"#$%%&'$% ())*+

+,#$,-'&. /$#0-,&%'
12$%%&%'













lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
!
1#)"2-/ +,$,-/-%,

8erL Clark, vlce-presldenL and general manager of 8rannlgan lood Soup's ulvlslon, has
Lo declde whlch of Lhe four alLernaLlve plans hls Leam members have proposed should
be lmplemenLed ln order Lo reverse Lhe lndusLry's sLeady decllne as well as Lhe
dlvlslon's sales, markeL share, and proflLablllLy decrease for Lhe lasL Lhree years. Pe has
Lo move Lhe dlvlslon's growLh back Lo a 3-4 aL Lhe end of Lhe flscal year.

$%$23+&+ )( ,4- +&,5$,&)%

!"#$%&'! 8rannlgan ls a company LhaL has been operaLlng for over 100 years. lL has a
Soup ulvlslon whlch has experlenced a decrease ln lLs proflLablllLy and needs Lo creaLe
a new sLraLegy Lo sLop Lhe decllnlng sales and markeL share lL has been experlenclng. lL
ls lmporLanL Lo hlghllghL LhaL Lhe soup dlvlslon ls Lhe cash cow (accordlng Lo Lhe
8osLon ConsulLlng Croup producL maLrlx) of 8rannlgan loods, reachlng up Lo 40 of
Lhe company's LoLal sales.

1he mosL proflLable producL caLegory Lhls dlvlslon has ls Lhe 8eady Lo LaL Soups (81L),
whlch accounLs for a LoLal of 71 of Lhe LoLal revenues, ($210MM ln LoLal). 1he Soup
ulvlslon has oLher producL and brand segmenLs such as: ury Soups, PealLhler Soups
and Lhe lasL & Slmple Meals.

llve years ago, a soup company named Anabelle was acqulred Lo broaden Lhe range of
producLs offered by lnLroduclng Lhe lasL Meal caLegory, and Lhe sLraLegy LhaL has been
followed durlng Lhe pasL few years has been Lo sLrongly lnvesL ln ury Soups, PealLhler
Soups and Lhe menLloned lasL Meals.

8egardlng brand awareness and value percelved by cusLomers, 8rannlgan ls behlnd
compeLlLors ln Lhe followlng aspecLs:
PealLh Lrends
uleL clalms
Convenlence offerlngs
llavors - speclally popular reglonal ones
Seasonal producLs ouLslde of cold weaLher
lor reLallers Lhe company doesn'L seem lnnovaLlve nor proflLable.

!()*"#+,)! A facL Lo polnL ouL ls LhaL 8aby 8oomers are Lhe larger and mosL loyal
segmenL buL Lhey are geLLlng older and Lhelr preferences are evolvlng lnLo llvlng
healLhler llfesLyles and consumlng, ln Lhe case of Lhe soup dlvlslon, more salubrlous,
low-sodlum based producLs. As a counLer parL, Lhls added value ls noL percelved by
younger LargeL segmenLs of Lhe populaLlon, whlch look ouL for oLher lncenLlves.

ln general Lerms, consumers are seeklng for lnnovaLlons ln Lhe secLor and new flavors
as well.

lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
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!"#$+*-*",)! new small compeLlLors are enLerlng Lhe markeL wlLh more convenlenL,
healLhler soups and new flavors, whlch are galnlng popularlLy among cusLomers,
speclally Lhe Mexlcan and Aslan LasLes.

Some of Lhe small compeLlLors LhaL represenL an opporLunlLy for acqulslLlon and
lncrease of Lhe brand porLfollo of 8rannlgan are 8oarln' Ca[un loods, 8roLhers
CourmeL and 8ed uragon loods, whlch ls Lhe opLlon Lhe company ls sLrongly
conslderlng.

lurLhermore, oLher lmporLanL compeLlLors, whlch represenL a clear LhreaL Lo Lhe
company, are Lhe rlvaLe Labeled soups, whlch have been lncreaslng Lhelr sales by 3
over Lhe pasL several years. lL ls lmporLanL Lo sLaLe LhaL anoLher drawback for
8rannlgan ls LhaL reLallers are decreaslng Lhe company's shelf space by 3 on a yearly
basls ln order Lo provlde exLra space Lo Lhelr own prlvaLe labeled producLs.

!"..%/",%*",)! 8eLallers are a very lmporLanL parL for Lhe sLraLeglc markeLlng declslons
of 8rannlgan, Lhey provlde Lhe adequaLe channels Lo reach Lhe end consumers.
8eLallers and 8rannlgan musL work hand ln hand ln order Lo lncrease neL proflLs. 1he
dls[uncLlve ls LhaL Lhe relaLlonshlp ls becomlng eroded slnce 8rannlgan lnLends Lo have
more shelf space for new producLs and reLallers are decreaslng Lhe shelf space
avallablllLy Lo lnLroduce Lhelr prlvaLe labeled producLs.

1he adverLlslng sLraLegy has been focused mosLly on pull LacLlcs, lnvesLlng ln
generaLlng brand awareness. ?eL, Lhe push LacLlcs, when lL comes Lo Lhe dlrecL
relaLlonshlp wlLh reLallers, are noL efflclenL and can be a good polnL Lo emphaslze on,
for fuLure negoLlaLlons.

