This strategy can piggyback out of the 20M increase for advertisement and promotion for the RTE and the boys and girls love Soup campaign in the early stages.Check out our Privacy and Content Sharing policies for more information. Direct competitors of Brannigan have not capitalized on the healthier products successfully, which represents a good investment opportunity for Brannigan to grow market share in the latest trends. With the soup industry experiencing some challenges, it was crucial that this division brainstorm strategic initiatives to move the division's growth back in a positive direction. Nonetheless making the 4 directors work together would have a provided a team solution and a broader approach to the problem. A consumer can switch brands relatively easily and at little to no cost. Consumers who relate price to quality would prefer competitors soups that are slightly higher priced over Brannigans. Given the information in the case, what strategic course do you think the division should pursue? With Brannigan fighting to increase sales, adding another company to manage could mean more errors in the production lines and overall miscommunication. Pros: 1. External Opportunities and Threats As canned soup continues to remain a staple in the American diet, Brannigans should continue to with this tradition by offering fast, simple meals, ready to be served within minutes for an entire family. In addition, with limited shelf space in the retailer stores adding a new product represents utilize space that was previously used to sell the already successful RTE soup limiting its sales from the beginning and on top of that cannibalization will decrease sales even more. Consider the options with a short term view and long term view.
Brannigan is also actively trying to engage younger consumers. With private label products increasing every year, taking away from precious shelf space.
Understand the tension between successful consumer companies and major retail partners over shelf space and product proliferation. Brannigan can either choose to sell the newly acquired products under its own brand name or continue to sell them under the brand name of the earlier company.
Volume vs profit2. Category trend vs performance: There is a clear trend towards healthy and convenient soups which this strategy addresses.
The following challenges are the increased of health concerns amid to consumers, most soups having preservatives and high in sodium, and how many customers have either moved to fresher, healthier soups or stopped buying soups completely.
Kibin does not guarantee the accuracy, timeliness, or completeness of the essays in the library; essay content should not be construed as advice.Consumers who relate price to quality would prefer competitors soups that are slightly higher priced over Brannigans. Case study solutions by top business students. It targets the new segments of low sodium healthy soups. Its major competitors are General Mills and Unilever. Still though, he understood there was a need to remind consumers on products that had reached a mature category stage and to adequately promote new products that targeted younger, slightly more affluent consumers. Reading example essays works the same way! Pros: The aimed products are guaranteed successes and retailers will appreciate the strategy. Also, by choosing one particular direction may leave 3 directors uninvolved hence with a minor sense of responsibility. Although soup is fast and easy, it is most often high in sodium and loaded with preservatives, with important consumer segments demanding healthier options to the already popular soups.
Also he wants to invest in advertising the products and wants to optimize the plants in order to recover losses due to reduction of selling price. The three largest competitors to Brannigan includes General Mills, Inc.
This highly decreases the risk of entering a new product into the market.
Second solution Please scroll down to the bottom of this post to download the additional Excel spreadsheet!