Published by MBA Skool Team, Last Updated: March 04, 2017
Marketing Strategy of Heinz analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Heinz marketing mix, help the brand succeed in the market.
Heinz marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Heinz Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Heinz marketing strategy can be explained as follows:
Heinz is a leading food manufacturing brand. The product strategy in the marketing mix of Heinz is discussed as follows. Heinz popular brands include Complan having variants for Growth, Memory and Nutrigo. The above mentioned products are developed focusing children in mind. Other products include Glucon D, Heinz Tomato Ketchup, Kraft Cheese, Nycil Prickly heat powder, Sampriti. In international product category, products include such as Mayonnaise, Vinegar and Sauces. The company’s focus is to provide quality products to its customers maintaining the same hygiene and quality standards across its product portfolio. Heinz ketchup in India is available in 2 varieties i.e. Standard Tomato ketchup and Tomato chilli sauce. It creates alternatives in taste as per the regional interpretation of the product. Heinz ABC Indonesia is considered one of the largest Heinz’s business in Asia with leading products such as Syrup ABC, Sambal ABC [Chilli Sauce], and Kecap ABC [Sweet Soya Sauce]. The products manufactured by Heinz go through stringent quality checks and is FSSAI approved in India.
Heinz Price/Pricing Strategy:
Below is the pricing strategy in Heinz marketing strategy:
Heinz follows competitive pricing strategy, keeping in mind the target consumer.
The pricing decisions are taken into consideration to adjust to economic conditions and observing consumer habits. Heinz ketchup continues to perform better with increased market share in recent times. Heinz global market share in snacks had decreased over the years but lately it has stabilised. To increase sales Heinz had also produced bottles with upside down shape and started promoting their large size bottles at major retail outlets. Hence, this gives and overview in the marketing mix pricing strategy of Heinz. It faces competition from Kissan, Nestle in sauce category hence the pricing is decided based on the competitors move.
Heinz Place & Distribution Strategy:
Following is the distribution strategy in the Heinz marketing mix:
Heinz products are available worldwide through an excellent distribution system. Kraft foods and Heinz had merged to accelerate its expansion globally and improve growth. The company has efficient supply chain in place hence distribution of goods has considerably improved over the years. Heinz has its presence in global market including countries like United States, Australia, Canada, Indonesia, Netherlands, United Kingdom, India and China. Heinz China focused on infant foods and sauces and Heinz Hong Kong Limited is having its operation in Hong Kong, China and Taiwan.
In UK, Heinz is the leading seller of Heinz Baked Beans.
Heinz Promotion & Advertising Strategy:
The promotional and advertising strategy in the Heinz marketing strategy is as follows:
Heinz primary technique to engage customers was advertising through TV advertisements but has eventually used direct marketing techniques to build a better stronger and long term relationship with its customers. With the advent of the digital age and technological advancement, it is focusing on targeting individual customers. Heinz had launched its food advertising campaign “Insist on Heinz” as the slogan. It has significantly invested in its advertising campaigns in response to increased competition. Heinz had also formulated “Group 57” a team of culinary experts that provides new ideas to customers. To promote health benefits of lycopene in tomatoes, Heinz invested in consumer education. The positive brand image has helped Heinz to retain customer loyalty. Hence, this covers the entire marketing mix of Heinz.
The H.J. Heinz Company was founded by Henry John Heinz in 1869 and is headquartered in Pittsburgh, Pennsylvania. Heinz is an American food processing company and is considered a global leader in food and nutrition. It is also the fifth largest food and beverage company in the world. It has its presence in more than 40 countries across the world. Major brands include Kraft, Heinz, ABC, Classico, Capri Sun, Kool – Aid, Maxwell House and many more. The major brands in India includes Heinz Tomato Ketchup, Nycil, Complan, Glucon D, Sampriti, Craft Cheese. The company has its values imbibed in the following context i.e. Consumer First, Innovation, Integrity, Ownership and Quality. Mr. Bernardo Hees is the chief executive officer.
Heinz was ranked number 1 in Ketchup in US that had a market share of over 50%. Its international presence includes in countries like United States, Australia, Canada, India, Indonesia, Netherlands, United Kingdom and China.
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