1. STRATEGIC MANAGEMENT
CASE 32: CAMPBELL: IS THE SOUP STILL SIMMERING?
Professor: Dr. Thomas Bradley
CLASS 1
GROUP 6:
Names: KEUKA ID Numbers:
Phạm Thùy An 295913
Nguyễn Thị Phương Hà 295901
Phan Tuấn Vũ 295919
2. CONTENT
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. Inte rnal 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
3. 1
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. Campbell’s
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 (2005–2009), So Many Many Reasons It's So Mmm Mmm Good
(2008–2010), It's Amazing What Soup Can Do! (2010–present), never underestimate the power
of soup! (1990's). Campbell's brands are listed more detail below.
1 (n.d.). Retrieved August 30, 2014, from http://www.campbellsoupcompany.com/about -campbell
4. 1 Mission: is to nourish people’s lives by offering a wide variety of convenient, delicious, and
affordable food choices that can help everyone enjoy a balanced, healthful diet.
The foundation of Campbell’s culture is three core values:
Character: We are driven to inspire trust and act with integrity in all that we do. We take
personal responsibility, and we drive our future with optimism.
Competence: We are a learning organization that values diverse perspectives. We seek to
develop new capabilities to drive growth and innovation, and we execute our plans with
2
agility to deliver business results.
Teamwork: We bring an enterprise-wide mindset to our work by connecting and
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
deliver sustainable, profitable net sales growth.
3 Objectives:
Nourishing our planet
Nourishing our
neighbors
Nourishing our
employees
Nourishing our
customers
Cut the
Environmental
Footprint of Our
Product Portfolio in
Hal
Measurably Improve
the Health of Young
People in Our
Hometown
Communities
Leverage CSR and
Sustainability as Key
Drivers of Employee
Engagement in Our
Culture
Continue to Provide
Consumers with
Nutrition and
Wellness Choices in
Our Product Portfolio
5. 3
4 Strategies:
Develop its brands in three core categories: soup simple meals, snacks and healthy
beverages.
Expand the international presence.
Ameliorate the organizational excellence, diversity and engagement.
Increase margins by adjust price realization and company-wide total cost management.
Care for their customer’s wellness needs, product quality and product convenience.
Consolidate its scale of company by outside partnerships and acquisitions
Commit strongly to sustainability and corporate social responsibility.
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.
6. 4
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. Campbell’s soup offers all the flavor, format and
versatility customer needs to satisfy consumer demands as much as possible.
Campbell's Signature soups
Available in a range of authentic flavors, Campbell's
Signature soups make it simple to deliver customer
favorites every day.
Campbell' Signature soups are available in two formats
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
choose. For example:
Beef Pot Roast is made with tender beef and vegetables including
potatoes, carrots and celery in a seasoned broth simmered with
aromatic herbs. Its nutrition contains 120 Calories, 10 mg
Cholesterol, 3 g Total, 880 mg Fat Sodium, Total 15 g Carbohydrate,
2 Product Research. (n.d.). Retrieved August 30, 2014, from http://www.campbellfoodservice.com/
7. 7 g Protein, 10 % Vitamin A, 4 % Calcium, 6 %Iron.
Buffalo Style Chicken with Blue Cheese is a creamy chicken soup
made with tender vegetables and blue cheese finished with a dash
of hot sauce. Its nutrition contains 210 Calories, 14 g Total Fat, 30
mg Cholesterol, 860 mg Sodium, 14 g Total Carbohydrate, 8 g
Protein, 6 % Vitamin C, 20 %Calcium, 2 %Iron.
Campbell's Reserve soups
Campbell's Reserve soups also known as the art of flavor is
premium, appealing soups that make it easy to bring complex
flavor to the menu. With 23 surprising flavors are handcrafted
with real cream, rich stocks and distinctive specialty ingredients
like Thai spices, and Madeira wine.
5
For example:
Broadway Basil & Tomato Bisque is made with a pure´e of vine-ripened
red tomatoes blended with heavy cream and onions
simmered in real chicken stock, then finished with sweet basil. Its
nutrition contains 280 Calories, 21 g Total Fat, 35 mg Cholesterol,
820 mg Sodium, 19 g Total Carbohydrate, 3 g Protein, 6 %
Vitamin A, 4 % Vitamin C, 2 % Calcium, 6 % Iron.
