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Mealpreparerstodayhaveewercookingskills,onaverageknowinghowtopreparejustvebasicmeals.Thesemealsareotenrotatedovertheweek

leadingtomealboredom

Twoincomehouseholdswherebothhouseholdersareworkingmeanthereislesstimeormealpreparation.Mostmealpreparersareunwillingtospend

morethan30minutesonmealpreparation(at4p.m.,70percentooodpreparershavenotyetplannedthateveningsmeal)

Mealpreparersnowwanttoassembleamealusingourtovepartially

pre-preparedingredientsratherthanstartingromscratch.

InsightsgainedromthistypeoresearchallowcompanieslikeHeinzWatties

todeterminebothproduct innovationandcommunicationstrategies,aswewillnowsee.

5 Productinnovation

InnovationisattheheartoWattiesgrowthandsuccess.HeinzWattiesacceptsthatevencompanieswithrecognisablebrandsandhighcustomerloyalty

mustinvestandadapttomeetnewcustomerexpectations.Itisenergisedto

identiyandexploitnewuntappedmarketsaheadoitscompetitors.Butevenproductssuchasbakedbeansandtomatosaucethathavebeenamainstay

orgenerationsoshoppers,canattractnewcustomerswhenpresentedin

newways.ExamplesareIndianandBostonstylebakedbeans,marketedas

BeanThereBeans.Inthisway,HeinzWattiesislookingtokeepproductsresh,appealingandrelevanttoconsumersaswellasosettingcompetitors

encroachmentonitsmarketshare.

Moreimportantly,perhaps,itsteamoches,oodtechnologists,researchers

andpackagedesigners,plusexpertsinnutritionandqualityassurance,isconstantlyndingnewwaystokeepupwithnewproducts,betternutrition,

bettertasteandconsumervalue.RecentexamplesincludeWattiesToasties,

WattiesSteamFreshvegetablesandmeals,pouchmealssuchasready-to-serveTortelliniandevensimpleinnovationslikeWattiesFruitSquirtzthatare

ruitpureinasingle-servepouchormat.

ToastiesutiliseNewZealanddevelopedandpatentedtechnologytosealthe

toastedsandwiches,buttherenementothisprocessinvolvedmanymonthso

trialanderrortocreateaproductwithhome-madetastethatcanbecookedinanuprightkitchentoaster.

BoththeSteamFreshandTortelliniproductsalsomeetthegrowingneedor

ultra-convenientoods,butneitherotheserangescouldaordtocompromiseonfavour.HenceallvegetablesusedinWattiesSteamFreshproductsare

pickedattheoptimumtimeandsnaprozen,otenwithintwohoursopickingto

ensurereshnessandtaste.FortheTortellinirange,recipedevelopmenttookmanymonthsandincluded

multiplestagesoconsumerresearchtohelpdirectdevelopmentothecomplexfavourprolesthatnowexist.BothrangeshavenowbeenexportedtoAustralia

anditisachallengetokeepupwithdemand.

ThisyearHeinzWattieshasalsointroducedarangeosoupsandmealsin

microwaveablebowls.AlthoughthesouprecipesweredevelopedbyaKiwi

orKiwis,theyhaveoundavourwithconsumersinAustraliaandtheUnitedKingdom.Again,gettingthefavourproleotheseproductsrightisthekey

tosuccess,asnoamountoancypackagingandadvertisingwillhelposet

poor-tastingood.

1 Introduction

There are few aisles in a New Zealand supermarket that do not contain a

Heinz Watties product. It has 30 brands in its stable, including Watties,

Heinz, Lea & Perrins, Chef, Champ, Eta, HP, Farex, Nurture, Greenseas,Weight Watchers, Praise, Oak and Craigs. With over one thousand domestic

products, it covers canned, frozen and shelf-stable foods, including canned

fruit, tomato and other sauces, baked beans, spaghetti, creamed rice,

seafood, dressings, frozen vegetables, soups, jams, baby food and pet foods.

