Heinz Beans - Marketing Mix, Competitive Advantage, Evaluation of Products Success - Example

Heinz Beans Market Audit Report Name Course Institution Date A.1. The Australian Target Market The success of every product is mainly determined by the size of the market. As the market for a particular product grows, the marketer will seek to ensure effective marketing strategies. In order to achieve this, the market is subdivided into segments. In essence, segments are small units of groups in which different consumers are categorized. The categorization is based on the similarity in terms of consumer needs. That is to imply that consumers with similar needs are grouped together. This is meant to ensure that unique marketing strategies are executed to different segments depending on their needs. This makes it possible to achieve optimal marketing results since the needs of consumers are closely monitored. The market segments are based on the fact that consumers have different needs and therefore uniform approach to supplying goods or services may not be satisfactory to consumers. Heinz beans are products that have been on the market for a very long period. The product is known for its excellent taste, high fiber content and low fat content. In addition, the product does not contain artificial colors or preservatives. This has made the product outstanding for a very time. As a result, the product has penetrated the market deeply. Its presence in the international market cannot be ignored. Therefore, in seeking to understand the success of this product on the market, it is important to analyze the various market segments that the product is serving right now. In relation to that, a comprehensive analysis of the domestic market segments will provide an awesome basis upon which conclusions can be made in relation to the success of the product. This is not meant in any way to suggest that the higher the number of market segments, the better the product. The reality is that the success of the product is not reliant on the number of market segments. The total market value of Heinz beans on the Australian market is $100 million. This in itself indicates that the product has been very successful in the Australian market. The market survey indicates that the main segment for Heinz Baked beans productsis families. This seems to be the largest and most profitable segment for the company. This kind of beans is mainly consumed at family levels. The preference is across all ages in the family. Based on this information, the company has been designing this product to suit the needs of the families. This ranges from packaging to content in terms of flavor and additives. Families consume these beans because of their high nutritional content. This works even better for the younger ones. Families consume these beans at different times either at lunch or supper. In general Heinz Baked beans support a healthier lifestyle. By use of these beans, families are in position to manage weight issues appropriately. An example of such an approach that seems to fit the family is the Fridge Pack which holds about 1kg of beans. Such package makes it easier to store the beans in fridge for up to 5 days and can be consumed by the entire family. A.2 Marketing Mix A.2.1 The Product This report deals with Heinz Baked beans. This is one of the main products that the company relies upon to boost its revenues. These beans are very tasty with high fiber content. They also contain minimal amounts of fats. The company ensured that this product does not contain a lot of additives except for preservation. These beans are rich in tomato sauce. In checking them in retail shops, these beans are packed in packages of 150g, 200g, 415g and 850g. This is one of the oldest products of this company having been launched in 1901. This product has been very successful in the market as a result of its ability to meet not only the needs of consumers, but also their expectations. The nutritional value of these beans is exceptional. In 1940s, these beans were classified as essential food by the Ministry in charge. This indicates that indeed even the government had approved that Heinz Baked beans meet the nutritional needs of consumers. The product’s superior quality meets not only the nutritional needs of consumers, but also the good taste. Amongst many qualities that these beans possess, they have low sodium content. This works well in relation to reducing the chances of being affected by a number of nutritional disorders. In addition, these beans are free from gluten. The Heinz Baked beans are categorized as convenience products. This is based on the features that surround the production and marketing of the products up to the final consumer. The nature of beans is that they are used almost on daily basis. If one family is not cooking, then the neighborhoods may be cooking some. At the same time, consumers do not spend much of the time searching for the products. The price of the products is known and little variations are expected on daily basis. In comparison to other categories of consumer good, beans are cheaper and sold in many places. These products are sold in diverse places as a way of stimulating the demand. For products like beans, it is easier for consumers to make impulse purchases and this is because they are consumed on daily basis. Therefore, these features qualify the product as a consumer product. Heinz Baked beans have quite a number of features. All these features are meant to appeal to the needs of the consumers. This starts with the packaging. The company has been changing the packaging of this product on a regular basis. This is meant to ensure that at all times the packaging is able to appeal to the target consumers. Another attribute of this product is the fact that it does not have fats. This attracts a lot of demand from consumers who suffer from blood sugar complications. In addition, these beams are ready made. They are already cooked and packed which means the consumer does not need to waste a lot of time cooking. This