Introduction

McCain Foods was founded in 1957 in Canada by the McCain brothers Harrison, Wallace, Robert and Andrew. 

McCain Foods is now the largest chip producer in the world with a market share of almost 33% and more than 20,000 employees working in 57 locations worldwide

• The McCain brothers had a simple philosophy

'Good ethics is good business'.

Good Business

SLEPT analysis and social factors

Social Factors

Consumer buying patterns are determined by trends.

McCain has responded to changing customer tastes in the following ways:

McCain's potato products are now pre-cooked in sunflower oil instead of regular vegetable oil to reduce saturated fats.

There is no added salt in oven chips and added salt has been reduced by up to 50% in other potato products.

Consumer buying patterns are determined by trends.

Legal factors• The government's Food Standards Agency has

recommended that firms put 'traffic light' labels on food to help people understand what they are buying and to help them make the right choices:

Red represents high levels of ingredients such as fats and salts.

Green represents low levels.

Economic and political factors

• Economic factors include changes in buying patterns as people's incomes rise.

• McCain has risen to this challenge by creating a range of varieties e.g. McCain's Straight Cut Oven Chips, Home Fries, roast potatoes and wedges, to appeal to a variety of customers. • On political factors McCain supports the

government's initiative.

• It believes that the foods that it provides, including potato based products, are nutritious provided that they are prepared in a healthy and simple way.

Technological changes

• McCain is continually being faced by new challenges from technological factors.

Rising trend for Ready-to-Eat foods.

Expanding demand for private label products

•Limited presence in a fast growing product segment may have an adverse affect on the company's market share.

•The company does not have the kind of access to financial resources that public companies have.

•Strong focus on quality.

•McCain is the leading producer.

•Company's leadership position in multiple geographic markets gives it a competitive edge.

• ConAgra Foods, Inc.

• J.R. Simplot Company

• Blaine Larsen Farms, Inc.

Strengths

Swot Analysis

Weakness

WeaknessThreats

The Marketing Mix

• Product - this has to look and taste good are made from wholesome ingredients

• Price - the price is low enough for sales but high enough for profit

• Place – the place describes McCain’s business-to-business (B2B) channels through which products get to market..

• Promotion – it fits with McCain’s ethical position.

Product McCain Oven Chips, captured the public

imagination immediately and continue to

sell well without needing to be changed.

Other products change through time or

are adapted to create new variations, e.g.

curly fries or thin and crispy fries.

External Influence

• The company's philosophy supports the 'calories in/calories out' principle.

• McCain now only uses sunflower oil in the preparation of its chips.

• Having a wide range including healthier options, the company can meet different consumer needs for different meal occasions.

Managing Quality

• To protect quality throughout the whole supply chain, McCain manages its own potato seed development.

• Only the best potatoes are chosen to make McCain chips and potato products.

• This provides products specially designed for use in restaurants and canteens.

Pricing Strategy

McCain uses a range of pricing strategies associated with adding value for money.

• 'extra-fill' packs can give the customer up to 30% extra free.

• Rewarding Regular Buyers for a particular product.

• To offer product at a special promotional price

Place

B2B

Promotion

Promotion falls into two main categories:

• Above-the-line – paid for advertising such as TV, print and

• Below-the-line – all other forms of promotion i.e. leaflets or email newsletters.

Conclusion

• 'It's All Good' is a message that is embedded in all aspects of McCain Foods' marketing mix.

• McCain remains a trusted brand.

• McCain also takes great care to minimise its impact on the environment.

• Promotion of the products focuses on the positive relationship between McCain food and a healthy diet