Revenues of Heinz Company

Introduction

H. J. Heinz Company is one of the best performing companies in packaged food industry in the world. The company aims at providing sustainable measures towards improving people's health as well as providing profitable growth for their shareholders.

Ways in which packaging can improve sales revenues of Heinz Company

There are a number of ways in which Heinz Company can increase sales by packaging. First, packaging can increase buyer's confidence. By selling incredible products, customers will have a reason to come back to Heinz stores again and again. There is on best way to do this. Branded packaging not only attracts the current customer to come again to purchase your products but also acts like trumpet to those who will see the customer carrying that branded product. The implication here is that the branded packaged product will shout to other potential customers about your store. The customers who have used your product will always rally about your store, and the combination of the two will increase sales hence profitability.

Secondly, packaging is one of the cheapest and cost effective forms of advertisement. For instance, carrier bags can act as a form of advertising your product. Heinz needs to consider the cost of giving a plain carrier bag to a bag which contains its logo and name. You will find out that the cost is the same, but the significance of putting a company name and logo is crucial. The company will be able to save advertisement costs of other forms as well as attracting customers to the company's stores, and this will reduce costs leading to increase in sales hence profitability.

Thirdly, packaging can increase the perceived value of the product. This type of increasing sales does not work immediately the customers' purchases from the company stores. It may take s couple of time before starting rallying about your products to the rest of the town or world. For instance, packaging products in attractive or gift boxes with some details about the product usages can increase its value instantly. A good example is when a gift box valuing, let's say, $0.48 can easily increase the value perceived product to, let's say $6. This implies that the company is in a position to gain an extra of $5.52 hence high revenue realized.

Fourthly, packaging can dictate the company's image. Companies with good image will always attract potential customers. One of the Heinz missions is to reduce greenhouse gas emissions, water consumption, energy consumption and solid landfill waste at least by 20 percent in the fiscal year, 2015. This goal can be profitable via packaging. For instance, the company can decide to introduce reusable carrier bags which are environmentally friendly. The current and potential customers will perceive this move healthy. This can as well be achieved by printing a small message of the intended mission of the company.

Finally, packaging can be used to promote special offers and sales. There are customers who effectively use their packaging when having ongoing sales. They believe that using the carrier bags to boost their sales in connection with their current advertising will promote the pace they get (Calver, 26).

Product portfolio (PLC) of pets' food range of Heinz Company

Every product has got a product life circle in which it appeals to consumers. During this period, the product undergoes variations in terms of demand, competition, product market share, consumer liking and understanding of the product. In this case, the paper will analyze the PLC of Heinz pets' food in the five stages of the product life cycle. Heinz Company so far is the leading pets' food manufacturer in Canada and South Africa.

Introduction

The company started manufacturing pets' food back in 1963. At this stage, the product was new in the market. Only a few potential customers had the information about the product. The company may have experienced small profits or losses because it had to undergo development and advertisement costs. This is the stage where the new product was introduced to the market with the aim of capturing a large share of the existing market.

Growth stage

Years later, the product's knowledge had increased, and the company increased its consumers. Marketing was applied to strengthen and establish the brand and the image of the product. High profits were generated; however, the advertising expenses were still high. The prices were kept low due to the existed competitors in the market.

Maturity stage

The product range was introduced by the increase of width and depth in the production sector. This is the stage where the company decided to expand its market to international level. For instance, Heinz expanded its market to Europe, Asia Africa and South America. Despite of the increased competition, the company reacted positively to maintain its market scope. The company maintained its market scope by application of advertisement, which was used to reinforce the image of pets' food. This is the stage where the company experienced the pick of its sales. This is the period when the company recorded highest profit ever. For instance, the company recorded annual sales of over $200 million only in South African region; the highest sales margin recorded in the area.

Saturation stage

At this stage, Heinz Company started gaining more new customers. For instance, it increased its factories across the world. The company has always been keen on its branding and packaging in order to keep its purchasing trends. For instance, as a result of expanding its production sector, the company was able to experience the economies of scale. The then CEO of Heinz, Anthony J. F. O'Reilly introduced a flexible pricing strategies, and secured brand name with the aim of maintaining the full value of this product. He increased the market base without altering the quality of the product in order to maintain and attracting potential customers. However, the profits earned at this stage were relatively low as compare to the growth stage.

Decline stage

At this stage, sales fall at extreme rate as the company concentrate on core production. The company focuses on reducing advertising costs and mopping-up the potential market. Profits made hear are good enough since the development costs were catered during the first stage of PLC. However, overall profits are likely to fall due to low sales experienced. Prices are likely to fall, but may be stable if the company concentrate on the remaining market niche.

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