Brannigan Foods
Santhosh Varadarajan
Brannigan Foods
March 12, 2015
Problem
Brannigan Foods soup division general manager Bert Clark was in charge of bringing their company out their recent decline. The company had seen steady decline in division sales, market share, and profitability over the last three years. He was in charge of moving their division’s growth back up to 3-4% per year and his team had come up with four different plans for doing this. It was Bert’s responsibility to review the benefits and costs of each plan and choose the most effective way to grow the company.
Outside Concepts
Brannigan Foods soup division happens to be one of the most profitable and successful divisions of the company. An overall analysis of the company through a BCG matrix shows that their soup division is their cash cow. This is where they make the vast majority (40%) of their sales. Because of this, it is very important to them to keep sales in profits as high as possible for as long as possible. An industry such as the canned soup and RTE (Ready to Eat) soup industry sees very little, if any, innovation in it. Because there is little relative R&D, it is important for companies in this kind of industry to milk their cash cow for as much as possible and as long as they can. It is also important to note that their RTE product category accounts for 71% of total revenues with other divisions such as: dry soups, healthier soups, and fast & simple meals.
In regards to their brand awareness and company value, Brannigan Foods is behind the pack in relation to competitors with aspects and divisions such as health trends, diet advances, product convenience, flavors (eastern, foreign), and popular products outside of their major seasonal sales. From the perspective of their retail distribution network, they are not innovative enough for the market, and therefore not profitable. Consumers are looking for innovations in the RTE sector along with new flavors, something Brannigan is not offering
Brannigan Foods
March 12, 2015
Problem
Brannigan Foods soup division general manager Bert Clark was in charge of bringing their company out their recent decline. The company had seen steady decline in division sales, market share, and profitability over the last three years. He was in charge of moving their division’s growth back up to 3-4% per year and his team had come up with four different plans for doing this. It was Bert’s responsibility to review the benefits and costs of each plan and choose the most effective way to grow the company.
Outside Concepts
Brannigan Foods soup division happens to be one of the most profitable and successful divisions of the company. An overall analysis of the company through a BCG matrix shows that their soup division is their cash cow. This is where they make the vast majority (40%) of their sales. Because of this, it is very important to them to keep sales in profits as high as possible for as long as possible. An industry such as the canned soup and RTE (Ready to Eat) soup industry sees very little, if any, innovation in it. Because there is little relative R&D, it is important for companies in this kind of industry to milk their cash cow for as much as possible and as long as they can. It is also important to note that their RTE product category accounts for 71% of total revenues with other divisions such as: dry soups, healthier soups, and fast & simple meals.
In regards to their brand awareness and company value, Brannigan Foods is behind the pack in relation to competitors with aspects and divisions such as health trends, diet advances, product convenience, flavors (eastern, foreign), and popular products outside of their major seasonal sales. From the perspective of their retail distribution network, they are not innovative enough for the market, and therefore not profitable. Consumers are looking for innovations in the RTE sector along with new flavors, something Brannigan is not offering