It’s Amazing What Soup Can Do!


CAMPBELLCampbell’s Soup Co. is the leading maker and marketer of soup. But for two straight years, the soup business was struggling, alerting the stakeholders about the possibility of its fate to collapse. However, this past year, Campbell has featured its new skillet sauces line in hopes that it can expand out the dinner segment in 2014.  Denise Morrison, the president and chief executive officer explained that even though it is difficult to create new market segments, she is confident that Campbell’s Skillet Sauces is a “break-through” concept that has a “high potential for reward.” As a result, Campbell Soup Co. has seen the U.S soup business stabilize after the sales dramatically increased by 14%.

Campbell is currently collaborating with its customer base to create an entirely new category of “unique, convenient and versatile” dinner sauces, while experimenting with existing soups to improve taste. This would be an example of product design. Furthermore, Campbell took the process a step further and came up with an innovated product featuring soup in pouches that attract younger and more affluent consumers. Campbell’s competitive advantage over its competitors is its brand name which consumers keep coming back for more. The soup giant has built its brand name upon its Simple Meals platform featuring the popular Go Soup. In addition to the new dinner sauces, Campbell has announced it would be launching the Campbell’s Slow Cooker Sauces.

Despite its recent success, Campbell faced a problem with the product’s location placement and shelving; but the company said it has found the best way to shelve. However, Campbell continues to struggle in two categories which are U.S. beverages and North America Food service.  The self stable juice category sales have been declining due to overwhelming competition against Campbell’s V8 V-Fusion line and decreasing demand from restaurants. Ms. Morrison proposed a solution to this dilemma, by planning to apply the exact business model for its soup business to its beverage business. The plan consists of improving the taste of its existing vegetable juice while adding new products such as V8 energy drinks to attract a more diverse consumer base.

Most importantly, Campbell’s optimistic future is emphasized on management’s attention to the basics and expansion in faster-growing segments. For example, the V8 is considered a strong brand with high benefits such as promoting health, so Campbell’s management team is figuring out ways to improve its product. Campbell has invested in a new manufacturing line to increase the capacity of creating fresh soup to tackle the issue of structural changes in the food service sector. Campbell’s simple business strategy which is to keep costs low while improving its quality has proven to be successful in achieving its short term goals as well as laying a foundation for its long term goals.

If you have ever bought a Campbell product or is an avid consumer of Campbell, what made you choose their products?

Do you think that Campbell’s expansion of new products will maintain or increase its sales and revenue?


The simple joy of McDonald’s? Ba-da-ba-ba-ba, i’m hatin’ it


In 1948, the McDonald brothers re-organized the drive-in and completely restructured food delivery by focusing on quick and efficient “Speedee” self-service system which lowered prices as well as increased speed and volume of sales. Now, the McDonald’s Golden Arches logo can be seen throughout every continent except Antarctica and is one of the most recognizable in the world. McDonald’s Corporation remains to be the world’s largest restaurant chain focused on providing cheap fast food and delivering quick service to their customers.

However, the fast-food giant has been struggling with falling sales due to a vast number of complaints with its service. According to the Wall Street Journal, McDonald’s customer service is “broken,” because too many customers complain about the speed of the drive through, chaotic service, and unprofessional employees.

Slow service and inaccurate orders are known to be caused by management problems. Main reasons include employees being only trained for specific job tasks, lack of communication among fellow employees and poor wages. These problems lead to an increase in employee turnover and according to Wall Street Journal, McDonald’s Corp. contribute to 60 percent turnover rate. Furthermore, customers are outraged by rude or unprofessional employees and leave restaurants disappointed after experiencing chaotic service, which contradicts its traditional practice of “service with a smile”.

It is clear that customer satisfaction has a great impact on sales. What are the solutions to these management problems? First, McDonald’s new leadership has decided to focus on customer satisfaction to expand its brand name. The company will evaluate its performance through restaurant inspections, and conduct customer and employee surveys. The biggest change or improvement will be with the incorporation of the new “Dual-Point” ordering system. This will provide a simple and better service along with improved order accuracy. After the customer orders, he or she will be handed a receipt with a number and that order number will then appear on a screen and the customer will pick up his or her food at the other end of the counter. The “runner” will take on the responsibility of fulfilling requests and making sure the customer is satisfied with the order. Finally, the dedicated employee who delivers the food will thank customers and encourage them to come again.

In addition, new software has been installed to help managers decide the optimal number of employees to have on staff within a time frame. Also, the new management structure will designate managers to each area of the operation in the restaurant for efficiency. At the end of the day, by enacting these new changes to its management, McDonald’s Corporation hopes to win back its customer with improved customer satisfaction and encourage them to keep coming back for more.

There are number of restaurant chains that already carry out the new ordering system, will the new “Dual-Point” ordering system improve overall customer satisfaction for McDonald’s Corporation?

If you were part of the McDonald’s operations management team, what other implementations or suggestions would you incorporate to boost sales?