La planificación estratégica de marketing Foods

BRANNIGAN FOODS STRATEGIC MARKETING PLANNING Juan Manuel Restrepo Davies Mª Concepción Aragonés Cabeza IE Business School

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

1. PROBLEM STATEMENT GOAL INCREASE 3-4% PROFIT Industry Decline Brannigan’s sales, market share, and profitability decline

2. SITUATION ANALYSIS

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

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%

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

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

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

3. ALTERNATIVES

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

With this strategy Brannigan’s net earning wouldn’t increase, indeed they would be reduced by a 4%

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.

This strategy isn´t profitable either since Brannigan’s net earning would be decreased by an average of 7% per year

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

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

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

In this case this alternaKve seems profitable, we can see that Brannigan’s net earnings will be increasing during the next 3 years

4. RECOMMENDATION

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

5. IMPLEMENTATION PLAN

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

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

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