...RTE Cereal Case Study Number of Firms and Market Shares There were six firms in the industry from 1950 to 1990 represented in the case study. In 1990 private label firms entered the market. The industry grew consistently through the 21st century but, the Big Three, consisting of Kellogg, General Mills, and Nabisco, dominated the market. Kellogg has consistently dominated the market shares in the RTE cereal industry with General Mills and Post following close behind. From 1950 to 1993, Kellogg’s average market share was 40.3, General Mills was second with an average market share of 21.7 and third of the Big Three, Post, had an average market share of 17.4. There were not any significant changes in the market shares from 1960 to 1980. However, in 1990 Post dropped to 11.1, 4.5 less than the value in 1980, General Mills reached 24.4, 4.5 more than the value in 1980, and Kellogg, still leading the pack, decreased to 37.5, 3.4 less than the value in 1980. From 1990 to 1993, there were not any significant changes in the market shares for the Big Three. There are three other firms listed in the case study that represented the remainder of the market shares. During the same time frame, Quaker had an average market share value of 6.8. Quaker market shares decreased dramatically from 1950 to 1960 but made a steady increase beginning in 1970. Nabisco’s average market share was 5.0. The market shares for Nabisco decreased in 1970 and continued to decrease giving them the lowest...
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...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 the consumer trends. The most anticipated product releases will be “To-Your-Health RTE Chicken Noodle” and “Fast-and-Simple...
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...Ievgeniia Sapa_BU_598 Cases summaries The case” Nissan Motor Co., Ltd., 2002” It begins with the praise of Carlos Ghosn, president and CEO of Japanese auto manufacturer Nissan Motor Co., Ltd., his successful work and prosperous contribution to company that had reached amazing results in 2002 comparing with the last three years of almost bankruptcy. Its operating profits and net profit raised 68% and 12,4% and operating margin raised from 4.75% to 7.9% from the previous year. From the case we can follow the development of the company. It was founded in 1933 and it was one of the first Japanese company to manufacture automobiles. It began to increase in 1950s and in 1970s it was the second company after Toyota but after that the company began to lose their market position, staying far behind its rivals Honda and Toyota. In 1987 Nissan tried to double their sales by investing almost $4,5 billion into development of their domestic network and $1,8 billion into manufacturing facilities. By1992 they increased their dept in three times to $32,7 billion. This was decade of losses and declines. Yutaka Kume on the last year of being president began to restructure the company and Nissan had a loss in recurring profit. The next president of the company was Yoshifumi Tsuji and he had another plan of expanses reducing to $2 billion, in three years. After him was Yoshikazu Hanawa with his restructuring plan. In that period Honda took the second market place in Japan. Nissan company kept...
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...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 Brannigan ‘Boys and Girls Love Soup’ Campaign would engage the younger customers thus aiding in the rejuvenation of the brand. Clark had highlighted that engaging the younger generations is a pressing need for Brannigan’s at this time. Pugh’s proposal also includes a recommendation to slightly decrease the prices of Brannigan Foods RTE soups given that, as mentioned by Clark, a 30% price...
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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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...1994 From 1950s to the 1980s, the ready-to-eat (RTE) cereal industry was concentrated with three companies dominating the volume market share: Kellogg, General Mills, and General Foods (acquired by Philip Morris in 1985 – makers of post), with volume market share that hovered around the 30s, 20s, and 10s, respectively. Quaker, Nabisco, and Ralston held single digit volume market share throughout this time. The industry was characterized by stability and above average profitability. Sales were steady at a compound annual volume growth rate of three percent between 1950 and 1993 due to new offerings such as vitamin fortification (during WWII), presweetening (1950s), and interested in granola and natural cereals in 1970s to 1980s. The largest cereal manufacturers were extremely profitable, routinely posting Return on Assets in the 15-30 % range. Some industry observers claimed that the Big Three (Kellogg, General Mills, and Post) had effective unwritten agreements to limit in-pack premiums to one brand at a time for each company, to refrain from trade dealing (offering discounts to retailers for special treatment or special promotions), and withhold from widespread vitamin fortification. These tools, if employed, would temporarily increase a firm’s market share at the expense of its competitors. Because the Big Three avoided these practices for many years, they prevented a cycle of escalating costs that would ruin the RTE industry profitability. However, technology advancement...
