CAMPBELL SOUP COMPANY

Strategic Management

CLASS 1 – GROUP 6

• Nguyễn Thị Phương Hà - 295901

• Phạm Thùy An – 295913

• Phan Tuấn Vũ - 295919

CONTENT

ADVERTISING

INTRODUCTION: mission, vision, history and product lines.

CURRENT ACTIVITIES:

• Strategy

• Operational structure

• Finance

• Competition

• E-Commerce

STRATEGY ANALYSIS & RECOMMENDATION

ADVERTISING

https://www.youtube.com/watch?v=O8Dxlw0s9UI&hd=1

PART 1: Introduction

• Campbell was founded in 1869, they open

their first plant in Camden, New Jersey.

• Campbell Soup Company is a global

manufacturer and marketer of high-quality

foods and simple meals, including soups

and sauces, snacks, and healthy beverages.

• Their products are sold in more than 100

countries in regions North America, Latin

America, Asia Pacific, Europe, Middle East

and Africa.

MISSION

• To nourish people’s lives by offering a wide variety of convenient, delicious, and affordable food choices that can help everyone enjoy a balanced, healthful diet.

• The foundation of Campbell’s culture is three core values:

Character

Competence

Teamwork

Vision

Building a focused global food company with superior consumer

brand value, and to deliver sustainable, profitable net sales growth.

Product lines

Campbell have Soup Collections which is the flexible,

convenient and consistent soup.

Campbell promoted their business in food service and

launched beverage brands such as V8 series. Campbell has

over 20 beverage kinds that provide a full serving of

vegetable, and over 60 that provide a good source of vitamins.

Pepperidge Farm delivers the iconic brands patrons know and love.

From delicious cookies, crackers and baked pastries to Goldfish bread

and snacks, Pepperidge Farm brands are available in the varieties and

formats you need to drive your business

PART 2: CURRENT ACTIVITIES

Strategies

operational structure

CEO: Denise Morrison

finance

Period Ending Jul 28, 2013 Jul 29, 2012 Jul 31, 2011

Total Revenue 8,052,000 7,175,000 7,143,000

Net Income 458,000 774,000 805,000

Short- term solvency or liquidity,

ratios.

Current ratio 0.676 0. 855 -

Quick ratio 0.394 0.510 -

Cash ratio 0.101 0.161 -

Long- term solvency or financial

leverage, ratios.

Total debt ratio 0.853 0.862 -

Debt - equity ratio 5.83 6.27 -

Equity multiplier 6.78 7.27 -

Times interest earned ratio 8.07 10.20 -

Cash coverage ratio 11.08 12.5 -

Profitable ratios

Profit margin 0.05 0.10 -

Return on assets (ROA) 0.05 0.11 -

Return on equity (ROE) 0.37 0.86 -

Competitors

Nestle was well- known brand name over the world, it has famous brands, it became a

major player in the U.S baby food sector after adding Gerber baby foods to its baby

principle business.

The newly independent company spun off by Mondelez

International (formerly Kraft Foods Inc.). Kraft Food Group was

looking to revive its trade in North American.

General Mills was the second cereal maker in U.S and its brand involved

Cheerios, Chex, Total, Kix, and Wheaties. It was trying to raise the reach

and the point of its brands around the world.

H. J. Heinz had thousands of products and it spread over than 50 countries.

It manufactured ketchup, condiments, sauces, frozen food, beans, pasta

meals, infant foods and the processed food products.

company’s competitive advantage

Its competitive advantage lies in three elements:

Strong brand recognition

Large efficient distribution network

Quick responsiveness to shift in consumer preferences and

competitive environment

E-Commerce

Understanding the wealth of information on markets and partners.

Reducing production, sales and marketing costs.

Time-saving and reducing transaction costs for customers and company

Making conditions to establish and strengthen relationships among the components

involved in the trade process.

Facilitate early access digitized economy

PART 3: strategy analysis

problem

Campbell Soup Company have strong competitive

position in packaged food industry.

Package foods market becomes saturated in recent

years

The total revenue is rather stable and a little bit

increase, however, its net profit is decrease

dramatically from 2011 to 2013

SWOT ANALYSIS

• STRENGTHS:

The powerful brands.

A leading food producer in the U.S.

