Maizatul Nazwa Sahiman Student Id No: 031100165

BMK 501 TMA 1 MARKETING MANAGEMENT Semester July Dec11

Table of Contents
Executive Summary.........................................................3 Statement and Analysis Problem..................................4-8 Decisions Criteria and Alternative Solutions..............

8-11 Recommendations Solutions, Implementations and Justifications............................................................11-15 References...................................................................16

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Case Analysis: Proposal for McCains line of frozen products in Malaysia; Identify Marketing Plan, Product Mix, Tools, Challenges and Recommendations.

Executive Summary McCain Brother founded the company with simple theory good ethic is good business, about the relationship with our farmers, customers, environment, community and people. It is about the good company, making good and simple food. McCain Food is the worlds largest producer of frozen chips, 1st factory New Brunswick, Canada in 1957 and today as clear market leader, 45% of all frozen potatoes sold in the UK are McCain frozen potato. Long Term Business Strategy; ESWY International Marketing Pro is specialized in importing and distributing frozen food from Australia and US. The company mission is to be the leader in introducing imported frozen food with healthy, quality, affordable, variety and of course Halal products. This will be a good investment for the company the opportunity will be wider and not only Malaysia market but other countries that interested in selling Halal products; Indonesia, Singapore, Thailand and Philippines. Challenges Faced; A campaign awareness of Halal products food through media electronics and tabloids will make the consumers more concerned about the ingredients and served

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according to Islamic requirement especially for imported products. Actions Taken; getting approval, certificate and guidelines to ensure the ingredients is official accredited Halal form JAKIM for the following products; Purely Potatoes, Family Favorite, Forever Fries and Seasoned Perfection. Statement and Analysis of the Problem ESWY International Market Pro is rewarded as the sole marketing rights of the McCains frozen products in Malaysia. Distributing imported frozen food is extremely competitive but we believe having products from clear market leader will be the ticket to reach a large cross section of consumers. Cannibalism of our current products however may only hit us for temporary period as we believe that our product will hit a niche market, which will protect against cannibalism. Our goal is to hit 10% growth total sales and able to achieve 10% market share with strong marketing mix and strong brand will enable us to reach the target. McCains frozen products be sold out at hypermarket; Tesco, Carrefour, Giant and Hero, convenience store; 7 Eleven and PETRONAS Petrol Station and Restaurants in Hotels or with Western concept. Situational Analysis - Macro-environmental Forces
Demographic Trends in Malaysia of 28ml people and 65% from age of 15-64 years or

18.8ml will provide sufficient customer volume.

Social and Culture Trend where most of them seems to prefer faster way to prepare

meals for the family especially working mother or wife. Many families may desire for eating together session and this product is attractive for the family to have snacking session. Growing concern on obesity for kids in Malaysia and looking for products as healthy as possible with less salt and oil.

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Economic Condition and Trend in Malaysia recorded a healthy GDP growth of 4.6% and the spending power in food sector is increasing. Many people willing to pay for higher price products provided it faster, easy and healthy.

Legal and Regulatory Situation and Trends base on Malaysia Food Act 1983 and

furthermore with approval on Halal from JAKIM. Malaysia government initiative is promoting healthier food to the public and educating them as well.
Technological Trends include the awareness of environment like using plastic pallet.

Industry Outlook
Type of Industry, our community recognized ESWY International Marketing is a

distributor of US frozen products and furthermore McCains as an established brand where this will be additional credit to be the popular and demanded frozen product in grocery industry.
Industry Analysis is on the production cost which may be very costly, hence the selling

price as imported frozen products can twice higher than local products; Ayamas or Farmbest. The main ingredients all commodities that are produced in large quantities in the US that may impact the production cost and selling price. Hence, a careful strategic planning is needed. Competitor Analysis Key competitor will be the local frozen products as they are obviously being monitor by the JAKIM to ensure the Halal ingredients being used.
Marketing Practices focus on the similarity of McCain and local products where the price

may be higher than the local price. The local products are able to have promotion or slash