Watties also supplies the foodservice industry with quality products, such as

tomato sauce, soups, curry bases, canned fruit and vegetables, baked beans,

frozen vegetables, dressings, jams, and seafood.

Increasingly, the foods that Heinz Watties makes are found in supermarkets

and foodservice overseas, with Australia and Japan carrying the brand of its

sister companies.

2 Background

WattieshasbeenmanuacturinghighqualityoodproductsinNewZealand

since1934.TheounderJamesWattie(laterSirJames)startedhisruitpulpingandcanningbusiness,J.WattieCanneries,inaour-roomedcottageinHastings.

Wattiesbeganasaproduceroruitpulp,thencannedseasonalruit,andhas

expandedtobecomeamajorsupplierooodproductsorbothdomesticand

exportmarkets.SirJamesbuiltacompanybasedonsoundbusinessprinciples,creativeideasandtheinvolvementandenthusiasmohisemployees.In1992,

WattiesbecamepartotheglobalHJHeinzCompany.

Fromitshumblebeginnings,HeinzWattieshasbecomeamajorcontributor

totheNewZealandeconomy,withannualturnover inexcesso$650millionandaworkorceomorethan1,800includingseasonalworkers.Ithastwo

majorproductioncentres,Hastings,wheretherearetwoprocessingacilities,

andChristchurch.Theseareworld-scaleacilities,withtheKingStreetplantinHastingshavingthelargestcanneryintheSouthernHemisphere.Therozen

productsplantinChristchurchproduces50,000tonnesorozenpeas,carrots

andbeansayear.

HeinzWattiespositioninthemarketistheresultoitsstrategicresponsetomarketconditionsanditsabilitytointerpretand,ideally,

anticipateconsumerdemands.Around80percentoproductsagainst

whichitcompetesareimported.Theseimportedproductsotenhavetheadvantageolowerproductioncosts,duetothehighervolumesproduced,

aswellascurrentlybenetingromanimportriendlyexchangerate

duetothestrongNZdollar.Stayingaheadthereoremeansbeingagilerapidlyadaptingtothemarket.

3 Themarketplace

Currently,thesplitbetweendomesticandexportsalesoproductsproduced

byHeinzWattiesisaround45:55a

hugeincreasesince2000whenitwas85:15.

Domestic:Asignicantactoraectingthedomesticmarketiscompetitionrom

importedgoods.Around80percentothe

productsitsbrandscompeteagainstareimported.Withanopenmarketandvirtuallyno

taribarriersinplaceinNewZealand,products

manuacturedo-shoreotenhaveacost-o-supplyadvantageandcanbesoldatdiscounted

prices.Wattieshighlevelobrandrecognition

anditsestablishedreputationprovidesomebueragainstimports,althoughitsmosteectiveresponse

hasbeentodevelopproductsthatbettermeetNewZealanders

demandsoroodsthattastebetter,arehealthyandareconvenientproductsthathelpanswerthequestions:Whatarewegoingtohave

ordinnertonight?Andorlunch?AndwhenIamaway

romhome?

International:HeinzWattiesexportsarangeoproductstoAustralia,

JapanandtheUnitedStates.Thisarmoitsbusinessisgrowing,thereby

providinggrowthopportunitiesorlocalproducersandgrowerswhosupplyHeinzWattiesintheHawkesBayandEastCoastregions,andin

CanterburyandSouthCanterburyintheSouthIsland.

4 Consumers

ToremainintouchwithwhatNewZealanderswantromtheirood

suppliers,HeinzWattiescontinuestoconductin-depthmarketresearch.

