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Visual Support of Brannigan Foods Exercise

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The final PPT presentation used to make the proposal to a jury board.

The final PPT presentation used to make the proposal to a jury board.

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  • 1. BRANNIGAN FOODS STRATEGIC MARKETING PLANNING Juan  Manuel  Restrepo  Davies   Mª  Concepción  Aragonés  Cabeza   IE  Business  School  
  • 2. AGENDA 1. Problem statement 2. Situation analysis Five C’s Porter 5 forces SWOT 3. Alternatives 4. Recommendations Implementation plan Marketing strategy Marketing Mix Digital marketing 5. Take aways
  • 3. 1. PROBLEM STATEMENT GOAL INCREASE 3-4% PROFIT Industry Decline Brannigan’s sales, market share, and profitability decline
  • 4. 2. SITUATION ANALYSIS
  • 5. FIVE C’S ANALYSIS BRANNIGAN SOUPS Cash  cow,  40% of  total  sales   Products   RTE   Dry  Soups   Healthier  Soups  and   Fast  &  Simple  Meals     Anabelle     Brand  awareness  and  value  percepKon  behind   compeKtors    
  • 6. CUSTOMERS -­‐  Baby  Boomers,  Younger  &  Working  Mothers   -­‐  InnovaKons  and  new  flavors   COMPETITORS -­‐  New  small  compeKtors     Roarin’  Cajun  Foods   Red  Dragon  Foods   Brothers  Gourmet   -­‐  Private  Labeled  soups  increasing  their  sales  by  5%     Less  shelf  space  -­‐3%  
  • 7. COLLABORATORS -­‐  Decreasing  Brannigan’s  shelf  space   CONTEXT -­‐  Sector  sales  have  been  decreasing     -­‐  The  loyal  populaKon  (baby  boomers)  is  becoming  older     -­‐  New  generaKons  are  not  targeted   -­‐  Working  mothers  are  a  new  segment   -­‐  Healthy  eaKng  and  prevenKng  obesity  trends     -­‐  Demand  for  fast  and  simple  meals    
  • 8. PORTER 5 FORCES RIVALRY AMONG EXISTING SOUP SELLERS -­‐  CompeKtors  offer  the  same  products     -­‐  Private  labels     THREAT OF NEW ENTRANTS -­‐  High  adverKsing  and  promoKon  investment     -­‐  DifficulKes  obtaining  shelf  space     THREAT OF SUBSTITUTE PRODUCTS -­‐  Fast  food  restaurants     -­‐  Other  products  saKsfy  the  same  need   BARGAINING POWER OF BUYERS -­‐  More  innovaKons  and  flavor   -­‐  Seek  for  cheaper  prices     BARGAINING POWER OF SUPPLIERS -­‐  Quality  of  the  raw  materials     -­‐  InflaKon  
  • 9. STREGTHS Market leader Brand awareness American culture OPPORTUNITIES New products Solutions with retailers to create win-win situations WEAKNESSES Decrease in sales Poor job in targeting Internal teams not integrated THREATS Private labels growth Less shelf space New competition Gap between products and consumers desires
  • 10. 3. ALTERNATIVES
  • 11. A. INVEST IN THE GROWING SECTORS Simple Meals, Heart Healthy Soups and Dry Soups Increase 18% investment in advertising CONS Focuses  on  “star  products”  but  leaves   the  “cash  cow”   Previous  experience  with  Annabelle   PROS Growing  segments  of  the  market   Shibs  into  healthy  lifestyles  and  easy  to   prepare  meals      
  • 12. With  this  strategy  Brannigan’s  net  earning  wouldn’t  increase,  indeed  they   would  be  reduced  by  a  4%  
  • 13. B. ACQUIRE PRODUCT LINES TO COMPLEMENT THE CORE GROWING SECTORS Healthier and convenient segments that have new flavors PROS Null  investment  in  R&D   If  the  brands  are  kept,  there  is  reducKon  in   cannibalizaKon.       CONS Investment     Not  stable  synergies  may  cause  miscues  in  the   lines  of  producKon.   Annabelle’s  acquisiKon  did  not  meet  the   expectaKons.  
