Brannigan Food Analysis

1349 WordsJul 20, 20156 Pages
Problem Statement The vice-president and general manager of Brannigan Food Soup’s Division, Bert Clark, must choose an alternative that will reverse the division’s sales, market share and profitability decrease over the last three years, along with industry’s steady decline. In order to do so, he has asked four of his team members for an alternative that would move the division’s growth back to 3% next year. Situation Analysis – 5C’s Customers: As the case points out, baby boomers are the larger and most loyal segment. However, they are getting older and their preferences are changing, as soups are concerned, into healthier, lower-sodium products. Furthermore, the younger generations don’t perceive the same value for canned soups, as they look for other types of meals (simple, fast and microwaveable). Putting it in simple terms, they look for new products and flavors. Competitors: regarding the new products mentioned above, Brannigan faces a “wide array of strong competitors” entering the market with faster and healthier soups along with new flavors (Southwest, Mexican and Asian). Some of these competitors represent an opportunity to enlarge Brannigans’ portfolio of products through an acquisition. Of all the competitors, acquiring Red Dragon seems to be the most likely investment. Finally, it should also be mentioned Private Labeled Soups, that have been increasing their sales by 5% over the past several years as retailers decrease Brannigans’ shelf space by 3% yearly in order to provide extra space for their own private labeled products. Company: Brannigan is a food centennial company. Although being a cash cow, representing 40% of total sales, its soups division experienced a decrease in profits, sales and market share which need to be reversed through a new marketing strategy. Even though the division has several other products such as Dry Soups, Healthier

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