Duringthe1990s,HeinzWattiesundertookmajormarketresearchusingbothinternationalandNewZealandresearchprojects(andtheresultsare

undoubtedlystillrelevant).Theseprojectsocussedonchangingsocial

dynamicsandhowtheseinfuencedtheoodandmealpreparationohouseholds.Theresultsothisresearchidentiedaewkeytrendsthat

establishedthebasisorbothproductinnovationandmarketingoverthe

lastcoupleodecades:

Thenumberomealspreparedinthehomeisdecreasing(now

lessthan50percentintheUnitedStatesandaround70percentinNewZealand)

can be agileProo big companies

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AnotherwaybywhichHeinzWattiesretainsitscompetitiveadvantageisthroughthecreationomorecomplexorhighvalue-addedproducts.Forexample,rather

thanuseitsNewZealandgrowncropotomatoestocompetewithplaincanned

tomatoesimportedandsoldatlowcost,HeinzWattieshascreatednewandinterestingcombinationsandfavours,suchasMoroccanstyle,Pestostyle,Smoky

BBQfavour,TomatoeswithSweetChilliandIndianSpicedTomatoes.

6 Innovativecommunicationstrategy

OvertheyearsHeinzWattieshascontinuedtoproduceinnovativeand

successulmarketingstrategies.OnethatwillbeknowntomostNew

ZealandersistheWattiesFoodinaMinutepromotionseendailyjustbeorethenewsonTelevisionOne(andearlieronTV2).

Astheresultoresearch,HeinzWattiesrealiseditneededtohelpmeal

preparersthroughoutNewZealandanswerthequestionWhatsordinnertonight?Toprovidethishelpandhelpsellitsproducts,Wattiesdecidedto

communicatedailymealsolutionsandrecipes.Theserecipesneededtobeeasytoprepare,requirealimitedamountotime,usereadilyavailableingredients

andtastegreat.Also,orHeinzWatties,theyneededtoensuretheyincluded

awiderangeoproductsthatcouldbeusedintheserecipesandtheproductsneededtobereasonablypricedandavailableinsupermarketsacrossNew

Zealand.ThemainmarketingobjectiveotheFoodinaMinutecampaignwas:

To encourage the amily meal preparer todiscover a wide range o simple meal ideasthat the amily wil l love.

Othermarketingaimsweretoencourage

consumerstotrynewproducts,toincrease

consumerinterestinexistingHeinzWattiesproductsandtoincreasespecicproductandtotalsales.Heinz

Wattiesknewthatthiscampaignneededtoshowan

improvementinsalestobesustainable.

HeinzWattieswanteditscustomerstoseeitsproducts

asacomplementaryanduseulcollectionoconvenientoodingredientsoreverydaymealpreparation.Thetargetmarketwasidentiedasthemainmealpreparerwhowas

usuallyalsothehouseholdshopper.Thiscoveredabroadtargetage-rangeromyoungpeopleinfattingsituations,to

youngcouples,toamilies.Themarketstrategywastoreach

allNewZealandhouseholds.Takenacrossthewholemarket,

expandingamealpreparersrepertoireromvemealstosixorseven(ormore),andensuringWattiesproducts

wereintegraltothatexpandedmenu,wouldamounttoasignicantincreaseinspecicproductandtotalsales.

ThisthinkingledHeinzWattiestotheinnovativecommunicationstrategyoFoodinaMinute .Thisstrategyledtothe

developmentoanewcontent,anewormatandanewmediastrategy,and

brokemanyothetraditional advertisingconventions.

Whilethetelevisioncookingshowprovidedtheimpactandhelpedinspirethehouseholdshoppertotrytherecipe,HeinzWattiesrealiseditwouldneedto

supportthetelevisionwithothermediathatmoreeasilygavethespecicsothe

recipes.Thisincludedrecipeleafets,aspecialmonthlyeatureinNextmagazine,wherethepresenter,Allyson

Goton,isoodeditorandtheFood in a Minute

cookbookwhichisoneoNewZealandsbestsellersinthecookbookrange.Withthewebidentiedasoneo

themostimportantwaysodeliveringtherecipes,theFood in a MinutewebsitewaslaunchedinMay2002.Todayitisthemarketleaderintheoodandbeverage

segmentotheNewZealandwebmarket,witha30

percentshare.Itreceivesover4millionhitspermonth.

HeinzWattieshasnewinitiativesinthepipelineor2007,includingrecipe

textingandKidsintheKitchen.Wattieshasbeenatrail-blazerinadoptingthewebasakeycommunicationstoolorpromotingitsbrandsandsales.

