1.1
In the twenty first century the importance of global marketing has obviously increased. The international brands such as Heinz need to master the global marketing strategies to compete in multiple countries. Global marketing has emerged as a tool not only to utilize the market opportunities spread across various countries but also to compete with the ever-changing market challenges. A company that fails to manage its products globally runs the risk of losing even the domestic business to the competition. Heinz, with a history of 130 years have established its brand in more than hundred countries, and continuing to compete globally.
The Heinz brand has many strengths and challenges. The company has managed to be the number one in tomato sauce market. The case study indicates that the company has achieved this through various strategies such as harvesting tomatoes in company owned farms, long term supply-agreements with farmers, unified brand identity, global advertisements and promotions, focusing on organic, eco-friendly and healthy ingredients and processing, and working with multiple distribution channels.
In spite of having a successful history, superior operational systems and brand value, Heinz has many challenges in global marketing. One of the major challenges comes from the raw material supply side. The company has a policy not to use GM crops, and to use the best ingredients cultivated organically and eco-friendly methods. The rigorous condition of using the best ingredients puts the company on a stress for ensuring uninterrupted supply of raw materials to meet the regular and seasonal demands. Second challenge is that company need to encounter many competitive conditions presented by large and small competitors in each countries. The competition is not only on the sales and market share front, but also from changing consumer preferences, distribution channels, extent of shelf space in retail outlets, merchandising support from the retailers, frequency of usage by the consumers, etc. Having operations in multiple countries, Heinz Company always has the threat of fluctuating currency values and the expert / import restrictions. The company has to manage compliance with the local, state and national government laws, in order to meet the logistic demands.
1.2
Connecting and building trust in the respective markets are important elements of global marketing. The Heinz Company shares a common understanding of the market condition and respective response at local and global levels. It sponsors school-football, conducts consumer awareness programs, etc. to be connected with the market. Another important global marketing strategy adopted by Heinz is the focus on the standardization of packages and labeling. The typography, graphics, colors, size and shape of the package, and labeling formats are standardized to give a conspicuous brand identity. Unified brand identity can help the consumer to locate the product easily while shopping in the super market / retail outlet. The company positions the role of Heinz sauce as an accompaniment to the host food of the consumer, and expects every eating table to have one bottle of Heinz ketchup. The simple strategy of standardized product for all kind of host food will help the product managers to present the product very sharply among the consumers. The company also does research in tomatoes and its constituents especially, lycopene. Building awareness about the benefits of lycopene and its presence in the Heinz sauce is another important factor that drives the global marketing effectors of the company. .
1.3
Effective implementation of a marketing campaign in one country or region does not guarantee that it will be successful in another country. Social and cultural milieu of each country affects the sales of the product. Hence, company such as Heinz must understand the social and cultural set up of the market it operates. Cultural and social analysis of a region is the study and awareness of non-economic factors that affect the sales. The ability to operate in multiple regions is enhanced by understanding of the cultural differences and its effect on the product. The success of Heinz in a particular market depends on anticipating and responding to the changes in user preferences in taste, health and wellness. Heinz sauce is not the main food item for the meal; it is an accompanying ingredient that enhances the taste of the host food. Hence, the cultural and social aspects do not largely influence the product choice. Still, the factors such as the family values, attitude towards packaged food, concern for health and wellness, meal place, timings and style, etc. affect the buying pattern of the product. Heinz may standardize the package, but need to adapt the contents of the sauce to suit the local needs of the region, such as taste, flavor, labeling information, promotional methods, etc.
1.4
As part of the Global marketing strategy for next three years, Heinz needs to do the market segmentation in terms of individual customers and ascertain the size of the market (in the respective country). The segmentation may be based on income, age, family type and size, ethnicity, life style, etc. Along with segmentation, the company must assess the market size and the expected yearly growth of the market size for next three years. The second step is to establish the distribution channel, i.e. warehousing / logistic agent, local distributor and retail outlets. The company may have to offer direct supply arrangements to large retail chains such as Wal-Mart. As the company establishes the supply chain, a market survey to know the cultural and social factors associated with the product need to be conducted. The local needs and patterns of buying of the consumer must be understood before planning any marketing activity.
Establishing sales, marketing and distribution organization is the internal preparation needed by the company. After a strong understanding of the consumers, an analysis of the existing competition must be carried out. Based on the understanding of the market, potential consumers and the competition the company must decide the product mix that is to be offered to the market. When the product line that is appropriate for market is chosen, the channel partners must attend the product and sales training. When the product knowledge is disseminated and the distribution set up is ready, the company needs to plan for launch of the product. Pre-launch promotions may be initiated at this stage. Declare the launch date of the product when all the internal preparations and the retail outlets have sufficient stock of the product. After launch of the product, review the sales strategy and adapt the promotions as per the response of the customers / market for establishing the product for next three years.
REFERENCES
Keegan, W. J. 1989, "Global Marketing Management" Fourth Edition, Prentice Hall International .
Kotabe, M and Helsen, K 2004, “Global Marketing Management,” Third edition, John Wiley & Sons.
Levitt, Theodore. 1983, “The Globalization of Markets,” Harvard Business Review, 61 (May- June).
