Group Number 3 Ankita Daruka Sera Arora Due Date: 11th October2011 Date Submitted: 11th October 2011

SUMMARY
Campbell Soup Company is the third largest manufacturer of cans which promotes canned soups and controls 80% of the canned soup market. Private label brands manufactured by H.J. Heinz Co. control the rest. Campbell executives decided to phase out the tin soup can and this decision reflects an emphasis for providing customer satisfaction by knowing consumer needs and preferences. The change from can to a container would require high investment and could cost 100 million or more. Campbell is also interested in exploring new market segments for the people who have shunned can soup, particularly convenienceminded singles. Packaging objectives of protection, economy, sales and convenience are important to Campbell as all these bear special concern. The consumer must use a can opener as plastic is now impervious to air scan of soup seems inconvenient. Also a plastic microwavable bowl capped by an easy open top in San Francisco has fared well with the consumers. Another possible successor to the metal soup can is a plastic container shaped just like a metal can.

1. As a convenience goods producer, what marketing consideration do Campbell executives have to keep in mind?

 As a convenience goods producer Campbell executives should

take care of consumer behavior. In order to produce any good Campbell must know the consumer needs and preferences, what exactly consumer wants, should emphasize on customer satisfaction by knowing and meeting consumer preferences so that they can be satisfied to the maximum. They must take care that they do not change the consumers routine and also manage to grab the attention of the consumers. Campbell executives should research about the types of people that would be interested in their products. They should also keep in mind the different criteria like packaging objectives of protection, social concern, economy, sales and convenience as they are important to Campbell Co. and they also bear special concern.

2. Do you think Campbell should market soup in a new container under a different brand name?

 No, I dont think Campbell should market soup in a new

container under a different brand name. Campbell is actually known for selling soup in cans but as we know that consumer needs keep on changing, it should not phase out the can completely. Also, using a different brand name for the same product would spoil the brand image of the company. A different brand name would mean that the company will take some time to introduce the new brand and distribute among the consumers but this could take a lot of time for the company to make place in the mind of the consumers.

3. What factors should Campbell have considered in the decision to change to a new package?

 In order to make the decision to change to a new package Campbell

should have considered the changing environment as well as changing consumer preferences. Campbell should have kept track of the changes or else their decision would not yield the desired result. Today, the consumer is the centre piece of marketing. Consumers are being choosier due to increase the available options and in their purchasing power. So Campbell should know the consumers needs and requirements in order to satisfy them to the fullest. They should know the number and types of people interested in their products, what is convenient to them and also try to attract more consumers towards their product. Revamping production facilities could cost $100 million or more. So the company should be sure whether the change is really necessary or not. Campbell should also take in to account the technology and the profit margins and the market segments that are to be targeted. In todays time consumer satisfaction is much more important than any other thing as consumers are the centre of a marketers universe.

4. Establish a list of criteria for Campbell to use in deciding on what package to use?

 Campbell executives have decided to phase out the tin soup can as

this isnt as user friendly as it used to be before. Campbell soup is not just the physical item, but also inclusive of the package, brand and label. Campbells decision to develop a new package reflects an emphasis for providing customer satisfaction by knowing and meeting consumer preferences. Packaging objectives of protection, societal concerns, economy, sales and convenience are very important. Many consumers associated cans with preservatives and artificial ingredients. The consumer had to use a can opener, mix the condensed soup with water, heat the mixture and then clean several utensils. However, plastic as an alternative is as efficient. It is nearly unaffected by air. Also, a plastic microwavable bowl has fared well with consumer in San Francisco test market and Aseptic packages also present a number of advantages over cans and possibly will dominate the market in the future. Another possible successor to the metal soup can is a plastic container shaped just like a metal can.

5. Do you see the decision confronting Campbell management as one that may confront many firms in India? Identify a real world brand in Indian context that faced similar choices and discuss the decisions it made- and if the same satisfied the company and the consumer.

 The decisions confronting Campbell management are similar to

many firms in the Indian context. Campbell was concerned about the needs of the people and what is more convenient to them, as convenience bears special concern. Campbells has put more emphasis on providing customer satisfaction by meeting their preferences and also an effort into not changing consumers routine for buying soup. In the late 1970s Chik Velvette was launched in South India, the most innovative decision taken by the Company management was to offer the product in sachets rather than bottles. Sachets offered the consumers unprecedented convenience, it also revolutionized the Shampoo Industry in India as with the introduction of sachets

CHIK SHAMPOO SACHETS

Consumers

start demanding the product

Chik was able to compete with MNCs and soon became the largest selling Shampoo brand in South India. These unprecedented sales forced all other shampoo brands to make the same changes, to incorporate similar packaging. Thus, a lot of similarity can be seen between the issues faced by Campbell Soup Co. and Chik Shampoo. Also the results indicate that the decision taken by executives at Velvette were quite beneficial in respect to consumer satisfaction as well as by the consumer.

RELATIONSHIP TO CONCEPT
Campbell Soup Company is the nations third largest manufacturer of cans.

They decided to phase out the tin soup can as it isnt as user friendly as it was. In order to develop a new package they have kept consumer needs and preferences in their mind so that the consumers can be fully satisfied and also dont want to do anything to change consumers routine for buying soup. Campbell is also interested in attracting new market segments. Campbell has also taken care about the convenience of the consumers as convenience bears special concern. Many young consumers associated cans with preservatives and artificial ingredients. A leading contender of possible containers: a plastic microwavable bowl capped by an easy open lid, has fared well with the consumers in a San Francisco test market. Campbells executives have taken care of the changing environment as well as changing consumers because without knowing the consumer needs and preferences, no business can survive and cannot achieve their ultimate goals without fulfilling consumers satisfaction.