Complete Marketing exercise of a Company that needs to make a repositioning of the brand and product lines in order to survive in the future.

1.
BRANNIGAN
FOODS
STRATEGIC
MARKETING
PLANNING
IE
Business
School
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza

2. IE
Business
School
PROBLEM
STATEMENT
Bert
Clark,
vice-­‐president
and
general
manager
of
Brannigan
Food
Soup’s
Division,
has
to
decide
which
of
the
four
alternative
plans
his
team
members
have
proposed
should
be
implemented
in
order
to
reverse
the
industry’s
steady
decline
as
well
as
the
division’s
sales,
market
share,
and
profitability
decrease
for
the
last
three
years.
He
has
to
move
the
division’s
growth
back
to
a
3-­‐4%
at
the
end
of
the
fiscal
year.
ANALYSIS
OF
THE
SITUATION
Company:
Brannigan
is
a
company
that
has
been
operating
for
over
100
years.
It
has
a
Soup
Division
which
has
experienced
a
decrease
in
its
profitability
and
needs
to
create
a
new
strategy
to
stop
the
declining
sales
and
market
share
it
has
been
experiencing.
It
is
important
to
highlight
that
the
soup
division
is
the
cash
cow
(according
to
the
Boston
Consulting
Group
product
matrix)
of
Brannigan
Foods,
reaching
up
to
40%
of
the
company’s
total
sales.
The
most
profitable
product
category
this
division
has
is
the
Ready
to
Eat
Soups
(RTE),
which
accounts
for
a
total
of
71%
of
the
total
revenues,
($210MM
in
total).
The
Soup
Division
has
other
product
and
brand
segments
such
as:
Dry
Soups,
Healthier
Soups
and
the
Fast
&
Simple
Meals.
Five
years
ago,
a
soup
company
named
Anabelle
was
acquired
to
broaden
the
range
of
products
offered
by
introducing
the
Fast
Meal
category,
and
the
strategy
that
has
been
followed
during
the
past
few
years
has
been
to
strongly
invest
in
Dry
Soups,
Healthier
Soups
and
the
mentioned
Fast
Meals.
Regarding
brand
awareness
and
value
perceived
by
customers,
Brannigan
is
behind
competitors
in
the
following
aspects:
• Health
trends
• Diet
claims
• Convenience
offerings
• Flavors
–
specially
popular
regional
ones
• Seasonal
products
outside
of
cold
weather
For
retailers
the
company
doesn’t
seem
innovative
nor
profitable.
Customers:
A
fact
to
point
out
is
that
Baby
Boomers
are
the
larger
and
most
loyal
segment
but
they
are
getting
older
and
their
preferences
are
evolving
into
living
healthier
lifestyles
and
consuming,
in
the
case
of
the
soup
division,
more
salubrious,
low-­‐sodium
based
products.
As
a
counter
part,
this
added
value
is
not
perceived
by
younger
target
segments
of
the
population,
which
look
out
for
other
incentives.
In
general
terms,
consumers
are
seeking
for
innovations
in
the
sector
and
new
flavors
as
well.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
1

