HOWARD MOSKOWITZ AND EXTRA CHUNKY SAUCE 13
HowardMoskowitz and extra chunky sauce
HowardMoskowitz and extra chunky sauce
Natureand scope of the change
TheCampbell Soup Company had created a brand by the name Prego back inthe early 70s and mid-80s. This product was struggling to establishin a market already dominated by a rival sauce called the Ragu sauce.The effort prompted the company to seek the assistance of a renownedmarket researcher on the best recipe to improve their Prego spaghettisauce brand (Spence& Piqueras-Fiszman, 2014). The researcher Howard Moskowitz collected data from a variety ofAmericans testing their tastes and preference. He collected the dataand sorted it according to need, from where he learned that peoplehad, three types of taste and preference, in as far as the sauce wasconcerned. This revelation challenged the notion of a perfect saucesince the outcome of the research was highly diversified almost tobalance. From the data he sorted, he realized that people had threedistinctive tastes of their choice. There were those who preferredplain sauce there were those who preferred spicy sauce and the restpreferred extra chunky sauce (Spence& Piqueras-Fiszman, 2014).
Theresearch led the company to discover a need that had existed in themarket and did not have the product to satisfy it. The identifiedneed gave rise to the new brand of the extra chunky sauce. Thisrevelation was quickly embraced by the Prego Company who adopted theextra chunky sauce for their spaghetti and it, in turn, made thecompany $600 million within the next ten years that followed.According to Tuorila& Monteleone, (2009),Howard’s discovery was based on embracing our diversity andaddressing the richness that exist within our human diversity,regarding cultural, religion and social being. Instead of finding aperfect sauce, Dr. Howard found a variety of sauces that enabled thePrego Company to respond to the various needs of her diverse clients,in a more profitable way giving the brand a much needed competitiveadvantage in the market.
Expectedoutcomes of the change
Whenthe Prego company management was reaching out to Dr. Howard forconsultation, they were expecting him to help them improve thequality of their priory existing sauce. The longer plan was for himprovide a superior recipe to enable them to come up with a superiorbrand that would level their marketing ground against their maincompetitors. This is considering how poorly their prior sauce brandwas fairing in the market against the then superior Ragu sauce brandfrom their rivals. The expected discovery of new ingredients wouldhave helped the Prego brand to launch a more competitive spaghettisauce product. The latter would have alternatively translated into ahigh customer base and or a high-profit margin in the company`sreturns. The company also, expected to improve the taste of theirspaghetti sauce without necessarily increasing the cost of production(Tuorila& Monteleone, 2009).
Thecompany might also have wanted to align its core goal of extendingits tomato use beyond their kitchen, in a manner that they could havecommercialized it as a different entity. According to Tuorila& Monteleone, (2009),the company had started processing thick tomato sauce withoutseparating water from the solids, a tactic that was aimed atattracting a broad range of customers for home use of their newproduct. The latter was made to compete against their rival`s productthat had less appeal for home users due to the excessive use ofstarch as a thickening agent for their sauce. These changes placedthe Prego Company at the top of its competitors by the early and late80s, after they successfully launched the extra chunky tomato saucefollowing Dr. Howard`s research discovery.
Roleof Howard Markowitz in Prego organizational change:
Dr.Howard Moskowitz played a majorly pivotal role in the discovery ofthe extra chunky sauce for the Campbell Soup Company (Gladwell,2007). This assisted the company to attain a commanding market shareand a commanding competitive advantage. As a consultant, he helpedthe company to increase its profits to 600 million dollars within aspan of 10 years, by fur surpassing her main priory competitors. Thelatter was facilitated by his passionate discovery of the happinessthat is derived from providing people with a broad range of options.His objective was to help Prego Company discover the richness thatlie within her varied clients` desires and reverse these distinctdifferences into needs. This created a business opportunity for thePrego Company, placing her at the top of the industry for over adecade.
