Background of the company
No firm outdid in enunciating the benefits of welfare work to consumers. Sketching in consumers’ minds a link between the conditions under which products were assembled and their final market value, made the Heinz label a household word. Unique in its success, the Heinz approach characterized consumer focused welfare publicity in two important ways. First, acute anxieties about commercial food preparation in the Progressive era encouraged food companies to advertise workplace reforms more widely than did other industries. Second, like the majority of welfare work advertising, Heinz publicity targeted middle-class women (1997).
The Heinz condiment company was founded in 1869, when twenty five-year-old Heinz began selling horseradish grown on a small plot of land in . By 1900 the company had relocated to , was employing a year-round, primarily female labor force of 2,500, and had cornered the burgeoning food preservation market through its manufacture of diverse comestibles such as baked beans, pickles, ketchup, chutney, preserves, and tomato soup (1997). From the beginning, Heinz demonstrated his commitment to employee welfare. In 1903, when many employers still regarded welfare work as a risky innovation, Heinz had already established a wide range of betterment programs. The Heinz Company believed it provided the perfect setting and people to achieve this goal. Employees’ attitudes and actions were indispensable to the company’s desire to mass-produce condiments tastier than their homemade counterparts (1997). Heinz Company is one company that introduced innovations in its market and it created commonly used products such as Tomato Ketchup, Horseradish and Sour onions.
Marketing plan
Purpose and Mission
This marketing plan intends to make sure that the company will know its current standing and its future standing, this plans intend to determine how the company can acquire a good future standing. This marketing plan is a response to the competitive threat brought about by .
Target market
The market of Heinz Company is different individuals who need all kinds of food products that suit their varying needs. This market is the one that needs various food products that will satisfy every craving one has. The market segment of the company is divided into the adult and kid segments. There are specific food products for the older people and the younger clients. The company makes sure that they cover all the segments in the society they are operating in. The company has specialized prices for the different market segment, this will ensure that the clients will have lesser doubts about taking a look at the company’s product and the products that they can afford. The target market of the company involves almost all sectors of the society. They want to provide varying food products to young or old, boy or girl.
Budget priorities
Heinz Company has the obligation to make sure that its budget priorities are intact and it does not spend more than what it is earning. The budget priority will be on the things that are really needed operating the company that includes salaries of employees, operators of the machines and other people that contribute to the production of food products; operational and maintenance expenses; rent expenses; advertisement expenses; and expenses for security and safety in the workplace. The company makes sure that there is a specific allotment for each expenditure it needs to make. Heinz Company has to choose on what expenditures it thinks are the one that needs to be urgently solved. It has to determine what are its financial priorities before allotting certain budgets for it.
Promotion/The use of direct marketing
Over the years, Direct Marketing expanded from catalogs to include direct mail campaigns, direct response print advertising, TV, radio, and the Internet. It is the most effective method of making a product or service visible and available to those people who are most likely to buy. Direct Marketing is the only form of advertising that is measurable. Direct Marketing is the perfect way to establish and maintain long-term customer relationships (2002). Some people use Direct Marketing to increase sales of a service or product they’re already marketing. Others use Direct Marketing to break into sales, and must decide what they want to sell, and to whom. With Direct Marketing, no matter what the size of a person’s business, they can form personal relationships with their customers. And in today’s impersonal world, making that connection is what will keep customers coming back again and again. When customers visit a retail store, they’re probably there to make a specific purchase, something they either need or desire at that particular moment. Even if they don’t know exactly what they want, they’re predisposed to making a purchase (2002).
With Direct Marketing, that’s not the case. When customers get a Direct Marketing piece in the mail, come across a direct response ad in a magazine or newspaper, or open up an email, they’re not automatically in a buying mode. They may not have an immediate need or desire for a Wonderful Widget, no matter how wonderful it is unless there is some compelling reason, some incentive that will overcome their sitting at home minding their own-business inertia and get them to buy immediately (2002). The Direct Marketing industry exploded when credit cards made purchasing even the most expensive items easier. Installment payment plans are always attractive, and can sometimes make a product seem less expensive than it really is. Some offers don’t even include the full price of the item. Some Direct Marketing specialists say that 40 percent of the success of a campaign comes from marketing to the right list of names. That percentage can be even higher (2002). Many marketers make the mistake of waiting until all the other steps in creating a campaign are completed before they start to think about exactly whom they will be mailing to. Choosing the potential customers first can influence decisions about a product or products and the design of the entire campaign, enabling the company to target a select group of people who are ready, willing, and able to buy what someone has to sell (2002). Direct marketing can be in a form of strategy wherein it attempts to deliver its messages directly to clients without the use of intervening media. Direct marketing can be in the form of driving purchases that has its roots on call to action.