3. IE
Business
School
Competitors:
New
small
competitors
are
entering
the
market
with
more
convenient,
healthier
soups
and
new
flavors,
which
are
gaining
popularity
among
customers,
specially
the
Mexican
and
Asian
tastes.
Some
of
the
small
competitors
that
represent
an
opportunity
for
acquisition
and
increase
of
the
brand
portfolio
of
Brannigan
are
Roarin’
Cajun
Foods,
Brothers
Gourmet
and
Red
Dragon
Foods,
which
is
the
option
the
company
is
strongly
considering.
Furthermore,
other
important
competitors,
which
represent
a
clear
threat
to
the
company,
are
the
Private
Labeled
soups,
which
have
been
increasing
their
sales
by
5%
over
the
past
several
years.
It
is
important
to
state
that
another
drawback
for
Brannigan
is
that
retailers
are
decreasing
the
company’s
shelf
space
by
3%
on
a
yearly
basis
in
order
to
provide
extra
space
to
their
own
private
labeled
products.
Collaborators:
Retailers
are
a
very
important
part
for
the
strategic
marketing
decisions
of
Brannigan;
they
provide
the
adequate
channels
to
reach
the
end
consumers.
Retailers
and
Brannigan
must
work
hand
in
hand
in
order
to
increase
net
profits.
The
disjunctive
is
that
the
relationship
is
becoming
eroded
since
Brannigan
intends
to
have
more
shelf
space
for
new
products
and
retailers
are
decreasing
the
shelf
space
availability
to
introduce
their
private
labeled
products.
The
advertising
strategy
has
been
focused
mostly
on
pull
tactics,
investing
in
generating
brand
awareness.
Yet,
the
push
tactics,
when
it
comes
to
the
direct
relationship
with
retailers,
are
not
efficient
and
can
be
a
good
point
to
emphasize
on,
for
future
negotiations.
Context:
As
stated
before,
sales
from
the
sector
have
been
decreasing.
The
loyal
population
(baby
boomers)
is
becoming
older
and
the
new
generations
of
consumers,
like
the
millennial
generation,
have
not
been
targeted
yet.
In
addition
there
is
an
increasing
concern
in
society
for
eating
healthy
and
preventing
obesity.
There
has
also
been
an
incremental
shift
of
demand
for
fast
and
simple
meals
that
can
be
cooked
without
taking
too
much
time
since
people´s
lifestyles
are
becoming
more
focused
on
work
and
on
an
efficient
use
of
spare
time.
It
is
important
to
note
that
working
mothers
are
a
new
segment
that
has
increased
over
the
past
year
and
still
cook
their
food
for
their
children.
Now,
in
order
to
take
a
closer
look
into
the
Processed
Food
industry,
in
which
Brannigan
operates,
we
used
Porter´s
five
forces
tool
to
analyze
the
microenvironment
and
the
competitiveness
that
Brannigan
is
facing.
Rivalry
among
existing
soup
sellers:
Based
in
our
knowledge
and
taking
as
a
reference
the
real
market,
rivalry
in
the
Processed
Food
industry
is
quite
high
since
there
are
many
companies
competing
on
price,
quality,
taste,
health
factors,
product
innovation,
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
2

4. IE
Business
School
and
product
usages
and
benefits.
The
main
challenge
is
the
fact
that
all
the
competitors
provide
the
market
with
almost
the
same
product
range.
In
addition,
private
labels
are
also
starting
to
represent
a
threat
for
Brannigan
since
retailers
are
offering
cheaper
brands
and
products.
The
only
way
the
company
seems
to
be
competing
with
retailers
is
by
offering
higher
quality
and
probably
taking
advantage
of
economies
of
scale.
Threat
of
new
entrants:
The
threat
of
new
entrants
is
relatively
low
since
most
of
the
companies
of
this
industry
are
large
and
account
for
an
important
part
of
the
market
share.
The
main
barrier
entries
are:
• High
levels
of
advertising
and
promotion
investment
in
order
to
generate
brand
awareness.
• Difficulties
obtaining
shelf
space.
Retailers
prefer
known
brands
since
they
are
the
ones
that
can
afford
intensive
communication
campaigns
as
well
as
point-­‐
of-­‐sale
promotions
in
order
to
generate
demand
and
hence,
sales
volume.
Threat
of
substitute
products:
This
threat
is
relatively
high
since
there
are
many
fast
food
restaurants
that
sell
this
type
of
products,
which
are
even
increasing
due
to
a
shift
in
society’s
values,
which
are
becoming
more
occupied
with
work
and
want
to
invest
the
smaller
amount
of
spare
time
they
have
in
things
other
than
cooking.
Furthermore,
there
are
other
products
that
satisfy
the
same
need
of
a
quick,
tasty
and
cheap
course.
Bargaining
power
of
buyers:
Customers
power
is
high
since
they
are
demanding
more
innovative
products
and
new
flavors.
In
addition,
due
to
the
recession,
they
also
seek
for
cheaper
prices,
which
fosters
competition
among
producers.
Bargaining
power
of
suppliers:
We
assume
that
suppliers
have
some
power
since
they
can
vary
the
quality
of
the
raw
materials.
Another
factor
to
take
into
consideration
is
the
prices
that
suppliers
charge;
due
to
inflation
they
would
probably
raise
their
prices
unless
Brannigan
builds
win-­‐win
relationships
with
them.
And
finally
we
made
a
SWOT
analysis
to
take
a
closer
look
at
Brannigan
strengths,
weaknesses,
opportunities
and
threats
to
identify
possible
new
strategies
and
implementation
plans.
Strengths:
• Brannigan
is
the
current
market
leader
with
a
high
market
share.
• It
has
high
brand
awareness
and
withholds
very
good
results
in
the
top
of
mind.
• Condensed
and
Ready
to
Eat
soups
are
a
part
of
the
American
culture
and
is
consistent
in
the
all-­‐around
American
diet.
Weaknesses:
• Decrease
in
sales
over
the
past
three
years.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
3

