A MARKETING PROJECT REPORT

On

Heinz Ketchup

(2015-2016)

Under the Guidance of:

Submitted By:

Mr. Sushant Nanda

Wendell Godinho

(Professor, UBS)

Student ID 20095341
Module No. MBA 7003

Universal Business School,

Kushivili, PO Gaurkamath, Vadap,
Karjat - 410201, Dist. Raigad, Maharashtra

Table of Content
Sr.

Topic

Page No.

01

Abstract

01

02

Introduction

01

03

The overall market size, growth trends and future projections

01

04

The main market segments; Targeting, Positioning

03

05

Major macro and global environmental influences on the market

05

and Critical Success Factors

06

Industry Analysis along with Porters 5 Forces Model

06

07

Competitor Analysis

07

08

Analysis of 4Ps of Marketing with their Strengths & Weaknesses

10

09

Key Findings & Recommendations

12

10

Limitations For Marketing Research

12

11

Conclusion

13

12

Bibliography

13

1.Abstract
Tomatoes ketchup are now days selling at a very fast pace into industries, institution, and not forgetting the
house hold use which is also a major contributor. One uses ketchup in all most every product of what is
consumed directly or in a way indirectly today (Chinese Foods). Mostly ketchup is served as an accompanist
with French fries, burger, hotdogs etc.
Globally now the ketchup has moved from USA and France to the Middle East and now is available all
round the world. The ketchup industry holds USD 3.3 million in 2015 (CNBC, 2013). The reason for this
is because of the growing trend which is moving to a fast food model, Do It Your Self and because of the
change in the eating habits.

2. Introduction
Heinz headquartered is located in Pittsburgh, which is in Pennsylvania, USA. The headquarter is known as
the largest and is father of all the factories located all round the world. Due to its organic and healthy
ingredients which are used in preparing the ketchup it is present in more than 96 countries all round the
world and when speaking about the position, and in more than 70 countries they have been awarded first or
the second when it comes to market position.

3.The overall market size, growth trends and future projections

It was Henry J. Heinz who founded it in 1869. Heinz started a factory on six areas, and today it is present
in more than 200 nations and domains. Heinz is ranked No 1 in the US and has overall industry of 50%;
Ore-Ida mark held 46% in the 2003. (Heinz.com, 2016)

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On 14 February 2013, they accepted Berkshire Hathaway & 3G Capital for the price amount of $23 billion.
On the 25 March, 2015, Kraft merged with Heinz and is now the fifth largest food party in the world. This
resulted in a obtaining 46,195,652 shares of standard stock at an cumulative cost of $461,956.52, the result
was the expansion of stake to 52.5%. On 2 July, 2015 the organization completed merged.

Source : 2012 H.J. Heinz Company Annual Report

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4.The key market segments; Targeting, Positioning

4.1 Market Segmentation
The Division has a 4 noteworthy variable they are geographic, demographic, psychographic and behavioral.
Heinz tomato Ketchup needs to apply each one of these variables effectively.
1) Geographic
The main Geographic segmentation are nation-state, nation district, city size, thickness and atmosphere.
Heinz Ketchup use city size, thickness and nation locale more than different variables (Zandberg, 2014).
While they are utilizing suburb and little urban communities in U.S.A, Heinz Ketchup is using a very
amazing kind of ads which is utilizing country and green terrain as a part of Europe. Heinz Ketchup assumes
to accomplish a massive urban areas and western part of the Turkey's clients since; Fast food consumption
rate is more than opposite side of the Turkey. (O'Neill, 2001)
2) Demographic
Quality is the most important with respect to branding of Heinz. Here the focus is laid towards the center
to high-class people who are willing to spend more on the brand name rather than a producer brand. So by

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doing this it has raised to 47.32% aggregate income account in the state of USA("H.J. Heinz Organization
Deals by Geology," 2015).

3) Psychographics
Ketchup is a sauce loved by individuals by all ages, civilizations, and social classes. The Heinz qualities
are superiority, honesty, consumer first state of mind, and growth. The organization's yearly report states
that behind ketchup deals make up 35.43% of the aggregate income ("H.J. Heinz Organization Fragments,"
2015). From this we come to know that the buyers are investing less energy in cooking. Recommending
individuals with common employments, or a huge family, or even single moms who filt in too might benefit
from this.
4) Behavioral Division
Heinz aims at the potential clients in Market in a way that are saying their main target are young people 2034 years who are known as "super fan" in the fast food era. (Anon, 2016,68) Heinz is seen as, natural and
quality elements of the Ketchup and are loyal to the purchasers. Additionally, Heinz Ketchup also states
the dependable for 20-34 years of age buyers also symbolizes readiness and fun feeling for changed people
because of disposition toward item variable.

