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HEINZ CASE STUDY
By,
Name: Zeliya D'Souza
Roll No:11427
INTRODUCTION:
 Heinz Salad Cream is made from a recipe only
developed in the UK and was first launched in
1914.
 Heinz Salad Cream, one of the companys best
known brands, was showing signs of losing its
previously high market share.
 Until the 1940s it was the only salad cream on
the market.
 However, by 1990 Salad Cream and
mayonnaise shared the market equally.
 By 1996, mayonnaise was in the lead, and by
1998 Salad Cream sales stood at 贈40 million
compared to 贈72 million for mayonnaise.
Market research
THE OVERALL MARKETING OBJECTIVES
WERE TO:
 target the 20-30 age group in particular and younger
consumers generally
 create a sense of individuality about the Heinz Salad
Cream brand that is 'quirky' and fun
 widen consumption of the product beyond merely
being a dressing for salads.
RESEARCH FINDINGS SHOWED:
 Heinz Salad Cream was associated with the lifestyle of
a past era.
 Heinz Salad Cream had an advantage over
mayonnaise in that it was thought to add flavour, not
just moisture.
 The essence of Salad Cream was that it had a
distinctive bold taste that livens up dull food.
 The Heinz name was associated with quality and
trustworthiness.
ACTING ON THEIR RESEARCH FINDINGS
HEINZ DECIDED THAT:
 It would not alter the product itself, but would re-
package it in new fluted bottles, based on the
original shape, with bright eye-catching labels to
give it a contemporary image.
 In the future, Salad Cream would no longer be
associated with just salads, but with any foods
chosen by the individual.
 Its promotion would be re-integrated in such a
way that anyone could use Salad Cream with
any food they liked.
PRODUCT LIFE CYCLE
Promotion
IN MARCH 2000 HEINZ LAUNCHED A 贈10
MILLION CAMPAIGN INVOLVING
 radio and television advertising
 posters and press
 a dedicated internet site
 sponsorship deals
 promotions campaigns
 public relations and sampling
campaigns.
Product_relaunching_Heinz case study zeliya dsouza
MARKETING MIX
Involves four aspects:
 Product
 Price
 Promotion
 Place
Product aspect of the marketing mix was left relatively unchanged.
Price aspects of the mix were altered: price was increased, because
focus group research supported the view that a price increase in
Salad Cream would be acceptable to consumers.
The advertising and promotional campaigns described above were
extensive.
Place within the marketing mix was also unchanged in terms of the
places where consumers could buy Salad Cream.
CONCLUSION
 The enormous effort that Heinz put into re-launching
Salad Cream was designed to introduce the product to
a younger consumer group, and to arrest declining
sales.
 The means to achieve this involved mobilizing the
talents of a campaign team, which then set about re-
defining the range of uses to which Salad Cream can
be put.

More Related Content

Product_relaunching_Heinz case study zeliya dsouza

  • 1. HEINZ CASE STUDY By, Name: Zeliya D'Souza Roll No:11427
  • 2. INTRODUCTION: Heinz Salad Cream is made from a recipe only developed in the UK and was first launched in 1914. Heinz Salad Cream, one of the companys best known brands, was showing signs of losing its previously high market share.
  • 3. Until the 1940s it was the only salad cream on the market. However, by 1990 Salad Cream and mayonnaise shared the market equally. By 1996, mayonnaise was in the lead, and by 1998 Salad Cream sales stood at 贈40 million compared to 贈72 million for mayonnaise.
  • 5. THE OVERALL MARKETING OBJECTIVES WERE TO: target the 20-30 age group in particular and younger consumers generally create a sense of individuality about the Heinz Salad Cream brand that is 'quirky' and fun widen consumption of the product beyond merely being a dressing for salads.
  • 6. RESEARCH FINDINGS SHOWED: Heinz Salad Cream was associated with the lifestyle of a past era. Heinz Salad Cream had an advantage over mayonnaise in that it was thought to add flavour, not just moisture. The essence of Salad Cream was that it had a distinctive bold taste that livens up dull food. The Heinz name was associated with quality and trustworthiness.
  • 7. ACTING ON THEIR RESEARCH FINDINGS HEINZ DECIDED THAT: It would not alter the product itself, but would re- package it in new fluted bottles, based on the original shape, with bright eye-catching labels to give it a contemporary image. In the future, Salad Cream would no longer be associated with just salads, but with any foods chosen by the individual.
  • 8. Its promotion would be re-integrated in such a way that anyone could use Salad Cream with any food they liked.
  • 11. IN MARCH 2000 HEINZ LAUNCHED A 贈10 MILLION CAMPAIGN INVOLVING radio and television advertising posters and press a dedicated internet site sponsorship deals promotions campaigns public relations and sampling campaigns.
  • 13. MARKETING MIX Involves four aspects: Product Price Promotion Place
  • 14. Product aspect of the marketing mix was left relatively unchanged. Price aspects of the mix were altered: price was increased, because focus group research supported the view that a price increase in Salad Cream would be acceptable to consumers. The advertising and promotional campaigns described above were extensive. Place within the marketing mix was also unchanged in terms of the places where consumers could buy Salad Cream.
  • 15. CONCLUSION The enormous effort that Heinz put into re-launching Salad Cream was designed to introduce the product to a younger consumer group, and to arrest declining sales. The means to achieve this involved mobilizing the talents of a campaign team, which then set about re- defining the range of uses to which Salad Cream can be put.

Editor's Notes

  • #4: Salad cream is eaten by a broad spectrum of consumers, but is readily substituted by other salad dressings such as mayonnaise. The number and growing popularity of food dressings in general were undermining the market for salad creams in particular. The drift away from salad cream towards dressings caused Heinz to examine its Salad Creams future. One option was to discontinue the product altogether; the other was to invest significantly in Salad Cream to give it a new lease of life. Consumer research favoured the latter. Consumers enjoyed the taste of Salad Cream, but needed to be made more aware of it.This case examines how Heinz created a marketing campaign for its salad cream which focused on winning new customers and increasing demand within the salad cream sector as a whole.To help explain the success of the campaign two key marketing concepts will be used: the marketing mix, and product life cycles. These will be covered once the market conditions and campaign details have been examined.
  • #7: Research focused on two key areas: firstly, how best to appeal to consumers in their 20s and 30s; and secondly, to establish just what perceptions consumers held about Heinz Salad Cream. Research findings showed: It was decided, therefore, that a major investment was needed to introduce a whole new generation of consumers to the product. It was also hoped to win back those who may have deserted Salad Cream for other dressings.
  • #8: Clearly, the campaign team had built its marketing objectives on the findings from the research. The next step was to decide upon the most effective way to promote the product.
  • #10: An important marketing concept is that of product life cycle, sometimes referred to as simply PLC. All products go through a life cycle. Starting with the product first being introduced into a market, to the point when the product is removed from the market, it is said to go through various stages. These stages refer to its popularity and sales.
  • #12: Each medium shared the same unifying theme: Any Food Tastes Supreme With Heinz Salad Cream. Posters, press, magazine and bus-side advertisements accompanied the television campaign. TVA new advertising campaign was launched on national television in April 2000. Humorous advertisements were designed to illustrate how the young and young at heart could turn dull food into a tasty