5. IE
Business
School
•
•
A
poor
job
in
targeting
new
segments
of
the
market
derived
from
changes
in
society’s
behaviors
and
values.
Internal
teams
of
Finance,
Marketing
and
Sales,
R&D,
and
Simple
Meals
units
are
not
integrated
with
each
other;
this
might
derive
form
a
lack
of
communication
between
the
teams.
Opportunities:
• Innovate
with
new
products
that
are
in
line
with
consumers
needs
and
that
will
boost
sales
up
to
a
3-­‐4%
increase.
• Generate
creative
solutions
with
retailers
to
create
win-­‐win
situations.
Threats:
• Private
labels
grow
steadily
5%
per
year
and
retailers
seek
new
shelf
space
for
their
products,
reducing
the
shelf
space
availability
for
Brannigan.
• New
competition
is
entering
the
market
with
disruptive
and
incremental
innovations
that
threat
Brannigan’s
leader
position
and
that
have
eroded
its
sales.
• A
lack
of
coherent
targeting,
segmentation
and
positioning
has
created
a
gap
between
the
product
offerings
and
what
consumers
really
want.
The
case
states
that
four
members
of
different
departments
of
the
soup
division
proposed
possible
solutions
to
stop
the
decline
in
sales
and
market
share
of
Brannigan’s
soup
division.
We
stated
their
pros
and
cons
and
made
a
quantitative
analysis
of
the
net
earnings
forecasts
and
cash
flows
to
take
the
best
possible
decision
for
the
company.
ALTERNATIVES
1.
Invest
in
the
growing
sectors
Srikant
Tipha,
director
of
the
Simple
Meal
Units,
proposes
to
emphasize
the
company´s
efforts
in
the
Simple
Meals,
Heart
Healthy
Soups
and
Dry
Soups,
by
increasing
an
18%
the
investment
in
advertising.
Pros:
The
strategy
focuses
on
products
and
brand
that
target
growing
segments
of
the
market.
The
consumers
are
beginning
to
shift
into
healthy
lifestyles
and
easy
to
prepare
meals
due
to
time
constrains
in
their
working
schedules,
and
it
works
perfect
with
Srikant’s
division.
(It
is
important
to
understand
the
personal
motivations
when
analyzing
all
the
possibilities).
Cons:
The
strategy
focuses
on
“star
products”
but
leaves
the
“cash
cow”
(ready
to
eat
soups)
behind.
This
is
a
mistake
often
made
because
star
products
want
to
be
promoted
but
if
the
“cash
cow”,
which
finances
the
“star
products”,
loses
profit,
the
subsidy
cannot
continue.
In
addition,
previous
experience
with
Annabelle’s
acquisition
process
was
slowly
picking
up
but
did
not
meet
the
expected
growth
forecasts.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
4

6. IE
Business
School
In
the
chart
shown
below
we
can
see
that
with
this
strategy
Brannigan’s
net
earning
wouldn’t
increase,
indeed
they
would
be
reduced
by
a
4%.
This
is
why
this
alternative
is
not
a
good
one
regarding
the
goal
of
increasing
3-­‐4%
the
net
earnings.
(Exhibit
1
shows
the
calculations
done
in
order
to
do
this
forecast)
2.
Acquire
product
lines
to
complement
the
core
growing
sectors
Claire
Mackey,
director
of
Finance
and
Planning,
proposition
is
to
buy
out
small
companies
to
enter
healthier
and
convenient
segments
that
have
new
flavors
and
that
Brannigan’s
product
portfolio
does
not
have.
It
is
important
to
understand
the
situation
of
the
soup
division,
these
new
initiatives
might
be
growing
in
market
share
but
their
future
is
uncertain.
Pros:
The
acquisition
might
seem
positive
since
the
investment
in
R&D
is
literally
null.
If
the
brands
that
are
acquired
are
kept,
there
is
an
important
reduction
in
cannibalization
effects.
Cons:
A
mayor
investment
has
to
be
made
in
order
to
acquire
a
new
company.
Sometimes
the
synergies
between
the
companies
are
not
stable
enough
and
miscues
in
the
lines
of
production
could
occur.
The
past
acquisition
of
Annabelle’s
did
not
meet
the
expectations,
so
the
board
of
directors
might
not
look
at
it
with
enthusiastic
eyes.
In
the
calculations
carried
out
we
observed
that
this
strategy
wasn´t
profitable
either
since
Brannigan’s
net
earning
would
be
decreased
by
an
average
of
7%
per
year.
(Exhibit
2
shows
the
calculations
done
in
order
to
do
this
forecast)
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
5

