Professional Documents
Culture Documents
CLASS 1
GROUP 6:
Pages
I. Introduction ........................................................................................................................... 1
1. Mission ............................................................................................................................... 2
2. Vision ................................................................................................................................. 2
3. Objectives ........................................................................................................................... 2
4. Strategies ............................................................................................................................ 3
II. Problem .................................................................................................................................. 3
III. Product lines .......................................................................................................................... 4
IV. Competition .......................................................................................................................... 10
V. Overview ............................................................................................................................... 13
VI. Market condition .................................................................................................................. 13
VII. Organization chart ............................................................................................................... 14
VIII. Financial Analysis ................................................................................................................ 15
IX. SWOT Analysis .................................................................................................................... 20
X. Product life cycle .................................................................................................................. 23
XI. CPM - Competitive Profile Matrix ..................................................................................... 25
XII. External Factor Evaluation Matrix (EFE) ........................................................................ 27
XIII. Internal Factor Evaluation Matrix (IFE) .......................................................................... 31
XIV. Space Matrix ......................................................................................................................... 35
XV. Grand Matrix ....................................................................................................................... 37
XVI. Quantitative Strategic Planning Matrix (QSPM) ............................................................. 42
XVII. Recommendation .................................................................................................................. 46
XVIII. Timetable .............................................................................................................................. 47
I) INTRODUCTION1
Campbell Soup Company, also known as Campbell's which is founded by American in 1869;
they open their first plant in Camden, New Jersey. They produce canned soups and related
products. Campbell's products are presented in 120 countries around the world. Campbells
products are divided into three parts, the first part is the simple meals which consists largely of
soups both condensed and ready-to-serve, the second part is the baked snacks which consists of
Pepperidge Farm and the final is the health beverage which includes V8 juices. In addition,
Campbell is running a program for schools as known as Labels for Education. Moreover,
Campbell has posed slogans as a commitment such as Mmm Mmm Good presented in 1960s,
their predominantly used slogan, Give Me The Campbell Life (1969-1975), Soup Is Good Food
(1975-c.1982), Possibilities (20052009), So Many Many Reasons It's So Mmm Mmm Good
(20082010), It's Amazing What Soup Can Do! (2010present), never underestimate the power
1
(n.d.). Retrieved August 30, 2014, from http://www.campbellsoupcompany.com/about-campbell
1
1 Mission: is to nourish peoples lives by offering a wide variety of convenient, delicious, and
affordable food choices that can help everyone enjoy a balanced, healthful diet.
Character: We are driven to inspire trust and act with integrity in all that we do. We take
develop new capabilities to drive growth and innovation, and we execute our plans with
collaborating with one another across the organization. We call this operating as "One
Team Plus."
2 Vision: to build a focused global food company with superior consumer brand value, and to
3 Objectives:
2
4 Strategies:
Develop its brands in three core categories: soup simple meals, snacks and healthy
beverages.
Increase margins by adjust price realization and company-wide total cost management.
Care for their customers wellness needs, product quality and product convenience.
II) PROBLEM
As is known, Campbell Soup Company is one of the companies that have strong competitive
position in packaged food industry. Campbell's products also have a strong position in customer's
trust. However, package foods market has many competitors over times that lead to few new
consumers, this market becomes saturated in recent years. That circumstance influences to price,
net income and the growing of many companies, Campbell Soup Company is also not exception.
According to Campbell soup and financial annual report, the total revenue is rather stable and a
little bit increase, however, its net profit is decrease dramatically from 2011 to 2013. The reasons
may be lot competitors, unpredictable customer needs, competitive prices or operating expense.
3
III) PRODUCT LINES2
SOUP COLLECTION
Firstly, Campbell had the great ideas for food service, special is Soup Collections which is the
flexible, convenient and consistent soup. Campbells soup offers all the flavor, format and
for maximum versatility: the ready-to-cook condensed frozen 3/4 lb. tub that yields
approximately 384 fl. oz., or the ready-to-eat frozen 4/4 lb. pouch that yields approximately 256
fl. oz.
