1) Situational Analysis

1.0 Introduction and Mission Statement

McCain Food Ltd (hereby referred to as McCain) has approached us, as marketing

managers, to increase their sales volume and revenue for their Purely Potato product

line.

The aim of this marketing plan is to analyse their current internal and external

business environment in order to achieve these objectives. We believe that we can

accomplish these objectives through the strategies and tactics outlined in this

marketing plan.

Although McCain is a global corporation, we have structured our marketing plan to

focus solely on the impact within Australia.

Mission Statement:

To provide a nutritious, convenient and tasty product that satisfies the needs and

demands of the largest array of consumers possible.

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External Analysis

1.1 External Environment Analysis

This section focuses on McCain’s external business environment. We have used the

PESTN analysis, an acronym that stands for the Political, Economic, Social,

Technological and Natural issues that will influence the strategic growth of McCain,

in order to analyse their external business environment (Jiang, 2009).

Political &

legal

The main factors affecting McCain from a political and legal

viewpoint are the national food standards within Australia. The

Food Act 1984 emphasizes, food business owners’ legal

responsibilities “to ensure that food sold or prepared for sale is safe

to eat” (Health Australia, 2010).

These policies add constraints and limitations to McCain’s

production procedures and their overall product. McCain’s adjust

their logistics and food treatment in order to comply with these

standards, which generally increase the cost associated with

production.

Economic McCain’s fundamental goal, like all other profit seeking firms, is to

maximise profits. In order to achieve this goal there are a number

of economic factors that McCain’s needs to consider. Economic

factors such as, the state of Australia’s economy, influences

consumer demand and the supply of goods, and both affect

McCain’s business life cycle.

For instance, the Global Financial Crisis (GFC) in 2007 increased

demand for cheaper fast food such as McDonalds. This shift in

demand, meant that people were eating fast food more than

cooking at home which is a situation that directly affects McCain

(Eckersley, 2010).

Socio-cultural The Australian Bureau of Statistics (2010) figures indicate an

increasing trend in female labour participation rate whilst Gough

(2010) notes an increasing trend in people, especially “city

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dwellers” being time poor and stressed. Both statistics indicate an

increase in household disposable income. This creates opportunities

for McCain’s Purely Potatoes as there is a window for targeting

time stringent and convenience seeking individuals.

There is a growing social trend in the ageing population as a result

of sustained low fertility and increasing life expectancy

(Productivity Commission 2005). The Australian Bureau of

Statistics (2010) released figures that indicate in the 12 months to

30 June 2009, the number of people aged 65 years and over in

Australia increased by 85,800 people representing a 3.0% increase.

This trend indicates a new and growing group of individuals for

McCain to target.

Hill, C.W.L, Jones, G.R., Galvin, P. & Haider, A. (2007), also

identifies an increasing trend in maintaining a healthier lifestyle.

Consumers seeking healthier food options and the availability of

nutritious information have influenced fast food chains such as

McDonalds. McCain has acknowledged this trend by promoting the

health benefits of their Purely Potatoes product.

Technological In the past two decades there has been a rapid growth in technology

and operational logistics (Hill et. al., 2007). It is vital that

organisations such as McCain, adopt new technologies in order to

improve efficiency and effectiveness, so as to remain competitive

within the industry. One of the main reasons for doing so is to

increase production efficiencies and lower base costs (Hill et. al.,

2007) For McCain this means they adopt more efficient supply

procurement and processing machinery.

Natural The current situation maintains a plentiful supply of potatoes for

McCain in Australia. However, it is important not to eliminate the

possible adverse effects of a natural disaster on the supply of

potatoes for McCain. (Robbins, Bergman, Stagg, Coulter 2006).

Furthermore, it is important to consider McCain’s environmental

3

responsibility as this can affect their brand equity and consumer

loyalty (Kotler, P., Brown, L., Adam, S., Burton, S., & Armstrong,

G., 2006).

4

1.2. Industry Analysis and Critical Success Factors

Threat of

new entrants

In Australia’s potato processing and production industry there are

great barriers to entry due to the ability to access the necessary land

and capital to initiate plantation and growth of the product

(Horticulture Australia Limited, 2009).

However, according to Euromonitor International (2009) the industry

is also subject to increasing competition from private labels such as

Home Brand, which are produced offshore and more cheaply due to

lower award wages and tax laws.

