Re-launching a product
A Heinz case study

Page 1: Introduction

Food manufacturing is becoming increasingly competitive. Consumers can now choose from a wide variety of products. Choice and price competition means that manufacturers can no longer rely on customer loyalty. Moreover, consumers are now more experimental in their eating habits and, therefore, less predictable. Even a household name as well known as Heinz is subject to the same market conditions as...
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Page 2: 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 focused on two key areas: firstly, how best to appeal to consumers in their 20s and 30s; and secondly, to...
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Page 3: Promotion

In March 2000 Heinz launched a £10 million campaign involving: radio and television advertising posters and press a dedicated internet site sponsorship deals promotions campaigns public relations and sampling campaigns. Each medium shared the same unifying theme: “Any Food Tastes Supreme With Heinz Salad Cream”. Posters, press, magazine and bus-side advertisements accompanied...
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Page 4: Product life cycle

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. First, there is the introduction stage, followed...
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Page 5: Marketing mix

Another marketing idea of use in the analysis of how Heinz treated its Salad Cream brand is that of the marketing mix. All goods and services are said to have a marketing mix, which usually involves four aspects. These are its: product price promotion place. The product involves all its particular features and benefits. It can be seen from the Salad Cream campaign that a decision was taken not...
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Page 6: 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 mobilising the talents of a campaign team, which then set about re-defining the range of uses to which Salad Cream can be put. The marketing theories which help explain Heinz’s actions are to be...
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