Published by MBA Skool Team, Last Updated: December 23, 2017
Marketing Strategy of Heritage Foods 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 Heritage Foods marketing mix, help the brand succeed.
Heritage Foods marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Heritage Foods Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Heritage Foods Product Strategy:
The product strategy and mix in Heritage Foods marketing strategy can be explained as follows:
Heritage Foods is one of the leading FMCG companies specializing in food & beverages. The market in which Heritage Foods is present is filled with competitors with similar products. To face the competition Heritage Foods have diversified their product portfolio in its marketing mix which now has a wide range of products like dairy products, milk and beverages. There is toned milk which is obtained from buffaloes and is pasteurized. Double toned milk is from cows and is pasteurized as well. Full cream milk is one type which can be used for home-made sweets and for curds and savories. There is also a thick milk called standardized milk available. Skim milk is also available which is low on fat. Golden cow milk is processed cow’s milk in the pure form. All these types are available in 500ml and 1 lit packs. Other dairy products like cheese, butter, curd, ice-cream, milkshakes and buttermilk are also sold by Heritage Foods. It also has honey, jams, mustard sauce, mayonnaise, idli batter, bread, upma mix, green tea, coffee, bottled water and other types of frozen foods in its product portfolio.
Image: company website
Heritage Foods Price/Pricing Strategy:
Below is the pricing strategy in Heritage Foods marketing strategy:
Heritage Foods has to compete with several brands and companies in the same market segment.
The dairy market is a highly competitive one with so many players. Consumers have a wide range of options to choose from if they don’t get the product of their choice. This makes the price market driven and hence the companies in this market are price takers as the prices that they set are dependent on their competitors. Therefore, Heritage Foods too go with the competitive pricing strategy in its marketing mix. The price of 500 ml of milk is Rs.35 whereas for 1 lit it is Rs.66. Tetra packs cost slightly higher because of the packaging. The frozen foods are priced higher as they target the upper-middle class. Frozen pizza pack comes for Rs.250 which has two big pizza slices. The upma mix comes for Rs.30 for 200gm pack. Other breakfast mixes come for similar prices. Cheese comes for Rs.112 for 200gm. Heritage Foods prices are decided based on competitors so as to be competitive in the market.
Heritage Foods Place & Distribution Strategy:
Following is the distribution strategy in the Heritage Foods marketing mix:
For Heritage Foods to thrive in the hyper competitive space it needs a strong distribution network and channel flows. It needs to maintain good relationship with the farmers as it forms a part of its vision. It has been successful because it has worked on the above aspects. Heritage Foods’ primary milk procurement base is in Chittoor district of Andhra Pradesh. There is a cross bred cow population here which produces high yield milk of the top quality. They also have many other districts like this where they take full advantage of the milk produce. The milk and other dairy products can be bought from local dairy stores. They can also be purchased in big super markets. Heritage Foods brand’s presence is mainly in south India and hence its sales are driven by that region. It has now started to enter the northern cities and will slowly steadily start cementing its position in that market.
The products can also be bought online on stores like Big Basket and Godrej Nature Fresh.
Heritage Foods Promotion & Advertising Strategy:
The promotional and advertising strategy in the Heritage Foods marketing strategy is as follows:
Heritage foods has competitors like Amul and Nestle which promote their products aggressively and hence have a wider reach and awareness. To tackle the problem of awareness Heritage Foods have started promotions on social media platforms. They are present on Facebook where they promote their practices of getting the produce from the farmers. They also promote the offers which are available on ecommerce platforms through Facebook. They are also present on Twitter where they talk about the various schemes that they are having and also talk about the farmers and their contributions. Heritage Foods has its own website as it is essential to have one in this digital age where they have product descriptions of all their products. They also give a full account of their CSR activities which create a strong relationship with the online traffic. They also give information on their site about the stock exchange to the shareholders so that the shareholders can have a fair idea about the future. The company does advertise through channels like TV and radio. Neither does it go for print media like magazines as it wants to cut down on its expenses and since the brand is already known in the south with fewer competitors they don’t need to promote there much. For northern cities they might resort to these channels. Thus this gives an insight on Heritage Foods marketing mix.
About Heritage Foods:
Heritage Foods is an Indian company which is into producing milk and dairy products. They are also into renewable energy. Heritage Foods was founded by Mr. Nara Chandrababu Naidu in the year 1992 and has since stayed in business growing rapidly for the last 25 years. For the financial year of 2016-17 it recorded a turnover of Rs.2600+ crores. Heritage Foods has also been listed on the NSE and BSE. It is headquartered in Hyderabad and has its presence in 15 states in India and has 3000 plus employees.
It faces stiff competition from top players like Amul, Nestle, Britannia etc. In spite of all these challenges the Heritage Foods company thrives to grow with its strong vision of delighting homes with fresh products and empowering the farmers.
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