  • 14. This  strategy  isn´t  profitable  either  since  Brannigan’s  net  earning   would  be  decreased  by  an  average  of  7%  per  year  
  • 15. C. INVEST IN ORGANIC GROWTH FROM INTERNALLY DEVELOPED PRODUCTS To milk the “cash cows” and subsidize the investment of the “star products” New flavors Innovative packages Original  ideas   New usages No  need  to  invest  on  a  new   PROS company   Avoids  the  risk  of  miscues  in  the   producKon  lines   Targets  different  segments     CONS 1/10  succeeds   RTE  soups  reducKon  od  shelf  space  
  • 16. With  this  alternaKve  we  can  see  that  once  again  Brannigan’s  net   earnings  wouldn’t  be  increased  but  instead  decreased  a  2%  on   average  per  year  
  • 17. D. INVEST IN THE CORE + $20MM marketing to increase brand awareness Decrease prices of the Ready to Eat soups by 5 cents PROS Reduce  risk  of  new  product  failure     CONS Price  reducKon  would  harm  the   premium  brand  image    
  • 18. In  this  case  this  alternaKve  seems  profitable,  we  can  see  that  Brannigan’s   net  earnings  will  be  increasing  during  the  next  3  years    
  • 19. 4. RECOMMENDATION
  • 20. Alternative C + Alternative D Profitable in the short term, but hurts brand health on the long term Does not provide adaptation to an ever-changing fragmenting market Long term growth is secured Leader position as innovative InvesKng  in  markeKng  for  RTE  stretches  its  lifecycle,  makes  it  strong  and  able  to  keep   financing  the  star  products  and  boosKng  growth  in  their  early  stages  of  their  life  cycles  
  • 21. 5. IMPLEMENTATION PLAN
  • 22. Analyze the markets and the consumer segments to start a proper STP Baby  Boomers:  Loyal   Educated  Palates:  Quality  SensiKve   Too  Busy  to  Cook:  Price  SensiKve   Working  Mothers:  Price  SensiKve   Youngsters:  Quality  SensiKve  
  • 23. DATA OF THE INVESTIGATION 38%  of  millenials  eat  soup  as  a  snack   78%  see  soup  as  being  healthy  opKon  for  dieKng   61%  of  consumers  take  low  sodium  into  account  when  purchasing   Even  though  Baby  Boomers  are  the  biggest  market  and  most  profitable,  the  tendency  in   the  future  is  that  it  will  be  reduced   Targe=ng  younger  segments  is  important  for  the  long  term  growth  of  the  company  
  • 24. PRODUCT     InvesKgaKon  showed  that  they  failed  on  health  trends,  diet  claims,  convenient  offerings,   flavors,  and  seasonal  products,  which  are  growing  trends).     Branding Strategy •  Implement  an  umbrella  brand  of   Brannigan’s  soup  division  to  give  emoKonal   values  to  the  products  and  brands  under  it.   •  FuncKonal  benefits  will  be  different  through   the  different  products   •  Access  new  markets  and  focus  on   innovaKon  while  improving  the  quality  of   life  
  • 25. Positioning Statement “For  people  who  enjoy  healthy,  easy  to  cook,  savory  food,  Brannigan's  Soup  is  a   brand  of  soups  that  offers  convenient,  varied,  trustworthy,  and  very  good  quality   soups  that  allows  customers  to  enjoy  meals  while  taking  care  of  their  health  and   to  save  =me  at  very  compe==ve  prices  based  on  its  experience  as  leader  in  the   category  and  its  innova=ve  products”  
  • 26. 10 NEW PRODUCTS PenetraKon  Strategy   RTE   DiversificaKon  Strategy  Products  based  on  R&D     1.  Packaged  deli  soups   2.  Weight  watchers  soups  with  dietary  components   3.  AcKve  lifestyles  soups  and  broths   4.  Convenient  great  meals  (changing  the  usage  of  the  soup  into  a  sauce)   5.  New  Flavored  Cold  soups     6.  New  flavored  teriyaki  beef   7.  Chicken  Noodled  Soup   8.  Microwave  ready  soups   9.  Portable  thermic  microwave  soups  cold  on  the  hands,  hot  on  the  mouth   10.  Savoury  and  tasty  tomato  meatballs  soup  
