Brannigan Foods

1178 WordsJan 17, 20155 Pages
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…show more content…
$189 million was spent in advertising and promotion in 2011, or 10.6% of net income. However, in order to keep profits stable, price has continued to inflate over the past few years to help soften the blow of reduced sales. Baby boomers have been our target market for so long, but in order to maintain longevity of the company, more markets need to be pursued. This may mean new channels. Course of Action: Bert has four alternatives to choose from to take to his manager, John Wilson; 1. Invest in the growing sectors, 2. Acquire product lines to complement the core in growing sectors, 3. Invest in organic growth from internally developed new products, or 4. Invest in the core. Each plan has great potential, but combining the strongest parts of a few of the plans will make the marketing strategy the strongest. Acquiring a new line will give Brannigan a new flavor as well as additional shelf space, and potentially a new market segment. However, an acquisition can be costly. I believe that investing internally to develop a soup to meet the needs of consumers is a better option. Although Dragon foods has an impressive $4.2 million EBITDA, I believe Brannigan can create a soup with a superior taste and match the needs of customers better. With promoting this new line of soup, we can hopefully attract the segment which seeks out this flavor and increase the longevity of the company. Also, the sales
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