Brannigan Foods, a century-old company, is facing declining profitability in its soup division and is exploring strategies to address this issue, including the acquisition of Red Dragon Foods, which offers healthy options and popular flavors. Despite being the market leader with significant sales in the ready-to-eat soup category, Brannigan is perceived as lacking innovation and struggling to capitalize on health trends. The document outlines various projections and options for growth, including investing in new product development, marketing, and enhancing existing product lines.

1. Group 5
Akshatha Neeraje
Arjun Parekh
Rohan Bharaj
Ronak Sharma
Pooja Rawat
Vibhu Gauba

2. Introduction
• Brannigan Foods is a 100 year old company. It’s Soup Division has experienced a decline in
profitability and has to come up with a new strategy to stop the decline.
• It has the following products
• RTE soups
• Fast & Simple Meals
• Heart Healthy
• Dry-mix soups
• According to consumers, Brannigan is perceived to be behind on the following
• Health trends
• Diet Claims
• Convenience offerings
• Flavors
• Seasonal products
• Retailers think that while Brannigan is the category leader, it is not innovative and is the
least profitable.

3. Cash Cow
RTE Wet Soups
Star
Question
Mark
Red Dragon
Foods
Dog
RelativeMarketShare
Relative Growth Rate
High
High
Low
Low
BCG Matrix

4. Acquire Red Dragon Foods (& continue using acquired brand name)
Claire Macky, Director of Finance and Planning
 Red Dragon Foods is considered to be a healthy option by the target audience, and it also caters to
the audience with some of the more favored flavors – Southeast Asian and Chinese.
 It is a growing category and a growing brand – Positive Growth Rate
 We use Red Dragon Foods brand name and hence we get their 90% of existing shelf space – Gaining
Additional Shelf Space.
Particulars
Projected
2011 2012 2013
Sales of US division 3,034 2,973 2,913
Red Dragon Foods 36 36.90 37.82
Cannibalized Sales (0.14%) 4.16 4.08
Brannigan Total Sales 3,006 2,947
COGS 1,669 1,653.16 1,620.71
Operating Income 1,365 1,353 1,326
Marketing, R&D and Selling Expenses* 425 427 419
Interest (4%) 1.18 1.18
Other Expenses 627.90 622.19 609.98
Net Earnings 312 302 296
EBITDA – $4.2M
Cost of Acquiring – $29.4M

5. Invest in Core
Bob Pugh, VP Sales and Marketing
Particulars
Estimated Projected
2011 2012 2013 2013
Sales of US division 3,034 2,973 2,913 3,141
COGS 1,669 1,635 1,602 1,728
Operating Income 1,365 1,338 1,311 1,413
Marketing, R&D and Selling Expenses* 425 416 408 436
Other Expenses 625 627 600 650
Net Earnings 315 295 303 327
• Even though the wet soup category is declining, it forms 60% of the total soup category worth $6.4
billion in the US.
• Brannigan is the leader with around 60% market share in the wet RTE category.
• RTE soups contribute 78% to Brannigan’s sale and 86% of its profit.
• 78% of the consumers in the 18-24 year category eat wet soup. Also, their average consumption per
week is 2.1 cans per week as against the national average of 1.4 cans per week.

6. Combined Strategy
Option 2 Option 4
Particulars 2011 2012
Projected Projected
Combined
Projection
2013 2013 2013
Sales of US division 3,034.00 2,973.00 2,913.00 3,141.00 3,141.00
Red Dragon Foods 36.00 36.90 37.82 - 37.82
Cannibalized Sales (0.14%) 4.16 4.08 - 4.08
Brannigan Total Sales 3,006.00 2,947.00 3,174.74
COGS 1,669.00 1,653.16 1,620.71 1,727.55 1,746.11
Operating Income 1,365.00 1,353.00 1,326.00 1,413.45 1,428.63
Marketing, R&D and Selling Expenses* 425.00 427.00 419.00 436.00 439.00
Interest (4%) 1.18 1.18 - 1.18
Other Expenses 627.90 622.19 609.98 650.19 657.17
Net Earnings 312.00 302.00 296.00 327.26 331.28

7. Annexures

8. Exhibit. Soup Consumption in US - 2011
Soup Type 2010
($ million)
2011
($ million)
Growth %
Ready to serve wet
soup
2257 2020 (10.5%)
Condensed wet soup 1893 1821 (3.8%)
Dry Soup 1366 1397 2.26%
Ready to serve broth 862 915 6.14%
Refrigerated soup 142 164 15.49%
Frozen Soup 27 46 70.37%
Deli Soup 110 140 27.27%

9. Invest in the Growing Sectors
Srikant Tipha, Director of Simple Meals Unit
• Fast & Simply and Heart Healthy gaining traction and increasing market share and can be
positioned more prominently as growing awareness about health amongst Above 50
• Possible increased sales potential by 180%
• Limited shelf space – can be solved by Dry Mix Packs
• Increased Advertising by $18 million – directly effect net profit
• Already highly invested in Annabelle
Particulars
Estimated Projected
2011 2012 2013 2013
Sales of US division 3,034 2,973 2,913 2,954
COGS 1,669 1,635 1,602 1,625
Operating Income 1,365 1,338 1,311 1,329
Marketing, R&D and Selling Expenses* 425 416 408 434
Other Expenses 625 627 600 611
Net Earnings 315 295 303 284

10. Invest in Organic Growth from Internally Developed New Products
Anna Chong, Chief Innovation Officer
• There is an increase in profits and the introduction of new products such as ‘packaged deli soups’
and ‘Active Lifestyles’ will address the growing concern for healthier options and also the threat
from delis.
• Newer flavors ensure we come across as innovative as well as satisfy customer needs for flavors
• But, the risk of failing is high as the success rate is 1/10 new products introduced.
Particulars
Estimated Projected
2011 2012 2013 2013
Sales of US division 3,034 2,973 2,913 2,988
COGS 1,669 1,635 1,602 1,643
Operating Income 1,365 1,338 1,311 1,345
Marketing, R&D and Selling Expenses* 425 416 408 421
Other Expenses 625 627 600 619
Net Earnings 315 295 303 305