  • 27. PLACEMENT DistribuKon  Channels  sell  62.9%  of  the  total  sales  of  Brannigan  Food  Company     Private  labels  gaining  a  constant 5%  growth  due  to  price  sensiKvity     Conflict  of  Interests     Shelf  Space  reduced  3%  but  more  shelf  space  is  needed  for  new  innovaKons   Incentives & Win-Win situations •  ImplemenKng  a  “Just  in  Time”  IT  Plaqorm  to  sinchronize  and  diminish  stock   •  Invest  in  Retailers  Stores  with  POS  material  (stands,  layouts)   •  In  store  acKviKes  to  promote  new  usages  and  recipes  using  Brannigan  
  • 28. PRICE Keep the price to maintain Brand Image and perceived higher quality Compromise Effect graph Private  Label   50%   Target  Product   Ready  to  Eat  Soup   50%   Deli  Packaged  Soup   + 20%   70%   *EvaluaKons  depend  on  the  context   10%  
  • 29. PROMOTION Based  on  Pull  Strategies  to  incenKvize  sales  in  Retail  Stores    
  • 30. IMC Campaign: 6M’s Message Market FragmentaKon  and  growing  new  trends   has  caused  a  change  in  the  strategy     Mission ReposiKon  the  brand  as  an  innovaKve   company  that  owns  the  leadership  by   increasing  the  life  quality  of  its   consumers.   “Brannigan,  the  soup  that  cares  for  you,  just   like  a  mother  would,  every  =me,  everywhere”.     Tone:  emoKonal     Second  Stage:  new  commercials  to  create   brand  awareness  of  the  new  products  showing   funcKonal  benefits     Tone:  Humorous       Also,  special  promoKons  and  offers  will  be   made  year  wide  depending  on  the  product   offerings  and  staKons  to  increase  sales  on   specific  products.  
  • 31. Media ATL  and  Digital     Money $170  million  budget  for  markeKng  expenses  of   year  2013     Measurement GRP´s  (frequency  x  coverage)  and  impacts    
  • 32. Sales F orce Hunters  vs.  Farmers   Target:  Increase4%  sales  earnings  per  year   ObjecKve:  Reorganize  the  sales  force   A  20-­‐80  division  (20%  farmers  -­‐  80%  hunters)  to  increase  the  search  and   acquisiKon  of  new  retail  partners       IncenKvize  the  sales  new  star  products  without  leaving  RTE  soups  behind     Salaries:  Fixed  and  an  increased  percentage  of  the  variable  part.  Bonuses  will   be  provided  if  year  sales  objecKves  
  • 33. DIGITAL MARKETING STRATEGY
  • 34. Owned Media OBJECTIVE Increase  sales   Engage  consumers   Offer  value   Improve  brand  image     Paid Media Earned Media
  • 35. •  New  direct  channel  (NO  intermediary)     •  24/7  availability  to  shop   BENEFITS •  Enables  possibility  of  consumer  data  to  offer  cross   promoKons  or  related  products  (like  amazon)   •  CommunicaKonal  tool  to  engage  with  customers   •  Offer  value  and  increase  brand  awareness  
  • 36. 7 CONCLUSIONS & TAKEA AYS . W •  Analize  the  Context:  (Porter´s  five  forces,  SWOT  analysis,  BCG  product  matrix,  Ansoff’s)     Understand  the  company  to  idenKfy  possible  strategies   Seek  for  consumers  desires  and  needs,  and  create  value  with  soluKons   •  QuanKtaKve  analysis  must  be  made  to   forecast  possible  outcomes   •  QualitaKve  analysis  is  imperaKve  to   understand  the  changing  percepKons  of   consumers   •  Short  term  projecKons  are  important,   bosses  and  stockholders  demand  it   •  Seek  for  deeper  understanding  of  the   market  in  the  long  term   … And finally Adjust, Cope and Modify!
  • 37. THANK YOU! Juan Manuel Restrepo Davies Mª Concepción Aragonés Cabeza

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