Introduction
Brannigan foods was facing a major challenge as the soup industry had been on a continuous decline, with the market share and profitability dwindling in the last three years before 2012.Although the condensed and the ready- to-eat (RTE) soup were a staple in the USA by 2012, the concerns about health and obesity had reduced the consumption of processed foods and products with high sodium contents. The issue of reduction in the consumption of the processed food was particularly pronounced among the baby boomer generation. There was also an increasing demand for the fast, simple meals among the working mothers.
The business still enjoyed the biggest market share of shelf-stable soups whose prices had been increasing in the last three years, which had helped to stabilize the profits. The purpose of the report is to weigh in the options that the Brannigan foods can employ to provide healthy options for the baby boomer generation who have a strong brand loyalty, while providing a solution for the younger generation. The business also had the option to cater for the market offered by the working mothers. The main objective of the report is to evaluate the marketing strategies that the company could apply to achieve profitability for its range of soups.
Response to Guide Questions
Brannigan could achieve constant profitability through the aggressive marketing of the condensed and ready to eat (RTE) products that were still in high demand among the American consumers. The company could focus on creating new and healthy products for the baby boomer generation to improve the profitability, as the consumers practice highest levels of brand loyalty. The development and marketing of the foods to the younger generations would also be crucial in enhancing the company’s profitability. The new benefits could be added to the existing lines to increase their profitability. The objective can be met through deliberate customer segmentation so that the specific needs of each group of the customers were identified. The category of the food, in terms of quality and prices, would then be set to address the particular needs of the market. The shelf-stable soups market had to be maintained as it formed a major component of the company’s profitability which implied that it was crucial to protect the market.
Recommendations
The introduction of the specific foods products for the baby boomer generation was crucial to achieving the company’s profitability. Therefore the development of healthier food options with lower sodium contents was crucial. An aggressive marketing strategy would also be crucial to increase the sales. The condensed and the ready-to-eat soups consumed by the majority of the American consumers and which could be important in improving the profitability of the company in the face of the realities in the soup industry (John & James 2013). A focus on the fast simple meals for the working mothers would be crucial to achieve increased customer segments.
The leveraging the premade dry-mix soups would be crucial as the product had been achieving increased sales and could have had a bearing on the future profitability of the company. The long term objectives should be to focus on the developing of the products that were attractive to the majority of the consumer’s. In that regard the company should give more attention to the condensed and the ready to eat soups that are consumed across most households in the USA. The diversification is crucial for competitive positioning of the company to penetrating new markets while retaining the existing customer segments.
Analysis
The concept of diversification would be crucial in increasing the company’s fortunes. It is crucial to focus on the company’s food items that fetch most profits for the company. Every effort should be made by the company’s marketing team to strengthen the shelf –stable soups which had experienced increased profits in the last three years and formed a big proportion of the company’s profits (John & James 2013). The acquisition and diversification could create new avenues for profitability. The strengthening of the existing markets while creating new products to cater for the different segments of the customers stabilize the markets and guarantee profitability. An evaluation the food range is significant in creating the foods that better respond to the needs of the customers. The marketing approaches that promoted the company brand would be critical in ensuring that the consumers are perpetually anticipating new food products by the company.
The approach of sales promotions to gauge customer loyalty would be crucial to achieving and enhancing the sales, based on the existing realities in the market. The creation of products targeting the youths could be pivotal to changing the profitability of the company. The youths would have a lot of bearing on the markets of the major products, which includes soup industry. A market that focuses on youthful customers would achieve higher levels of publicity due the high rate of information sharing among the youth groups. A concentration of the baby boomers generation will provide a consistent market. However the penetration of the market is largely dependent on the ability of the company to diversify.
Conclusion
The company could achieve increased profitability by developing products for the distinct market segments. The development of food products for the youth, working females and the older segments would be pivotal in turning the company around. Identifying the specific needs for each market would be critical. Acquisition and diversification would be the crucial components that could determine the future profitability of the organization.
Reference
John A. Quelch & James T. Kindley (2013).Brannigan Foods: Strategic Marketing Planning, Boston University
