Invest in the growing sectors:
The proposal of the investment in the growing sectors like simple meals, low sodium heart healthy soups and dry soups was given by Srikanth Tipha ,who is the Category Manager of the simple meals unit ,so he made the strategy on his own unit ,he proposed the company should emphasize efforts in simple meals,low sodium heart healthy soups ,dry soups.This will happen by the advertisng and promotion ,so that the consumers can consume this type of soups.For this company should spend $18M in advertising.
With this proposal company brand image and the awareness of the product to the consumer will increases, then the consumer starts to consume the products because it is healthier and easy to prepare
Note :STAR PRODUCT= DRY SOUPS CASH COW =RTE SOUPS The company Acquire the Annabelle foods 5 years back which is in slow growing line but did not reach the excpectations by the company’s forcast. In addition This proposal clearly mentioned that promote STAR PRODUCT Leave the CASH COW ,For the STAR PRODUCT ,Promotion and advertising is most important.CASH COW is the investor for the promotion and advertising if they leave CASH COW behind the company will be loose the profits.
With this proposal the brannigain’s foods net earnings will not increase instead of increase it will decrease by 4%
Acquire product lines to complement the core in growing sectors:
Clark Mackey, Directory of financw & Planning proposed this proposal of acquiring the small companies,which having the growth in the market produces healthier and new flavor soups. He also mentiond 3 companies names which company can get profit by acquiring them,his guess is that by acquisition of any one company can get 1.5% to 3.5% to Brannigan foods sales within 5 years
No need to invest for R&D
If the brands are kept, there will be reduction in cannibalization.Disadvantages:
Already bad experience in the Annabelle even though it is in slow gaining track,If they want to change in to their brand from acquire brands huge investment required for the promotion and advertising
With this proposal the brannigain’s foods net earnings will not increase instead of increase it will decrease by 7%