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prices whenever needed but as McCain products may need to rely on the taste, quality and strong brand for getting loyal customers. Marketing Position need to compete that may be able to provide frozen food for every meal category and also the price, cheap cheap cheap. Again consumers will see local products are inexpensive and affordable for low to medium income. Here is where need to attract more medium to higher income and more orders for restaurants in the hotels or with western concept. Market Share is to able in achieving 10% of this total share of category and need to consider other competitors and potential cannibalization.
Opportunity, frozen market is quite saturated but due to diversity of consumers who shop

this category where there is always something new to consider. As example McCain may produce frozen products that suits the taste of Malaysia with more spicy in the future.
Target Market Profile offer products that kids and adults enjoys and parents feel good in

serving to their children, families and friends with variety of kind of potatoes; purely potatoes, family favorites, forever fries and seasoned perfection. Our frozen products able to serve customer faster serving, great tasting and healthy with ingredients having less salt, oil and furthermore using sunflower oil. This is traffic light label and encourages people to Eat Well, Move More, and Live Longer. Demographic show that between age 15-65, the higher population where men vs. women is at balance no of 9.4ml each as the marketing aiming ob both genders and focus to family.

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 Potential Customers consists wide range of families and individuals that shop for fixed

budget in search of quality products at a low cost but some willing to pay for imported brand due the great taste.
Purchasing Decision where consumers would make their buying decisions based on

need, price, sales or promotions, and brand loyalty. Some customers might make the decision to buy the product based on past experiences with other products. This important to remain competitive with our pricing and quality in order to compete in our target market.
Differing Product Attribute Importance; McCains products need to have high attributes

of quality, cost, portion size, and convenience to gain market share. Even the price is higher than local products but must be competitive plus affordable compared to other imported products and at a good quality to create value for the consumer. Portion size has to be adequate relative to cost, packaging and cooking process must maintain a certain level of convenience and ease for consumers and compete with similar existing products.
External Influences affecting customers buying decision will be promotions, sales,

economic conditions, and product displays. Promotions at the stores will be the most contribution for customer to choose the products compare to competitors. Economic situation will also influence buying decisions, as customers will be more or less likely to buy the product as their budgets decrease and increase. Larger product will cause them to buy higher price with good quality and this will be gain situation for us and used mainly to feed family instead of snacking for the kids. Finally, the way our products being displayed in special section of the store may attracted more customers.
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 Challenges Ahead is on the Halal issue from ingredients to the manufacturing and

delivery of the final product all the way to customer shelves. This includes the separation of halal ingredients or finished products from non-halal products throughout the entire chain. Similar measures need to be adopted in other areas of the logistics process, when shipping chilled or frozen halal in enclosed shipping containers and do not mixed with non-halal products. Hence, it necessary to create a collaborative network, multiple partners in different regions to work together and ensure the product is manufactured to the highest quality standards and not mixed with any non-halal ingredients. Preparing the frozen products in the healthiest way possible where food technology and research is able to keep McCain producing healthy products balance with the changing environment. Solution found by using saturated salt and sunflower oil with vitamin c which also as most important staple food in the world after rice.

Decision Criteria and Alternative Solution Marketing Plan SWOT Analysis Strength
McCains product is strong brand and well known which available in thousands of

restaurants and supermarket freezers in more than 125 countries.

Designed to produce French fries and potato specialties primarily for food service and

quick service restaurant customers in the US and international markets. Strongly focus on quality of its product by using local products in their own farm.
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 McCain is the world's largest processor of French fries or the market leader, accounting

for one-third of the world's French fries production.

The positive family togetherness where this product allows for many find the idea of

everyone sitting down for a family dinner to be desirable. Short amount of preparation and suitable for working parents with no time of preparing home meal and let alone energy to bake it.
Its attraction for the young family around age 25 to 49 and convenience for family with

tight schedule. Kids find it attractive as it can be served with more desirable warm. Brand equity is the main component to the success of frozen products where make customers comfortable to buy and to be loyal customers. Weakness
Limited organic food in the market where McCain should start to produce frozen

product using organic resources.

