Heinz Company Essay Example
Heinz Company Essay Example

Heinz Company Essay Example

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  • Pages: 8 (1988 words)
  • Published: May 12, 2018
  • Type: Case Study
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“Heinz is looking for Attention” I. Problem Statement Heinz Company communicates through numerous messages running in prints and broadcast media as well as online; it also uses in-store and in restaurant communications to reinforce brand image and loyalty, Heinz Company has also sponsored Top This TV contests in which consumers submit homemade 30-second commercials featuring Heinz ketchup, which are then posted on YouTube for viewing ad voting.

Media coverage and word-of-mouth buzz spread the contest message quickly and kept people talking about the homemade commercials even after the voting was over and the winners had been announced. Heinz Company also mounted a contest to gain community attention and involve U. S. students and teachers with the brand and its communications. The Ketchup Creativity contest invited students in grade 1 through 12 to submit artworks for Heinz single-serve pa

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ckets. From more than 15000 entries, the judges choose 12 winners to have their artwork displayed on millions of Heinz ketchup packets.

What strategies that Heinz Company can implement in order to attract attention of the consumer (not just in U. S. & Europe but also in other continents) and also in order for the consumers to patronize Heinz products?

Objectives

To be able to know what are the consumer’s perception to the Heinz products. 2. To be able to know what kind of “Product Positioning” did Heinz Company used to their products. To be able to establish an action that can help to the Heinz Company to attract consumer’s attention and also in order for the consumers to patronize Heinz products.

ACA’s

Heinz Company should have “Product Positioning” for the future growth. Pros: The essence o

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successful marketing is the image that a product has in the mind of the consumer. The core effective positioning is a unique position that the product occupies in the mind of the consumer. So this means that if Heinz Company can position their products there’s a big success that they can get the attentions of the consumers not just on U. S. & Europe but also in other continents.

Positioning strategy is the essence of the marketing mix; it complements the company’s definition of the competition, its segmentation strategy, and its selection of target markets. Heinz Company also develops a strategy for the other continents like in the Asian countries in order for the Heinz Company to gain more consumers, profits, and in order for the company to be known globally. If Heinz Company can establish a positive brand image it will leads to consumers loyalty, positive beliefs about brand value, and a willingness to search for the brand.

A positive brand image also promotes consumer interest in future brand promotions and inoculates consumers against competitor’s marketing activities. Cons: In order to implement “Product Positioning”; it takes time to plan and decide what is the position in a certain product of Heinz. 2. Heinz Company should promote health benefits in their products with the use of Media Advertisement. Pros: Using media advertisement in promoting health benefits of the products of Heinz Company because health claims on packages and in advertising can be an effective way of increasing consumer awareness of a food product’s health benefits.

Alternatives such as websites print and electronic resources and partnerships can also be used to enhance consumer awareness of the

health benefits of a food product and potentially reach a wider target audience. Such nutrition communication programs can build on existing health claims, or can operate effectively without a claim or without mentioning an existing claim. Cons: However, promoting health benefits in Heinz Products; it can require significant time and resources to substantiate a new health claim, and the long-term impact on market share is unknown.

Aside from the time and resources required to obtain approval for a new health claim, the amount of information that can be presented on a label or in advertising is limited. Activities such as websites and other resources allow organizations to provide scientific evidence and practical information to their target audience. Evidence is lacking on the impact of these activities versus a health claim to increase awareness, knowledge or behaviour change. 3. Heinz Company should use packaging that can help the environment.

Pros: Using a packaging that can help the environment can have a big impression to the consumers. The consumers will think the Heinz Company is aware and concern to our “Mother Earth. ” They can also save money by using this strategy. Heinz Company will have introduced a new lighter, easy-open can for products such as our Heinz soups. These lighter cans also reduce the overall weight of products being transported, which in turn leads to improved fuel efficiency. Heinz is now making design changes to reduce the weight and thickness of can bodies.

Since water is vital to growing and processing tomatoes and other crops, Heinz believes it is important to conserve this essential resource for future generations and to help guarantee that we have the

water we need to operate well into the future. Energy consumption is a major concern at Heinz. By addressing this issue, Heinz can mitigate the financial impacts of rising energy costs, reduce greenhouse gas emissions and eliminate inefficiencies in our factories and offices around the world. Through packaging and process innovations like those in the U.K. , Heinz can make a world of difference for the global environment, one product at a time. Cons:  In this strategy Heinz Company focus in packaging but not on product to attract attention of the consumers. Heinz may use this strategy but it is not necessarily to focus on packaging in order to appeal to the consumers.

