Marketing Audit Report of McCain Frozen Pizza - Case Study Example

Marketing Audit Report of McCain Frozen Pizza Name: ID Tutor: Date: Marketing Audit Report of McCain Frozen Pizza 1.0 Introduction McCain Frozen Pizza is an international leader in the production of frozen food. The company is an employer of more than 20, 000 people and operates about 50 production facilities in the world (Yung 2012, p. 2). With its headquarters in Toronto Canada, McCain Frozen Pizza is a leading manufacturer of frozen potato and specializes in the production of other food products such as juices, over meals and pizzas among other food products. The products of this company can be found in numerous restaurants and supermarkets on the international platform including Australia (Yung 2012, p. 2). In Australia, the company was established in 1968 and it was known for the selling of French fries. Initially the company imported French fries but overtime it was about to acquire its own facility in Daylesford and it began the processing of locally available potatoes. At the starting period, the French fries business was at its infancy stage but the decision to make a brand new production facility enabled the company to double its capacity in Daylesford plant (Yung 2012, p. 3). Through acquisition and development, the company has been able to expand into other areas within Australia such as Victoria, South Australia and Tasmania. McCain currently is a leading supplier of vegetables, pizza and potato- specialty products for both the food service and retail markets (Yung 2012, p. 3). The main objective of this report is to research and examine the marketing mix of McCain Pizza sold in the Australian market, and present a detailed evaluation of its effectiveness as a response to the Australian target market’s needs and wants. 2.0 The Australian target market The target market is a specific group of consumers to which a company aims its products and services. These groups could be targeted according to their ages, gender, economic status, religious orientation and ethnicity among other factors (Yung 2012, p. 6). The process of identifying the target customers often involves a process of creating profiles of the typical customers who are more probable to purchase the intended product or services. The products of the company can define the target market for McCain. Pizza in Australia is often regarded as a family product (Smith 2012, p. 24). This means that this product can target both the middle and high-income families especially those who receive average salaries or those who are highly paid individual employees or businesspersons. It is therefore possible to say that McCain Frozen Pizza targets both the generation X and Y since they are more active and participatory in spending money ion luxurious food substances such as pizza (Smith 2012, p. 25). In terms of market segmentation, the geographic segmentation of McCain Pizza in Australia is nationwide. It serves individuals from different cities within Australia who access the products in different restaurants and supermarkets. In terms of the demographics, McCain targets a relatively younger generation especially those high-income earners and business class families with disposable income (Smith 2012, p. 26). The psychographic segmentation is inclusive of individuals with positive attitudes about food and they want delicious food and to have memorable moments with friends. Behavioral aspect of market segmentation focuses on individuals who love to spend money on food (Smith 2012, p. 26). The target market is also inclusive of a special segment in Australia, the vegetarians. This is largely because of the availability of meat free pizzas so those individuals who do not take meat products can also enjoy the quality of pizzas that are produced by the company (Smith 2012, p. 27). Other than the highly paid individuals that comprise generation X, the company also targets college and university students who prefer fast foods such as pizza compared to other food products. During most of their parties or any other social activities students often prefer frozen pizza among other tasty food substances (Smith 2012, p. 29). Other than the ages and economic classes of its target customers, McCain frozen Pizza also targets its customers based on the type of services that they prefer. There are groups of customers who prefer dining in the restaurants and those who purchase and take away the food to their homes or different destinations (Smith 2012, p. 30). Those who dine-in can always access these pizzas from the restaurants and have a good time with friends and families while those who prefer take away can access frozen pizzas through various outlets. Other than the frozen pizza, McCain manufactures other frozen food products and varieties of pizzas to ensure that it captures a wide range of the target market (Smith 2012, p. 31). Segment 1 Convenience driven Segment 2 Price Driven Segment 3 Quality Driven % of market 26% 34% 40% Important benefit Statements Available in Supermarkets and restaurants Information available online and on different media channels Products available at affordable prices in different sizes Provision of quality products Behavior High internet access High likelihood of accessing products on supermarkets and restaurants Customers are easily convinced into purchasing the products Demographic Skew Younger Low income earners Older High income earners Table 