BUSI 3322: Supply Chain Management
Section: 201 – Fall 2012
Final Group Project
Supply Chain Management in Food Industry
Done by:
Razan AlSubaie
ID#200900042
Pages 5,6,7,8 and 13
Norah AlMesned
ID#200800242
Pages 9,10,11,12
Horeyah AlSayed
ID#200700644
Sara AlZamil
ID# 200800118
Pages 14,15,16,17
(From 8.1 till 8.2)
Pages 18,19,20,21
(From 8.3 till Conc.)
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Supply Chain Management in Food Industry
Prepared for
BUSI 3322: Supply Chain Management
Section 201
Prince Mohammad University
AlKhobar, Saudi Arabia
By:
Razan AlSubaie
200900042
Norah AlMesned
200800242
Horeyah AlSayed
200700644
Sara AlZamil
200800118
December, 2012
2
2. Table of Content
1. Cover page……………………………………………………..…………………………2
2. Table of content………………………………………………………………………......3
3. Lists…………………………………………………………………………………..…...4
3.1 List of figures…………………………………………………………………4
4. Executive summary……………………………………………………………..……......5
5. Introduction………………………………………………………………………………6
6. Literature review………...………………………………………………………………7
6.1 The supply chain management………………………………………………7
6.2 From manufacturing to shelf……………………….………………………..8
6.3 Stages in food supply chain…………………………………………………9
6.4 Managing the supply chain…………………………………………………10
7. The Heinz Case study…………………………………………………………………..11
7.1 Industrial Analysis…………………………………………………………11
7.2 Global Denominations and record sales…………………………………...12
8. Supply management of Heinz Case………..…………………………………………..13
8.1 Marketing strategy…………………………………………………………14
8.1.1 Promotional Activities……………………………….15
8.2 Product life cycle…………………………………………………………..17
8.3 Marketing mix……………………………………………………………..18
8.4 Sustainable efforts…………………………………………………………19
9
Recommendations & Conclusion…………………………………………………..…20
10 References………………………………………………………………………………22
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3. Lists
3.1 List of Figures
(Figure 1.1) Illustrates the supply chain within food industry ("Faculty of Agriculture Kobe
University”).
(Figure 1.2) Safe Food (F.K 101-109)
(Figure 2.2) Heinz salad cream life cycle
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4. Executive Summary
Heinz is one of the major international food companies; its headquarters is situated in
Pittsburg, Pennsylvania USA. The diversification of this company has reached almost 200
countries covering six out of 7 continents. Its products have been scientifically produced and
marketed to promote healthy eating habits, emphasizing on wellness and to achieve
sustainability. Heinz not only provides world class food items but also has substantial credit for
its charitable work in many countries that needed help. It has been ranked as the number one
company in customer satisfaction continuously for eleven years by the American Customer
Satisfaction Index. It is known for innovative and unique products that have been an absolute
favorite among consumers globally.
Considering the sales of its various products , the company offers the breakdown of its
sales by sector as condiments, sauces and ketchup; which covers 24 % of the total sales, where
as the frozen items like budget Gourmet, Ore-Ida, Weight watchers covers around 15% , pet
products like 9 lives, Gravy Train, Ken L-Ration covers 14 % and soups, pasta meals, beans as
12% , tuna contributes 12% , while infant foods adds up to 11% , other products contribute to
12% respectively. Considering it’s over all sales across globally, about 55% of revenues are
collected from North America. In Europe almost 26% while 11% in Asia -Pacific and finally the
rest 8% from elsewhere. Heinz is constantly looking for methods for adapting competitive
strategies for its supply chain management. Whether it’s the department of Purchasing, logistics,
Manufacturing, customer service or the engineering of continuous improvement, Heinz is
equipped with talented people who thrive hard to achieve its quality standards in the market and
adhere to its customer centricity. Like many successful companies, Heinz too had to face
constant criticism, down-fall, struggles and emerging again with even more stronger position.
This study shall discuss these many folds of this firm.