!"&*+0*! As sLaLed before, sales from Lhe secLor have been decreaslng. 1he loyal
populaLlon (baby boomers) ls becomlng older and Lhe new generaLlons of consumers,
llke Lhe mlllennlal generaLlon, have noL been LargeLed yeL. ln addlLlon Lhere ls an
lncreaslng concern ln socleLy for eaLlng healLhy and prevenLlng obeslLy.

1here has also been an lncremenLal shlfL of demand for fasL and slmple meals LhaL can
be cooked wlLhouL Laklng Loo much Llme slnce peoples llfesLyles are becomlng more
focused on work and on an efflclenL use of spare Llme. lL ls lmporLanL Lo noLe LhaL
worklng moLhers are a new segmenL LhaL has lncreased over Lhe pasL year and sLlll
cook Lhelr food for Lhelr chlldren.


now, ln order Lo Lake a closer look lnLo Lhe rocessed lood lndusLry, ln whlch
8rannlgan operaLes, we used orLers flve forces Lool Lo analyze Lhe mlcroenvlronmenL
and Lhe compeLlLlveness LhaL 8rannlgan ls faclng.

1-2%.,' %#"&4 +0-)*-&4 )"($ )+..+,)5 8ased ln our knowledge and Laklng as a reference
Lhe real markeL, rlvalry ln Lhe rocessed lood lndusLry ls qulLe hlgh slnce Lhere are
many companles compeLlng on prlce, quallLy, LasLe, healLh facLors, producL lnnovaLlon,
lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
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and producL usages and beneflLs. 1he maln challenge ls Lhe facL LhaL all Lhe
compeLlLors provlde Lhe markeL wlLh almosL Lhe same producL range.

ln addlLlon, prlvaLe labels are also sLarLlng Lo represenL a LhreaL for 8rannlgan slnce
reLallers are offerlng cheaper brands and producLs. 1he only way Lhe company seems
Lo be compeLlng wlLh reLallers ls by offerlng hlgher quallLy and probably Laklng
advanLage of economles of scale.

67,+%* "8 &+9 +&*,%&*)! 1he LhreaL of new enLranLs ls relaLlvely low slnce mosL of Lhe
companles of Lhls lndusLry are large and accounL for an lmporLanL parL of Lhe markeL
share. 1he maln barrler enLrles are:
Plgh levels of adverLlslng and promoLlon lnvesLmenL ln order Lo generaLe brand
awareness.
ulfflculLles obLalnlng shelf space. 8eLallers prefer known brands slnce Lhey are
Lhe ones LhaL can afford lnLenslve communlcaLlon campalgns as well as polnL-
of-sale promoLlons ln order Lo generaLe demand and hence, sales volume.

67,+%* "8 )(/)*-*(*+ $,":(;*)! 1hls LhreaL ls relaLlvely hlgh slnce Lhere are many fasL
food resLauranLs LhaL sell Lhls Lype of producLs, whlch are even lncreaslng due Lo a
shlfL ln socleLy's values, whlch are becomlng more occupled wlLh work and wanL Lo
lnvesL Lhe smaller amounL of spare Llme Lhey have ln Lhlngs oLher Lhan cooklng.
lurLhermore, Lhere are oLher producLs LhaL saLlsfy Lhe same need of a qulck, LasLy and
cheap course.

<%,4%-&-&4 $"9+, "8 /('+,)5 CusLomers power ls hlgh slnce Lhey are demandlng more
lnnovaLlve producLs and new flavors. ln addlLlon, due Lo Lhe recesslon, Lhey also seek
for cheaper prlces, whlch fosLers compeLlLlon among producers.

<%,4%-&-&4 $"9+, "8 )($$.-+,)! We assume LhaL suppllers have some power slnce Lhey
can vary Lhe quallLy of Lhe raw maLerlals. AnoLher facLor Lo Lake lnLo conslderaLlon ls
Lhe prlces LhaL suppllers charge, due Lo lnflaLlon Lhey would probably ralse Lhelr prlces
unless 8rannlgan bullds wln-wln relaLlonshlps wlLh Lhem.


And flnally we made a SWC1 analysls Lo Lake a closer look aL 8rannlgan sLrengLhs,
weaknesses, opporLunlLles and LhreaLs Lo ldenLlfy posslble new sLraLegles and
lmplemenLaLlon plans.

=*,+&4*7)5
8rannlgan ls Lhe currenL markeL leader wlLh a hlgh markeL share.
lL has hlgh brand awareness and wlLhholds very good resulLs ln Lhe Lop of mlnd.
Condensed and 8eady Lo LaL soups are a parL of Lhe Amerlcan culLure and ls
conslsLenL ln Lhe all-around Amerlcan dleL.

>+%?&+))+)5
uecrease ln sales over Lhe pasL Lhree years.
lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
%
A poor [ob ln LargeLlng new segmenLs of Lhe markeL derlved from changes ln
socleLy's behavlors and values.
lnLernal Leams of llnance, MarkeLlng and Sales, 8&u, and Slmple Meals unlLs
are noL lnLegraLed wlLh each oLher, Lhls mlghL derlve form a lack of
communlcaLlon beLween Lhe Leams.

