Thursday, July 26, 2012

Will Gen Y buy Coconut-Curry Chicken soup for $2.99?


Campbell’s Soup has announced plans to introduce a new line called “Go Soup” aimed at Gen Y foodies, who have a taste for culinary adventure and variety.  Interestingly, many of the announced varieties such as Chorizo and Pulled Chicken with Black Beans seem to have an ethnic skew perhaps reflecting the fact that the U.S. is well on its way to becoming a majority non-white country. (Forbes, 2012)
The new line also taps into the target’s desire for convenience, with fuchsia and white pouches replacing old style cans.  But at least one consultant fears that the $2.99 selling point, approximately three times that of condensed soups, may scare off under and un-employed prospects.  (Welch, 2012)
What do you think?  Is $2.99 too much for a home cooked meal?

Forbes, T. (2012, July 25).  Campbell Looking To Bowl Over Millennials.  mediapost.com.  Retrieved July 25, 2012, from
http://www.mediapost.com/publications/article/179517/campbell-looking-to-bowl-over-millennials.html?edition=49388

Welch, D. (2012, July 24)  Campbell Chases Millennials With Lentils Madras Curry: Retail.  Bloomberg.com.  Retrieved July 25, 2012, from
http://www.bloomberg.com/news/2012-07-24/campbell-chases-millennials-with-lentils-madras-curry-retail.html

6 comments:

  1. Because Gen Y are somewhat price sensitive, the price point could be an issue if it were presented in the traditional packaging. However, if Campbells were to create a new package and brand (as mentioned above) that targeted the Gen Y, I believe it would be an easier sell and could quite possibly be popular. Gen Y are always looking for the next "it" thing and with technology almost always at their disposable, they are savvy and brand-sensitive. This is an important facet to consider when trying to market a traditional product that was around when their great, great, great grandparents were kids. Gen Y are image (of self) and global (of environment and ecology) conscious and focusing on one of these two aspects when creating the campaign may serve as beneficial - perhaps adding how the product is correlated with green living (less impact on carbon foot print with pouch over aluminum) or can improve their personal image (culturally rich).

    ReplyDelete
  2. I normally view soups as a seasonal buy, which is why it was interesting to find Campbell’s launched a new soup in the summer. Another surprising element was that they are targeting gen Y. The large population of baby boomers are now moving into their senior years, which is when soup consumption habits normally increase.

    On the other hand, today’s economic situation has forced all generations to eat in more and keep soup related foods in their pantry. Furthermore, although I am not their target, I don’t always eat soup as a meal but rather a snack. Providing that’s also the case for gen Y, $299 may be high for the condensed soup category, but it’s definitely comparable to what we would pay for a bag of chips or other snacks. Campbell’s may be on to something if they combine the snack element with the taste for culinary adventure.

    Karina

    ReplyDelete
  3. I agree with analyst Scott Mushkin that the product line can be successful if it is positioned right. The adventurous flavors will make the product stand out, as well as the innovative packaging. $2.99 isn't a high price to pay, when other on-the-go meals or snacks can cost that much or more. "Liquid meals" or nourishments are popular these days with the rise of juicing which has now become a $5 billion business. Campbells will be one of the players in the game after the purchase od Bolthouse Farms, a seller of premium juices. They will share shelf-space with Cocoa-Cola's Odwalla Juice and Pepsi Co.'s Naked Juices. These juices range from $3.49 up to $4.99+ per juice, while fresh squeezed juices range from $5-$8 per juice. Campbell's new on-the-go soups, especially on a cold day, seem like a pretty good option for $2.99.

    ReplyDelete
  4. As a Gen-Yer, I think this is a great product. I like to think of myself as a foodie and appreciate campbell's insight about my generation. I think it's labeling is a little busy but I like the idea of the pouch. There are many cold days where I opt out of bring soup for lunch because of its difficulty traveling. I even think that the "Soup at Hand" container is big and heavy and the ouch is easy to carry in a purse or my school bag. I think the price is worth it especially in New York where its hard to get a nutritious meal inexpensively.

    ReplyDelete
  5. As a member of Gen Y, this idea from Campbell's puts a bad taste in my mouth. When I think canned soup I think sodium and lots of it. I cannot shake that thought no matter how hard I try.

    I enjoy food and will pay extra for it to have a better quality and nutritional value enter my body for consumption. I do feel that the new flavors and varieties are on the right track about where this countries demographics are going but the vehicle of soup is not the way that Campbell's will get me on board.

    The price of $2.99 doesn't seem like a lot at all compared to other types of on the go or fast foods, however when you have on the go types of foods a company cuts corners to create these types of products and cutting corners usually translates into not so healthy. I will take the long road and spend more to have a more healthy meal.

    ~Chris

    ReplyDelete
  6. Once again as a representative of Gen Y, I admittedly have no idea how much a can of soup cost. I tend to pack the cart with what I think looks good and then get a shock at the register (just one of the reasons I'm not allowed to grocery shop anymore).

    Packaging soup in a convenient way will entice younger, on-the-go shoppers to consider purchasing soup. I can see this being a hit with the on-campus college crowd.

    The problem with this campaign is the flavors. Coconut-curry chicken soup doesn't sound like something I want to try out of a can. If they make heartier soups and stick to traditional flavors, they might just have a win (at least until Gen Y starts asking their parents how much soup is actually supposed to cost!).

    -Rhon

    ReplyDelete