Full Steam Ahead

Terry Atkins’ mom collects Campbell’s Soup labels the old-fashioned way. Atkins is director-integrated marketing at Campbell’s Camden, NJ, headquarters. When his mom visits from Michigan, she peels the labels off cans in Atkins’ kitchen — then carries them home in her suitcase and mails them to her sister in Massachusetts, who gives them to her own grandchildren. “It’s this huge network effect,” says Atkins, who oversees all of Campbell’s promotions — including this fall’s renewed effort behind the 30-year-old Labels for Education program (LFE, for short).

Anne Pizarro calls it “the grandma factor.” As Campbell’s director of Labels for Education, she’s seen all kinds of label swapping — and likes that grassroots brand equity.

LFE is the cornerstone of Campbell’s back-to-school campaign, its biggest-ever back-to-school push. The Labels for Education Active Adventure Cruise sweeps breaks this month, targeting kids and moms with 60 grand-prize family trips on a Carnival Cruise ship.

Meanwhile, Atkins and crew are readying SouperStar Castle, the third version of an on-pack/online sweeps for kids, and a separate American Dreams tie-in that serves up tomato soup as a plot element for the NBC show (see sidebar).

It’s full steam ahead as Campbell’s enters soup season with an estimated $425 million to $450 million in consumer marketing support (including consumer promotions, co-marketing and advertising) despite job cuts announced in June.

Campbell’s is cutting 400 jobs, 300 of them in North America (165 at headquarters). Campbell’s won’t fill about 60 empty positions and has cut redundant jobs from its February realignment that merged U.S. soup with sauces and beverages. About 60 sales jobs were cut nationally, but relatively few marketing jobs; meanwhile, the consumer promotions team has been reorganized (see sidebar).

The cuts are the latest step in Campbell’s three-year turnaround plan, begun in 2002 following years of sluggish soup sales. Condensed soup fell 4% to $927 million for the 52 weeks ended June 13, per Information Resources Inc. Ready-to-serve soup, including Chunky and Campbell’s Select, hit $999 million, up about 1.5%.

Cost cuts, a $200 million marketing boost and new products and packaging (especially pop-top cans) have had an effect: Campbell’s net sales rose 9% to $6.68 billion for fiscal 2003, and another 9% to $5.7 billion for the first nine months of fiscal 2004, which ended July 31.

Meanwhile, there’s a slate of 29 products to launch, the annual NFL campaign to get under way, and promos with soccer star Freddy Adu to produce. Campbell’s signed 15-year-old Adu as its newest spokeskid in July (and sponsors his Major League Soccer team, DC United). TV spots break this month, with promos slated for spring. “From a wellness and role-model perspective, it’s good to have him aligned with our brand,” Atkins says.

Adu may make a cameo appearance in the back-to-school campaign — one of the three portfolio promos Campbell’s runs each year. (The others are holiday and a January wellness campaign.) Campbell’s has done as many as seven multi-brand promotions a year, but scaled back to three “to make them more significant,” Atkins says.

Campbell’s marketing strategy hits three themes: Kids, wellness and convenience. Those, along with indulgence and ethnic food, are grocers’ top priorities.

Livening up labels

The Active Adventure Cruise sweeps awards one trip for four each day for 60 days. Campbell tapped family-friendly Carnival Cruises and will add Campbell-specific activities for the May 2005 cruise — healthy cooking classes, maybe a soccer clinic with Adu and perhaps skateboarding on an island stop. Campbell could tap its relationships with skateboarder Bucky Lasek and Food Network stars Gordon Elliott and Sandra Lee to enhance the cruise.

An Aug. 8 FSI launches the sweeps; entrants go online to enter an on-pack code found on Chicken Noodle, Spaghettios and Pepperidge Farm Goldfish — as well as secondary brands Prego, Soup at Hand and Supper Bakes. Ryan Partnership, Wilton, CT, handles; BBDO, New York City, handles ad support.

Account-specific overlays support in 90% of stores. Campbell’s jumpstarted “equity alliance marketing” (read: co-marketing) last year with a major budget hike and its first co-marketing AOR, Ryan’s Minneapolis office. “It helps our sales organization have a deeper, richer relationship with key customers,” says Bob Fitzgerald, Campbell senior manager-equity alliance marketing.

For the Active Adventure Cruise, half of participating retailers host custom overlays; the other half tie Campbell’s national promo to their own education programs. For example, Kroger’s three-year-old Make Your School Really Cool continuity program gives 500 bonus labels with the purchase of 25 products. Campbell uses Kroger’s database to mail to heavy-user households, and sent LFE starter kits to 4,000 schools on Kroger’s behalf, linking stores to nearby schools.

Retailers also earn labels for local schools through extra merchandising support. Grocers like LFE because it’s turnkey, it’s local and household penetration is impressive: Twenty-two percent of all U.S. households participate in Labels for Education — 44% of households with kids aged six to 12.

