Marketing Strategies of Heinz

Of all the products launched by Heinz between 2003 and 2006, sauces, dressings, and condiments took the largest share, of 25.5%. However, ready meals also took a sizeable share of 20.9%. Other categories that were key to the company’s new product developments include canned food (13.1%) and fruit and vegetable products (9.2%). Of all the products launched between 2003 and 2006, 1.5% of products were classed as innovative. When looking at innovation within Heinz, the company is most innovative in meat, fish and poultry products with 6.1% of all meat products launched by the company, innovative (Datamonitor Inc., 2007).
Additionally, from the information that is available about the business units of the company, it can be stated that the Tinned Pasta and Retail Brown sauce business units were the most profitable with a revenue generation of 78.2 and 74% respectively. From this information, according to the BCG Matrix, these two units can be termed as Stars.
Secondly, the Retail Ketchup and Baked Beans divisions were the other two divisions which generated considerable revenues. Baby food and drink products are other areas in which Heinz is a leading innovator. 3.1% of all baby products launched were classed as innovative.
One of the most important strategies intended at the growth of the company and that was taken by the management of Heinz was to offset commodity and marketing costs and thereby increasing the operating margins.&nbsp. The company also increased its focus on the consumer with a strong spotlight on health and wellness.&nbsp. Apart from these, the company also increased investment in marketing for future growth, greater R &amp. D and impressive productivity measures (Merrett, 2007). Heinz’s international growth strategy of acquiring new companies in the Netherlands, Indonesia, the Philippines, Singapore, and Costa Rica also have been of great help to the company’s growth and improved performance.&nbsp. The company also launched growth and reorganization plans to focus on Meal Enhancers and Meals &amp. Snacks. The historic transaction with Del Monte Foods is designed to make Heinz a more focused company able to invest more effectively in its strongest brands (Heinz).
The company also increased its focus on the consumer with a strong spotlight on health and wellness. Apart from these, the company also increased investment in marketing for future growth, greater R &amp. D and impressive productivity measures (Merrett, 2007).&nbsp.Heinz’s international growth strategy of acquiring new companies in the Netherlands, Indonesia, the Philippines, Singapore, and Costa Rica also have been of great help to the company’s growth and improved performance. The company also launched growth and reorganization plans to focus on Meal Enhancers and Meals &amp. Snacks. The historic transaction with Del Monte Foods is designed to make Heinz a more focused company able to invest more effectively in its strongest brands (Heinz). Heinz intends to build growth and value over the long term through a strategy based on certain imperatives like expansion and improved consumer price-value, remove the clutter by reducing the complexity of Heinz’s business processes and continuing to focus resources on those products and activities that maximize profitability. Pricing again also played its part in the company’s overall performance as changes in pricing and improved volumes, through key brands like weight watchers and Heinz baked beans, were offset by difficulties in Russia for its non-Heinz products and unbranded frozen foods. By maintaining the key initiatives of the year of pushing both innovation and the number of its brands globally, Heinz believes that it can continue the strong performance into the 2008 fiscal year. The company was also keen on squeezing out costs to deliver the margin improvements necessary to underwrite greater marketing investment. The effective formulation of a strategy needs a clear understanding of competition. Competition in an industry is determined not only by existing competitors but also by other market forces such as customers, suppliers, potential entrants, and the existence of substitute products. Michael E. Porter of the Harvard Business School has developed a framework known as the ‘Five forces Model’ to help analyze the business environment.