MARKETING ESSENTIALS - Heinz Marketing Strategies

Explore the essential marketing strategies of Heinz, including roles, responsibilities, marketing mix comparison with Nestle, and a detailed marketing plan. Understand the significance of marketing in achieving business objectives.

MARKETING ESSENTIALS
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Table of Contents
INTRODUCTION..........................................................................................................................3
LO1.............................................................................................................................................4
P1 ROLE AND RESPONSIBILITIES OF MARKETING FUNCTION IN RELATION TO HEINZ..........4
P2 RELATION OF ROLES AND RESPONSIBILITIES WITH WIDER ORGANISATIONAL CONTEXT
................................................................................................................................................6
LO2.............................................................................................................................................7
P3 COMPARISION OF MARKETING MIX OF HEINZ AND NESTLE............................................7
LO3...........................................................................................................................................12
P4 MARKETING PLAN FOR HEINZ.........................................................................................12
CONCLUSION............................................................................................................................15
REFERENCES.............................................................................................................................16
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INTRODUCTION
In this assignment marketing essentials of Heinz will be discussed with reference to the roles
and responsibilities of the marketing function. A relation will be showed with reference to
these roles and responsibilities with respect to the wider organizational context. In the
second part a comparison will be carried out for the ways in which different organizations
apply the marketing mix to achieve the business objectives with consideration to Heinz and
Nestle. Lastly, a marketing plan will be depicted and evaluated for Heinz.
Heinz is a food processing industry that was founded by Henry J. Heinz in 1869. It is
headquartered in the United States and serves worldwide. It has an employee count of
32,000 and is into manufacturing of the food products in more than 200 countries.
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LO1
ROLE OF MARKETING AND ITS INTERRELATION WITH OTHER FUNCTIONAL UNITS OF HEINZ
P1 ROLE AND RESPONSIBILITIES
OF MARKETING FUNCTION IN
RELATION TO HEINZ
Marketing is a societal process to reap the
customer value by exchanging the
products. It starts with the very beginning
when the concept is generated and it is a
never-ending process.
The significance of the marketing for
Heinz:
It acts as a medium between the
transfer and exchange of the
goods and services between the
firm and the customers for a value
generated in return.
It is the one that helps in creating
employment opportunities for the
employees that add to the income
and revenue generation sources.
It helps to build a good brand
image of the firm and boosts the
sales of Heinz (Philip, 2014).
Marketing department works with an
overall objective to hike the revenue and
boost the market share of Heinz by adding
to the growth and profitability of the
company.
Some of the roles and responsibilities of
the marketing department are abided by
the followings:
Strategy- It forms the responsibility to set
the marketing strategies that are aligned
with the overall strategy and objective of
Heinz.
Product development- In order to
improve the existing products of the Heinz
and develop the new ones thus also falls
under the purview of the marketing
department to grab all the potential
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opportunities related to fulfilling the gaps
in the product range.
Campaigns programs- Another
responsibility of marketing department of
Heinz covers the promotion of the
products by effectively planning the
campaigns and developing the
communication via leaflets, posters and
brochures and so on (Kotabe and Helsen,
2014).
Sales support- Another role that is
covered by the marketing function at
Heinz is the improvement of the sales
performance by boosting the business
growth and rendering a strong sales team
by supplying them with a high quality of
the promotional materials.
Managing the brand- The marketing
department has a vital role to play in
defining and managing the brand for
Heinz. It also is responsible for keeping
the social media managed so as to
contribute to a brand online too.
Role of marketing manager of Heinz:
Review whole department
Develop and implement marketing
plans
Study and analyse the market
Maintain coordination with other
functional units of Heinz (Philip,
2014)
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P2 RELATION OF ROLES AND
RESPONSIBILITIES WITH WIDER
ORGANISATIONAL CONTEXT
Marketing department shares an
interrelationship with other functional
units of Heinz too so any changes in the
marketing department will also impact the
other functional departments too
(Armstrong, et al. 2015).
Human resource- An effective marketing
department team is formulated only if the
human resource department hires
experienced and the right fit for the
desired job role. It also helps to ensure
that the targets are met and new products
are developed by proper research by the
HR personnel.
Production department- It forms vital for
the marketing department of Heinz to
closely associate and work with the
operations department so as to ensure
adequate R&D to fulfil the desired high-
quality products to satisfy the demands of
the market.
Finance department- The marketing
department will work with the finance
department so as to take every decision in
accordance with the financial capabilities
and budgets of the company sanctioned
for particular marketing activity.
