Bert Clark, vice-president and general manager of Brannigan Food’s Soup division was facing one of the most difficult and complicated challenges. These challenges included sales, market share, and profitability of the firm as the sales had been dipping since the last 3 years. Bert was looking for fresh and new concepts from his managers.
The managers did go through the “state of the soup” industry report and came up with some suggestions to grow the business. But each of the manager had a different proposal to offer.
SOUP INDUSTRY IN 2012
The soup industry had been in steady decline since the past few years, but Clark was more concerned about the major consumer trends affecting the sale of soups. People preferred using condensed and Ready to Eat soups.
Health and obesity became a major factor for reduction in processed and packed foods. The trend was most significant in the Baby Booming Generation(between 1946 to 1964) which came into the retirement stage. Since this generation came to a retirement stage they had a less spending capacity because of which their purchases subsided substantially, thus leading a decline in stage. This trend lead Clark to focus on new customers who were mainly the working mothers for fast and simple meals.
MAJOR STRATEGIC CHALLENGES
1)New benefits to be added to the current lines to increase growth and profitability.
2)Profitability of an acquisition.
3)New product development.
4)Marketing Strategy to impose.
CLARK’S CONCLUSION BASED ON THE REPORTS OF HIS MANAGERS