Dr.Howard Moskowitz had attained his doctorate from Harvard Universityin 1969 and later moved to open a consultancy in White Plains NewYork City (Gladwell, 2007). Apart from publishing over fifteen books,he has written more than 300 scholarly journals. His first majorclient was the Pepsi Company which wanted to maximize the discoveryof the aspartame in making it diet Pepsi. According to Gladwell,(2007), this company required Dr. Howard to give them a balancedsugar substitute that would enable them to make a perfect Pepsiproduct. His job entailed providing a balance between not sweetenough Pepsi product and not very sugary (Gladwell, 2007).
Afterdoing a sample research to find the desired perfection, the researchfindings were completely out of the scope he had expected. This gothim to continue his research for some years until he discovered thathe had erred by searching for a perfect Pepsi instead of a range ofPepsi product. This revelation played an instrumental role in hisfuture jobs, especially in the food industry. His revelation was asuccess when the Classic Pickles Company consulted him in theirendeavor to search for a perfect pickle (Gladwell, 2007). He assertedthat there was no existence of a perfect pickle but rather a varietyof pickles, an argument that gave birth to the first Zesty Pickle.
Heplayed an instrumental role in the establishment of the zesty picklefor the classic pickle company. His most notable achievement lies inthe discovery of the extra chunky sauce for the Prego Company, whichhelped the company to turn around its dwindling returns in the 70sand 80s. Through his scientific research, he dispelled the fact thatfor one to realize what people need, he or she has to ask them. Thiswas by acknowledging that through asking people, though they knewthey had a preference for extra chunky sauce, they never mentionedsuch a need. This led to his famous argument that the mind, cannottell what the tongue desires, just like people don`t acknowledge thatthey cannot always explain what they want (Moskowitz & Gofman,2007). He also refuted the horizontal segmentation theory in the foodindustry, citing that taste cannot be universal owing to thedifferent likes and dislikes that exist in our varied human nature.This led to his conclusion that universality in the food discouragesthe diversity that exist across our many cultures, a phenomenon thatshould help us to derive true happiness from our choices.
Impactof organizational change on the strategy of the company
Theorganizational change experienced by the Campbell Soup company openedan entirely new perspective in the manner in which research iscarried out in the food industry. Apart from growth in both themarket share and profit margins, the company had to change severalstrategies to be aligned with the market demands. For instance,according to Moskowitz & Gofman, (2007) the company realized theneed to respond to the external forces that influence thedistribution of the growth in the global economy. Additionally, theyhad to factor in other elements that stir growth within the globalfood industry, to maintain their competitive advantage. They alsobecame more conscious of the dynamics of the world market asinfluenced by the new entrants in their market. These dynamics wereto present a wide range of opportunities from the soaring population,who will act as the driving force of the food industry commanding aclose to 70 percent (Ares et al., 2014). According to Ares et al.,(2014), these customers’ needs and desires today are shaped bynutrition, taste, convenience or the cultural values.
Consideringthe company’s market position, it became better aligned to therespond to many demands that are emerging in the market, to attain aglobal appeal. The other strategic plan that was changed by theorganizational changes was investment segments that should be gearedtowards sustainable growth (Ares et al., 2014). These strategies werefurther positioned to respond to the research findings in the future,based on the people’s desire for shopping, cooking, and the generallifestyle in entirety. The company also strategized on how to notonly invest in financing their brands to enhance competitiveness butalso, finance activities that are likely to promote the presence oftheir brand in the global market. This was to be facilitated byfunding community-based project that promote innovativeness, as wellpackaging products to respond to the customers` current and futureneeds. The leadership also was in the future geared towards talented,dedicated and highly engaged management and teams to facilitatesustainable growth (Ares et al., 2014). This was done to maintain aculture that was teamwork based and to maintain the setorganizational goals along the workforce competencies.
Theprocess is undertaken in conducting the organizational change
WhenDr. Howard Moskowitz was presented with theCampbellsoup problem, he went and took samples from their kitchen and tookthem to New York and other cities for sampling. He would take severalpeople and serve them with a bowl of pasta in a big food truck. Hewould then provide them with all the available sauce varietiessamples from the Campbell Soup Company products, which he would askthem to rate on a scale of 0-100. He carried this activity for monthsuntil he had enough data, based on the Americans taste and preferencefor the various Campbell Soup products. He sampled the data andgrouped them into their various taste and preferences. He laterrealized that there was a trend upon which the preference and tastewere emerging. These trends were the liking for plain sauce, thetaste for spicy sauce and the desire for the extra chunky sauce(Moskowitz& Hartmann, 2008).
