...Brannigan Foods Case Study Exercise 1. BRANNIGAN FOODS STRATEGIC MARKETING PLANNING IE Business School Juan Manuel Restrepo Davies Mª Concepción Aragonés Cabeza 2. IE Business School PROBLEM STATEMENT Bert Clark, vice-‐president and general manager of Brannigan Food Soup’s Division, has to decide which of the four alternative plans his team members have proposed should be implemented in order to reverse the industry’s steady decline as well as the division’s sales, market share, and profitability decrease for the last three years. He has to move the division’s growth back to a 3-‐4% at the end of the fiscal year. ANALYSIS OF THE SITUATION Company: Brannigan is a company that has been operating for over 100 years. It has a Soup Division which has experienced a decrease in its profitability and needs to create a new strategy to stop the declining sales and market share it has been experiencing. It is important to highlight that the soup division is the cash cow (according to the Boston Consulting Group product matrix) of Brannigan Foods, reaching up to 40% of the company’s total sales. The most profitable product category this division has is the Ready to Eat ...
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...Final Assignment Chris Nosko Marketing Strategy In this final we are going to investigate two of the possible plans as detailed in the Brannigan's soup case (#5-913-546). Please answer the questions, and also provide associated spreadsheet tables and work (for your final output). Read the whole case but pay special attention to plans 2 and 4 as they will be the focus of the questions. Plan 4: Invest in the Core 1) Assume that sales would go down by 4% for RTE cans in 2013 in the absence of this plan. Compute that counterfactual sales (quantities and revenue) and profit. 2) Compute profit under the lower and upper bound assumptions on sales increases, including the increased marketing costs. 3) What minimum quantity do you need to sell to make the plan break even? For the next set of questions, use the quantity you computed in question 3. 4) Compute the change in demand due to his plan. 5) Compute the implied retail elasticity assuming a retail margin of 35% and perfect pass through of the price change. 6) Imagine that the ad campaign was responsible for 20% of the increased sales. Compute the same price elasticity as in question 5. 7) Do you want to proceed with the advertising campaign? 8) Would you want to proceed with mondernizing the plant? 9) Which parts of this plan seem to make sense or not make sense to you? What are the crucial numbers in determining this and are there other statements in the case that might inform whether these numbers seem reasonable or not? 10) What...
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...Brannigan Foods – Case Study 1 Brannigan Foods is the leading brand in the soup industry, but has been experiencing declines in every aspect of their division. The primary problem is that Brannigan Foods sales, market share, and profitability has slipped in the last three years. One of the only reasons they have been able to keep up their sales is due to them increasing their product prices, resulting in a plateau of sales. The secondary problem consists of Brannigan foods not reaching out to other target markets besides the Baby Boomers (1946-1964) and they are completely missing the Millennials (19-30). There are a few conventional alternatives that would work best for Brannigan Foods, the first being from Srikant Tipha, Director of the Simple Meals unit consists of reinforcing awareness of the new items and introducing trial by upping the advertising investment in Fast & Simple soup meals and the Heart Healthy soup line, providing promotional couponing and sampling of the hot new flavors in the dry mix of Gazpacho and Teriyaki Beef Fast & Simple meal, which will help Brannigan break into and grow in the Asian soups category. The last part of her plan is to continue to promote dry soups even if they will cannibalize RTE soups. Another alternative comes from Bob Pugh, VP Sales and Marketing of Brannigan Soups. He believes a good alternative would be to take a five cent price-per-can cut on the core ready-to-eat wet soups, increase the A&P budget by $20MM to restore...
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...Brannigan foods had been a major player in the food industry, but with the recent downward trends in sales and profit margins, a rapid change in the operations and management of the company is needed. As the division head, finding a strategy, which will not only increase sales and profit margins but also reduces the risk levels in the company is my top priority. With the help of the four division managers, I am confident that I will be able to implement an effective and successful strategy for the company. The case presented by Claire Mackey one of the division managers will be of great contribution to the strategy that the firm will use to rebuild its sales and profit margins. Mackey’s report focuses on the problems that Brannigan is facing currently and specifically the declining sales volume and lower profits that the company has been recording for the past three years. Mackey is confident that by handling the current customer desires for healthier and more convenient products, the company will be in a position to increase its sales volume. His report also focuses on how the company can manage to penetrate other markets, which it has not managed to do for the past three years as well as improve the performance of the low performing markets like Southeast Asia and China. Since the report focused on the actual challenges the firm is experiencing now, it will not only be a good consideration before making the final decision on the implementation but will also assist in making...
