Pitch Brief: Heinz Ketchup is looking for a New Content Agency

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By Max

OVERVIEW

Currently, Kraft Heinz is reviewing its creative accounts with an eye to cutting costs - and the company is actively looking for agencies to come up with creative marketing ideas (while the work itself will be outsourced to production houses). Most likely, this review will involve Heinz's incumbent agencies:  McGarryBowen, Leo Burnett, Taxi, CP&B, Cramer-Krasselt and David.

Kraft spent $540 million on domestic ads last year, and Heinz spent more than $40 million. The combined figure is expected to drop—and be spread among fewer agencies—as the conglomerate strives for greater efficiency.

But, if you were to want to catch the attention of one of the biggest food brands in the world, this is how we would go about it: Understand the Heinz audience better than Heinz does! Here is our in-depth analysis of the Heinz consumer.

BACKGROUND SUMMARY

Founded by Henry Heinz in 1869, the H. J. Heinz Company manufactures thousands of food products in plants located on six continents, and markets these products in more than 200 countries and territories. Its top-selling product is the world-famous Heinz Ketchup.

Heinz’s mission is “to be the best food company, growing a better world” and on March 25, 2015, the brand announced its merger with Kraft Foods, arranged by Berkshire Hathaway and 3G Capital. 

 
 
 
 
DOWNLOAD PITCH BRIEF: HEINZ KETCHUP 

OVERLAP ANALYSIS

Some of the best marketing opportunities can be inspired by one audience’s enthusiasm for multiple products (need we say: “chocolate and peanut butter?”). Here we see where the Heinz audience overlaps with two other major food brands: TGI Fridays and Ore-Ida.

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The Overlap analysis, among H.J. Heinz company brands, reveals that about 1/20th of the Heinz Ketchup audience follows other Heinz brands in other markets. The highest overlap occurs between Heinz Ketchup and Ore-Ida frozen french fries and tater tots, while TGI Friday’s restaurant audience gathers less ketchup consumers.

PENETRATION ANALYSIS

We can also see in which demographic segments Heinz enjoys the deepest penetration. The brand resonates strongest with Generation Z who are growing up with the Heinz brand.

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We found the penetration scores by measuring the number of people interested in Heinz Ketchup in the reference market. Then we segmented penetration by generation cohorts in order to measure the Heinz ketchup social media presence in each generation.

Penetration peaks with Generation Z (13 to 17-year-olds) at 11.5%, after which it falls to 8.5% for Baby Boomers, 7.1% for Generation Xers, and a paltry 6.5% for Millennials.

Heinz is already trying to improve their performance with Millennials by launching globally-inspired flavors, like Sriracha and Jalapeno, which is appropriate for this demographic segment known for globe-trotting.

CURRENT MARKETING GOALS

Ian McCarthy, Heinz’s Marketing Controller, said in an interview that Heinz’s social media strategy is to primarily drive engagement and advocacy stating, “our priority is to add value to consumers through branded messages that are in touch with their needs and reinforce their love for our amazing brands.” Last year’s facebook campaign “Grow Your Own” reached 11 Million people, expanding Heinz’s social presence for the cost of giving out free tomato seed packets.

AUDIENCE ANALYSIS - TARGET SEGMENT: HEINZ KETCHUP CUSTOMERS

The Heinz Ketchup audience is composed prevalently of college educated women without kids but who are in relationships. Forty percent of the audience belongs to the middle class with annual incomes between $40k and $70k. The majority of people in this audience belong to the Millennial generation (31%), followed by Gen Xers (26%) and Baby Boomers (22%).

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When finding out what this demographic of younger adults want, it’s important to consider their psychographic traits - who they follow and what they enjoy doing in their spare time.

TOP PSYCHOGRAPHICS

The Heinz audience is primarily concerned with beauty/wellness and follow fashion trends. Sports, cars and travel are other fields of interest that may catch their attention.

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INTERESTS, HOBBIES AND PASSIONS: FOCUS: FASHION

Their fashion preferences go to unisex and women's clothing, while clothes specifically designed for children and men have a very limited reach. In terms of a specific brand, Old Navy and Hanes best reach the Heinz ketchup audience. Both clothing brands are known for comfort and affordability.

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If we look at the complete Top 10 list of clothing brands, we begin to see another trend. The styles of clothing represented are as American as apple pie. Old Navy, American Eagle Outfitters, Hanes, Levi’s, Hollister Co., and Gap all share an outdoorsy feel, perfect for stylish camping, afternoons spent on the beach, or picnics by the lake. Taken together, they give us an insight into the lifestyle to which Heinz customers aspire.

EMOTIONS - FOCUS: MUSIC

Taking a look at the music preferences of the target, we discover a down-to-earth audience who likes to be entertained by themes of everyday life, perfectly represented by the country legend Johnny Cash as well as new stars like Lady Antebellum. Of course, this All-American audience would listen to Country.

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MEDIA PREFERENCES: FOCUS: WEBSITE

The websites visited most by this audience are about entertainment, an interest which reaches 64% of the target. Among these websites, the “sports funny-page” grabs the attention of the 9.4% of the audience with a very high penetration percentage.

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INFLUENCERS: FOCUS: OTHER FAMOUS PEOPLE

Among all the influencers we found fictional characters to be the most relevant to the target audience. Dory, the funny fish from Disney’s Finding Nemo, comes in at first place in the ranking, gathering 5.1% of the audience.

Clearly, the Heinz Ketchup audience can be engaged by simple, funny content close to their everyday life interests. They are not fans of flashy models or actors, and they like their influencers and messages to sound as genuine and as down to earth as they are.

DOWNLOAD PITCH BRIEF: HEINZ KETCHUP  

 

Topics: Report; Customer Analysis; Market Analysis