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...classify demand (elastic, inelastic, unit elastic) for cereals produced by the Big Three? Support your answer by using details from the case and referencing the factors that influence the elasticity of demand. The RTE cereal market had an oligopoly market structure where the big three companies are dominating the market. Putting this in mind, a consumer will be forced to pay regardless of how high the prices are increased due to the scarcity of substitutions available. This will result in an inelastic demand trait in this particular market. As the case elicits the big three companies became “highly concentrated, restraining competition and by taking specific steps to keep new firms from entering the industry”. The filing of the antitrust suit against the big three companies in the 1972 proves that these companies had monopolized the RTE cereal market. Quoting from the case “The FTC case was based on the fact that the industry was concentrated and highly profitable, and not on specific actions that the firms might have undertaken to achieve.” Restrained unwritten agreements, and limited trade dealings with pressuring retailers on premium shelf spaces all had an impact on the elasticity of demand. 2) How would the entry of new private label producers impact the elasticity of demand for the Big Three’s products? Allowing private label producers entering the market will simply give the consumers an option to choose from when prices do increase from the big three companies...
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...remember a tougher, more complicated challenge than the one he now faced. The soup industry had been in steady decline for several years, and the division’s sales, market share, and profitability had slipped for the last three. Clark skimmed his managers’ emails, hoping for new concepts and fresh, timely arguments. Each manager had indeed sketched a proposal ‘‘most likely to turn the division around.’’ Unfortunately, the proposals bore no resemblance to each other. Clark decided to revisit DeGennaro’s report and then consider each proposal in depth. The Soup Industry in 2012 As he reviewed DeGennaro’s findings, Clark was particularly concerned about the major consumer trends affecting the sale of soup. Condensed and ready-to-eat (RTE) soups were still a staple in most diets in the United States. However, the growing concern about health and obesity had led to a reduction in processed foods in general and products with high sodium content in particular. This trend was especially pronounced among the so-called baby boomer generation (born between 1946 and 1964), the first wave of which was now entering retirement. This group was the largest and most brand-loyal segment of soup...
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...assignment. Viraj Perera Sara Russell Ingrid Szikla ID: 18877095 ID: 18481183 ID: 13034715 Page 2 of 89 EXECUTIVE SUMMARY This strategic marketing plan specifically addresses Uncle Tobys Ready to Eat (RTE) Breakfast Cereal products in Australia over the time period starting from the second quarter of 2004 and ending fiscal year 2007 (1/10/2004 – 30/6/2008). This plan takes into account and builds on new marketing strategies for Uncle Tobys resulting from the take-over by Burns Philp in the USA. Uncle Tobys is a leading brand of Goodman Fielder, which is a division of Burns Philp Company Ltd. Until 2002, Uncle Tobys had the second greatest share of the RTE market by value with 20.3% in 2001, but has since slipped to third place at 15.9% in 2003 and is now behind Sanitarium (17.2%) and Kellogg’s (55.4%). Contributing factors were issues such as high debt and lack of effective IMC strategy. However, it is anticipated that efficiency gains from the new organisational structure will come into fruition during 2004-05, and Burns Philp’s renewed support to build up leading brands such as Uncle Tobys will provide the frame work and support for achieving revenue growth. Uncle Tobys corporate objectives for the next three years in the RTE cereal market is to increase revenue by 2 - 5% per annum on average, and have a net profit growth of 6% per annum on average. However, these objectives cannot be met using strategies...
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...University of Connecticut, 1376 Storrs Road, U-21, Storrs, CT 06269-4021 Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill Abstract This article introduces the Forum by explaining the sequence of events related to the jawboning campaign and subsequent reductions in cereal prices. It also introduces the main issues on the vigor of competition and pricing that are analyzed in subsequent papers. Jawboning as a public policy strategy is assessed and found useful in certain circumstances such as those in the breakfast cereal industry in the mid 1990’s. The jawboning campaign was effective in advancing price competition in an industry that successfully resisted repeated antitrust efforts to promote competition. The RTE cereal industry is now undergoing major structural changes that are on balance pro competitive. (ECONLIT Cites: L100, L410, L660) Key words: jawboning, nonprice competition, market power, market concentration, antitrust enforcement Jawboning Cereal: The Campaign to Lower Cereal Prices by Ronald W. Cotterill∗ This Agribusiness Forum contains a...