8. Cream of Tomato with Roasted Red Pepper is delicious creamy
bisque of tomatoes and roasted red bell peppers, finished with
cream and butter. . Its nutrition contains 330 Calories, 25 g Total
Fat, 65 mg Cholesterol, 970 mg Sodium, 23 g Total
Carbohydrate, 4 g Protein, 25 % Vitamin A 10 % Vitamin C, 6 %
Calcium, 4 % Iron
6
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
provide a good source of vitamins.
For example:
V8 100% Vegetable Juice Low Sodium helps body get 2 servings
of vegetables in every nutritious 8-ounce serving; it can reach 70
percent less sodium. It’s also an excellent source of potassium
which helps maintain fluid balance and normal heart rhythm. Diets
containing foods that are a good source of potassium and low in
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.
9. 7
Each variety of V8 Splash is a refreshing
blend of delicious fruity flavors with a hint of
carrot and includes Antioxidants Vitamins A
and C. It’s the perfect afternoon lift to help
consumers stay energized and active
throughout the day.
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 that’s also delicious and refreshing. Get the Veggies, Taste the Fruit.
10. 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
you've come to expect from Campbell's Tomato Juice from
8
Concentrate.
ENTREES
Created by Campbell's Chefs, these entrées 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
reducing preparation and clean-up time.
Garden Vegetable Lasagna in Campbell’s Frozen Entrées
collection made by fresh egg noodle pasta layered with carrots,
broccoli, spinach and onions in a rich blend of ricotta,
mozzarella, and American and Parmesan cheeses. Well-balanced
taste, with a light and golden bread crumb topping. Its nutrition
contains 310 Calories, 16 g Total Fat, 15 mg Cholesterol, 800 mg
Sodium, 33 g Total Carbohydrate, 8 g Protein, 6 %Vitamin A, 15 %Calcium, 2 % Iron.
11. V8 Garden Vegetable & Three Cheese Lasagna in V8 Frozen Entrées is
a delicious way to get vegetables. Lasagna noodles layered with rich
diced tomatoes, creamy ricotta cheese, sweet red peppers, mushrooms,
zucchini, broccoli, yellow peppers, spinach, carrots, onions and
mozzarella, Parmesan and Romano cheeses steeped in a tangy tomato
sauce. It contains 230 Calories, 6 g Total Fat, 30 mg Cholesterol, 730 mg Sodium, 32 g Total
Carbohydrate, 11 g Protein, Vitamin A, Vitamin C, Calcium, Iron, Vitamin E, Vitamin B6,
9
Vitamin B12, Zinc 15 %.
Tender cooked beans, beef, and other seasonings are blended
together to offer a top quality chili at a competitive price.
SALSAS, SAUCES, GRAVIES & MARINADES
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
sauces and gravies
12. 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
in the varieties and formats you need to drive your business
10
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
recognition, quality, price, advertising, promotion, convenience, and service.
Nestle
Nestle was well- known brand name over the world, specifically, it was the world’s leader in
coffee ( Nescafe), one of the world’s 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.
13. 11
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 mac’n 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
potatoes, Boston Market, T.G.I Friday’s, and Weight Watchers foods.
15. 13
V) OVERVIEW
In general, Campbell’s 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
competition for Campbell.
VI) MARKET CONDITION
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.