@$$",*(&-*-+)5
lnnovaLe wlLh new producLs LhaL are ln llne wlLh consumers needs and LhaL wlll
boosL sales up Lo a 3-4 lncrease.
CeneraLe creaLlve soluLlons wlLh reLallers Lo creaLe wln-wln slLuaLlons.

67,+%*)5
rlvaLe labels grow sLeadlly 3 per year and reLallers seek new shelf space for
Lhelr producLs, reduclng Lhe shelf space avallablllLy for 8rannlgan.
new compeLlLlon ls enLerlng Lhe markeL wlLh dlsrupLlve and lncremenLal
lnnovaLlons LhaL LhreaL 8rannlgan's leader poslLlon and LhaL have eroded lLs
sales.
A lack of coherenL LargeLlng, segmenLaLlon and poslLlonlng has creaLed a gap
beLween Lhe producL offerlngs and whaL consumers really wanL.


1he case sLaLes LhaL four members of dlfferenL deparLmenLs of Lhe soup dlvlslon
proposed posslble soluLlons Lo sLop Lhe decllne ln sales and markeL share of
8rannlgan's soup dlvlslon. We sLaLed Lhelr pros and cons and made a quanLlLaLlve
analysls of Lhe neL earnlngs forecasLs and cash flows Lo Lake Lhe besL posslble declslon
for Lhe company.

$2,-#%$,&6-+

78 &9:;<= >9 =?; @ABC>9@ <;D=BA<
SrlkanL 1lpha, dlrecLor of Lhe Slmple Meal unlLs, proposes Lo emphaslze Lhe companys
efforLs ln Lhe Slmple Meals, PearL PealLhy Soups and ury Soups, by lncreaslng an 18
Lhe lnvesLmenL ln adverLlslng.

"#$%: 1he sLraLegy focuses on producLs and brand LhaL LargeL growlng segmenLs of Lhe
markeL. 1he consumers are beglnnlng Lo shlfL lnLo healLhy llfesLyles and easy Lo
prepare meals due Lo Llme consLralns ln Lhelr worklng schedules, and lL works perfecL
wlLh SrlkanL's dlvlslon. (lL ls lmporLanL Lo undersLand Lhe personal moLlvaLlons when
analyzlng all Lhe posslblllLles).

&$'%: 1he sLraLegy focuses on sLar producLs" buL leaves Lhe cash cow" (ready Lo eaL
soups) behlnd. 1hls ls a mlsLake ofLen made because sLar producLs wanL Lo be
promoLed buL lf Lhe cash cow", whlch flnances Lhe sLar producLs", loses proflL, Lhe
subsldy cannoL conLlnue. ln addlLlon, prevlous experlence wlLh Annabelle's acqulslLlon
process was slowly plcklng up buL dld noL meeL Lhe expecLed growLh forecasLs.

lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
&
ln Lhe charL shown below we can see LhaL wlLh Lhls sLraLegy 8rannlgan's neL earnlng
wouldn'L lncrease, lndeed Lhey would be reduced by a 4. 1hls ls why Lhls alLernaLlve
ls noL a good one regardlng Lhe goal of lncreaslng 3-4 Lhe neL earnlngs. (LxhlblL 1
shows Lhe calculaLlons done ln order Lo do Lhls forecasL)





E8 $DFG>A; HABIGD= J>9;< =B DBKHJ;K;9= =?; DBA; @ABC>9@ <;D=BA<
Clalre Mackey, dlrecLor of llnance and lannlng, proposlLlon ls Lo buy ouL small
companles Lo enLer healLhler and convenlenL segmenLs LhaL have new flavors and LhaL
8rannlgan's producL porLfollo does noL have. lL ls lmporLanL Lo undersLand Lhe
slLuaLlon of Lhe soup dlvlslon, Lhese new lnlLlaLlves mlghL be growlng ln markeL share
buL Lhelr fuLure ls uncerLaln.

"#$%! 1he acqulslLlon mlghL seem poslLlve slnce Lhe lnvesLmenL ln 8&u ls llLerally null.
lf Lhe brands LhaL are acqulred are kepL, Lhere ls an lmporLanL reducLlon ln
cannlballzaLlon effecLs.

&$'%! A mayor lnvesLmenL has Lo be made ln order Lo acqulre a new company.
SomeLlmes Lhe synergles beLween Lhe companles are noL sLable enough and mlscues
ln Lhe llnes of producLlon could occur. 1he pasL acqulslLlon of Annabelle's dld noL meeL
Lhe expecLaLlons, so Lhe board of dlrecLors mlghL noL look aL lL wlLh enLhuslasLlc eyes.

ln Lhe calculaLlons carrled ouL we observed LhaL Lhls sLraLegy wasnL proflLable elLher
slnce 8rannlgan's neL earnlng would be decreased by an average of 7 per year.
(LxhlblL 2 shows Lhe calculaLlons done ln order Lo do Lhls forecasL)




lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
'
L8 &9:;<= >9 BA@M9>D @ABC=? NABK >9=;A9MJJO I;:;JBH;I 9;C HABIGD=<
Anna Chong, Chlef lnnovaLlon Cfflcer, shows an alLernaLlve by lnvesLlng ln 8&u and
adverLlslng and promoLlng new producL enLrles. She ouLllnes LhaL lL ls lmporLanL Lo
mllk Lhe cash-cows" and subsldlze Lhe lnvesLmenL of Lhe sLar producLs". She
proposes very orlglnal ldeas, llke new flavors LhaL are appeallng Lo Lhe growlng
demands of Lhe publlc, new lnnovaLlve packages and new usages of Lhe soups.