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...manufacturing infrastructure with 45 manufacturing plants in 26 states, including world's largest snack food plan in Frankfort, Indiana. It has extensive warehouses and distribution facilities as well with more than 1,800 in number and 17,500 salespeople who make 750,000 sales and delivery calls on approx 350,000 retail store customers each week (Kerin & Peterson, 2010). It also is one of leading national advertisers in the United States. Borden Foods' Cracker Jack is one of leading brand in Ready-To-Eat (RTE) caramel popcorn category. Because of Borden's strategic decision to focus its resources on pasta business and grain-meals, which needs significant resource investment, it has decided to divest Cracker Jack and related assets. Frito-Lays' New Ventures Division, which seeks and creates new business platform and products to grow business (Kerin & Peterson, 2010), evaluating purchase of Cracker Jack brand to grow Frito-Lays' Prom Our business. Problem Identification Ready to Eat (RTE) caramel popcorn product category has several different types of competitors; Dissertations national brand firms, seasonal/specialty...
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...BRANNIGAN FOODS STRATEGIC MARKETING PLANNING Juan Manuel Restrepo Davies Mª Concepción Aragonés Cabeza IE Business School AGENDA 1. Problem statement 2. Situation analysis Five C’s Porter 5 forces SWOT 3. Alternatives 4. Recommendations Implementation plan Marketing strategy Marketing Mix Digital marketing 5. Take aways 1. PROBLEM STATEMENT GOAL INCREASE 3-4% PROFIT Industry Decline Brannigan’s sales, market share, and profitability decline 2. SITUATION ANALYSIS FIVE C’S ANALYSIS BRANNIGAN SOUPS Cash cow, 40% of total sales Products RTE Dry Soups Healthier Soups and Fast & Simple Meals Anabelle Brand awareness and value percepKon behind compeKtors CUSTOMERS -‐ Baby Boomers, Younger & Working Mothers -‐ InnovaKons and new flavors COMPETITORS -‐ New small compeKtors Roarin’ Cajun Foods Red Dragon Foods Brothers Gourmet -‐ Private Labeled soups increasing their sales by 5% Less shelf space -‐3% COLLABORATORS -‐ Decreasing Brannigan’s shelf space CONTEXT -‐ Sector sales have been decreasing -‐ The loyal populaKon (baby boomers)...
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...vice-president and general manager of Brannigan Foods’ Soup Division, had to decide which of the four strategies presented by his four key manager he should follow to improve the division’s sales, market share, and profitability, which has been falling for the last three years. List any outside concepts that can be applied: The impact of developing new products (incremental) and extending the line of products in order to increase market share, profitability and/ or sales, as well as to gain shelf space. The power of using a recognized brand name to reduce risk, although it could also devaluate the brand. Cannibalization: developing these new products could result in cannibalization of the existing ones, for this, product developers and managers must take into account cannibalizations when they assess the value of the new products. Promotion: which covers all efforts (advertising, branding efforts, introductory coupons, and so on) the importance of investing or allocating resources in promotion in order to increase sales and market share. Pricing strategy: one of the proposed strategies talks about reducing the price of the can soups, the impact t of reducing the price of a product has on customers must be considered by the managers, consumers tend to question whether the quality of the product was put on stake or not in order to reduce price The product life cycle and the innovation of the product along this cycle: in the case it is argued that there are products in the...
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...in every organization, namely human, structural, and relationship. Sveiby (2001) believes that people can use their competence to create value in two directions: by transferring and converting knowledge externally or internally to the organization they belong to. When the managers of a firm direct the efforts of their employees internally, they create tangible goods and intangible structures such as better processes and new designs for products. When they direct their attention outwards, in addition to delivery of goods and money they also create intangible structures, such as customer relationships, brand awareness, reputation and new experiences for the customers. (Papoutsakis, 2006) 2.0 LITERATURE REVIEW This study expose to the impacts of knowledge management to an organization, on how it benefits and result to a positive revenue to the organization in term of (Return On Investment) ROI as well as the challenges on implementing knowledge management in an organization. 3.0 THE KNOWLEDGE CYCLE Source from: http://www.tfhrc.gov/pubrds/novdec99/knowledge management.htm According to Mike Burk, knowledge tends to flow along organizational lines, from the top down in the traditional organizations. But that pattern seldom results in making knowledge available in a...
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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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