16. 14
VII) ORGANIZATION CHART3
3 Organization Chart Campbell Soup (2014, July 23). Retrieved August 30, 2014, from
http://www.theofficialboard.com/org-chart/campbell-soup
17. 15
VIII) FINANCIAL
Income Statement4
Period Ending Jul 28, 2013 Jul 29, 2012 Jul 31, 2011
Total Revenue 8,052,000 7,175,000 7,143,000
Cost of Revenue 5,140,000 4,365,000 4,255,000
Gross Profit 2,912,000 2,810,000 2,888,000
Operating Expenses
Research Development 128,000 116,000 120,000
Selling General and Administrative 1,653,000 1,532,000 1,496,000
Non Recurring 51,000 7,000 60,000
Others - - -
Total Operating Expenses - - -
Operating Income or Loss 1,080,000 1,155,000 1,212,000
Income from Continuing Operations
Total Other Income/Expenses Net 10,000 8,000 10,000
Earnings Before Interest And Taxes 1,090,000 1,163,000 1,222,000
Interest Expense 135,000 114,000 122,000
Income Before Tax 955,000 1,049,000 1,100,000
Income Tax Expense 275,000 325,000 351,000
Minority Interest 9,000 10,000 3,000
Net Income From Continuing Ops 680,000 724,000 749,000
Non-recurring Events
Discontinued Operations (231,000) 40,000 53,000
Extraordinary Items - - -
4 Income Statement - Campbell Soup Company (CPB) (2014, August 29). Retrieved August 30, 2014,
from https://finance.yahoo.com/q/is?s=CPB
18. Effect Of Accounting Changes - - -
Other Items - - -
Net Income 458,000 774,000 805,000
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares 458,000 774,000 805,000
5
16
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
Total Current Assets 2,221,000 1,771,000 1,963,000
Long Term Investments - - -
Property Plant and Equipment 2,653,000 2,127,000 2,103,000
Goodwill 2,297,000 2,013,000 2,133,000
Intangible Assets 1,021,000 496,000 527,000
Accumulated Amortization - - -
Other Assets 131,000 123,000 136,000
Deferred Long Term Asset Charges - - -
Total Assets 8,323,000 6,530,000 6,862,000
Liabilities
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
19. 17
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 - -
Total Current Liabilities 3,282,000 2,070,000 1,989,000
Long Term Debt 2,544,000 2,004,000 2,427,000
Other Liabilities 798,000 1,260,000 983,000
Deferred Long Term Liability Charges 489,000 298,000 367,000
Minority Interest (7,000) - 8,000
Negative Goodwill - - -
Total Liabilities 7,106,000 5,632,000 5,774,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 12,000 20,000 20,000
Retained Earnings 1,772,000 9,584,000 9,185,000
Treasury Stock (364,000) (8,259,000) (8,021,000)
Capital Surplus 362,000 329,000 331,000
Other Stockholder Equity (565,000) (776,000) (427,000)
Total Stockholder Equity 1,217,000 898,000 1,088,000
Net Tangible Assets (2,101,000) (1,611,000) (1,572,000)
7
a. Short- term solvency or liquidity, ratios.
Current ratio = Current assets/ Current liabilities
Year 2013: 2221/ 3282 = 0.676
Year 2012: 1771/ 2070 = 0. 855
7 Balance Sheet - Campbell Soup Company (CPB). (2014, August 29). Retrieved August 30, 2014, from
https://finance.yahoo.com/q/is?s=CPB
20. 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
18
net working capital is negative.
Quick ratio = Current assets - Inventory / Current liabilities
Year 2013: 2221 - 925 / 3282 = 0.394
Year 2012: 1771 - 714 / 2070 = 0.510
So this figures are lower than 1, Campbell Soup Company ability is low to pay short-term
liabilities without selling the inventories.
Cash ratio = Cash / Current liabilities
Year 2013: 333/ 3282 = 0.101
Year 2012: 335/ 2070 = 0.161
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.
b. Long- term solvency or financial leverage, ratios.
Total debt ratio = Total assets - Total equity / Total assets
Year 2013: 8323 - 1217/ 8323 = 0.853
Year 2012: 6530 - 898 / 6530 = 0.862
These rates are higher than 50 %, it shows that company is growing in its industry
Debt - equity ratio = Total debt/ Total equity
Year 2013: 7106/ 1217 = 5.83
Year 2012: 5632 / 898 = 6.27
Equity multiplier = Total assets/ Total equity
21. 19
Year 2013: 8223 / 1212 = 6.78
Year 2012: 6530 / 898 = 7.27
Times interest earned ratio = EBIT/ Interest
Year 2013: 1090/ 135 = 8.07
Year 2012:1163/ 114 = 10.20
Cash coverage ratio = EBIT + Depreciation / interest
Year 2013: 1090 + 407 / 135 =11.08
Year 2012:1163 + 262 / 114 = 12.5
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
Profit margin = Net income / Total assets
Year 2013:458/ 8052 = 0.05
Year 2012:774/ 7175 = 0.10
Return on assets (ROA) = Net income / Total assets
Year 2013:458/8232= 0.05
Year 2012: 774/ 6530= 0.11
Return on equity (ROE) = Net income / Total equity
Year 2013: 458/ 1217 = 0.37
Year 2012: 774/898 = 0.86
ROE = Net income/ Sales x Sales / Assets x Asset / Equity
22. Year 2013: 458/8052 x 8052/8323 x 8323/1217 = 0.37
Year 2012: 74/7175 x 7175/6530 x 6530/898 = 0.86
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
20
2012 to 2013.
