Skip to main content
UploadLanguage (EN)Support
BusinessMobileSocial MediaMarketingTechnologyArt & PhotosCareerDesignEducationPresentations & Public SpeakingGovernment & NonprofitHealthcareInternetLawLeadership & ManagementAutomotiveEngineeringSoftwareRecruiting & HRRetailSalesServicesScienceSmall Business & EntrepreneurshipFoodEnvironmentEconomy & FinanceData & AnalyticsInvestor RelationsSportsSpiritualNews & PoliticsTravelSelf ImprovementReal EstateEntertainment & HumorHealth & MedicineDevices & HardwareLifestyle
AM
Uploaded byAndrew Marsha Mulia
PPTX, PDF323 views

Brannigan Foods Case Study

This document analyzes five strategic proposals for Brannigan Foods: Tipha, Mackey, Chong, Pugh, and the base case. It recommends pursuing Mackey's proposal to acquire the Red Dragon Food product line. This acquisition is projected to increase profits by 3.34% in the short term and provide an average yearly increase of 2.21% over five years, meeting Brannigan's profit growth targets. Potential risks include consumer preference changes and delays in Red Dragon Food providing returns. The next step is conducting due diligence on Red Dragon Food to fully understand the acquisition target.

Food◦
Download to read offline
BRANNIGAN FOODS Andrew Marsha Mulia MGMT 582-42 - amm657
EXECUTIVE SUMMARY 2 4/28/2022 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
MARKET & CUSTOMER ANALYSIS 3 4/28/2022 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
STRATEGIC GAMEBOARD 4 4/28/2022 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.
FINANCIAL OVERVIEW 5 4/28/2022 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
4/28/2022 6 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
Thank You F o r yo ur time and k ind attentio n. 4/28/2022 7