In 2012, Bert Clark, the vice-president and general manger of Branningan Foods’ soup division, was faced with dealing with a steady decline in sales within the industry. Although he had several suggestions as to how to improve the company’s position, none of them resembled one another. The company was having trouble defining their target demographic in order to cater to their needs.
The trends within the industry have been changing in the past couple of years. The company needs to stay loyal to their baby boomer generation needs while targeting working moms who need fast meals and young consumers who are price and health conscious. Therefore, they must decipher what new products they should introduce to meet these trends and how they can make current product lines more profitable. Furthermore, they are faced with the challenge to decide how much they should invest in marketing and which strategy should they implement in order to achieve these goals and further their growth in the long term.
Finally, it has been brought to Clark’s attention that there are currently small competitors that have a competitive advantage in their healthier products. There is a potential for Branningan Foods to acquire one of these companies in order to expand their product lines. Therefore, they must decide if there is a real gain from this acquisition; if so, where they can find the finances for it and what are the risks associated with it.
In 1993, Gareth DeRosa founded TruEarth because she saw the opportunity to market healthier pastas and sauces. TruEarth was one of the first companies to focus on whole grain products, creating a unique competitive advantage. Within the first year of operations sales had reached $23 million, which captured the attention of competitors. One of TruEarth’s largest competitors was Rigazzi, which rolled out its own line of whole grain fresh pasta in late 2007, approximately a year and half after TruEarth launched a similar line. TruEarth...
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