Rivalry

between

competitors

McCain’s principle competitor, Bird’s Eye, targets a similar consumer

market to McCain (Simplot Australia, 2009). Their products are

almost identical and they both use similar advertising. The main

distinction between the brands is the perception that Bird’s Eye is a

frozen fish company, whilst McCain relies heavily on their frozen

vegetable products.

Although according to Euromonitor International (2009) McCain

faces increasing competition from substitutes by budget private

labels.

Bargaining

power of

buyers

Hills, et. al. (2007) states that firms operate based on consumer

demands and market resources, such as labor, financial abilities and

technological skills. Consumers pay an evident price for the services

sold to them by the firms. Such transactions create value to the buyers

and McCain because the benefits depend on the trading power of the

two. Buyers are likely to switch to different suppliers or substitutes if

the price of a product is considered high and they are not willing to

pay for it. McCain’s Purely Potatoes are priced at $5.31 per kilogram

opposed to $1.33 at the time for fresh supermarket potatoes (Coles

Supermarket Australia Pty. Ltd., 2010)

Threat of

substitute

Substitutes for a product influence the price. The elasticity of price

will depending on how close the substitute product is to the product in

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products question (kotler et al, 2006). McCain’s Purely Potatoes’ potential

consumers many substitutes available to them, as outlined in the

sections above. The main forms of substitutes are reconstituted

potatoes, fresh potatoes and other frozen potato products.

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1.3 Consumer Analysis

McCain’s chief target demographic is health conscious, convenience seeking families,

couples and individuals. Their target demographic for their Purely Potatoes product is

congruent with the company’s main target market. We have further categorised this

market into 4 key groups:

1. Families with two-working parents;

2. Families with single-parents;

3. Young, working adult couples and singles; and

4. Senior citizens.

The former section has indicated that Australia is experiencing a growing aging

population and so, this marketing plan will focus specifically on senior citizens.

Senior citizens.

The World Health Organisation defines senior citizens as the age of 65 years or

older person (Gorman 2000), thus we will use this definition in our marketing

plan.

Senior citizens, particularly those aged over 70, find it difficult to cook for their

families or even themselves as it may be too much of a physical or mental strain,

and so many turn to younger family members for assistance or paid help (ACT

NOW website 2010). McCain’s Purely Potatoes is a sound product for this

group of people as its primary benefit is its convenience and nutritional value

(Kirby, 2010).

Furthermore, elderly people face the challenges of finding products that do not

adversely affect their current health issues. Physical health is an obvious

problem for the elderly, with the incidence of most diseases and health concerns

increasing with age (National Aging Research Institute website 2010). Elderly

people also tend to have many ailments, most common concerns are high blood

pressure problems and cholesterol problems (National Aging Research Institute

website 2010), thus, like many Australians are today, they too are health

conscious and seek products that are fresh and full of nutritional value.

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McCain’s advertises their Purely Potatoes as 100% real potatoes that are just as

tasty and nutritious as fresh potatoes (McCain Australia, 2010). Shereen Jegtvig

(2008) states that potatoes are a good source of vitamins, minerals and fibre.

Additionally, processed vegetables maintain the same nutritional value as fresh

foods, and they are cost-effective and convenient (Fleenor 2007).

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1.4 Competitor Analysis

For the purpose of this analysis we have mainly focused on the frozen potato products

category, however we have also considered other significant competitors, such as

reconstituted potatoes and fresh potatoes. McCain is the market leader for frozen

potatoes with a 42.6% share of the market (Market Data Book “Frozen Food in

Australia to 2013,” 2009). McCain’s competitors can be further sub categorized into

two categories: indirect and direct competitors.

Indirect Competitors:

The four main indirect competitors for McCain are:

1. Woolworth’s Select;

2. Coles Home brand;

3. Lean Cuisine; and

4. Deb potatoes.

These brands do not produce products that could compete directly with

McCain’s Purely Potatoes as they do not produce an identical product, however,

they do provide substitutes such as frozen french fries.

Woolworth’s Select and Coles Home Brand have very different packaging and

pricing schemes which are targeted at a different market. Their schemes are low

cost whilst McCain’s are more expensive with a perception of a better quality

product.

Another indirect competitor for McCain’s Purely Potatoes is reconstituted

potatoes made by the brand Deb (the parent brand is Continental). Like Purely

Potatoes, these reconstituted potatoes are easy to prepare, with only three

minutes required (Unilever website 2010). However, they are made from a

powder and do not have the perception of being healthy.

