Campell Soup Company: Watching
what you eat
Introduction:
In foods business, every little bit helps. It’s all about staying in tune with consumers and
keeping up with the changes either they are small or large in consumer preferences.
Below is the story of Campell Soup Company and how it was struggling to keep the
people interested in their soup rather than them resorting to other snacks
The Summary:
Soup is a well-accepted product found in just about everyone’s pantry in the United
States. However, not long ago, Campbell researchers discovered that marketing soups
presents unique problems. People don’t covet soup. Soup is not a top-of-mind
meal or snack choice, and it’s typically a prelude to a more interesting main course. This
make meaningful marketing research is difficult.
In the $5 billion U.S. soup market, Campbell dominates with a 44 % share. The
Campbell soup company is involved in several difficulties. Denise Morrison, CEO of
Campbell will tell you about the challenges she faced when she over as head of the
world is oldest and best-known soup company. A core element of Morrison’s plan was to
maintain a laser-like focus on consumers. Maintain the customer’s focus requires a
clear, up-to-the-minute understanding of consumers in order to create more relevant
products.
For years, Campbell researchers relied on good old paper and-pencil surveys and
traditional interviews to gain consumer insights for making ads, labels and packaging,
and the products themselves more effective. However, Campbell’s experience with such
marketing research showed that traditional methods failed to capture the customer’s
insights
Therefore, instead, Campbell researchers began employing state-of-the-art
neuroscience methods. They outfitted shoppers with special vests that measured skin-
moisture levels, heart rates, depth and pace of breathing, and postures. Such biometric
data was combined with interviews and videos that captured each shopper’s
experiences.Through this high-tech research, Campbell knew that people hold strong
emotions associated with eating soup.
Based on these research insights, Campbell began evaluating specific aspects of
its displays, labels, and packaging. This led to seemingly small but important changes.
The Campbell’s logo is now smaller and lower on the shelf.
To further encourage browsing can labels now fall into different categories, each with
distinguishing visual cues. Varieties like Beef Broth and Broccoli Cheese, which are
typically used as ingredients in recipes, feature a narrow blue swath across the middle of
the can with a “Great for Cooking” label, features a black background rather than the
traditional white.
These minor labels made difference; Campbell claims that its sales of condensed soups
are up by 2 percent since making the changes. The sales jump also indicates that
consumers are receiving greater value through a more fulfilling shopping experience.
Additionally, the Campbell Soup Company makes and markets much more than just
soup these days. Over the years, the company has added or created such brands as
Pepperidge Farms, Swanson, Pace, Prego, V8, Bolthouse Farms, and Plum Organics.
Today, Campbell’s house of packaged food brands includes something for just about
everyone. With that kind of product portfolio, maintaining and creating relevant products
based on a clear, up-to-the-minute understanding of consumers is an especially
daunting proposition.
Campbell researchers and marketers dive in and spend time with consumers’ natural
environments. Campbell researchers have identified six different consumer groups, each
with an extensive profile. For each of these groups, Campbell has created six fully
equipped kitchens , each designed to mirror the homes of consumers in the six groups.
Each kitchen has a unique design, with different features, and, most importantly,
different food in the cabinets and refrigerators.
Such levels of detail help Campbell marketers discover and understand existing and
developing trends in each consumer group as well as in the general market. For
example, ginger is in. Only a few years ago, this herb was something found only in
ethnic restaurants or in obscure recipes. But now its popularity is soaring. Campbell
expects that it will soon be an important ingredient for each of the six consumer
segments, a valuable insight for developing new products.
As we said before , every little bit helps in food business The triangulation of data
across methods ( neuroscience. Deep dive research, all traditional methods of surveys
and interviews) allow for greater accuracy as well as the ability to cover larger consumer
samples.
Over the most recent three years, Campbell’s corporate revenues rose 12.6 percent
while net profits returned 6 to 10 percent each year. Campbell’s stock price also
increased by more than 60 percent during that time
Questions for Discussion
1- What are the strengths and weaknesses of the Campbell Soup Company’s
marketing information system?
Campell Company has many strengths: First, the transformation of conventional
marketing research into modified one. The company made the study is possible
to have a better knowledge of the customer wants and emotions. Second, there
are some aspects of the development of a new product, which would be
impossible to know by surveys. Third, they are assessing the specific aspects of
its displays, labels and packaging. This leads to changing the logo to be smaller
and lower on the shelf
There are minor weakness are the data collected can be highly invasive
information system and can be considered against the privacy of customers
because they get intimate and personal info
2- What objectives does Campbell have for the marketing research efforts
described in this case?
The main objective of Campell is to improve food’s experience and to expand the
target market .They aimed at getting new generations of consumers and this how
they discovered the six consumer groups to offer according to the analysis of
each group their product portfolio.
3- Compare the effectiveness of Campbell’s biometric research with its deep dive
research.
In Campell’s biometric research they could find a deficiency in the labels of the
soup cans that they didn’t express any emotional response with customers they
got more intimate and personal information. According to the results of the
biometric research, the company decided to evaluate specific aspects of the
appearance of the packaging that its products contained. These small but very
important changes, Campbell increased his soup sales by 2%. Also, using the
deep investigation method help to identify different consumer groups, such as
“Uninvolved Quick Fixers” which are families or people not interested in cooking
or learning, and the “Passionate Kitchen Masters” which are the ones that love to
cook. By this deep dive research, Campell discovered which product is used to
target which segment and how different trends are developing among different
groups
4- Describe how traditional marketing research could be integrated with Campbell’s
research efforts from this case.
The use of traditional market research into the Campbell’s case .They could
obtain a more accurate result about the level of consumption that people have a
certain product, although it is true that the new research strategies help the
company to know in which the consumer is interested. It does not provide real
data on the frequency of consumption of its product, appreciation of quality and
diverse opinions of consumers. By using traditional research we will be able to
improve the product not only from an external point of view that leads the
consumer to obtain our product but it will also help us to improve customer
satisfaction when they have already consumed it. The more researches we have
to understand customer needs, the results will be more accurate.
Case Study: Campell Soup Company
watching what you eat