7. IE
Business
School
3.
Invest
in
organic
growth
from
internally
developed
new
products
Anna
Chong,
Chief
Innovation
Officer,
shows
an
alternative
by
investing
in
R&D
and
advertising
and
promoting
new
product
entries.
She
outlines
that
it
is
important
to
“milk
the
cash-­‐cows”
and
subsidize
the
investment
of
the
“star
products”.
She
proposes
very
original
ideas,
like
new
flavors
that
are
appealing
to
the
growing
demands
of
the
public,
new
innovative
packages
and
new
usages
of
the
soups.
Pros:
Original
ideas,
and
no
need
to
invest
heavily
on
acquiring
a
small
company,
which
avoids
the
risk
of
miscues
in
the
production
lines.
The
new
innovations
target
different
segments
for
the
soup
division,
specially
the
growing
categories
for
healthy
meals
and
active
lifestyles.
One
important
innovation
is
to
add
new
products
for
the
Ready
to
Eat
category,
which
is
the
most
profitable
of
the
company.
Cons:
Only
one
out
of
ten
innovative
products
actually
succeeds
in
the
market
and
becomes
an
established
product
in
the
company´s
portfolio;
the
remaining
nine
do
not
last
longer
than
two
years.
It
is
very
difficult
to
assign
exact
costs
to
the
products
that
were
created
from
inside
the
company.
Moreover,
adding
new
products
with
the
diminishing
shelf
space
in
the
retailer
stores
represented
another
challenge
for
this
plan
since
new
products
would
need
a
reduction
of
the
shelf
space
from
the
Ready
to
Eat
soups.
With
this
alternative
we
can
see
that
once
again
Brannigan’s
net
earnings
wouldn’t
be
increased
but
instead
decreased
a
2%
on
average
per
year.
(Exhibit
3
shows
the
calculations
done
in
order
to
do
this
forecast)
4.
Invest
in
the
core
Bob
Pugh,
director
of
Marketing
and
Sales,
focuses
his
strategy
on
an
increase
in
the
marketing
expenditure
by
$20MM
to
increase
brand
awareness
and
restore
it
to
previous
numbers.
He
also
states
a
price
decrease
of
the
Ready
to
Eat
soups
by
5
cents
and
proposes
a
$22MM
investment
in
capital
to
enhance
the
manufacturing
plants’
efficiency
and
cut
production
costs.
Pros:
The
risk
of
introducing
new
products,
that
might
not
be
effective
in
the
market,
is
reduced
by
100%
since
it
focuses
on
core
products,
primarily
the
Ready
to
Eat
products,
which
are
the
most
successful
products
of
the
soup
division.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
6

8. IE
Business
School
Cons:
Price
reduction
would
harm
the
premium
brand
image
Brannigan
already
has.
The
investment
in
the
manufacturing
plants
and
in
marketing
adds
up
to
$42
million,
a
heavy
investment
that
does
not
provide
added
value
to
the
current
strategy,
which
is
clearly
failing.
In
this
case
this
alternative
seems
profitable,
we
can
see
that
Brannigan’s
net
earnings
will
be
increasing
during
the
next
3
years.
(Exhibit
4
shows
the
calculations
done
in
order
to
do
this
forecast)
RECOMMENDATION
Based
on
the
investigation
and
data
analyzed
for
all
the
alternatives,
we
think
that
the
best
alternative
is
a
mix
of
the
option
three
and
option
four.
It
is
important
to
understand
that
these
options
alone
may
not
generate
a
stable
and
steady
growth
in
the
long
term
due
to
possible
fluctuations
in
the
market
trends.
Although
option
four
does
look
profitable,
qualitative
analysis
for
the
long
term
such
as
brand
health,
brand
equity
and
brand
perceptions
in
the
consumers
minds,
are
not
addressed
properly
and
will
hinder
the
company’s
growth
in
an
ever
changing
and
constantly
fragmenting
market.
As
managers,
we
have
a
holistic
view
of
the
whole
context
and
understand
that
it
is
important
to
reinforce
the
“cash
cow”
of
the
division
which
are
the
Ready
to
Eat
Soups
(option
4),
but
we
also
understand
that
the
leader
position
in
the
market
obliges
Brannigan
to
invest
in
R&D
due
to
the
changing
trends
and
needs
of
the
market
(option
3).
It
is
important
to
invest
in
marketing
to
make
the
RTE
soups
strong
in
the
market,
and
to
be
able
to
keep
financing
the
“question
mark”
products,
which
will
become
stars
and
future
“cash
cows”
with
the
way
the
market
is
growing.
This
mix
of
both
strategies
certifies
the
company´s
short
term
goals
and
envisions
long-­‐
term
profits
with
the
investment
made,
since
it
stretches
the
life
cycle
of
the
RTE
soups
and
boosts
growth
in
the
early
stages
of
the
new
products
life
cycles.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
7