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Direct Competitors:

The direct competitors for McCain’s Purely Potatoes are:

1. Bird’s Eye; and

2. fresh potatoes.

Bird’s Eye is an international brand owned by Pinnacle Foods and provides a

range of frozen foods such as seafood, meat and vegetables (Simplot Australia

Pty Ltd, 2009). Although Bird’s Eye is well-known for their production of fish,

they also sell frozen potatoes. They are shelved near McCain’s frozen potatoes

in most supermarkets, and thus are a direct and major competitor for McCain’s

Purely Potatoes.

In 1999, Birds Eye created a new innovation called Spud Heads which are bite-

sized fluffy potatoes that can be prepared in 15 minutes (Araneda, 1999). This

makes McCain’s Purely Potatoes a primary competitive product as they both are

frozen potatoes that are made for health-conscious, convenience seekers,

looking for a quick snack or a side-plate accompaniment.

Bird’s Eye and McCain also have very similar promotional strategies, where

they both focus on advertising through their colourful and upbeat television

commercials which form strong connections to Australians.

Another direct competitor for McCain is the regular fresh potatoes sold in all

supermarkets. These fresh potatoes are retailed at a much lower price where they

are currently priced at $1.33 per kilogram as opposed to $5.31 per kilogram for

Purely Potatoes (Coles Supermarket Australia Pty Ltd 2010).

Fresh potatoes also have the added advantage of having the perception of greater

nutritional benefits than frozen potatoes, despite research suggesting otherwise.

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Internal Analysis

1.5 Non Marketing Capabilities

Financial:

McCain are the frozen food market share leaders, dominating 27.3% of the industry.

Further, revenue almost doubled between 2003 and 2008 from $ 268 million to $ 400

million (Sallaman, 2010). It is estimated that McCain’s revenue has a stable growth

rate of 3.6 % per annum (Sallaman, 2010). These financial figures show that

McCain’s financial performance is prospering, which is promising for the future

prospects of the company.

.

Figure 1: McCain foods financial performance (Sallaman, 2010).

On a technical note McCain invested $3 million on television advertisements yet only

reports to have penetrated 2.3% of households and commands a mere 1.4% market

share in the potato sector. As previously mentioned a Purely Potato products only

turned over $1.8 million in sales over the course of a year which would indicate the

ineffectiveness of these television commercials and the need to explore other

promotional activities (Sallaman, 2010)

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1.6 Marketing Capabilities

This section will deduce McCain’s current marketing processes and capabilities in

relation to the performance and perception of the brand and the Purely Potatoes

product and the positioning of the current segment of the target market.

The performance

and perception of

the McCain’s

brand.

McCain is the market leader in the frozen food sector,

dominating 27.3% of the market (Sallaman, 2010). This

indicates its popularity with consumers and the loyalty they

posses due to the strength of the brand overall. This optimal

performance aids the consumers’ perception of the brand

which equates to strong brand equity.  

The performance

and perception of

the Purely Potatoes

product

The product design is practical and convenient. The Purely

McCain designed their Purely Potatoes packaging to be

aesthetically appealing, contain nutritional information and

whet the appetites of their consumers (McCain, 2009).

However this simple green background and presentation of a

bowl full of sliced or cubed potatoes neither evokes appetite

nor interest.

Furthermore, there is a general lack of knowledge and

understanding of Purely Potatoes related to product benefit

such as convenience and versatility as well as nutritional

attributes.

McCain utilizes several promotional activities in which to

advertise their Purely Potato product. The largest of these

efforts were two television commercials. These

advertisements only had a brief snapshot of food and there

was a large focus on the novelty idea of farming potatoes.

The second advertisement highlighted the convenience and

nutritional benefit of Purely Potatoes. It was not concurrent

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with McCain’s traditional form of advertising, but it delivered

more information about the product than the former

advertisement.

However, both of these commercials had little air time on

television and left no lasting presence of those quizzed about

the Purely Potato product (see Appendix B).

From our market research it was concluded that the overall

consensus among survey consumers was that the price of

Purely Potato products was remarkably dearer than both fresh

potatoes and competitor products (Appendix B).

Currently the price of 750 g pack of Purely Potato is retailing

for $3.98; that equates to $5.31 per kilogram. In contrast a kilo

of fresh potatoes is $1.33 and competitor potato products,

namely Birds Eye’s brand of traditional frozen potatoes and

wedges, both retails as $5.28 and $4.72 per kilo respectively.

