HJ Heinz

Group B

General Information

• Multinational food company• Serving over 200 countries and being #1 or #2 in

50• C.E.O., President, & Chairman William R.

Johnson• Factory Oriented• Environmentally conscious

External Environment

• Top Competitors are Campbell Soup Company, General Mills, Inc, Nestle S.A., Kraft Foods, Inc.

• Numerous Government Regulation and high chance of new costly being pass 

• Work closely with supplier to ensure ingredients quality

HJ Heinz Performance

• Buys strong performing and sells under-performing brands

• Innovates products to stay relevant• Experienced product recalls over the past

decade• Financials show growth over the past few years

Challenges over Past 5 years

• Increased labor costs• In US $6.55 in 2008, $7.25 in 2009, In UK $9.40 and has

increased 60% since its 10 year implementation•  "Channel Shifting" by consumers in result to the economic

recession•  Keeping Brand image while dealing with product recalls• In 2009, recall due to possible salmonella conamination• In 2010, recall of baby food due to toxins produced by

fungus, Ochratexin A

 Current Challenges

• Sales became weaker in second quarter• Heinz started to make smaller packages • Customers attractive more to innovations that are

environmentally safe • Heinz started using Coca-Cola Company's Plant-

based plastic bottles 

H.J. Heinz Market Strategy

• Target Consumer on special diets

• Offer healthier products• Offer information

about healthier diets on wed site

• Going organic• Expanding to new markets

 

This is from Heinz own website

What We Learned

• Importance of external analysis

• Effectiveness of Monitoring progress of goals

• Importance of oversight throughout the company