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...Brannigan Foods: Strategic Marketing Planning Advanced Marketing Management October 26, 2014 Table of Contents Introduction………………………………………………………………………………………..3 Soup Industry……………………………………………………………………………………...3 Brannigan Foods…………………………………………………………………………………..5 Competition………………………………………………………………………………………..7 Buyer Behavior……………………………………………………………………………………8 Segment Analysis………………………………………………………………………………….9 SWOT Analysis………………………………………………………………………………….11 Product Life Cycle……………………………………………………………………………….12 Growth-Share Matrix…………………………………………………………………………….14 Srikant Tipha, Category Manager - Simple Meals, “Heart Healthy” Soups Dry Soups………...15 Claire Mackey, Director of Finance and Planning……………………………………………….17 Anna Chong, Chief Innovation Officer………………………………………………………….20 Bob Pugh, VP Sales and Marketing……………………………………………………………...21 Ansoff Matrix…………………………………………………………………………………….22 Exhibits………………………………………………………………………………………..…25 References………………………………………………………………………………………..35 Introduction The following is an analysis of Brannigan Foods’ Soup Division. The analysis begins by giving the overview of the industry and Brannigan’s position within the industry. Next, a thorough breakdown of all pertinent factors is conducted to highlight the main issues regarding the soup division. The analysis concludes with a focused statement presenting Brannigan’s most significant problem. The Soup Industry Overall soup consumption in the U.S. is on the decline....
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...MGMT 555 | | Strategic Marketing Planning | Khalid S. Mizyed 2-5-2015 | Bert Clark, is the VP and general manager of Brannigan Food Soup’s Division. The responsibility of deciding which of the four options his team members have proposed is now in his hands. His choice should be implemented to reverse the industry’s steady decline as well as his division’s sales, market share, and profitability decrease in the last 3 years. His ultimate goal is to generate a 3-4% growth rate, for the year. Situation Analysis SWAT Analysis Strengths * Current market leader with highest market share. * 100 year old brand with high brand awareness. Weaknesses * Sales has been decreasing for the past 3 years. Opportunities * Owns new products that are in line with customer demand and favor. * Generate creative solutions with retailers to create win-win situation. Threats * Private label growth, and retailers demand for retail space. * Lack of effective targeting, segmentation and positioning has caused a big gap between product offering and consumer demand. 5 C's Analysis Company * Soup division makes up 40% of total sales. * RTE soups are highest in this category with 71% of total revenues. * Broke into the fast meal category by acquiring Anabelle. Customers * Baby Boomers are the largest and most loyal segment, with evolving preferences and a higher demand towards low healthier low sodium based products. * This added...
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...Case 1 Brannigan Foods Kate Wheaton Bert Clark is faced with a very serious problem and has enlisted the help of several counterparts of Brannigan Foods’s Soup Division. The soup industry has been declining for several years, and directly affecting the Brannigan division for the last three. Bert has to determine, of the four plans he received, which is the best in order to move growth back to 3-4%. The Environment: Major consumer trends affecting the industry are the concern for health and obesity. The inclining age of the most brand-loyal segment of soup consumers, the baby boomers, are seeking diets with low sodium. It’s crucial to maintain this large market segment, luckily the Heart Healthy line is positioned well with the baby boomers. Conversely, younger consumers (millennials) are needed to ensure vitality in the long run. One of the most critical aspiring trends among consumers are that of professionals and working mothers seeking fast, simple meals. The acquisition of Annabelle’s Foods helps this segment with growing sales of 12% per year. Another trend is the tastes of consumers. New flavors such as Mexican and Asian soups are gaining way in the division. An opportunity to procure these flavors is to acquire a new product line; Roarin’ Cajun Foods would secure the Mexican style soup and Red Dragon would lock down Asian tastes. If not acquired, these brands pose a threat to us in addition to Brothers Gourmet and others in the soup market. The Industry: Brannigan is in...