Nearly 75,000 schools are registered; about 30,000 of them redeem labels each year for up to $4 million in merchandise, from sports equipment and computer software to vans (at 1.4 million labels each). This year Campbell’s adds more fitness gear, including a Fitnessgram/Activitygram assessment tool “to encourage physical activity in schools,” Pizarro says.

“We’ve put more energy behind Labels for Education the last two or three years,” Atkins says. “It’s the one program that gets the most support from retailers.”

Labels have become a kind of currency for community groups and churches. Three years ago, Campbell’s added a community bonus program that gives schools up to 2,000 bonus points for participating in local programs such as fire safety and food drives. “That rewards the school and the greater community, and reinforces the brand relationship,” Pizarro explains.

The cruise sweeps is “a bigger idea” than past LFE promos, Pizarro says: “Education is still a theme, but we wanted to add a bit of excitement — something with an activity base to support wellness.”

Chicken Noodle, Spaghettios and Goldfish got headliner status for back-to-school based on their size, relevance to families — and how much money they can kick in: Brands contribute a percentage of their sales (Atkins won’t say how much) to the joint marketing budget. Account-specific overlays are funded through consumer promo dollars channeled through retail, in addition to trade promo dollars.

The Action Adventure Cruise is Campbell’s first major collaboration with Pepperidge Farm, under a mandate from senior management to leverage the full scale of Campbell’s portfolio, which includes V8, Pace, Prego and Godiva Worldwide as well as Pepperidge Farm. (Mark Sarvary, exec VP-president of Campbell North America since mid-March, had been president of Pepperidge Farm.) It’s nice having a partner with direct-store delivery: Campbell’s taps Pepperidge Farm’s fleet to get P-O-P up and monitor compliance. Campbell’s tries to talk with the VP-purchasing at key retail accounts rather than separate soup and biscuit buyers, and has put more energy into display-ready pallets.

Campbell’s reputation among retailers has improved in recent years: It was No. 9 among the Top 10 manufacturers in Cannondale Associates’ 2003 PoweRanking, which tallies retailers’ opinions of CPGs.

“Campbell’s gets its strongest marks [from retailers] for good strategy, and its weakest for growth in sales profitability and brand relevance,” says Don Stuart, a consultant with Wilton, CT-based Cannondale. “Their big strategic challenge is making soup more relevant. They’ve made their biggest strides in improving the supply chain, a high priority for retailers. But the easy gains are over; Campbell’s needs to push forward on making their brand more relevant and driving growth and profitability.”

Courting kids

Campbell’s second fall promotion woos kids directly. SouperStar Castle breaks Sept. 20 and gives one grand-prize family of four the run of an Oxfordshire, U.K. castle for a week. Kids use on-pack manufacturing codes as game pieces, entering codes at mysoup.com — which also has a photo tour of the castle and games. (Why a castle? Kids suggested it in focus groups. “We’re not taking a wizardry approach,” Atkins says. “It’s a chance to live like a king for a week.” Other top fantasy for kids? Their very own island.)

Campbell’s started marketing directly to kids last fall with the October 2003 on-pack/online sweeps SouperStar Fantasy and then SouperStar Mansion in February. “Programming around kids has done a lot to change [families’] perception and the relevancy of our brand,” Atkins says. Focus groups showed “kids really like Campbell’s soup; they just hadn’t thought to ask for it,” he adds. “We want to be on the kid repertoire.”

Campbell’s formed a Kids Speed Team last summer to jumpstart kids marketing. Red & White Senior Brand Manager Maurice Herrera oversees the 12-member team — staffers come from marketing, R&D, design, p.r. and outside agencies — which meets weekly to set strategy and tactics, review creative and keep projects moving. First work was Goldfish Soup (fish-shaped pasta in chicken or tomato broth); new this fall are Sports Pasta soup: Sports Pasta Burger, Sports Pasta Pizza and Sports Pasta Meatball feature pasta shapes for motor sports, team sports and extreme sports. Campbell’s courts younger kids with Dora the Explorer and Jimmy Neutron pasta via a licensing deal with Nickelodeon. Print and P-O-P will support via BBDO and Ryan, respectively.

NFL and kickoffs

This fall, Campbell’s piggybacks its longtime NFL sponsorship to launch four flavors of Chunky Chili, first entry in the $300 million canned chili segment. (Cold-blend cooking technology adopted last year is ideal for making chili.) National TV spots and local events celebrate tailgating, with local-market appearances by self-proclaimed “Commissioner of Tailgating” Joe Cahn and account-specific overlays for 26 retailers, with local NFL teams. Chunky Chili cans carry NFL trivia that drives fans online. TV spots show NFL fans in crazy costumes, via Young & Rubicam, New York City.

