Case 12-2
Can Canned Soup Translate?
The first time that New Jersey–based Campbell Soup
[http://bi.galegroup.com/essentials/company/301350?u=tlearn_trl] tried to market its soups in China,
consumers simply did not buy them. It was the early 1990s, and Campbell’s marketers saw a huge sales
opportunity in a populous nation that sips a lot of soups—more than 241 servings per person per year, or
320 billion servings in all. In contrast, U.S. consumers swallow some 14 billion soup servings per year.
Traditionally, the vast majority of Campbell’s sales have come from U.S. markets, where soup is
about as mature as a product category can be. With sales growth slowing at home, the company saw great
potential for marketing soups to the large and increasingly affluent population in China. However, instead
of researching local buying and consumption patterns to see whether changes would be necessary,
Campbell decided to export its current line of condensed soups to China. The cans sat and sat on store
shelves, and eventually the company withdrew from the market.
The second time that Campbell planned to market soups to Chinese consumers, in 2007, its marketers
did a lot of homework in the months leading up to its product introductions. Its researchers traveled to
different regions of China to see how consumers make soup at home and to ask about food consumption
habits and preferences. They learned that Chinese consumers almost always make soup from scratch.
Although consumers add monosodium glutamate (MSG) to enhance the flavor of homemade soup, the
additive can cause headaches and other health problems. Chinese consumers “know [MSG] is not good
for them, and they’re looking for an alternative,” says the head of Campbell’s international division.
Using these findings, the company did not add MSG to its broths.
As part of its research, Campbell provided women in Shanghai with different broths and sample
recipes to get their reactions. Not everyone used the recipes—in fact, one woman said the broth would be
a good substitute for oil and water when stir-frying. The researchers concluded that Chinese consumers
were likely to use Campbell’s soups mainly as a base for meat, vegetable, and noodle dishes rather than as
a soup course. They also determined that, like their counterparts in many nations, Chinese consumers
would be interested in the time-saving convenience of premade broths.
Campbell’s product experts cooked up two types of all-natural, low-fat broths to market in China
under the Swanson brand. One was a strongly flavored clear chicken broth that research showed Chinese
consumers would prefer. The second was an even more full-bodied broth made from chicken, pork, and
ham. To introduce these new products, Campbell marketers arranged to give away 10 million samples
plus recipe flyers in major cities. Knowing that cell phones are extremely popular in China, they also
created text-message promotions to build the Swanson brand and to encourage product trial and
repurchase.
Following up on their research, Campbell’s marketers decided to distribute the new products in two
stages. First, they planned to sell the broths in large supermarkets, supporting the campaign with in-store
demonstrations to show how well the products work as a base for soup and vegetable dishes. As the
Swanson brand and image became better established, the second stage would be to distribute the broths
through smaller grocery stores.
Campbell’s second foray into the China market has gone smoothly, and the company is also
expanding into Russia, where it launched several new soups tailored specifically to that country’s
consumption habits and supported by sampling and coupons to stimulate trial and repurchase. Today,
Campbell rings up $7 billion annually through sales in 120 countries. What will it need to do to market to
the soup customers of tomorrow?
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Case Questions
1. What is the difference between consumer behavior with regard to soup in China and in your own
country?
2. Do you agree with Campbell’s two-stage distribution plan for marketing its new soups in China?
Explain your answer.
3. For Campbell, what are the likely marketing implications of gender, age, and regional influences on
the way that consumers buy and use soup in China?
4. Now that Campbell is using text messages to advertise the Swanson brand in China, should it use the
same promotional technique in Russia?