Answer

Branding Report: Case of McCain Superfries Crinkle Cut

Background

The product used for this case is the McCain Superfries Crinkle Cut (kindly check the appendix, figure 1 for attachment). The product is classified under French fries and frozen potatoes. It is a brand owned by the McCain Foods Limited.

Part 1

Value Creation through Packaging and Labelling

It is important that a given brand creates value for all its shareholders. Fernqvist et al (p. 1122) argue that the process of creating value is rooted in the labelling and packaging of the products because of the following reasons. First, packaging serves the role of preserving and protecting the products. As a result, it prevents the contents, especially food, from becoming contaminated. In the case of McCain Superfries, packaging plays other roles apart from protecting the content inside. This includes attracting customers. This is the reason why McCain Superfries uses a colorful and attractive packing. Fernqvist et al (p. 1123) note that the practice of attracting people to notice a product is a form of marketing. Thus marketers tend to use bright colors in labelling and sophisticated packages to create a certain perception, or appeal that encourages buyers to purchase a given product.

Another role of packaging and labelling is to communicate and transmit information. The information varies in nature but mostly, it is a form of adherence to government regulations on packaging and labelling. Currently, the Canadian government has set strict regulations and laws on labelling of food products (Armstrong, p. 9). For instance, manufacturers are mandated to report on proper ways to dispose the package after use. In addition, food manufacturers are supposed to include nutritional information of the content held in the package. This includes notifying consumers on whether the food is genetically modified or organic. Such information is mostly contained on the back cover of the packages. Some jurisdictions demand that firms include information on standards used to manufacture the foods such as ISO certification and other regulations on value addition and supply chain management. This mostly covers aspects of transport and supply of the products.

Basically, it can be noted that packaging and labelling creates enormous value for all stakeholders. This is because packaging and labelling enables consumers to differentiate products from the shelves when doing shopping. This enables them to identify themselves with a given brand based on cost advantage or superior value proposition. This creates value for firms with a high brand equity as consumers will mostly identify themselves with such brands (Kozlenkova et al 17). Packaging and labelling creates value for consumers since they enable them to identify products that best suits their needs in terms of content or nutrition. This is important in helping them achieve their dietary needs while also enabling them to make informed choices on what to purchase. Shareholders benefit from packaging and labelling as it protects the goods from going bad and also, directs on how the goods should be handled in order to preserve quality. This helps preserve the products and their intrinsic value, which translates to lower costs, and higher profit margins. Environmental organizations realize value when the labels direct consumers on how to deposit or recycle the packages after use. This is important in preserving the environment. The government realizes value from increased adherence to regulations and informed decision making. Suppliers realize value by supplying and labelling packaging materials.

Part 2:

Creating Brand Equity for McCain Superfries

According to Davcik, (p. 2) brand equity refers to the total value associated with a given brand. Such value is attached to a high level of brand loyalty, commitment, perceived quality, strength of brand partners and associations and awareness of the name of the brand among consumers, among other factors including organizational activities and assets. This includes their supply chain, value chain, trademarks, advertising, patents and intellectual properties. This implies that the manufacturers and marketers of McCain Superfries Crinkle Cut have focused on reinforcing the image of the firm and the products in the minds of the consumers in order to create value above the functional benefits derived from the consumption of its French fries. As a result, the value of the McCain Superfries Crinkle Cut lies in the perceived superiority of the brand name compared to its competitors, namely; ConAgra and Simplot. Evidently, the value of this product lies in the fact that McCain Foods Limited has positioned itself as a superior company associated with quality products. This is in relation to its advertisements initiatives as evident with their intensive investment into both traditional and digital promotional campaigns. Second, the firm owns innovative and creative lines of products among them being the McCain Superfries Crinkle Cut, which equally shares in the superior brand value of the McCain brand as a whole.

            The resource based view theory of brand equity argues that brand equity as a market based asset or an intangible asset (Lin & Lei-Yu, p. 408). Adopting this theory into the analysis of McCain Superfries Crinkle Cut shows that the brand is valued by the customers. This affirms the application of consumer based brand equity which explains that a brand can be perceived as valuable because of the psychological and cognitive effect it has on its consumers. These forms of effects trigger consumers into creating an emotional bond with a given brand which translates into a positive consumer response. A consumer is thus more likely to purchase a McCain Superfries Crinkle Cut French fry more easily than they can purchase a competitor’s product. This form of value translates into lower marketing costs for McCain and its marketers since their brand is deeply embedded into the minds of their customers.

