Heinz vs. Hunts – understanding product differentiation
Product differentiation refers to the method of drawing out the differences that makes a specific product or service more attractive in comparison to the res within a specific target market. It includes differentiation from the products/services of the competitors as well as the products of their own firm. Two similar products – Heinz ketchup and Hunts ketchup would be considered and compared to understand the differentiation of the products in the market.
Company background and differences
Heinz Ketchup is one of the leading market choices for ketchup and sauce products. It is a product of Kraft Heinz Company, a food company of American origin that was established as a merging of the Kraft Foods with Heinz. Currently, it has an annual revenue generation of over $26 billion and is one of the top few organizations in the food and beverage industry. It also holds a place in the list of Fortune 500 companies and has more than 20 brands in the market (“The Kraft Heinz Company”, 2020). This makes Kraft Heinz Company more diverse and internally differentiated. Hunt’s, on the other hand, is an organization that is known as a brand for products made of preserved tomato (“Ketchup and BBQ Sauce Products | Hunt’s”, 2020). The organization has gone multiple acquisitions and merging till the date, and with nearly 500 employees, the organization generates estimated annual revenue of nearly $85 million. Don't use plagiarised sources.Get your custom essay just from $11/page
Product differentiation and competitive advantage
The prime motive of any business operating in the market is to obtain a competitive advantage and beat its rivals to increase its market shares. Product differentiation helps the organization to achieve these goals with ease (Allenby & Rossi, 1998). Heinz Ketchup offers a wide range of varieties to the customers – the ketchup, edchup, and the saucy sauce, all of which are categorized into two groups, ‘Organic’ and ‘Simply Heinz’ (“Heinz Sauce”, 2020). On top of that, there are various variations in its flavors as well – offering balsamic vinegar, jalapeno, and sriracha. The packaging and promotion efforts vary for all of the products. Hunt’s, on the other hand, tries to hold its name and fame as a producer of items from preserved tomatoes only and offers various options for canned tomato sauce. In addition, they also offer other products such as whole tomato, diced tomato, tomato paste, pureed/crushed tomato, and many more. Heinz tags its tomato ketchup at $3 per 32 ounces while Hunt’s ketchup is marked at $2.50 per 35 ounces. The prices vary from option to option for each of the brands.
There is another prime aspect where the two products differentiate from each other. Heinz is known to include sugar in its ketchup instead of the high-fructose corn syrup. Hunt is known for just the opposite move. However, Hunt’s also removed the corn syrup temporarily in 2010 but rolled back the changes in a couple of years. In this context, it is necessary to mention that the organization also offers sugar-based options for varied sizes in the USA. It is one way to bring in product differentiation – through varied product sizes (Shreay, Chouinard & McCluskey, 2016). The marketing efforts of both the organizations also vary widely, starting from packaging, advertisements, and promotional campaigns except that both the companies prefer endorsing the brand by influential celebs – Ed Sheeran for Heinz and Patrick Mahomes II for Hunt’s.
Unlike Heinz, the products of Hunt’s are not as diversified. This automatically offers Heinz a competitive edge in the market.
Reference
Heinz Sauce. (2020). Heinz® Products & Varieties | Heinz®. Retrieved 19 March 2020, from https://www.heinz.com/products
Allenby, G. M., & Rossi, P. E. (1998). Marketing models of consumer heterogeneity. Journal of econometrics, 89(1-2), 57-78.
Shreay, S., Chouinard, H. H., & McCluskey, J. J. (2016). Product differentiation by package size. Agribusiness, 32(1), 3-15.
The Kraft Heinz Company. (2020). Retrieved 19 March 2020, from https://www.kraftheinzcompany.com/brands.html
Ketchup and BBQ Sauce Products | Hunt’s. (2020). Retrieved 19 March 2020, from https://www.hunts.com/ketchup-and-bbq-sauce