Campbell Soup

Summary of Goods and Services

The company produces canned soup and other food items such as frozen meals, baked goods, pet food and spaghetti products. Americans consume almost 2.5 billion bowls of Campbell soup each year between tomato soup, cream of mushroom and chicken noodle.

Campbell Soup Company manufactures and markets convenience food products. It operates in three segments: U.S. Soup, Sauces, and Beverages; Baking and Snacking; and International Soup and Sauces. (Official website, 2006.)

1. The U.S. Soup, Sauces, and Beverages segment features the well known condensed soups, ready-to-serve soups; broth and canned poultry; pasta sauce; Mexican sauce; canned pasta, gravies, and beans; meal kits; vegetable juice; juice beverages; and tomato juice.

2. The Baking and Snacking segment produces and sells cookies, crackers, and bakery and frozen products.

3. The International Soup and Sauces segment offers soup, sauce, and beverages in Europe, Mexico, Latin America, the Asia Pacific region, and Canada.

Potential for Growth

* To expand their product lines into International Markets

A major opportunity for Campbell Soup is to continue pushing internationally by expanding their market base to gain from early mover advantages. Campbell is a very well known company within the U.S but there remains many international markets that they have not yet entered. The company has had success in Germany with Erasco aroma pack ready to serve soup in easy open pouches, and in Australia with Velish, soups in aseptic packaging. However, large markets such as China and South America to name a few remain relatively untapped by Campbell. By expanding into these markets and others, the company will be able to increase product consumption which will serve to offset the decreasing U.S. sales in condensed soup.

* To sell and promote their product as a healthy alternative

Promoting healthier eating with soup is a potential golden opportunity for Campbell. There is an increasing trend in consumer's lifestyles towards eating healthier and soups are seen as a tasty way of eating fewer calories. Campbell can introduce a line of "healthy soups" that have could have lower sodium content, less cholesterol, and fewer calories. These soups would be seen as a very nutritional alternative to other foods and therefore Campbell will benefit from consumers substituting previous foods for a Campbell selection.

Stability

* Brand Image

Since 1869 Campbell Soup Company has risen to be success by utilizing its strengths to build a strong foundation. Due to its deep-rooted history, Campbell has become an extremely well known brand being ranked as # 4 on the Fortune Magazine list of most admired food companies in 1999 and 2000. In addition, it placed #3 on the most profitable food companies list in the Fortune 500 and from these one can see that Campbell has obviously achieved great success. Accordingly, brand image is a great strength of Campbell as consumers instantly recognize the red and white labeled cans and purchase the soup knowing that it is a quality product. Today it has almost become a household essential and has been around for over a century. "The Campbell's brand had household penetration of over 90% and was ranked among the top ten grocery brands according to sales" (12). With 66% of the total share in the U.S. soup market in 2001, Campbell has used its strong brand equity to capture routine customers' business.

* Innovative Products that Provide Convenience

One way that Campbell satisfies the needs of its customers is by creating innovative ways of presenting their existing products. For example, in 2002, they introduced the concept of soup in a microwaveable container called Campbell's Soup at Hand. This provided the consumer with convenience because once they heated it in the microwave it was ready to serve. Also, Campbell has always tried to appeal to housewives. When the company was first founded, they went door to door to persuade housewives to buy Campbell's soup instead of making their own. Recently, the company has added recipes to the back of the labels as a new way to reach mothers. These small changes have helped Campbell connect more closely with the consumer by providing convenience.

* Executive Talent

Douglas R. Conant, the current CEO, has been a strong and insightful leader of Campbell Soup Company, leading him to be an important asset for the company. He came to the company with a spectacular vision for the future and is beginning one of the greatest transformations the company has undergone in some time. Conant sought improvements