Building brand equity at Heinz
A Heinz case study

Page 1: Introduction

Organisations should learn from the past but not live in the past. This case study focuses on the way in which Heinz decided to alter the way in which it promoted its brands in order to be most effective in the market place in which it operates. In particular, it focuses on the way in which Heinz has set out to develop a close relationship with its millions of consumers through the development...
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Page 2: The changing market place

Today’s market place is quite different from that of the past. If someone who lived in the last decade of the nineteenth century were to visit a large, modern supermarket, they would be astonished at the variety of food products on sale. There is not only a great variety of products, but also a wide range of similar products. Additionally, in most towns there are several supermarkets to...
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Page 3: Marketing strategies

Heinz traditional approach for many years has been to engage in above-the -line advertising of its lines, mainly through television. However, 1994 saw a significant change in its approach. Heinz continues to use television advertising to support the umbrella ‘Heinz Brand’ i.e. the synergy of its 360 lines. However, it has significantly moved into direct marketing as a targeted approach...
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Page 4: Relationship marketing

In her influential 1991 book ‘The Popcorn Report’, the American marketing guru Faith Popcorn charts the rise of consumer bonding or relationship marketing. The principles she identifies are particularly relevant to Heinz’ move into direct marketing - eg:'We do need to build relationships with our customers, to create a dialogue, expose them to our corporate values, establish a...
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Page 5: Developing a direct marketing approach

The primary direct marketing tool which Heinz has Follow-on-Milks, with coupons and samples. used, is its consumer magazine called Heinz 'At Home'. This magazine is published several times a year and mailed to households from a database of over four million names. The names and addresses of these households were collected using an existing database of consumers who had responded to previous...
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Page 6: Conclusion

Heinz has kept detailed records of the effectiveness of its move into direct marketing. The most informative indicator of the operations’ success, is the measurement of sales generated among recipients of Heinz 'At Home', compared with a control panel of consumers who do not. Clearly, the improvement in sales needs to be compared carefully with the cost of the operation.Results so far have...
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