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...Case: Brannigan Foods: Strategic Marketing Planning 1. Problem Statement November 2012: Following three consecutive years of slipped sales, market share and profitability, Bert Clark, vice-president and general manager of Brannigan Foods’ Soup Division, is given a high priority task: He must decide on which marketing strategy shall the company take in order to: * achieve short-term numbers needed * US Soup Division profit growth of 3% in 2013 * strengthen the long-term direction of both company and its most reputable brand 2. Situation Analysis – Market Summary Regarding customer behaviour and market trends, important insights arise from analysing Julian DeGennaro’s (Brannigan Market Analyst) summary report. Starting with customer behaviour it can be said that, at least, 3 out of 4 consumers recognise canned food as useful to have at home, point cold weather as a trigger for eating soup and agree that soup is part of a healthy diet. Moreover, soup consumption in U.S. household averages 1.4 cans per week, with the segment of 18-24 average rising up to 2.1 cans/week. Concerning market trends, it can be said that soup is still regarded as a seasonal buy and a low-innovation product. Yet, it is noteworthy that Healthy-living solutions have been pointed as a need for children, among whom obesity concerns are especially important. Senior consumers, who have been described as brand loyal and heavy soup users, also show growing health concerns and tend to...
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...BRANNIGAN FOODS In this case, Bert Clark, vice-president and general manager of Brannigan’s Foods’ Soup division has been tasked with analysing the investment recommendations from his four key managers. Their proposals are based on the review of Julian DeGennaro’s annual ‘State of the Soup Industry’ report; as well as on Brannigan’s financial statements from previous years. In DeGennaro’s report, we notice that the sluggish economy is a good incentive for consumers to eat at home – with soup being an economical option, especially during the colder months. There are noted to be high growth rates in convenient and healthy products to cater to consumer’s needs. As a whole, Brannigan’s is not currently viewed as a health-conscious or diet-friendly brand, however they remain perceived as a leader in soup sales and retain a loyal consumer segment with the aging population. The manager’s proposals focus on some of the market trends, and the strengths and weaknesses of Brannigan’s brand. Below, we have ranked the four proposals based on our qualitative and quantitative analyses of each scenario to identify which proposal should be favored by Clark and which would be most viable for the company absent any resource constraints. A positive aspect highlighted by Pugh would be that modernizing the manufacturing plant would require a $22 million investment, but would ultimately generate profits and be considered an asset on the Balance Sheet. Furthermore, reintroducing the...
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...BRANNIGAN FOODS STRATEGIC MARKETING PLANNING IE Business School Juan Manuel Restrepo Davies Mª Concepción Aragonés Cabeza IE Business School PROBLEM STATEMENT Bert Clark, vice-‐president and general manager of Brannigan Food Soup’s Division, has to decide which of the four alternative plans his team members have proposed should be implemented in order to reverse the industry’s steady decline as well as the division’s sales, market share, and profitability decrease for the last three years. He has to move the division’s growth back to a 3-‐4% at the end of the fiscal year. ANALYSIS OF THE SITUATION Company: Brannigan is a company that has been operating for over 100 years. It has a Soup Division which has experienced a decrease in its profitability and needs to create a new strategy...
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...and stimulate short-term financial results without sacrificing long-term growth potential. Key Decision Criteria Brannigan Foods is faced with the problem of energizing innovation and resultant company growth in a stagnating industry in which it is the market leader. Brannigan possesses a “cash-cow” in its current soup division, and must figure out a way to utilize this source of capital in order to drive growth in other sectors to ensure long-term profitability. The short-term financial goals are to increase profits by 3% over the next year, while long term goals are to stimulate growth in other areas of the Brannigan soup division’s lines of business. When considering which strategic direction to pursue with respect to possible growth strategies, Brannigan should consider shifting consumer preferences. Consumers tend to be favouring products which are perceived as being lower in sodium and healthier overall. For example, the recent growth in the Annabelle’s Foods division demonstrates that consumers are becoming more focused on a combination of healthiness and convenience. Brannigan’s should be wary when considering allocating it’s limited growth capital to initiatives such as expanding the core lines of business due to the recent negative category growth of the ready to serve wet soup and condensed wet soup markets. An additional factor that Brannigan should consider when choosing how best to move forward is the attractive growth and margin opportunities in the emerging...