SWOT Analysis

Strength

  • Heinz is recognized as the premier ketchup maker in the world.
  • Heinz Company makes several different types of sauces and they have expanded to the prepared food and pet food markets as well. The Heinz Company has expanded their business internationally.
  • Heinz Company introduces new products and packaging; it gains more shelf space, attracts attention, and highlights each item’s appeal to the senses. Its E-Z-Squirt Ketchup, in vivid, child-friendly colors like green, purple, and blue, was a standout on store shelves. Its organic ketchup come in upside-down squeeze bottle with a green lid that sets the product apart while linking it to the category of natural and organic foods. Heinz Company focuses on research and development that is the reason why the products of Heinz are constantly evolving.
  • Heinz Company communicates through numerous messages running in prints and broadcast media as well as online; it also uses in-store and in restaurant communications to reinforce brand image and loyalty, Heinz

Company has also sponsored Top This TV contests in which consumers submit homemade 30-second commercials featuring Heinz ketchup, which are then posted on YouTube for viewing ad voting.

  • Heinz Company also mounted a contest to gain community attention and involve U. S. students and teachers with the brand and its communications.
  • Heinz Company has a number of strengths and one of them is their products, a number of consumers are using the products of Heinz therefore product loyalty is one of the strengths.
  • Weaknesses

    Heinz Company has had little success with developing new products.

    Heinz products appeals to consumer’s taste buds in one country may not appeal in those in another country. Heinz Company has so many food products vying for attention in advertising media and on supermarket shelves in order that their products will be notice by the consumer but the problem with so many food products in the advertisement make the consumer confused.

    Most consumers do not easily recall the products of Heinz particularly the new products which is not good for the business, especially if the Company is launching new products in the market. Because the products cannot be easily recalled by consumers the Company also has absence of strong marketing.

    Opportunities

    • Organizations must continue to grow in the market. In the case of Heinz, the Company must utilize the opportunities in its surroundings such as transformation in technology, social patterns, government policies and many more.
    • Heinz Company introduces new products and packaging; it gains more shelf space, attracts attention, and highlights each item’s appeal to the senses. Its E-Z-Squirt Ketchup, in vivid, child-friendly colors like green, purple, and blue, was a

    standout on store shelves.

  • Its organic ketchup come in upside-down squeeze bottle with a green lid that sets the product apart while linking it to the category of natural and organic foods.
  • Heinz Company communicates through numerous messages running in prints and broadcast media as well as online; it also uses in-store and in restaurant communications to reinforce brand image and loyalty, Heinz Company has also sponsored Top This TV contests in which consumers submit homemade 30-second commercials featuring Heinz ketchup, which are then posted on YouTube for viewing ad voting.
  • Heinz Company also mounted a contest to gain community attention and involve U. S. students and teachers with the brand and its communications.
  • The existing trends can also be a good source of opportunity, with the changing trends of going organic Heinz Company could use it as an opportunity to develop organic food products. Since one of the most important products of the company is tomato, Heinz Company is investing on research and development in this particular food product in order to determine the anti-oxidant effects of lycopene and produce tomato-based products marketed on the well-being and health of the consumers.
  • Threats

    Organisations do not like threats in their business but companies whether big or small cannot stop it and must face it. Companies must be prepared to face those threats in order to create measures that will counter them. In the case of Heinz Company the threats include the increasing trend of eating out, consumers do not usually have time to prepare their own food therefore they prefer eating or dining out which threatens the products of the Heinz that are in the

    shelves of the supermarkets.

    Recommendation

    We recommend alternative course of action number one (1) in the case problem “What strategies that Heinz Company can implement in order to attract attention of the consumer (not just in U. S. & Europe but also in other continents) and also in order for the consumers to patronize Heinz products? ” In order to answer this, Heinz Company must have “Product Positioning. ” Positioning is the essence of successful marketing because if Heinz Company can come up with a creative and effective positioning they can establish a positive brand that occupies the mind of the consumers.

    Positioning strategy is the essence of the marketing mix; it complements the company’s definition of the competition, its segmentation strategy, and its selection of target markets. This means that if Heinz Company would use this strategy, they can make marketing segmentation with their products and they can also select their target markets. Example, In a Muslim country such as Iraq, Iran and etc they need to make a “HALAL Products” in order to suits for the Muslim people.

    Heinz Company must position their product especially when they will enter internationally. They need to make a product that suits the taste of what country they will market their products. It also best thing to position their product through “benefits” of their products rather than their products physical features. The benefits featured in a product’s positioning must reflect attributes that are important to and congruent with the perception of the targeted consumer segment.

    The result of successful positioning strategy is a distinctive brand image on which consumers rely in the making product choices. A positive

    brand image also leads to consumer loyalty, positive beliefs about brand value, and willingness to search for the brand. A positive brand image also promotes consumer interest in future brand promotions and inoculates consumers against competitor’s marketing activities. An advertiser’s positioning strategy affects consumer beliefs about its brand’s attributes and the prices consumer are willing to pay.

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