Brannigan Strategic Marketing Plan
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Transcript of Brannigan Strategic Marketing Plan
BRANNIGAN FOODS
A Strategic marketing plan
Bent Clark’s dilemma
• Sales
• Market Share
• Profitability
PROFIT GROWTH BY 3 TO 4 PERCENT
Bent Clark’s goal
Brannigan’s situation
CUSTOMERSBaby Boomers, Working
mothers
COMPETITIONRoarin Cajun foodRed dragon foodBrothers gourmet
Private labelled soups
COLLABORATIONSRetailers offering shelf
space
Porter’s 5 forces
1. Rivalry among existing soup sellersCompetitors offering same products & private label
Porter’s 5 forces
2. Threat of new entries into the marketDecreasing shelf space as competition makes larger investment on promotions
Porter’s 5 forces
3. Product SubstitutesRestaurants & brands catering to the business of fast food
Porter’s 5 forces
4. Bargaining powers of buyersVaried choices and enticing price options
Porter’s 5 forces
5. Bargaining powers of suppliersInflation and quality of products to offer
S.W.O.T
S
TO
WMarket leaders
Well known brand
Adept to American culture
Loyal customer base
Niche target
Low health quotient
Declining sales / profits
Dis-integrated framework
New product varients
Cater to health
New target customerSegmenting
Improved retailer network
Private Labels
New market entrants
Substitute avenues
Shift in customer loyalty
ALTERNATIVES PRESENTED TO BENT
Efficacy of the proposed plans
Alternative 1
• Increased attention to Simple Meals, Heart Healthy Soups & Dry Soups
• Increase in advertising cost by 18%
Tearing down Alternative 1
• In sync with growing target segment
• Acknowledges shift in consumer preference on the health route
Tearing down Alternative 1
• Undermines the ‘Cash Cow’ which accounts of 40% of sales
• Decreases profits simultaneously
The above chart in Exhibit 1 indicates that the company will incur a loss of about 4 percent
Alternative 2
• Acquisition of smaller firms to enter healthy and convenient segments
• Aims at capturing companies that have a growing market share
Tearing down Alternative 2
• Zero investment in research and development
• Lowering risk of cannibalization
Tearing down Alternative 2
• Investment into acquisition with uncertain future
• Previous acquisition of Anabelle is exemplary
The above chart in Exhibit 2 indicates that the company will incur a loss of about 7 percent per year
Alternative 3• Invest in research & development
• Increase advertising and promotion costs
• Milk the cash cows & subsidize the investment of star products
• Suggests new flavors to appeal to target audience
Tearing down Alternative 3
• Investments will boost product appeal in terms of taste and benefits
• Add new products to RTE segment will boost company profit
Tearing down Alternative 3
• 1/10 ration success for innovative products
• New product addition is contrary to reducing shelf spaces
The above chart in Exhibit 3 indicates that the company will incur a loss of about 2 percent per year
Alternative 4• Increase in marketing expenditure to
increase brand awareness
• Price decrease of products in RTE by 5 cents
• $22MM investment in capital to enhance manufacturing plant’s efficiency and cutting production costs
Tearing down Alternative 4
• Focused on core product (RTE)
• Reduced risk of introducing a new product that might possibly fail
Tearing down Alternative 4
• Price reduction might hamper brand image
• Huge investment in manufacturing plants might not add any significant value
The above chart in Exhibit 4 indicates that the company will be increasing profits for the next 3 years
PROPOSED ALTERNATIVE
Bent’s possible solution from the recommendations
ALTERNATIVE 3
ALTERNATIVE 4
Secures long term growth in profit
Investing in RTE expands its lifecycle
SegmentationSegment Demographic Psychographic BehavioralBaby Boomers High income Health oriented Loyal to brand
Educated Palettes
High incomes Brand image conscious and prefer premier quality
Quality concerned
Millennial Medium incomes Enjoy meals at affordable price Price concerned
Working Mothers
Medium high incomes
Health oriented towards their children
Quality sensitive
Youth No incomes Love savory meals Quality sensitive
Research indicate38 % millennial eat soup as a snack78 % think soup is healthy / low calorie61 % take low sodium into consideration
MARKETING MIX FOR BRANNIGAN
Understanding the 4P’s
PRODUCT
Packaged deli soups with health
New flavours enhancing taste quotient
Blended with noodles & tomatoes, etc
Microwave ready to eat soups
BRAND POSITIONING“Ever more, healthier ever”
PLACE
• Increased presence at retailers
• Increased shelf space
• Available online for purchase
• Sampling outlets outside avenues where your target audience visit often
PRICE
• Price of RTE soups to not be meddled with
• Introduce premier soup brand that’ll cater to high income customers to increase profits
• Building compromise effect amongst consumers
PROMOTION
• ATL activities• In Store promotions• Promotion across digital media• TVC with the message inclined on
health route• Outdoor and print media promotions• Incentivizing sales force
Digital Marketing Promotion
Start a youtube channel Vlogging on health concepts