7 Researchanddevelopment

HeinzWattieshasalwaystakenalong-termviewoinnovation.Thisisevident

initsproactiveapproachatKowhaiFarm,aresearcharmassociatedwith

LincolnUniversityinChristchurch.Thisisrunasacertiedorganicarm,andHeinzWattiessupportsthisresearchintoorganicarminginordertoencourage

armerstogroworganicallyandhelpthemmaketheswitchromconventional

toorganicarming.Itisawayoincreasingopportunitiesororganicproductinboththedomesticandexportmarkets.

Indeedwithmarketleadershipinover20categoriesandaccesstoqualityingredients,HeinzWattieshasestablishedareputationamongHeinzglobal

companiesordevelopingandtestingnewproducts.TheNewZealandmarket

isanidealsizetoallowproductconceptstobetrialledandrolledouttoothermarkets.Thisworkisundertakenbyateamo40productandpackaging

developmentstaandhasresultedinmanyworldrstscomingromNew

Zealand,includingsaucesandpouchmeals.

AdedicatedacilityatoneoHeinzWattiesplantsinHawkesBayalso

undertakesresearchanddevelopment workorHeinzJapan.TheteamhereincludesstabroughtromJapan.

8 Conclusion

HeinzWattiesisahighlysuccessulcompanyintheoodsectorbecauseoits:

Skillsininterpretingmarketintelligence

Understandingoitsmarkets,bothdomesticandinternational

Commitmenttoprovidingconsumerswithhighqualityproduct

Abilitytomovequicklyonnewproductdevelopment

Realpassionandcommitmenttoproductandmarketinginnovation.

Itisalargecompanywhosemanagementstyleenablesittobeagiletomove

rapidlytokeepaheadothepack.

GLOSSARYAdvertisingAdvertisingisbringingaproduct(orservice)totheattentionopotentialandcurrentcustomers.Advertisingistypicallydonewith

signs,brochures,radioorTVcommercials,directmailingsore-mailmessages,personalcontactandthelike.

BrandThetradingnameoaproductthathasahighlevelorecognitioninthemarketplace.Successuldevelopmentothebrandandbrand

mark(identiyingsymbolsanddesign)isaconsiderablemarketingtool.

InnovationAnewandcreativeidea,productorservice.Theprocess

oconvertingknowledgeandideasintobetterwaysodoingbusinessorintoneworimprovedproductsandservicesthatarevaluedby

thecommunity.Theinnovationprocessincorporatesresearchand

development,commercialisationandtechnologydiusion.

Marketresearch Findingoutinormationaboutthecharacteristicsopotentialcustomerstosolvemarketingproblemsandhelpwithmarketing

decisions.

MarketingTherangeoactivitiesthatrelatetoidentiying,anticipating

andsatisyingcustomerneeds(protably)bymeansostandardtoolssuchasmarketresearchandpromotion.

ObjectiveAmeasurablegoaloroutcome.

OrganicProductionooodunderanaturalsystemusingminimalorzero

syntheticchemicals.

Researchanddevelopment(R&D)Future-oriented,longerterm

activitiesthatresultintechnologicaladvancesbasedaroundthreestages:

research,inventionandinnovation.

StrategicLong-termgoalsandobjectives(usually3-5years).

TargetmarketThegroupocustomersthataproductorserviceisdesignedtosatisy.

TurnoverTheamountomoneyearnedbyabusinessthroughsaleso

goodsandservices.

Value-addAnenhancementtoaproductorservice.

Questions and Extension Activitiesor Heinz Watties are on www.bizcs.co.nz

You will also fnd links to theWatties website

visit www.bizcs.co.nz For extension activities and questions on Case Studies Downloads Company ino Current Case StudiesNewZealandBusinessCaseStudiesLtd.Whilstevery

efforthasbeenmadetoensureaccuracyofinformation,neitherthepublishernortheclientcanbeheldresponsibleforerrorsoromissionsinthisCaseStudy.