As is shown, to create diversity, Campbell's Signature soups have more than 50 flavors to
Beef Pot Roast is made with tender beef and vegetables including
2
Product Research. (n.d.). Retrieved August 30, 2014, from http://www.campbellfoodservice.com/
4
7 g Protein, 10 % Vitamin A, 4 % Calcium, 6 %Iron.
made with tender vegetables and blue cheese finished with a dash
For example:
simmered in real chicken stock, then finished with sweet basil. Its
5
Cream of Tomato with Roasted Red Pepper is delicious creamy
Calcium, 4 % Iron
BEVERAGES
Furthermore, Campbell promoted their business in food service and launched beverage brands
such as vegetable juice, juice drink (V8 Splash) and juice (V8 V-Fusion) of V8 brands; tomato
juice. In addition, V8 is made 100% vegetable juice that is known as positive nutrition provides
the good for consumer nutrients and food groups that customer's patrons want and need.
Campbell has over 20 beverage kinds that provide a full serving of vegetable, and over 60 that
For example:
which helps maintain fluid balance and normal heart rhythm. Diets
sodium may reduce the risk of high blood pressure and stroke.
Besides, audience will have more choice into Spicy Hot V8 Vegetable Juice with strange and
various flavors.
6
Each variety of V8 Splash is a refreshing
V8 V-Fusion is a breakthrough juice that gives consumers a full serving of vegetables plus a full
serving of fruit in every 8-ounce glass. The result is a nutrition-packed beverage made of 100%
juice thats also delicious and refreshing. Get the Veggies, Taste the Fruit.
7
Campbell's Tomato Juice from Concentrate is the perfect blend of
taste and nutrition. Campbell's only uses tomatoes that are vine
ripened to perfection to ensure that gets the full rich tomato flavor
Concentrate.
ENTREES
Created by Campbell's Chefs, these entres provide quality, consistent products that will help
customer expand their menu and increase their profitability. Packaged in convenient aluminum
trays, Campbell's frozen entrees help consumer reduce food and labor costs by reducing the
number of ingredients needed on hand, by providing better control over portion size and by
taste, with a light and golden bread crumb topping. Its nutrition
8
V8 Garden Vegetable & Three Cheese Lasagna in V8 Frozen Entres is
sauce. It contains 230 Calories, 6 g Total Fat, 30 mg Cholesterol, 730 mg Sodium, 32 g Total
Campbell have a wide variety of salsas, sauces, gravies and marinades to suit any operation.
From bold and authentic Pace salsas and Campbell's Stock Pot sauces to our ready-to-serve
9
PEPPERIDGE FARM BAKERY PRODUCTS
Pepperidge Farm delivers the iconic brands patrons know and love. From delicious cookies,
crackers and baked pastries to Goldfish bread and snacks, Pepperidge Farm brands are available
IV) COMPETITION
Campbell sought in the highly competitive food industry and much capabilities worldwide
competition for its basic products. There are some main areas of competition such as brand
Nestle
Nestle was well- known brand name over the world, specifically, it was the worlds leader in
coffee ( Nescafe), one of the worlds largest bottled water markers (Perrier) , and a top player in
the pet food business ( Ralston Purina). There were several its famous brands such as Buitoni,
Friskies, Maggi, Nescafe and Nestle. Moreover, it became a major player in the U.S baby food
sector after adding Gerber baby foods to its baby principle business.
10
General Mills
General Mills was the second cereal maker in U.S and its brand involved Cheerios, Chex, Total,
Kix, and Wheaties. In addition, it was also a brand leader in flour (Gold Medal), baking mixes
(Betty Crocker, Bisquick), dinner mixes (Hamburger Helper), fruit snacks (Fruit Roll-Ups), grain
snacks (Chex Mix, Pop Secret), and yogurt (Colombo, Go-Gurt, and Yoplait). Although it got
much profits from US, it was trying to raise the reach and the point of its brands around the
world.
Kraft Foods
The newly independent company spun off by Mondelez International (formerly Kraft Foods
Inc.). Kraft cheeses, beverages (Maxwell House coffee, Kool- Aid drinks) convenient meals
(Oscar Mayer meats and Kraft macn cheese), grocery fare (Cool Whip, Shake N Bake), and
nuts (Planters). Kraft Food Group was looking to revive its trade in North American.
Heinz Company
H. J. Heinz had thousands of products and it spread over than 50 countries. It manufactured
ketchup, condiments, sauces, frozen food, beans, pasta meals, infant foods and the processed
food products. Its leading brands includes Heinz ketchup, Lea & Perrins sauces, Ore-Ida frozen
11
Direct Competitor Comparison
HNZ= HJ Heinz Co
12
V) OVERVIEW
In general, Campbells large- scale was also lower through the amount of employee (17,870), so
its revenue, net income and EBITDA were lower than others. Moreover, almost competition
companies had considerable investment and diversified products. Therefore, this was difficult
In 2011, it grew faster value growth than it did in 2010 which is recorded by The U.S. packaged
food industry because of a rise in commodity prices. In retail capacity, Americans began to eat
out more often again lead to slower growth rates of many kinds in 2011. Moreover, it happened
after a couple of years when cooking at home had become more prevalent alternative in
reflection to the recession and the sharp increase in commodity prices in 2008.
