Question
How high a level of involvement is the typical consumer likely to have with Campbell's Soup's adult food products, compared with its baby food products?
How high a level of involvement is the typical consumer likely to have with Campbell's Soup's adult food products, compared with its baby food products? What are the implications for the company's marketing efforts?
Which social influences on the buying decision process are reflected in Campbell's Soup's marketing activities, and why?
Which psychological influences on the buying decision process are being addressed by Campbell's Soup's marketing efforts?
Eyeing the way today's consumers buy, prepare, and consume food products, Campbell's Soup has been busy cooking up new marketing for new lifestyles and demographics. The 150-year-old company still offers its traditional condensed soups in cans with the familiar red-and-white label, as well as Chunky heat-and-eat canned soups. It also markets other foods under well-known brands such as Pepperidge Farms, Prego, Swanson, and V8. However, with revenues plateauing, Campbell's has had to develop a new recipe for long-term growth, which includes refreshing its pantry and responding to the buying patterns of Millennials and young families.
Over the past decade, the company has acquired several successful brands and products associated with healthy eating. For example, it purchased Bolthouse Farms, which markets carrots, salad dressings, smoothies, and fruit juices. This enhanced Campbell's strength in food categories that consumers perceive as fresh and nutritious. It also acquired Plum Organics, which makes all-natural baby foods and snacks, allowing it to expand into a fast-growing niche favored by health-conscious parents. Then it bought Garden Fresh Gourmet, which makes refrigerated salsas, hummus, and dips, appealing to consumers who prefer authentic, flavorful, and fresh ingredients. And it purchased Pacific Foods, known for all-natural soups, broths, and non-dairy beverages made from locally sourced ingredients.
Another trend Campbell's Soup's marketers spotted is the rise of anytime, all-the-time snacking by on-the-go consumers. In response, the company has been introducing new snack products under its existing Pepperidge Farm brand. It also bought Snyder's-Lance, the parent company of Cape Cod chips, Pop Secret popcorn, Snyder's pretzels, and other popular snacks. With these acquired products, Campbell's revenues now exceed $10 billion. Just as important, the acquisition tilts the company's product portfolio toward foods that fit contemporary tastes and lifestyles.
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Campbell's Soup is working hard to identify new flavors that will tempt the taste buds of increasingly adventurous consumers. Its chefs travel the world visiting restaurants, food trucks, and farms, sampling local produce and unique spices. Then they spend time learning to make local dishes as inspiration for new products in the Campbell portfolio. This research helps uncover new ingredients or sources of ingredients, such as a special potato grown only in one region, for use in a new product or to add extra zest to an existing product's recipe.
Internal archives are another source of product inspiration. John Dorrance, who headed Campbell's Soup a century ago, was the inventor of condensed soup. Based on Dorrance's recipe for tomato soup, company chefs recently used New Jersey tomatoes to create a limited-edition Beefsteak Tomato Soup. Lately, the head of Campbell's Culinary & Baking Institute has been studying the original recipes of Margaret Rudkin, founder of Pepperidge Farm, as he thinks about how to combine old-fashioned goodness with innovative flavors for today's palates.
Consumers often buy food products online as well as shopping in supermarkets and specialty grocery stores. With this in mind, Campbell's Soup has begun testing the online sale of premium, ready-to-heat soups, packaged in glass jars and delivered to the consumer's door. The soups are made from ingredients freshly grown near the company's production plants, and the packaging is designed to reflect an upscale positioning in contrast with that of more traditional canned soups. The test will not only provide feedback on the new product's appeal, it will help Campbell's Soup gain more experience in e-commerce that it can apply to selling a wider range of the foods, beverages, and snacks in its product pantry.
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