Case: Brannigan Foods

Strategic Marketing Plan

- Brannigan Foods Soup division: Bert Clark, vice manager and general manager
- Soup industry in decline for several years: affected BF’s sales/market share/profitability in
last 3 years
- Manager emails to Clark: different opinions on how to “turn the division around”
o Srikant Tripha: focus most advertising capital into “Fast and Simple” (working moms
market) and “Heart Healthy” soup lines (health)  small lines
o Claire Mackey: acquire companies to diversify product lines (Mexican, and Southeast
Asian flavors gaining popularity)
o Anna Chong: focus on current products and invest more in them, and add new
products from R&D that promote heath, fast and simple, and convenience
o Bob Pugh: focus on price cuts and increasing capital investment in Advertising &
Promotion (especially targeting younger gen) and Operations (manufacturing)
- Julian DeGennaro “State of the Soup Industry” summary report
o Baby boomer generation, entering retirement, are most loyal
o Trend toward healthy foods (obesity)
o Working moms: want fast, simple meals

1. Can new benefits be added to the current lines to increase their growth and profitability?
 Focus on frozen soups (70.37%) and Ready to Serve broth (6.15%): both increasing in
sales from 2010 to 2011
 Focus on RTE popular flavor soups (which make up 41% of all soup sold) – Mushroom,
Chicken Noodle, and Tomato
 New benefits: add a low sodium alternative to each of these lines to cater to healthy
lifestyle consumers

2. Does an acquisition make sense to strengthen or diversify the lines?

 I wouldn’t but if yes….then…Claire Mackey’s idea of acquiring Roarin’ Cajun Foods:
great idea because entry into Whole Foods, known for promoting/selling healthier food
alternatives, and keep brand name for minimized cannibalization, and keep the acquired
brand’s shelf space

3. What new products might Brannigan develop internally that address the health and
convenience trends? Or does Brannigan have enough new products already that can
reverse the slide if they are properly marketed?
 Internally, Packaged “deli soups” (Anna Chong idea) can be developed for convenience
and entering the deli market: launch only a couple of the R&D products (not 10), only the
most targeted to consumer needs, for lower investment and higher ROI
 Increasing investment on current products: Ready-to-Eat line, especially those that
advertise a healthy lifestyle
4. What marketing strategy should be employed in reference to each of the above and how
much should be put behind the drive for next year versus what we should invest for our
long-term objectives?
 Promotional pricing strategy: bulk pricing to consumers for canned soups (can be
stored for longer periods of time)  incentive to buy more for discounted bulk price 
might increase sales in other seasons
 Invest capital in manufacturing/operations/production: effort to increase efficiency,
lower cost of goods instead of increasing prices because consumers value soup as being a
lower price food
 0.05 per can price cut! Already increased prices by 2% yearly leading to pushback from
customers: this will increase loyalty and customer retention in the long run, and compete
with other generics in the market
 “Boys and Girls Campaign” targeting the younger generation: invest in A&P to take
advantage of this segment
 Increase R&D budget too and promote healthier RTE products

Framework used: analyzing managers’ recommendations

 The Ansoff Matrix, aka Strategic Opportunity Matrix:
- 4 growth strategies…
- Market Penetration = Bob Pugh (PTEs as cash cows, cut prices, invest capital in existing
products)
- Market Development = Srikant Tipha (idea of investing capital into marketing Brannigan
Soups to young consumers/promote healthy living) + Bob Pugh too (Boys and Girls
Campaign)
- Diversification = Claire Mackey (focus on a new acquisition = ie. acquiring Roarin’ Cajun
Foods allows BF to enter Whole Foods market & target healthy lifestyle consumers)
- Product Development = Anna Chong (focus efforts into upping the R&D budget to offer
more options to Brannigan Foods consumers)
No acquisition – offensive approach instead of defensive = offer more products, invest in R&D
instead of purchasing a company that already has products available (Investing so much capital
in something that already failed before: Annabelle’s)
- Acquiring = things can go wrong (annabelle’s) + costly + doesn’t really the core problem
(changing brand name could lead to their customer’s resistance  the problem is growing
BRANNIGAN FOODS’)
- Trend in expenses in marketing, R&D decreasing (consolidated statement of earnings)