IX) SWOT ANALYSIS
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats inside a company, project, or a business venture. It involves
identifying the internal and external factors that are favorable/ unfavorable for business to
succeed
23. 21
SWOT
STRENGTHS
Focus on the powerful brands in three
main categories: Soup & Simple Meals,
Snacks and Healthy Beverages
A leading food producer in the U.S, had a
presence in approximately 85%.
Campbell’s products are sold in 120
countries around the globe
Stable capital with strong balance sheet
and net income.
Innovate and cultivate the quality of
product and service that is relevant to
community health such as salt- reduction
push was one of the company’s biggest
initiatives of the past decade.
Creating a good image in consumer’s 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.
WEAKNESSES
Less products content low sodium and
sugar that influence to healthy image.
Gross margins were impacted by
economic crisis before 2011.
Highly competitive soup market
Beverages and snack brands isn’t popular
so sales is mostly affected by soup brands.
The leadership and strategies may not
achieve the best effectiveness.
OPPORTUNITIES
Expanding its international presence,
particularly in emerging markets
Developing relevant technological
advances to improve the quality of
products.
Motivating the contribution of consumer
about Campbell’s products.
Studying to find out other various products
in order to meet the preference of
customer
Expanding its healthy beverages and
baked snacks brands.
THREATS
Marketing and advertise costs is high that
influence to price of products.
Many competitors in the soup market.
The demand and preference of consumers
is very hard to predict
24. 22
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
have a strong background.
According to main official website, Campbell is a global reputation company in U.S.
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
the business operations and be able to overcome the risks unanticipated.
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 aren’t still satisfied and require
products which has much lower sodium and sugar.
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
25. innovation of technologies improves the productivities as well as make the standard of
23
products.
Threats:
Because of highly competitive market it has some risks such as price, unpredicted of
consumer and sales.
X) PRODUCT LIFE CYCLE
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
26. 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
24
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
attract new consumers and remain potential customers’ purchases.
Motivating R&D department to develop new flavors that satisfy people who care about
flavors as well as health-conscious individuals.
27. XI) CPM – COMPETITIVE PROFILE MATRIX
Nestle General Mills Kraft Foods Heinz Company
Critical Success Factors Weight Rating Score Rating Score Rating Score Rating Score
Brand reputation 0.13 4 0.52 2 0.26 1 0.13 3 0.39
25
Level of product
integration
0.08 4 0.32 3 0.24 2 0.16 1 0.08
Range of products 0.05 3 0.15 1 0.05 2 0.10 4 0.2
Successful new
introductions
0.04 3 0.12 2 0.08 2 0.08 4 0.16
Market Share 0.14 3 0.42 1 0.14 2 0.28 4 0.56
Sales per employee 0.08 2 0.16 3 0.24 2 0.16 3 0.24
Low cost structure 0.05 4 0.20 2 0.10 1 0.05 3 0.15
Variety of distribution
channels
0.07 4 0.28 2 0.14 2 0.14 4 0.28
Customer retention 0.02 3 0.06 2 0.04 3 0.06 4 0.08
Superior IT capabilities 0.11 3 0.33 4 0.44 2 0.22 3 0.33
Strong online presence 0.15 3 0.45 2 0.30 2 0.30 4 0.60
Successful promotions 0.08 4 0.32 2 0.16 2 0.16 4 0.32
Total 1.00 - 3,33 - 2.19 - 1,84 - 3,47
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.
28. 26
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 share9 and always has
successful promotions10
Besides, Heinz Company also is one of the world’s 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 Heinz’s products enjoy first or second place by market share about 50 countries
but it still lower than Campbell Soup Company.
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 Nestlé 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 Nestlé 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
29. (Colombo, Go-Gurt, and Yoplait).13 Besides, the development of technology causes its strong online
27
presence in the market.14
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
to keep up with the changing of market.16
XII) EXTERNAL FACTOR EVALUATION MATRIX (EFE)
Opportunities Weight Rating Weighted Score
1
Expanding its international presence, particularly in the
demand of emerging markets
0.15 4 0.60
2
Developing relevant technological advances to improve
the quality of products
0.11 3 0.33
3
Motivating the contribution of consumer about
Campbell’s products.