Other products launching this fall are Campbell’s Carb Request ready-to-serve soups (five flavors, three to six grams of carbs), with promotional support via Depersico Creative Group, Havertown, PA; premium, ready-to-eat soup in resealable aseptic packaging used in France and Canada; V8 vegetarian soups, entrees and chili (for away-from-home consumption); and low-sugar V8 Splash juice and Smoothies. Campbell’s also will spend $65 million to double production capacity for microwaveable soups by August 2006.

Line extensions strengthen an enviable portfolio that’s high in veggies and low in carbs. (One analyst called Campbell’s portfolio second only to Danone’s for healthful foods.) “As other people raced to market with new products to make them relevant, we’ve had healthy products all along,” Atkins says. “We didn’t have to fix anything.”

Campbell will leverage that advantage with a first-quarter 2005 multi-brand promotion. Meanwhile, it pitches wellness with Adu; Carb Request soup launching this quarter; a TV and print campaign tagged “M’m! M’m! Good! … No matter how you watch your waist”; and the Campbell’s Soup for Life program.

Adu will appear in promos and LFE “as we speak more about wellness,” Atkins says. “Our health message is ‘Calories in, calories out,’ with Freddy as a role model.” The first TV spot starring Adu pits him against Elliott in a soccer match to win a bowl of Chicken Noodle soup.

Elliott may reappear in Tasty Tuesdays as well. The year-old online/in-store effort resumes this fall with TV, radio, P-O-P and FSI support. Consumers register online to get recipes via e-mail each week; grocers support with meal-driven merchandising that shelves ingredients together. Campbell’s collected 1 million e-mail addresses when Tasty Tuesdays went national last fall; it still mails recipes and updates the site each week.

Campbell’s Soup for Life weight-loss program continues via Campbell’s year-old Center for Nutrition & Wellness. The idea is to eat soup each day to feel full and cut calories; recipes highlight brands like Healthy Request soup and V8 Splash.

Another NFL standby, Chunky’s annual Tackling Hunger campaign, may get a new moniker this fall as it expands beyond NFL venues to college games. Campbell’s will sample Chunky and microwaveable soups on campuses, primarily in the Northeast, via Gigunda Group, Manchester, NH.

New TV spots will continue to star moms of NFL players. “It’s a lot easier to get moms during football season than players,” Atkins laughs.

Just as long as moms get the labels.

Dream On

It was NBC’s idea, but Campbell warmed it up. NBC approached Campbell’s media-buying agency, MediaEdge:cia, with a proposal: Buy ad time during American Dreams and get product placement and extra airtime. Campbell suggested another recipe: Integrate its classic tomato soup into the storyline and give a walk-on role to the winner of an essay contest that mirrors the show, which is set in 1960s Philadelphia.

This fall, during American Dreams’ third season, high schooler Patty Pryor (played by Sarah Raymos) competes in an essay contest. Off-screen, Campbell’s hosts an essay contest asking high-school students: “How does your American dream compare to that of your parents?” Entrants submit 300-word essays. The grand prize is a walk-on role for the winner and a friend, a $100,000 scholarship and one million Campbell’s labels for the winner’s school.

“The storyline has an interesting twist, and we have a real rich history with nostalgia,” says Terry Atkins, Campbell director-integrated marketing. American Dreams will thread the story through the season.

“Because the show’s essay contest takes place in 1965-66 and parallels the same contest taking place today, we can cross-promote the tradition of Campbell’s Tomato Soup at the family dinner table — then and now,” says Jonathan Prince, American Dreams’ executive producer (along with Dick Clark). “I hope we’re making a statement that American Dreams and…NBC are eager to find innovative ways to work together in the current marketing climate.”

The contest runs Aug. 15 through November via Marden-Kane, Manhasset, NY. Ten finalists will be announced in the Feb. 6 episode (their names make up the list of finalists in the show’s contest). The grand-prize winner is announced Feb. 11. (The other nine finalists get $2,500 scholarships and 100,000 labels each.) Campbell’s is supporting the contest with TV, radio and print, a September FSI and tags on 42 million cans of red & white soup. Scholastic Marketing Partners created an American Dreams curriculum for 60,000 high school classrooms.

Starting Lineup

Just Enough Cooks

Campbell renamed its consumer promotions division “integrated marketing” in June and shuffled staffers, who have rotated brand assignments (similar to brand-management rotation). Five senior promotion managers now report to Director-integrated marketing Terry Atkins: Bob Fitzgerald, who oversees co-marketing; Anne Pizarro on Labels for Education; Jacqueline Picariello for all soups; Dean Evenson on cooking soups, gravy, sauces and salsa; and Janet Dagrosa for beverages.

The consumer promotions staff went from nine to seven when Campbell cut jobs in late June. The new name reflects an umbrella marketing strategy begun last year. “We have to speak with one consistent voice across every element of the mix, in the store aisles, on TV, on the Web,” Atkins says. “We have a more consistent look than we did a year ago.” Campbell also is reorganizing its sales force to better cover convenience-driven distribution channels, especially c-stores as well as Wal-Mart and dollar stores.