9. IE
Business
School
IMPLEMENTATION
PLAN
Due
to
the
context
and
present
situation
of
the
company,
the
most
important
thing
is
to
start
with
the
basics,
go
to
the
consumer
needs,
and
find
out
what
they
value.
The
first
thing
to
do
is
to
reposition
Brannigan
in
consumers’
minds
by
analyzing
the
different
segments
of
the
market.
From
the
consumer
information
research
made
by
Mr.
DeGennaro,
38%
of
millenials
eat
soup
as
a
snack,
78%
think
of
soup
as
being
healthy
and
a
low
calorie
option
for
dieting,
and
61%
of
consumers
take
low
sodium
into
account
when
purchasing.
Even
though
Baby
Boomers
are
the
biggest
market
and
most
profitable,
the
tendency
in
the
future
is
that
it
will
be
reduced,
so
targeting
younger
segments
is
important
for
the
long-­‐term
growth
of
the
company.
1.
Marketing
Mix
Product
The
branding
strategy
will
consist
of
implementing
an
umbrella
brand
of
Brannigan’s
soup
division
that
will
give
emotional
values
to
the
products
and
brands
targeted
to
the
different
market
segments.
These
products
will
include
functional
benefits
that
will
satisfy
their
needs.
Positioning
statement:
“For
people
who
enjoy
healthy,
easy
to
cook,
savory
food,
Brannigan's
Soup
is
a
brand
of
soups
that
offers
convenient,
varied,
trustworthy,
and
very
good
quality
soups
that
allows
customers
to
enjoy
meals
while
taking
care
of
their
health
and
to
save
time
at
very
competitive
prices
based
on
its
experience
as
leader
in
the
category
and
its
innovative
products”
Based
on
this
positioning
statement,
the
company
must
enter
the
21st
century
with
a
strong
argument
that
will
reclaim
their
position
as
leader
of
the
market
providing
a
better
life
quality
offering
through
their
products
and
services.
(The
market
research
showed
they
fell
back
on
health
trends,
diet
claims,
convenient
offerings,
flavors,
and
seasonal
products,
which
are
growing
trends).
The
R&D
products
will
be
divided
into
the
previously
stated
segments
and
will
provide
Brannigan
with
a
Diversification
Strategy
based
on
Ansoff’s
Matrix
since
the
market
trends
are
not
mature
enough
yet,
and
the
products
will
be
introduced
as
new
innovations.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
8

10. IE
Business
School
•
•
•
•
•
•
•
•
•
•
Packaged
deli
soups:
Price
premium,
for
baby
boomers
and
educated
palates
Simple
healthy
weight
watchers
soups
with
dietary
components:
targeted
to
all
but
the
youngsters
Active
lifestyles
soups
and
broths:
millenials,
working
mothers
Convenient
great
meals
(changing
the
usage
of
the
soup
into
a
sauce):
working
mothers
New
flavored
cold
soups
(E.g:
chilled
tomato
and
avocado,
swan´s
summer
soup):
millennial,
working
mothers
New
flavored
teriyaki
beef:
millennial,
working
mothers
Chicken
Noodled
Soup:
millenial,
working
mothers
and
youngsters
Microwave
ready
soups:
millenial
and
working
mothers
Portable
thermic
microwave
soups
cold
on
the
hands,
hot
on
the
mouth:
millenials
and
working
mothers
Savory
and
tasty
tomato
meatballs
soup:
Youngsters
On
the
other
hand,
the
RTE
soup
category
is
the
most
profitable
one
and
can
be
stated
to
be
the
“cash
cow”
(based
on
the
BCG
matrix)
of
the
company.
The
market
is
very
mature
as
well
as
the
products,
this
is
why
based
on
Ansoff’s
matrix,
the
strategy
will
focus
on
penetrating
the
market.
Place
Distribution
is
a
big
concern
for
the
soup
division.
One
of
it’s
major
problems
is
that
private
labels
are
entering
the
market
and
gaining
a
constant
5%
growth
due
to
the
increasing
price
sensitivity.
This
has
created
a
conflict
of
interests
between
Brannigan
and
its
retail
partners
in
the
shelves
of
the
supermarkets.
A
3%
of
shelf
space
has
been
reduced
on
a
yearly
basis,
even
though
it
is
not
the
major
problem
the
company
is
facing,
it
is
a
symptom
that
must
be
put
into
consideration.
We
understand
that
incentives
must
be
offered
to
the
Retail
partners
to
keep
shelf
space
for
Brannigan
soups,
especially
for
the
new
innovations
coming
up.
In
order
to
address
this
issue
we
propose
the
following
actions:
• Invest
in
an
Information
Technology
that
shares
information
between
retailers
and
Brannigan
on
stock
keeping
units
that
will
allow
an
implementation
of
a
“just
in
time”
model
for
stock
replenishment.
This
way,
the
stock
is
reduced
in
the
retailers
warehouse
and
creates
a
positive
effect
on
their
balance
sheets.
• Invest
in
the
retailers
store
with
promotional
POS
materials
with
special
product
stands
and
advertising
that
will
drive
an
increase
in
sales.
• Create
in
store
activities
promoted
by
Brannigan
to
show
the
customers
new
recipes
and
ways
to
use
the
soups
they
can
find
inside
the
stores.
We
believe
this
investment
in
the
distribution
channels
is
crucial
for
the
sustained
relationship
with
the
retailers
since
they
sell
a
62.9%
of
our
total
product
sales
and
it
creates
a
win-­‐win
situation
for
both.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
9

