Heinz ABC - The Value Proposition, The Evolution, and The Future PDF

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One of the biggest ketchup producers in Indonesia is PT Heinz ABC Indonesia with its flagship product, Heinz ABC Ketchup. With Heinz ABC Ketchup as one of its superior products, PT Heinz ABC Indonesia has dominated the ketchup market in Indonesia for many years....

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Heinz ABC Ketchup: The Value Proposition, The Evolution, and The Future

BUS 5112: Marketing Management Dr. Akash Mathapati November 17th, 2021

2 Heinz ABC Ketchup: The Value Proposition, The Evolution, and The Future One of the biggest ketchup producers in Indonesia is PT Heinz ABC Indonesia with its flagship product, Heinz ABC Ketchup. With Heinz ABC Ketchup as one of its superior products, PT Heinz ABC Indonesia has dominated the ketchup market in Indonesia for many years. Reflecting on the Marketing Mix: 4P’s of Marketing A marketing mix is a controllable variable used by companies to fulfill a target market (group). A marketing mix usually consists of a product offered at a price, some promotion to inform potential customers about the product, and a way to reach the customers' place (Perreault & McCarthy, 2002). Product Heinz ABC Ketchup is made from the finest tomatoes with high-quality USA standards, producing a distinctive tomato aroma and taste for more special cooking creations (The Kraft Heinz Company, n.d.). It emphasizes its advantages through packaging where it chooses the packaging color that is its trademark; it selects a color identical to red. The brand is also a weapon for Heinz ABC Ketchup by listing it on the packaging to be easily recognized by consumers. Taste determines whether a product will be liked or not; it has a sour and savory taste that can translate to a taste that all levels of society can accept. It includes an expiration label to keep consumers buying it in good condition; with this, the quality of the Heinz ABC Ketchup will be maintained. Price Price, according to Kotler and Armstrong (2012), is the number of money customers pay to obtain a product. Certain factors are considered when determining the price of a product or service: the total cost of production and marketing, the purchasing power of the target market, the customer's perceived value of the product, competitors' prices, and, of course, the company's profit margin. As a result, the price should reasonably estimate the product's utility (Olanrewaju & Deborah, 2016). For the pricing, Heinz ABC Ketchup is slightly more expensive than other competitors such as Delmonte Ketchup, Sasa Ketchup, and Indofood Ketchup. Based on the result at Shopee, Singaporean e-commerce, for 135 mL bottle: (a) Delmonte Ketchup costs IDR 4,600, (b) Sasa Ketchup costs IDR 4,800, (c) Indofood Ketchup costs IDR 5,000, and (d) Heinz BC Ketchup costs IDR 5,800. Promotion

3 As a marketing mix component, promotion exchanges information between sellers, potential buyers, and others to influence attitudes and behaviors. It is more than just a purchase. Any brand's wish and joy is to create and nurture brand loyalists and elevate them to the level of fans. The firm/brand objective will determine any firm's promotional strategies (Olanrewaju & Deborah, 2016). Heinz ABC Ketchup is one of the ketchup brands that dominates the ketchup market in Indonesia. Promotion is one of the steps taken by Heinz ABC Ketchup in attracting consumers. For example, PT Heinz ABC Indonesia advertises Heinz ABC Ketchup on an online video-sharing platform such as YouTube and television with the catchy slogan "Tomatin ABC Aja!". In addition, PT Heinz ABC Indonesia regularly holds programs as a form of support for culinary MSMEs in Indonesia, which presents collaborations in creating unique menus and prizes for participants, including training sessions, promotional prizes, and additional capital worth tens of millions of rupiah (Khoirunnisaa, 2021). Place Heinz ABC Ketchup has a large market segmentation among other competing ketchup in Indonesia. Various strategies in product distribution are carried out to reach consumers. The following is a breakdown of the distribution channels of Heinz ABC Ketchup: 1.

Modern Retail Market: Superindo, Hypermart, Hero, Lulu, AEON, LotteMart, Transmart, Alfa, Indomart, Yogya Supermarket

2.

Traditional Market: local market, warung/grocery shop

Value Proposition for PT Heinz ABC Indonesia 1.

