Despite a down economy and sales declines in its soup business, Campbell’s Soup Co. is going against the grain—almost doing the unthinkable. Campbell’s is putting additional money into marketing and innovation in fiscal year 2012—$100 million to be exact. They have made the decision to invest in the soup division to reverse trends.
Advertising Age reports that Campbell’s intends to reformulate their soups to focus on taste and develop new advertising executions under the “It’s Amazing What Soup Can Do” campaign to communicate their new value proposition. It could be a tough road for them as they have increased price and have gotten out of the business of heavy discounting. They will have to convince consumers of the benefits offered for the price paid.
When things go bad, we see marketers forced to contract and tighten their belts. Innovation slows and marketing communications budgets are slashed. Many companies almost go into hiding and hope for things to get better. One has to wonder how things can improve with that approach.
Not every brand is of the size and scale of Campbell’s, or has the luxury of pouring more money into marketing when business is down. That said, there may be something that can be learned from Campbell’s investment.
Where would you invest during this difficult economic times?
Cross-posted from Off the Shelf