as he reviewed degennaro's findings, clark was particularly concerned about tthe major consumer trends affecting the sale of soup. condensed and ready-to-eat soups were still a staple in most diets in the united states. however, the growing concern about heath and obesity had led to a reduction in processed foods in general and products with high sodium content in particular. this trend was especially pronounced among the so-called baby boomer generation, the first wave of which was now entering retirement. this group was the largest and most brand loyal segment of soup consumers, as the report indicated. products had to be targeted to them. however, this had serious long-term implications for brannigan as it also needed to engage younger generations of consumers. clark felt, in fact, that this was one of the most pressing needs for the company.
the other critical trend lay in u.s. population's increasing desire, especially among working mothers, for fast, simple meals. clark needed to win this consumer from a wide array of strong competitors. The rapidly increasing sales of premade “deli soups”, dry-mix soups, and microwavable packaged soups, while not nearly as large as the canned soups category, was consistent with this trend.
clark noted with some satisfaction that brannigan maintained the leading market share of shelf-stable soups and that three years of price increases had helped to keep profit from declining as much as sales. his division was responsible for more than half the profits of the company's u.s. divisions (40% of sales) and he wasn't going to back off his growth goals of increasing those profits by 3% next year.
Clark's challenge to his reports
could his team help him come up with a focused, coherent plan for growth? clark thought back to the four strategic challenges he had presented to them
1. can new benefits be added to the current lines to increase their growth and profitability?
2. does an acquisition make sense to strengthen or diversify our lines?
3. what new products might we develop internally that address the health and convenience trends? or do we have enough new product already that can reverse the slide if they are properly marketed?
4. what marketing strategy should be employed in reference to each of the above and how much should be put behind the drive for next year versus what we should invest for our long-term objectives?
Clark wasn’t certain that these four options were exhaustive, but they were sure to surface the best ideas his team could come up with. to another their thinking in financial reality, he had also included his preliminary forecast for sales, marketing costs, and net income for next year.