PT Heinz ABC Indonesia is a powerful local Indonesian brand that has been embedded in the hearts of Indonesian families as a provider of soy sauce, sauces, seasonings, and processed foods.

2.

PT Heinz ABC Indonesia, a subsidiary of Kraft Heinz, has a robust international portfolio with an extensive product lineup, and most are ranked 1 or 2 in its sales area.

3.

Kraft Heinz is also known as a company that cares about the environment, improving systems and products that have positive results for sustainable environmental sustainability.

4.

Kraft Heinz is known as a company that pays attention to product quality. Heinz establishes quality standards that raw material suppliers must follow. Heinz also has an internal research unit, HeinzSeed, constantly trying to find high-yielding plant varieties.

4 How PT Heinz ABC Indonesia Has Evolved and Where It Is Heading On February 16, 1974, the company was founded as CV Central Foods Industrial Corporation (abbreviated as Central Foods) in Jakarta, Indonesia. The Chu brothers, Chu Sam Yak (Chandra Djojonegoro) and Chu Sok Sam, Chinese-Indonesian conglomerates and businessmen from Medan, founded the company. ABC Soy Sauce was their flagship product (with sweet, medium, and salty variants), then they later expanded their products to include ABC Syrup, ABC Ketchup, and ABC Sambal. The company name was changed to PT Aneka Bina Cipta Central Food Industry, or ABC Foods, in 1982. ABC's products began to lead the Indonesian market, such as syrup, sweet soy sauce, and chili sauce. These products are marketed overseas, exported to the United States, Canada, Australia, Singapore, Timor Leste, Malaysia, Brunei, Taiwan, Hong Kong, Japan, Denmark, Saudi Arabia, the Netherlands, and the United Kingdom (Windarto & Sumariyati, 2014). From what was originally only a variety of sauces and syrups, in the 1990s, a variety of boxed drinks, canned sardines, corned beef, and cooking oil were launched. As the business climate changed, in February 1999, the Djojonegoro family decided to sell their 65% stake in the company to the H. J. Heinz Company for US$ 70 million. Along with these changes, the company name became PT Heinz ABC Indonesia. With the rapid development that this company has gone through, now PT Heinz ABC Indonesia already has three factories located in Jakarta, Karawang, and Pasuruan and has thousands of dedicated, professional, and qualified employees. It serves the needs of consumers in Indonesia, Southeast Asia, and 30 other countries, which are marketed both retail and wholesale. The high dedication of PT Heinz ABC Indonesia for 47 years has been passed down from generation to generation in producing quality products and brands with high taste, high nutrition, and excellence for consumers. PT Heinz ABC Indonesia is committed to customers, and the company always tries to innovate in the products it sells and add to its marketing network for the future.

5 References

Khoirunnisaa, J. (2021, July 28). Cara Jitu Biar Bisnis Tetap Moncer di Tengah Pandemi. detikfood. Retrieved November 17, 2021, from https://food.detik.com/berita-boga/d-5660385/cara-jitu-biar-bisnis-tetap-moncerdi-tengah-pandemi.

Kotler, P., & Armstrong, G. M. (2014). Principles of Marketing (15th ed.). Pearson. Olanrewaju, O. A., & Deborah, O. O. (2016). Evaluating the use of internet as a medium for marketing and advertising messages in Nigeria. African Journal of Marketing Management, 8(2), 12–19. Perreault, W. D., & McCarthy, E. J. (2002). Basic marketing: A global-managerial approach (14th ed.). McGrawHill. The Kraft Heinz Company. (n.d.). ABC Saus Tomat 135ml. Kraft Heinz Foodservice Indonesia. Retrieved November 17, 2021, from https://www.kraftheinzfoodservice.co.id/product/160037200053/ABC-Saus-Tomat-135ml? categoryid=1000003. Windarto , A., & Sumariyati, S. (2014, August 18). Perjalanan Gurita Bisnis Grup ABC . Emen Rizal. Retrieved November 18, 2021, from https://emenrizal.wordpress.com/2010/08/16/perjalanan-gurita-bisnis-grup-abc/....