Class assignment on Brannigan Foods as a business.

1. BRANNIGAN FOODS
Andrew Marsha Mulia
MGMT 582-42 - amm657

2. EXECUTIVE SUMMARY
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TOP 5 DECISION CRITERIA
RECOMMENDATION: Pursue Mackey’s proposal as it has high short-term gains with strong long-
term growth.
TIPHA – SUPPORT TRENDY
PRODUCTS
MACKEY – ACQUIRE A PRODUCT
LINE
CHONG – INVEST IN NEW
PRODUCTS
PUGH – INVEST IN CORE PRODUCTS
PRODUCTS
PROs CONs PROs CONs PROs CONs PROs CONs
 Safe choice
that is
than base
 Builds on
brands with
high market
potential
 Does not
meet 3%
target
increase in
profit for
year
 Diversified
approach
limited
resources
 Well-
with short-
term and
long-term
growth
 Meets 3%
Increase in
profit for
year
 Acquisition
process
take longer
than
anticipated
 Past
acquisitions
took some
time to show
results
 Has
to develop
future-proof
new
 Meets 3%
Increase in
profit for
year
 Very low
success rate
for new
products for
the industry
 Additional
spendings
must be
invested for
every new
product
 Has highest
potential for
increased
sales and
profits in the
short-term
 Builds on
core
competencie
and a
shareholder
pleaser idea
 Does not
address
issue of
consumptio
decline
 Does not
meet 3%
target
increase in
profit for
year
PROPOSAL COMPARISON
Timeframe Manages Risk Future Looking
and Resilient
Synergizes with
Core Competencies
Continued Growth

3. MARKET & CUSTOMER ANALYSIS
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MARKET GROWTH
High Low
MARKET
SHARE
Strong
Healthier
Ready-to-eat
Soups
Ready-to-eat
Soups
Weak
Deli Soups
Dry Soup Mixes
New Flavors
Soup
Meal-in-a-
MARKETS/ CUSTOMERS
Old New
PRODUCTS/
SERVICES
New
Low Sodium and
Fiber-enriched
Ready-to-eat
Wet Soups
Dry Soup Mixes
Fast & Simple
Meal-in-a-
Heart Healthy
Soups
Old
Lower Prices on
Ready-to-eat
Wet Soups
New Flavors
or Variations
Boys and Girls
Love Soup
Campaign
KEY INSIGHTS – PORTFOLIO MATRIX
 Only 1-2 question mark segment should be
invested
 Meal-in-a-pouch should be divested and
KEY INSIGHTS – GROWTH OPPORTUNITIES
 New product and markets could address industry
problem
 Old product and new customer could become

4. STRATEGIC GAMEBOARD
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MARKET ORIENTATION
Micro Macro
BASIS
OF
COMPETITION
Innovate
New Packaging for
RTE Soups aside
from Cans
New Varieties of
Flavors and
Soup Subscription
Model as part of
Lifestyle and
Wellness
Conform
All Natural and
Organic
Low-sodium,
Enriched Fiber and
Healthier Options
Improved Cooking
Methods to better
retain Flavors and
Nutrition
Higher Quality
Ingredients
KEY INSIGHTS:
 With consumers increased awareness to
the importance of health and fitness,
Brannigan Foods needs to place RTE
soups as an indispensable part of a
healthy diet.
 This means it needs to rebuild its brand
from a canned, easy and low nutrition
product to a healthy, easy and high
nutrition product.
 They can do this by investing into their
core capabilities of sourcing better
ingredients, cooking in a less invasive
method and better packaging.

5. FINANCIAL OVERVIEW
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Brannigan Foods CLARK TIPHA MACKEY CHONG PUGH
Base Case % of Net
Sales
Branniga
n
RDF Total Low High
U.S. Soup Division 2011 2012 2013 2013 2013 2013 2013 2014- 2012 2013 2014 2015 2013 2013
Sales Growth/ Decline -2.02% -0.64% 0.91% 3.43% 0.50% 0.80% 1.00% -2.65% 12.31%
Net Sales 3,034 2,973 2,913 100% 2,954 2,964 36 3,000 3,075 2,973 2,988 3,012 3,042 2,894 3,356
Cost of Goods Sold 1,669 1,635 1,602 55% 1,602 1,630 20 1,650 1,691 1,635 1,643 1,655 1,669 1,685 1,886
Contribution Margin 1,365 1,338 1,311 45% 1,352 1,334 16 1,350 1,384 1,338 1,345 1,357 1,373 1210 1,470
Adv. & Promo 189 178 170 6% 188 178 11 189 179 178 178 183 186 190 190
Other Mktg, R&D, 236 238 238 8% 220 238 251 240 246 246 246 238 238
Fixed Costs 425 416 408 14% 408 416 431 418 424 429 432 436 436
Operating Income 940 922 903 31% 944 918 953 920 921 928 941 782 1,042
Overhead 625 627 600 21% 647 611 633 627 615 620 627 596 691
Net Earnings 315 295 303 10% 297 307 -3 305 320 293 306 308 314 186 350
Decrease/ Increase in 2 10 25 -2 13 2 7 -109 55
Profit % Growth 0.68% 3.34% 8.43% -0.68% 4.25% 0.70% 2.31% -37.11% 18.79%
/5 Years 2.21%
Additional Data
Increased Adv & Promo 18 20 20
Acquisition Cost 29.4
Sales Cannabilization 0.3%
Gross Profit 4
Additional Development 2
Market test & launch 6
On-going A&P support 5 3
New Net Sales 15 24 30
Incremental Contib. 7 12 16
Quantity Sold Forecast 1600 2000
Percentage of Division 0.64 0.64
Gross Profit / Can with
Price
Wholesale Cost per Can 1.14 1.14

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RECOMMENDATIONS
RECOMMENDATION
Pursue Mackey’s proposal as it will provide 3.34% in the short-run
(2013) and 2.21% yearly increase in profit in the long-run (2014
onwards).
RISKS AND ASSUMPTIONS
 Consumer preference towards Asian/ Southeast Asian flavors will
continue
 Red Dragon Food will start providing returns immediately with no
delay
 Five-year growth for Red Dragon Food is set at the average of 2.5%
(1.5-3.5)
NEXT STEPS
 Conduct due diligence on Red Dragon Food to accurately understand
target

7. Thank You
F o r yo ur time and k ind
attentio n.
4/28/2022 7