Published by MBA Skool Team, Last Updated: November 19, 2017
Marketing Strategy of McCain Foods analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on McCain Foods marketing mix, help the brand succeed in the market.
McCain Foods marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the McCain Foods Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in McCain Foods marketing strategy can be explained as follows:
McCain is a global leader in manufacturing ready to cook frozen food products, serving customers across the world. The key products in its marketing mix include McCain sweet potato, McCain home roasts, McCain wedges, frozen vegetables and ready to eat meals. The core ingredient used in McCain foods is a potato that delivers potassium, fiber, iron and virtually fat free. Some of the key products in the market are as follows
• McCain Smiles, Tasty Taters
• McCain Classic Cut Fries, Extra Crispy Classic Fries, 5 Minute Fries, Steak Fries, Crinkle Cut French fries
• McCain Shredded Hash Browns and many more
The products are changed according to the regional location and with time, whereas some products are so popular that it is same since many years, for example McCain Oven Chips.
Image: company website
McCain Foods Price/Pricing Strategy:
Below is the pricing strategy in McCain Foods marketing strategy:
As this segment is a competitive market, low customer loyalty McCain keeps its prices almost similar to its competitors.
The prices are set with keeping certain objectives in consideration, maximize profits, achieve target return on investment, achieve a sales figure, match the competition and achieve and augment the market share of the products. The total cost of the products includes costs involved in production, research and development, transportation charges and direct costs such as raw materials and ingredients. McCain realizes the customers’ mindset during the purchase of the products. If it is unique product customers are ready to pay a bit extra cost, making the product premium in category compared to its competitors. McCain uses a range of pricing strategies to market its products. McCain have discount facilities over the MRP which makes the customer feel that they are paying less for more quantity. Also they have extra by weight sales strategy, i.e. 20%, 30% quantity at the same MRP, which makes customers wanting to buy their product. These pricing strategies in its marketing mix help them to rope in new customers as well as retain old customers. The profits are drawn from the increased volume sales that take place on the discount and promotional products.
McCain Foods Place & Distribution Strategy:
Following is the distribution strategy in the McCain Foods marketing mix:
McCain Foods has an international presence in several countries. It has forty seven production plants spread over six continents with products available in over one hundred and sixty plus countries. McCain being a B2B organization does not sell its product directly to customers. It makes its products available with retailers and wholesalers, for example supermarkets. McCain pays for end of shelf position McCain achieves customers attention and they are more likely to buy them. The transportation services that McCain uses to take its good from factories to stores is outsourced and delivery takes place directly to the retailer’s central depots for further distribution of stores. McCain follows sustainable practices at workplace. They aim at reducing the carbon footprints and have taken steps to achieve this. Double decker trucks helps to save approximately 2000 lorry journeys a year. Also they provide assistance to the transport services and help them to install solar panels on the truck.
This helps them to carry internal lifting mechanism and thus save electricity.
McCain Foods Promotion & Advertising Strategy:
The promotional and advertising strategy in the McCain Foods marketing strategy is as follows:
McCain has its philosophy ‘Good ethics is good business’. Make has a commitment not to advertise to children less than 12 years of age. It aims that its products carry clear nutritional information on levels of fat, saturated fat, salt and sugar. The two main aspects of production include the following. Above-the-line promotion category aims at promotions through TV channels, radio, traditional forms. It aims at a passing a good message to a large group of audience. There is no particular way to measure the impact of the sales through these mediums. Special display hoardings at key places, supermarkets, ads on TV (Karishma Kapoor endorses McCain in India) are the few examples of this category). Below-the-line promotion category includes promotional activities under the direct control of the company. Special events, product launch, direct mailing are few examples of below-the-line category. Regular surveys, feedbacks about their lifestyles, eating habits via email, newsletters enable McCain to gather information and improve their products regularly. PR group is responsible to create awareness and goodwill among consumers by organizing roadshows. Also they sponsor TV shows which help them to be visible to a larger audience. Hence this gives an overview on marketing mix of McCain Foods.
About McCain Foods:
McCain Foods is the Canadian multinational company founded in 1957. McCain is the largest manufacturer of frozen potato in the world with a market share of 33%. It operates in the FMCG sector.
McCain has over 20000 employees and generates more than C$8.5 billion in annual sales. They continuously develop products that meet the regional needs and try to create good food that are delightful and fresh in nature.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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