Demand Forecasting - Introduction | Campbell Soup Company | Case Study | Example

Summary

The video discusses demand forecasting and customer information collection as part of a marketing management series. It highlights the importance of these concepts for businesses to adapt to changing markets. Using Campbell Soup Company as a case study, it explains their strategy to target younger consumers by developing new products and marketing approaches. The video emphasizes the role of demand forecasting and data collection in making informed business decisions, promising to delve deeper into these topics in future videos.

Takeaways

• 📈 Demand forecasting is crucial in the ever-evolving retail industry, helping companies adapt to new customer demands.
• 🛍️ Companies need to continually reassess external factors like opportunities and threats to remain competitive.
• 🌐 Macro-environmental factors such as economics, socio-cultural trends, technology, and politics play a key role in demand forecasting.
• 🍲 Campbell Soup Company is used as an example of a company that had to adapt its products and strategies to changing market demands.
• 📉 Campbell experienced a market share decline due to competition and shifts in customer preferences for fresher, exotic, and ready-to-eat products.
• 👨‍👩‍👧 Younger generations (18-34 years old) in the U.S. made up 25% of the population, and Campbell needed to better cater to this group.
• 👨‍🍳 Campbell conducted in-depth customer research through 'live alongs' and dining experiences to understand their eating behaviors.
• 🥣 To meet changing preferences, Campbell launched new, more premium soups with exotic ingredients and shifted from tin cans to pouches for a fresher image.
• 💰 The company also adjusted its pricing strategy to reflect the premium nature of these new products, targeting a younger, more quality-conscious demographic.
• 📲 Campbell invested heavily in online marketing, collaborating with platforms like Facebook, Spotify, and Rovio to successfully promote its new products.

Q & A

What is the main topic of the video?

The main topic of the video is demand forecasting and collecting customer information, which is part of a marketing management series.

Why is demand forecasting important for companies?

Demand forecasting is important because the retail industry is constantly evolving, and companies need to adapt their products and services to meet changing customer demands.

What external factors affect demand forecasting?

The major external factors that affect demand forecasting include economic, socio-cultural, natural, political, and technological factors.

What example is used in the video to explain demand forecasting?

The example used is Campbell Soup Company, a 150-year-old company known for its iconic soups. The video explains how the company adapted to changing customer preferences over time.

How did Campbell Soup Company adapt to changing customer preferences?

Campbell Soup Company adapted by launching new varieties of soups, shifting from tin cans to pouches, and focusing on premium pricing and exotic ingredients to appeal to younger consumers.

What did Campbell Soup Company discover about younger consumers' preferences?

The company discovered that younger consumers, aged 18 to 34, preferred freshly cooked, exotic dishes over the traditional canned soups that appealed to older generations.

How did Campbell Soup Company promote their new products?

The company promoted their new products through online marketing campaigns on platforms like Facebook, Spotify, and collaborations with games like Angry Birds.

What role does information collection play in demand forecasting?

Information collection is crucial for demand forecasting because it helps companies understand customer preferences and behaviors, which informs their product development and marketing strategies.

What methods did Campbell Soup Company use to collect customer information?

Campbell Soup Company collected customer information through live-alongs and dine-ins, where they observed customers’ grocery shopping, cooking, and dining habits.

What is the relationship between demand forecasting and SWOT analysis?

Demand forecasting is related to SWOT analysis because companies must understand external opportunities and threats to forecast demand accurately and adapt their strategies accordingly.