Heinz conducts focus group analysis before product development begins

While almost all consumer product companies conduct market research before conceiving, developing, or launching a product, not every company approaches this process the same way.

H.J. Heinz, a $2.5 billion international food conglomerate, believes that primary market research is one of the most significant elements in the product development process. “Our fundamental approach is to get close to consumers and understand what they want,” says Casey Keller, Managing Director for Ketchup, Condiments and Sauces at Heinz North America. “Get marketing and R&D—and even sometimes some of the other functions—involved in understanding, so that when we design and develop a new product proposition, it is designed with the consumer in mind for optimum success and based directly on contact and feedback from them.”

The concept behind EZ-Squirt, one of the company’s most successful product launches, was created precisely this way. Heinz knew that kids use more ketchup per capita than any other age group, and that the 125 year old brand needed some updating to attract this user group. So they went directly to the source to find out how to make ketchup a fun, creative food experience for kids. While brainstorming with a group of kids aged 6-12, the idea of what would make ketchup easier and more fun was born – turn it into a way for kids to create art while enjoying their food. These efforts led to several innovations that propelled EZ-Squirt to success. The consumer groups suggested changing the color of ketchup to make the experience more fun. “They thought that would really identify it as a product for them and not necessarily for their parents,” says Keller. Another key observation that originated from this focus group was the overall packaging. In order to allow kids the ability to hold and control the bottle, it needed to be shaped different to fit smaller hands and to be much softer.

More than 10 million bottles of EZ Squirt Blastin Green were sold in the first seven months, with Heinz factories working 24 hours a day, seven days a week to keep up with demand.

Although, primary market research is the most costly form of research a company can conduct, the benefits can be reaped two fold. However, when you are in a mature market like Heinz is, spending the money to understand first hand what problems your customers face, better positions you to be able to provide a viable solution. This research should not be the only data collection you perform as your company works to develop new products.

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