The cost benefit ratio in this context is slightly skewed as the

promotional efforts have done little to convey the convenience

of the product.

The positioning of

the current

segment of the

target market.

McCain’s current positioning is distorted as there is no

continuity apparent in the two commercials. The first

commercial which depicts the stereotypical farm, herding and

shearing potatoes, does little to align itself with a clear target,

perhaps country families yet it is still dubious as the only part

of the commercial that would indicate this is the final shot of a

traditional family lunch held in an outdoor country setting.

The second commercial again does not target one particular

group of the market. There are no people in the ad, there is no

colloquial language used to appeal to consumers and there is

minimal emphasis put up on the health aspects which would

appeal to the healthy consumers in the market. 

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1.6 Strategies

Current

promotional

activities: TV

advertising

As mentioned in the section above, McCain’s had two main advertisements

for their Purely Potatoes product. One was entertaining and concurrent

with McCain’s traditional and popular television advertisements, but

devoid of essential product information. Whilst the other provided the

necessary product information, but was not able to maintain consumer

interest. Thus, neither has been successful for McCain, and it appears that

their $3 million spent on promotional activities has not been put to good

use.

Venues that

sell Purely

Potatoes.

McCain distributes its products through supermarket such as Coles,

Woolworth and IGA. However, there is a problem with the in store display

of the product. Consumers find it difficult to find Purely Potato because it

is usually stored on the bottom shelf of the freezer (Coles, supermarket

Australia Pty Ltd, 2010), which detracts from the product’s popularity and

awareness.

Packaging

McCain try to generate excitement and sales in frozen potato through their

attractive packaging. McCain has also long been a supporter of easy-to-

understand nutritional labeling and has actively participated in the

development of labeling changes (Anonymous, 2010).

Product

differentiation

Bird’s Eye also sell frozen potatoes and compete directly with McCain.

The main distinction between the products is the packaging and the parent

brand (Settineri, 2007). Other than Bird’s Eye, there are no exact products

on the market to rival Purely Potatoes. However, there are a number of

substitutes that are proving to be fierce competitors.

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Value of the

products

McCain are negotiating with potato farmer to cut down their base costs. It

is obvious through these actions that the company is aiming to minimize its

cost to compete with its competitors (Anonymous, 2010). However, the

price is still very high for the frozen food market, $5.31 per kilogram in

comparison to s main competitor, Birds Eye, who's price is $4.72 ( Coles

Supermarket Australia Pty Ld, 2010).

Also, a lot of consumers still prefer to buy the unpeeled, unwashed

potatoes due to economical efficiencies (Appendix B).

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1.7 Performance metrics

This section of the marketing plan looks at the current performance of McCain with

specific reference to customer satisfaction, brand awareness and advertising

effectiveness.

Passport GMID (2009) shows that McCain accounts for 27.3% of the frozen food

market, making them the current market leader. However the same cannot be said for

its Purely Potato products which only represents 1.4% of the potato market with

approximate sales of $1.8 Million per annum (Passport GMID, 2009).

The lack of sales and prevailing cost of production has resulted in McCain cutting

down its potato contracts with local growers. The growers were informed of a

reduction in 10% of potatoes purchased from Australian suppliers for the 2010-2011

seasons. In addition to this, McCain have also had to ask the farmers to cut the price

of potato supply by $45 per tonne which have led to further disputes between local

Potato suppliers and McCain since early 2009 (Weekly Times, 2010).

The major reason for this change in contract is attributed to the lack of sales of their

product ranges including Purely Potato. Since its introduction, Purely Potatoes failed

to reach its target revenue and profit levels. The lack of sales has led to reduced

revenue per unit and profit per unit, whilst the cost per unit remained the same. These

figures explain McCain’s recent actions which resulted in closing down their

processing plant in Smithton, Tasmania in November 2010 (Palmer, 2009).

Supermarket surveys (see Appendix A and B) conducted for the purpose of this

marketing plan found that people who purchase McCain’s Purely Potato products will

continue to do so. The convenience factor of the product was a driving force behind

this purchasing decision; the ease of meal preparation compared to regular potatoes

was deemed to be a huge benefit of the produce. Overall, we found that the customer

satisfaction level of the product itself regarding usage, consumption and taste factors

was high.

