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Transcript of Brannigan Foods
Determine the most profitable way to use Brannigan's current and future resources.
Porter's 5 Forces Model
1. Threat of New Entrants
New Entrants Unfavorable
Brannigan holds 39.8% of market shares (Quelch & Kindley 2013)
2. Bargaining Power of Suppliers
Bargaining Power is Moderate
Buyers can easily switch-moderate impact
3. Bargaining Power of Buyers
Threat of Substitutes Unfavorable
51% Use soup for cooking & 91% keep in pantry (Quelch & Kindley 2013)
4. Threat of Substitutes for Products or Services
Both Favorable & Unfavorable
Grocery Stores-Shelf Space-Easy
Bargaining of Suppliers-limited
5. Rivalry Amongst Competitors
Brand loyalty by customers-41% of all soups (Quelch & Kindley 2013)
Industry Analysis: Why, What & How
Solicited Proposals from Colleagues
Seems driven by : "Value Proposition"
Element of strategy that looks outward at customers and the demand of the business (Magretta 2011)
Not Considering: "Value Chain"
Internal aspect of operations, otherwise know as the supply side (Magretta 2011)
Main Areas of Competitive Advantage
Pro's & Con's
, Director of Simple Meals
, Director of Sales & Marketing
, Director of Finance & Planning
Potential Results: Clark's Decision
Lack of cohesiveness amongst divisions
Team has lack of knowledge of other divisions
Only choose one proposal= possibility for loss of synergy
Effects of Change
It is easy for leading competitors to see their numbers rising and become arrogant or as Peter Hughes stated, “Get fat, dumb, and lazy” within the industry...
Campbell’s soup - about us. (2013). Retrieved from
Lloyd, P. R. (2013). Best canned soup. Retrieved from
Margretta, J. (2011). Understanding Michael Porter: The essential guide to competition and
strategy. Boston, MA: Harvard Business School Press.
Quelch, J. A., & Kindley, J. T. (2013). Brannigan foods: Strategic marketing planning. Harvard
Business School, doi: Brief Cases: 9-913-545
Soup in the US. (2013). Retrieved from http://www.euromonitor.com/soup-in-the-us/report
Brannigan Foods Competitive Advantages:
•Brand loyalty: Baby boomers are the most brand loyal shoppers
•Own 39.8% of the soup market
•Focus on core products, but do not ignore innovation
•Hold the shelf space in grocery stores
•Fast, simple meals
•Dry-mix soups, pre-made deli soups, microwavable packaged soups
•Need to attract a younger-generation, but retain current customers
Main Marketing Goals:
•Enhance and promote current profitable products to keep market share
•Develop and promote new products to meet the needs of the customers (i.e. health and fast meals)
•Develop new ways to increase relationship with suppliers (i.e. grocers and other retailers) to keep and grow shelf space
Division Marketing Strategy
•Current market is a person with quick, fast, easy, inexpensive meals.
•It’s incredible what soup can do for you.
•We own the bowl and the market in the soup industry.
•Increase sales by 3-4% each fiscal year.
•Develop two new products, each year for the next five years, which reflect the growth in the healthy and simple options needs by customers.
•Increase sales to younger generation by 1% each fiscal year.
•Increase shelf space by 1% over the next five years.
•Increase Research & Development budget by $5 million to create new products to fulfill new market segments (i.e. healthy, weight watchers, and new mixes)
•Reinforce awareness of current and new items by increasing our advertising and promotion spending using integrated marketing communications strategy.
•Bring back the Brannigan “Boys and Girls Love Soup” campaign to attract younger customers to the core RTE soups.
•Brainstorm ideas for addressing cannibalization and gaining more shelf space with retailers and grocers (i.e. create incentive program for grocers and retailers to increase shelf space).
•Sales will increase by 3-4% each year over the next 5 years.
•Two new soups will be developed and promoted each year. ROI will determine success rate of each product.
•Shelf space will increase by 1% over the next 5 years.
To Mitigate Potential Problems We Suggest:
Create buy-in by showing how each decision will impact the colleagues individually.
Use one proposal
With the strengths and weaknesses of change, Brannigan will determine a decision that drives them in a specific direction to bring profits to the leading soup division.