Staying ahead by meeting changing consumer needs
A Heinz case study

Page 1: Introduction

Consumers’ buying habits reflect their personality, income, age, lifestyle and aspirations. What people want to buy changes over the years. Many consumers constantly seek out new products that meet their changing needs more closely. This is particularly true whenever consumers pursue the pleasures of food. To grow their business profitably, companies must constantly review their product...
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Page 2: The product mix

The product mix is the complete range of products produced by a company. When managing a large range of products serving several markets, firms must develop ways of analysing the performance of these products. Changes in consumer tastes mean that even though products such as Heinz Tomato Ketchup have staying power, there is always a demand for new products. Refreshing existing concepts through...
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Page 3: New product development

New product development (NPD) is a sequential process of finding ideas for new goods, turning those ideas into commercially viable additions, replacements or extensions to existing product lines. Heinz knows that the innovation process depends on generating a stream of new ideas. These can come from various sources eg from consumer feedback, employees, in-house brainstorming sessions and market...
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Page 4: Organic products

Heinz recently changed the dynamics of the market for organic foods. When it launched its first organic range of baby food, Heinz addressed the concerns of many parents. The initial range of 12 products heralded the first arrival of a major brand into the organic sector, providing a wider choice of baby food. Heinz has also launched organic versions of some of its icon brands, including Tomato...
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Page 5: New partnerships

Successful firms are always looking for creative partnerships that offer benefits to all parties. Heinz recently joined forces with Walkers to create a new and unique flavoured crisp: Heinz Tomato Ketchup flavour. This type of innovation brings together two well-known brands, enabling a food manufacturer like Heinz to extend out of its traditional markets. New promotions To serve fast-moving...
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Page 6: Conclusion

Through new ideas, constant innovation and development of its core icon brands, Heinz is able to stay at the forefront of its markets. By responding to the changing needs of consumers, Heinz has achieved a high level of consumer satisfaction. Heinz continues to enjoy the benefits of: high levels of brand awareness and customer loyalty an enlarged customer base with a constant demand for...
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