13
VII) ORGANIZATION CHART3
3
Organization Chart Campbell Soup (2014, July 23). Retrieved August 30, 2014, from
http://www.theofficialboard.com/org-chart/campbell-soup
14
VIII) FINANCIAL
Income Statement4
Period Ending Jul 28, 2013 Jul 29, 2012 Jul 31, 2011
4
Income Statement - Campbell Soup Company (CPB) (2014, August 29). Retrieved August 30, 2014,
from https://finance.yahoo.com/q/is?s=CPB
15
Effect Of Accounting Changes - - -
Other Items - - -
Balance Sheet6
Period Ending Jul 28, 2013 Jul 29, 2012 Jul 31, 2011
Assets
Current Assets
Cash And Cash Equivalents 333,000 335,000 484,000
Short Term Investments - - -
Net Receivables 635,000 553,000 560,000
Inventory 925,000 714,000 767,000
Other Current Assets 328,000 169,000 152,000
5
Income Statement - Campbell Soup Company (CPB) (2014, August 29). Retrieved August 30, 2014,
from https://finance.yahoo.com/q/is?s=CPB
6
Balance Sheet - Campbell Soup Company (CPB). (2014, August 29). Retrieved August 30, 2014, from
https://finance.yahoo.com/q/is?s=CPB
16
Current Liabilities
Accounts Payable 1,259,000 1,284,000 1,332,000
Short/Current Long Term Debt 1,909,000 786,000 657,000
Other Current Liabilities 114,000 - -
7
Balance Sheet - Campbell Soup Company (CPB). (2014, August 29). Retrieved August 30, 2014, from
https://finance.yahoo.com/q/is?s=CPB
17
The current ratio in 2012 is less than 1 and in 2013 is also; even it decrease compare to 2012.
This is seemed to be a bad thing because the current liabilities are greater than current assets and
So this figures are lower than 1, Campbell Soup Company ability is low to pay short-term
So cash ratios are lower than 1 in 2012 and 2013, Campbell Soup Company does not have
enough the amount of cash and cash equivalents sufficient to meet all the short-term debt.
However, there are very few companies have this capability so this is not too serious.
These rates are higher than 50 %, it shows that company is growing in its industry
18
Year 2013: 8223 / 1212 = 6.78
So total debt ratios are higher than 50 % and debt- equity ratio more than 1 in 2012 and 2013;
these show that company is growing in its industry. Moreover, Campbell Soup Company has the
capacity to use debt financing in its operation because it can cover its interest expense many
times over. However, this ability is not good in 2013 compared to 2012.
c. Profitable ratios
19
Year 2013: 458/8052 x 8052/8323 x 8323/1217 = 0.37
Over view, Campbell Soup Company is generating 10 cents in 2012 and 5 cents in 2013 of profit
from every sales dollar. Besides, the assets of company are generating 11 cents in 2012 and 5
cents 2013 per investment dollar. In addition, the firm returned more than 80% in 2012 and 30%
in 2013 to owners. To sum up, the company turns sales and assets into income decrease from
2012 to 2013.
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
identifying the internal and external factors that are favorable/ unfavorable for business to
succeed
20
SWOT
STRENGTHS WEAKNESSES
Focus on the powerful brands in three Less products content low sodium and
main categories: Soup & Simple Meals, sugar that influence to healthy image.
Snacks and Healthy Beverages Gross margins were impacted by
A leading food producer in the U.S, had a economic crisis before 2011.
presence in approximately 85%. Highly competitive soup market
Campbells products are sold in 120 Beverages and snack brands isnt popular
countries around the globe so sales is mostly affected by soup brands.
Stable capital with strong balance sheet The leadership and strategies may not
and net income. achieve the best effectiveness.
Innovate and cultivate the quality of
product and service that is relevant to
community health such as salt- reduction
push was one of the companys biggest
initiatives of the past decade.
Creating a good image in consumers mind
by their product commitment to
community health to help combat
childhood obesity and high blood pressure
in America
Strong social responsibility into protect
environment activities or community
organizations.
OPPORTUNITIES THREATS
Expanding its international presence, Marketing and advertise costs is high that
particularly in emerging markets influence to price of products.
