Businessmodel of ConAgra Brands

Customer Segments

ConAgra has a segmented market business model, with customer groups that have slightly different business needs. The company targets its offerings at two segments: consumers and businesses such as commercial, foodservice, restaurant, food manufacturing, and industrial customers.

Value Proposition

ConAgra offers one primary value proposition: brand/status.

The company has established a powerful brand due to its success. It is an $8 billion firm with 40 locations and 13,000 employees. Its product portfolio includes numerous prominent brands, including Healthy Choice, Hunt’s, Slim Jim, Reddi-wip, Alexia, Blake’s, Frontera, Bertolli, P.F. Chang’s, and Marie Callender’s. Lastly, it has won many honors, including the following:

• Named to the Dow Jones Sustainability North America Index six years in a row
• Recognized as one of the 100 Best Corporate Citizens by CR Magazine four times
• Recognized as part of The Civic 50 by Bloomberg Businessweek and Businessweek.com
• Quality Achievement Award for Manufacturer of the Year from the Safe Quality Food Institute ### Channels

ConAgra’s main channels for its Consumer Foods segment are retailers (grocery, convenience, mass merchandise, and club stores). Its main channel for its Commercial Foods segment is its direct salesforce. The company promotes its offerings through its website, social media pages, advertising, and trade promotions such as discounts, coupons, rebates, and volume-based incentives.

Customer Relationships

ConAgra’s customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees. The company maintains a website called “ReadySetEat” that provides recipes for everything from appetizers to entrees to desserts.

Key Activities

ConAgra’s business model entails designing, developing, and producing its foods for customers.

Key Partners

ConAgra’s key partners are the suppliers that provide it with the raw materials it needs to manufacture its products. Most of the materials are commodities.

Key Resources

ConAgra’s main resources are its human resources, who include the food experts and engineers that design, develop, and produce its food products. The company maintains important physical resources in the form of manufacturing facilities, specifically:

• Consumer Foods – ConAgra has 27 manufacturing facilities in the U.S. as well as facilities in Argentina, Canada, Italy, and Mexico.
• Commercial Foods – ConAgra has 19 manufacturing facilities in the U.S. as well as facilities in Austria, the Netherlands, and the United Kingdom. ### Cost Structure

ConAgra has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is cost of goods sold, a variable expense. Other major drivers are in the areas of sales/marketing and administration, both fixed costs.

Revenue Streams

ConAgra has one revenue stream: revenues it generates from sales of its products to consumers and its commercial customers.