Brannigan Foods Essay

2590 Words Oct 27th, 2014 11 Pages
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.
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The Soup Division was responsible for 40% of sales which accounted for more than half the profits of the company’s U.S. divisions. Among the challenges this division faced was the fact that soup consumption had declined between 2.3 (with Deli soups) to 2.8 % from 2010 to 2011.
This result was strongly affected by the performance of the Ready to Eat (RTE) category, on which Brannigan Food Wet RTE and Condensed RTE accounted for 60% share. Furthermore, these two products provided for 64% of the division’s sales and 71% of its profits showing how much the company relied on them. Brannigan’s RTE soups were considered mature products, and had entered a slow decline both in value (1-2%) and volume (2-3%).
Insights from 2010 Nielsen’s survey, which detailed consumer and retailer perception of the company, were also important in assessing the company situation. It was clear that consumers perceived Brannigan to be behind competitors in health trends, diet claims, convenience offerings, flavours and seasonal products outside cold weather. Concerning retailers, the perception was that, despite being soup category leader, Brannigan Foods failed in innovation and was also less profitable than the competitors. This was of most importance as supermarkets accounted for 62.9% of category sales.
New products introduction was another important issue the company had to address. Although the new product success rate was at 7%, aligned with

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