Marketing Plan Campbell Soup Essay
Campbell Soup Marketing Plan
Implementing a new product (chicken nuggets W/veggies) to the existing company of Campbell Soup. Keeping nutrition, the health, well-being, and good eating habits of children in mind. I Situation Analysis The situation being addressed in this plan is the lack of nutritional chicken nuggets that are aimed at the audience of children that consume them, more so than adults. Some sellers of nuggets choose to make theirs with dangerous, hazardous chemicals, while others although nutritional, are not incorporated with vegetables or organic vegetables.
Most consumers, are unaware of many of the dangerous and harmful chemicals of which our children are consuming by eating some businesses chicken nuggets.. Market Summary Campbell soup is the largest soup maker in the world. In the United States alone, it maintains nearly a 70 percent market share, and it holds market-leading shares in Canada, Germany, Australia and France (Vaults Scoop, 2010). Campbell is a very profitable company with an operating margin that exceeds its industry average.
During the last twelve months its total sales were $736. 00 million, which is a very acceptable gross margin, 9. 08 percent of total sales (CUPS, Food Major Diversified, 2013). The company’s sales growth has come from either acquisitions or new line extensions, not from the organic growth of its existing products . The acquiring of Pilothouse Farms contributed to 8 percent of the company’s sales growth, while the organic sales growth of 1 percent was unfavorable offset by foreign exchange rate.
This was not a good growth strategy for Campbell and so their other initiatives would need to play out for the company to see continued growth in the future (Divan Capital, 2013). As the consumer trend grows more towards healthier products, Campbell Soup has saw fit to oblige consumer requests. Due to consumer request over the past years, the reduction of sodium and MS in all of its soups, IV and in the Healthy Request product line has been an ongoing process.
Throughout the many years of the company growth, Campbell Soup Company has manufactured and marketed foods and simple meals, including soups and sauces, baked snacks, and healthy. Single or married, raising a family or not all of Campbell products can be purchased with one goal in mind, health and nutrition. The pricing of Campbell pop may be a little steep for some consumers, but after realizing the price is worth the taste, nutrition and health, the pricing doesn’t matter for the smart nutritional conscious consumer.
The production of Campbell Chicken Nuggets w/veggies will be focused on a younger generation that eat nuggets and need the nutrition, (organic and healthy) and the vitamin intake needed for their daily diet. Consumers are more health conscious today, and economically smart as to spending SWOT Analysts Marketing Plan By misguides that affect a company’s growth or existence.. Here are some of Campbell Soup Company’s SWOT analyses, which they have weathered through and still are able to maintain a stable, growing and marketable business for more than 140 years.
Strong brand equity
Leading position in core category
Diversified geographic operations
Reducing debt burden
Robust financial performance
Re-focusing on core operations through divestment of some business units
Revenues concentrated heavily on Wall-Mart (close to 15% of sales)
Revenues heavily concentrated in the US (around 70% of total revenue)
Emerging markets expansion
Higher demand for organic products Continued product innovation
US economic slowdown shifting consumer habits from restaurants to retail food stores
Private label growth ; customer acceptance
Increasing commodity costs
Associated with sexual pop culture humor, might affect business
The company experiences worldwide competition in all of its principal products.
This competition arises from numerous competitors of varying sizes, including producers of generic and private label products, as well as from manufacturers of other branded food products, which compete for trade merchandising support and consumer dollars. As such, the number of competitors cannot be reliably estimated. The principal areas of competition are brand recognition, quality, price, advertising, promotion, convenience and service. (Disinvest, Cot. 1, 2008) If Campbell make the well needed decision to segment its market of making chicken nuggets (which this market plan will be proposing to them), and nuggets incorporated with veggies, its two biggest competitors in the nugget business would be Tyson and McDonald’s. Although neither company has yet to have processed nuggets with veggies, I’m sure if Campbell start the ball rolling, they will soon follow.