Fromhis research findings, he discovered that the extra chunky sauce hadnot been made by the time of his research, and it had a high demandin the market. The total of the people who had raised the desire forthe extra chunky sauce was approximately 30percent of the totalpopulation tallied. Realizing that there was no company meeting thisdemand, he advised the Campbell Soup Company which immediatelystarted mass production of the extra chunky sauce and delivering itto the supermarket shelves. This translated in a 600 million dollarsearning, in a span of ten years that followed. Later, when othercompanies realized the secret, there was a wide variety of vinegar,mustard and olive oil.
Communicationprocess of the change to stakeholders
AfterDr. Howard Moskowiz completed his research he presented themanagement with his findings. Instead of advising the management onthe need for new ingredients to make a perfect sauce-which he neverbelieved existed- he presented them with a business opportunity hehad discovered. This was the realization that in spite of the highdemand for extra chunky sauce, the product was not available in themarket. According to Griffin& Moorhead, (2011),for a change process to be fully adopted by an organization, themanagement must fully share the aspirations of the desiredorganizational change. The Campbell Soup Company managementimmediately realized the shared vision that Dr. Howard had for thecompany. This realization made it easy for the idea to be quicklytranslated into production reality, thus, giving birth to a newproduct line of the extra chunky sauce for the Prego spaghetti.Successful communication process of any change is greatly influencedby a couple of factors. There must be constant and well stagedinvolvement of the management and other stakeholders for tofacilitate a full understanding of the expected changes and priorplanning for their implementation (Moskowitz& Hartmann, 2008).The nature of inclusiveness at all stages, right from the start isparamount in determining a successful motivational level towards thedesired organizational changes. This greatly assisted Dr. Howard,since he involved the company right from the start to the very end.This means that the management was aware of what was coming and werereadily prepared for it. Though the change might be minute,organizational change needs to be critically and continually reviewedand renewed to facilitate the best use of skills and knowledgetowards the attainment of competitive advantage (Griffin& Moorhead, 2011). Ever since the ascension of the Campbell Soup Company to the top,the Prego teams have enhanced their communication strategies, come upwith teams to facilitate project changes and boost the workforcemorale to promote a sustainable growth. The communication has todaybeen geared towards adopting creative and original ideas within theworkforce to challenge everyone to come up with ways to change theorganization towards meeting its organizational goals.
Managementof cultural issues involved in the organizational change: CulturalIntelligence
Inthe quest for a perfect sauce recipe, the Campbell Soup Companyforgot that in the food industry variety is the secret. According toColino,Benito-Osorio & Rueda, (2014),cultural intelligence entails working across varied cultures byintegrating all their needs. He addresses a priory existing widecultural gap through research and incorporation of the new findingsof the desired extra chunky sauce. The latter required the ability tobalance the cultural issues with the organizational goals without onedisregarding the interest of the other or getting one`s valuesassimilated. Dr. Howard Moskowatz did not use a graph kind of datainterpretation to determine the perfect sauce for the Campbell SoupCompany though he could have done that and chose the most popular. Heinstead took a vast data for sampling and included the needs of boththe clients and the organization. By doing this, he struck a perfectbalance between a culturally diverse customer need and the needs ofthe company. This prompted him to come up with a variety of sauces,rather than to come up with the perfect one or perfect ingredients tomake one as were expected of him by the company.
Dr.Howard displays a wide knowledge of the different cultures and how togo about them. To bridge the cultural gap, one need to have a clearunderstanding of his culture first, to establish the existingdifferences and or similarities across various cultures (Colino,Benito-Osorio & Rueda, 2014).This means that Dr. Howard had a clear understanding of the CampbellSoup Company`s culture and how he needed to ingrate the diverseAmerican culture to suit the competitive advantage that the companyneeded. Cultural mindfulness and being open to new divergent ideas,as well as the desire to maintain a have new experiences requiresintense concentration, listening and high inter-personal skills(Colino,Benito-Osorio & Rueda, 2014).These are attributes clearly witnessed as Dr. Howard carries out hisresearch and consequently discovering the new product line-the extrachunky sauce. This new revelation shows a skillfully keen and mindfulresearcher, who pays close attention to the needs of others and theeager to learn and incorporate new experiences.