"#$%! Crlglnal ldeas, and no need Lo lnvesL heavlly on acqulrlng a small company, whlch
avolds Lhe rlsk of mlscues ln Lhe producLlon llnes. 1he new lnnovaLlons LargeL dlfferenL
segmenLs for Lhe soup dlvlslon, speclally Lhe growlng caLegorles for healLhy meals and
acLlve llfesLyles. Cne lmporLanL lnnovaLlon ls Lo add new producLs for Lhe 8eady Lo LaL
caLegory, whlch ls Lhe mosL proflLable of Lhe company.

&$'%: Cnly one ouL of Len lnnovaLlve producLs acLually succeeds ln Lhe markeL and
becomes an esLabllshed producL ln Lhe companys porLfollo, Lhe remalnlng nlne do noL
lasL longer Lhan Lwo years. lL ls very dlfflculL Lo asslgn exacL cosLs Lo Lhe producLs LhaL
were creaLed from lnslde Lhe company. Moreover, addlng new producLs wlLh Lhe
dlmlnlshlng shelf space ln Lhe reLaller sLores represenLed anoLher challenge for Lhls
plan slnce new producLs would need a reducLlon of Lhe shelf space from Lhe 8eady Lo
LaL soups.

WlLh Lhls alLernaLlve we can see LhaL once agaln 8rannlgan's neL earnlngs wouldn'L be
lncreased buL lnsLead decreased a 2 on average per year. (LxhlblL 3 shows Lhe
calculaLlons done ln order Lo do Lhls forecasL)




P8 &9:;<= >9 =?; DBA;
8ob ugh, dlrecLor of MarkeLlng and Sales, focuses hls sLraLegy on an lncrease ln Lhe
markeLlng expendlLure by $20MM Lo lncrease brand awareness and resLore lL Lo
prevlous numbers. Pe also sLaLes a prlce decrease of Lhe 8eady Lo LaL soups by 3 cenLs
and proposes a $22MM lnvesLmenL ln caplLal Lo enhance Lhe manufacLurlng planLs'
efflclency and cuL producLlon cosLs.

"#$%! 1he rlsk of lnLroduclng new producLs, LhaL mlghL noL be effecLlve ln Lhe markeL, ls
reduced by 100 slnce lL focuses on core producLs, prlmarlly Lhe 8eady Lo LaL
producLs, whlch are Lhe mosL successful producLs of Lhe soup dlvlslon.

lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
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&$'%: rlce reducLlon would harm Lhe premlum brand lmage 8rannlgan already has.
1he lnvesLmenL ln Lhe manufacLurlng planLs and ln markeLlng adds up Lo $42 mllllon, a
heavy lnvesLmenL LhaL does noL provlde added value Lo Lhe currenL sLraLegy, whlch ls
clearly falllng.

ln Lhls case Lhls alLernaLlve seems proflLable, we can see LhaL 8rannlgan's neL earnlngs
wlll be lncreaslng durlng Lhe nexL 3 years. (LxhlblL 4 shows Lhe calculaLlons done ln
order Lo do Lhls forecasL)




#-.)//-%*$,&)%

8ased on Lhe lnvesLlgaLlon and daLa analyzed for all Lhe alLernaLlves, we Lhlnk LhaL Lhe
besL alLernaLlve ls a mlx of Lhe opLlon Lhree and opLlon four. lL ls lmporLanL Lo
undersLand LhaL Lhese opLlons alone may noL generaLe a sLable and sLeady growLh ln
Lhe long Lerm due Lo posslble flucLuaLlons ln Lhe markeL Lrends.

AlLhough opLlon four does look proflLable, quallLaLlve analysls for Lhe long Lerm such
as brand healLh, brand equlLy and brand percepLlons ln Lhe consumers mlnds, are noL
addressed properly and wlll hlnder Lhe company's growLh ln an ever changlng and
consLanLly fragmenLlng markeL.

As managers, we have a hollsLlc vlew of Lhe whole conLexL and undersLand LhaL lL ls
lmporLanL Lo relnforce Lhe cash cow" of Lhe dlvlslon whlch are Lhe 8eady Lo LaL Soups
(opLlon 4), buL we also undersLand LhaL Lhe leader poslLlon ln Lhe markeL obllges
8rannlgan Lo lnvesL ln 8&u due Lo Lhe changlng Lrends and needs of Lhe markeL
(opLlon 3).

lL ls lmporLanL Lo lnvesL ln markeLlng Lo make Lhe 81L soups sLrong ln Lhe markeL, and
Lo be able Lo keep flnanclng Lhe quesLlon mark" producLs, whlch wlll become sLars
and fuLure cash cows" wlLh Lhe way Lhe markeL ls growlng.