The significance of the interrelationship
that marketing department shares with
other functional units:
 It helps in smooth working of
Heinz without any problem
 It boosts the growth of the
company
 It enhances the decision making of
Heinz by having better
understanding of the market
 It improves the work culture and
enhances clarity in the work
culture (Kotler, 2015).
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LO2
P3 COMPARISION OF MARKETING MIX OF HEINZ AND NESTLE
TITLE- ‘Marketing mix planning to achieve business objectives’
INTRODUCTION
In the following report, a comparison will be demonstrated of the ways of applying the
marketing mix by Nestle and Heinz that helps in achieving the business objectives of the
company. Every organisation is different and every organisation differently applies its
marketing mix strategies in the organisation to achieve their objectives.
BODY
Marketing mix will involve the analyses of the brand of the company covering all the 7Ps of
the marketing strategy that is used by the company. The 7P’s includes price, product,
promotion, place, process, physical evidence and people (Lovelock and Patterson, 2015).
Fig.1: 7P’s of marketing mix
(Source: https://www.slideshare.net/networldsujeet/marketing-7-ps)
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Marketing mix strategy of Heinz and Nestle- An overview
Product
In the international brand of Heinz in Australia, the product portfolio is inclusive of Canned-
Baked Beans, ready-to-eat soups, canned soups, Spaghetti in tomato soup and condensed
soups. It renders its products in sachets and bottles of different sizes so as to fulfil the
individual needs of the customers. The main focus lies on the quality products production by
enhancing the hygiene of the products and meeting the quality standards of the products
(Kotabe and Helsen, 2014).
Talking about Nestle and its product mix there are around 8,000 brands of its products in
the market and its major focus lies upon the dairy products, chocolates, ready to cook food
products, beverages and so on. One of the major cash cows of this company is Maggi
noodles, coffee brand Nescafe, and Nestle milk and so on. Its products have excellent
quality and it majorly focuses on food products (Nestle, 2016).
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Price
This is the second P of the marketing mix that is used by Heinz keeping its pricing strategy as
a competitive pricing strategy. It keeps in focus the target customers and adjusts the prices
keeping in mind the economic conditions. Thus it has been able to conquer a greater market
share by increasing its sales and it has also produced the bottles in the different shapes like
upside down shape. It keeps into consideration the moves of its competitors like Nestle and
then decides its prices.
The pricing strategy of Nestle is dependent on the quality of its products it is quite
expensive than its competitors. As the quality of the products of nestle is higher and better
than its competitors and for the same reason customers end up paying more for its
products. It designs its pricing strategy according to its competitors, geography covered by it
and the product quality it serves (Nestle, 2016).
Place
In order to improve the growth, Heinz has stepped into a merger with Kraft foods so that it
can expand to other places too globally and increase its supply chain. Heinz renders its
products worldwide at all places and it has an enhanced distribution channel present in
global markets like United States, Indonesia, China, India and Australia and so on. In the UK
it is considered as a leading seller in the baked beans category.
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While Nestle follows an FMCG distribution strategy that also involves the regular
introduction of trade discounts so as to render motivation. It covers majorly the European
market and generates 90% of its total sales from it. It has its presence in nearly 194
countries and has a strong product line.
Promotion
Promotion forms the major element in the marketing mix strategy of Heinz as it undertakes
traditional advertisements via TV and uses direct marketing techniques. Through the
promotional techniques, it is able to retain a large customer base by enhancing strong
customer relationships (Appiah-Adu and Amoako, 2016). It launches many food advertising
campaigns that helped it to gain competitive advantage and retain the customer loyalty. It
also undertakes sampling campaigns in order to generate the awareness about its products.
Nestle focuses on another hand on a unique promotional strategy by using extensive
advertising the brands and push their brands towards their customers by focusing on quality
and nutritional values.
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People
This is an extended element in the marketing mix that is responsible for serving the
customers from the side of a company. Heinz has an experienced staff trained by them to
represent the company and this helps in retaining high customer satisfaction of the
customers. Heinz has a satisfied customer base and thus has a large market share (Payaud,
2014).
Nestle on other hand invests more on training the staff and customer service department so
as to stay in contact with the customers and quickly resolve their feedbacks and issues so as
to render greater satisfaction (Wang, et al. 2017).
Physical evidence
This is the element that takes into consideration the location of the delivery of the products.
Heinz maintains standards of the products and thus maintains the security of the customers
in context to the products provided by them.
Nestle on other hand keeps the level of comfort and attractiveness in focus so as to deliver
the products across many locations so as to render effective user experience.
Process
Heinz keeps a perfect link between the customisation and standardisation of the products
that keeps in focuses the special areas involved that drags attention of the customers. The
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process is effective as it delivers the products in various areas but lacks the rural reach.