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5. Introduction
The supply chain management of a multinational company is its backbone. It not only
offers a stiff competition to its contenders but also contributes to its profit and cost efficiency. It
requires a co-ordination of the essential elements of the supply chain management and effective
usage of the theories and business models. The technological advancement is also required for a
strong supply chain system. The goal in this methodology is to explore the literature of supply
chain management within the food industry, study its elements and its contribution in the growth
of a firm.
To achieve this goal, this paper will include theoretical information with rigorous
research from prominent books, journals and websites while conduct a practical analysis on one
of the biggest food company H.J. Heinz headquartered in Pittsburgh, Pennsylvania USA. This
study is divided in to eight sections, the initial section of literature discusses the terminology
‘Supply Chain Management’, its function and contribution to its respective firm while the third,
fourth and fifth section deals with the introduction, mission and business operation of Heinz , it
also includes a research analysis on the supply chain system of the company and the major
strategies adopted by Heinz to overcome the challenges and its sustainability efforts for its future
performances. The study will also include some observation of Heinz’s business operation, and it
will be concluded with some recommendations too.
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6. Literature Review
6.1 The supply chain management:
The term supply chain management is a system, interconnecting of sectors, activities,
people, information, technology and resource that are together involved in the procurement,
production and distribution of a product. It consists of various disciplines as well as logistical
steps that involve sourcing the required raw material, ingredients and delivering it to the right
customer on time. When it comes to food, the chain is a bit complicated but extremely important
("Institute of Food Science & Technology").
Douglas in his book 'supply chain management: Processes, Partnerships, performance’
writes about why the implementation of a supply chain movement within a company is essential ,
and that the supply chain management is all about relationship management. It is managed
particularly link by link, and relationship by relationship. He further expresses that the
organization which manages this is ultimately a winner (Douglas M 5-6).
The successful execution of the supply chain system in food industry is extremely
important because food gets spoiled. it is the responsibility of the business to take care of all the
levels involving the production of the product that it sells, and also ensure that the right product
reaches the right customer, at the right time ,right place, right price and in right or perfect
condition as and when the customer requires it. The food supply chain process carries dual flow
of goods and services as well as the information between the manufacturers and the consumer.
Today, many of the food companies are involving customers directly in getting the
suggestions and feedbacks from them to ensure better standard and services. Like any other
industry, globalization has its positive impacts in the food industry too. Supply chain in the food
industry means transportation of the food products across the globe for processing and getting
back to the country of origin ("Institute of Food Science & Technology").This is a very
complicated process yet if it is incompetent and ineffective then it can only lead to the failure
and bankruptcy of the firm (Jason 2011). According to Michael, the food industry has developed
rapidly and with the threshold of globalization in the 21st century, it has grown from the
fundamentals of the production, harvesting, products storage, and up to the level where
productivity and company's sustainability is leveraged through genetics, mechanization,
chemistry as well as management (Michael A, Paul W. H, and et al 6).
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6.2 From manufacturing to shelf:
The term 'farm to fork' is often referred to the supply chain system within the food
industry for an easy visualization of the process involved in procurement, production and
distribution. The manufacturing process plays a very Vitol role; this may involve several
manufacturers and suppliers. For example a firm may obtain dried banana chips from a
manufacturer and purchase muesli from another manufacturer, while he mixes these two to
produce one breakfast meal and distribute in the market. First the manufacturing process and
then the packaging procedure is followed which insures safety and protection of the food product
which is meant to be distributed across the world. This distribution is within the country and
internationally too, so it goes through several logistic chains like sea, air, road or railways to
reach the distributors, retail stores or multinational super market. The company then, promotes
the product through various channels of media, through advertisement in newspapers, magazines,
radio or television. This supply chain comes to an end when finally the product is purchased by a
customer and he/she consumes it. More over today, companies are focusing on managing its
waste disposal and managing the food products that are uneaten ("Faculty of Agriculture Kobe
University”).