has worked excellently among the working class consumers. Heinz Baked beans, just like any other product has three levels. The levels of a product are the categories of benefits that a consumer derives from the product. The three levels of a product assess some of the benefits that many consumers are not aware of. The first level is the core product. This is mainly the benefit that makes the product important to the consumer. In the case of these beans, the core product is the nutrients that are gained. By consuming Heinz beans, the consumer benefits in terms of proteins, high fiber content, low fat, low sodium content, etc. That nutritional value is the core product. At level two, there is the actual product. The actual product is the part of the product that is tangible. It is what appeals to the eyes of the consumer. In this case, these are mainly the beans that are finally consumed. Since this is the physical product, the producer ought to ensure all the features that appeals to the eyes are inclusive. This includes the physical appearance of the beans in terms of texture, color, size and shape. The last level of the product is augmented. This is not tangible. The augmented product represents the value addition. In the case of Heinz beans, the cooking of beans represents the augmented product. In relation to assessing the effectiveness of the brand, there are very many factors that ought to be considered. First, the fact that this product has managed to stay on the market for more than a century is very crucial in assessing the success of a brand. This shows that Heinz is an established brand on the market. The market performance of the product is simply amazing. This not only true in Australia, but also in other parts of Europe and Asia. In other words, this is an established brand. On the other hand, it is good to point out some of the factors that have contributed to building of this brand. One of these factors is packaging. This has been changing regularly in order to ensure the product appeals to optimal number of consumers. Most of the time, the company has been using cans to package the Heinz beans. The design on the cans clearly communicates the nature of the products therein. The kind of packaging that the company has been using for this product is meant to achieve specific goals. The packages are meant to communicate a lot of information relating to the product that is inside the package. Looking at the various types of packages that the company has been using, it is clear that this process achieves two main goals: protecting the product and promoting the product to target consumers. In this regard, plastic cans are used because they can protect the products from any form of destruction. In addition, the design on the package portrays the deliciousness of the beans. The saucy beans on the package are meant to appeal to the potential consumers. This is very important when it comes to methods to be used in stimulating demand for the product. The company has appropriately used packaging as a way of value creation. As a result, it is in a position to differentiate the products by use of packaging. This is one of the reasons the company has been changing the packaging for this product. It is to ensure that the product stands out amongst many products in the same category. In terms of the product life cycle, it is important first of all to restate the point that this product has been on the market since 1901. For a product to be on the market over a century, it surely cannot be in the introduction or growth stage. This is because in the two stages, the product requires a lot of funds to sustain the intensive advertisements and promotions. In real sense, the product in these stages is even yet to break even. This implies that the company is forced to spend a lot of money while expecting very little from the sales. It is simply impossible for a company to sustain this for 100 years. Based on the information provided above in relation to this product, this is the maturity level. It seems like the sales have stabilized in some way. Fewer adverts are being run except for differentiated products. In addition, the company has been differentiating this product a lot. The increased differentiation is as a result of the reality that the product is almost moving to the decline stage. Differentiation is happening to ensure that the product remains in the maturity stage. A.2.2 Promotion In the current business environment, it is impossible to take a product to commercial heights without promotions. As a matter of fact, the product requires a lot of promotion in order to get through the introduction and growth stages. Otherwise, the product may fail at this stage in its life cycle. In general terms, promotion refers to any act that a company undertakes with the sole purpose of encouraging the sale of their specific product. The design and execution of a promotion is done with a specific target audience in mind. In this regard, the mode of communication will always vary. The Australian market has witnessed a lot of such ads about Heinz beans. The most recent ad about Heinz beans is referred to as “little brother”. This has been on air in mid-September. It seems like the main communication media that the company has been using to commercialize Heinz beans is the TV. This can be explained in different ways. The TV is a communication tool with a wide coverage. Through it, consumers around the globe can be reached at the same time. Since Heinz beans are convenience products, they need sufficient coverage in order to stimulate the required demand. Every target consumer must be reached since convenience products have many substitutes in the market. In order to achieve such goals, the use of TV is the most appropriate tool in communicating these products to the target audience. The expenditure is worthwhile regardless of how costly it is. It is worth in the sense that the more customers are reached, the higher the purchases. A part from the TV, there are many other communication tools that the company