Marketing Management Discussion Questions

BSAD 260

Campbell’s Soup Discussion Questions

1. Examine the underlying logic concerning management’s decision to enter the health-food product market.

The Campbell’s soup company took several factors into consideration in making the decision to enter the health-food product market. The article mentions stalled soup sales, which had been the company’s major source of revenue. It explains that several competing food companies (specifically citing the successes of ConAgra’s Healthy Choice and the Heinz company’s Weight Watchers lines) entry into the healthy food market. The article explains that consumers were more attuned to the link between diet and health, and that the Campbell’s soup company wished to capitalize on a demographic “gold mine.,” seeking to cash in on the broad demographic associated with health issues such as diabetes and cardiovascular disease. The article additionally cites cardiovascular disease to be the nation’s “# 1 killer” affecting over 58 million individuals. Tapping into this broad demographic was seen as a means for Campbell’s CEO Johnson to make good on his duty to boost sagging earnings and soup sales. Clearly, Campbell’s soup found that there may be tremendous opportunity in innovation, as other food company’s were pursuing similar strategies in the food market, as such “nutriceutical” products were projected to see massive success with the aging baby boomer population.

2. Who were Campbell’s customers?

The customers of these new products consisted of individuals seeking to reduce their

cholesterol, blood pressure, and blood sugar. The article specifically referenced print ads placed in “Ladies Home Journal” magazine, perhaps indicating a intentional or unintentional targeting of the female demographic. Campbell’s soups IQ target customers also included physicians, dieticians and health professionals who had received significant attention during the marketing campaigns after 24 part-time pharmaceutical...