Developing relevant technological Many competitors in the soup market.
advances to improve the quality of The demand and preference of consumers
products. is very hard to predict
Motivating the contribution of consumer
about Campbells products.
Studying to find out other various products
in order to meet the preference of
customer
Expanding its healthy beverages and
baked snacks brands.
21
Strengths:
Campbell Soup Company was developed bases on three core categories: Soup & Simple
Meals, Snacks and Healthy Beverages, so their products have been rated best as well as
Furthermore, it develop rapidly and expand brands all around the world dramatically (120
countries).Therefore, it gets the belief of customers, partners and have a strong position in
the market.
Based on the income statement and balance sheet, it has stable capital so it can maintain
Good technology and cultivation to make product that fulfil the customers health and
nutrition
Social and community activities contribute to create the good image and trust of consumers
Weaknesses:
Although developing of technology, fastidious customers arent still satisfied and require
The less time people cook at home, the more packaged food people need. It lead to high
competition.
According to Case 32, the strategies of CEO is not achieve the best effectiveness.
Opportunities:
Through the strengths and weaknesses, we have opportunities be able to apply to develop
business operation in future. Thanking to the strong brand name and package food
preference of consumer, Campbell has huge chances to extent worldwide. Moreover, the
22
innovation of technologies improves the productivities as well as make the standard of
products.
Threats:
Because of highly competitive market it has some risks such as price, unpredicted of
According to Film Structure and Management on Case 32 Campbell: Is the soup still
simmering?, the information which is provided in fiscal 2011, building on the success of the V8
V-Fusion juice offering, the company planned to introduce a number of new V8 V-Fusion Plus
Tea products. As a result, Campbell product V8 V-Fusion is in Growth Stage in the life cycle.
In 2010, there were 7 main strategies, but just only three of them motivate V8 V-Fusion to
develop in 2011. These are deliver higher levels of consumer satisfaction through superior
23
innovation focused on wellness while providing good value, quality, and convenience; grow its
icon brands within simple meals, baked snacks , and healthy beverages; and making its products
more broadly available and relevant in existing and new markets, consumer segments and eating
occasions.
However, from the chart and Net Income Statement above, we see that the net income went
down slightly from 2011 to 2013, specially is from 2012 to 2013. Because package foods market
has many competitors over times that lead to few new consumers, this market becomes saturated.
Thus, we identify products are in maturity stage. This is also the problem that company must to
consider.
Some recommendations that Campbell can take to improve the performance of its core soup
business include:
Improving and developing a new marketing campaign such as advertising and SNS to
Motivating R&D department to develop new flavors that satisfy people who care about
24
XI) CPM COMPETITIVE PROFILE MATRIX
Critical Success Factors Weight Rating Score Rating Score Rating Score Rating Score
As a result, the strongest performer in the market should be Heinz Company (3.47 point), and the next
competition is Nestle with 3, 33 point. In addition, the weakest company is Kraft Food (1, 84 point).
Specifically, they have a strong position for a long time and suppose strategies efficiently as well as
implement smoothly. Thus, they also create an extremely competitive market and risks to Campbell
Soup Company.
25
Rational
Nestle has the strongest reputation which is designed base on building trust and supporting with the
universal public worldwide.8 Nestle was the number one food company for sale in the world.
Moreover, Nestle is the world leader in coffee (Nescafe). It has many famous global brands included
Buitoni, Friskies, Maggi, Nescafe, and Nestle. It occupy 31% domestic market share 9 and always has
successful promotions10
Besides, Heinz Company also is one of the worlds largest food producers with thousands of products.
They produce ketchup, condiments, sauces, frozen foods, bean, pasta meals, infant foods and other
processed products. Moreover, its well- known products was ketchup and it is the outstanding
company in the U.S ketchup market .In addition, it also use social network service wisely to launch its
products successful.11 Heinzs products enjoy first or second place by market share about 50 countries
General Mills is the second cereal marker in the US and it covers over 100 countries. 12 It has some
reputation brands such as flour (Gold Medal), baking mixes (Betty Croker, Bisquick), dinner mixes
(Hamburger Helper), fruit snacks (Fruit Roll-Ups), grain snacks (Chex Mix, Pop Secret ) and yogurt
8
Nestl named one of the world's top ten most reputable companies. (2013, April 3). Retrieved August 30, 2014,
from http://www.nestle.com/Media/NewsAndFeatures/RepTrak-study-2013
9
Sara Lee International and Domestic Market Share and Market Score (n.d.). Retrieved August 29, 2014, from
http://amandapaynemba.wordpress.com/2012/03/27/sara-lee-international-and-domestic-market-share-and-market-
score/
10
Nestl chocolate promotion tastes sweet success with Payne tape (n.d.). Retrieved August 29, 2014, from
http://www.foodanddrinknews-online.net/2012/nestle-chocolate-promotion-tastes-sweet-success-with-payne-tape/
11
KIM BHASIN. (2011, October 27). Why Heinz Is Hyping Up Its Fancy New Ketchup with A Facebook-Only
Launch Read more: Http://www.businessinsider.com/heinz-ketchup-facebook-launch-2011-10#ixzz3BrabHX8t.
