Brannigan Foods

Advertising costs have risen in recent times and is becoming an expensive way to promote their

Cranfield Inc. is a leading producer of juices for range of cranberry cocktails. After a market research experiment Cranfield Inc. has many different business decisions to make. One to introduce a new line called lite cocktail which requires space and machinery and will eat into sales of currently offered products. Or not to introduce the new product and lease out it’s space, or do nothing to save the space until it’s needed for its current product line.

Changes in customer preferences, general economic conditions, discretionary spending priorities, demographic trends, traffic patterns and the type, number and location of competing restaurants have a moderate effect on the restaurant industry (Chipotle, 2010). One example of customer preferences being a driver in the industry is the “Whole Food-ism Movement” which has put a large focus on organic, antibiotic-free, and non-processed foods (Mansolillo, 2007). Consumers now look for healthier options when eating and an overall healthier lifestyle. Chipotle has been able to benefit from this movement by carrying on their “Food with Integrity” mission (Chipotle, 2010).

During this time, sales increased from: $7.11 billion in 2010 to $7.99 billion in 2012. Earnings improved from $2.84 to $3.57. While the total amount of dividends rose from $1.00 to $1.72. These figures are showing how the company has been continually increasing sales, earnings and dividends over the last three years. In the future, the management predicts that their current strategy will increase returns. As, executives believe that their focus on building the brand and accounting for costs will lead to net earnings of $5.20 to $7.19 annually by

Also, according to break-even analysis operating with the single mold and excluding warehousing costs, a minimum of 12,035 units must be sold to break even. Under a similar situation with the double mold, 15,507 units must be sold to break even, which is about half of the optimistic sales projection. Also under the optimistic sales projection, a positive return on investment is expected. Because the company is turning profit,less additional investment is required. Additionally under the pessimistic and expected situation, the company turns losses, and under the optimistic projections, Chef’s Toolkit only has a net income of 13% of its revenues. Selecting Preferred alternative According to the above information and the projected pro-forma statements, Dale Reid should not invest his money in the company. The company’s lack of current assets, high expenses and low per-unit revenue create an unfortunate and unprofitable investment in pessimistic and expected situations. Only in the optimistic production and sales does the company begin to turn profit, but this profit is low. Chef’s Toolkit needs desperate restructuring and additional revenue sources before Dale Reid should invest. Developing

Dragon Soup should increase the regular price of soup. The sales team is confident they will be able to sell soup at any price due to the cult-like following of The Clangers. Dragon Soup then just needs to find the optimal price per can for their purposes of maximizing income. Based on the spreadsheet, a price of $1.99 per can maximizes Gross Profit at $547,298 (Net Income of $207,354). On the other hand, Net Income is maximized at a regular price of $2.15 per can, producing Net Income of $226,740 (Gross Profit falls to $516,783).

Howard Moskowitz, a food industry consultant, detailed how to increase the flavor appeal of Dr. Pepper by its consumers, with large amounts sugar. In Prego spaghetti sauce, after tomatoes, sugar was made the next greatest ingredient in amount. The classic Lay’s potato chip brand included many different flavors such as chips with salt & vinegar, salt & pepper, cheddar, and sour cream flavoring. Mr. Moss goes on to describe how Frito-Lay executives hope to develop “designer sodium,” which may decrease the sodium content of their products by a considerable

Strengths: Brannigan Foods’ Soup Division has the largest soup market share in the United States at 39.8%. They are willing to change and have the capital to do so.

Campbell’s is constantly modifying its products based on consumers health and fitness needs. This company currently maintains a vast consuming goods portfolio that includes famous consumer brands such as Pepperidge Farm, Prego, Pace and V8. This company produces variety of food products that are high quality for consumption and are also widely known as branded convenience food (CSC, 2009). As a number one soup manufacturer in the world which owns up to 70% of U.S market share has experienced a steady growth over the past few years despite the slow performance of the US economy. As the company has turned global its competitors extend from domestic to global markets.

Hausser Foods is clearly experiencing a decline in sales growth due mostly to competition and a decline in population growth. The case focuses mostly on the southeast sales region; however the decline in sales growth is affecting the entire company. The lack of new ideas by the sales force is primarily due to a lack of reflective and adequate encouragement from HDQ as well as a fear or concern that such new ideas for sales revenue might actually burden the sales force in the following year through increased sales targets.

Brannigan Foods soup division general manager Bert Clark was in charge of bringing their company out their recent decline. The company had seen steady decline in division sales, market share, and profitability over the last three years. He was in charge of moving their division’s growth back up to 3-4% per year and his team had come up with four different plans for doing this. It was Bert’s responsibility to review the benefits and costs of each plan and choose the most effective way to grow the company.

Introducing a new product to the market is a very risky operation. Not only is it risky but it takes time, effort and money. In order for a product to be successful, it had to fully undergo the product life cycle. Kellogg’s has an advantage when it comes to the breakfast market as it holds the biggest market share. After providing the British public with breakfast for years, it most certainly has a larger customer loyalty base. The strong brand makes it easy for product launching as the public are already familiar with the brand. However, introducing a new product comes with its challenges and risks. Looking at the ratios, Kellogg’s has a current ratio to date of 1:1.1 . This in financial terms rings alarm bells as it shows that the company will struggle to pay its short term obligations. Kellogg’s however can operate on a low current test ratio as it has a good long term revenues coming into the business. This means that it is possible to borrow on this basis to meet its current obligation. After calculating the net present value, which gave a positive NPV of £38450million, I move that we go ahead with the introduction of a new product. In traducing a new product is a sign of innovation and growth on the part of the competitors. In order for a new product to be introduced to the market, Kellogg’s will have to spend money on the actual product, the marketing side of

After a period of declining sales for Allround, we increased the advertising budget to be consistent with our competitor’s budget. We decided to be very consistent with our strategy over the ten periods; however, in hindsight we should have implemented a more dynamic strategy that factored in the changing

We will use the following framework to help analyze and evaluate the possible strategies Anton should follow, ultimately coming to a final marketing strategy and reasons for pursuing that strategy:

Nevertheless, as a recommendation, the company could re-evaluate their long-term financial objectives and consider focusing on short term goals to pursue in the next two years. By concentrating sales on one particular product or service which offers the most appreciable profit, it could potentially elevate the annual income, yet this strategy is only realistic if all other subdivisions of the company continue to