Re launching a product


 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 lesser known manufacturers. Heinz Salad Cream, one of the company’s best known brands, was showing signs of losing its previously high market share. The salad cream sector as a whole was in decline. Competition from new, or substitute products, particularly mayonnaise, had over-taken Heinz Salad Cream’s position as the number one choice for salads. Heinz Salad Cream is made from a recipe wholly developed in the UK and was first launched in 1914. Until the 1940s it was the only salad cream on the market. The 1950s and 1960s saw the Salad Cream sales peak.  However, by 1990 Salad Cream and mayonnaise shared the market equally. By 1996, mayonnaise was in the lead, and by 1998 Salad Cream sales stood at £40 million compared to £72 million for mayonnaise. The market for salad dressings is worth approximately £129…

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