Heinz Ketchup: Segmentation and Positioning

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The chosen brand

The brand that our team has selected is Heinz Ketchup. Over the 150 years of its existence, this ketchup became popular worldwide (Heinz, 2022). Indeed, Heinz ketchup is described to contain only the juiciest, ripest tomatoes (Heinz, 2022, para. 1). This brand varies in its colors, flavors, types, and purposes. For example, the available products include classic, health and wellness, and flavored varieties (Heinz, 2022). This particular brand was chosen because we believed that the strategic marketing plan of this company used good positioning, targeting, and segmentation to promote this product. Still, out team would alter the design of its ketchup in the health and wellness category to highlight the fact that Heinz is following the popular trend and distinguish these products.

Heinz Ketchup Packaging 
Figure 1: Heinz Ketchup Packaging 

The product repositioning

Our team will specifically focus on ketchup in the health and wellness category because we think its design should be altered to make it more recognizable. The current packaging bottles have the same size and colors as other products (Figure 1). The only difference is in the description stating whether sugar, salt, or artificial sweeteners have been added. Although the team understands that people interested in healthy nutrition will read these descriptions, our team wants to target more customers to increase sales of this ketchup. The new packaging will be done in a thinner rectangular-shaped plastic bottle of green color to indicate that it is an organic and healthy choice. Sugar in these products will be replaced with honey, and no artificial sweeteners will be added. All this information should be made visible by creating a unique red stamp on the bottle with ketchup.

Customer Segmentation

Geography, Demographics, Psychographics, Benefits Sought and Usage Rates

Bases for Segmentation Explanation/Description
Geographic The focus will be on Philippines where the climate is primarily continental. The population density ranges in the target country is 377 people per square meter (World Population Review, 2022).
Demographic Since many people buy ketchup, this product has a broad age segmentation from adolescents to older adults.
Traditional: no gender segmentation.
Health and wellness products are usually more expensive; hence, Heinzs target consumers, in this case, are people of middle- or high-income groups.
Multicultural
No family life-cycle segmentation since people of all ages or relationship statuses are targeted.
Psychographic People who are interested in healthy nutrition.
Rational
The target customers may be students, office workers, entrepreneurs, or retired individuals, but their shared belief is that they all live healthy lifestyles, exercise, and make healthy food choices.
Benefit Segmentation They want to add an exceptional taste to their food without potentially harmful additives.
Usage-Rate Segmentation Former: people who lost employment.
First time: individuals who only started the journey of healthy eating.
Light or irregular: people who want to try different flavors.
Medium or heavy: individuals who are consistent with their diet.

The Primary Target Market for the Product

Based on the evaluation in the table above, the team believes that the target for Heinz Ketchup in the health and wellness category are people who live in Philippines. These customers range from early adolescence to older age, and many of them belong to the middle- or high-income groups. Their choices are not related to their gender or marital status. Furthermore, most are interested in healthy nutrition; thus, they select this product regularly.

How the Product Repositioning Fits the Brand

Repositioning this product will remain within the frames of the companys core values, and it will attract more customer attention. Our team believes that this alteration to the brand will increase Heinzs profit because selecting healthier products is no longer only a necessity but a popular trend worldwide. In fact, making ketchup bottles thinner is a marketing strategy to target individuals who wants to be lean and healthy.

Actions to build customer relationships

Heinz has always strived for excellence in manufacturing its products; hence, the company has gained the loyalty and trust of its customers. The firm keeps the target audience engaged promising good taste, superior quality, and no harm to health. Moreover, Heinzs marketing campaigns often target family values, building warmer relationships with its consumers and simultaneously priming them to choose ketchup that was shown to highlight essential elements of ones life.

The use of CRM technology to assist with building a relationship

Heinz uses customer relationship management (CRM) to build strong relationships with its customers. Indeed, CRM allows to establish communication channels with clients and manage customer-centric information to improve commercial results (Guerola-Navarro et al., 2021). It includes tools like artificial intelligence, project management, analytics, and contact center automation to obtain data on consumers preferences and offer them a more comfortable shopping experience (Chal et al., 2020). For example, Heinz uses the Repsly platform that makes its products easily recognizable and searchable on the web using various software (Repsly, n.d.). This tool will help assess the market and change the marketing campaign based on users preferences.

Salespeople play an essential role in selling the product to the end consumer by presenting information about the benefits of choosing this specific ketchup in the correct manner. Since Heinz tries to maintain its reputation on the market, any issues associated with the products are quickly resolved through customer service. Lastly, the company has always strived to create marketing campaigns that resonated with the consumers. For instance, their most famous slogan, 57 varieties, which was supposed to indicate a lucky number (Heinz, 2022, para. 1). It means that Heinz is not only a corporation that sells food products but also an organization that wants to emotionally connect with its customers. Overall, by offering high-quality products that are not harmful to human health, this firm intends to improve population well-being.

References

Chal, W., Ehrens, T., & Kiwak, K. (2020). CRM (customer relationship management). Web.

Guerola-Navarro, V., Gil-Gomez, H., Oltra-Badenes, R., & Sendra-García, J. (2021). Customer relationship management and its impact on innovation: A literature review. Journal of Business Research, 129, 83-87. Web.

Heinz. (2022). The complete history of Heinz. Web.

Repsly. (n.d.). How Kraft Heinz gets instant insights on the field sales execution nationwide. Web.

World Population Review. (2022). Countries by population density. Web.

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