1hls mlx of boLh sLraLegles cerLlfles Lhe companys shorL Lerm goals and envlslons long-
Lerm proflLs wlLh Lhe lnvesLmenL made, slnce lL sLreLches Lhe llfe cycle of Lhe 81L
soups and boosLs growLh ln Lhe early sLages of Lhe new producLs llfe cycles.


lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
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&/12-/-%,$,&)% 12$%

uue Lo Lhe conLexL and presenL slLuaLlon of Lhe company, Lhe mosL lmporLanL Lhlng ls
Lo sLarL wlLh Lhe baslcs, go Lo Lhe consumer needs, and flnd ouL whaL Lhey value. 1he
flrsL Lhlng Lo do ls Lo reposlLlon 8rannlgan ln consumers' mlnds by analyzlng Lhe
dlfferenL segmenLs of Lhe markeL.



lrom Lhe consumer lnformaLlon research made by Mr. ueCennaro, 38 of mlllenlals
eaL soup as a snack, 78 Lhlnk of soup as belng healLhy and a low calorle opLlon for
dleLlng, and 61 of consumers Lake low sodlum lnLo accounL when purchaslng. Lven
Lhough 8aby 8oomers are Lhe blggesL markeL and mosL proflLable, Lhe Lendency ln Lhe
fuLure ls LhaL lL wlll be reduced, so LargeLlng younger segmenLs ls lmporLanL for Lhe
long-Lerm growLh of Lhe company.


78 /MAQ;=>9@ />R

"#$()*+
1he brandlng sLraLegy wlll conslsL of lmplemenLlng an umbrella brand of 8rannlgan's
soup dlvlslon LhaL wlll glve emoLlonal values Lo Lhe producLs and brands LargeLed Lo
Lhe dlfferenL markeL segmenLs. 1hese producLs wlll lnclude funcLlonal beneflLs LhaL wlll
saLlsfy Lhelr needs.

oslLlonlng sLaLemenL:

-.$# /0$/10 23$ 0'4$5 3061+357 06%5 +$ *$$87 %69$#5 :$$(7 ;#6''<=6'>% ?$)/ <% 6 @#6'(
$: %$)/% +36+ $::0#% *$'90'<0'+7 96#<0(7 +#)%+2$#+357 6'( 90#5 =$$( A)61<+5 %$)/% +36+
611$2% *)%+$B0#% +$ 0'4$5 B061% 23<10 +68<'= *6#0 $: +30<# 3061+3 6'( +$ %690 +<B0 6+
90#5 *$B/0+<+<90 /#<*0% @6%0( $' <+% 0C/0#<0'*0 6% 106(0# <' +30 *6+0=$#5 6'( <+%
<''$96+<90 /#$()*+%D

8ased on Lhls poslLlonlng sLaLemenL, Lhe company musL enLer Lhe 21
sL
cenLury wlLh a
sLrong argumenL LhaL wlll reclalm Lhelr poslLlon as leader of Lhe markeL provldlng a
beLLer llfe quallLy offerlng Lhrough Lhelr producLs and servlces. (1he markeL research
showed Lhey fell back on healLh Lrends, dleL clalms, convenlenL offerlngs, flavors, and
seasonal producLs, whlch are growlng Lrends).

1he 8&u producLs wlll be dlvlded lnLo Lhe prevlously sLaLed segmenLs and wlll provlde
8rannlgan wlLh a E<90#%<:<*6+<$' ?+#6+0=5 based on Ansoff's MaLrlx slnce Lhe markeL
Lrends are noL maLure enough yeL, and Lhe producLs wlll be lnLroduced as new
lnnovaLlons.

lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
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ackaged dell soups: rlce premlum, for baby boomers and educaLed palaLes
Slmple healLhy welghL waLchers soups wlLh dleLary componenLs: LargeLed Lo all
buL Lhe youngsLers
AcLlve llfesLyles soups and broLhs: mlllenlals, worklng moLhers
ConvenlenL greaL meals (changlng Lhe usage of Lhe soup lnLo a sauce): worklng
moLhers
new flavored cold soups (L.g: chllled LomaLo and avocado, swans summer
soup): mlllennlal, worklng moLhers
new flavored Lerlyakl beef: mlllennlal, worklng moLhers
Chlcken noodled Soup: mlllenlal, worklng moLhers and youngsLers
Mlcrowave ready soups: mlllenlal and worklng moLhers
orLable Lhermlc mlcrowave soups cold on Lhe hands, hoL on Lhe mouLh:
mlllenlals and worklng moLhers
Savory and LasLy LomaLo meaLballs soup: ?oungsLers

Cn Lhe oLher hand, Lhe 81L soup caLegory ls Lhe mosL proflLable one and can be sLaLed
Lo be Lhe cash cow" (based on Lhe 8CC maLrlx) of Lhe company. 1he markeL ls very
maLure as well as Lhe producLs, Lhls ls why based on Ansoff's maLrlx, Lhe sLraLegy wlll
focus on peneLraLlng Lhe markeL.


