In moves to become a stronger global player, the company announced its $200 million account will soon be up for review, after recently consolidating some divisions and reorganizing media.
"Change is a constant here," said Kevin Lowery, director of public information for Campbell. While reports have said the Camden, N.J.-based company will eliminate up to half of its eight roster shops, Campbell denied any decisions have been made. "This is not a shoot-out," said Mr. Lowery. "It's premature to say that anyone will be cut." The review is not scheduled until early 1996.
Agencies that currently handle the Campbell lineup are: Bates USA, New York, for Campbell's chunky soups; Bayer Bess Vanderwarker, Chicago, for Franco-American canned meals; BBDO Worldwide, New York, for Campbell's red and white soups, Swanson and Mrs. Pauls; FCB/Leber Katz Partners, New York, for Prego, Vlasic and V8; Margeotes, Fertitta & Partners, New York, for Godiva and Barilla; Ogilvy & Mather Worldwide, New York for international business; Temerlin McClain, Dallas, for Pace; Saatchi & Saatchi Advertising, New York, for Pepperidge Farm and Franco American gravy.
"In the last five or so years, [Campbell President and CEO] David Johnson has had a rather intense focus on reorganization domestically," said Michael Mauboussin, an analyst at CS First Boston, New York. "Now they're shifting to a growth orientation internationally." Indeed, the company's focus per its 1994 annual report is a "global crusade."
Campbell will reportedly consolidate larger brands with single agencies for worldwide campaigns, which would make agencies that share brands vulnerable. Recent wins for Margeotes of top-selling Italian brand Barilla pasta sauce-new to the U.S. just as the premium sauce category may again heat up-and for Saatchi of $15 million Pepperidge Farm and Franco American gravy seem to shore up their positions.
"The Pepperidge Farm pickup was a major step for us," said Ed Wax, CEO of Saatchi & Saatchi Worldwide. Cordiant named a 30-year veteran of multinational consumer marketing, Robert Seelert, CEO this week (see story on Page 6), signaling its intention to seek U.S.-based multinational accounts like Campbell through its Saatchi and Bates arms.
O&M previously handled the Saatchi business as well as overall international advertising.
Campbell's recent review of its media services culminated with the formation of the Campbell Media Alliance, a unit of Foote, Cone & Belding's True North Media that handles all of Campbell's media planning and buying.
The move to the customized media unit was a radical departure for Campbell, which for years prided itself on maintaining a stable of media shops, so much so that it actually held an annual Campbell Media Awards program.
But Campbell's VP-global advertising Gary Moss says media was consolidated to gain greater control over the development of media strategies and to move them up the line of the marketing process to work more closely in the early stages of brand management.
Joe Mandese contributed to this story.