...CASE ANALYSIS HEINZ KETCHUP: PRICING THE PRODUCT LINE Under the Guidance of: Submitted by: Dr. D. D. Swain Navneet Goel Professor – Marketing Regd. No. 11PGDM-BHU005 [pic] INTRODUCTION The Heinz brand ketchup was introduced in the year 1876 by the H. J. Heinz Company headquartered in Pennsylvania and is the most global US based company. The Heinz ketchup has been in the leadership position from the year 1960’s. The Heinz ketchup was the flagship brand of the company’s food products portfolio. The company owned 15 brands which generated revenue of more than US $100 million in sales. The ketchup generated 30% of sales revenue. The ketchup was served with American favourites such as hamburgers, hot dogs and French fries. It was distributed across the globe and mainly in U.S. through all major grocery retailers. ISSUES The threat by the retailers loomed large in front of Heinz and it faced the issue on how to increase the net sales of the Heinz ketchup and how to increase the profits. The issues which the company faced are as follows: • The reduced shelf space because of the display of the retailer products • Impact on the prices of the Heinz ketchup because of increase in the prices of oil and natural gases • Slow growth of the sales of the ketchup • The market was saturated and the category was matured • Competition by the Private labels of the retailers • Constant pressure to offer trade deals to the...
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...Planning a Start-up Business Introduction Starting a business can be scary; especially if you do not know what you are doing, or if you are doing it by yourself. It can also be an exciting experience if you have done the research, established a business plan, and stay committed. There are facilities where start-up business can go for help, advice, and services to help them in getting started. These are called business incubators. Business incubators can be located in a rural or urban location, and provide skilled services, technology such as internet, or phone lines, and minor assembly of products (Schermerhorn, 2013). Discussion Content The importance of a feasibility study and a business plan. When thinking about a feasibility study and a business plan, one may think that they are the same thing. They are not. A feasibility study is a study that determines whether a potential business will be able to operate successfully. A business plan formulates how and where the business will go and how it will be financed. Usually, one would execute a feasibility study, and then prepare a business plan. A feasibility study can be very helpful initially. It assists the entrepreneur in addressing an important question, “should we proceed with the proposed project idea?” (Hofstrand & Holz-Clause, 2009). By researching and contemplating different ideas in the study, a person can determine which course of action will be the best to adapt. A feasibility study develops into the foundation...
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...Running Head: MARKET STRUCTURES Meritus University Market Structures Heinz ketchup is the leading producer of ketchup, worldwide. They have very few direct competitors, and as a result I would consider the market structure of ketchup to be an oligopoly. This paper will help to show the implications of how this market structure has on pricing Heinz ketchup. It will also cover non-price strategies to preserve sales and suggest steps to keep its competitive advantage in the market. The market structure of ketchup is an oligopoly for all competitors of Heinz. Heinz has a 60 percent market share of ketchup sales worldwide (2010). With a market share so large, many of the characteristics of a monopoly can be used. Pricing When setting the price, Heinz can use strategies designed for both oligopolies and monopolies. With its monopolistic characteristics, Heinz can dictate a price above its competitors because of its leadership in the market. Competitors, such as Hunts, will have to set their price lower to generate demand when two of every three people on average choose Heinz. The price they set must not be too high above competitors as the product is price inelastic, meaning, consumers will choose another brand if price is too high. Non-Price Strategies With its leading market share, Heinz does not have to market as heavily as competitors. Marketing should be let consumers know they...
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...The Amazing Bottle of Ketchup Dawn A. Rairigh American InterContinental University January 25, 2015 Abstract Ketchup is an everyday item with very important job to do. On a daily basis moms use this product with their kids to get them to eat there breakfast, lunch or dinner. Marketing this product has to be clever and on point. Moms and companies with budgets to think about, the needs of this product are very basic. The Amazing Bottle of Ketchup The picking of tangible item to do this project was difficult for me choice for me to do. When searching the data base I found ketchup, so here it is. The Ketchup Paper, my kids are laughing as I write this paper for class. I personally do not like ketchup not even on my french fries. As a mom ketchup has been a life saver with my cooking. My kids eat ketchup on just about everything, so I never thought about where did it came from until this project. My Caleb literally eats it on everything including mash potatoes. Needless to say, ketchup is a very important staple in my refrigerator and pantry. Ketchup has reasonable ingredients in it so moms don’t have to worry about it. How do you make ketchup exciting? In 2005, Heinz, did a study on organic ketchup verse conventional ketchup. Not claiming that it was any healthier than the original ketchup. Marketing this product towards a particular lifestyle, as well healthier eating habits and environmental benefits. The image of traditionally grown tomatoes, wholesome...