Lin & Lei-Yu, (p. 408) note that brands such as McCain Superfries Crinkle Cut could create value by balancing the demand side effects against supply side effect, where demand side represents brand equity while supply side connotes brand value. For the McCain Superfries, the brand value side equates the brand equity side which leads to an equilibrium point where the superior French fries attract a higher perceived cognitive psychological effect leading to increased demand. This argument justifies that McCain and McCain Superfries marketers have created brand equity by creating a positive consumer response. This is associated with their ability to influence cognitive psychology effect by partnering with superior suppliers of raw materials, committing to quality, creating brand awareness through marketing, and owning superior organizational assets; including patents and trademarks to the McCain Superfries brand (Hur et al, p. 80). As a result, the brand has benefited from increased customer loyalty.

Part 3

Target Market for McCain Superfries Crinkle Cut

The McCain Superfries Crinkle Cut is a product that attracts a diverse target audience. These consumers can be categorized into various segment bases based on geographic factors, demographics, behavior and psychographics (Dibb & Lyndon, p. 260). Classification of target audiences based on geography leads to the identification of target markets in terms of region, size of metropolitan area, population density and climate. Castaldo, (para. 3) notes that McCain Superfries Crinkle Cut is marketed and distributed across all the provinces in Canada as well as the USA. This market size is composed of millions of current and potential customers, especially in the metropolitan areas. Most of the customers are located across urban areas where most families have disposable income.

The target audience, based on demographic segmentation can be defined in terms of age, gender, family size, family lifestyle, generation, income, occupation, education, ethnicity, nationality, social class and religion (Dibb & Lyndon, p. 261). Given that most consumers classify McCain Superfries Crinkle Cut as a snack, it appeals to consumers of all age groups, and gender. However, larger families with a high disposable income tend to purchase more frequently and in large volumes. This product targets audiences who value snacks as part of their eating culture, from diverse ethnicity regardless of their religion and ethnicity.

McCain’s market can also be defined in terms of psychographic segmentation which identifies target audiences based on activities, opinions, interests, attitude and values. Most consumers of snacks and more so, McCain Superfries value luxurious lifestyles, and have either an outgoing or introverted attitude towards life. These customers tend to consume Superfries during holidays, leisure time and as appetizers.

Behavioristic segmentation focuses on understanding customers based on their actual behavior towards a given product. This could be in terms of brand equity, benefits sought, brand loyalty, readiness to buy, user status and occasion (Dibb & Lyndon, p. 260). Most users of McCain Superfries Crinkle Cut tend to associate it with a high brand equity which cultivates a sense of brand loyalty and commitment to the product. In addition, these consumers value the satisfaction attached to McCain products and brand and thus, they tend to have a higher usage rate. They also use the product to derive some form of luxury associated with the consumption of snacks. McCain Superfries Crinkle Cut are priced at $3.49 thus, they attract occasional and frequent usage among potential, regular and first time buyers. The product can be consumed on all occasions but mostly, holidays stimulate an increased demand for McCain Superfries Crinkle Cut.

Part 4

New IMC Campaign

1. Promotional Objectives

The first objective to be achieved through the promotion is to increase brand equity. This objective seeks to create a strong sense of loyalty among consumers in that these customers remain committed to the brand, while attracting new customers. This will ensure sustainability of the product in the market.

The second objective is to increase market share. This objective seeks to influence more customers into accepting and using the McCain Superfries Crinkle Cut as opposed to other snacks. The current market share of the brand is 50% (ChickAdvisor, para 2). Thus, the IMC campaign seeks to achieve a 10% in the following year.

1. Promotional Elements and Tools

The two promotional tools for McCain Superfries Crinkle Cut will include advertising and public relations. These two tools will achieve diverse objectives. For instance, McCain Superfries needs to focus more on social media marketing (Tuten & Michael, p. 90). This will enable it to engage with customers and thus adopting relationship marketing philosophies. The firm will create a higher level of engagement which will translate to increased conversions and positive word of mouth. On the other hand, public relations will focus on sustaining the image of a superior brand which instead translates into a higher perceived value of the product. Public relations will also concentrate on using social networking tools to market the brand as socially responsive and ethical. This will trigger a positive cognitive psychological effective and a subsequent higher brand equity.

1. Promotion Message

“That packet of fries that captivates your senses and makes the tongue delight”

“Low on fat and high in dietary value”

1. Media

The chosen media for the IMC is social networking sites including; products website, Twitter, Facebook and Instagram. These media are considered cost effective and highly advantageous in engaging consumers who share experiences and give feedback. Fatma et al, p. 840) propose that McCain Superfries could also fund charities and other philanthropic activities in order to foster its public relations among consumers.