Pittsburgh, Pennsylvania- 1869
Best selling brand of ketchup.
From 1906 it was produced without preservatives.
In 1907, Heinz started producing 13 million bottles of ketchup per year, exporting ketchup all over the world.
Heinz manufactures all of its American tomato ketchup at two plants: one in Fremont, Ohio, and another in Muscatine, Iowa.
Heinz ketchup is packaged in glass and plastic bottles of various sizes, as well as individual-serving condiment packets made of foil or plastic.
LABORATORY TEST MARKET RESEARCH DESIGN
SOLUTIONS TO THE CASE
SELECTED FINDINGS FROM THE LTM STUDY
2. 2
HEINZ
• Pittsburgh, Pennsylvania- 1869
• Best selling brand of ketchup.
• From 1906 it was produced without
preservatives.
• In 1907, Heinz started producing 13 million
bottles of ketchup per year, exporting ketchup
all over the world.
• Heinz manufactures all of its American tomato
ketchup at two plants: one in Fremont, Ohio,
and another in Muscatine, Iowa.
• Heinz ketchup is packaged in glass and plastic
bottles of various sizes, as well as individual-
serving condiment packets made of foil or
plastic.
3. LABORATORY TEST
MARKET RESEARCH
DESIGN
CONTROL CELL
Glass bottles
EXPERIMENTAL CELL
28 oz. plastic @ $1.59
28 oz. plastic @ $1.49
28 oz. plastic @ $1.59 and 64 oz. @ 2.81
01
02
3
4. • Featuring Heinz
product
Plastic bottle buyers
and nonbuyers
• Reactions to the
product
• Satisfaction
• Repurchase
intentions
50 Cents
“Seed Money”
Normal usage
conditions at home
4
TV
commercials
Focus
groups
Follow up
interview
Simulation of
supermarket
Consumption
6. SOLUTIONS TO THE CASE
6
They should only introduce 28 oz at price $ 1.49
plastic case model.
It will be introduced in the national market
There should be incremental shelf space for the
28 oz size
There should not be any incentive given for new
size introduction
The base plan of $4.2 million should be considered for
promotion
7. 89% of 28 oz. triers and 85% of 64
oz. users were “completely
satisfied” with the product.
66% of 28 oz. triers and
75% of 64 oz. triers said
that they “definitely will
rebuy” the product.
55% of 28 oz. triers and
40% of 64 oz. triers said
that they “will buy
Heinz Ketchup in plastic
bottles only.”
• Frequency of using Ketchup
TOTAL HEINZ SHARE Purchase Heinz Plastic
Used Ketchup at least 4
time/week
36% 40%
28 oz. @ $1.59 28 oz. @ $1.49 64 oz.
54% 40% 39%
SELECTED FINDINGS FROM THE LTM STUDY