Henry Heinz Flashcards
1
Q
Is building and maintaining a brand easy?
A
NO
2
Q
First Company
A
- fresh, high-quality ingredients
- latest preserving techniques
- packed in clear glass
- knew people did not trust bottled food (taste not consistent and it spoiled)
- made a bet that a wide market awaited the manufacturer of food products
3
Q
Second company
A
- quality products and a meaningful brand
- expansion into international markets
4
Q
Market by 1865: Supply Side
A
- increased productivity
- technological innovation
- telegraph and railroad
- national market
- mass production and distribution
- growing banking sector and credit availability
5
Q
Market by 1865: Demand Side
A
- rising incomes
- rapid urbanizaiton
- population growth
6
Q
Market by 1865: Obstacles
A
- concerns over food quality and purity
- ethnic and culinary diversity
- lack of recognized quality standards
- food processors’ reputation as snake oil salesmen
- limitations in food preservation technology
- Women’s traditional responsibilities for food provision
- identifying talented partners and employees
7
Q
What made Heinz believe he could be successful?
A
- first company
- quality and purity as differentiation
- best innovations in food preservation
- superior ingredients
- quality controls
- appealing products
- trustworthy distribution
- effectively communicate benefits of his goods
8
Q
Role of Branding: Marketing/sales
A
- imaginative advertising
- factory tours
- presence at expositions and parades
- details of each display emphasizing taste, purity, cleanliness, and convenience
- free souvenirs with the Heinz name
- in 1900: Manhattan’s first electric sign
9
Q
Role of Branding: Product Development
A
- appealing goods
- economies of scope
- factory tours
- early R&D
- word-of-mouth
- reduced reliance on independent jobbers (because difficult to guarantee purity of the products)
- so built a sales organization (expensive) –> control over product distribution and development of the brand
- Increasing product line : increased brand
10
Q
Heinz’s most important strategy
A
backward integration and control over product distribution
- integrated into farm production, manufacturing and bottling, distribution
11
Q
Role of Branding: Manufacturing
A
- quality control
- latest preservation techniques