0.08 2 0.16
4
Studying to find out other various products in order to
meet the preference of customer
0.13 3 0.39
5
Expanding its healthy beverages and baked snacks
brands as well as social responsibility.
0.13 3 0.39
Threats Weight Rating Weighted Score
1
Marketing and advertise costs is high that influence to
price of products.
0.11 2 0.22
2 Many competitors in the soup market. 0.15 4 0.60
3
The demand and preference of consumers is very hard
to predict
0.14 3 0.42
TOTALS 1.0 3.11
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
30. 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
28
opportunities and to overcome threats.
Rational
Opportunities:
Expanding its international presence, particularly in the demand of emerging markets:
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
potential sustained demand for Campbell's products.17
Developing relevant technological advances to improve the quality of products.
Campbell improves production lines to maximize company profitability and
competitiveness significantly.18
Motivating the contribution of consumer about Campbell’s products.
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
31. Because of fierce competitive environment, so we are always receptive to customer
feedback. Thereby, it helps us to stand firm in the market.19
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
29
the need of customers.20
Expanding its healthy beverages and baked snacks brands as well as social responsibility.
Campbell is not only creating better goods for customer’s heath, but also contributing a
major role for the community to continue to maintain a good image to customers.21
Threats
Marketing and advertise costs is high that influence to price of products.
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 Soup’s 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
32. on the company to decrease costs by cutting personnel, investments in manufacturing,
research, development and marketing of their products.22
30
Many competitors in the soup market.
High-Rivalry among Campbell’s competitors is high and includes very large
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
compete both on price and product variety.23
The demand and preference of consumers is very hard to predict.
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
feedback. . When presented with product-specific attitude feedback, predictors adapted
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
familiar target stop redirect their product attitudes24
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-market ing-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
33. XIII) INTERNAL FACTOR EVALUATION MATRIX (IFE)
Strengths Weight Rating Weighted Score
31
1
Focus on the powerful brands in three main categories:
Soup & Simple Meals, Snacks and Healthy Beverages
0.05 3 0.15
2
A leading food producer in the U.S had a presence in
approximately 85%.
0.07 4 0.28
3
Campbell’s products are sold in 120 countries around
the globe
0.06 4 0.24
4 Stable capital with strong balance sheet and net income. 0.10 4 0.40
5
Innovate and cultivate the quality of product and service
that is relevant to community health such as salt-reduction
push was one of the company’s biggest
initiatives of the past decade.
0.12 3 0.36
6
Creating a good image in consumer’s mind by their
product commitment to community health to help
combat childhood obesity and high blood pressure in
America
0.13 4 0.52
7
Strong social responsibility into protect environment
activities or community organizations.
0.11 3 0.33
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
34. Weaknesses Weight Rating Weighted Score
32
1
Less products content low sodium and sugar that
influence to healthy image.
0.03 2 0.06
2
Gross margins were impacted by economic crisis before
2011.
0.03 2 0.06
3 Highly competitive soup market 0.09 1 0.09
4
Beverages and snack brands isn’t popular so sales is
mostly affected by soup brands.
0.09 1 0.09
5
The leadership and strategies may not achieve the best
effectiveness.
0.12 1 0.12
TOTALS 1.00 2.7
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
Campbell Soup Company’s internal position is better.
Rational
Strengths:
Focus on the powerful brands in three main categories: Soup & Simple Meals, Snacks
and Healthy Beverages.
35. 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
33
trended.25
A leading food producer in the U.S had a presence in approximately 85%.
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
Campbell’s products are sold in 120 countries around the globe.
Diversification of products help customers more options and to attract more new
customers. Reforms that help catch market changes and develop business flexibly.27
Stable capital with strong balance sheet and net income.
Although the economy is more volatile due to the financial situation which is unstable,
Campbell still maintain good profits and other expenses.28
Innovate and cultivate the quality of product and service that is relevant to community
health such as salt- reduction push was one of the company’s 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/
36. Creating a good image in consumer’s mind by their product commitment to community
health to help combat childhood obesity and high blood pressure in America.30
Strong social responsibility into protect environment activities or community
34
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
Gross margins were impacted by economic crisis before 2011.