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...CADBURY: Billionaire Mr Peltz heads the Triarc buyout firm in the US and has a history of taking stakes in companies prior to forcing through change. Last year he fought a bitter battle for representation on the board of Heinz, eventually winning two of the five seats he wanted. He has been instrumental in pushing through a round of cost-cuts and share buybacks at the ketchup to beans group. Other targets have included the restaurants group Wendy's, where he applied pressure to have its doughnut business disposed off. He also recently emerged as the largest shareholder in the jewellery group Tiffany's, with a 5.5% stake, and was thought to have been one of the unsuccessful bidders for Aston Martin, the luxury car marque which has just been sold by Ford. Mr Peltz, 65, made his name in the corporate raider arena on Wall Street in the 1980s. He made his first fortune with the acquisition and merger of Triangle Industries and National Can in 1985, selling the company five years later for a profit of more than $800m (£413m). He has had dealings with Cadbury in the past, having sold his Snapple soft drinks business to the group in a $1.45bn deal in 2000. He had bought it three years earlier for just $300m Trian campaigned stridently for Heinz to increase shareholder value. The outcome? Even before the results of the proxy were announced, Heinz management announced a $265 million cost-cutting plan and a $1 billion share buyback program the British maker of Dr Pepper soft drinks...
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...foreign companies. Many international companies that ventured in after 1991 are tallying their profits and losses and wondering what the future holds for this market of 950 million people. But India is a diverse country where different states have different consumption patterns and customs. Thus competition has become the key word in today’s scenario. Till 1970’s and 80’s Maggie and Kissan were the major ketchup brands but after liberalization Heinz entered Indian market which offered tough competition. These major giants are also facing competition from many local players like Tops, Cremica and other local brands. Through this project we have studied 4 P’s of marketing mix which includes PRODUCT, PRICE, PLACE and PROMOTION for Maggi Tomato Ketchup. Product highlights various attributes of the product. Price helps us in analyzing whether it is competitively priced or not. Promotions showcases which mode of promotion is most effective and how do consumers respond to various celebrity endorsements. Place focuses on efficiency of distribution network of Maggi Tomato Ketchup. We have also drawn out some inferences by applying various statistical tools like ‘SIGN TEST’. Towards the end we have suggested some recommendations as a group on how can we improve the marketing mix of the product. Nestlé, which world knows as cautious and conservatory company is a Swiss originated 140 years old Multinational. The man at the helm is Swiss national Carlo Donati, an...
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...Did your mom ever tell you to not pet stray dogs? Well mine did of course, and I listened just as well as any 4 year old would. I was a very hard headed kid at that age, and I never listened to what I was told. We lived in a small town 200 miles west of Middlin, Texas; it was a quiet town with a population around 1,000 people. If you’ve ever been to Texas then you know that it’s about 90% desert, it’s a dry and dusty place. Stray dogs are everywhere be aware and whatever you do don’t pet stray dogs. It was the summer of 1991 in Middlen, Texas the temperature was around 100 degrees. I was soaked from head to toe with sweat from ridding my dirt bike all day. I had gotten a 50cc Suzuki dirt bike from my dad just a year prior and I was loving it. I rode my dirt bike all summer long that year. There was a pit not too far from my house that I could ride in that had some whoop-de-woops, and some jumps. This pit was huge, I mean it was a giant pit, it looked like a comet had struck the earth it was so big. I spent what seemed to be all day at the pit riding my dirt bike. When I finally got home I decided to cool off in the sprinklers, I ran into the house as fast as I possibly could to change clothes. As I got into the house I yelled Mom! Can I go outside and play in the sprinkler, she said yes but I had to eat supper first Dang it, I said under my breath as I continued down the long hallway. When I got to my room I looked everywhere for my Teenage Mutant Ninja Turtles swimming...
