How the new or existing product/services enables the business to meet the need of actual and potential customers
Within this report I will produce a marketing report about Heinz baked beans. I will attempt to answer all the criteria and compare with other brands of baked beans such as Heinz and Nettos own brand baked beans.
The company and their product
The company I will be doing this report on is Heinz. Heinz is the oldest manufacturer of Quality baked beans in the world. It is also the most famous Baked beans name.
The history of the Heinz company
The Heinz Company and brand name has a very long history that began in 1869 by a man named H.J. Heinz. H.J. Heinz and his family use to make horseradish, which is chopped up green radish in a jar. They made good quality products and became very popular. The Heinz company kept growing from a local town to a national name and then sold its products internationally. The Heinz shop use to bring a few thousand pounds in revenue but is now worth eight billion pounds.
Product: Heinz baked beans
Price: 30 p a tin
Promotion: Billboards, public events, printed on leaflets of individual retailers.
Place: Mainly in Supermarket outlets
– The Heinz company isn’t planning much when it comes to their Heinz baked beans because of it’s success. Heinz takes adventurous campaigns on behalf of other Heinz other products such as their Ketchup and Mayonnaise. Among the many objectives of Heinz is to once again engage with the public especially with the younger generation and they want to remind the generation that grew up watching the BEANZ MEANZ HEINZ adverts that their product is still here.
– Heinz adopted a new cover for their Baked beans in order to recreate the image of the product.
Heinz target market include the following:
– Senior Citizens
– Poor Students
– People who don’t know how to cook
– Large families
Senior citizen purchase Heinz beans because they grew up eating it and eating tomato soup from cans. Poor Students also buy it because its cheap and because it fills their tummies. For professional or other people on the go, a baked bean is good because it doesn’t take long. Large families are the biggest purchasers of Heinz baked beans because it a nutritional breakfast for children before they go to school.
The Product I will be comparing is Heinz Baked beans which is not a luxury product but is a cash cow. Baked beans are eaten by a lot of people for breakfast. However it is very popular with University student as a quick meal on the go. Baked beans is a nutritional meal and is eaten by all kinds of people. The baked beans market is very competitive because there are many companies competing for the same market. Although Heinz doesn’t have retail outlets it still has the most popular brand of baked beans.
The Four P’S
The 4Ps are the ideas to consider when marketing a product. They form the basis of the marketing mix. Getting this mix right is critical in order to successfully market a product. The 4Ps are
If market research is carried out effectively, a company can plan a promotion for the right product, at the right price, and to get it to their chosen market, in the right place.
Now look at the 4Ps in more detail.
No matter how good the product is, it is unlikely to succeed unless the price is right. This does not just mean being cheaper than competitors. Most people associate a higher price with quality, so you would expect to pay more for a Rolls Royce than say a Toyota. Heinz baked beans has to be the right price or else now one will buy it.
Skimming pricing. This is a pricing strategy for a new product, designed to create an up-market, expensive image by setting the price at a very high level. It is a strategy often used for new, innovative or high-tech. products, or those which have high production costs which need recouping quickly.
Penetration pricing. This is a pricing strategy for a new product, designed to undercut existing competitors and discourage potential new rivals from entering the market. The price of the product is set at a low level in order to build up a large market share and a high degree of brand loyalty. The price may be raised over time, as the product builds up a strong brand-loyalty.
Prestige pricing. This strategy is used where the business has a prestigious, up-market image, and it wishes to reflect this through high prices for its products (e.g. Rolls Royce).
Demand-orientated pricing. This method of pricing involves setting the price of the product at a level based upon customers’ perceptions of the quality and value of the product.
Competition-orientated pricing. This method of pricing ignores both the costs of production and the level of customer demand. Instead it bases the price level on the prices charged by the competitors in the industry – either undercutting the competitors, charging a higher price, or charging the same price. ‘Going rate’ pricing is the term used to describe a business charging a similar price to competitors for a similar product.
The marketing mix consists of the 4 Ps: Product, Price, Promotion, Place.
The product is the most important aspect of the marketing mix.
The product I am writing about will be Heinz Baked beans.
(Post picture of Heinz baked beans here)
Heinz Baked beans does not contain any animal products, and never has in the more than 125 years since it was introduced. “Natural flavoring” refers to herbs and spices that are derived solely from plant sources.