11. IE
Business
School
Price
It
is
important
to
state
that
price
is
a
sensitive
issue
for
Brannigan,
since
it
is
the
current
leader
of
the
market
and
has
high
brand
awareness
and
top
of
mind,
the
new
brand
positioning
will
reinforce
this
image.
This
is
why
we
will
not
increase
nor
decrease
prices
for
the
RTE
soups.
Instead
we
are
going
to
introduce
to
the
market
a
premium
brand
of
packaged
Deli
soups
by
Brannigan
that
will
be
priced
higher
than
the
RTE
soups.
This
is
a
strategy
that
mixes
Pricing,
Product
and
Brand
Management,
and
Knowing
the
Consumer
trends,
all
together.
Price
premium
will
give
an
image
of
an
enhanced
high
quality
product,
it
will
increase
the
product
portfolio
of
the
brand
and
it
will
also
create
what
we
know
as
a
“Compromise
Effect”
in
the
behavior
of
consumers.
This
effect
states
that
adding
a
new
product
to
the
set
of
choices
a
consumer
has,
can
shift
the
consumers
preferences,
people
tend
to
compromise
and
choose
an
option
that
looks
superior
but
that
has
an
economic
value
also.
When
consumers
arrive
to
the
shelf,
they
will
encounter
a
market
with
a
private
label
soup
on
the
left,
Brannigan
RTE
soup
in
the
middle,
and
Brannigan
Deli
Soup
in
the
right.
They
will
most
probably
choose
the
RTE
soup
in
the
middle
since
it’s
the
safest
choice.
It
gives
more
quality
than
the
private
label
at
a
more
affordable
price
than
the
premium
deli
soup.
Note
that
by
increasing
consumption
of
RTE
Brannigan
soups,
we
are
fostering
sales
and
profit
on
the
short
term
to
finance
the
innovative
products
introduced
to
the
market.
Promotion
Discounts,
offers,
and
promotions
will
be
made
on
mass
media
and
digital
as
a
Pull
Strategy
to
increase
sales
in
the
retail
channels
of
distribution.
(Push
strategies
are
stated
in
the
Place
section
of
the
Marketing
Mix).
In
order
to
reach
consumers
with
the
right
message
at
the
right
time,
an
Integrated
Marketing
communications
campaign
sketch
has
been
outlined
below
using
the
6M’s.
Integrated
Marketing
communications
Plan
(6
m’s)
-­‐
Market:
The
market’s
fragmentation
and
growing
new
trends,
combined
with
a
decline
of
sales
in
Brannigan
Soup
division,
has
generated
a
necessity
inside
Brannigan
to
change
the
marketing
strategy.
-­‐
Mission:
The
integrated
marketing
campaign’s
mission
will
be
to
reposition
the
brand
as
an
innovative
company
that
owns
the
leadership
not
only
for
its
brand
but
also
for
increasing
the
life
quality
of
its
consumers.
-­‐
The
key
message
will
be:
“Brannigan,
the
soup
that
cares
for
you,
just
like
a
mother
would,
every
time,
everywhere”.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
10