16

However, the negative aspects of the product were mainly dominated by the responses

made regarding the pricing of the product. The price of a 750g pack of Purely Potato

retailed for $3.98, which is $5.31 per kilogram (Coles Supermarket Australia Pty Ltd,

2010) was said to be too high when compared to the price of regular brushed potatoes,

which are sold at $1.33 per kilogram.

From a competition and substitute perspective, we found that the main substitute for

Purely Potato, the Birds Eye brand of Traditional Frozen Potatoes and Wedges, both

retailed for $5.28 and $4.72 per kilogram respectively, is still relatively less expensive

than Purely Potato. This resulted in the substitute being chosen over Purely Potato in

most scenarios (Coles Supermarket Australia Pty Ltd, 2010).

Also with the reference to these surveys, it was identified that the majority of the

shoppers at the supermarket were aware of the McCain brand of products, but a

significant proportion were unaware of the Purely Potato product itself. A further look

into the cause of this revealed that in most supermarkets, McCain products usually are

stored in the bottom compartment of the display freezers, thus making it hard for

potential customers to see and identify the product.

Furthermore, the ideology of looking for potatoes in the freezer section of the

supermarket is not a common thought process in the minds of consumers.

Identification of the product is a vital step in the purchase behaviour of consumers and

is an issue which should be dealt with immediately (Kotler, 2006).

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1.7 SWOT ANALYSIS

Strength Weakness

High nutritional value of product; Heart foundation ticket of approval

High degree of convenience associated with preparation

Strong market position of parent brand and high level of parent brand awareness

Product produces great degree of customer satisfaction

Year-round abundant supply of potatoes

Farming and production of product produces large carbon footprint

Susceptibility of operations and supply to natural disasters

Weak market share of product and poor unit sales

Comparatively expensive cost to fresh alternative and other substitutes

Poor product awareness within a strong brand

Poor placement within supermarket freezers

Opportunity Threat

Growing target market; growing aging population

Growing social trend in being health conscious

opportunities for more successful and innovative marketing strategies

Large number of both direct and indirect competitors and substitute products.

Competitors dominating supermarket freezer space

Lack of consumer understanding of frozen foods and their nutritional benefits.

Consumer’s perception of their disposable income has lowered post-GFC

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2) Marketing Objectives

Taking into account the information provided by the SWOT analysis, we have

established that there are many threats and weaknesses that McCain faces within

Australia.

We ascertain that McCain’s major weaknesses are the poor customer awareness of the

Purely Potatoes product. Their major threats are their direct competitors, fresh

potatoes and Bird’s Eye, and the substitutes products on the market. Their strengths

are their strong parent brand and their main opportunity is the growing age population

which has opened up a whole new target market.

Considering this information, we aim to increase the market share of Purely Potatoes

within the frozen potato industry by increasing the awareness of Purely Potatoes and

its benefits as well as increasing the product’s customer loyalty within the senior

citizens segment, all within the next 3 years.

These goals will be analysed and explained further in the strategies and tactics section

of this marketing plan.

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3) Marketing strategies

3.1 Targeting statement

Our aim is to target the senior citizens segment of the market (the definition of senior

citizen has been explained in the situational analysis).

As mentioned earlier, Australia is currently undergoing a growth in the aging

population. This segment has a large demand for convenient, yet nutritionally sound

food products. They also require smaller serving sizes, as compared with other

segments of the market, and McCain’s Purely Potatoes product satisfies all these

requirements.

3.2 Position statement

Our aim is to be the market leaders for the frozen potato market by increasing

consumer awareness of the product and creating greater product loyalty. By achieving

this, we believe we will achieve our market objectives of doubling McCain’s revenue

from the Purely Potatoes product.

3.3. Marketing strategies

The following strategies currently employed by McCain will not be changed:

Pricing

strategies for

Purely Potato

The price of potatoes is highly elastic; so the result of raising the

price of the Purely Potato product would lead to the loss of sales

Furthermore, an increase in price would give it the perception of

exclusivity, which would not beneficial to the product as potatoes

are common and popular.

On the other hand, we do not believe a decrease in price will be of

benefit to the company. A decrease may gain more sales for

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McCain, but it will not satisfy the costs and retain a sound level of

profits.

The Purely

Potato

product

Purely Potatoes do not have many direct competitors; Bird’s Eye

appear to be the only company that produces a similar product.

There are a number of substitutes available; however, the product is

distinctive enough and relevant enough to be successful on its own

without McCain needing to change the overall product.

