brannigan strategic marketing plan

BRANNIGAN FOODS

A Strategic marketing plan

Bent Clark’s dilemma

• Sales

• Market Share

• Profitability

PROFIT GROWTH BY 3 TO 4 PERCENT

Bent Clark’s goal

Brannigan’s situation

CUSTOMERSBaby Boomers, Working

mothers

COMPETITIONRoarin Cajun foodRed dragon foodBrothers gourmet

Private labelled soups

COLLABORATIONSRetailers offering shelf

space

Porter’s 5 forces

1. Rivalry among existing soup sellersCompetitors offering same products & private label

Porter’s 5 forces

2. Threat of new entries into the marketDecreasing shelf space as competition makes larger investment on promotions

Porter’s 5 forces

3. Product SubstitutesRestaurants & brands catering to the business of fast food

Porter’s 5 forces

4. Bargaining powers of buyersVaried choices and enticing price options

Porter’s 5 forces

5. Bargaining powers of suppliersInflation and quality of products to offer

S.W.O.T

S

TO

WMarket leaders

Well known brand

Adept to American culture

Loyal customer base

Niche target

Low health quotient

Declining sales / profits

Dis-integrated framework

New product varients

Cater to health

New target customerSegmenting

Improved retailer network

Private Labels

New market entrants

Substitute avenues

Shift in customer loyalty

ALTERNATIVES PRESENTED TO BENT

Efficacy of the proposed plans

Alternative 1

• Increased attention to Simple Meals, Heart Healthy Soups & Dry Soups

• Increase in advertising cost by 18%

Tearing down Alternative 1

• In sync with growing target segment

• Acknowledges shift in consumer preference on the health route


• Undermines the ‘Cash Cow’ which accounts of 40% of sales

• Decreases profits simultaneously

The above chart in Exhibit 1 indicates that the company will incur a loss of about 4 percent

Alternative 2

• Acquisition of smaller firms to enter healthy and convenient segments

• Aims at capturing companies that have a growing market share


• Zero investment in research and development

• Lowering risk of cannibalization


• Investment into acquisition with uncertain future

• Previous acquisition of Anabelle is exemplary

The above chart in Exhibit 2 indicates that the company will incur a loss of about 7 percent per year

Alternative 3• Invest in research & development

• Increase advertising and promotion costs

• Milk the cash cows & subsidize the investment of star products

• Suggests new flavors to appeal to target audience


• Investments will boost product appeal in terms of taste and benefits

• Add new products to RTE segment will boost company profit


• 1/10 ration success for innovative products

• New product addition is contrary to reducing shelf spaces

The above chart in Exhibit 3 indicates that the company will incur a loss of about 2 percent per year

Alternative 4• Increase in marketing expenditure to

increase brand awareness

• Price decrease of products in RTE by 5 cents

• $22MM investment in capital to enhance manufacturing plant’s efficiency and cutting production costs


• Focused on core product (RTE)

• Reduced risk of introducing a new product that might possibly fail


• Price reduction might hamper brand image

• Huge investment in manufacturing plants might not add any significant value

The above chart in Exhibit 4 indicates that the company will be increasing profits for the next 3 years

PROPOSED ALTERNATIVE

Bent’s possible solution from the recommendations

ALTERNATIVE 3

ALTERNATIVE 4

Secures long term growth in profit

Investing in RTE expands its lifecycle

SegmentationSegment Demographic Psychographic BehavioralBaby Boomers High income Health oriented Loyal to brand

Educated Palettes

High incomes Brand image conscious and prefer premier quality

Quality concerned

Millennial Medium incomes Enjoy meals at affordable price Price concerned

Working Mothers

Medium high incomes

Health oriented towards their children

Quality sensitive

Youth No incomes Love savory meals Quality sensitive

Research indicate38 % millennial eat soup as a snack78 % think soup is healthy / low calorie61 % take low sodium into consideration

MARKETING MIX FOR BRANNIGAN

Understanding the 4P’s

PRODUCT

Packaged deli soups with health

New flavours enhancing taste quotient

Blended with noodles & tomatoes, etc

Microwave ready to eat soups

BRAND POSITIONING“Ever more, healthier ever”

• Increased presence at retailers

• Increased shelf space

• Available online for purchase

• Sampling outlets outside avenues where your target audience visit often

• Price of RTE soups to not be meddled with

• Introduce premier soup brand that’ll cater to high income customers to increase profits

• Building compromise effect amongst consumers

PROMOTION

• ATL activities• In Store promotions• Promotion across digital media• TVC with the message inclined on

health route• Outdoor and print media promotions• Incentivizing sales force

Digital Marketing Promotion

Start a youtube channel Vlogging on health concepts

brannigan strategic marketing plan

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