(Figure 1.1)
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6.3 Stages in food supply chain:
There are several stages involved in the food supply chain of a company. The first stage is
the procurement of raw material or food ingredient and the supply chain starts from this stage,
where raw material or ingredients are required for the manufacturing of the final product. Hence,
it is extremely important for a company to make a precise selection of the food ingredients
required. The raw material specification sheet of the company offers a clear instruction of the
requirement, and the company purchases ingredients or raw materials from the suppliers. Those
capable suppliers are able to provide the required quality of ingredients, the right quantity and
most importantly delivery in a timely manner. They work on basis of contracts and a company
can associate various suppliers for the regular supply of the food ingredients required. The food
company makes sure to have a tracking system that allows them to trace the source or path of
every ingredient in the production process. This method is very useful to keep control of the
quality and also insure that if any contamination happens, they can handle it with quick actions
and methods. This safeguards the products and minimizes any risk which might eventually reach
to the final customer (Michael A, Paul W. H, and et al 10).
The second stage in the supply chain includes the logistics stage, where it is crucial to deliver
the products on time since most of the processed foods and some of the fresh foods are
transported from one place to another, and those transported goods are edible items that can be
affected through environmental changes. Packaging holds a great responsibility to ensure the
protection and safety of products.
Next, in the transportation stage, many technologies are used for quality control such as for
frozen or chilled products, but regular food products are packed in controlled atmosphere. For
some products the atmosphere is modified; the product is stored in an airtight atmosphere and it
is amended by the respiratory activities of the perishable food items. The level of carbon dioxide
is kept higher to control insects or the growth of molds as in the case of grains (Kerstin 2006).
The final stage in the supply chain, when it comes to food production, is the production stage
itself. During this stage, the ingredients are combined by many methods to produce one final
product. Many of the food products have multiple ingredients and various production stages
involved before it acquires the look of its final product ready for packaging and distribution.
Packaged food items are then distributed through various mediums of transportation across the
world until it reaches to its final destination; the customer (Maurizio, Paolo, and et al 2002).
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6.4 Managing the supply chain:
To manage the supply chain of a food company, more attention should be given to the
safety of the products, since the product is meant to be consumed by an individual. In every
country, manufacturers of food products have to follow laws to make sure that the product they
are selling is risk-free and not harmful to health in any way. In this industry, various risk
assessment as well as hazard analysis is used towards any potential problem or challenges that
may arise. It is always better to believe in prevention rather than cure and take feasible steps to
handle any critical problem (Carol, William, and et al 2011). A figure of safe food (fig.1.2) in a
journal by World Health Organization depicts the shared responsibility of consuming food that is
safe and secure.
Figure (1.2)
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7. The Heinz Case study
The Heinz Company was established by Henry John. And while the idea was
incorporated in the year 1900, it gradually transformed in to a business partnership in the year
1905. Henry believed in team building, collaboration, vision innovation and unity in the
workforce. His motto was to do things differently to bring success. The company is known for its
innovation, and introducing new products for the past 140 years and for many years to come
(Heinz, 2010).
According to its official website, Heinz considers itself to be the trusted leader when it
comes to nutrition and wellness; the mission statement of its workforce is to be dedicated
towards sustaining the health of people, followed by the planet earth and the company. Heinz
had been selected among the top most trustworthy companies in the USA by Forbes Magazine in
2008. The selection was based on the audit integrity's favorable analysis of Heinz and its
transparency in terms of accounting and maintaining the prudent management. Heinz values
team building and collaboration, having a vision, obtaining wanted results, maintaining integrity
and transparency (Heinz, 2010).
7.1 Industrial Analysis:
According to its annual report, Heinz is focusing towards developing globally while
creating a positive impact on the world. The company is running a successful program of
providing tomato seeds to more than 30 countries; this is executed under the Heinz Seed program
and it is supplying natural and hybrid tomato seeds. The farmers are engaged in producing higher
yields of the finest tomatoes which are without any genetic modification. China is one country
where this program has been very successful. Heinz recently partnered with the United States
Agency for International Disaster to help the economically afflicted regions of Egypt and the
upper Nile regions. In 2010, it partnered with Lucy Liu who acted as a spokeswoman for Heinz
and promoted micronutrient packages containing powdered vitamins and minerals for the infants
and children of developing nations. These packages are meant to be mixed with meals and
consumed. This program helped almost three million kids to fight iron deficiency and anemia.