1.0 Market Segmentation 2.1 Basis of selecting the target market McCain uses numerous ways to select the target market for its products. The first groups of customers are those with high income and food lovers. These individuals have the financial resources and are ready to spend on the best food in the environment (Pride & Ferrell 2004, p. 67). The second set of market is those who desire vegetarian pizza to ensure that they get to access the quality of products offered by McCain. The company also targets the international market especially tourists who visit Australia and would like take away food to different destinations within Australia (Smith 2012, p. 31). The good reputation that the company enjoys in Australia allows its products to be preferred by different customers from other countries. Generation X is aware of new technologies and developments in every sector. This generation desires to have food that satisfies their hunger and leaves them with memorable moments. This generation is so active and it desire to have quick meals on the tables (Smith 2012, p. 32). 2.2 Customer profiling McCain customers are offered different food substances according to their needs. The customer-profiling table based on needs is as given below to show the analysis of McCain Frozen Pizza Characteristics Products Demographic Geographical Economic Social Meat Pizza 10-40 years, male and females Major cities: Victoria, Tasmania, South Australia Students or young professionals Middle and upper class Vegetable Pizza 10-40 years, male and females Major cities: Victoria, Tasmania, South Australia Students or young professionals Middle and upper class Fruit Pizza 10-40 years, male and females Major cities: Victoria, Tasmania, South Australia Students or young professionals Middle and upper class Table 2.0 3.0 The Marketing Mix 3.1 The Product McCain Limited offers numerous products and services aimed at satisfying customer needs. This is inclusive of the frozen pizza, which also aims at suiting customer needs at a different level. The tasty nature of the frozen pizza arises from the ingredients, which are inclusive of whole meal flour, less salt with organic and healthy ingredients (Smith 2012, p. 24). The frozen pizza begins with a thin crust, which is a product of the finest ingredients. Each crust is then topped off with a combination freshest organic vegetables fruits or meat depending on the type of frozen pizza that a customer desires. The resulting product is just legendary. In terms of packaging, McCain leverages the back panel as a way of ensuring greater transparency with customers especially with the provision of a detailed message, which reinforces the simple ingredients message and helps in ensuring that the company and the customers enjoy a trustworthy relationship (Bowman & Gatignon 2010, p. 35). The approach of its packaging is to ensure that bright and attractive pictures accompany it, which acts as a means through which the company sways potential customers into purchasing the product (Richter 2012, p. 85). In addition, the approach used by the company in creating a design that conveys a simple, wholesome and natural message is aimed at assuring the customer of McCain’s promise that the only ingredients that should be in food are food (Smith 2012, p. 26). The packaging of the product is also a reflection of the health standards the company uses to ensure that the products are clean and safe in terms of the requirements by law (Bowman & Gatignon 2010, p. 38). The packaging of McCain frozen pizza is also important since it acts as a distinguishing feature that consumers use to distinguish the product from those of the competitors and protects the product during transportation (Smith 2012, p. 27). The boxes that are used in the packaging process are safe for the environment since they are biodegradable and they can be recycled. This means that they cannot cause any harm in terms of polluting the environment (Kapferer 2012, p. 60). Frozen pizza by McCain is of premium quality. This product possesses the similar quality and its tastes similar to that of Italian wood fired pizza that is often served in many Italian restaurants. Although the company in context is in Australia, the products it produces attract both local and international customers considering the fact that the company enjoys a good reputation in the country resulting from its quality of products (Smith 2012, p. 29). In addition, the product is a shopping products considering that it is frozen to last longer on the shelves compared to other unfrozen products. Individuals can therefore access it in food restaurants and supermarkets (Pride & Ferrell 2004, p. 90). These products often last longer and the customer can purchase it as one of his or her food products while travelling. In relation to Product Life Cycle (PLC), the product is at the maturity stage. This is because McCain product is already established in the Australian market and the aim of the company is to maintain the market share that is already built. At this stage, the company can also consider different modifications and improvement to the process of production to gain more advantage that is competitive (Richter 2012, p. 36). Chart 1.0 Chart 2.0 3.2 Promotion The main aim of undertaking any promotional activity is to inform the marketplace about the product. This is inclusive of its benefits, its price and the places where the product or service can be