Nestle has a diversified process that keeps it reach in all areas across the globe and is also
easily available even in the rural areas. It is made according to the customer preferences
and thus renders unique customer experience (Nestle, 2016).
CONCLUSION
From the comparison above it is quite evident that different firms undertake different
marketing mix strategies so as to fulfil their business objectives and render the customer
satisfaction. Like Nestle and Heinz undertake a different combination of the elements in the
marketing mix that satisfies its business objectives.
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LO3
P4 MARKETING PLAN FOR HEINZ
EXECUTIVE SUMMARY
This report discusses the marketing plan followed by Heinz with its situational analysis. It
takes into consideration the effects that the marketing environment generates on the
business of Heinz. The strategies are developed by it to cover a large market share and the
segmentation; targeting and positioning strategy is also discussed that leads to deciding the
tactics and action plan for it.
OVERVIEW OF COMPANY
Heinz is a multinational American food processing company that have huge food markets in
200 countries with a domination of 150 products. Its main production of products includes
frozen foods, tuna, infant foods, beans and pasta, soups, pet foods and other products. It
has an employee count of 32000 worldwide and has a reputed brand name (Moura, et al.
2015).
CURRENT MARKET SITUATIONAL ANALYSIS
Heinz current market analysis will cover both the internal as well as external analysis of the
market.
Internal analysis:
The internal analysis includes the factors such as financial position, value chain, people and
its products that need to be analysed. Like on observing the financial constraints it has been
observed a revenue count in 2012 at US$11.64 billion and in the United Kingdom, it has
experienced staffs of 200 employees that add to the value of the company. It also has a
wide array of its products range that fulfils all the needs of its customers worldwide (Kotabe
and Helsen, 2014).
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External analysis:
For analysing the market situation of Heinz we will conduct SWOT analysis that will analyse
the internal strengths and weaknesses of the company and will also discover the external
opportunities and threats available outside the company which may affect its performance.
STRENGTHS WEAKNESSES
 Strong brand name
 High market share
 Effective R&D department
 Strong channel relationships
 Strong customer base
 Bottle size oversaturation
 Restricted growth relatively
 Industrial relations issues
OPPORTUNITIES THREATS
 Expansion in Asia and North Africa
 New brands in emergent markets
 Acquisition of domestic brands
(Sahu, 2016)
 Volatility of currency
 Increasing global energy costs
 Hike in generic brands
 Competitors
OBJECTIVE
The main objective of Heinz is to expand versatility by adding new to its products. And add
in the gourmet products and target the B2B markets. The objective also includes staying
competitive and retaining its market leadership in future too.
STRATEGIES
Heinz has undertaken a direct marketing approach to target its markets in an innovative
manner. It uses television advertising to support the umbrella brand of Heinz.
SEGMENTATION, TARGETING AND POSITIONING (STP)
Segmentation strategy as utilised by Heinz is done by segregating the market on the basis of
the geographic, demographic, behavioural and psychographic factors. Like it covers 200
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countries across the world and offers people the products in different colours, sizes and
shapes that attract their attention (Kotabe and Helsen, 2014).
Targeting strategy of Heinz includes the health conscious and foodies group of people. It
also focuses on enthusiasts and BBQ’ers. Thus it caters to the respective needs of their
target groups. It also covers young adults and single parents with its products.
Positioning strategy of Heinz is such that it focuses on achieving the common thing in an
uncommon way to achieve the success. It is superior as compared to its competitor’s brands
and follows a differentiation strategy. It also uses category positioning in the market and
creates lifetime value brand (Sahu, 2016).
TACTICS AND ACTIONS
The main tactics and actions of Heinz are to hold its leadership by injecting training and
development programs for the employees and keep designing new products in an
innovative manner.
CONTROL
An effective control is ensured by Heinz internally as well externally so as to ensure that the
marketing plan goals and objectives are duly met. An effective control ensures that budgets
and the objective are duly met so as to implement the marketing pan effectively.
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CONCLUSION
From the above assignment, it can be concluded that Heinz and Nestle use different
marketing mix strategies so that their objectives are duly met. Heinz has a huge presence in
the global markets and caters to a wide array of its products. It effectively utilises all the 7P's
of marketing mix and achieves its business strategy to expand globally and render quality
products to its targets groups. A comparison of the 7P’s of marketing mix has been depicted
in above assignment of two companies i.e. Nestle and Heinz. We have also depicted a
marketing plan of Heinz that will drive it towards achieving its company’s objectives. It is
looking forward to expanding in the emergent markets of Asia and North Africa targeting
the sophisticated consumerism and emergent markets.
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