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H.J.Heinz Marketing Strategy - Case Study Example

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Heinz is a US based Food company with numerous branches worldwide. Some of the countries that enjoy their products include the US, UK, India, Australia and many more. The company was founded in Pennsylvania by a twenty five year old known as H.J. Heinz in the year 1869…
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H.J.Heinz Marketing Strategy
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Download file to see previous pages The paper shall examine these with specific reference to the initiatives launched by the company and recommendations will be given about the issues that can be changed within the company.
Heinz has established a name for themselves in the food industry through their pricing strategies. Usually, the company studies markets in its respective environs and then looks for a way in which it can stay ahead of that competition. Their prices are normally sufficient enough to attract clientele, while at the same time maintaining a level of profitability and competition within its respective regions.
Numerous marketers acknowledge the fact that when sufficient value has been added onto a product, then its pricing becomes a secondary factor in convincing clients to purchase the item. For instance Heinz ketchups contain additional ingredients such as garlic and other flavours that can be used to enhance its overall taste and hence its value. This is the reason why consumers became loyal to the brand. In addition to the latter, pricing is also largely determined by the strength of the brand. For instance, when one considers some of the goods offered by the company, it can be seen that some of them may be much higher than what their competitors sell them for. However, because of the strong brand name, some people who are loyal to the Heinz brand may be willing to pay a little extra for the commodity as long as it comes from the H. J. Heinz food company. (Grant, 2005)
Heinz pricing strategies are also largely affected by their geographical proximities. For instance, the largest pickle manufacturing Heinz factory is located in its headquarters within the United States. Consequently, some countries that may be in need of this product but are far from the United States will have to include the additional costs that come along with shipment and the like.
Heinz usually incorporates a lot of in-store discounting in its product offering. Most of the time, this is done through a range of grocery stores or it also deals with a series of hyper stores too. The company realises that in order to boost their sales at the last point of contact with the consumer, there is a need for one to establish a mechanism that will encourage this kind of initiative. (Balakrishnana & Coyne, 1995)
Perhaps the most important aspect in Heinz's marketing strategy is the strength of its products. First of all, Heinz is largely known for its "fifty-seven-varieties" advertisement and logos. The company has invested thoroughly in offering a range of food items such as pickles, sour onions, tomato sauce and many other varieties. The number fifty seven does not signify the exact number of products available under the Heinz name because these products are much more than this. However, the number is meant to indicate just how diverse the company's product offerings are and also, to capture consumer's attention. (Mc Gahan, 2004)
The major strategy behind Heinz's product strategy over the past three years has been to streamline their product offering. The company realized that in order to offer better quality products, it would be more helpful for them if they categorised their items. This was the reason why the company decided to offer all their products under three major brands that included;
Sauces
Ketchups
Baby food
Convenience meals
The company was determined to grow this category by buying out other companies that had specialised in some of their weak categories such as the ...Download file to see next pagesRead More
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