"16*0
ulsLrlbuLlon ls a blg concern for Lhe soup dlvlslon. Cne of lL's ma[or problems ls LhaL
prlvaLe labels are enLerlng Lhe markeL and galnlng a consLanL 3 growLh due Lo Lhe
lncreaslng prlce senslLlvlLy. 1hls has creaLed a confllcL of lnLeresLs beLween 8rannlgan
and lLs reLall parLners ln Lhe shelves of Lhe supermarkeLs.

A 3 of shelf space has been reduced on a yearly basls, even Lhough lL ls noL Lhe ma[or
problem Lhe company ls faclng, lL ls a sympLom LhaL musL be puL lnLo conslderaLlon.
We undersLand LhaL lncenLlves musL be offered Lo Lhe 8eLall parLners Lo keep shelf
space for 8rannlgan soups, especlally for Lhe new lnnovaLlons comlng up.
ln order Lo address Lhls lssue we propose Lhe followlng acLlons:

lnvesL ln an lnformaLlon 1echnology LhaL shares lnformaLlon beLween reLallers
and 8rannlgan on sLock keeplng unlLs LhaL wlll allow an lmplemenLaLlon of a
[usL ln Llme" model for sLock replenlshmenL. 1hls way, Lhe sLock ls reduced ln
Lhe reLallers warehouse and creaLes a poslLlve effecL on Lhelr balance sheeLs.
lnvesL ln Lhe reLallers sLore wlLh promoLlonal CS maLerlals wlLh speclal
producL sLands and adverLlslng LhaL wlll drlve an lncrease ln sales.
CreaLe ln sLore acLlvlLles promoLed by 8rannlgan Lo show Lhe cusLomers new
reclpes and ways Lo use Lhe soups Lhey can flnd lnslde Lhe sLores.

We belleve Lhls lnvesLmenL ln Lhe dlsLrlbuLlon channels ls cruclal for Lhe susLalned
relaLlonshlp wlLh Lhe reLallers slnce Lhey sell a 62.9 of our LoLal producL sales and lL
creaLes a wln-wln slLuaLlon for boLh.


lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
!+

"#<*0
lL ls lmporLanL Lo sLaLe LhaL prlce ls a senslLlve lssue for 8rannlgan, slnce lL ls Lhe
currenL leader of Lhe markeL and has hlgh brand awareness and Lop of mlnd, Lhe new
brand poslLlonlng wlll relnforce Lhls lmage. 1hls ls why we wlll noL lncrease nor
decrease prlces for Lhe 81L soups.

lnsLead we are golng Lo lnLroduce Lo Lhe markeL a premlum brand of packaged uell
soups by 8rannlgan LhaL wlll be prlced hlgher Lhan Lhe 81L soups. 1hls ls a sLraLegy LhaL
mlxes rlclng, roducL and 8rand ManagemenL, and knowlng Lhe Consumer Lrends, all
LogeLher. rlce premlum wlll glve an lmage of an enhanced hlgh quallLy producL, lL wlll
lncrease Lhe producL porLfollo of Lhe brand and lL wlll also creaLe whaL we know as a
Compromlse LffecL" ln Lhe behavlor of consumers.

1hls effecL sLaLes LhaL addlng a new producL Lo Lhe seL of cholces a consumer has, can
shlfL Lhe consumers preferences, people Lend Lo compromlse and choose an opLlon
LhaL looks superlor buL LhaL has an economlc value also.
When consumers arrlve Lo Lhe shelf, Lhey wlll encounLer a markeL wlLh a prlvaLe label
soup on Lhe lefL, 8rannlgan 81L soup ln Lhe mlddle, and 8rannlgan uell Soup ln Lhe
rlghL. 1hey wlll mosL probably choose Lhe 81L soup ln Lhe mlddle slnce lL's Lhe safesL
cholce. lL glves more quallLy Lhan Lhe prlvaLe label aL a more affordable prlce Lhan Lhe
premlum dell soup.

noLe LhaL by lncreaslng consumpLlon of 81L 8rannlgan soups, we are fosLerlng sales
and proflL on Lhe shorL Lerm Lo flnance Lhe lnnovaLlve producLs lnLroduced Lo Lhe
markeL.


"#$B$+<$'
ulscounLs, offers, and promoLlons wlll be made on mass medla and dlglLal as a ")11
?+#6+0=5 Lo lncrease sales ln Lhe reLall channels of dlsLrlbuLlon. (ush sLraLegles are
sLaLed ln Lhe lace secLlon of Lhe MarkeLlng Mlx). ln order Lo reach consumers wlLh Lhe
rlghL message aL Lhe rlghL Llme, an lnLegraLed MarkeLlng communlcaLlons campalgn
skeLch has been ouLllned below uslng Lhe 6M's.

&9=;@AM=;I /MAQ;=>9@ DBKKG9>DM=>B9< 1JM9 ST KU<V
- MarkeL: 1he markeL's fragmenLaLlon and growlng new Lrends, comblned wlLh a
decllne of sales ln 8rannlgan Soup dlvlslon, has generaLed a necesslLy lnslde 8rannlgan
Lo change Lhe markeLlng sLraLegy.

- Mlsslon: 1he lnLegraLed markeLlng campalgn's mlsslon wlll be Lo reposlLlon Lhe brand
as an lnnovaLlve company LhaL owns Lhe leadershlp noL only for lLs brand buL also for
lncreaslng Lhe llfe quallLy of lLs consumers.