Retrieved August 29, 2014, from http://www.businessinsider.com/heinz-ketchup-facebook-launch-2011-10
12
Creating shareholder value (n.d.)Retrieved August 29, 2014, from http://phx.corporate-
ir.net/phoenix.zhtml?c=74271&p=irol-irhome
26
(Colombo, Go-Gurt, and Yoplait).13 Besides, the development of technology causes its strong online
Kraft Foods is new company so its reputation is not high, but it is the fourth- largest packaged-foods.15
On the contrary, it brings the good customer service for consumers and it try to improve its technology
13
Dess, Lumpkin, & Eisner (n.d.) Case 32: Campbell- Competition. In Strategic Management (p. C240)
14
Ann Meyer (n.d.) Powering Up Innovation at General Mills. Retrieved August 29, 2014, from
http://www.retailleader.com/article-powering_up_innovation_at_general_mills_-2669-part1.html
15
Top 9 Most Disliked U.S. Companies: 2012. (2012, February 21). Retrieved August 29, 2014, from
http://www.thinkadvisor.com/2012/02/21/top-9-most-disliked-us-companies-2012
16
About Kraft Foodservice (n.d.). Retrieved August 29, 2014, from
http://www.kraftfoodservice.com/about/aboutkraft.aspx
27
The average weighted score for EFE matrix is 3.11 Campbell soup company. The company total
weighted score higher than 2.5 is consider as strong in position. As the results shows that
Campbell soup Company is responding above average to the environment for exploiting
Rational
Opportunities:
Although Campbell sales are still predominantly America based, they now have operating
segments in Canada, Mexico, Brazil, Germany, Sweden and China. These countries now
have sizable every class in communities with access to Campbell products and the
competitiveness significantly.18
17
Katje, C. (n.d.). Campbell's Justifies High P/E With Acquisitions And International Growth. Retrieved August 29,
2014, from: http://seekingalpha.com/article/1509292-campbells-justifies-high-p-e-with-acquisitions-and-
international-growth
18
Gelski, J. (2014, May 3). New technologies heating up for soup industry. Retrieved August 29, 2014, from
http://www.foodbusinessnews.net/articles/news_home/Research/2014/03/New_technologies_heating_up_fo.aspx?I
D=%7BA980A3FC-A947-4729-8064-442E1942B3BE%7D
28
Because of fierce competitive environment, so we are always receptive to customer
Studying to find out other various products in order to meet the preference of customer.
Nowadays, the dining demand of customers are very various as well as the desire in the
facility of food in daily life. Hence, the more we develop our product, the more we fulfill
Expanding its healthy beverages and baked snacks brands as well as social responsibility.
Campbell is not only creating better goods for customers heath, but also contributing a
major role for the community to continue to maintain a good image to customers.21
Threats
Continued slow economic growth here in the US and globally may slow their sales, and
lower expected profits from Hershey Food Investments. This could in turn put pressure
19
Campbell Soup Company heats up customer satisfaction with QlikTech. (2007, May 21). Retrieved August 29,
2014, from http://www.businesswire.com/news/home/20070521005084/en/Campbell-Soup-Company-Heats-
Customer-Satisfaction-QlikTech#.VAGfEfl_u1Q
20
Keith Nunes. (2014, March 17). Inside Campbell Soups product development process. Retrieved August 29,
2014, from
http://www.foodbusinessnews.net/articles/news_home/Consumer_Trends/2014/03/Inside_Campbell_Soups_product
.aspx?ID=%7BF867E0F6-F5A1-4D86-BF76-F71D75429A3D%7D
21
Sr. Manager - Customer Quality. (2014, July 3). Retrieved August 29, 2014, from
http://www.linkedin.com/jobs2/view/16649907
29
on the company to decrease costs by cutting personnel, investments in manufacturing,
conglomerates such as Heinz, Nestle, General Mills and Kraft Foods. These companies
compete through very well-known brands and globally. They compete not only for space
right next to Campbell's products on the store shelf but also in most every place
Campbell's products can be found. These companies are well established and can
Many buying decisions require predictions of another person's product attitudes. Yet,
consumers are often inaccurate predictors, even for familiar others. We provide strong
evidence that target familiarity can even hurt accuracy in the presence of attitude
their level of projection and encoded the attitude information, but they did not use this
information. Instead, they retrieved less diagnostic, pre-stored information about the
22
Marketing problems affect Campbell Soup Company. (n.d.). Retrieved August 29, 2014, from
http://www.ukessays.com/essays/marketing/marketing-problems-affect-campbells-soup-company-marketing-
essay.php
23
Dess, Lumpkin, & Eisner. (n.d.). Case 32. In Strategic Management.
