THE FOLLOWING ISSUES/PROBLEMS HAS BEEN LISTED PERTAINING TO THE CASE 6 OF CAMPBELL- IS THE SOUP SIMMERING

1. Campbell, known for its soups and broths, ironically is faced with consistent low soup sales compared to

all other product segments. Consumers have evolved to more convenient meal options like ready meals,

frozen pizza and/or dining out. U.S. consumers have also become more health conscience, making their

food choices are progressively more difficult and demanding. Campbell created the Healthy Request

product line with low sodium levels featuring the American Heart Association certification on a

redesigned label to appeal to the health and wellness consumers.

2. In an attempt to access the Russian and Chinese market, Campbells spends 3 years researching and

studying the local market. With the knowledge gained, they created a specific production line for the

local market in Russia. After a large marketing campaign and a price advantage from other competitors,

Campbells market share rose to 5-8% within the 10 months of operation. Not the best point of entry

into the market being that Mars (Gurmania brand), Unilever (Knorr brand) and DHV-S (Rollton brand),

controlled about 80% of the soup market in Russia (www.rb.ru).

3. Campbell is in a highly competitive and saturated market in the U.S. and globally. With competitors like

Nestle, General Mills, Kraft and Heinz, Campbell is continuously fighting for market share. When these

competitors are aggressively acquiring other brands and companies, it reigns them leaders in the field. On

the contrary, Campbell sells its luxury chocolate business Godiva for US$850 million to Turkish

diversified food company Yildiz; divestiture of its United Kingdom and Ireland businesses to Premier

Foods in 2006; and the sale of its ownership interest in Papua New Guinea operations (Baugher, Eisner, Korn, 68).

4. Gross margin performance is greatly affected by global economic volatility and increase in commodity

prices putting pressure on costs for the industry. Through the global weak economic state, consumer

spending on food and beverages were not greatly affected but consumers became more frugal and

chose cheaper food products.

BASED ON THE GIVEN ISSUES/PROBLEMS; PLEASE LIST THE CORRECT ALTERNATIVES AND THEIR ADVANTAGE AND DISADVANTAGE OF EACH ISSUE/PROBLEM LISTED ABOVE.