In direct marketing, channels like mail, door hangers, e-mail, package inserts and other media are considered but not necessarily used. Direct marketing and Promotion is important to attract clients and show them what the company can offer. To promote the Heinz Company and its products, the internet, television and the newspaper will be used. The products of Heinz Company will be promoted by the internet through the website which will feature different information about a certain product, its features, its nutritional content and the health benefits one will achieve when he/she uses it. Heinz can also use the internet to promote itself by having online advertisements in different websites. The internet promotions can attract those people who use the internet most of the time. In terms of television promotions, commercials about Heinz Company and its various products are continuously aired in different channels at various times. The commercial will contain entertaining yet informative clips on what makes the product different from others in the industry. In terms of newspaper promotion, the advertisement contains a picture of the Heinz Company and different information about it. This benefits those people who travel much and has lesser time to use the internet or watch television.
Time Span
If Heinz Company wants to make sure that the threat posed by it has to create change immediately. The company needs to have time schedules that will enable it to introduce changes at the most appropriate time. The change should be done in the shortest time possible so that other aspects of the business can be given attention. The change should be done immediately and end at the most appropriate time so that the Heinz Company can see how the changes affected the company. The change should be given less than a month to transpire and the rest days will be used to determine the effects of the changes and whether there is further need of changes.
Scope
The changes that will be made by Heinz Company should cover the food industry situation and it should cover all aspects of the food products that are affected by the threat of Branston Beans. The scope of the change should not surpass the boundaries of the business. It should not create a scenario where external affairs are being violated.
Strategies that enhances Heinz’s long term relationships with its clients
The marketing environment is a complex set of interacting people, processes, situations, and technologies, including the marketing corporation that can significantly impact upon the nature and performance of the business enterprise (2001). The marketing environment has evolved during the past decade. Some of this evolution has come at the hands of marketers themselves, some from a changing population, and some from other environmental pressures (1997).Changes in the marketing environment include fragmentation of the mass market; rise of personalized buying strategies; consumers who are more knowledgeable and critical of marketing efforts; more cluttered retail and marketing communications environments; blurring of traditional boundaries among retail classes of trade and between retailers and manufacturers; increased localization and micromarketing efforts; rise of total quality management (TQM) and customer satisfaction programs; increased accountability; and marketing information revolution (1997). The evolution of the marketing environment points to the need for a shift in how marketers approach communication planning (1997). The trends in the marketing environment that might affect the company in the next few years include the rise of personalized buying strategies and the consumers who are more critical of marketing efforts. Such trend can force the company to alter its strategies in dealing with clients and it can make the company change its marketing strategies. To enhance Heinz’s long term relationship with clients it must do the following:
Increase skills in communicating with clients
The company should also increase its knowledge of communicating with the clients in the two countries to increase the company’s camaraderie with them. The company’s relationship with international clients is important because the international clients are the one that can make the international expansion successful or it can make it fail. Heinz Company should devise ways provide additional knowledge to their employees regarding how to deal with clients. The clients in what ever country they are operating have different communication skills and they use a different kind of language thus the employees should be taught on how to communicate with the clients in the native language. The employees should also know how to pronounce their language well to prevent problems with the people.
Promote healthy products
The company can promote healthy products and they must make sure that their products won’t give any problems to the ones using it. The company should take a look at how their products in various countries would be free from dangerous substances that would cause health issues. This would reduce the criticisms towards the company and it would improve their market. It would differentiate their products from what sell.
Make use of special promotional techniques
Lastly it should make use of special promotional techniques especially during days where they have low turnout of clients. There are certain days wherein the number of clients purchasing their products is low; what the company can do is to lower its rates or have special discounts or promos during these days to increase the number of clients purchasing the products.
References
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