There are other companies that have nuggets with veggies, but they are no competitors of Campbell soup, due to the fact that Campbell in not in the nugget making business. Therefore, if besides McDonald’s and Tyson. I chose Tyson because of the natural quality of ingredients incorporated in the making of their nuggets, and I chose McDonald’s because of they are the worst makers and sellers of nuggets that I have recently discovered. Tyson Tyson Foods, Inc. (NYSE: TTS), founded in 1935 with headquarters in Springtail, Arkansas, is one of the world’s largest processors and marketers of chicken, beef and ark, as well as prepared foods (Tyson Foods, 2012). The company provides products and services to customers throughout the United States and more than 90 countries.
Tyson employs 115,000 Team Members at more than 400 facilities and offices in the U. S. And around the world. (Tyson Foods Inc. , 2012) According to the ingredient lists of Tyson, they use all natural ingredients in the making of their nuggets, which possess no chemicals, but are not incorporated with any veggies. Tyson is engaged in the production and distribution of chicken, beef, pork, prepared foods and related allied products. Tyson instills great emphasis on its mission statement which entails on marketing and producing high quality foods that adapt and fit to consumer lifestyles, and being a premier protein provider, while involving the industry best professionals.
McDonald’s McDonald’s was opened in the sass’s, by two brothers, Dick and Mac McDonald, originally as a bar-b-q restaurant, in San Bernardino, California. In pursing for new sales and customers, I would suggest that McDonald’s reconsider how it makes and sales it chicken Nuggets. I suggest that in all honesty it should allow the public to now pertinent information that is beneficial to young children and many adults that love the taste and pricing of it Nuggets.
McDonald’s Chicken Nuggets Ingredients: McDonald’s nuggets ingredients consist of white boneless chicken, water, food starch-modified, salt, seasoning [tautology yeast extract, salt, wheat starch, natural flavoring (botanical source), safflower oil, dextrose, citric acid], sodium phosphates, natural flavor (botanical source).
Battered and breaded with: water, enriched flour (bleached wheat flour, niacin, reduced iron, thiamin monitored, riboflavin, folic acid), yellow corn flour, bleached wheat flour, food starch-modified, salt, leavening (baking soda, sodium acid pyrophosphate, sodium aluminum phosphate, monomaniacal phosphate, calcium lactate), spices, wheat starch, dextrose, corn starch. These nuggets are then prepared in vegetable oil (Canola oil, corn oil, soybean oil, hydrogenated soybean oil). While using many ingredients that are not harmful and nutritious, McDonald’s also uses many chemicals that are harmful to us all such as: TPTB (tertiary butyl hydrogenous), which is a form of lighter fluid which the FDA allows food processors to use sparingly in foods. TPTB is considered to be its most alarming chemical as being derived from petroleum, and is sprayed directly on the nugget or inside the box “to help preserve freshness”.
TPTB can cause “nausea, vomiting, ringing in the ears, delirium, a sense of suffocation, and collapse. Another harmful chemical to the consumers of anti-foaming agent. Denationalization is a polymer composed of alternating silicon and oxygen atoms and having two methyl groups attached to it ranging from oils to plastics (Dictionary. Mom, 2013). Product (Service) Offering The product, of which I will be attempting to introduce to Campbell Soup Company, which is a well-known family brand business, is chicken nuggets w/veggies.
