The Campbell Soup Company: effective positioning in an economic downturn

The Campbell Soup Company: effective positioning in an economic downturn

Introduction

This report on Campbell Soup forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the company is growing in in the economic downturn by focusing on the health trend, capitalizing on the rise in packed lunch occasions, and preparing to build its business in emerging markets.

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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Campbell's is performing strongly, despite the economic downturn 2
The company achieved strong sales growth in 2008 2
Heavily focused marketing helped Campbell's overcome the challenges of rising commodity costs and the increasing threat of private labels 3
Campbell's aims to become stronger by focusing on products with a healthy makeup 3
The company has divested its non-core unhealthy brands to focus on healthier products 3
The company has controversially attacked its rival General Mills in advertising, claiming that its Progresso soups have a higher MSG content than Campbell's own range 3
The company has invested in confirming the satiety properties of soup in order to promote it as an aid to weight management 5
Campbell's has extended its line of V8 juices into the soup category, while marketing the brand as a health aid for older consumers 5
Campbell's has further promoted its healthy positioning by supporting the MyPyramid scheme, which encourages healthy living 6
Lowering salt content has been a key focus for the company 7
Campbell's is following the US trend for low sodium foods with reformulated and newly launched products 8
The company has replaced conventional salt with sea salt in some of its soups, claiming that it is healthier 9
Campbell's aimed to attract consumers by gaining the Heart Foundation's symbol on its low sodium products 10
The company addressed the demand for healthier children's ranges by lowering the salt content of its kids' soups 10
Campbell's aims to increase the number of low salt products in 2009 11
Campbell's aims to capitalize on the rise in bring-your-own lunching through various initiatives 11
Consumers are increasingly making their own packed lunches in order to save money 11
The company's microwaveable and on the go soups are designed for busy workers 12
The company partnered with Kraft to promote the suitability of cheese on toast with soup as a lunchtime option 12
Campbell's aims to invest further in emerging markets in future 13
The company's US operations are strong, but face increased competition 13
Campbell's considers Russia and China to be chief regions for future growth 13
Expanding in emerging markets could be a wise investment, but funding may be too limited to make a proper impact in the current climate 14
APPENDIX 15
Case study series 15
Methodology 15
Secondary sources 15
Further reading 15
Ask the analyst 16
Datamonitor consulting 16
Disclaimer 16
List of Tables
Table 1: Campbell's produces a large variety of soups plus other foods 2
List of Figures
Figure 1: Campbell's and Progresso have attacked each other's soup content in recent adverts 4
Figure 2: The V8 brand has been extended into soup and fruit juice lines 6
Figure 3: The company's MyPyramid calculator aims to show consumers how its products can help them meet their dietary needs 7
Figure 4: Campbell's has reformulated and introduced a range of low salt soups 8
Figure 5: Low salt product launches in the US in 2008 encompassed a range of product types 9
Figure 6: Some Campbell's soups display the American Heart Association symbol 10
Figure 7: Campbell's has introduced a range of microwaveable soups 12