Heinz is determined to move forward with Heinz Seed program and its micronutrient programs
to reach more countries (Heinz, 2010).
Heinz is a global leader in the market of food products. Almost 60% of its sales is
generated outside the United States. According to its report, it has experienced prosperous results
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due to globalization. Heinz’s products are categorized in three sections as condiments, frozen
foods and infant foods. Its products and the ingredients in them are often used differently,
depending on the country where it is being exported to. For example, products like smart ones,
T.G.I Friday's frozen entrees, pickles, Classico pasta sauce, and ketchup is available in the USA,
while the ketchup is available in Poland with a different name and slightly different ingredients.
Heinz is very particular in mapping out the requirements of a particular product and its demands
in a particular country (Heinz, 2010).
7.2 Global Denomination and record sales:
Heinz divides its sales distribution into five regions namely North America, United States
Foodservice, Asia Pacific, Europe and elsewhere. India, New Zealand, Japan, South Korea,
China, Indonesia, Singapore and Australia are under the Asia Pacific region while the rest of the
world includes countries like Latin America, Middle East and Africa. Considering the annual
report, North America is the strongest revenue collector for Heinz. Heinz has been exploring in
new emerging markets like Turkey, Brazil, Vietnam and Philippines.
In consistency with its annual report of 2012, Heinz claims that its sales grew by 9% with
a record of $11.6 billion. It also discovered that a record net income of about $1.09 billion
excluding the productivity charges, and the sum of $923 million was including those charges.
The major element in its growth strategy would be to focus on the continuous growth of ketchup
and sauces globally (Heinz, 2012). The team is determined to leverage the advantages and create
a well balanced geographic portfolio in the emerging markets. Since Heinz is known for its
innovative ideas for products, it is also focusing on packaging by providing new, user friendly
and innovative packaging for its products. In 2010, the company introduced the Dip and Squeeze
ketchup, which allowed the customer to squeeze the small bottle-like pouch just like toothpaste
with another option to remove the base and dip the food into the sauce. It was highly popular and
accepted in the market (Heinz, 2010).
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8. Supply Management of Heinz Case
Heinz has more than 67 factories and has provided eight factories on lease across the
world. 20 factories are owned while 4 are leased in North America. 21 factories are owned in
Europe, while 20 factories are owned and 2 are leased in Asia-Pacific, considering the rest of the
world, 6 factories are owned and 3 are on lease. The vast and intricate supply chain of Heinz
allows its products to get distributed all over the world .Heinz's sales organization is very strong.
The channeled distributors of Heinz, through which its products are sold may include
independent brokers, distributors, wholesalers, independent and co-operative grocery stores,
bakeries, convenience outlets, pharmacies, club stores, mass merchants, foodservice distributors
and hotel, fast food joints, hospitals, restaurants, health centers, government agencies (“Heinz”
2010) . Heinz makes sure to maintain an active dialogue with its shareholders, customers,
suppliers, regulators, employees and nongovernmental organizations.
Recently Sterling Commerce, an At&T Inc. company declared that H.J Heinz company
was listed in the sixth annual Progressive Manufacturing 100 for managing automation media.
This listing is to recognize the top 100 companies who have achieved outstanding business
transformation by using advanced technological standards across eight categories. Heinz was the
winner in the category of supply network mastery; it was recognized in the area of supply chain
execution. The efforts by Heinz to leverage its logistic operation, developed synergies between
the raw materials or ingredients and the final goods produced by the company ("Heinz 2007").
Heinz has been a global leader in food products since decades, and it has also encountered many
challenges, that the company was able to overcome with its strategic measures and effective
management of its supply chain network.
The case study analyzes how Heinz developed a marketing strategy for its salad cream
product, which experienced a down fall after years of popularity of the same product. Heinz
made sure to win the customers and increase the demands of the salad cream more than ever.
This campaign and its success story shall be discussed in the study by taking the help of two
marketing concepts.
