The marketing strategies of Heinz - Assignment Example

?Univeristy & RESEARCH REPORT ON HEINZ (GLOBAL FOOD PRODUCER US BASED COMPANY) Table of Contents Introduction 3 Background of the Company 3 Definition of the Keyword or Phrase in the Task 4 The basic task required in this report is to find the appropriate research procedure and outlines its merits and de-merits. Further it is required to analyze the research by proper sampling procedure for accumulating substantial and real results. 4 External or in-house research 5 External Agency 5 Advantages of External Agency 5 Disadvantages of External Agency 5 In-House Research 6 Advantages of In-House Research 6 Disadvantages of In-House Research 6 Recommended Option 7 Research of Heinz 7 Benefit of Doing Internal Research in HEINZ 8 Sampling Process 8 Sample Collection Procedure 8 Internal Sampling 9 External Sampling 9 Sample Screening 9 Product Development 10 Sample Type Selected and Justification 10 Conclusion 10 Introduction I am the marketing executive at Heinz, Pennsylvania and I have been asked by the marketing manager to prepare a research report on the marketing strategies of Heinz and the consumer behavior in buying the products of the company. My research includes the complete industry analysis of Heinz along with the external agencies that influence the company in one way or the other. The rationale of my research is to locate out the problems with the existing marketing strategies of the company and indicate whether there are any niches in the market that are accessible to the company or whether the old and prevalent marketing system of the company is strong enough to fight the external influential factors and preserve the current position of the company in the long run. This report is designed to have an insight about an organization that is about to conduct some market research into consumer buying habits for the products and services that this company has for sale. Moreover, my research will address the obstacles in the way of the operations of Heinz and their competitors in order to clarify the current and future market standing of the company. Background of the Company Henry John Heinz, the founder of this company said that he learned from his parents’ idea of business which was, “Deal with the seller so justly that he will want to sell to you again.” He believed in fair play in the business and this quality of him had made him a successful businessman. He founded Heinz almost 150 years ago. Heinz was formed in Sharpsburg (a suburb of Pittsburgh), Pennsylvania, in 1869 by entrepreneur Henry John Heinz. To this day the company has become a global business dealer in the consumer food industry. Heinz is a $10.7 billion global company. The products of Heinz enjoy #1 or #2 market share in more than 50 countries. Every year the company sells 650 million bottles of its iconic Ketchup. Heinz's top 15 power brands are counted as more than two-thirds of its annual sales. There are about 35000 people that are employed by Heinz in almost 50 countries around the globe. Heinz is a liable corporate citizen dedicated to safe practices, environmental stewardship and giving back to the society (Heinz Company, Pittsburgh, 2012). Definition of the Keyword or Phrase in the Task The basic task required in this report is to find the appropriate research procedure and outlines its merits and de-merits. Further it is required to analyze the research by proper sampling procedure for accumulating substantial and real results. 1. Market Research This is the kind of research that takes into account all the factors which affect the general market operations of the company. 2. External Research The external research is the search help which is taken from consultants for conducting a proper market research which also entails dealing of the company from outside the company. 3. Market Strategies The market strategies of the company refer to the strategies and plans that a company implies to run its business smoothly. External or in-house research External Agency Many organizations take the assistance of external consultants in identifying, recommending and implementing change. There have been companies which have been successful while there are some which have failed after having consultancy from external consultants. First, there needs to be cooperation with the consultant from the entire top management and not merely the CEO or a few directors/managers. Next, there cannot be any information that is out of action from the external consultants. The solution to transformation is that complete information about the organization and its strengths and most prominently, its flaws must be visible. The other feature that makes organizations rely on external consultants is since these consultants have knowledge in dealing with companies in similar industries and hence can relate their expertise and experience to advise specific changes. Advantages of External Agency 1. External Agency have research skills which are industry specific 2. External Contractors have access to target sectors, hence they have underlying knowledge of best practices. 3. External Agency contractors brings objective viewpoint. 4. They are much quicker as compared to internal research. Disadvantages of External Agency 1. External Consultants have possible lack of control inside the organization in which they perform. 2. They have lack of knowledge about the product or service offered. 3. Agency dynamics can cause bias under specific circumstances. 4. The incurred cost of external agents is always high, hence it is a costly decision. In-House Research Market research is any prepared effort to assemble information about markets or customers. It is a very crucial constituent of business strategy. Market research gives important information to recognize and analyze the market need, size and competition. Hence if such research is conducted in house it is more favorable for a company as less secrets and confidential information is leaked out. Hence it gives a broad scope of designing any product which cannot be perceived by any other competitor company. Advantages of In-House Research 1. Marketing research captures the data needed to assist shape product features, production counts, customer-service needs and useful advertising strategies. 2. Working with research firms requires somewhat rigid guidelines and research requirements. 3. Hiring external firms for marketing research may be more expensive than using corporate employees. 4. Internal employees tap product, development and support staff for in-depth product knowledge, questions and advice. Disadvantages of In-House Research 1. An internal marketing division is exposed to employee beliefs about company offerings from the time products are conceptualized. 2. External marketing research firms may have admittance to proprietary software, research pools and expert analysis not available within the company. 3. External marketing firms have contacts in multiple geographic locations that can confine and conduct effective marketing research targeted at present or potential customers. 