Consumer awareness on health and junk food and preferable more on organic food.

McCain has low exposure as organic brand company where organic sector is becoming more popular in the market. Top market share leads to top marketing spending with strong brand creates the urgency of growth and having product out without profit or breakeven is loss. Multiple brand as competitors from other imported; Kraft Food and ConAgra Food and local products; Ayamas and Farmbest. Opportunities

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 Rising Trend for Ready to Eat as a key drive for McCains sales growth with more

working women, wife and mother, smaller size family and more disposable income with less time at home. Private label from US has witness a strong growth in sales local and international market.
Opportunities for variations such as more frozen meals other than the classic fun fries.

Healthy food is becoming demanding and popular where the idea of creating organic food under the brand will be a large advantage. Keeping products and quality at low price compared to other imported frozen products is something desirable. Online shopping is popular and on rise where we may making these products available via internet could be significant in Malaysia market. Threat Pricing where is higher than local products. Competition from imported products with lower price but higher quality. Recession in our country may lead to consumer to buy lower product entering the market.
Imported products relying on resources in the countrys producer if the commodities

increase will impact the selling price as well. Basic Concern ESWY International Marketing Pro is also supplying other frozen products brand from Australia and US where cannibalization of McCains product is the concern. This product
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basically will be in the range of higher than brand from Australia but lower than other brand from US. Although there is a risk when entering the market but there is still opportunity for frozen product and there is always consumer who prefers McCain products due to the taste and quality.

Recommend Solutions, Implementation and Justification Marketing Strategy Objective To be the leader in market share and introducing the products especially Family Favorite will be effective defensive strategy and in long term to continue our market dominance and further push out competition. This will increase sales at least by 10% in the first year this product in the market. We are forecasting positive respond from consumers and also seeing market share of 10% and to achieve this target we need to steal the heart of customers from local products and other imported products. Once the customers switch, we need to ensure in maintaining 80% of the customer satisfying rate for the first time buyer. Marketing Mix McCains is a great product and using the brand message; Its All Good not just the food good but also refers to the bonding with customers and suppliers. Believe in environment, community and people, with best quality of their potatoes which located at growing area which reduce food mile. As the first major manufacturer in UK to use alternative energy to help power a large factory which gives back to the community by committing resources to both local and national projects.

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McCain strives to be a good company, simple food, increasing sustainable way and meeting the business objective. To achieve this, the business needs to have balances of the four elements (the four Ps) in the marketing mix. A product or service will have its own different mix of the four Ps. The right mix will achieve marketing target and able to satisfy the customer and receiving a high percentage of return customer:
Product which has the look and taste good and be made from wholesome ingredients.

McCain able to serve large enough to feed family up to six so that they can enjoyed the taste of kids love and mom and dad grew up on. McCain has also been responsive to market needs for healthier options and encourages people to Eat Well, Move More, and Live Longer. Its All Good message not only does McCain food taste good, but it fits in with current thinking on healthy diets by using sunflower oil in the preparation of its chips understands customers prefer healthy food without compromising on taste and wholesome ingredients in its products.

The Boston Matrix identifies the four types in a companys product portfolio;

Stars; high market share and grow quickly; i.e.: play station

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Question Mark; low market share in a growing market which product cost are higher than return; new car model.