4.2 Target Audience

All age groups, middle and upper class Institutional clients

4.3 Positioning Map

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5. Major macro and global environmental influences on the

market and Critical Success Factors
Political FactorsHeinz as a Company has to know the consumer laws which are more important and its not over just by
knowing but they need to promote consumer rights. Environmental legislations issues may also be because
Heinz they themselves grow the crops for the products. (Heinz.com, 2016) And so on the part of regulations
environment can affect the raw material obtaining. This brings us to a stand that the company has to obey
all the eco-friendly laws where they are operating and where they have their fields.

Monetary Variables:
For finding raw materials, the agricultural sector may cause some crisis to Heinz Company. And so Heinz
co-operates with superstores. Due to some external factor the prices of the external product drops and so
this in turn makes the vendor pay low price to Heinz since they need to compete in the race of completion.
Apart from these, increasing fuel prices has an effect Heinz since Heinz not only distribute their product to
the supermarket but also to hotels and restaurants.

Social Components:
For Heinz, shifting taste and conduct of buyer and new forms can be measured by social elements. Nutrition
and taste conduct can transform as shown by societies and years. Consequently, Heinz can modify its item
by seeing these evolutions.

Mechanical Elements:
Directly or indirectly the technological segment affects the Heinz. While speaking of E-commerce and
blogs Heinz need to send some information on the to the customers. In view of reducing cost of raw material
they need to improve the technology in the fields.

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6. Industry Analysis along with Porters 5 Forces Model

Analysis of the Competitive Advantage/ Porter Five-Force Model

6|Page

7. Competitor Analysis

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8. Analysis of 4Ps of Marketing with their Strengths &

Weaknesses
Product
Heinz has several makes, for instance ham sauce, sweet stew, mushy tomato extra cheddar sauce, salt
reduced, tomato sauce no additional salt and BBQ sauce. Further, the upper cost equally similar implies a
higher superiority, hence the cost can make the clients believe that the item couldnt care less about cost
too.

Price
Price Sector is fairly High priced Rs.125 (1kg) in relation to other players in the market.

Place
There are 4 channels of advertising for this single items.

1. client by items from the maker straightforwardly.

2. producer compromise items to merchants, and customer obtain items from merchants.
3. producer transports items to suppliers and transport to merchants, and later merchants
offer items to consumers.
4. specialists or agents based the third way.
Heinz fits best the third way.

Promotion
The Advancement techniques for Heinz is ad. Heinz ads placed in the TV, radio, Web, daily paper,
magazine etc.

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SWOT

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9. KEY FINDINGS & RECOMMENDATIONS

1. PRODUCT
Todays era speaks of the busy world and so everyone wants an instant quick fix so meals to need
a fix and thats how the fast food comes into the picture. Since everyone is craving for fast food
there is a tremendous growth in the fast food meals manufactures.
As far as research states that most of the people have a pull towards Kissan due to its taste hence
the company should stress on the taste, thickness and colour factor.
They need to ensure that the product is available in local grocery shops
2. PLACE
Most of the consumers associate ketchup as a ready to eat product which is a plus point and so
around 38% people buy Heinz from retail outlet. Where in the company need to take into account
that local stores should not be marginalized.
3. PROMOTION
The company stress and increase the media awareness : Television ads in order to promote the
brand. Squeeze pack should be highlighted in order to have an effect on awareness and this will
have a positive effect on the market share.
4.PRICE
The price value should for the product have to be given a thought since the customers

perceive

it

as

very

high

ended

product.

10.Limitations For Marketing Research

Data Classifications: The data will have different parameters and theories that had taken
while gathered data.
Error of Data: Since we have not gattered the data our self the data will be subjected to the
one who have gather. This may me one sided data too.
Time Relaxed Issues: Since the data have been collected over the period of time the three
are chances of the data being outdated too.
May not be Particular: While collecting the data one will not get the data strait forwarded
and so have to find alternate means too.
Exclusive Issues: One may have the copy right over the data but another may use it without
the consent of the right person too.

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10. Conclusion
The six modules of the re-dispatch of Heinz Tomato Ketchup will convey more esteem and zeal to the
Sauces classification than it has found in quite a while. As more consumers all through the globe hope to
marked sauces and other manifest items to liven up their intake designs then organizations like Heinz
must snatch the open doors exhibited by international marketing practices keeping in noticing the end goal
to idea upper hand and to protected extended international business division area.