4. Centralized marketing departments have difficulties conducting research in all markets where their products may be placed. Recommended Option The recommended option for such a huge company is definitely having internal or in-house research department which can handle product development internally without having any external intervention. Moreover the recommended option for the research also takes into account the technological and political issues. The consumer behaviors and the purchasing habits of the consumers are greatly affected by the changes in the political and technological factors. We observe that the people tend to buy more of a thing or a commodity if it is well advertised. Moreover, if a commodity is available at the same price even in great political commotion, the consumers are most likely to buy that product showing loyalty to the specific brand. These issues need to be managed in a way that it should become profitable for the company and that the company keeps maintaining its position world over (Pederson, 2008 ). Research of Heinz Heinz is a global food producing US based company that has its operations in almost 50 countries of the world. Such a huge span of control of the company makes the company vulnerable to many of the external factors that play a vital role in shaping the on the whole marketing strategy of the company and its strategic business planning. The most commonly affecting factors that exert pressure on the company form all the four sides are cultural and economic factors, social factors, natural factors, technological factors and the political factors. The role of each of these factors is undertaken at an eye view so that the overall company positioning can be made (Debbie Foster, 2006 ). The research method which is commonly applied at Heinz is In-House research. The process of new product development initiates with an idea, or a perceived need in the market. Ideas or needs arise from a variety of sources including: marketing for our own products supermarket brands restaurant chains The Product Development/Research and Development Department are then communicated about the project. The brief outlines the product or products required along with pack size and type, units per case, target cost and launch date. Benefit of Doing Internal Research in HEINZ 1. Research is performed by in-house personnel 2. It allows secure flow of information within organization. 3. This model allows instant access to information 4. This is a less expensive approach as compared to external agency research 5. Timely submission of reports due to smooth availability of information. Sampling Process Sample Collection Procedure The strategy which Heinz adopts for collecting samples is based on both in-house and external samples. Various activities and procedures are defined in this regard to collect reliable data. If any research had to cover a large area therefore the sampling can be done manually. The agents of the company took samples of people from many different types of vicinity in a large number so as to find the combined effect of the consumer behavior. The procedure can take about four months to complete and another month will be subjected for samples testing and verification. Internal Sampling By utilizing internal sources the business can discover new ideas through formal research and development. It can select the brains of its executives, scientists, engineers, manufacturing staff and sales people. Some companies have designed winning entrepreneurial programs that support employees to think up and increase new product ideas. External Sampling Good new product idea also comes from watching and listening to customers. The company can examine customer questions and complaints to unearth new products that better resolve consumer problems Company engineers or salespeople can congregate with and work. Alongside customers to get suggestions and ideas the Company can conduct surveys or focus groups to learn about consumer needs and wants. Sample Screening The search for new-product ideas should be methodical rather than random. Otherwise few new ideas will shell and many good ideas will pop and die. Top management can avoid these problems by installing an idea management system where all such samples can be collected and analyzed. This process allows the flow of new ideas to a central point where they can be composed, reviewed and evaluated The purpose of sample screening is to have a large number of ideas. The reason of the succeeding stages is to decrease that number. The first idea-reducing phase is idea screening, which helps spot good ideas and drop poor ones as soon as probable. Product development costs rise to a great extent in later Stages, so the company wants to go ahead only with the product ideas that will turn into lucrative products after proper sampling. Product Development For every new product concepts the product may have existed only as a word a liquefy or perhaps a basic mock-up. If the product conception passes the business test it moves into product development phase. Here R&D develops the product perception into a physical product. The product advancement step however now calls for a huge jump in investment. It will show whether the product idea can be transformed into a workable product. The R&D department will increase and test one or more physical versions of the product concept R&D hopes to design a prototype that will please and stimulate consumers and that can be fashioned quickly aid at budgeted costs. Developing a successful prototype can take days, weeks, months, or even years. Often products undergo thorough tests to make sure that they execute safely and efficiently, or that consumers will find value in them. Sample Type Selected and Justification The samples were large therefore the type of sampling that we used was the stratified random sampling. The stratifications were made on the foundation of the age and gender of the people. This method of sampling made the collection and interpretation of the data very easy and helped the researchers to take out the findings in a very appreciable manner. The different categories made the sampling order very simple and comprehendible. Conclusion The findings indicated that there was a little lack in some of the areas covering the political and the technological uplift for the company. Heinz, however, is a company founded by a high spirited man and he has circulated his high spirit into the entire bloodline of the company. Therefore, it is quite possible that the company is going to take over these minor obstacles. It might not be wrong if I say that Heinz is going to make strategies to get out of this turmoil in near future and maintain its steady growth pattern. Heinz has always turned out with great results and have always been able to rank higher, this is all because of their internal research and marketing which is strong and efficient which leads them towards designing appropriate strategies. References Debbie Foster, J. K. (2006 ). H. J. Heinz Company. Arcadia Publishing. Heinz Company, Pittsburgh. (2012). Heinz. Retrieved from Heinz: http://www.heinz.com/ Isobel Doole, R. L. (2004 ). International Marketing Strategy: Analysis, Development and Implementation. Thomson Learning. Michael A. Bourlakis, P. W. (2004). Food supply chain management. John Wiley & Sons. Pederson, J. P. (2008 ). International Directory of Company Histories. Gale. Saul Estrin, K. M. (2004 ). Investment strategies in emerging markets. Edward Elgar Publishing. Urip, S. (2010 ). CSR Strategies: Corporate Social Responsibility for a Competitive Edge in Emerging Markets. John Wiley and Sons. Read More