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...being popularized. Even as the biggest company in the soup industry, Brannigan Foods has been facing a fall in its sales, market share, and profitability in the soup division for the last three years. The loss in market share is likely due to Brannigan’s lack of adjustment to the new consumer trends that have been arising, which many other companies have been able to do. Many small companies have been offering innovative product lines in the soup market which have paralleled the consumer trends and therefore have been receiving positive result, which explains Brannigan’s market share decrease in the industry. Furthermore, there have been increases of Private Labels offered by retailers, which have also been taking Brannigan’s market share along with its shelf space in retail stores. Some of these new products include premade “deli soups”, dry-mix soups, and microwaved packaged soups. Bert Clark, VP and GM of Brannigan Foods’ Soup Division, is to come up with a solution to reverse falling profitability and increase profits by 3% by the next year. After reviewing the suggestions made by his four key managers, the recommendation is that Clark follows Anna Chong, the Chief Innovation Officer’s suggestion of investing in the organic growth from internally developed new products. With increased investment in R&D along with A&P, Brannigan Foods would release new product lines in the soup market that address...
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...3. Invest in organic growth from internally developed new products Anna Chong, Chief Innovation Officer, shows an alternative by investing in R&D and advertising and promoting new product entries. She outlines that it is important to “milk the cash-¬‐cows” and subsidize the investment of the “star products”. She proposes very original ideas, like new flavors that are appealing to the growing demands of the public, new innovative packages and new usages of the soups. Pros: Original ideas, and no need to invest heavily on acquiring a small company, which avoids the risk of miscues in the production lines. The new innovations target different segments for the soup division, specially the growing categories for healthy meals and active lifestyles. One important innovation is to add new products for the Ready to Eat category, which is the most profitable of the company. Cons: Only one out of ten innovative products actually succeeds in the market and becomes an established product in the company´s portfolio; the remaining nine do not last longer than two years. It is very difficult to assign exact costs to the products that were created from inside the company. Moreover, adding new products with the diminishing shelf space in the retailer stores represented another challenge for this plan since new products would need a reduction of the shelf space from the Ready to Eat soups. With this alternative we can see that once again Brannigan’s net earnings wouldn’t be increased but...
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...BRANNIGAN FOODS: STRATEGIC MARKETING PLAN Mitchell Lunde University of Maryland University College MRKT 495 21/10/2013 Table of Contents Executive Summary Company/Product Analysis Problem Statement and Underlying Symptoms Bert Clark faces many challenges as vice-president and general manager of Brannigan Foods’ Soup Division, but nothing could have prepared him for what he recently read. A critical analysis of the entire soup industry indicated the situation as dismal and with no end in sight. Because of the increased health concerns amongst American consumers and the perception of most soups as being high in sodium and full of preservatives, many consumers have either stopped buying soup entirely, or have moved to fresher, healthier soups. Not only is the report slightly negative, but the company’s own market share, sales, and profitability has been slipping for the past three consecutive years indicating only one thing: new strategies had to be implemented in order to subside the downward spiral. The people he depended most on in his division had all provided their own careful analysis and recommendations, but despite their efforts, there was no comprehensive solution amongst any of the recommendations. There was however one point which Clark felt was his division’s most pressing need: in order for the company to grow, it had to target products to a younger audience despite the fact older segments consumed a majority of condensed and ready to eat (RTE)...
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...MKT2401 Brannigan Foods Case Analysis Option 1: Invest in the growing sectors What - Increase investments on growing categories of dry soups, healthier soups, and fast meals so as to improve brand image and drive long-term growth - 4 ‘P’s; Product: Fast & Simple soup line (sales growing at 12% per year) positioned to meet the needs of working mothers and professionals; Heart Healthy soups positioned to address concerns of over-50 consumers - Dry soups category is expanding; 2 dry mix packs can be sold in the space of one can, increasing sales potential by 180% - 4 ‘P’s; Promotion: Increase advertising investment in Fast & Simple soup meals and Heart Healthy soup line so as to reinforce awareness and induce trial - 4 ‘P’s; Promotion: Promotional couponing and sampling of hot new flavours, e.g. dry mix Gazpacho (for warmer months) and Teriyaki Beef Fast & Simple meal (for Asian soups category) - Increase advertising and promotion spending of $18 million Pros - $18 million increase will stop slide in sales and market share Cons - $18 million increase will reduce next year’s profits; pressure from CEO, board, stockholders - Spending more on these small lines might not produce the projected sales; breakeven sales? - Competition: Tipha’s products had lower gross profit than the core products - “On-trend” initiatives may not become large category for Brannigan’s because consumers may choose not to change their eating habits (i.e. to eat healthier) ...
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