The Campbell Soup Company – to Be or Not to Be in Russia

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Making a decision on whether Campbell should dare to enter the Russian market or not is a far from easy. If Campbell would give it a try and succeed, the profits could be enormous. On the other hand, entering a new market in a different country with different cultural soup-related values and traditions can be a hard and expensive thing to do, especially if the attempt fails.

There are many circumstances that could motivate an entering of the market. Russia’s GDP is growing fast, the country’s soup consumption is more than twice as large as the U.S. and has a population exceeding a billion. By just acquiring a fragment of the country’s total soup consumption, Campbell could make loads of money.

On the other hand, Campbell would have to overcome many obstacles in order to successfully capture a piece of the Russian soup market. The Swanson consumer taste test clearly shows that the Russian consumers didn’t like the product. They thought it tasted like metal, lacked ingredients such as meat and vegetables and had a lot of other criticism regarding the quality of the soup.

Even tough the Swanson consumer taste test was far from a success I think Campbell should give the Russian market a try. Below, I will give the company some advice regarding what kind of product to launch and how to market their product.

The most important part of creating a marketing campaign is understanding your customers in the relevant segment (in this case, the average Russian). It’s obvious that the Russians soup-related traditions differ a lot from the American ones. In Russia, the preparation of soup is very important. It has strong connections to family values and tradition. As described in the text, soup has such an important place in Russia’s history that they have created a special word for it, “navaristy”.

Another thing Campbell can learn from the consumer information available is the importance of the soup ingredients. Aroma, healthiness and real chunks of meat and fat...
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