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Strategic Marketing
Panning
Group No- 12
Amanjot| Janani| Nidhi| Prakriti
Brannigan Foods
Company
Competition
Context
100 year legacy
Small competitors
Soup division is the
Sales of the sector
entering the market
cash cow accounting
have been reducing
Walmarts private
1.4 cans avg per
for 40% of the
label soups growing
revenues
week consumption in
at 5%
RTE ,71% of the
US
Shelf space given by
Soup is a seasonal
revenues
Walmart reducing by
Anabelle acquired
buy
3%
5yr ago
Collaborator
Customers
s
Must ensure that
Sales of the sector
retailer goodwill
have been reducing
doesnt fall
Baby Boomer
Retailers would
generation, the
appreciate price cuts
patron of this sector
that may boost sales
are now retiring
Supermarkets sold
Health concerns on
62.9% of the
the rise
category
Rivalry among
existing soup
sellers
Important Pointers:
Minimum of 30% of sales to
be spent in ad & promotion
for a minimum of 3 years
Cost of acquisition refected
in the form of interest and
depreciation with a rate of 4%
Synergies (manufacturing
and operating ) could increase
the profits by 10% within 2
years
Retail Partner paradox
Retaining acquired brand
name: marketing expense is
high, retain >90% of acquired
brand shelf-space, reduce
cannibalization by 70%
Minimum of 10% ROI after 5
years of sales
Alternative I: Tiphas
Proposition: Invest in growing sectors like that of healthy soups and mealsin-a-pouch soups targeted at working mothers and professionals looking for a
fast but healthy meal
Cons
The growth in earning in the next
year is only 1%, i.e. less than the 3%
target
The growth in the next 5 years is
also short of the target 3%
So this doesnt seem to be achieving
the objective both in the short term
and long term
Pros
There is no cost of acquisition or
additional R&D
High growth is expected in the target
sector
Baby Boomer generation is the loyal
customer who now wants healthier
products so this directly caters to
their needs as well
This suggestion follows market trends
Marketing Mix
Promo
tion
A pull strategy may be employed through
discounts and offers
Media campaign to be mostly above the line
using television advertisements and social
media
Place
Price