Posted: May 25th, 2022

Campbell Soup Company Branding Assessment

Campbell Soup Company Branding Assessment

Campbell Soup Company currently manages twenty three separate branded series of products including the well-known Campbell’s Soup series, and Tomato Soup Lovers in addition to the Pepperidge Farm series that include Bakery, Goldfish Crackers, Cookies, and Puff Pastries. In addition Pace Foods, Prego Sauces, Prego pasta bake sauces, V8 juices including the well-known vegetable juice and V8 Splash Juice drinks. Campbell also created their own Food Service series of generic brands, in addition to operating the Franco-American Gravies and Spaghetti O’s Pasta Series of products., Campbell Soup Company also owns and operates the Godiva Chocolatier business, and as of recent press mentions in August, 2007, is considering divesting this business within the 2008 timeframe (Buss & Rooney,2006). Campbell Soup Company is organized along four specific business divisions, with U.S. soup, sauces and beverages contributing 44.4% of total revenues, baking and snacking contributing 23.8%, international soup and sauces contributing approximately 17% of total revenue and all other related businesses, 14.8%. Godiva Chocolatier is a major percentage of the other related business area of the company.

Campbell Soup Company’s branding is best analyzed by considering the strengths, weaknesses, opportunities and threats the company is facing across its broad portfolio of brands. Strengths of the brand include exceptional economies and scale in production and operations, an increase in cash from operations, and high Return on Invested Capital, according to financial reports the company has filed with the Securities and Exchange Commission. These strengths give Campbell’s the financial resources have given the company the ability to manage multiple iconic brands very effectively, including their expansion and broadening appeal. In addition, Campbell’s has been able to use their excess cash to invest in new product initiatives that will capitalize on demand for organic products. Despite these strengths and the financial resources to capitalize on them, the company is still plagued by the majority of its revenue coming from a single geography and a correspondingly high level of customer concentration. Threats to Campbell Soup Company include the growing demand for private label products that erode both the company’s margin and brand value, increasing number of compliance initiatives, and the generational shifts to focusing on health consciousness in casual dining.

Main Conclusions

Campbell’s Soup Company is at a challenging point in the managing their brands as consumers demand higher levels of convenience, personalized packaging for smaller servings, and healthier, more nutritious composition of all products. In addition, there is confusion over the branding as it relates to Franco American and Godiva Chocolatier brands as well. Support for retailers and the use of advanced planning techniques to optimize shelf space is badly needed as Campbell’s soup brands face competitors who have adopted technologies to accomplish this, and as a result have a significant competitive advantage in retail channels. Lastly, as consumers have become more discerning and demanding in the quality of soups and convenience foods they buy in terms of taste and nutritional value, Campbell Soup Company needs to consider re-vamping their production process to concentrate on fulfilling these unmet needs first.

Recommendations

The following are the recommendations for Campbell Soup Company in managing their branding to take advantage of the evolving trends influencing their business today and into the future:

Transform the brand from its existing position into a more premium market position by developing new production processes that make ready-to-eat soups and meals more stylish in composition and more nutritious in value.

Consumers want to have an “eating out” experience at home with ready-to-eat soups and meals while also getting nutritious value (Facenda, 2007).

Introduce more ready-to-eat soups to gain greater market share in this growing segment. The company needs to consider brand extensions of the Chunky and Select brand series for this specific recommendation.

Invest R&D in entirely new packaging and easy-to-open containers for both ready-to-eat and classic soups and meals. These containers need to be microwaveable and reusable, as consumers mention recycling and re-use of plastic items as important. Consumers are looking for convenience in packaging and serving of soups and meal replacements as well.

Develop and refine an in-store location analysis and planning system to optimally define where Campbell soups and meals need to be merchandised. Planning out the location in the store, size of display, product mix and messaging, and pricing for each retail outlet is critical (Reyes, 2006).

Develop international business and marketing plans to penetrate the Chinese and Indian markets, taking into account cultural and religious differences and the need for packaging specifically in the Indian market, where smaller, individualized servings at low prices are common (Jargon, 2007).

EXECUTIVE SUMMARY

Background and Introduction

Main Conclusions

Recommendations

CRITIQUING CAMPBELL SOUP COMPANY’S BRAND STRATEGY

Background

Ready-to-Serve vs. Pre-Packaged is Critical Decision Point

Healthy, Nutritious, & Low Calorie: Consumer’s High Expectations

Campbell’s Branding and Retail Execution

The Challenge of unifying all Campbell Brands

Future Trends

Limitations, Conclusions and Recommendations

BIBLIOGRAPHY

Critiquing Campbell Soup Company’s Brand Strategy

The challenges Campbell Soup Company faces with regard to its branding strategy are being driven by a higher level of concern on the part of consumers with regard to healthy food (Facenda, 2007), the increasing importance of using computer-based advanced analytical tools and techniques for planning store layouts and defining contents of

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