My purpose of introducing my product to this particular company is because it is well-known for its health and nutritional values. For over 140 years Campbell has made itself known throughout the world for these values. The nuggets w/veggies will offer a different variety and value to their already growing market. Others than soups, Campbell offer other name brand products including snacks, pastries, meals and juices. I would like for my product to become one of Campbell well-known nutritional and healthy products. Keys to Success In becoming the world’s most successful soup marketing industry, Campbell has three main and new keys to success. Winning in the community – mentoring to other consumers and producing soups that are specified for women consumers, who make up about 80 percent of the buying power of Campbell products
Winning in the marketplace – By incorporating world-class employee engagement for women and men
Winning in the workplace
Better connecting with female consumers, by allowing them to become intricate performers within the company and its market Accomplishing these keys to success sets Campbell goals of diversifying the workplace with more women, and giving them better, innovative careers. This allows them to become leaders and coaches, and make decisions as company Coos and company presidents globally. Their ideas for the community and the marketplace are very welcomed, as they are Campbell biggest consumers (The Inclusion Paradox, April 21, 2010) Campbell Soup Company is the world’s leading soup maker and a global manufacturer of high quality, branded foods. Their $8 billion portfolio is focused on three core areas for success
- Simple meals
- Baked snacks
- Healthy beverages
Campbell and well as any other organization, business, or manufacturing industry deals with many critical issues.
Campbell have Health Research and Advocacy Bodies
- Nutrition and labeling standards
- Clinical research
- Industry partnerships
- Wellness strategies
- Impacts on policy changes Communities and No’s (Spell out MONGO)
- Critical local needs – hunger, obesity, youth, support services in our communication
- Strategic partnership priorities: Heart health, obesity, sustainable agriculture, diversity
- Volunteerism and giving Governments, Policy Makers
- Regional priorities
- Trade policy implications
- Health, wellness and nutrition policy
With the success of Campbell marketing strategies, its increasing nutritional values, and health conscious commitments to its consumers, Campbell has become one of the leading Fortune 500 Companies. Campbell is continuously inventing ideas and ways for self-improvement. The introduction of the Nuggets W/ Veggies would help them to become much more popular in the eye of the consumers, children and parents. Although they have been in business for more than 140 years, I believe they still have many more to go.
Marketing Strategy The marketing strategies that I would introduce to the Campbell Soup Company in regards to implementing Chicken Nuggets w/veggies to their product line, would be carried out by counterclaiming the new product on public television during children’s cartoon and educational programs. I would also attempt to involve First Lady, Michelle Obama in helping to push the product because is helping in fighting obesity in today’s children and for the nutritional value of children’s foods and school lunch programs. PBS channels, which are mostly government funded, would be notified and asked for their participation in ways of introducing the product to many parents and young children, geographically. Campbell would really have no issue in targeting it’s intended audience, but the more the product is introduced to the children, hopefully the more the children and parents would want to purchase it.
I chose these strategies and forms of advertisements because they would make the target audience more aware of the necessity of nutritional values in children foods and insure them of becoming more aware of better and nutritional eating habits. I would like for my product to become the consumer’s choice for children of all ages, as well as being profitable for the company. Campbell Chicken nuggets w/veggies will be the resource of nutrition, value and taste in many homes and stores. Mission Campbell mission state is: To build the world’s most extraordinary food company by nourishing people’s lives everywhere, every day (Anonymous, 2013 par. 1).
Marketing Objectives With Campbell being a successful, innovative, and global company, my marketing objectives for this product are to:
- Obtain an estimated gross margin of at least 5% each month for the company
- Generate an additional average sales of $500,000 each day
- Increase in quarterly sales $1,000,000
- Realize an annual growth rate of approximately 35% by the year 2014
Growth percentage by market segment
- A growth rate of 35% by 2014, approximately $5,000,000 in total revenues
- Per day average of approximately 14,000
My target market consisted of working parents, male and female, between the ages of 24-45, with small school age children between the ages of 6-14. These are meals at home and at school. Their incomes are modest incomes, less than $40,000 annually, so there are no finances to waste on restaurants or take-out meals. A lot of consideration is taken in shopping for these meals, as they sometimes venture outside of the living are (zip codes 46402-46407), in order to purchase a better quality of foods, yet sometimes more expensive.