12. IE
Business
School
The
tone
of
the
message
will
be
emotional
on
an
early
stage,
but
we
consider
that
after
the
first
message
has
had
a
wide
coverage
and
frequency
on
Mass
Media
advertising.
A
T.V.
ad
will
be
aired
during
the
Superbowl,
the
world´s
most
viewed
sporting
event.
It
is
a
great
opportunity
for
people
to
see
Brannigan’s
brand
repositioning
and
the
company’s
new
communication.
A
second
stage
of
the
implementation
plan
will
include
new
commercials
to
create
brand
awareness
of
the
new
products
and
will
show
the
functional
benefits
through
a
fun
and
humorous
tone.
Also,
special
promotions
and
offers
will
be
made
year
wide
depending
on
the
product
offerings
and
stations
to
increase
sales
on
specific
products.
-­‐
Media:
The
media
to
be
used
is
above
the
line
media,
specially
television,
to
increase
coverage
in
the
campaign.
Social
media
will
also
be
used
to
propagate
campaign
but
it
will
be
explained
with
more
detail
further
on.
-­‐
Money:
According
to
the
exhibits
of
the
case,
$170
million
is
the
estimated
budget
for
marketing
expenses
of
year
2013.
Exhibit
5
shows
the
percentage
of
the
budget
devoted
to
each
marketing
activity
described
in
more
detail.
-­‐
Measurement:
The
campaign
will
be
measured
in
GRP´s
(frequency
x
coverage)
and
impacts.
For
Digital,
the
campaign
will
be
measured
by
impressions,
clicks,
increase
of
the
website
visit,
and
acquisitions.
Social
media
will
be
measured
on
amount
of
likes,
re-­‐posts,
re-­‐tweets,
shared
videos
and
comments.
Sales
Force
Hunters
vs.
Farmers
In
order
to
reach
an
increase
of
a
4%
sales
earnings
per
year,
the
sales
force
must
be
reorganized
thoroughly.
There
is
a
clear
distinction
in
the
sales
force
team
between
hunter
and
farmers
(hunters
reach
out
for
new
customers
acquisitions
and
farmers
foster
relationships
between
the
key
accounts).
A
20-­‐80
division
will
be
made
(20%
farmers
-­‐
80%
hunters).
This
will
increase
the
search
and
acquisition
of
new
retail
partners
nationwide
and
they
will
push
for
the
new
star
products
without
leaving
RTE
soups
behind,
which
are
the
most
important
source
of
income.
Salaries
will
include
a
mix
of
fixed
and
an
increased
percentage
of
the
variable
part.
Bonuses
will
be
provided
to
the
sales-­‐force
teams
if
they
meet
and
surpass
the
year
sales
objectives.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
11

13. IE
Business
School
2.
Digital
Marketing
Strategy
It
is
important
to
state
that
the
way
consumers
behave
in
the
stages
of
the
buying
process
has
changed
drastically.
People
now
have
multiple
touch
points
with
products
and
brands
on
offline
but
also
online
communication
channels.
In
addition
to
this
point
is
the
use
of
information
people
search
online
to
take
decisions
on
the
market
place.
This
is
called
the
Zero
Moment
of
Truth
and
a
few
years
ago
it
was
a
trend,
but
it
has
become
a
reality
nowadays.
We,
therefore,
decided
to
create
a
special
point
for
Digital
Marketing,
since
it
involves
strategies
of
all
the
components
of
the
marketing
mix,
but
that
differs
in
the
implementation
from
the
offline
channels.
We
are
going
to
use
the
three
components
of
digital
media
in
an
integrated
way.
Owned
media
(with
the
creation
of
the
company´s
own
website),
paid
media
(through
the
advertising
and
promotions
that
will
be
made
through
blogs
and
digital
magazines),
and
earned
media
(through
social
networks
comments,
shared
links
and
posts
made
by
active
consumers).
The
key
point
of
the
website
is
to
increase
sales
of
Brannigan’s
soups
and
other
products
but
also
create
a
community
that
gives
value
to
the
consumers,
further
empowering
the
brand´s
relationship,
image,
and
positive
awareness
with
the
final
client.
Search
Engine
Optimization
will
be
made
through
an
organic
optimization
using
special
keywords
such
as
low
sodium
based
soups,
new
soup
recipes,
healthy
soups
in
the
market,
or
how
to
cook
a
fast
but
tasty
meal
in
10
minutes.
These
are
just
examples
of
some
of
the
search
words
people
might
use
on
Google,
Bing
or
Yahoo.
Further
investigation
is
recommended
to
state
what
are
the
searching
habits
of
the
consumers.
Further
on,
a
Search
Engine
Marketing
strategy
will
be
made
with
promotional
banners
posted
through
paid
media
such
as
blogs
of
key
opinion
leaders
in
the
cooking
industry
and
specialized
cooking
digital
magazines.
This
campaign
will
be
measured
in
a
Cost
Per
Click
basis
to
ensure
return
of
the
investment
and
an
increase
in
volume
to
Brannigan
soup
website.
And
finally,
a
Facebook
page
will
be
created
to
generate
engagement
with
consumers
and
offer
them
content
of
value.
A
YouTube
channel
will
be
created
with
5-­‐minute
videos
of
cooking
recipes
using
Brannigan
soups.
A
twitter
account
will
be
activated
to
tweet
the
recipe
of
the
day,
or
products
of
the
day,
and
new
interactions
the
brand
has
to
further
engage
the
consumers.
Social
media
will
be
monitored
closely
to
protect
the
brand
image
but
will
serve
as
a
contact
point
to
direct
the
consumers
to
the
website
and
generate
sales.
The
main
benefits
we
see
in
this
strategy
involve
the
distribution
channel:
• Costs
will
decrease
and
margins
will
be
incremented
because
it
is
a
direct
sell
that
does
not
have
an
intermediary’s
fee.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
12