Diversitymanagement in light of initiated change
Thechange started at the Campbell Soup Company was strategically managedto accommodate a very divergent aspect of customer target. This iswitnessed in the manner in which, through Dr. Howard`s research, thecompany included a product that was priory not available though thedesire for it was so high. This is evident from the one-third of hisresearch sample declaring their liking for the extra chunky sauce.The result indicates that the organization among many others was in amajor way disregarding the needs of a quite huge customer base, thuslosing huge return as a result. A deep understanding of diversityrequires one to move beyond the conventional values and embrace freshand new ideas that facilitate continuous evolution (Campo& Mackertich, 2010).This requires the leaders within an organization to possess a highlevel of commitment and display his skill of the implementation ofthe change to be initiated. These are attributes that facilitated asmooth diversity management changes in the case of the Campbell SoupCompany. Availability of resources and time to initiate a diversechange within an organization is important as was the case of thePrego Company thus they sought the help of a consultant.
Additionally,the organization must have enough time to systematically assess thedivergent efforts to be initiated in the organization. Without thelatter, it would be a challenge to determine the genesis of thechallenge and propose possible solutions to the diversity problem.The Campbell Soup Company had its senior level management closelyengaged in the process of initiating diversity changes within theircompany. According to Campo& Mackertich, (2010),training the entire workforce may not facilitate the desireddiversity changes and may be highly costly. He points out that itwould be cost effective and time conscious to hold the top managementaccountable just like was the case at the Campbell Soup company. Tomeasure the workability of the desired diversity initiative, thereshould be measures to compare the past and the present. Thisassessment process was used by the Prego Company to provide andassess data feedback and provide a way to intervene through theproblem detected through scientific data methodology as carried outby Dr. Howard.
Outcomesof the organizational change
Theorganizational change facilitated by Dr. Howard brought about severalchanges to both the organization and the food industry as a whole.First, the change led to the discovery of a new product called theextra chunky sauce which resulted from the extensive research carriedout that showed the richness of diversity. Second, the organizationalchange addressed a serious organizational disregard for diversitythus bridging the priory existing diversity gap. This was enabled bythe inclusion of the third category of sauce which was the extrachunky sauce bringing in a new crop of customers all together.Thirdly, through the revelation that one-third of the Americancustomers had a strong desire for the extra chunky sauce and thelaunching of a new product line, the company realized huge financialreturns to the tune of 600 million dollars in a span of one year.
Thiswas a huge catch considering that it placed the company at acompetitive advantage thus, gaining a commanding market share.Fourth, through the discovery of the extra chunky sauce, manycompanies adopted the trend, leading to a wide variety of dissimilarproducts ranging from, vinegar, and sauce, mustard and olive oil.This variety facilitated a diverse range of products to cater for adiverse customer base at the fast growing food industry globally.Through the discovery by Dr. Howard that true happiness lies withinour diversity, his findings supported the claim that the foodindustry can rely upon the horizontal segmentation as opposed to asingle best entity as was priory believed. This proved that foodcannot be universalized as the taste and preference are so diverse toreach an agreeable conclusion of that nature.
Thediscovery of the extra chunky sauce changed the Prego product line ina major way. This was made possible through the realization by Dr.Howard that the food industry thrives in variety rather than theperfect conventional product. Through his research, Howard discoveredthat there existed a huge customer base that had a high liking forthe extra chunky sauce but could not directly request for it since itwas unavailable in the market. This revelation was quickly turnedinto a business opportunity for the Campbell Soup Company, whichmoved to mass production of the extra chunky sauce in the early70s-80s. This facilitated its poor performance of its prior sauce toa market leader for ten years raising huge returns to the tune of 600million dollars.
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