Report: Kraft Heinz Marketing Mix Analysis in the UAE Marketplace

This report offers a detailed analysis of the Kraft Heinz Company's marketing mix, focusing on its strategies within the UAE market. It begins with an introduction to the Kraft Heinz Company, its history, and its position as a major FMCG player. The report then delves into the four Ps of the marketing mix: product, price, place (distribution), and promotion. The customer analysis section examines the target market, consumer behavior, and decision-making processes. Product analysis covers tangible and intangible benefits, packaging, and product assortments. Price analysis explores pricing strategies, discounts, and demand elasticity. Distribution analysis details major channels, merchandising, and online presence. Finally, the promotion analysis discusses various communication strategies employed by Kraft Heinz. The report also references the company's marketing activities, product innovations, pricing strategies, target markets, and competitive landscape, providing a comprehensive overview of Kraft Heinz's marketing approach in the UAE.

Running head: INTRODUCTION TO MARKETING
Introduction to marketing
Name of the student
Name of the university
Author’s note

1INTRODUCTION TO MARKETING
About the Kraft Heinz Company
The Heinz Company was established by John Heinz in the year 1869. The story of Heinz
ketchup started in Australia in the year 1880. The Americans miners brought the Heinz taste to
the Australian people for the first time. The first product of the company is the horseradish, and
after that the company introduced the tomato sauce, which is still a successful product for the
company. The Kraft Heinz Company is the world’s one of the largest FMCG company. In 2015,
the Kraft Foods Group Inc. Got merged with the H.J. Heinz Company and started operating as
one company. The merger made the company the fifth-largest FMCG Company with annual net
sales around $26 billion. The core business activities of the company are to provide customers
with healthy food and beverages. The different products of Heinz which remained to be the
known products for kraft Heinz as well are Heinz tomato ketchup, Heinz mayonnaise, Heinz
infant desserts, Heinze women drinks etc (Bao and Chang 2018).
Marketing Mix
The four Ps of the Heinz marketing mix gives details about the company’s marketing
strategy. The marketing mix of the company gives details about the pricing and promotion
policies of the company. It also explains about the distribution strategy and the target customers
of the company. The product mix of the company shows the presence of several renowned
brands of the FMCG industry. Heinz one of the popular brands is complan which comes with a
different flavour and nutrients contents. The product is basically designed to facilitate the proper
growth in children. Some of the other products are Heinz tomato ketchup, Kraft cheese, Glucon
D, Nycil Powder. The products which are widely sold internationally are Mayonnaise and
ketchup. The products of the Kraft Heinz are known for the social responsibility they follow by
providing different health care products (Simanjuntak 2016).

2INTRODUCTION TO MARKETING
Marketing Activities
The company is increasing the major contribution of the company’s funds in the media
for marketing its products. The product brands which contributes significantly to the profit of the
company are promoted through media. The company’s main focus is to produce products which
are consumer-driven. So it directly promotes its products by giving ads on televisions and
newspapers. If the marketing strategy for the products which originally belonged to the Heinz
company is seen like Heinz ketchup. The company promoted the benefits of the component
lycopene available in tomatoes to make the customers aware of the health benefits of the ketchup
(Akman and Özcan 2016).
Product and Services
The company has more than 200 brands with which the company operates and compete
in more than 120 food and beverages. The product strategy of the Kraft Heinz is to produce wide
category consumer-driven foods and beverages. The product mix is very large giving several
choices to customers. The categories of product that the company is providing in different
countries are condiments and sauces, cheese and dairy, desserts, toppings, baking, ambient
meals, coffee, refreshment beverages, frozen and chilled meals, meats and seafood, infant
nutritious food, nuts and snacks etc. the company has several foods and beverages brands which
are produced by following a customer-centric approach. The company is engaged in introducing
new innovations in the food industry and is significantly dedicated to the sustainable growth in
the health of its customers. The recent innovations of the company are frozen pizzas with
different flavours such as cauliflower crust. The different styles of the pizzas are pepperoni,
cheese and roasted vegetables. The other innovations are Hershey’s Milk Chocolate, Reese’s
Peanut Butter Cup etc. (Akman and Özcan 2016).