24
Monica Watrous. (2013, November 20). Campbell hopes to hit with Hispanic consumers. Retrieved August 29,
2014, from
30
XIII) INTERNAL FACTOR EVALUATION MATRIX (IFE)
4 Stable capital with strong balance sheet and net income. 0.10 4 0.40
America
http://www.foodbusinessnews.net/articles/news_home/Business_News/2013/11/Campbell_hopes_to_hit_with_His.a
spx?ID=%7B170BDD42-EC08-4352-96F4-A832881CC5AF%7D
31
Weaknesses Weight Rating Weighted Score
The average weighted score for IFE matrix is 2.7 Campbell soup company. The company total
weighted score higher than 2.5 is consider as strong in position. As the results shows that
Rational
Strengths:
Focus on the powerful brands in three main categories: Soup & Simple Meals, Snacks
32
Because of the convenience and time savings, so the demands of package- foods are used
widely in the market. Therefore, these items can easily be received and have increasingly
trended.25
The effective strategies and clear management that make Campbell Soup Company
become the important position in U.S market and go beyond other competitors.26
Diversification of products help customers more options and to attract more new
customers. Reforms that help catch market changes and develop business flexibly.27
Although the economy is more volatile due to the financial situation which is unstable,
Innovate and cultivate the quality of product and service that is relevant to community
health such as salt- reduction push was one of the companys biggest initiatives of the
past decade.29
25
Dess, Lumpkin, & Eisner. (n.d.). Case 32: Campbell- Industry Overview. In Strategic Management.
26
Joe Cooney. (2014, August 21). Could Camden's Campbell Soup be next big takeover candidate?
Retrieved August 29, 2014, from
http://www.courierpostonline.com/story/money/business/2014/08/21/could-camdens-campbell-soup-
be-next-big-takeover-candidate/14385823/
27
Monica Watrous. (2014, April 23). Campbell advancing sustainability, nutritional goals. Retrieved
August 29, 2014, from
http://www.foodbusinessnews.net/articles/news_home/Business_News/2014/04/Campbell_advancin
g_sustainabil.aspx?ID=%7BE8CB0B1D-3460-4A4D-BCF3-05648FEAFA82%7D
28
Campbell's Profit Heats Up on Strong Soup Sales. (2013, May 20). Retrieved August 29, 2014,
from http://www.dailyfinance.com/2013/05/20/campbell-soup-earnings/
33
Creating a good image in consumers mind by their product commitment to community
health to help combat childhood obesity and high blood pressure in America.30
organizations.31
Weaknesses
Less products content low sodium and sugar that influence to healthy image.
It leads to the negative aspect for consumer and the sales may be effect.32
The adjustment prices of competitors cause the confusion for the consumer in selection of
Campbells product.
Beverages and snack brands isnt popular so sales is mostly affected by soup brands.
29
Campbell's adding salt back to its soups. (2012, September 6). Retrieved August 29, 2014,
from http://www.theglobeandmail.com/life/health-and-fitness/campbells-adding-salt-back-to-its-
soups/article587037/
30
RICARDO LOPEZ. (2014, January 9). Food, beverage firms remove 6.4 trillion calories from
products. Retrieved August 29, 2014, from http://articles.latimes.com/2014/jan/09/business/la-fi-mo-
food-beverage-firms-remove-64-trillion-calories-from-products-20140109
31
CAMPBELL GIVES AMERICAS KITCHEN PANTRIES A HEART-HEALTHY MAKEOVER WITH
THE LAUNCH OF THE ADDRESS YOUR HEART PANTRY PROJECT. (2014, February 6).
