|University||Cape Breton University (CBU)- Canada|
CAMPBELL’S SOUP CASE STUDY
To experience marketing, you must assess situations and make recommendations to change marketing strategies when necessary. What would you do in the following situation? Campbell’s Soup is the market leader in Canada, controlling about 60% of all volume sold in retail stores. Its direct competitors include Kraft Heinz, Knorr, and a host of private label brands marketed by big retail stores such as Loblaws, Sobeys, and Metro. When you are a market leader, the other brands are determined to take away some of your business a little at a time.
It is a time when you can’t be complacent. You must initiate marketing activities that will not only protect your business but build your business as well. An overriding factor that Campbell’s presently faces is the condition of the soup market. It is classified as being mature, and on a year-to-year basis, sales volume is declining at a rate of 1%. It’s not an exciting market, but it’s worth about $670 million in Canada right now.
Campbell wants to stimulate some interest among younger families for its condensed soup line (often referred to as its red-and-white line based on the color of its packages). Several external factors present both challenges and opportunities.
Among these factors are the aging population that is gradually leaning toward healthier eating alternatives. Canned soups are previewed as being too processed and poor in taste. The millennial generation, the next big group of consumers, are starting to raise young families. They will be cooking at home and looking for ideas. The growing ethnic market lead by the Asian community is more interested in tastier, spicier products.
1. What changes to the market mix would you recommend to Campbell’s condensed soup product line? In order to make any marketing mix recommendations, you must first analyze what Campbell’s is currently doing in Canada.
2. Conduct some Web-based secondary research to find out as much as you can about its marketing mix: product, price, marketing, communications, and distribution.
3. Try to summarize your findings under each component of the mix.
4. Can you detect any new opportunities it can build upon?
5. Provide justification for your decisions and recommendations