3INTRODUCTION TO MARKETING
Pricing Strategy
The Kraft Heinz also introduces the low pricing strategy for many products. The
aggressive pricing strategy is used to compete with market competition. The Kraft Heinz adopts
a reasonable and fair pricing policy for its customers. The customer base of the company is more
price centric. Therefore the company focuses on keeping the price as low and reasonable to
sustain the loyalty of its customers. This practice gives a competitive advantage by making the
product easily available to its customers. However, the pricing strategy is significantly affected
by the present market condition and the existing competition in the market (Aldrich et al. 2017).
Exiting market or place
Kraft Heinz sells its products in the international market. The countries which included in
the market are Australia, Germany, Belgium, Ireland, India, Brazil, Indonesia, Canada, Italy,
Greater China, Japan, Korea, Mexico, Middle East, Denmark, Finland, New Zealand, Poland,
Norway, Russia, Spain, Sweden, UK, US and Netherlands. The companies are successful in
reaching to different corners of the international market because of the wide availability of the
product line and product brands such as Kraft, Heinz, Oscar Mayer, classic, Velveeta, smart
ones, ABC, Caprisun, Watties, Kool-Aid, Planters, Honig, Pudliszki and many more. The
company is in the business of food and beverages for more than 150 years. The company’s
vision is to be the best food company in the world and growing a better world by following its
sustainable policies. The existence of the several brands and the goodwill of the company for the
quality in different countries shows that the company is successful in its vision statement (Dadzie
et al. 2017).

4INTRODUCTION TO MARKETING
Target Markets
The products that are delivered by the company uses different channels from retails to
wholesalers. The supply chain management of the company includes different stores of
groceries, drugs, bakeries, mass merchants, convenience stores, hospitals, health care centers,
restaurants etc. The company sells its products also using an online platform. The largest
customer of the company is Walmart Inc., which accounts for the company’s majority net sales,
that is around 21% of the total net sales in 2018. The company has customer bases in different
companies like US, Canada, EMEA. The largest customer segment is in the US which accounts
for 49% of the net sales in 2018. The demography of the population that the company targets are
basically children and teenagers for tomato ketchup because the company knows that children
love sauces. In addition, the target population for the mayonnaise is the people who are between
the age group 25 to 30 who uses this product in the breakfast and snacks preparation (Lee 2020).
Close Competitors
The products of the Kraft Heinz are sold worldwide and faces stiff competition from
different companies in the competitive market place. The number of retailers in the food and
beverages industry is increasing every day. Thus the competitors for the company include
different companies of food and beverages industry of international market as well. The
competitive advantage with which the company compete are the quality of the product and the
innovations company adopts for a variety of products which makes it different from its
competitors. The company also engages in CSR by providing infants foods, women health drinks
and by increasing variants of different products with low sugar level creating more healthy
choices for its customer base. the examples of products which met low sugar target are Watchers
frozen meals (ANZ), Wattie’s frozen meals (NZ), Heinz spaghetti (AU), Heinz soups (AU),

5INTRODUCTION TO MARKETING
Heinz dressings and mayonnaise etc. the top competitors of the Kraft Heinz company are
General Mills, Kellogg, Kerry, Danone, Mars, Nestle etc. these are the company’s which are also
leading businesses in the field of food and beverages (Michael et al. 2017).
The company is the world’s largest food and beverages company and is continuously
engaged in improving the market by developing newer techniques and innovations in the food
and beverages industry. The company has many competitive advantages like a strong customer
base of households. The company sells its products to different food companies like Walmart.
The company is actively expanding its customer base and product line by continuous efforts in
the innovations for introducing a new product line.

6INTRODUCTION TO MARKETING
References
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7INTRODUCTION TO MARKETING
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