14. IE
Business
School
•
•
•
Digital
channel
is
available
24/7
Adding
a
shopping
cart
provides
full
information
about
the
consumer’s
preferences,
making
it
possible
to
offer
suggestions
for
cross-­‐selling
complementary
products
(like
the
related
products
amazon
recommends)
It
serves
as
a
communicational
tool
to
offer
relevant
information
of
new
promotions,
recipes,
nutritional
facts
and
recommendations,
flavors,
and
packaged
innovations
that
consumers
value
Concerning
Pricing
strategies,
prices
will
remain
the
same
in
digital
to
keep
a
fair
competition
since
the
company
does
not
want
to
hamper
the
relationship
with
the
retailers
that
account
for
more
than
a
60%
of
the
company´s
sales
(even
though
this
percentage
wants
to
be
lowered
as
much
as
possible
to
reduce
their
power
over
Brannigan).
Promotions
will
be
used
to
increase
sales
offline,
for
example,
redeemable
coupons
on
the
retail
stores.
This
can
be
negotiated
with
the
retailer
partners.
It’s
a
great
opportunity
for
cross
promotions,
and
cross
selling
to
increase
sales
in
other
divisions
of
the
company,
not
only
soups.
For
further
information
about
the
total
expenditure
of
the
$170
million
budget
for
2013,
exhibit
5
shows
the
percentages
for
each
activity
in
more
detail.
Exhibit
5
shows
the
percentage
of
the
investment
of
the
activities
in
the
marketing
budget
for
2013
based
on
the
170
million
given
to
us
in
the
case.
CONCLUSIONS
To
wrap
up
the
case
and
its
main
takeaways
we
can
conclude
that:
• A
context
analysis
using
tools
such
as
BCG
product
matrix,
SWOT
analysis,
Porter´s
five
forces,
or
Ansoff’s
matrix
gives
a
good
starting
point
to
understand
the
company
and
start
identifying
possible
strategies
and
implementation
plans
• It
is
imperative
to
understand
consumers
desires
and
needs,
and
try
to
solve
them
in
the
best
way
possible
to
create
value
in
the
product
offerings
• Quantitative
analysis
for
possible
solutions
to
problems
in
a
company
must
be
made
to
forecast
possible
outcomes,
yet
this
analysis
has
to
be
supported
with
a
qualitative
analysis
to
expect
better
results
when
implementing
a
strategy
• Short
term
projections
are
important
and
profit
is
a
need
that
stockholders
and
bosses
demand,
but
long
term
projections,
that
may
not
be
profitable
at
the
beginning
but
have
the
potential
to
break
through
the
market
and
generate
profit
in
years
to
come,
have
to
be
considered
indispensable
strategies
for
the
sake
of
the
company’s
future.
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
13

15. IE
Business
School
EXHIBIT
1
EXHIBIT
2
Assuming
that
the
Red
Dragon
brand
is
going
to
be
kept
as
such
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
14

16. IE
Business
School
EXHIBIT
3
EXHIBIT
4
EXHIBIT
5
Juan
Manuel
Restrepo
Davies
Mª
Concepción
Aragonés
Cabeza
15