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

WEAKNESSES Decrease in sales

Poor job in targeting Internal teams not

integrated

OPPORTUNITIES New products Solutions with

retailers to create win-win situations

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%  

 CONS Investment    

Not  stable  synergies  may  cause  miscues  in  the  lines  of  producKon.  

Annabelle’s  acquisiKon  did  not  meet  the  expectaKons.  

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.  

 

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

PROS Original  ideas  

No  need  to  invest  on  a  new  company  

Avoids  the  risk  of  miscues  in  the  producKon  lines  

Targets  different  segments    

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 New usages

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  

PROS Reduce  risk  of  new  product  failure  

   

D. INVEST IN THE CORE + $20MM marketing to increase brand awareness Decrease prices of the Ready to Eat soups by 5 cents

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

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  

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

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  

Even  though  Baby  Boomers  are  the  biggest  market  and  most  profitable,  the  tendency  in  the  future  is  that  it  will  be  reduced  

Targe=ng  younger  segments  is  important  for  the  long  term  growth  of  the  company  

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  

PRODUCT

   InvesKgaKon  showed  that  they  failed  on  health  trends,  diet  claims,  convenient  offerings,  flavors,  and  seasonal  products,  which  are  growing  trends).    

Branding Strategy •  Implement  an  umbrella  brand  of  

Brannigan’s  soup  division  to  give  emoKonal  values  to  the  products  and  brands  under  it.  

•  FuncKonal  benefits  will  be  different  through  the  different  products  

•  Access  new  markets  and  focus  on  innovaKon  while  improving  the  quality  of  life  

Positioning Statement

“For  people  who  enjoy  healthy,  easy  to  cook,  savory  food,  Brannigan's  Soup  is  a  brand  of  soups  that  offers  convenient,  varied,  trustworthy,  and  very  good  quality  soups  that  allows  customers  to  enjoy  meals  while  taking  care  of  their  health  and  to  save  =me  at  very  compe==ve  prices  based  on  its  experience  as  leader  in  the  

category  and  its  innova=ve  products”  

DiversificaKon  Strategy  Products  based  on  R&D    1.  Packaged  deli  soups  2.  Weight  watchers  soups  with  dietary  components  3.  AcKve  lifestyles  soups  and  broths  4.  Convenient  great  meals  (changing  the  usage  of  the  soup  into  a  sauce)  5.  New  Flavored  Cold  soups    6.  New  flavored  teriyaki  beef  7.  Chicken  Noodled  Soup  8.  Microwave  ready  soups  9.  Portable  thermic  microwave  soups  cold  on  the  hands,  hot  on  the  mouth  10.  Savoury  and  tasty  tomato  meatballs  soup  

10 NEW

PRODUCTS

PenetraKon  Strategy  RTE  

PLACEMENT

Incentives & Win-Win situations •  ImplemenKng  a  “Just  in  Time”  IT  Plaqorm  to  sinchronize  and  diminish  stock  

•  Invest  in  Retailers  Stores  with  POS  material  (stands,  layouts)  •  In  store  acKviKes  to  promote  new  usages  and  recipes  using  Brannigan  

DistribuKon  Channels  sell  62.9%  of  the  total  sales  of  Brannigan  Food  Company  

Private  labels  gaining  a  constant  5%  growth  due  to  price  sensiKvity    Conflict  of  Interests    Shelf  Space  reduced  3%  but  more  shelf  space  is  needed  for  new  innovaKons  

*EvaluaKons  depend  on  the  context  

Keep the price to maintain Brand Image and perceived higher quality

Compromise Effect graph

Private  Label  Target  Product  

Ready  to  Eat  Soup   Deli  Packaged  Soup  50%   50%  

20%   70%   10%  

+

PRICE

Based  on  Pull  Strategies  to  incenKvize  sales  in  Retail  Stores    

PROMOTION

IMC Campaign: 6M’s

Message “Brannigan,  the  soup  that  cares  for  you,  just  like  a  mother  would,  every  =me,  everywhere”.    

Tone:  emoKonal    

Second  Stage:  new  commercials  to  create  brand  awareness  of  the  new  products  showing  

funcKonal  benefits    Tone:  Humorous    

 

Also,  special  promoKons  and  offers  will  be  made  year  wide  depending  on  the  product  offerings  and  staKons  to  increase  sales  on  

specific  products.  

Market FragmentaKon  and  growing  new  trends  has  caused  a  change  in  the  strategy  

 

Mission ReposiKon  the  brand  as  an  innovaKve  company  that  owns  the  leadership  by  

increasing  the  life  quality  of  its  consumers.  

Media ATL  and  Digital  

 

Money $170  million  budget  for  markeKng  expenses  of  

year  2013    

Measurement GRP´s  (frequency  x  coverage)  and  impacts    

A  20-­‐80  division  (20%  farmers  -­‐  80%  hunters)  to  increase  the  search  and  acquisiKon  of  new  retail  partners    

 IncenKvize  the  sales  new  star  products  without  leaving  RTE  soups  behind  

 Salaries:  Fixed  and  an  increased  percentage  of  the  variable  part.  Bonuses  will  

be  provided  if  year  sales  objecKves  

Sales Force

Hunters  vs.  Farmers  Target:  Increase4%  sales  earnings  per  year  ObjecKve:  Reorganize  the  sales  force  

DIGITAL MARKETING STRATEGY

Owned Media Paid Media Earned Media

OBJECTIVE Increase  sales  

Engage  consumers  Offer  value  

Improve  brand  image    

•  New  direct  channel  (NO  intermediary)    

•  24/7  availability  to  shop  

•  Enables  possibility  of  consumer  data  to  offer  cross  

promoKons  or  related  products  (like  amazon)  

•  CommunicaKonal  tool  to  engage  with  customers  

•  Offer  value  and  increase  brand  awareness  

BENEFITS

•  Analize  the  Context:  (Porter´s  five  forces,  SWOT  analysis,  BCG  product  matrix,  Ansoff’s)    Understand  the  company  to  idenKfy  possible  strategies  Seek  for  consumers  desires  and  needs,  and  create  value  with  soluKons  

… And finally Adjust, Cope and Modify!

•  QuanKtaKve  analysis  must  be  made  to  forecast  possible  outcomes  

•  QualitaKve  analysis  is  imperaKve  to  understand  the  changing  percepKons  of  consumers  

•  Seek  for  deeper  understanding  of  the  market  in  the  long  term  

•  Short  term  projecKons  are  important,  bosses  and  stockholders  demand  it  

7. CONCLUSIONS & TAKEAWAYS

THANK YOU!

Juan Manuel Restrepo Davies Mª Concepción Aragonés Cabeza