Heinz Salad cream was a winning product for many decades but it started declining. Its
popularity suffered a downfall in the late 90’s. Mayonnaise raised its popularity, giving stiff
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competition to salad cream. Heinz salad cream consists of a recipe fully developed in United
Kingdome and it was launched in the year 1914. It had its monopoly in the market for many
decades; 1950's and 1960's were the most successful years in the history of the popularity of
Heinz salad cream. Mayonnaise popularity started rising in the 90's followed by an equal market
share by both in that decade. Mayonnaise leaded the market in the year 1996 and on a record its
sales for the year 1998 was approximately £ 72 million while the salad cream's sales were
recorded to be around £ 40 million. The market for salad dressing is growing at 9% each year
and its market is estimated to be a worth £ 129 million. The phenomenal growth was a result of
the constant encouragement of healthy eating habits and wellness trends. Heinz is a winner of
almost 50% of salad cream market. Considering the figure of the year 1998, Heinz occupied 59%
while its strongest rival held a mere 20% share (Jean-Marc 2006). Heinz focused on to target
customers through various strategies in order to promote its salad cream and the result was
evident.
8.1 Marketing Strategy:
The Marketing measures were decided upon to target the younger consumers in general,
the age group of youngsters who were between 20 and 30. Also, to promote an individual sense
about Heinz salad cream and to create an idea that is funny and quirky at the same time. And to
advocate the fact the salad creams are more than just a dressing for an exotic salad.
The Heinz team conducted a research which focused on two key concepts: How to appeal
the consumers in the age group of 20 -30 and to acknowledge the perceptions that was held by
the customers for Heinz salad cream.
After the research, the team came up with this conclusion or findingsi.
Heinz salad cream was considered to be a product of the bygone era
ii.
Heinz salad cream in comparison to mayonnaise was more moist and added flavor too
iii.
Salad cream's characteristic was found to be appealing and quite bold as it was capable of
enhancing the taste of any dull food
iv.
Heinz as the brand is associated with trust and quality
v.
Salad cream by Heinz had a tangy taste which was unique
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Heinz targeted the age group of 20 – 30, the group consists of people who want their
vi.
own individuality and prefer to be in the company of like minded mates
vii.
This group in particular is spontaneous when it comes to shopping and they will buy
instantly what appeals to them
viii.
This group has very functional eating habits; they prefer basic food such as bread, pasta
or potatoes.
ix.
For this age group, the substitute for salad cream may include mayonnaise, ketchup,
sandwich spread and salad dressings.
x.
It was also discovered that Heinz neglected to support the salad cream brand
Upon these findings, it was decided by the team that there was a need to introduce a new line
of products for the targeted consumers; the launching of these products will be based upon the
findings of the research and combining the expertise within the business. Their decisions were
first not to make any amendments with the product as it was classic instead strong ideas would
be implemented to re-package the product in completely new designed fluted bottles. It would be
based on the original shape but with appealing labels and contemporary images. The second
decision is that the concept of the salad cream enhancing the taste of a dull food and adding life
to it would be emphasized. The last decision is that beyond such salads, the salad cream would
be promoted for various consumption ideas so an individual can use it with any food of their
choice.
It was quite clear that the marketing team has successfully initiated the first step of marketing
analysis, now the next major step was to decide on the various means of platforms and media
through which this promotional activity would be incepted (ALEX), ("Times 100").
8.1.1 Promotional activities:
In the year 2000, Heinz started the promotional activities for the re-launch of the Salad
Cream. The cost of this campaign was estimated to be around £ 10 million. The campaign was
instigated through various mediums like 
Advertisements through television and radio

Press releases and posters

A comprehensive website
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
Sponsorship Deals

Strong promotional campaigns

Sampling campaigns and public relations
In every medium, a common theme was publicized and that was: “Any food tastes supreme
with Heinz salad cream", every poster, press release, advertisements carried this promoting line.