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...Media Studies - Textual Analysis Part A This advertisement circulated around 1953 for Del Monte Ketchup (Lars, 2009), or as Australian’s call it, tomato sauce. On first appearance this text screams sexist as it frames a well dressed woman of the aforementioned era with manicured nails, perfect make up, not a hair out of place, looking suitably surprised by a bottle of tomato sauce. The image is anchored by the words “You mean a woman can open it?” with the word “woman” underlined to suggest that women are the weaker sex and previously unable to open a bottle of sauce without the assistance of a man. (Tremblay & Tremblay, 2012) writes that this ad depicts women as technically unskilled or as sex objects. Within the frame of the advertisement is the ideology of the 1950’s woman, the text which anchors the ad and part of the bottle of sauce. This acts as a slight form of metonymy as part of the bottle represents the whole bottle, or, all the bottles of that particular brand of sauce. At the time this advertisement went to print the Del Monte logo at the top of the bottle was most likely recognised by that general demographic. There is nothing else within the frame of this advert, no husband to suggest this new sauce bottle is for anyone to use and no family in the background suggesting this is for the ‘kept woman’ who takes care of her man. Furthermore, we can’t see her posture but we can assume her posture is straight and confident by what we can see of her head, neck...
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...US and South America. It also acquired various trademarks for consumer products such as Del Monte, S&W, Contadina, College Inn, Fruit Naturals, Orchard Select and SunFresh. The Group now has exclusive rights to use the Del Monte trademarks for packaged products in the United States, South America, the Philippines, Indian subcontinent and Myanmar. The consumer product business that the Group acquired enjoys leading market shares for the US canned fruit and vegetable segments and number two position for the US canned tomatoes and broth categories. In the Philippines, the Group enjoys leading market shares for canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup. The Group also owns another premium brand, S&W, globally except Australia and New Zealand. As with Del Monte, S&W originated in the USA in the 1890s as a producer and marketer of premium quality packaged fruit and vegetable products. The Group owns approximately 94% of a holding company that owns 50% of FieldFresh Foods Private Limited in India. FieldFresh markets Del Monte-branded packaged products in the domestic market and Fieldfresh-branded fresh produce. Del Monte Pacific’s partner in...
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..."Choice, happiness, and spaghetti sauce" In the video, Mr.Gladwell speaks about choice and happiness. He mentions how Pepsi chose to get aspartame for their drink. He said that Pepsi had to choose on how much aspartame they should add in their drink for people to like it. Finally they thought why they shouldn’t try a new product. They came up with Diet Pepsi. They started experimenting with Diet Pepsi. While analyzing data of Diet Pepsi they came across a new question; why where they looking for the perfect Pepsi , when they should have been looking for the perfect Pepsis. Instead of looking at one choice they should have been looking at many choices. Later, Mr. Gladwell talks about Campbell’s Soup and their tomato sauce which were of two different kinds, Prego and Ragu. They strived in making the best tasting sauce ever for which they added different quantities of ingredients in their sauce. This took them a high two to three decades of great effort to figure out the choice of the consumer. Then they started adding flavor to the sauce where they dint go with the highest average. They had to stick to choose the best flavor instead of the best sauce. Mr.Gladwell quotes that a "surer way to true happiness" can be found by embracing diversity. In marketing terms, companies might be able to make profits by embracing the differences in consumer's preferences. A major challenge in the FMCG was that it was asking what the customers want. The fact is that the customers...
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...hambre y compré dedos de pollo. A mí me encantan los dedos de pollo porque son muy sabrosos. Buscábamos un lugar para comer afuera del supermercado y encontramos una banca en el litoral donde había mucho sol, música, y gente. Todos estaban charlando y disfrutando el día. Saboreábamos nuestra comida con contento y observábamos la escena porque a nosotros nos encantaba mirar a la gente de culturas diferentes. Pero vimos que muchas palomas nos rodeaban. Mis amigas tiraron unas papas fritas a las palomas y nos reíamos. Pero en mi conciencia* no estaba cómoda con estos pájaros. Ignoré al inquietud* porque tenía muchos bolsos y no quería causar problemas con mis amigas o encontrar un lugar nuevo para comer. Mientras mojaba un dedo de pollo en Ketchup, miré a una paloma: andrajosa*, sucia, desamparada*. Pensé en patear la paloma, casi di una mordida del dedo de pollo, cuando de repente una paloma me atacó. Sus alas me azotaron* en la cara y la pícara me robó el dedo de pollo de mis manos. Me levanté pronto y corrí sobre el litoral, gritaba y gritaba como una demente. No podía creer en que ocurrió. Y cuando salí a mi propio mundo, me di cuenta que mis amigas reían como hienas. A mí me puse en ridículo pero no me importaba. A mí me sentía la ira y el odio...
