Heinz+Questions - Mandatory Case study for Marketing PDF

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Mandatory Case study for Marketing...

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Spring 2019

BUS360 – 207

Name: __________________

Heinz in Emerging Markets You would have read the “Heinz” article. Please answer the following questions concisely, but with enough “meat” to ensure you’ve thoroughly answered the questions. 1. We used the following framework to help a firm evaluate a market before deciding to enter it:

Describe ONE example of each factor from the reading (be sure to explain the factor and/or explain where you found it – “…on p.48, the following phrase is a good example of an economic factor…” (4 points)). a. Economic: The one example of economic analysis I will be using could be found on p.49. When the author is discussing the purchase of “Quero” in brazil and “foodstar” in china. They purchased the two companies to use them as leverage in already successful markets. b. Infrastructure: My example for infrastructure will be using the samle example from above on p.49. Heinz had purchased the two companies in order to propel their products into new regions and channels that will down the road open up more opportunities and expose the surrounding areas to new products and new experiences. Which will build the brands reputation in that region.

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Spring 2019

BUS360 – 207

Name: __________________

c. Sociocultural: For this example I will be focusing on the paragraph on p.50 discussing the risk they took when expanding to Indonesia. They discussed the risk that came with merging to that region as it was just now becoming a civilized democratic country. And some were even weary about bringing an American Company to that region during that time. But with risk there is reward and because of that they are now seeing 400 million dollars in business revenue from that specific region.

d. Government actions: The example I choose for this one will be found p.50 as well. When they were discussing how they had to build relationships with other countries. The Ceo discussed how he attended a lot of banquets in china to build relationships with the government officials over there. Building those relationships with china before had come with many rewards and honors. Which also help propel their company in those certain regions.

2. Give an example each from the reading of how Product strategy, Pricing strategy, and Place strategy had to be modified for the global market. (3 points) a. Product Strategy In the case study we see that Heinz had to compromise with the different countries and how their product had to evolve in comparison to here in the united states. In the case study on p.48, when they discuss how ketchup tasted different due to what it was made with> This is a unique product strategy because they found the difference in ways to provie the product like making it with bannanas because that’s an abundant product in their region and that what the people are used to eating.

b. Pricing Strategy The pricing strategy from the case study I found unique is found on p.50 where they discuss the sizing of their products and how they sell smaller portions at cheaper prices in different regions due to the people of that region being able to only afford certain price points, etc.

C. Place Strategy

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Spring 2019

BUS360 – 207

Name: __________________

Place strategy example would be found on p.50 as well, as they describe the “squeeze bottles” and how these products in smaller western countries are starting to make a huge market. They are also being able to make these products with a smaller pollution rate and use more plant based products.

3. Please explain your understanding (write a paragraph) from the reading, of why American companies often feel the need to go global. (3 points) I feel that most companies in America that have a successful product might want to target other countries due to their need of something newer. Say for instance companies that produce clean drinking water purifiers like Brita. These products have become a huge success in America because we people often like to know what we are putting into our bodies, and don’t want to put anything that will harm us down the road into us. This company may see a greater purpose to their product, like deploying it to children in less fortunate countries that don’t have adequate resources to provide drinking water. This product would be good to globalize due to the fact that there is a greater purpose and can save many lives. With them doing so it will shed good light on their company and bring awareness to the causes they are helping. Which will help drive sales in more modern countries due to the fact that they are now seen as a humanitarian corporation that helps out those in need.

4. You are the global brand manager for Heinz ABC. Your job is to successfully bring ABC chilli sauce (sambal oelek) to the US market from Indonesia, where it is very successful. Come up with a plan to market it here (10 points). You will want to mention: a. who to target (what is the best way to present (“position”) the product to US consumers?); Target group would have to be those in the south where chili and hot foods are very prominent, such as those cultures who love Cajun food, or those states along the southern border where chili sauces and seafood go hand in hand with eachother. b. what the product would look like when launched here (product strategy) including its packaging, size, and uses of the product (you may want to look at the competition), The product would most definitely have to be sold in a trial size to test the market and buyers. Once the product has that built up reputation then I would see the need to offer various sizes and different varieties. c. a suggested price,

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Spring 2019

BUS360 – 207

Name: __________________

The suggested price for such and item would have to compare to already successful brands in the area. I would target the price to be a cheaper price which will compete with the more expensive well reputable brands. d. how the product would be advertised/ promoted so that the target market hears about it, and We would have to advertise the product as the next greatest chili sauce. Do a video showing how great the sauce can be used in various dishes and show what kind of crowds would love the product. e. where customers could buy it. We would sell it anywhere from big retailers to get the feet wet, all the way down to the small shops and restaurants that are a common in the region.

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