Retrieved August 29, 2014, from 31 CAMPBELL GIVES AMERICAS KITCHEN PANTRIES A
HEART-HEALTHY MAKEOVER WITH THE LAUNCH OF THE ADDRESS YOUR HEART PANTRY
PROJECT
32
Scott- Thomas, C. (2011, July 13). Campbell's adding salt back to its soups. Retrieved August 29,
2014, from http://www.foodnavigator-usa.com/Suppliers2/Campbell-s-to-add-back-sodium-to-
combat-soup-sales-slump
34
Campbell Soup Company should concentrate on beverage and snack brand more to
The leadership and strategies may not achieve the best effectiveness.
Giving specific strategies and training employees to help company overcome the difficult
problems.
33
CPB's ROI over the last five Years. (n.d.). Retrieved August 30, 2014, from
http://csimarket.com/stocks/CPB-Annual-Return-on-Investment-ROI.html
34
Industry Information. (n.d.). Retrieved August 30, 2014, from
http://www.advfn.com/exchanges/NYSE/CPB/financials
35
Food Processing's Top 100. (n.d.). Retrieved August 30, 2014, from
http://www.foodprocessing.com/top100/top-100-2013/
35
-1 Brand and Image -1 Competitive pressure
-1 Know-how -1 Risk involved in business
Average: - 1.33 Average: -1.33
Total axis Y core 1.67
The Strategic Position and Action Evaluation (SPACE) Matrix is one of the strategic
management tool for analyzing the company and its environment to formulating the strategies. It
conservative strategies are most suitable for a given organization, company or business.
The significant factors in SPACE matrix assess that Campbells financial performance for
instance liquidity, cash flows, working capital and return on investment (ROI) have financial
4 (2.53; 1.67)
CONSERVATIVE 3 AGGRESSIVE
2
1
X
4
3
2
DEFENSIVE 1 COMTETITIVE
36
Campbell Soup Companys directional vector is located in the aggressive area (2.53 X; 1.67 Y in
upper-right quadrant) of the matrix, it shows that a firm is in an outstanding position to utilize its
threats.
As a result, Campbell Soup Company should focus on aggressive strategy because it has strong
competitive position in package food industry. Company need to use their strengths in order to
direct to market development, market penetration, product development, forward, backward and
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According to Case 32 Campbell: Is the soup still simmering ? and the information which we
used to research, we realize that the US Packaged- food industry recorded faster current value
growth in 2012 than it did in 2010. Moreover, product of Campbell is at the development stage
such as V8 Beverage. To sum up, Campbell Soup Company has strong competitive position in
High
7.5%
Stars Question Marks
48% 26%
Market growth
Rate
18.5%
Low
Campbell's U.S. Soup, Sauces and Beverages (48% sales, 64% income) are the main categories
to earn revenues and operating income. U.S. Soup, Sauces and Beverages include products such
as Campbells condensed and packaged soups; Swanson broth and canned poultry; Prego pasta
sauce; Pace Mexican sauce; Campbells Chunky chili; Campbells canned pasta, gravies, and
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beans; Campbells Supper Bakes meal kits; V8 juice and juice drinks as well as Campbells
tomato juice. The company's 2010 market share in the "wet soup" market was 63.6%.
Campbell's Baking and Snacking categories (26% sales, 22% income) includes, Pepperidge Farm
cookies, crackers (such as goldfish), bakery, and frozen products in U.S. retail. The segment also
includes Campbell's Arnotts of Australia which is the largest biscuit and second largest snack
producer in the country. Arnott's also has significant presences in the Asia Pacific region.
The International Soup, Sauces and Beverages categories (18.5% sales, 11% income) includes
the soup, sauce and beverage businesses outside of the United States, including Europe, Mexico,
Latin America, the Asia Pacific region and the retail business in Canada. Campbell's sells the
Erasco and Heisse Tasse soups in Germany, Liebig and Royco soups in France, Devos Lemmens
mayonnaise and cold sauces and Campbells and Royco soups in Belgium, and Bla Band soups
and sauces in Sweden. In Asia Pacific, the company markets its Campbells soup and stock,
Swanson broths and V8 beverages. In Canada, operations include Habitant and Campbells
soups, Prego pasta sauce, V8 beverages and certain Pepperidge Farm products.