Television
Heinz launched a new advertisement on television channel in April 2000. The
advertisement was humorous and it illustrated the idea that a person who is young or the person
who is young at heart could possibly turn any dull food in to a mouth watering treat. The
advertisement featured a man who discovers a left out pizza slice stuck to his bedside, he
deliberately decides to throw it away and enters his kitchen but instead of throwing it in to a bin,
he set his eyes on Heinz salad cream and eats the pizza slice by smothering it with the salad
cream. The second advertisement, it was shown that a women who had left some cucumber
pieces for her eye beauty treatment, had to forcefully answer the phone which her partner had
willingly left unanswered and when she returns to the kitchen the cucumber pieces are missing,
when in actually the pieces were grabbed by her partner in order to make sandwiches lashing it
with Heinz salad cream ("Times 100").
Radio
The team launched three radio commercials focusing on the idea that any food can be
transformed in to a tasty treat with Heinz salad cream. The catch line was ' Any Food Tastes
supreme With Heinz Salad Cream". It was a simply rhythmic jingle which was aimed at to get
stuck to the listener’s mind. Heinz also took a major and unusual step in promoting the product
when the advertisement used famous songs, and offered a suggestion that Heinz salad cream can
transform a dull and boring dish in to a tasty treat. The claim was strong and meant to influence
the listeners ("Times 100").
Website
A fully fledged comprehensive, colorful and cartoon like website was launched by the
team. It used all the technological aspects of a good appealing website. This website not only
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offered information regarding the product but also targeted to engage the user in online games,
quizzes, share jokes and recipes too ("Times 100").
On-Pack Promotions and sampling
Heinz organized unique promotional programs where the team focused on elaborating the
versatility of the salad cream. It introduced to the public, the various usage of the salad cream by
demonstrating it with daily intakes or everyday food items and introducing them with innovative
ideas of consuming such food with Heinz Salad Cream. Some of the re-packed bottles used to
'scream' aloud when opened, it was a part of the promotional activity which; through the scream
enabled the customer to know that he was the lucky one to have been granted a holiday for two,
or a day out, some action holidays and several other prizes were also made available to attract the
audience. The promotional tour of comedy was also a part of this advertisement, and it was
meant for 20 days which received excellent responses from public and was highly publicized by
newspapers and new channel ("Times 100").
8.2 Product Life Cycle:
Figure (2.2)
The life cycle of a product is determined and studied for determining its performance
since the time of its introduction. It is also known as PLC. It starts from the stage of its
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introduction and up to the stage when it was removed from the market. There are various stages
involved in this process which refers to the popularity and sales of the product.
The first stage is when the product was introduced in the market and what its sales record
was. Then gradually it ascends towards a stage where its popularity is at peak and the sales have
been maximized, this is called the mature phase. Followed by a phase where due to consumer
choices, or stiff competitions a product's sales declines , this is the stage where the manufacturer
makes the decision of continuing with the downfall of the product or make to further invest in
not letting the product die (John 2007 ).
The management of Heinz faced this challenge in the case of Heinz salad cream, it was
introduced in the year 1914 and the popularity grew with every decade passing by. It went on in
its growth stage in the 1940's while it was at its peak up to 30 years and up till 1970's. Its
downfall started reflecting in the late 1980's and the early 1990’s. The market position was
staggering with the introduction of mayonnaise and the position further kept on declining. In the
year 2000, Heinz made a decision that it won’t allow one of its most favorite and favorable
product to die instead it will take effective measures to re-launch and introduced the produce to a
whole new generation. It invested almost £10 million for its promotional activities. This decision
and the action taken were not only successful but phenomenal and it successfully pulled back the
sales record and salad cream was back in its mature phase ("Times 100").
8.3 Marketing Mix:
To analyze how Heinz used various means to ensure its product to bounce back on a
successful stage, an analysis of its market mix strategy should be observed. Almost every good
and service consists of a marketing mix. Marketing mix is a mixture of various ideas as well as
plan that is executed by a marketing representative for promoting a product or a brand of a
company ("management study guide"). It comprises of four elements and these are 
Product: Goods manufactured or produced by an organization or company for the endusers is called products.

Price: The money which a consumer pays for a product is known as price of the product.
The price of a good is indirectly proportional to the availability of the good in the market.
Less availability would result in higher price and vise versa.
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
Promotion: Promotion involves various measures and strategies to be implemented by
the management for influencing the end customer. Promotion also includes various
methods instigated to promote the popularity of a brand in the market.