As a result of the survey given, these parents were more likely to purchase the Campbell brand nuggets, in opposition of the competition, when they learned of the organic vegetables and the nutritional values instilled in this company’s brand. Positioning For the consumer that is health and nutritional conscientious and wishes to bring Hess values to its home, Campbell may be the best brand chicken nugget w/veggies for selection. The pricing will be competitive aimed, and packaged in a variety of sizes to meet the consumer’s family size need. In producing a more nutritional based nugget, the company has also taken into consideration the customer taste. For the consumers that have valued the Campbell quality and taste of their products for many years, the nuggets will be of no exception.
Unlike some competitive brands that give you a better price, or better taste and no nutritional value, with Campbell hickey nuggets, you will get the taste and nutrition at Just the right price. Strategies Campbell main objective is to produce a product which would capture the minds of the children or young, where nutrition is of the most importance, and of the minds of the parents who are the consumers of the product.
Campbell four main marketing strategies are:
1 . Company uniqueness
2. Competitive advantage
3. Adjusting to market conditions
4. Trends and changes.
Strategy #1 – Company uniqueness – Campbell is already unique, due to the fact that it has been in business for more than 140 years, and is a highly profitable equine in the food industry.
A company whose primary revenue is gained from the producing of soups, Campbell is now going out on the competitive edge of becoming one of the best producers of chicken nuggets. This product is unique because it will be:
- Made with vegetables
- Packaged in children’s TV character bags ( in order to draw the attention of the children)
- Focusing on the importance of healthy eating and fitness among the
- Using instrumental figures (ex. – Michelle Obama and her health programs young on obesity in children), and healthy weight conscious celebrities (ex. Jennifer Hudson), among others Strategy
#2 – Competitive advantage – One of the most important objectives of producing this product is to reach as many today’s youth as possible.
With a product that is focused on health and nutritional values of children of all ages, this product will have a greater competitive advantage by not only putting the product in the markets, but
- Introducing the product to the school lunch programs, globally
- Promoting the importance of nutrition for education
- Offer redeemable coupons with each package over a particular size package
Marketing Mix introduced to the company and has not yet been processed or developed, it does not have a marketing mix. The marketing mix being presented to you is one formed of its competitors, McDonald’s nuggets.
Product: McDonald’s chicken nuggets were introduced to the market with intent of capturing the audience of small children.
The nuggets come in the form of a “happy meal” as to draw the attention of children. The packaging is in small foldable boxes, decorated with different types of children TV cartoon characters or children’s storybook characters. There is also a free gift or toy with each purchase of the happy meal. The meals are a derivative of 4- 6 chicken nuggets.
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Promotion: McDonald’s promotion features are very noticeable. Every child and everybody know the big yellow “m” is affiliated with McDonald’s. Along with their memorable McDonald’s song, its commercials, sales upon, 2-for-2 deals, scratch games, and Ronald McDonald, McDonald’s has prospered due to the promoting and advertising of its products. These promotions and advertising strategies have captured the attention and taste buds of all ages. But the promotion of the “happy meal” w/chicken nuggets captured the small children of all ages. Price: The pricing determinants of the McDonald’s chicken nuggets are priced according to the customer’s perception of value.
Quality, brand, economics/ affordability, and integrity are all important factors in the determination of pricing of its nuggets and other products. Market research In conducting the market research for the new product of “chicken nuggets w/ veggies to be introduced and processed by the Campbell Soup Co. , I would first have to do research to find out if here are any other companies that have already produced this product and what geographical areas have marketed this product, if already produced. The research would need to be done locally and globally, to keep in touch with all other competitive that may have your idea in mind. I would need to do surveys in designated areas to know where the product would be more accepted and marketable.
These surveys would depend on the locations of economic values, consumer wants, needs and demands, preferences (qualitative and quantitative), not only for now but also for the future. The data collected from demographics and buying trends of consumer surveys would be an important impact on whether or not Campbell would consider the idea of producing the product. Also, in consideration of introducing this product to school lunch programs, it would be of great importance to include school age children and school administrators in the surveys, as well as all government officials involved. A qualitative research would need to be done as to consider the taste and texture of a new product.