The Times 100 Business Case Studies Edition 15
The Times 100 Business Case Studies Edition 15 The marketing mix in the food industry Mc. Cain Foods
Introduction to Mc. Cain Foods n The largest chip producer in the world q q n Mc. Cain Food’s brand ethos – ‘It’s all good’ q q n Market share 33% 57 locations worldwide; 20, 000 employees UK operations in Scarborough, North Yorkshire A B 2 B organisation Reflected in quality of food Relationships with suppliers, community and customers Mc. Cain aims for sustainable business q q Using alternative energy sources (wind turbines) Supporting local charitable causes and national projects
The marketing mix at Mc. Cain n n The right mix needed to achieve objectives and customer satisfaction Balance of 4 Ps different for each product q q Product – wholesome ingredients Price – attractive to customers, but profitable Place – positioned to compete for market share Promotion – in line with company philosophy and objectives
Product n Mc. Cain protects quality of product throughout the supply chain q q Works closely with selected farmers to ensure high standards of production Selects specific seeds for the crops Uses sunflower oil in production Products developed to meet healthy options as well as for taste
Product portfolio n Mc. Cain offers wide range of frozen potato products q q q n E. g. Oven Chips, Mc. Cain Home Roasts, Mc. Cain Wedges Some products are best sellers from the start, e. g. Oven Chips Others are adapted or have variations, e. g. , Curly Fries Product changes driven by different factors q q Customer demand, e. g. healthier eating Changing lifestyles, e. g. microwaveable options n Product portfolio analysed with the Boston Matrix
Boston Matrix n n Identifies categories of products Enables the business to develop strategies for each n n ‘Cash cows’ generate income with little investment ‘Stars’ may incur costs of promotion but should generate income in return ‘Question marks’ incur costs; may turn into ‘Cash cows’ or ‘Dogs’ may need to be discarded
Price Pricing addresses four key issues Achieving business objectives, e. g. n 1. q q q 2. 3. 4. Maximise profits Achieve return on investment Attain market share Cover all costs, including overheads Be acceptable to customers Fit with competitors n Mc. Cain pricing strategies give value for money q Extra-fill packs n n q More weight for no extra cost Rewards regular customers Promotional pricing n n Special price marked packs Attracts new customers to try the product
Place n Channels to position a product q q q n Mc. Cain is B 2 B organisation – no direct relationship with customers Sales through wholesalers and retailers (e. g. supermarkets) Secures key positions for point-of-sale Distribution is outsourced q Products delivered directly to retailers or wholesalers n Mc. Cain reduces environmental impact q q q Use of local farmers to save food miles Double-decker trucks to save lorry journeys Lorries have solar panels to generate additional power
Promotion n Above-the-line q Mc. Cain takes part in paid-for advertising to wide audiences n n TV and press advertising Advertising on supermarket trolleys Displays in supermarkets Below-the-line q A combination of direct methods of promotion also used n n Direct mail, e. g. door-to-door leaflet drops Events Customer email newsletter – creates relationship unusual for a B 2 B company Public Relations, including sponsorship of TV programmes and UK Athletics
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