- 1he key message wlll be: -;#6''<=6'7 +30 %$)/ +36+ *6#0% :$# 5$)7 4)%+ 1<80 6 B$+30#
2$)1(7 090#5 +<B07 090#5230#0DF
lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
!!
1he Lone of Lhe message wlll be emoLlonal on an early sLage, buL we conslder LhaL
afLer Lhe flrsL message has had a wlde coverage and frequency on Mass Medla
adverLlslng. A 1.v. ad wlll be alred durlng Lhe Superbowl, Lhe worlds mosL vlewed
sporLlng evenL. lL ls a greaL opporLunlLy for people Lo see 8rannlgan's brand
reposlLlonlng and Lhe company's new communlcaLlon.

A second sLage of Lhe lmplemenLaLlon plan wlll lnclude new commerclals Lo creaLe
brand awareness of Lhe new producLs and wlll show Lhe funcLlonal beneflLs Lhrough a
fun and humorous Lone.

Also, speclal promoLlons and offers wlll be made year wlde dependlng on Lhe producL
offerlngs and sLaLlons Lo lncrease sales on speclflc producLs.

- Medla: 1he medla Lo be used ls above Lhe llne medla, speclally Lelevlslon, Lo lncrease
coverage ln Lhe campalgn. Soclal medla wlll also be used Lo propagaLe campalgn buL lL
wlll be explalned wlLh more deLall furLher on.

- Money: Accordlng Lo Lhe exhlblLs of Lhe case, $170 mllllon ls Lhe esLlmaLed budgeL
for markeLlng expenses of year 2013. LxhlblL 3 shows Lhe percenLage of Lhe budgeL
devoLed Lo each markeLlng acLlvlLy descrlbed ln more deLall.

- MeasuremenL: 1he campalgn wlll be measured ln C8s (frequency x coverage) and
lmpacLs. lor ulglLal, Lhe campalgn wlll be measured by lmpresslons, cllcks, lncrease of
Lhe webslLe vlslL, and acqulslLlons. Soclal medla wlll be measured on amounL of llkes,
re-posLs, re-LweeLs, shared vldeos and commenLs.

+MJ;< (BAD;
PunLers vs. larmers
ln order Lo reach an lncrease of a 4 sales earnlngs per year, Lhe sales force musL be
reorganlzed Lhoroughly. 1here ls a clear dlsLlncLlon ln Lhe sales force Leam beLween
hunLer and farmers (hunLers reach ouL for new cusLomers acqulslLlons and farmers
fosLer relaLlonshlps beLween Lhe key accounLs).

A 20-80 dlvlslon wlll be made (20 farmers - 80 hunLers). 1hls wlll lncrease Lhe
search and acqulslLlon of new reLall parLners naLlonwlde and Lhey wlll push for Lhe
new sLar producLs wlLhouL leavlng 81L soups behlnd, whlch are Lhe mosL lmporLanL
source of lncome.

Salarles wlll lnclude a mlx of flxed and an lncreased percenLage of Lhe varlable parL.
8onuses wlll be provlded Lo Lhe sales-force Leams lf Lhey meeL and surpass Lhe year
sales ob[ecLlves.






lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
!#
E8 *>@>=MJ /MAQ;=>9@ +=AM=;@O

lL ls lmporLanL Lo sLaLe LhaL Lhe way consumers behave ln Lhe sLages of Lhe buylng
process has changed drasLlcally. eople now have mulLlple Louch polnLs wlLh producLs
and brands on offllne buL also onllne communlcaLlon channels. ln addlLlon Lo Lhls polnL
ls Lhe use of lnformaLlon people search onllne Lo Lake declslons on Lhe markeL place.
1hls ls called Lhe G0#$ H$B0'+ $: I#)+3 and a few years ago lL was a Lrend, buL lL has
become a reallLy nowadays.

We, Lherefore, declded Lo creaLe a speclal polnL for ulglLal MarkeLlng, slnce lL lnvolves
sLraLegles of all Lhe componenLs of Lhe markeLlng mlx, buL LhaL dlffers ln Lhe
lmplemenLaLlon from Lhe offllne channels.

We are golng Lo use Lhe Lhree componenLs of dlglLal medla ln an lnLegraLed way.
Cwned medla (wlLh Lhe creaLlon of Lhe companys own webslLe), pald medla (Lhrough
Lhe adverLlslng and promoLlons LhaL wlll be made Lhrough blogs and dlglLal
magazlnes), and earned medla (Lhrough soclal neLworks commenLs, shared llnks and
posLs made by acLlve consumers).
1he key polnL of Lhe webslLe ls Lo lncrease sales of 8rannlgan's soups and oLher
producLs buL also creaLe a communlLy LhaL glves value Lo Lhe consumers, furLher
empowerlng Lhe brands relaLlonshlp, lmage, and poslLlve awareness wlLh Lhe flnal
cllenL.

