Heinz Corporation - Case Study - Product Loyalty

Essay by redzzandUniversity, Bachelor'sA+, May 2006

download word file, 3 pages 4.1

Downloaded 72 times

I became loyal to Heinz Ketchup since I was a little boy. It was the brand that my mom always bought for its great taste. Their innovative red packaging is also easily distinguished among others. Also, I have tried other products, however, I feel like they are either too sweet or too sour for my taste.

As I started my research on H.J. Heinz Company, I quickly learned that Heinz has expanded their product line way beyond ketchup and condiments. It has grown through acquisitions, support of its core categories, geographic expansion, and scrupulous attention to cost, productivity, and quality (H.J. Heinz Company)

Today, Heinz offers more than 4,000 products, a far cry from their original 57 varieties. To my surprise, Heinz's first product was not ketchup. Their first product was horseradish.

Below is a timeline with a description of their global marketing strategies.

1869 - Horseradish was introduced as their first product and the glass of its bottle was clear.

Their reason for this was while competitors extended their horseradish with fillers, concealed from view in green glass jars; Founder Henry John Heinz took his stand on quality and proudly displayed his product in transparent bottles. This way any customer could see there were no leaves, no wood fiber, and no fillers added. (H.J. Heinz Company)

1874 - Heinz Company partners with L.C. Noble and move to larger headquarters. Their product line-up now includes pickles, sauerkraut, and vinegar. Assets of the business include 100 acres of garden, 30 acres of horseradish, 24 horses with 12 wagons, and a vinegar factory in St. Louis.

1875 - Banking panic forced Heinz Company into bankruptcy.

1876 - Heinz starts all over and introduces new product - tomato ketchup.

1877 - Expansion of their product line: Red and...