New Product Failure

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New Product Development Analysis of new product failure – Heinz EZ Squirt In 1869, Henry J. Heinz began packing food in small boxes and sold it on a small market in Pennsylvania. With his friend Clarence Noble, they founded “Heinz Noble & Company” by marketing horseradish. But that was so new that it didn’t work very well and the company went bankrupt in 1875. But Heinz didn’t give up and a year later, with his brother, he founded another company distributing tomato Ketchup as its first product. The company grew up and Heinz became the only shareholder renaming his firm “H. J. Heinz Company”. He also introduced the famous slogan “57 varieties” more or less randomly just knowing that 7 was one of the number which had a psychological influence on all people of all age. In the beginning of the 20th century, Heinz became a corporation and started pioneering for sanitary food preparation lobbying in favor of Pure Food and Drug Act. By the end of this century, Heinz’s company doubled the Standard & Poor’s average annual return. Thanks to this growth, the company acquired and created several other now-famous brands as Weight Watchers, HP Sauce, TGI Friday’s, Daddies, … Nowadays, this firm supplies stores, restaurants and other facilities throughout 200 countries selling 650 millions of Ketchup bottle each year. We discussed during all the class of “New Product Development” we had hat even a company like Heinz, which has launched the Red Tomato Ketchup at a worldwide scale making this brand one of the most famous in the world can’t stay waiting for money to get in. They have to innovate and go past their objective in order to create new famous product and diversify their product range like they did with the mustard for example. Well, in 2000, Heinz chose to introduce the “EZ Squirt” colored ketchup. Even though green or yellow

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