Marketing Communication Plan for H.J. Heinz Company - Case Study Example

Marketing communication plan Introduction H.J. Heinz Company (HNZ) is a producer and seller of branded processed food products such as ketchup, condiments, sauces, soups, snacks and food for little children. The organization intends to develop a marketing communication plan to assist in the marketing of Dadie yankies sauce. The organization produces major products such as Heinz, Ore-Ida, Boston Market and Plasmon. The firm operates in North America, Europe, the Middle East and the Asian Pacific. It has its headquarters in Pittsburgh, Pennsylvania and has employee population 32,500 as of April 30, 2008. The firm recorded revenues of $10,070 million during the financial year 2008 a raise of 11.9% over the previous year. The operating benefits of the firm were $1,569 million during the financial year 2008 a rise of 8.5% over 2007. The net profit for the financial year 2008 was $844.9 million, an increase of 7.5% over 2007. The only real vision statement Heinz provides that every household should have Dadie yankies sauce on their table. This vision statement strengthens the notion that Heinz only markets and produces ketchup. It becomes therefore unnecessary for Heinz to further identify itself with ketchup. As a result the market for ketchup is unlikely to grow and expand further than it already is. Because Heinz is associated with ketchup at the moment and customers know that the product is of high quality, they should thus ensure that customers get used to other products as well like the sauce. The effort now should be in the marketing of other products such as Dadie yankies sauce to the customers. Those who believe Heinz ketchup is of the greatest quality would be anxious to purchase other commodities produced by the company with the assumption that they are of the same quality. They do not require a mission statement to believe that. One that recognizes them with the broad variety of commodities the company produces (Kotabe, 2004). An analysis of the company’s SWOT analysis is an important tool in the formulation of the marketing communication plan. Strengths The company is recognized and known as the chief producer of some brands such as ketchup and sauce and thus marketing of the products is not a difficult task. The Heinz Corporation has integrated itself both concentrically and horizontally. The company produces various types of sauces and it has expanded the scale of production of ready foods, Dadie yankies sauce and pet food thus increasing its share of the market in the respective areas. The Heinz Corporation has stretched its operations even in the global market. This has resulted to an increase in sales of Dadie yankies sauce and at the same time made organization less susceptible to economic situations in any nation. Heinz has also invested in the organization’s food associate market. It slashes its Weight Watchers sector because it does not adhere to a similar structure as other divisions (Eric, 2001). Weaknesses Analysis of the weakness of the company is also significant in the development of an appropriate marketing communication plan. The organization has for a long time failed in developing proper marketing communication plans to assist in the marketing of Dadie yankies sauce. It is through the development of proper marketing plans that the organization will be able to improve on its areas of weaknesses in order to attract a large client base. One of the greatest weaknesses of the firm is it failure in the development of new products. The organization depends largely on the Ketchup market to make any developments or expansions in the entire market. It is therefore only occupied with food related commodities. This implies that Heinz is not in a position to invest in different varieties of products especially in the production of new varieties of sauces. Slashing the Weight Watcher’s sector as a portion of the commitment plan could have been an error in the progress of the company. The company’s international operations render the company susceptible to growth of the U.S dollar divisions (Eric, 2001). Opportunities The Heinz organization has a great opportunity in marketing the Dadie yankies sauce in large scale and also transverse in other areas where the product has not taken root. It also has an opportunity in getting involved in the diet fad. The trend is in line with the Adkins Diet. The firm can create meals that comply with their production details. Maybe investing in the Star-Kist tuna line and producing creative packaged foods with the tuna could be people’s favorite divisions (Eric, 2001). Threats The threat of off product or store brand condiments is very important to Heinz. The increasing popularity of salsa and similar worldwide condiments is an issue which Heinz takes into consideration. These are products that are a threat to Dadie yankies sauce in terms of competition. The emerging trend of dieting and losing weight can also be a threat to the entire operations of the firm since the consumption of products such as Dadie yankies sauce will be restricted. As the populations tend to consume healthier foods, they may utilize less Bagel Bites and Boston Market gravy. The growth of the American dollar and economy is a major threat to realization of the set targets in terms of profits. Heinz is very vulnerable to international food regulations divisions (Eric, 2001). Existing market plan Heinz being the UK’s most preferred food and drinks brand has a marketing plan in place and is set to run for five years. The program has been established on the basis of the emotional connection that the organization’s brand holds with consumers and is designed to increase the volume of sales of the company’s products. This marketing plan was established targeting at increasing the sale of Dadie yankies sauce to consumers. The marketing campaign is based on multi-media, umbrella brand campaign intended to create a strong connection between the consumers and the Dadie yankies sauce. The marketing campaign which was launched in 2009 is expected to run through the year 2010 or beyond and is worth £5 million. The campaign features innovative consumer facing brand activity on television, public relations and the internet. These will be strengthened by intensive in-store promotion and cross category advertisement activities (Schechter, 2009). Promotion activities for 2010 As a leading global food and nutritional organization, H.J Heinz Company has a responsibility of assisting its wide scale of consumers in making informed and healthy decisions about diet and lifestyle and more so in regard to consumption of Heinz sauce. Heinz will establish guidelines for all of its units and affiliates throughout the globe in relation to the Dadie yankies sauce, including the application of public relations campaigns, consumer education initiatives and the procurement of advertising time and space in the course of television and/or radio broadcasts, in newspapers, in-store advertisement, magazines and periodicals or in any other advertisement toll such as the internet or electronic media. These forms of media provide a direct communication to consumers either in large groups or in small target groups (segments) of the population which include the