Highly competitive soup market
The adjustment prices of competitors cause the confusion for the consumer in selection of
Campbell’s product.
Beverages and snack brands isn’t 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 AMERICA’S 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 AMERICA’S 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
37. Campbell Soup Company should concentrate on beverage and snack brand more to
improve the sales as well as its reputation.
The leadership and strategies may not achieve the best effectiveness.
Giving specific strategies and training employees to help company overcome the difficult
35
problems.
XIV) SPACE MATRIX
Internal Strategic Position External Strategic Position
Financial Strength (FS): 1 to 6 Industry Strength (IS): 1 to 6
1 ROI33 5 Growth potential
1 Liquidity34 4 Profit potential35
4 Working Capital 2 Financial stability
6 Cash Flow 5 Technological know-how
5 Resource utilization
2 Ease of entry into market
4 Productivity, capacity utilization
Average: 3 Average: 3.86
Total axis X core 2.53
Competitive Advantage (CA) -1 to -6 Environment Stability (ES) -1 to -6
-1 Market share -1 Technological changes
-1 Product quality -2 Demand variability
-2 Product life cycle -2 Price range of competing products
-2 Customer loyalty -1 Barriers to entry
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/
38. -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
is four-quadrant structure which specify whether aggressive, defensive competitive or
conservative strategies are most suitable for a given organization, company or business.
The significant factors in SPACE matrix assess that Campbell’s financial performance for
instance liquidity, cash flows, working capital and return on investment (ROI) have financial
36
strength for business activities.
Y
4
(2.53; 1.67)
AGGRESSIVCONSERVATIVE E
3
2
1
4
3
2
1
X
DEFENSIVE COMTETITIVE
39. Campbell Soup Company’s 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
strengths to surmount weaknesses, obtain the advantage of opportunities in order to avoid
37
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
horizontal integration, conglomerate and horizontal diversification or a mix of strategies.
XV) GRAND MATRIX
40. 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
strong growth market, so it belongs to Quadrant II.as well as STARS in BCG.
THE BOSTON CONSULTING GROUP (BCG) PORTFOLIO MATRIX
High
Stars
Question Marks
Cash Cows Dogs
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 Campbell’s condensed and packaged soups; Swanson broth and canned poultry; Prego pasta
sauce; Pace Mexican sauce; Campbell’s Chunky chili; Campbell’s canned pasta, gravies, and
38
48%
26%
18.5%
7.5%
Market growth
Rate
Low
Relative High Market share Low
41. beans; Campbell’s Supper Bakes meal kits; V8 juice and juice drinks as well as Campbell’s
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 Arnott’s 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 Campbell’s and Royco soups in Belgium, and Bla Band soups
and sauces in Sweden. In Asia Pacific, the company markets its Campbell’s soup and stock,
Swanson broths and V8 beverages. In Canada, operations include Habitant and Campbell’s
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)
39
42. 40
37
Some strategies which is recommended:
Market development: spreading the power and perceived about Campbell’s 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
comic or reducing a product price to motivate demands.
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
43. 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
41
customers about Campbell’ s brand.
Product Development: innovating the quality and flavor of products.
Forward integration: purchasing the companies which are going to bankrupt and then investing
to expand the scale of company.
Backward integration: purchasing of suppliers to cut transportation costs, improve profit
margins and make the firm more competitive.
Horizontal integration: exchanging and cooperating with competitor to create outstanding
products.
Related diversification: diversifying products by growing new brands such as porridge can and
instant noodles.
44. 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.
CAMPBELL SOUP COMPANY
42
Key Internal Factor
Weight
Market Penetration Market Development
Product
Development
OPPORTUNITIES AS TAS AS TAS AS TAS
Expanding its international presence,
particularly in emerging markets
0.15 2 0.30 3 0.45 2 0.30
Developing relevant technological
advances to improve the quality of
products
0.11 2 0.22 1 0.11 2 0.22
Motivating the contribution of
consumer about Campbell’s products
0.08 4 0.32 3 0.24 4 0.32
Studying to find out other various
products in order to meet the preference
of customer
0.13 4 0.52 4 0.52 3 0.39
Expanding its healthy beverages and
baked snacks brands.
0.13 3 0.39 2 0.26 3 0.39
THREATS
Marketing and advertise costs is high
that influence to price of products.