Cash Cow; high market share in established market; i.e.; star buck coffee in the coffee market

Dogs; low market share in low growth market where company may eliminate the product or reinvest in marketing to improve sales; i.e.: DVD recorder

Price that has to be attractive to ensure enough sales targets to generate a maximum

profit and return of investment. It the important component in marketing mixes and we believe frozen food is elastic. Buyers need to believe that they are getting the value for every dollar they pay. We also need to be mindful with local and imported competitors according to price per unit believe this price points differences largely on regional average in relation to cost of living. The production cost has to be lower than the selling price whatever pricing to select in reality we have to be in the middle compare to other competitors. Attracting the customer by putting 30% extra free in packaging as value money product.
Place where the place and position of the product in the market is important to compete

for market share as we pushing for strategy. We need to know where our product is located and where people willing to buy it. Considering that our product will likely suitable from medium to low income families, our products needs to be available where they shop. Currently we choose to sell it hypermarkets, restaurants and selected convenience stores and may need for distribution to occur in locally owned grocery

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stores, given they have a frozen food section, throughout the country to maximize our earning potential.
Promotion fits the companys objectives to promote product as excellent like McCain.

A further demonstration on Its All Good and committed in not to advertise to kids below 12 years. We plan to incorporate personal selling, sales promotion and advertising in our promotion mix and believe people will buy product they love and want to buy for their families. To let people have sample or try to taste it at grocery using personal selling as push up strategy and attract people from canned section to frozen products and promotion buy 2 and discount for 3rd, discount vouchers from newspaper or magazines where we receive free publicity from it or below the line; door to door leaflets, email, This will attract more customers and sales will continue to grow with a natural product life cycle and launching of this product thru above the line; small TV advertising campaign and these ads might run for a week during morning and evening hours. Involved with sponsorship family program and Sport programs is showing family oriented and concern on health. Performance Plan What will be done?
Introduce product at a competitive price point, giving samples, promote and advertise

campaign, offer deals, coupons and incentives for customers. When?

Distribute to nationwide in all types, sizes and advertise on air once product available

and coupon distribution in newspapers, ads and in store. By whom?

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 Distribution by employees and joint effort with marketing department and local media

companies with demo and in store coupons by our own demonstration teams. At what cost?
Cost for distribution and advertising activities paid by our company together with cost

of store coupons, rebates, manufacturing costs must be factored in, as factory lines that currently produce some of our other frozen products will need to be working overtime to produce yet another frozen line. Controls Monitor the sales, profit, customer reaction, and customer perception of our product after it has been introduced and compare it our target. Analyzing it to know how well our product is selling and how the customer feels about buying our product. Finally, to evaluate if sales and perception meet our goals for that time period and review statistics for how many coupons are redeemed after a customer receives it or how many customers purchase a full product after they have received a sample. Product and marketing progress will be reviewed very frequently as we will try to keep a close eye on our new product line. If our performance is off target we will reevaluate the way we are marketing our product and advertising our product. We will also conduct surveys or other means as a way to gather information about the strengths and weaknesses of our product. We also hope to be able to draw some data about product success from coupon redemption. We will then uses this information improves our performance in all areas to better achieve our targets and goals. References;

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CAG IRI, 2010. Symphony IRI. Total U.S. Food, Drug, Mass Merchandising, excluding Wal-Mart. Current 52 weeks ending October 24, 2010 United States Food and Drug Administration. (2009, November 5). FDA Food Code 2009: Chapter 3- Food How McCain responds to changes in the external environment, Edition12, The Times 100 Sustainability through investment, Edition 14, The Times 100 The marketing mix in the food industry, Edition15, The Times 100 http://pdf.marketpublishers.com/560/mccain_foods_limited_inc_strategic_swot_analysis_rev iew.pdf http://www.supplychainasia.org/news-articles/articles/252-supply-chain-management/2503halalsc.html http://www.scribd.com/doc/19734466/Business-Environment-and-McCain-Foods-Company http://www.mccain.com/Pages/default.aspx Marketing Plan: Chef Boyardee Frozen Family Serve entre. December 2010 http://bx.businessweek.com/frozen-food-industry/news/ http://www.terribleanalogies.com/2009/02/ http://www.fda.gov/Food/FoodSafety/RetailFoodProtection/FoodCode/FoodCode2009/ucm1 86451..h http://answers.yahoo.com/question/index?qid=20090731233725AAdZmA9 http://www.conagrafoods.com/consumer/brands/getBrand.do?page=chef_boyardee

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