has been using to advertise Heinz beans. The company has evolved such diverse communication tools to ensure that it aligns well with the changing needs of consumers and the emerging trends in the society. Like many companies are doing, this company has a Facebook page where its products like Heinz beans and others are marketed appropriately. The product’s Facebook link is https://www.facebook.com/HeinzBean . Similarly, the twitter handle for Heinz beans is Heinz beanz (@HeinzBeanzuk). All these social media tools are made to communicate information regarding the products of the company. Through such platforms, new developments are quickly communicated. These include development of new product and sales promotions. A.2.3 Place (Distribution Strategy) Place is one of the 4Ps of the marketing mix. It is based on the understanding that products have to be transported to a place where they can be easily accessed by the consumers. Distribution is the arm of the marketing mix that enables the company strategically places its products at a point where it can be accessed by potential consumers. When it comes to convenience products like the Heinz beans, it is very crucial. This is because failure to deliver these products to the consumers will make the competitors capitalize on it and this is likely to render the product out of market. The company uses an intensive distribution strategy. This kind is suitable to products which possess features of impulse purchase. At the same time, the products are low-priced and it makes it easy for the intermediaries to mark-up on the given prices. On the other hand, the company uses producer-wholesaler-retailer-consumer as the main distribution channel. This shows that the company’s product goes through intermediaries before getting to the final consumer. The producer sells the products to the wholesalers who later on sell to retailers. The retailers sell these products finally to the consumer. There is a lot that can be associated by the company’s selection of the channel of distribution. Top on the list is the nature of the products being sold. Heinz beans have a widely scattered market. Therefore, if the company chooses to sell the products directly to the customers, it may need a lot of funds which may not be profitable at the end of it. Similarly, the company may have limited access to some places due to issues related to infrastructure. Therefore, the middlemen are more in contact with the consumers as opposed to the producer and this increases satisfaction of the needs of the consumers. Inasmuch as the company is committed to ensuring that Heinz beans keep on improving performance on the market, it has not managed an online distribution strategy yet. The company has shied away from online marketing platforms. This is mainly caused by the bulkiness of the product. In relation to the suitability of this distribution strategy to the product life cycle, I believe it is appropriate. This based on the understanding that the company does not need necessarily to adjust the distribution strategy as the product moves to different stages because distribution strategy is designed based the nature of the product. A.2.4 Price Pricing is the last element of the marketing mix. That implies that the price ought to be set appropriately to ensure that it attracts the optimal number of customers while at the same time maintaining its competitiveness. On average, the following are the prices with their respective weights: 4 x 415g = $ 2.5 6 x 415g = $ 3.60 4 x 200g = $ 2.08 1kg = $ 1.9 In reference to Heinz beans, the pricing strategy that seems to have been used is the cost-based pricing. The various products that have been differentiated may not have close competitors, but when it comes to pricing it begins by factoring in the cost of production. 3.0 Competitive Advantage Competitive advantage is what gives the consumer reasons for purchasing the given product. It shows why the given product is actually better than that of the competitor. Every producer has this goal in mind. The marketer wants to present the product in the market in a manner that will make it clear that this is a unique product. This is actually what Heinz beans have been designed to achieve. Over the years that this product has been on the market, the company has banked on quality as their market positioning pillar. The company has managed to deliver quality in terms of the nutritional content of the beans. The beans have high fiber content, fat-free and little sodium content. Since the time when this food was declared an essential food, the company has been working on modalities ofmaintaining the superior quality. This seems to have stood out for a long period. At the same time, the company has managed to build its brand in the global market based on quality. 4.0 Evaluation of Product’s Success Marketing concept is a very common concept indeed. It based on the approach of understanding the needs of the consumers before designing a product that meets these needs. In other words, the marketer goes into the market to study the prevailing needs or deficiencies. Afterwards, a product is designed that can be able to meet these needs in a better way as compared to competitors. This concept has drawn so much from market research. It is from such sources that information about the consumers is gained. Heinz has been on the market for quite a long period. The ability of the company to maintain good quality products is based on the understanding of the need of its consumers. The contents in terms of ingredients and additives in Heinz beans are done based on the needs of the target consumers. Therefore, it is appropriate to conclude that Heinz beans have had a successful marketing campaign. References Kotler, P 1999, Kotler on Marketing: How to Create, Win, and Dominate Markets, Free Press, London, pp. 34-75. Kotler, P 2000, Marketing Management, Prentice Hall, Upper Saddle River, New Jersey, pp. 112-138. McDaniel Carl, C & Gates, R 2009,Marketing Research Essentials, Wiley, New York, pp. 178- 203. Read More