0.15 3 0.45 4 0.60 1 0.15
Many competitors in the soup market. 0.11 3 0.33 2 0.22 3 0.33
The demand and preference of
0.08 3 0.24 4 0.32 3 0.24
consumers are very hard to predict
TOTAL 1.00 2.77 2.72 2.34
STRENGTHS
Focus on the powerful brands in three 0.05 1 0.05 3 0.15 3 0.15
45. 43
main categories: Soup & Simple Meals,
Snacks and Healthy Beverages
A leading food producer in the U.S had
a presence in approximately 85%.
0.07 2 0.14 4 0.28 1 0.07
Campbell’s products are sold in 120
countries around the global
0.06 1 0.06 3 0.18 1 0.06
Stable capital with strong balance sheet
and net income
0.10 3 0.30 4 0.40 2 0.20
Innovate and cultivate the quality of
product and service that is relevant to
community health such as salt-reduction
push was one of the
company’s biggest initiatives of the
past decade
0.12 3 0.36 4 0.48 4 0.48
Strong social responsibility into protect
environment activities or community
organizations
0.11 4 0.44 4 0.44 1 0.11
Creating a good image in consumer’s
mind by their product commitment to
community health to help combat
childhood obesity and high blood
pressure in America
0.13 4 0.52 4 0.52 1 0.13
WEAKNESSES
Less products content low sodium and
sugar that influence to healthy image
0.03 3 0.09 2 0.06 4 0.12
Gross margins were impacted by
economic crisis before 2011
0.03 1 0.03 1 0.03 1 0.03
Highly competitive soup market 0.09 4 0.36 4 0.36 3 0.27
46. Beverages and snack brands isn’t
popular so sales is mostly affected by
soup brands.
0.09 3 0.27 1 0.09 4 0.36
The leadership and strategies may not
achieve the best effectiveness.
0.12 2 0.24 4 0.48 1 0.12
TOTAL 1.00 2.86 3.47 1.99
SUM TOTAL ATRACTTIVENES
SCORE
5.63
<
6.19
>
4.33
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
Company, we propose 3 most necessary strategies, included market development, market
penetration and product development in this time in order to overcome a slowdown profit
44
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 Researching the cultural, demand and preference of market.
o Choosing the suitable products and flavor to meet customer satisfaction for each region
47. o Consider the form of advertising such as SNS, Television, and Magazine…
45
o Adjusting the price of products.
o Design advertisements, events and promotions to attract the customer’s attention:
Design an event to attract customers come to and savor various products
Set the happy days to increase purchasing capacity. These happy days are Monday or
Wednesday because less consumers go to supermarket on these days.
Making competitive event to gain the prize on SNS by appealing customers to take the
picture with packages.
Sponsoring social activities to create the good image in new customers.
Emphasizing the strength of reputation and the differences of products in advertising to
make the consumer’s trust.
o Improving customers care, building the close relationship with customer and encouraging
the consumer’s feedback.
After the implementation of the strategy:
Collecting feedbacks and reassess the strategies, we will continue if it is successful.
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
evaluate each element in SWOT Analysis.
48. 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
46
permanently.
XVII) RECOMMENDATION
Long- term strategy
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
stable financial situation in incomes and expenses.
Specific strategy:
International presence (from 1 years 3 months to 1 years 6 months)
Having plans to open at least 1 factory at Vietnam, Thailand and Czech Republic.
Setting up marketing campaign suitable for each country.
Developing new products for each country.
Hiring CEO or board of directors who are local people.
Making event for opening to attract consumer’s attention.
Stable financial situation in incomes and expenses (annual):
Reducing labor in necessary.
Selecting prestige local suppliers to reduce the material costs.
Inviting customers to join in advertising to reduce costs and built the trust.
Set the happy hours to increase purchasing capacity.
49. Training employees and improving customer service relentlessly to attract customers so
that employees work in a standard “the customer is always right”.
47
XVIII) TIMETABLE
St rategies Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun …
International presence strategy
Building factories (research
posit ion, hiring or buy
land…)
Hiring CEO or board of
directors
Developing new products
(research culture and flavor )
Set t ing up marketing
campaign
Making event for opening
Stable financial situation in incomes and expenses strategy
Select ing prest ige local
suppliers
Invit ing customers to join in
advert ising
Set the happy hours
Training employees and
improving customer service