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Answer to the question 1

McCain Oven Chips is well established as well as hugely successful and hence less investment is
required to handle the business. At one time it used to be a bright STAR but nonetheless its
growth has slowed down to a fairly steady level but with generating level is still high.
STARS
Frozen vegetables, ready
meals and desserts.
Question Marks
McCain Sweet otato
McCain !edges
McCain "ome Roasts
McCain Micro izza
Cas# Cows
McCain $ven C#i%s
&ogs
'one
Market
Growth
Rate
Hig
h
Low
Market
Share
!ow McCain "oods is the world#s leading manufacturer of fro$en potato products hence the
once question mar% fro$en potato products became stars who growth rate &mar%et attractiveness
is high' and also it#s rapidly increasing mar%et share in this era of instant gratification.
As for the rest of the products they do have mar%et attractiveness and potential to become stars
if financing is done in a reasonable fashion. (owever they have low mar%et share as more ans
more people are getting to %now about this products and ma%e personal decisions.
Answers to the question 2.
roduct) McCain#s *+t#s All ,ood## message permeates throughout the great tasting products
and their philosophy of a healthy diet by using wholesome ingredients. "urthermore McCain
manages its own seed development and using sun flower oil in all their products. All nutritional
information is clearly stated on the products.
rice) McCain provides e-tra fill pac%s promotional prices to provide incentives to customers to
buy more of their product.
lace) McCain is a business to business organi$ation as it doesn#t sell directly to customers.
+nstead of this they +nstead it places its products with wholesalers and retailers such as ma.or
supermar%et chains. McCain may then be able to influence how its products then reach the
consumer at the point/of/sale &The branch or outlet where consumers can purchase goods or
services'.
romotion) McCain "oods# ethical stance on promotion. McCain ma%es commitment not to
advertise to children under 01 years old. +t ensures that the retail labeling on its products carries
clear information on levels of fat saturated fat salt and sugar to help shoppers choose healthier
options.
S
W
T
Strengths
McCain has strong brand loyalty
because of it high quality tasty but
healthy products. That cater to the
changing trends of different target
mar%ets and lifestyles. Moreover
they have large geographical
advantage as well.
Opportunities
McCain has the opportunity turn
its question mar% product lines
that have high growth rate but
lower mar%et shares into starts by
astutely investing money
Threats
Threats from competitors offering
similar or even lower prices for the same
quality.
!ewer technology of competitiors
Cultural differences in foreign
countries.
2rice infaltion3deflation
O
Weaknesses
As McCain focuses on CSR activies
li%e cleaner environemnt atheletic
events and hgh quality products it
must watch out for increasing costs of
prodction and strive to reach the
optimum level of investment.
Answer to the question 3.
Ansoffs Product Market Expansion Grid
Current roducts
'ew roducts
Current
Markets
1. Market Penetration
McCain Oven ships &former star'
may become a star once again from a
cash cow by investing savings from
cash generation into future pro.ects
by using 2R &public relationships'
events that promote the brand image
of tasty food and healthy lifestyle.
This will eventually lean to McCain
spreading its S45S in further
geographical distances which will
increase ease of accessibility for
people in remote areas.
2. Product Deveop!ent
McCain has also been highly
responsive to mar%et needs for
healthier options and its
products support the
,overnment#s Change6life
campaign. This means that
products will be modified or
introduced according to
changing lifestyle trends in the
target mar%et. "or e-ample they
have own potato seed
development and they use
sunflower seed oil.
'ew
Markets
3. Market Deveop!ent
4y identifying and targeting new
demographic or geographic mar%ets
and increasing sales of current
products to those mar%et segments
without changing basic products
McCain has e-panded its customer
base from 57 to several
international countries by ensuring
cultural understanding and
sensitivity.
". Diversification
McCain is the first ma.or 57
food manufacturer to use
alternative energy to help power
a large factory. Moreover it
also gives bac% to the
community by committing
resources to both local and
national pro.ects. McCain has a
five/year agreement with 57
Athletics to promote trac% and
field sport in the 57.