11. Bibliography
Reference to an article in a journal
1. Coane, J., Monahan, K. and Termonen, M. (2015). Hunts, Heinz, and Fries Priming Ketchup: The
Effects of Lexicality on Brand Name-Product Associations and Brand Memory. Applied Cognitive
Psychology, 29(3), pp.455-470.
2. Hecht, J. (2008). That's not blood it's just ketchup, honest. New Scientist, 200(2681), p.10.
3. Herro, E. and Jacob, S. (2012). Systemic Contact Dermatitis - Kids and Ketchup. Pediatric
Dermatology, 30(3), pp.e32-e33.
4. Heinz Kraft, K. (2004). SPICE-Models of coupled transmission lines. Frequenz, 58(11-12).
5. Jamison, J. (2000). Healthier ketchup?. Nat Biotechnol, 18(6), pp.587-587.
6. Kraft, K. (2015). Prof. Dr. Dr. h.c. mult. Heinz Schilcher der Vater einer reproduzierbaren
Phytopharmaka-Qualitt ist verstorben. Z Phytother, 36(03), p.119.
7. Morpeth, J. (1948). The composition of concentrated tomato pure and the estimation of the tomato
content of tomato ketchup. The Analyst, 73(869), p.449.
8. McDonald, R. (1993). Book Reviews : Heinz Leymann and Hy Hornbluh (eds) (1989) Socialization
and Learning at Work: A new approach to the learning process in the work place and society
Avebury: Gower Publishing Company Limited, 306 pp. Asia Pacific Journal of Human Resources,
30(3), pp.82-83.
9. M. Temesgen, (2011). Effect of tomato cultivars, honey finisher and processing methods on quality
of tomato ketchup. Afr. J. Biotechnol., 10(80).
10. Miltenburg, J. (2015). Changing a multidomestic production network to a global function network:
North America Heinz ketchup from 1960 to 2015. International Journal of Production Economics,
168, pp.267-278.
11. O'Neill, P. (2001). Funding for ketchup research. Trends in Molecular Medicine, 7(6), p.244.
12. Tomato Ketchup. (1848). Sci Am, 3(51), pp.408-408.
13. Vilgis, T. (2008). Ketchup frisch gestrichen. Physik in unserer Zeit, 39(2), pp.102-102.
14. White, N. (2014). Lessons from the Ketchup Bottle. Science Translational Medicine, 6(260),
pp.260ec188-260ec188.
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15. Zandberg, E. (2014). Ketchup Is the Auschwitz of Tomatoes : Humor and the Collective
Memory of Traumatic Events. Communication, Culture & Critique, 8(1), pp.108-123.

Reference to e-Journals
1. Boyle, M. (2008,). How Heinz is spicing up sales. Bloomberg Business (Online)23(12). Available
from: http://www.businessweek.com/magazine/content/08_36/b4098028900467.html [Accessed
7December]
2. Cordiero, A., & Stynes, T. (2010). Heinz profit rises 13% on emerging-market strength. The Wall
Street Journal(Online)3(07). Retrieved from
http://online.wsj.com/article/SB10001424052748703882304575465284048043478.html[Accesse
d 1December]
3. Heinz Completes Acquisition of Foodstar. (2010,). The H.J. Heinz Company.
(Online)13(16).Retrieved from: http://www.heinz.com/our-company/press-room/pressreleases/press-release.aspx?ndmConfigId=1012072&newsId=20101104006220[Accessed
23December]
4. H.J. Heinz Company to Participate in the 2010 Credit Suisse Holiday Conference. (2010) The
Wall Street Journal Market Watch. (Online)21(1). Available from:
http://www.marketwatch.com/story/hj-heinz-company-to-participate-in-the-2010-credit- suisseholiday-conference-2010-11-30?reflink=MW_news_stmp[Accessed 4 November]
5. Heinz Reports EPS of $0.78, Reaffirms Full-Year Fiscal 2011 Outlook for Sales, Operating
Income and EPS, Raises Operating Free Cash Flow Target 15% to $1.15 Billion. (2010)
MarketWatch - Stock Market Quotes, Business News, Financial News. (Online)3(11). Available
from: http://www.marketwatch.com/story/heinz-reports-eps-of-078-reaffirms- full-year-fiscal2011-outlook-for-sales-operating-income-and-eps-raises-operating-free- cash-flow-target-15-to115-billion-2010-11-19?reflink=MW_news_stmp>.[Accessed 2 October]
6. Rawsthorn, A. (2009,). An icon, despite itself. The New York Times. (Online)23(12). Available
from http://www.nytimes.com/2009/04/13/fashion/13iht- design13.html?ref=h_j_heinz_company
[Accessed 4 September]
7. The World's Favorite Ketchup: HJ Heinz Company Annual Report and 10-K.(2010). The H. J.
Heinz Company. (Online)23(12). Available from
:<http://www.heinz.com/AR_2010/Heinz_Annual_Report_2010.pdf>.[Accessed 27 November]

