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.

1
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 & The main factors affecting McCain from a political and legal
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

2
 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
responsibility as this can affect their brand equity and consumer

3
loyalty (Kotler, P., Brown, L., Adam, S., Burton, S., & Armstrong,
G., 2006).

4
1.2. Industry Analysis and Critical Success Factors

Threat of In Australia’s potato processing and production industry there are

new entrants 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 McCain’s principle competitor, Bird’s Eye, targets a similar consumer
between market to McCain (Simplot Australia, 2009). Their products are
competitors 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 Hills, et. al. (2007) states that firms operate based on consumer
power of demands and market resources, such as labor, financial abilities and
buyers 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 Substitutes for a product influence the price. The elasticity of price
substitute will depending on how close the substitute product is to the product in
products question (kotler et al, 2006). McCain’s Purely Potatoes’ potential
consumers many substitutes available to them, as outlined in the

5
sections above. The main forms of substitutes are reconstituted
potatoes, fresh potatoes and other frozen potato products.

6
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.

7
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).

8
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.

9
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.

10
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)

11
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.

McCain is the market leader in the frozen food sector,

The performance dominating 27.3% of the market (Sallaman, 2010). This
and perception of indicates its popularity with consumers and the loyalty they
the McCain’s posses due to the strength of the brand overall. This optimal
brand. performance aids the consumers’ perception of the brand
which equates to strong brand equity.

The product design is practical and convenient. The Purely

The performance
McCain designed their Purely Potatoes packaging to be
and perception of
aesthetically appealing, contain nutritional information and
the Purely Potatoes
whet the appetites of their consumers (McCain, 2009).
product
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
with McCain’s traditional form of advertising, but it delivered

12
 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 McCain’s current positioning is distorted as there is no
the current continuity apparent in the two commercials. The first
segment of the commercial which depicts the stereotypical farm, herding and
target market. 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.

13
1.6 Strategies

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

Current for their Purely Potatoes product. One was entertaining and concurrent
promotional with McCain’s traditional and popular television advertisements, but
activities: TV devoid of essential product information. Whilst the other provided the
advertising 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.

McCain distributes its products through supermarket such as Coles,

Venues that Woolworth and IGA. However, there is a problem with the in store display
sell Purely of the product. Consumers find it difficult to find Purely Potato because it
Potatoes. 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.

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
Packaging development of labeling changes (Anonymous, 2010).

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

14
 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).

Value of the Also, a lot of consumers still prefer to buy the unpeeled, unwashed
products potatoes due to economical efficiencies (Appendix B).

15
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).

17
1.7 SWOT ANALYSIS
Strength
 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
Opportunity
 Growing target market; growing
aging population
 Growing social trend in being health
conscious
 opportunities for more successful and
innovative marketing strategies
Weakness
 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
Threat
 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
18
 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.

19
 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 The price of potatoes is highly elastic; so the result of raising the
strategies for price of the Purely Potato product would lead to the loss of sales
Purely Potato 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

20
 McCain, but it will not satisfy the costs and retain a sound level of
profits.

The Purely Purely Potatoes do not have many direct competitors; Bird’s Eye
Potato appear to be the only company that produces a similar product.
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 Consumers generally purchase their potatoes from the supermarket,
of the product 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 We advise McCain to make the  In store promotion
experience overall consumer experience with  Trade shows
Purely Potato more pleasurable in
order to increase product loyalty.
People As stated in the targeting statement,  In store promotion
involved in the Purely Potatoes can be consumed by  Trade shows
process for and sold to a wide variety people,  TV demonstrations
Purely Potato however we advise McCain to focus
 TV advertisements
on senior citizens.

We also advise McCain to involve

more people from the community in

21
 the promotion of the Purely Potato
product in order to increase product
awareness and sales.

Promotional In order to raise Purely Potato’s  In store promotion

strategies for profile within the
Australian  Trade shows
Purely Potato community, McCain must ensure  TV demonstrations
they promote Purely Potatoes
 TV advertisements
nationwide and using a number of
key places and channels in the
process.

22
 4) Implementation/ Tactics/ Action Plan; and
5) Financial Budget

Tactics Who When Cost

In store  Coles,  10 – 2pm • $4000 per week per
promotion Woolworths  For two non- store.
 Employees of consecutive weeks • Consisting of
Coles and (ie one week on, - $1000 product
Woolworths one week off, one usage
week on) - $2000 paid to
 Twice a week per store
store. -$1000 overheads.
 Nationwide: during
August
 During June in
Brisbane
Trade shows:  The Royal  Melb: September, • Royal Show –
Have a chef at Melbourne March Estimated $13,000
a stall cooking Show  Syd: April • Trade Show –
Purely Potatoes  Melbourne  Bris: August Estimated $5,000
and issue Caravan and
spectators with Camping show
show bags  The Sydney
Royal Easter
Show
 The Royal
Exhibition
(Brisbane)
TV  Mornings with End of May – mid • Estimated $25,000
demonstration Kerryanne 9 – June. plus.
11:30am daily
 The circle Once or twice per TV
show.
TV  Everyone in  Seasonal rotation: • Cost of Production
advertisement Australia two week leading of Ad: estimated
up to Christmas, $50,000 to
Winter (end of May $350,000
to the start of (Gaebler.com,
August) 2010).
• Cost of airing on
National
Television:
approximately
$1million to
$2million
(Gaebler.com,
2010).

23
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.

24
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).

27
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.

28
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