Marketing Strategy for McCain Sweet Potato Chips in Australia

This report presents a well-developed marketing strategy for McCain sweet potato chips in Australia, based on industry analysis and insights into consumer behavior. The strategy includes an integrated marketing mix and point of sales strategy, targeting the teenage and female student market segments. The report also includes recommendations for packaging and promotion.

Running Head: FOOD MARKETING
FOOD MARKETING
Students ID:
Name of the University
Authors note

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Executive summary
Australia has a rapidly growing economy within an increasing economic focus into
the food industry. In this context, the snacks industry has high potential to expand their
market in Australia. However, the report has been prepared to highlight the marketing of
McCain sweet potato chips, which is a comparatively new product that has encountered
significant growth in the existing Australian market. Therefore, based on the analysis of the
industry and insights into consumer changing behaviour and decision making the study
presents and well-developed strategy of the marketing mix and Point of sales strategy.
In order to address the growth of the product in Australian, the teenagers and female
students were analysed as the most attractive market segments. Owing to the higher strategy
of pricing and indirect competitive health concerned food products, McCain has the option to
utilise their brand in spite of the limited income of the students. Therefore, with the proper
implementation of the marketing mix the study present clearly illustrated segments of the
market that can be targeted for sweet potato chips in Australia.

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1. Introduction
The main aim of the study is to establish a particular marketing plan for McCain
potato chips, which is a popular product with a high opportunity for growth in Australian fast
food market. In order to obtain an appropriate strategy of marketing, a summarised and
outlined report of the product and industry analysis will be conducted in the study based on
changing consumer behaviour. In this context, recommendations on the marketing strategy
have been given in the study.
2. Industry analysis and the products
Potato chips production industry has encountered changing consumption of patterns
and intense competition from several substitutes and private marked products over the period
of past years. As stated by Kraak and Story (2015), the most notable fact is the increasing
consciousness about health that has encouraged the consumer to take up healthy eating
activities over the years. As a result of which consumers nowadays are increasingly opting
for the healthy substitute for snacks and fried products. However, despite the change in trends
towards healthy foods, sweet potato chips remained as the most favourite snack for the
people.
According to Morgan (2018), research data from different companies shows that
Australian prefers the sweet taste to savour. Sweet potato chips are the most popular snacks
that are chosen by men and women for mostly the teen consumers. In an average period of
the week, almost 41% of the consumer has seen to be preferring sweet potato chips as snacks,
37% prefer nuts and 32% offers biscuit and crackers (Ibisworld.com.au. 2018). However,
salty snacks are nation's undisputed preference, but sweet potato chips have currently
outnumbered them in Australian.

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Figure 1: Growth and trend of Potato Chips in Australia
(Source: Ibisworld.com.au. 2018)
3. Consumer behaviour and market
It is necessary to acknowledge the target market and changing the behaviour of the
consumers in the process of purchasing the product in order to develop a marketing plan.
Insights into customer behaviour of purchasing will help to focus on the limited resources of
the organisation on most of the relevant factors,
3.1 Target market
It is the differentiating taste and texture of McCain sweet potato chips that have made
them popular amongst the consumer and in the market. As stated by (), a recent
announcement has shown that McCain sweet potato chips have won awarded for offering
coveted product underlining the ongoing consumer loyalty. From the perspective of the target

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market, it has been found that women tend to prefer sweet snacks and chips to men. Almost
35% of the women prefer sweet potato chips whereas 19% of the men prefer chips
(Ausfoodnews.com.au. 2018). Potato chips have remained to be popular snacks for a long
period in Australian. In this context, Australian Food News reported that in the year 2013
potato chips have tended to defy the overall trend of downward in snack food.
Geographic Demographic Psychographic Behavioural
 Australia
 Emphasis on
Australian
urban areas
near schools
and colleges
 Fluctuating
climate and
health
concerns
may
influence the
eating
behaviour.
 Women,
children, and
men
 Aged in
between 10-
15
 Age group
15-30
 School
students
 Working
people
 Average
income
family
 Chips are
highly
preferred by
children and
teenagers
who like to
eat spicy
food while
watching
movies
 Women and
men who are
aware of
health and
likes to go to
the gym
 People who
like to try
new taste
 Student
programs
 Teenaged
parties
 There are
low snacks
eating habit
amongst men
so they will
be provided
with mixed
ingredients
 Sensitive
price
 Affected by
social
relationships
and
suggestions

