The CEO of Heinz on Powering Growth in Emerging

Markets
How I did it..
Group 1
Prabaha Jati PGP04026
Praveen Prabakar PGP04028
Rajagopalan
Sadagopan
PGP04031
Rajiba Tiria PGP04032
Rohit Gupta PGP04035
Abhishiktha Sarella PGP04038
Situation: 1993
Emerging Markets? no more
Growth in the developed Markets
were slowing down
Need to diversify Revenues
Important to have a footprint in
newer Markets
Infrastructure- Standard of Living
Importance of Emerging Markets:
Existing Markets: Western European
and North American markets
New Markets : China,India,Russia,
Indonesia
Understanding Diversity
Diversity,Significance
of New Markets
AAA Strategy
A
P
P
L
I
C
A
B
I
L
I
T
Y

Suiting the Local
Culture
China-Soy Sauce
Korea-Ketchup on
Pizza
Philippines-
Banana flavoured
A
V
A
I
L
A
B
I
L
I
T
Y

Relevance of
Distribution
Channels to the
company
Changes made
Modern Grocery
and
Supercenters-
Safeway, Kroger
and Walmart
100%
China Chain
Grocers 50%
Market Share,
Russia 40%, India
< 15% Market
share
A
F
F
O
R
D
A
B
I
L
I
T
Y

Present Western
Markets, Target
Consumer is rich
and buy giant
bottles
New Markets,
Lesser Spending
Capacity-newer
Packaging,
smaller SKUs, in
range of 3 cents
Understanding Pulse of Local
Working Environment.
Reliance on Local Managers to
understand Local Employees,
and customers.
Lowering the Number of Expat
Managers
Training given to Local
Managers to do things the
Heinz way.
AFFINITY
Diversity,Significance
of New Markets
AAA Strategy
Organizational Life Cycle of Heinz
In Developed Heinz was pretty old
company.
Saturated market.
Lots of competition.
New emerging market like BRICK nation,
Argentina, Venezuela were growing
rapidly.
Only option left is Diversification

Growth in emerging market through acquisitions
1999
ABC
Indonesia
Worlds
largest soy
sauce
brand
2001
Productos
Columbia,
Costa Rica
Banquete
sauces
maker
2004
50.1% of
Heinz
foods
South
Africa, a
JV With
pioneer
foods
2005
petrosoyu
z in
Russia
2006
ABAL in
Mexico
2010
49% in
Cairo food
industries,
Egypt
Foodstar
in China
2011
Coniexpre
ss maker
of Quero
Sauces,
Brazil
Heinz always focused on Concentric Diversification
Heinz Strategy of acquisition
Look for strong synergy and consistency
Solid brands with good local management.
Growth, Scale , Scope and their synergies.
Price and premium on the basis of sustainable growth.
Local Tax system, Market, Regulatory system,
currency trend and political condition
Strength of economy of nation.
Success mantra of Heinz in Emerging market
Risk minimization by diversification
Almost equal investment in all BRIC nation and others.
Product according to local taste and Local management.
Product Packaging and Pricing accordingly.
Patience: As Indian business took 7-8 years to rebound.
Committed workforce and Good relationship with Govt. and bureaucrats.
Awareness about new product in developing nation
Thank
You.!