accessed. McCain also performs promotional activities to convince customers into trying the frozen pizza while at the same time encouraging those who are already using the products to buy more. McCain Frozen Pizza is an established brand throughout Australia (Kapferer 2012, p. 63). The company must however engage in the development of numerous promotional strategies as a way of ensuring that it increases its market share through brand awareness and ensure that it builds a stronger reputation compared to its competitors (Bowman & Gatignon 2010, p. 42). One of the promotional strategies that the company uses is public relations. This is the use of publicity and other non- paid advertisement platforms to establish a positive image within the target market (Smith 2012, p. 24). Such a strategy is by word of mouth between customers; especially those who have already used the product are expected to tell potential customers on the availability of the product, places of access and the benefits of using the product (Pride2011, p. 69). In addition, customer relationships developed between the management and the clients also serves as a promotional strategy for the company. The information available of the packaging material can also be used in the promotion of the business (Smith 2012, p. 28). The company also uses other platforms such as the local newspapers such as The Star to market its products. It is important to note that the newspaper is often used in occasions where the company desires to inform the public about any new products or improvements in terms of its pricing, the place and the introduction of a new product in the market. The company also engages in television adverts to reach out to a wider population across different ages (Lamb et al 2012, p. 69). These include programs such as Thee Big Brother and Survivor Series. In terms of online communication, the business communicates through its official websites, its Facebook page and its Twitter account (Smith 2012, p. 24). Through this platform, it is able to access a larger group of current and potential customers within the country and on the global platform. In its official website, customers are able to know more about the types of products that the business offers, the prices of these products and different areas in which the products can be accesses. Social network sites such as Facebook and Twitter are often used to assist in marketing whenever there are offers for the customers (Lamb 2012, p. 68). In relation to the PCL, the product is at its maturity stage and these promotional strategies are designed to ensure that it maintains or expands its market share. Furthermore, the main aim of any business with mature products is to introduce varieties of the products in terms of the flavors as a way of providing alternatives to customers (Lamb et al 2012, p. 78). 3.3 Place (Distribution) This is inclusive of the distribution channels used by McCain to position its products in the marketplace. Being a company that operates as a business- to- business organization, McCain does not sell directly to its customers. Rather, it places its products with different retailers and wholesalers in the market place. This includes supermarkets and restaurants (Smith 2012, p. 26). Upon the engagement of the wholesalers and retailers, the company then influences the techniques through which the products reach the customers at the point of sale (Kapferer 2008, p. 89). One way through which this company reaches out to the customers is by securing strategic positions for its products in the stores. These include paving for end of shelf position for its products increase the probability of the customers seeing and buying them (Bowman & Gatignon 2010, p. 55). Chart 3.0 The company does not use its vehicles in the distribution of goods to the customers. It outsources for transport by allowing a different company to carry out the deliveries. The delivery of the products is done directly to retailers at their central depots for distribution to their stores (Smith 2012, p. 29). In some situations, the company engages wholesalers directly who then sell these products to other businesses such as restaurants. In the process of transporting its products, the company takes in to consideration the need for sustainability by reducing its impact on the environment (Pride2011, p. 45). For instance: The company uses the local farmers to supply raw materials as a way of ensuring that it reduces on food miles. The company also advices for the use of double-decker trucks during the distribution process as a way of saving on the number of lorry journeys in a year. The Lorries that are used in the distribution process have in-built solar panels, which help in the provision of additional power, for instance such power can be used in internal lifting mechanism. The following are a list of some of the retailers that McCain Frozen Pizza uses in the distribution of its products Centre State Food Service- this is a retail business that distributes food in South Australia Mrs Mac Patties Pies Simplot Australia SPC Ardmona The listed food suppliers and retailers help the company in the distribution of its products this is largely because all of these companies are Australian food manufacturers and suppliers and they operate according to the scientific standard that define the Australian food industries (Smith 2012, p. 24). The use of existing and established wholesale and retail businesses