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 Digital
platform and
social media
channels
from friends.
In order to evaluate the target market segment criteria of segmentation, the details
will be outlined through detailed illustration. They are:
Measurable: alongside the individual schools and college’s statistics, also the ABS statistics
provide data on the market illustrating the market segmentation. According to the report by
ABS, almost 10 Australian households have phase's sweet potato chips in the previous years
with a marked increase of 436,000 additional households (Nielsen.com 2018). Following the
market trend, it has been estimated that the trend of sweet potato chips is expected to grow by
AUD 175.85billion in the year 2021 with a CAGR of over 5%. However, almost, 41% of the
women aged in between 15-30 prefers healthy foods so they can be convinced to opt for low-
fat sweet potato chips (Foodservicegateway.com.au. 2018).
Sustainable: The teenager's segment is the most growing market according to ABS data
2017. Therefore, this specific segment will not only provide profit to the store but this will
also be helpful for the convincing the other health-concerned people to prefer the products of
McCain for a long-term period (Businesswire.com. 2018).
Accessible: The school and college students can be easily reached in a collective way
through school and college events and outside office gyms and clubbing areas. Due to their
studying activities, the accessibility is possible not only through offline models but also
online platforms through social media. The current Y and Z generation are more digitalised
and are highly acquainted with social medium.

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Differentiable: The segment of women is highly identifiable and differentiable from the
other markets, due to the equal gender and places. Most of the female population and children
can be targeted with a differentiable approach.
Actionable: According to Morgan (2018), it is the necessity for tasty eating snacks that are
affordable and can be reached through integrated marketing mix strategy for the clearly
defined age group and population in Australia.
3.2 Consumer decision making
From the consumer perspective of the decision, making it has been found that the
international potato chips market has been witnessing a dramatic growth over the period of
past years. As stated by Steen (2018), it is the increasing per capita consumptions of food in
different regions like America and Australia; there is a major growth for the product segment.
In addition to this, it is the demand for changing taste amongst the consumer that has
increased the sales in sweet potato chips that has as well increased the demand for innovative
taste with a variety of favour in the market.
The consumer now prefers sweet potato snacks in different shapes and sizes as well as
different colours that act as the major differentiating element for the customers
(potatochipsmachinery.com. 2018). It is the increasing disposable income, specifically
amongst the middle-class customers, that may increase the growth of the market during the
period of forecast. Other significant drivers of consumer decision making include the
burgeoning activities and increased focus on the innovative products.
Consumer nowadays prefers extruded chips, snacks with no additional chemical zero
trans-fat, and with low content of sodium, that is rapidly gaining popularity (Ridoutt et al.
2016). The stores and organisation can attract motivate the consumer decision making by

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adopting new technologies like twin screw extension that have advanced into the market for
enhancing the functional efficiency of the suppliers.
4. Positioning
Mac Cain sweet potato chips have several opportunities to establish their strong
presence within the chips market in Australia. The organisation has a variety of products
offered in the market. Therefore, they can distribute throughout the international boundaries
to expand their market popularity in major cities. According to Ariyawardana et al. (2018),
the company can as well utilise domestic ingredients in their production of healthy and more
nutritious as well as tasty chips for attracting new and old customers.
Mission
The mission of the brand is to produce the best quality of Mac Cain sweet potato
chips in the Australian market
Objectives
 Increase the number of product variety and awareness about the brand in the
Australian market
 To push the sales to achieve almost 1% of the brand share in the Australian potato
chips market within the period of the next 3 years.
5. Marketing mix
In order to accomplish the objectives of marketing for the Australian market and to
target particular segments of a teenager and student population, an integrated marketing mix
strategy is necessary Luo et al. (2016). In this context, this chapter consisted of the detailed
illustration of the product, price, and promotion. Packaging and point if sales of the product
that are linked with the marketing mix.