The

distribution

of the product

Consumers generally purchase their potatoes from the supermarket,

thus we believe it to be a sound place to distribute the product.

The following table consists of changes to McCain’s current strategies that we advise

them to follow in order to improve the profitability and prosperity of the Purely

Potatoes product. We have devised tactics in order to achieve these strategies, which

will be further explained in the section titled: 4) Implementation/ Tactics/ Actions and

5) Financial Budget

Strategy Strategy description Tactic that achieves this

strategy

Physical

experience

We advise McCain to make the

overall consumer experience with

Purely Potato more pleasurable in

order to increase product loyalty.

In store promotion

Trade shows

People

involved in the

process for

Purely Potato

As stated in the targeting statement,

Purely Potatoes can be consumed by

and sold to a wide variety people,

however we advise McCain to focus

on senior citizens.

In store promotion

Trade shows

TV demonstrations

TV advertisements

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We also advise McCain to involve

more people from the community in

the promotion of the Purely Potato

product in order to increase product

awareness and sales.

Promotional

strategies for

Purely Potato

In order to raise Purely Potato’s

profile within the Australian

community, McCain must ensure

they promote Purely Potatoes

nationwide and using a number of

key places and channels in the

process.

In store promotion

Trade shows

TV demonstrations

TV advertisements

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4) Implementation/ Tactics/ Action Plan; and

5) Financial Budget

Tactics Who When CostIn store promotion

Coles, Woolworths

Employees of Coles and Woolworths

10 – 2pm For two non-

consecutive weeks (ie one week on, one week off, one week on)

Twice a week per store.

Nationwide: during August

During June in Brisbane

$4000 per week per store.

Consisting of - $1000 product usage- $2000 paid to store-$1000 overheads.

Trade shows: Have a chef at a stall cooking Purely Potatoes and issue spectators with show bags

The Royal Melbourne Show

Melbourne Caravan and Camping show

The Sydney Royal Easter Show

The Royal Exhibition (Brisbane)

Melb: September, March

Syd: April Bris: August

Royal Show –Estimated $13,000

Trade Show – Estimated $5,000

TV demonstration

Mornings with Kerryanne 9 – 11:30am daily

The circle

End of May – mid June.

Once or twice per TV show.

Estimated $25,000 plus.

TV advertisement

Everyone in Australia

Seasonal rotation: two week leading up to Christmas, Winter (end of May to the start of August)

Cost of Production of Ad: estimated $50,000 to $350,000 (Gaebler.com, 2010).

Cost of airing on National Television: approximately $1million to $2million (Gaebler.com, 2010).

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Further explanation of the tactics:

In store promotion

The In-Store promotion would be targeting customers who shop at Coles and

Woolworth’s supermarkets within Australia. The promotion would include tasting

sessions as well as product information and meal preparation ideas.

The people who would be undertaking these promotions would be the employees of

the supermarkets. It is important that these employees are customer friendly and are

well informed about the product.

The in-store promotional measures would take place within the stores between 10am

and 2pm every other week, twice a week per store over a period of a month. They

would be taking place during winter on the month of August for all parts of Australia

except Brisbane where it would be conducted in June. We have changed the month of

promotion in Brisbane as the trade show will take place in August and we do not want

to risk over exposure of the product.

The costs regarding this promotion are an estimated value that consists of the cost of a

number of packs of Purely Potato to be used, the amount to be paid to the store itself

and other overheads. The exact figure of this is difficult to calculate due to the lack of

available information but we can estimate a figure of around $4000 per week per

store. This consists of $1000 accounting for the packs of Purely Potato used, $2000

paid to the Supermarket and $1000 on other overheads.

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Trade shows

This next tactic would see McCain targeting trade shows aimed at the over 65

demographic that take place across Australia throughout the year.

The setup at these shows would be consistent across the board. McCain would erect a

freestanding stall emblazoned with the Purely Potato brand and images of potential

finished products. This stall would be manned by a team of promotional models

handing out show bags filled with Purely Potato recipe cards, a food magazine such as

Delicious, a novelty item such as a plastic potato peeler or spatula branded with

Purely Potato and coupons for a free pack of Purely Potato when presented at any

major Coles or Woolworths supermarket. The idea of handing out these coupons is

that post-show the company is able to track the success of this particular marketing

effort by attaining the number of coupons redeemed at the supermarkets. This will

also help McCain track which areas saw the majority of the coupons being used.