in the supply of their products and services plays an essential role in determining the level through which customers can easily access the products (Kapferer 2001, p. 60). In addition, these supply chains enjoy the confidence of the customers and the fact that they supply the products by McCain is an added advantage considering that the company enjoys a good reputation in Australia (Kapferer 2012, p. 67). The need for McCain to expand on its market share is an essential aspect in explaining why the company associates with popular supply chains for the distribution of its products. The company does not engage in on-line transactions with consumers instead it uses the online platform to communicate with its consumers on the available developments in terms of its products. In addition, it also uses the online platform to communicate about the outlets through which consumers can access their products (Hellriegel, Jackson & Slocum 2007, p.69). Other outlets such as the supermarkets and restaurants sell directly to consumers on online basis. Through this platform, the consumers can order goods from the outlets and the products are delivered to their doorsteps (Kapferer 2012, p. 77). 3.4 Price Pricing is determined based on numerous factors such as the cost of production, consumer expectations, the pricing of competitors in conjunction with a pricing strategy to ensure that the products are competitive in the marketplace (Codita 2011, p. 46). In the development of the marketing strategy, McCain sets its pricing in relation to its business objectives, which include maximizing profits, achievement of a return on investment, achieving the target sale figures, matching the level of competition and achieving the target market share (Smith 2012, p. 30). The main pricing strategy of McCain Frozen Pizza is the cost based pricing strategy. This is often done through the implementation of cost-plus pricing which is inclusive of a standard mark, which is reasonable to the cost of the product. This strategy enables the business to continue with its operations with great consideration to its cost and this enables the business to minimize on the chances of negative cash flow (Bowman & Gatignon 2010, p. 28). The business also sets relatively affordable prices in relation to hose of the company’s competitors and this has enabled the company to penetrate the market. Such a pricing strategy is also influential since it attracts a substantial number of buyers, which makes McCain Frozen Pizza a likeable food producer compared to its competitors (Chevalier-Roignant & Trigeorgis 2011, p. 100). The company also employs pricing adjustment strategies, which involves the use of psychological pricing techniques, which involves setting odd prices. When the company, through the retail businesses and distributors, set the prices of pizza at AU$6.99 instead of AU$7.00, the customer may consider this form of pricing as cheaper compared to a competitors which price their products at AU$7.00 (Smith 2012, p. 24). The pricing tactics that McCain uses to attract more customers and maximize on its profits are inclusive of the odd value pricing and skimming (Porter 1985, p. 69). The skimming technique for instance has enabled the company to sell at its own unique price due to the uniqueness it offers in terms of the varieties, the qualities and the brand name (Codita 2011, p. 67). This is in line with the other 3Ps of market mixing which allows the company to explore different markets within Australia. The cost based pricing strategy is also in line with the PCL considering that the company is an established brand in Australia that has earned the trust of most individuals within the country (Kapferer 2008, p. 28). Through this strategy, the business can sell its products that are in the maturity stage to different customers considering that it is already established and the customers only need to know different outlets of the company’s products and access the quality of the brand (Hellriegel, Jackson & Slocum 2007, p. 114). 4.0 Competitive advantage Competitive advantage includes a set of unique attributes if a company and its products that the target market perceives as significant and superior to all the other competitors. Such features in relation to McCain Frozen Pizza include the production of products that are of high quality (Parker 2012, p. 56). McCain is a popular brand in Australia largely because of the quality in terms of the freshness and the health nature of the products that the company supplies. The company also has a high competitive advantage in terms of the methods it uses in its promotional strategies (Chevalier-Roignant & Trigeorgis 2011, p. 123). The phrase Its all Good serves as the marketing message of the company. It is easier to master and it always rings on the mind of the customers especially when used in advertisements (Smith 2012, p. 26). This marketing phrase is a vital part of the marketing mix since it informs the consumers of the benefits of the product and influences the positioning of the product in the market place (Codita 2011, p. 77). This provides sufficient reason why McCain has numerous retail and wholesale outlets that help in the distribution of its products. Through the marketing message the company has been able to earn good reputation within Australia and consumers can therefore access this products easily considering that they already have an opinion about the product that they are about to buy (Codita 2011, p. 89). Despite the business selling its products at a relatively higher price, the fact that it is an established brand helps the organization in skimming within the market since it is an already established brand (Kapferer 2001, p. 35). 