Business Report Heinz
EVALUATION OF THE KEY MARKETING DECISIONS
IN THE FMCG SECTOR
MARKETING REPORT ON HEINZ MARKETING STRATEGY
FOR THE NEW KETCHUP WITH JALAPEÑOS
Eleni SKARVELI
25/02/2013
2
EXECUTIVE SUMMARY
Aim
The aim of this business report is to present a study on Heinz marketing strategy for a new product HEINZ TOMATO KETCHUP WITH JALAPEÑOS. The product will be launched for the first time in the UK market, as an extension of Heinz Tomato
Ketchup icon brand.
Methodology
In order to evaluate the key strategic and tactical marketing areas, an analysis of the current marketing practices of Heinz will be presented as well as the opportunities for competitive advantage in ketchup industry, within the UK market. The two existing products that will be used is Hellmann’s Ketchup, a brand of Unilever Food Solutions and Tesco, as an example of B’ brands products.
Phase 1 - Key Findings
Heinz is one of the world’s major global companies operating in 200 countries, offering more than 5,700 product varieties, with No 1 and No 2 branded businesses in more than 50 world-wide markets. Nowhere in the world is the Heinz brand as strong as it is in the UK and Ireland. After an evaluation of Heinz, its products, strategies, international involvement, the market and the competition, the analysis indicated that a new product should be developed based on high level of consumer ’s confidence to the brand.
Phase 2 - Key Findings
Evaluating the market overview, t wo products were compared for their current marketing practices and their communication strategies. Heinz is following a uniform global marketing presence for Tomato Ketchup as well as Hellman’s Ketchup. On the contrary the budget or 'B ' Brands are not focusing on marketing but on pricing.
Phase 3 - Key Findings
Following market research, it seems that the UK condiments market recorded growth.
Heinz should meet consumer’s changing needs and introduce a product with an ingredient – Jalapeňos - that is
IN THE FMCG SECTOR
MARKETING REPORT ON HEINZ MARKETING STRATEGY
FOR THE NEW KETCHUP WITH JALAPEÑOS
Eleni SKARVELI
25/02/2013
2
EXECUTIVE SUMMARY
Aim
The aim of this business report is to present a study on Heinz marketing strategy for a new product HEINZ TOMATO KETCHUP WITH JALAPEÑOS. The product will be launched for the first time in the UK market, as an extension of Heinz Tomato
Ketchup icon brand.
Methodology
In order to evaluate the key strategic and tactical marketing areas, an analysis of the current marketing practices of Heinz will be presented as well as the opportunities for competitive advantage in ketchup industry, within the UK market. The two existing products that will be used is Hellmann’s Ketchup, a brand of Unilever Food Solutions and Tesco, as an example of B’ brands products.
Phase 1 - Key Findings
Heinz is one of the world’s major global companies operating in 200 countries, offering more than 5,700 product varieties, with No 1 and No 2 branded businesses in more than 50 world-wide markets. Nowhere in the world is the Heinz brand as strong as it is in the UK and Ireland. After an evaluation of Heinz, its products, strategies, international involvement, the market and the competition, the analysis indicated that a new product should be developed based on high level of consumer ’s confidence to the brand.
Phase 2 - Key Findings
Evaluating the market overview, t wo products were compared for their current marketing practices and their communication strategies. Heinz is following a uniform global marketing presence for Tomato Ketchup as well as Hellman’s Ketchup. On the contrary the budget or 'B ' Brands are not focusing on marketing but on pricing.
Phase 3 - Key Findings
Following market research, it seems that the UK condiments market recorded growth.
Heinz should meet consumer’s changing needs and introduce a product with an ingredient – Jalapeňos - that is
Bibliography: public” (Kotler, 2009). This statement confirms the complexity of the market but also the importance to focus on the central idea of marketing: “A matching between a company’s capabilities and the wants of customers in order to achieve the objectives of both parties” (Mc Donald, 2011). dynamic but risky, complex and cluttered” (D.A. Aaker & D. McLoughlin, 2010). Heinz is well placed to meet consumers reassurance for quality based on its brand heritage marketing can block the way to goals established by the strategic p lan” (S.C. Jain, 2000) the customer (D.A. Aaker & D. McLoughlin, 2010). Based on the formation of marketing strategy, Heinz requires to define the follow three decisions: market position. In the USA, it ranks first in ketchup with a market share in excess of 50% (Heinz annual report, 2012). Figure 1. Heinz around the world map Note: Heinz around the world (as of December 2011), budgets of consumers (Heinz Company Annual Report, 2012). growth since 2006 and 32.000 employees worldwide (Heinz annual report, 2012, table 2) Table 1, Fiscal 2012 Results Note: Heinz annual report (2012)