Marketing Strategy
1. Company Overview Founded in 1869, Campbell Soup Company is one of the leaders in manufacturing & marketing branded consumer food products with approximately 24,250 employees world wide, total revenues of 6.7 billion, 36 manufacturing plants in 10 nations, and over 2000 products on the market. Over the years, Campbell Soup Company has diversified into number of businesses - from frozen dinners to retail garden centers. However Soup has been its core business. Some major brands of Campbell Soup Co. include Flagship red-and-white canned soup, Prego Spaghetti sauces, Godiva Chocolates, Pepperidge Farm baked goods, V8, etc. In addition, since 1980, Campbell Soup Co. has undergone three different strategies under thee different CEOs who brought their own agenda in order to build value for the company and its shareholders. For example, under Gordon McGovern’s leadership (1980-1989), Campbell’s strategic focus was on developing and introducing new products and expansion of the business portfolio through acquisitions. Under David Johnson (1990 - 1997), The companies focus shifted to increasing sales growth, increase market share & share holder value through Eliminating unprofitable products & business units, focusing more on global
g, producing, and serving the same food products that the food processing companies were. For example, Dunkin' Donuts is in the foodservice industry and Campbell Soup Co. is in the food processing industry, yet Dunkin' Donuts serves soup and Campbell Soup sells soup. Consumers can go to Dunkin' Donuts and get the very same soups that Campbell sells. The bargaining power of suppliers was low due to the fact that there were many suppliers available for these companies to patronize. There was not just one supplier supplying to all companies. Buyers had much bargaining power because of their large number and the amount of the industry's output they purchased. Buyers determined the profitability of the industry. Food processing companies would be forced to lower prices if buyers felt that the prices were too expensive and stopped buying their products and switch to supplements easily. 4. Strategy Analysis & Evaluations When Gordon Morison was the CEO of Campbell Soup Co., He emphas! marketing and Improving communication and technology sharing between businesses. Under the third CEO, Dale Morrison (1997 - present), Campbell’s strategy focus continued to increase sales growth, increase market share & share holder value, but focus was shifted more towards profitable businesses with the highest growth potential and divestations of non strategic businesses 2. Problems / Strategic Issues Since 1980, Campbell’s corporate strategy and the company’s business structure have undergone three significant changes. Each strategy was implemented under the leadership of three different CEOs: 1. 1980 - 1989, Gordon Morrison: o Expansion through acquisitions and development of new products. 2. 1990 - 1997, David Johnson: o Increase sales growth, increase market share & share holder value. 3. 1997 - Present, Dale Morison: o Continue to increase sales growth, market share & share holder value. Campbell’s corporate strategy, under Gordon McGovern was expansion & development of new products to capitalize on consumer trends & improve operating efficiency. But this strategy turned out to be inefficient, as Campbell’s managers got too deeply involved in new-product development and neglected the performance of their existing products. In addition the expansion strategy led to unsuccessful diversification of Campbell’s business into industries that they had no expertise or competitive advantage. As a result, the company’s cost of production went up and profit was reduced. Under David Johnson, the company restructured the business line and implemented a new corporate strategy. The new strategy was to elimina
Some topics in this essay:
Overview Analysis,
David Johnson,
Johnson Campbell,
Soup Company,
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Campbell Soup,
Dunkin' Donuts,
David Johnson’s,
Gordon McGovern,
Dale Morrison,
campbell soup,
business units,
food processing,
market share,
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increase sales,
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food processing industry,
share share,
holder value,
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processing industry,
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share holder value,
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Approximate Word count = 1758
Approximate Pages = 7 (250 words per page double spaced)
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