While many manufacturers react to an economic downturn with drastic cuts to marketing, clearly Heinz knows better.
Can branded manufacturers afford not to advertise when consumers are looking for any excuse to save money by switching to private label?
And once they switch, how will you ever get them back?
The H.J. Heinz Co. plans to push its products even harder in the second half of the fiscal year, increasing its marketing budget to combat intense competition in the frozen food and condiments aisles as well as pressures from private label rivals.
William R. Johnson, Heinz chairman, president and CEO, said yesterday that consumers continue to be intensely focused on bargains.
But he also said the market seems to be stabilizing and that makes this a good moment to invest in gaining market share.
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