Campbell Soup Case Analysis

Strategic Analysis of Campbell’s Soup Company

Introduction to the Organization

The Campbell’s Soup Company was founded in 1869, in Camden, New Jersey, USA by Joseph A. Campbell. It is globally recognized as a good quality, branded convenience food manufacturer and distributer. This company’s recognition and strength relies on three major business segments- Sauces and Soups, Confectionery and Crackers and Away from Home Meals. Joseph Campbell had originally introduced this company as a producer of canned soup, tomatoes, jellies, vegetables and meat.

In 1987, the company reluctantly hired Mr. Arthur Dorrance’s nephew Dr. John T. Dorrance trained in England. John had agreed to work for Campbell under the condition that he would buy his own laboratory equipment’s out of his pocket money and take a salary of $7.50 a week (CSC, 2009). Soon Dr. Dorrance made his mark in the history of this company by inventing condensed soup in 1897 by eliminating water from the canned products and dramatically lowering the production and operation cost of the industry. By the year 1922, his idea of condensed food product became so popular and in high demand that the company decided to adopt “Soup” as its middle name. By the year 1930, advertisements on radios had already started jingling its “M’m! M’m! Good!” jingle to captivate the consumers. In and around 1950’s Campbell’s TV commercials were introduced offering new products, food ideas and recipes (CSC, 2009). It is a privately held company. Globalization seems to have positive impacts on the company’s business as its sales have extended from domestic to global markets. It has also seen a significant increase in the volume of its sales over time. Campbell’s products include:

Campbell’s Products

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...decades. Utilizing this status of branding they have created over the past few centuries, they should expand further more into various product categories to grow further more interests of their customers and well-wishers.

• Diversification: Pursuing diversification on strategy to acquisitions concerning the purchasing, production, and marketing and distribution system.

• Focus: More focus on the expansion of the brand on international level

• Culture-Base Products: Introducing products based on various cultures and tastes

• Brand Transition: Executing brand transition nationally and internationally

• Economies of Scale: Obtaining strong economy of scale and sources for raw materials.

• Divestment: Divest slow business sectors to reduce debt and fund expansion

• Focus on Retail Distribution: Focus more on product distribution in the restaurants and cafes.