The particular shows that McCain would be targeting are as follows: the Royal

Melbourne show (September), the Royal Sydney Easter Show (April), the Brisbane

Exhibition (August) and Melbourne Caravan and Camping Show (March). We are

solely targeting the Melbourne Caravan and Camping show, as it is the largest of its

kind in Australia. Depending on the success of benchmarking, additional shows can

be added into the schedule at a later date and/or throughout the 3 year promotional

period.

These stalls would be positioned in the fruit and vegetable pavilions at the capital

cities’ Royal Shows.

The cost of the sample bag would be budgeted at $3 per bag based on its contents. A

run of 3000 bags would be produced for the Royal exhibition shows and 1000 bags

for trade shows. Those figures alone would cost $9000 to produce the bags for the

Royal shows and $3000 for the trade shows. Coupled on top of that and estimated

rental figure of $1000 for the trade show and $2500 for the Royal shows McCain

should budget $5000 per trade show and $13,000 for a royal show.

25

Television demonstration

This tactic refers to a cooking demonstration of the Purely Potatoes product on

popular midday or early morning shows. As we are looking to appeal to the over 65-

target market, we chose two programs that appeal to this demographic: Mornings with

Kerri Anne and The Circle.

This specific tactic would involve using the Purely Potato product in a cooking

demonstration centered around the idea of convenience in the kitchen. Using a

popular and well known chef will help to gain the trust of potential consumers and

will encourage consumer’s to purchase the product. An example of a recipe that might

be cooked would be a traditional family Sunday roast comprised of roast chicken,

roasted vegetables, salads and a potato bake.

The cost of such product placement in these television shows is unknown; however, in

accordance with other commercial television advertising figures a budget of $25,000

would seem an appropriate amount to cover costs. The frequency of such a segment

would be fairly low as it was decided that the demonstration would be shown during

the winter period, once at the end of May and again at the beginning of July to further

emphasize the nutrition and convenience of the product.

26

TV advertisements

The television advertisements would be targeting all households within Australia.

The advertisements would be aired at a seasonal rotation basis within the three years

where the marketing plan is active. Advertisements would be focused on the periods

leading up to Christmas and winter.

The advertisements would highlight the unique characteristics of Purely Potatoes with

an emphasis on the convenience factor and its nutritional benefits. Regarding the

timing for the commercials to air, we would be considering times that would reach a

larger segment of our defined target audience. The commercials would be aired

during midday and early evening. Specifically during advertisement breaks during the

news and cooking shows.

The costs involved in this can be split into two sections, the cost of producing the

actual advertisement itself and the cost of airing it on national television. The

estimated cost of producing an advertisement can range from $50,000 to $350,000 or

even higher (Gaebler.com, 2010). We advise McCain to spent between $50 000 and

$100 000. The airing of the advertisement on national television would cost

approximately $1million to $2million (Gaebler.com, 2010).

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6) Contingency Plan, Monitoring and Control

During the course of the three year cycle during which the strategies in this plan will

be implemented, McCain will set benchmarks in order to assess the possibility of

achieving their goal.

McCain will need to reassess the frequency and volume of sales of their Purely Potato

product on a quarterly basis, where changes can be made in the first half of the year

and then reassessed at the end of the year. McCain will also assess the product’s

market share on a bi-annual basis where errors can be detected or important aspects

can be addressed and, once again, reassessed after modifications have been made.

Lastly, McCain will conduct consumer surveys and other market research bi-annually

as this will provide them with sufficient customer feedback on preferences, attitudes

and behaviours in relation to the Purely Potato product. Improvements can be made to

the marketing strategies for the following years.

Once these assessments have been conducted, McCain will have a more profound

understanding of their progress. They will have to continuously reassess their

strategies and possibly reallocate resources accordingly. For example, McCain may

find that after the first year, the trade shows were not a successful way of reaching

more consumers and did not increase brand awareness satisfactorily, so they could use

the money they put towards the trade shows to a more successful strategy, such as

television commercials (if they find that television commercials are more successful).

If the strategies within this marketing plan do not succeed, McCain could possibly

maintain their current focus on targeting families and not focus specifically on

segments such as senior citizens as outlined in this plan.

McCain could also focus on the major health benefits of Purely Potatoes rather than

putting more emphasis on the convenience of the product due to the growing trend of

health-conscious families. Tactics could be altered where fewer resources could be

spent on television commercials, and more emphasis placed on print media.

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