
satisfy all of his decision criteria.
Thank You