The Effect of Advertising Slogan Changes on the Market Value of Firms

Lynette Knowles Mathur and Ike Mathur

In September 1993, Campbell announced a slogan change from the familiar, 67 year-old slogan 'M'm! M'm! Good!' to its new slogan 'Never Underestimate the Power of Soup.' The initial reactions to the Campbell slogan change were mixed. For example, Peter J. Harleman, executive vice president of the consulting firm Landor Associates, felt that the slogan change was a mistake and predicted that it would not last very long (Shapiro, 1993). On the other hand, Leo J. Shapiro and Associates chief executive George Rosenbaum felt that 'It's a brilliant slogan' (Shapiro, 1993). Goldman, Sachs food analyst Nomi Ghez, while not siding with either viewpoint on the Campbell slogan change, does point out the financial necessity for Campbell 'to make soup relevant to today's lifestyle' (Shapiro, 1993).