Search Lnglne CpLlmlzaLlon wlll be made Lhrough an organlc opLlmlzaLlon uslng speclal
keywords such as 1$2 %$(<)B @6%0( %$)/%7 '02 %$)/ #0*</0%7 3061+35 %$)/% <' +30
B6#80+, or 3$2 +$ *$$8 6 :6%+ @)+ +6%+5 B061 <' JK B<')+0%. 1hese are [usL examples of
some of Lhe search words people mlghL use on Coogle, 8lng or ?ahoo. lurLher
lnvesLlgaLlon ls recommended Lo sLaLe whaL are Lhe searchlng hablLs of Lhe
consumers.

lurLher on, a Search Lnglne MarkeLlng sLraLegy wlll be made wlLh promoLlonal banners
posLed Lhrough pald medla such as blogs of key oplnlon leaders ln Lhe cooklng lndusLry
and speclallzed cooklng dlglLal magazlnes. 1hls campalgn wlll be measured ln a CosL
er Cllck basls Lo ensure reLurn of Lhe lnvesLmenL and an lncrease ln volume Lo
8rannlgan soup webslLe.

And flnally, a lacebook page wlll be creaLed Lo generaLe engagemenL wlLh consumers
and offer Lhem conLenL of value. A ?ou1ube channel wlll be creaLed wlLh 3-mlnuLe
vldeos of cooklng reclpes uslng 8rannlgan soups. A LwlLLer accounL wlll be acLlvaLed Lo
LweeL Lhe reclpe of Lhe day, or producLs of Lhe day, and new lnLeracLlons Lhe brand
has Lo furLher engage Lhe consumers. Soclal medla wlll be monlLored closely Lo proLecL
Lhe brand lmage buL wlll serve as a conLacL polnL Lo dlrecL Lhe consumers Lo Lhe
webslLe and generaLe sales.

1he maln beneflLs we see ln Lhls sLraLegy lnvolve Lhe dlsLrlbuLlon channel:
CosLs wlll decrease and marglns wlll be lncremenLed because lL ls a dlrecL sell
LhaL does noL have an lnLermedlary's fee.
lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
!$
ulglLal channel ls avallable 24/7
Addlng a shopplng carL provldes full lnformaLlon abouL Lhe consumer's
preferences, maklng lL posslble Lo offer suggesLlons for cross-selllng
complemenLary producLs (llke Lhe relaLed producLs amazon recommends)
lL serves as a communlcaLlonal Lool Lo offer relevanL lnformaLlon of new
promoLlons, reclpes, nuLrlLlonal facLs and recommendaLlons, flavors, and
packaged lnnovaLlons LhaL consumers value

Concernlng rlclng sLraLegles, prlces wlll remaln Lhe same ln dlglLal Lo keep a falr
compeLlLlon slnce Lhe company does noL wanL Lo hamper Lhe relaLlonshlp wlLh Lhe
reLallers LhaL accounL for more Lhan a 60 of Lhe companys sales (even Lhough Lhls
percenLage wanLs Lo be lowered as much as posslble Lo reduce Lhelr power over
8rannlgan).

romoLlons wlll be used Lo lncrease sales offllne, for example, redeemable coupons on
Lhe reLall sLores. 1hls can be negoLlaLed wlLh Lhe reLaller parLners. lL's a greaL
opporLunlLy for cross promoLlons, and cross selllng Lo lncrease sales ln oLher dlvlslons
of Lhe company, noL only soups.

lor furLher lnformaLlon abouL Lhe LoLal expendlLure of Lhe $170 mllllon budgeL for
2013, exhlblL 3 shows Lhe percenLages for each acLlvlLy ln more deLall.

LxhlblL 3 shows Lhe percenLage of Lhe lnvesLmenL of Lhe acLlvlLles ln Lhe markeLlng
budgeL for 2013 based on Lhe 170 mllllon glven Lo us ln Lhe case.


.)%.25+&)%+

1o wrap up Lhe case and lLs maln Lakeaways we can conclude LhaL:

A conLexL analysls uslng Lools such as 8CC producL maLrlx, SWC1 analysls,
orLers flve forces, or Ansoff's maLrlx glves a good sLarLlng polnL Lo undersLand
Lhe company and sLarL ldenLlfylng posslble sLraLegles and lmplemenLaLlon plans
lL ls lmperaLlve Lo undersLand consumers deslres and needs, and Lry Lo solve
Lhem ln Lhe besL way posslble Lo creaLe value ln Lhe producL offerlngs
CuanLlLaLlve analysls for posslble soluLlons Lo problems ln a company musL be
made Lo forecasL posslble ouLcomes, yeL Lhls analysls has Lo be supporLed wlLh
a quallLaLlve analysls Lo expecL beLLer resulLs when lmplemenLlng a sLraLegy
ShorL Lerm pro[ecLlons are lmporLanL and proflL ls a need LhaL sLockholders and
bosses demand, buL long Lerm pro[ecLlons, LhaL may noL be proflLable aL Lhe
beglnnlng buL have Lhe poLenLlal Lo break Lhrough Lhe markeL and generaLe
proflL ln years Lo come, have Lo be consldered lndlspensable sLraLegles for Lhe
sake of Lhe company's fuLure.




lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
!%
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-W4&"&, E

Assumlng LhaL Lhe 8ed uragon brand ls golng Lo be kepL as such









lL 8uslness School
!uan Manuel 8esLrepo uavles
M Concepcln Aragones Cabeza
!&
-W4&"&, L



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