young children, the youth as well as adults and parents. It is necessary for the Company’s communication to replicate Heinz’s dedication to family-oriented principles and its long-standing dedication to appropriate nutrition and consumer wellbeing. Heinz must communicate these dedications via responsible advertising and messages which uphold the healthful consumption of the organization’s commodities (Fall, 2004). The marketing communication plan The marketing communication plan will involve consumer education, communication, public relations, marketing and advertisement which can broadly be defined as any activity undertaken by an organization on behalf of its product to enlighten the consumers, customers or clients of any age of the benefits of Dadie yankies sauce through the media. This involves communications in the forms of purchased advertising in any form of media including although not restricted to television, radio, newspapers, periodicals, billboards or even electronic media, news releases, broadcast, public relations promotions, brochures, books, booklets, videos and films, Web sites, on-pack promotions, interactive software, sweepstakes and payments commodities (Fall, 2004). Objectives of the marketing communication plan To make Heinz sauce and other products be known to the public and increase the customer base. Assist the customers in choosing the Dadie yankies sauce as an appropriate product for their domestic use. Increase the share of the market of the Dadie yankies sauce in the global market. Dadie yankies sauce marketing strategy All communications must be honest, frank and not deceptive and adhere to accepted principles of fair competition and appropriate business practice. And be created with a consideration of social responsibility. All communication from the company to its customers should consider the level of education, acquaintance and maturity of its listeners for which it was created. Since young children might have difficult in comprehending the variations between reality and imagination, care must be taken in ensuring that the language used is fair and flank and delivered in an accurate manner to cater for them. Advertisements should be created in such a way that they hit the targeted groups. The organization will for instance ensure that in its marketing campaign that the Dadie yankies sauce is advertised to the right people. For the sauce, the parents remain the primary focus since they influence the consumption of the product in their children (Petley, 2002). The marketing communication plan ethics The communications media will ensure that they are directed entirely to the preschool children. Heinz brand names and trademarks will not be licensed on Dadie yankies sauce which is intended for the preschool children only but rather across the entire population of the customers. Any advertisement in school programs will strictly be educational and not commercial in nature but only of a public service form. They should strengthen healthy standards of living and health dietary patterns of living and promote knowledge of nutrition and cooking patterns. Restricted vending machine contracts with educational institutions that need the promotion of Heinz brands or commodities should not be carried out. Portrayals or support of behavior that is unsuitable to young people such as violence or sexuality or that is terrifying to children should also not be involved. Creation of clubs should not communicated in a manner that leads to either the children or young people regarding that they are joining are exclusively limited to the purchase of the specified drugs (Petley, 2002). Television Advertisement One of the strong components of the advertisement campaign will be the use of television advertisement. The Dadie yankies sauce will be advertised on the television which is one of the most popular advertising channels. The television commercials placed should not appear in any particular program or any episode of an advert that is blatantly violent, immoral such as sexual content, overly graphic or blatant in displaying anti-social behavior and drug abuse which arouses imitation. Advertisement agencies should be instructed to pre-screen any program or a single scene in a program series which through previous experience of content or past performance (Petley, 2002). Interactive media Data will be collected through Web Sites and use the information to create interactive media with clear disclosure. Data collection which include personal information like screen names and e-mail addresses from the youth will be collected to make follow ups though with their parent’s consent. There are interactive games or other Web sites that gather information on users in non-active means. Through the interactive media the company will be able to reach many consumers of the Heinz sauce commodities (Fall, 2004). Conclusion Though there is not much potential for the organization to transform the entire production of the Dadie yankies sauce, the growth and financial benefits can be enhanced by reducing the running expenses and laying down efficiency strategies. One way the firm could cut down on its operations cost is by adopting the vertical integration criteria. This would be most appropriate if does not own most of its suppliers. Since the organization has already invested in diversification of products, it should now focus on conglomerate diversification. The marketing communication plan that the organization adopted saw an increase of financial figures in the financial years starting from 2003. The company realized an increase in sales of 260 million in the year 2003 which was partly contributed by Dadie yankies sauce. It was noted that the growth could be attributed to growth of the firm in international markets and noteworthy products responsible for development were tuna and pet food markets. A merger with Del-Monte through a joint venture was launched and considered as an opportunity that enabled Heinz to lower dept and strengthen some of its products I the international market. Heinz was able to reduce its net debt by 1.3 billion in 2003. As a result of these growths in performance the organization’s stockholder return has been raised by 17% (Graydon, 2003). Bibliography Cook, G, 2001, The Discourse of Advertising, 2nd edition. Routledge, London. Eric, L, 2001, The Want Makers, Viking, New York. Fall, L, 2004, Advertising: A Cultural Economy, Thousand Oaks, CA: Sage Publications Inc., Graydon, S, 2003, Made You Look - How Advertising Works and Why You Should Know, Toronto: Annick Press "Heinz pulls mayonnaise ad over gay kiss furore". The Times. London. 30th April 30, 2010 H.J. Heinz Company (HNZ) annual SEC income statement filing via Wikinvest. 30th April 30, 2010. < http://www.wikinvest.com/stock/H.J._Heinz_Company_%28HNZ%29/Data/Inc me_Statement> Hodge, R. & Kress, G.,2002, Social Semiotics. Cambridge: Polity Press Kotabe, M et al, 2004, Global Marketing Management, 3rd Edition, New York: John Wiley & Sopns, Inc, publishers McChesney, & Robert W. 2001, “The Political Economy of Media: Enduring Issues, Emerging Dilemmas”. Monthly Review Press, New York Schechter, D., (2009-04-16). "Home”. Media Channel. 30th April 30, 2010 Petley, J, 2002, "Advertising". North Mankato, Minnesota: Smart Apple Media Read More