Place: it refers to the location where the goods are available and are sold or purchased.
Consumers can purchase the product either from a physical market or from a virtual
market like internet ("management study guide").
Studying the marketing campaigns by Heinz, it is hence observed that it was never intended
to modify its classic taste and only the overall look of the bottle or the container was changed.
So, the product aspect in the marketing mix was never changed. However observing the price
aspect of the marketing mix, it is found that its prices were altered. The price of the Heinz salad
cream was increased. Heinz conducted a research on the targeted group and through the findings,
it was discovered that the younger generation do not mind spending an extra amount on
something that is appealing or the price of the product would hardly matter to them if they are
convinced with the taste and service they are getting from this product. The promotion aspects
were changed dramatically and extensively. As for the place aspect, no new outlets were opened
or sales operations being shifted to another place. This aspect was also unchanged ("Times
100").
8.4 Sustainable Efforts:
According to a report, sustainability is found in the DNA of Heinz. The founder, H.J.
Heinz, was committed towards quality as well as purity 140 years ago. He demonstrated this by
packing first product in clear glass, the product was horseradish. In the present scenario
sustainability is the utmost priority for Heinz. It is quite evident by a separate designated board
known as Corporate Social Responsibility (CSR) committee.
Heinz believes and acts upon the philosophy on sustainability. This enables to implement
steps that offer improvements in each operational section of the business. Mr. Brian Shuttle
worth, director of operational risk management and sustainability, Heinz World Headquarters
says that their approach is holistic it ensures greatest impact on future sustainability in the Heinz
workforce. Strategies at Heinz are placed in their respective position to cover all sections of
sustainability (Allison A).
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9. Recommendations and Conclusion
Heinz is one of the leading companies in the food industry worldwide. Its enormous
supply chain is the back bone of its business operations. It has a history of successful campaigns
of launching new and innovated product range. Heinz is not only a global provider for quality
food products in health, infant and condiments but also has listed out its corporate and social
responsibilities which the firm carries out with full conviction, delivering excellent results every
time. its socially inclination towards charitable work is applaud able when it focuses on
providing good farming schemes to farmers to ensure good yield of tomatoes for its most famous
and the world’s favorite ketchup sauces. Heinz has contributes the society by providing
micronutrients packages for the kids in developing nations. It is constantly engaged in the
diversification of its business, expanding its branches in new emerging markets. Sustainability is
a Vitol ingredient for Heinz, as being a Pure Food Company; it is dedicated to the sustainable
health of customers, our planet earth and the Company. They are always committed to achieve
sustainable growth benefiting its shareholders, customers, communities and employees.
Corporate social responsibility is the basis of its operational activities throughout the world.
Although Heinz is one of the finest players in the food industry, it has been observed that
in the recent years it has faced some challenges too, when the sales of its famous salad cream
was declining. It was due to the presence of a strong competitor 'mayonnaise' and may be
because of the changed preferences of the consumers that led to the downfall of the salad cream.
How ever the management at Heinz not only recognized the challenge but also accepted it and
made efforts to re invest in the product by conducting a rigorous research in the market involving
the reasons of the product's failure and related facts to support the declining of the product. The
company decided to invest in the advertisement and other promotional activities and created a
strong impact on the consumers through appealing catch up lines, jingles on radio, humorous TV
commercials and promotional activities in live stalls offering gifts, holiday package and also
introducing the new targeted customers with the product range of Heinz. It never focused on
changing the classic taste of the salad cream, for which it was known and had built trust for
years. It did change and modified the exteriors of the bottle or the containers with more colorful
and attractive packaging. The price may have been increased but it was found from the research
that that the focused group would not mind spending extra on a product that would have
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impressed them with its unique taste. Through this campaign Heinz was successful in leaping
forward and bringing forth its declining product in the market. Heinz is a company known for its
innovation and strong team work.
Heinz should make efforts to introduce many of its products apart from ketchup in to its
new emerging market. It is a king when it comes to manufacturers of tomato ketchup but its
other products are equally popular. Heinz should introduce its health products for infants and
pregnant women in the Middle East and Asia pacific.
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