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Reference to a book
1. Smith, A. (2001). Pure ketchup. Washington, DC: Smithsonian Institution Press.
2. Verhaaf, M. (2011). The Heinz ketchup bottle. Amsterdam: BIS Publishers.
3. Creswell, Julie (2000). "Bottled Up Profits aren't flowing like they used to at packaged-goods
companies. Can green ketchup and Tuna in a Pouch save Heinz?. Oxford University Press.
4. Javier E. David (2013). "The Ketchup War that Never Was: Burger Giants' Link to Heinz". CNBC.
Pittsburgh-based Heinz commands a 60% market share in the U.S. Central Publishing.
5. McGrath, Molly Wade (1983). Top Sellers, U.S.A.: Success Stories behind America's Best-selling
Products from Alka-Seltzer to Zippo. New York: Morrow,. Press.
6. Green, Joey(2007). Joey Green's Mealtime Magic: More than 250 Offbeat Recipes Using Beloved
Brand-name Products. New York: Rodale,. Press.
7. Cooper, D.R. and Schindler, P.S. (2011) Business research methods, 9th edition, Newdelhi: Tata
McGraw Hill Education Private Limited.
8. Gupta, S.L. and Gupta, H. (2011) Research methodology (text and cases with SPSS applications),
2nd edition, Newdelhi: International book house pvt. Ltd.
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international (p) Ltd.
10. Kotler, P. (2013) Marketing Management, 14th edition, Newdelhi: Dorling Kindersly(india) Privat
limited.
11. Nargundkar, R. (2011) Marketing research text and cases, 3rd edition, Newdelhi: Tata McGraw
Hill Education private limited.
12. Porter, M.E. (2008) 'The Five Competitive Forces That Shape Strategy', Harvard Business Review,
January.
13. Saunders, M., Lewis , P. and Thornhill, A. (2011) Research methods for business students, 5th
edition, Noida: Dorling Kindersley(India) pvt. ltd.
14. Senker, C. (n.d.). Heinz.
15. Herrington, L. (2013). Tomatoes to ketchup. New York: Children's Press.
16. Socha, N. (2005). Ketchup. Poznan: Zysk i S-ka Wydawn.
17. Landau, E. (1999). Tomatoes. New York: Children's Press.
18. Lanz, H. (2012). Tomatoes. Mankato, Minn.: Sea-to-Sea Publications.

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Reference to web page/ sites and ebook

1. Heinz.com, (2016). Heinz - Ketchup. [online] Available at: http://www.heinz.com/ourfood/products/ketchup.aspx [Accessed 28 Feb. 2016].
2. CNBC, (2013). Burger Link in the Ketchup War That Never Was. [online] Available at:
http://www.cnbc.com/id/100464841 [Accessed 01 Feb. 2016].
3. Horton, H. (2015). Heinz tomato sauce no longer qualifies as ketchup in Israel. [online]
Telegraph.co.uk. Available at: http://www.telegraph.co.uk/foodanddrink/11820023/Heinz-tomatosauce-no-longer-qualifies-as-ketchup-in-Israel.html [Accessed 2 Jan. 2016].
4. Co.Design, (2013). How 500 Years Of Weird Condiment History Designed The Heinz Ketchup
Bottle. [online] Available at: http://www.fastcodesign.com/1673352/how-500-years-of-weirdcondiment-history-designed-the-heinz-ketchup-bottle [Accessed 28 Dec. 2015].
5. Porters 5 forces and the analysis of competitors. (2015). Boundless. [online] Available at:
https://www.boundless.com/users/235420/textbooks/business-fundamentals/competitiveintelligence-11/competitive-intelligence-49/porter-s-5-forces-and-the-analysis-of-competitors230-15533/ [Accessed 19 Nov. 2015].
6. Stonybrook.digication.com, (2016). Digication e-Portfolio :: Jennifer Schwartzman :: Business
115. [online] Available at: https://stonybrook.digication.com/jennifer_schwartzman/Business_115
[Accessed 28 Dec. 2015].
7. CNBC, (2013). Burger Link in the Ketchup War That Never Was. [online] Available at:
http://www.cnbc.com/id/100464841 [Accessed 20 Nov. 2015].

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