Selling in 120 countries around the globe.

Stable capital with strong balance sheet and net income.

Innovate and cultivate the quality of product and service.

Creating a good image in consumer’s mind.

Strong social responsibility.

SWOT ANALYSIS

• Weaknesses:

Less products content low sodium and sugar

Gross margins were impacted by economic crisis

Highly competitive soup market

Beverages and snack brands isn’t popular

The leadership and strategies may not achieve the best

effectiveness

SWOT ANALYSIS

•OPPORTUNITIES:

Expanding its international presence

Developing relevant technological advances

Motivating the contribution of consumer

Studying to find out other various products

Expanding its healthy beverages and baked

snacks brands.

SWOT ANALYSIS

• Threats:

Marketing and advertise costs

Many competitors in the soup market.

The demand and preference of consumers

PRODUCT LIFE CYCLE

CPM – COMPETITIVE PROFILE MATRIX

Nestle General Mills Kraft Foods Heinz Company

Total 3,33 2.19 1,84 3,47

As a result, the strongest performer in the market should be Heinz Company (3.47

point), and the next competition is Nestle with 3, 33 point. In addition, the weakest

company is Kraft Food (1, 84 point). Specifically, they have a strong position for a long

time and suppose strategies efficiently as well as implement smoothly. Thus, they also

create an extremely competitive market and risks to Campbell Soup Company

EXTERNAL FACTOR EVALUATION MATRIX (EFE)

Opportunities + Threats Weight Rating Weighted Score

TOTALS 1 3.11

The average weighted score for EFE matrix is 3.11 Campbell soup company. The

company total weighted score higher than 2.5 is consider as strong in position. As the

results shows that Campbell soup Company is responding above average to the

environment for exploiting opportunities and to overcome threats

INTERNAL FACTOR EVALUATION MATRIX (IFE)

Strengths + Weaknesses Weight Rating Weighted Score

TOTALS 1.00 2.7

The average weighted score for IFE matrix is 2.7 Campbell soup company. The company

total weighted score higher than 2.5 is consider as strong in position. As the results

shows that Campbell Soup Company’s internal position is better.

SPACE MATRIX

AGGRESSIVECONSERVATIVE

DEFENSIVE COMTETITIVE

4

3

2

1

4321 X

Y

(2.53; 1.67)

GRAND MATRIX

THE BOSTON CONSULTING GROUP (BCG)

48%26%

18.5%

7.5%

Market growth

Rate

High

Low

Relative Market share LowHigh

Stars

Cash Cows Dogs

Question Marks

QUANTITIVE STRATEGIC PLANNING MATRIX (QSPM)

Weigh Market

Penetration

Market

Development

Product

Development

OPPORTUNITIES + THREATS 1.00 2.77 2.72 2.34

STRENGTHS

+ WEAKNESSES

1.00 2.86 3.47 1.99

SUM TOTAL ATRACTTIVENES

SCORE5.63 < 6.19 > 4.33

RECOMMENDATION

• Long- term strategy:

Due to current statuses of company and market and the matrix

tables, Campbell Soup Company should consolidate and direct to

the new potential markets such as: international presence and

stable financial situation in incomes and expenses.

RECOMMENDATION

Specific strategy:

International presence (from 1 years 3 months to 1 years 6 months):

• Having plans to open at least 1 factory at Vietnam, Thailand and Czech

Republic.

• Setting up marketing campaign suitable for each country.

• Developing new products for each country.

• Hiring CEO or board of directors who are local people.

• Making event for opening to attract consumer’s attention

RECOMMENDATION

Stable financial situation in incomes and expenses (annual):

• Reducing labor in necessary.

• Selecting prestige local suppliers to reduce the material costs.

• Inviting customers to join in advertising to reduce costs and built the

trust.

• Set the happy hours to increase purchasing capacity.

TIMETABLE

Strategies Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun …

International presence strategy

Building factories (research

position, hiring or buy land…)

Hiring CEO or board of

directors

Developing new products

(research culture and flavor )

Setting up marketing

campaign

Making event for opening

Stable financial situation in incomes and expenses strategy

Selecting prestige local

suppliers

Inviting customers to join in

advertising

Set the happy hours

Training employees and

improving customer service