The North America Foodservice (7.5% sales, 3% income) includes Campbell's Away From
Home operations which distributes its products to restaurants, schools, colleges & universities,
health care, convenience stores, vending, and delis in the United States and Canada.36
36
Campbell Soup Company (CPB). (2014, August 29). Retrieved August 30, 2014, from
http://www.wikinvest.com/stock/Campbell_Soup_Company_(CPB)
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37
Market development: spreading the power and perceived about Campbells product in the
available markets by improving and focusing on Marketing and Advertising to remain the
position. In addition, Campbell carries out a plan to develop market such as diversifying products
which appropriate customer segments. For example, the promotion is buy 4 soup cans get 1
37
Campbell Soup - defensive is not so defensive any more. (2013, November 19). Retrieved August 30,
2014, from http://financialorbit.blogspot.com/2013/11/campbell-soup-defensive-is-not-so.html
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Market penetration: seeking and studying the new potential markets such as South East ASIA,
and understanding sociocultural and taste in order to devise some strategies for the awareness of
Forward integration: purchasing the companies which are going to bankrupt and then investing
products.
Related diversification: diversifying products by growing new brands such as porridge can and
instant noodles.
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XVI) QUANTITIVE STRATEGIC PLANNING MATRIX (QSPM)
Problem: Company are facing detrimental situation in business, specifically it is not growing in
recent year and even it have decrease trend in the future.
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main categories: Soup & Simple Meals,
Snacks and Healthy Beverages
A leading food producer in the U.S had
0.07 2 0.14 4 0.28 1 0.07
a presence in approximately 85%.
Campbells products are sold in 120
0.06 1 0.06 3 0.18 1 0.06
countries around the global
Stable capital with strong balance sheet
0.10 3 0.30 4 0.40 2 0.20
and net income
Innovate and cultivate the quality of
product and service that is relevant to
community health such as salt-
0.12 3 0.36 4 0.48 4 0.48
reduction push was one of the
companys biggest initiatives of the
past decade
Strong social responsibility into protect
environment activities or community 0.11 4 0.44 4 0.44 1 0.11
organizations
Creating a good image in consumers
mind by their product commitment to
community health to help combat 0.13 4 0.52 4 0.52 1 0.13
childhood obesity and high blood
pressure in America
WEAKNESSES
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Beverages and snack brands isnt
popular so sales is mostly affected by 0.09 3 0.27 1 0.09 4 0.36
soup brands.
Situation: According to income statement of Campbell Soup Company from 2010 to 2012 and
the information that we research, showed that the stock fell 5% after Campbell said its fiscal
second-quarter earnings fell 8% from a year ago. Moreover, the company chopped its outlook for
the rest of the year and warned profits are likely to slip another 1% to 3% for the full year.
Hence, it faces a slowdown in net income. As we can see the current problem of Campbell Soup
penetration and product development in this time in order to overcome a slowdown profit
situation.
Decision: According to QSPM, Market Development is better because the Market Penetration
(5.63) is lower than the Market penetration (6.19). We decide to direct the new potential markets.
Strategies:
o Choosing the suitable products and flavor to meet customer satisfaction for each region
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o Consider the form of advertising such as SNS, Television, and Magazine
Set the happy days to increase purchasing capacity. These happy days are Monday or
Making competitive event to gain the prize on SNS by appealing customers to take the
o Improving customers care, building the close relationship with customer and encouraging
Analysis QSPM:
Through information in Case 32 and main official website, we see that the package food is
thriving and Campbell Soup Company is one of the companies that have strong competitive
position in this industry. Hence, we devise two the most important strategies: Market
Development and Market Penetration in order to Campbell can understand, solve problem and
open new ways in business as they can. Besides, to choose which the better strategy is we
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In conclusion, through QSPM we can identify the market development is more attractiveness
than market penetration. The new strategy helps Campbell company can solve the current
problem (income is not growing in recent years) and orienting the development in future
permanently.
XVII) RECOMMENDATION
Due to current statuses of company and market and the matrix tables, Campbell Soup Company
should consolidate and direct to the new potential markets such as: international presence and
Specific strategy:
Having plans to open at least 1 factory at Vietnam, Thailand and Czech Republic.
Inviting customers to join in advertising to reduce costs and built the trust.
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Training employees and improving customer service relentlessly to attract customers so
XVIII) TIMETABLE
Strategies Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
International presence strategy
Building factories (research
position, hiring or buy
land)
Hiring CEO or board of
directors
Developing new products
(research culture and flavor )
Setting up marketing
campaign
Making event for opening
Stable financial situation in incomes and expenses strategy
Selecting prestige local
suppliers
Inviting customers to join in
advertising
Set the happy hours
Training employees and
improving customer service
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