Campbell Soup Company

Marketing Strategies - MKTG 601

Campbell Soup Company

Intelligent Quisine - Short Case

Date: May 30, 2006

In 1997, Campbell Soup Company launched a new product known as "Intelligent Quisine meals." With consumers in the United States becoming more health conscious and concerned about diet and disease prevention, these 24 different IQ meals were targeted toward the health-food product-market. They were designed to assist in lowering consumers' cholesterol, blood pressure and blood sugar. Before introducing the product to the market, it was tested by consumers in Ohio. Just as Campbell Soup Company had promised, the IQ meals assisted these consumers with lowering their high cholesterol, high blood pressure and high blood sugar levels. Although it appeared to be the perfect product for the perfect market, once Campbell's clinical tests were complete it was not warmly received. Soon, sales results in Ohio began to diminish and IQ's $20M budget was reduced to a mere $13M. Finally, with the assistance of new management team representatives, the product was sold.

When examining management's decision to target the health-food product-market, I took an in-depth look at the market segment to determine if it was a reasonable segment to select. A market segment consists of an identifiable group of consumers within a market who has similar wants, purchasing power, geographical location, buying attitudes, or buying habits. For example, Toyota or Ford could potentially identify car buyers by placing them in four unique segments; those with basic transportation needs, those who prefer high performance vehicles, consumers who enjoy driving luxury vehicles, or those who demand a vehicle with high safety standards. This would be an example of market segmentation.

It is imperative that organizations choose optimal markets to segment and target for their products/services. To determine if Campbell's chose a reasonable and effective market segment, I analyzed their decisions based upon the requirements of effective market segmentation. To be useful, market segments must be measurable, substantial, accessible, actionable and stable.

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