5.0 Assessment of the success of the marketing mix as a solution to customer needs The customers in Australia desire products that are made according to the existing standard. In addition, these products must be able to satisfy their intended needs. McCain has been successful in the development of a competitively differentiated marketing mix (Smith 2012, p. 26). In terms of its products, the company has been able to ensure that its frozen pizzas possess the right features as per the customer needs (Kapferer 2008, p. 72). This means that the product looks good in terms of its packaging (Chevalier-Roignant & Trigeorgis 2011, p. 99). It is important to note that the company also produces products that meet the needs of those who consume meat, the vegetarians and those who prefer pizza made from fruits. The company is an established brand within Australia and this means that the existing image of the company allows it to sell its products at a relatively higher prices is still able to attract the highest h number of customers (Hellriegel, Jackson & Slocum 2007, p.72). Through different retail and wholesale outlets, the company has ensured that its products are available in different places at the right time. This is largely because the goods arrive when and where they are wanted and this is one way of maintaining consistency in production hence satisfying customer needs (Parker 2012, p. 77). The company has gained reputation and popularity in Australia due to its ability to conduct effective promotional activities that provide the target markets with the right information concerning the availability of products. This has also enabled the company to spread cost over a larger output (Parker 2012, p. 82). 6.0 Conclusion McCain Frozen Pizza is one of the leading companies in fast food production in Australia. This is largely based on the marketing mix that has been essential in facilitation the development of a good reputation within the country and on the international platform. Marketing mix has also enabled the company to develop strategies that are essential in ensuring that the company develops strategies that are fundamental in the promotion of the product and maximizing on the profit margins. The company has been able to manufacture high quality products that meet the needs of its customers. The realization that there is a high demand for this product has enabled the company to form partnerships with different wholesalers and retailers in Australia to ensure that these products are available to the public at the right time and in the right quantity. When studied in relation to PCL, McCain’s frozen pizza is at the maturity stage meaning the company is able to exploit alternative pricing strategies such as odd pricing and skimming to expand its market share. The company also spends financial resources in promotional activities especially thorough magazines, social networks and word of mouth to give information about its products. These strategies are essential in defining the company’s competitive advantage. 7.0 References Bowman, D., & Gatignon, H. 2010, Market response and marketing mix models: Trends and research opportunities. Boston: now. Chevalier-Roignant, B., & Trigeorgis, L. 2011). Competitive strategy: Options and games. Cambridge, Mass: MIT Press. Codita, R. 2011, Contingency factors of marketing-mix standardization: German consumer goods companies in Central and Eastern Europe. Wiesbaden: Gabler. Hellriegel, D., Jackson, S., Slocum, J., 2007, Managing: A Competency- Based Approach. Cengage Learning Kapferer, J.-N. 2012, The new strategic brand management: Advanced insights and strategic thinking. London: Kogan Page. Kapferer, J.-N. 2008, The new strategic brand management: Creating and sustaining brand equity long term. London: Kogan Page. Kapferer, J.-N. 2001, (Re)inventing the brand: Can top brands survive the new market realities?. London [u.a.: Kogan Page. Lamb, C. W., Hair, J. F., & McDaniel, C. D. 2012, Essentials of marketing. Mason, Ohio: South-Western Cengage Learning. Lamb, C. W. 2012, Marketing. Toronto: Nelson Education. Parker, M. 2012, Culture connection: How developing a winning culture will give your organization a competitive advantage. New York: McGraw-Hill. Pride, W. M. 2011. Marketing principles. South Melbourne, Vic: Cengage Learning. Pride, W & Ferrell, C, 2004, Marketing. Cengage Learning Porter, M. E. 1985, Competitive advantage: Creating and sustaining superior performance. New York: Free Press. Richter, T. 2012, International marketing mix management: Theoretical framework, contingency factors and empirical findings from world-markets. Berlin: Logos. Smith, A. F. 2012, Fast food and junk food: An encyclopedia of what we love to eat. Santa Barbara, Calif: Greenwood. Yung, S. 2012, Australian Packaging Covenant Action Plan March 2011- March 2014. McCain Foods (Austy) Pty Ltd. Appendix Table 1.0 Market segmentation Table 2.0 variables considered in profiling target customers in Australia Chart 1.0 Product life cycle Chart 2.0 Target customers intended positioning in relation to marketing mix Chart 3.0 Supply chain of McCain products A detailed record of field work and research Read More