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...Green Beans__________ _____ Corn ________________ _____ Other _______________ __________________________ Meats____________________ Fruits ____________________ __________________________ Soups _____Cream of Mushroom _____ Cr. of Celery _____ Cr. of Chicken _____ Tomato _____ Progresso Other _____________________ Dry Goods _____ Minute Rice _____ Spaghetti _____ Beans _____________ _____ Pasta_______________ Spices/Baking _____ Shortening (Crisco) _____ Olive Oil _____ Flour [all purpose] _____ Sugar _____ Splenda _____ Baking Powder ___Soda _____ Salt/Pepper __________ _____ Gravy Mix ___________ _____ Pudding _____________ _____ Jell-O _______________ _____ Other _______________ Dressings/Syrups _____ Ketchup ____ Mustard _____ Miracle Whip Light _____ Jelly/Jam ____________ _____ Salad Dressing _______ _____ Peanut Butter_________ _____ Pickles ________ Relish _____ Syrup______________ _____ A1 Sauce___ Heinz 57 _____ Picante Sauce _____ Olives BL___ - GR___ _____ Vinegar...
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...LETTER OF SUBMISSION 2nd April , 2012 Abul Khair Jyote, Lecturer, Marketing Dept. School of Business. Independent University, Bangladesh. Subject: Submission of the report on “Value addition”. Sir, With due respect and honor, we the students of your respective subject Advanced Marketing Management ( MKT – 302 ) and the members of group “Black Hawk”, made a report on “Value addition to Heinz Ketchup” with some information and necessary records. In this report the data and information we collected, we tried our best to make it meaningful and clear. In this report, whatever we experienced, we believe that it will help us in future. We are very happy to submit this report to you successfully. We therefore pray and hope that you will be kind enough to receive our report and hope it will satisfy you. Thank you Sir. Yours sincerely, NAME ID SIGNATURE 1. Tawsif Bin Maksud. 0910374 2. Kaptia Mumtahana. 0910330 1. Executive Summary: [pic] “To do a common thing uncommonly well brings success.” —Henry J. Heinz. The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of all U.S.-based food companies. Famous for our iconic brands on six continents, Heinz provides...
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...Experience: Café Circa Full bar. Cigars. Atmosphere. Jack Daniels and Apple juice. Wings. Good service. These are just a few of my favorite things and they reside at Café Circa. One of the gems in the historic Edgewood avenue side of Atlanta, CC is an interesting and pleasantly underwhelming restaurant that combines Caribbean and Latin infused cuisine. Underwhelming because it has décor and ambiance that is sexy and quiet, not a screamingly overdone design, which many establishments have. The interior gives the feel of a very sultry living room, inviting and comfortable. The seating layout is functional and relatively open. Tables are spaced in a manner that allows for quiet private conversation. Did I mention a full bar? One of the few establishments that actually has apple juice at the bar. If you haven’t tried apple juice and Jack Daniels, you are missing out on and losing at/in life. Period. I digress. Prices at CC, were comparable to quality. The most expensive item is about twenty four bucks. So for two people, you will spend about fifty bones with tax. Now let’s get to the reason why you are reading this in the first place, the food. An appetizer of guava jerk wings kicked off the experience. Yeah, it sounds random and leaves you asking who in the world would combine guava and jerk. Granted, jerk is good enough but guava came out of left field. Believe me, it works!! Very tasty, savory, and flavorful. If you want to be fancy and need to serve something...
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...Erica Scott Instructor Emily Stallings Communication Skills October 5, 2010 Better Than Store-bought I can relate to many things in Barbara Kingsolver’s book Animal, Vegetable, Miracle since I come from a small town where farming and knowing almost everyone around you is the norm. In chapter 13 Barbara talks about canning tomatoes, which I have had some experience with. In fact, I helped my mom just this past August with her canning. Almost every year around August our kitchen has a distinctive tomato scent that hits you as soon as you walk through the door. The scent fills the whole house and there is not one room that doesn’t have the smell of tomatoes reaching your nose. This year my Paw-Paw brought his homegrown tomatoes down to us to can since we quit gardening a few years ago. I completely agree with Barbara Kingsolver’s statement when she says, “Fresh garden tomatoes are so unbelievably tasty, they ruin us utterly and forever on the insipid imports available in the grocery.” (198). From the first time I tasted a homegrown tomato the taste of a store bought one was never the same. Towards the end of chapter 13 Barbara talks about how to can tomatoes. This is a fairly simple process that went along with how my mom taught me to can. First, you wash the tomatoes. Next, you dip 6 to 8 tomatoes into boiling water for about 30 seconds. Upon taking them out they are to be placed in ice cold water, which peels the skin right off. Then, using a knife, you cut the core out...
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