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5.1 Product
In spite of the fact that there are several wholesale organisation such as Lays potato
chips and other variety of chips that already distributes through several channels in Australia.
Therefore, a differentiating strategy of marketing of sweet potato chips will increase the
effectiveness of marketing (Kraak and Story 2015). As McCain sweet potato chips are
delicious snacks, which already has significant opportunities for growth, the product has to be
targeted mostly for the teenager’s women segment (Sarmugam and Worsley 2015). In
addition to this, a modernised packaging would allow them to attract the potential female
consumers in a proper way. However, there may be a potential failure that may take place due
to the high diversification in the developing new market; therefore, the establishment of
product needs to be considered as a long-term priority.
5.2 Price
Since the potato chips market has been seen to have reached the state of maturity, there may
be a certain pressure on the pricing strategy used by them. Moreover, increased advertisement and
discounts offer may also create pressure on the price unit. However, Yi et al. (2015) stated that in the
target market segments, the value of the perceived product is more essential them the pricing strategy
of the product. On the contrary, stated that de-Magistris et al. (2016) teenagers and female segments
are prices sensitive due to their low and null income.
Moreover, besides the quality of the chips, there are alternative for them to avail other chips
in the local stores for which the consumer may be willing to pay less. However, food quality with low
fat and low sodium content may be highly preferable for the health concerned women segments and
they agree to pay slightly more for a quality and tasty sweet chips. Moreover, apart from the segment
pricing strategy, a discount for the students would be helpful for the teenagers and the brand as well.
This strategy may help in the increase of sell with less expensive products for the teenagers and the
students. This will be an attractive strategy of selling as well as an effective opportunity for
promoting.

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5.3 Promotion’
In the case of promotion, the brand can utilise the largest fleet of vehicles to distribute
sweet potato chips in every store in Australia. By doing so, they are required to convince the
suppliers who currently do not stock sweet potato chips. However, Darmon and Drewnowski
(2015) asserted that without promotional and advertising, the brand could not make the
customers aware of their products. Therefore, the company is required to broadcast their
advertisement in areas who children’s and teenagers visit often. For instance, school events,
college events, playing part, shopping complex.
Facebook: There are over 50,000 active users and fan of McCain potato fries on a
Facebook page. Therefore, they can utilise the social media platform to promote their
products by highlighting attractive pictures of sweet potato chips (Ausfoodnews.com.au.
2018). Through the social media channels, they can also interact with the customers in order
to understand the consumer trends and demands; this is the easiest and the cheapest method
to keep an update on the fans with the details of the product.
6. Marketing activities point of sales
Point of sales in necessary factors that are used in the promotion of the product.
Specifically, this is important in case of an interruption in the routine purchasing behaviour
and marketing activities at the point of sales.
6.1 Packaging
Packaging has various functions such as protecting the product, promote and
informational activities related to the producer. Alongside the branding of the product,
packaging also gives an appealing appurtenance to the product that is a necessary factor in
increasing the awareness of the product (Nielsen.com 2018). However, in case of packaging
of chips the company is required to utilise a differentiated, methods of packaging to make it

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look attractive for the women and children consumers. They can use a variety of coolers for
the different flavour of the sweet potato chips. Ridoutt et al. (2016) state that purchasers are
highly impacted by the vibrant colours and symbols used on the packaging of the products.
6.2 Price promotions
As the teenagers and students are prices sensitive in comparison to the other segments
in the market, price promotions are necessary for increasing the point of sales. Ariyawardana
et al. (2018) stated that purchaser usually seeks for barging price. This is because the price is
the most critical part of the marketing. Based on these criteria, the brand has to set effective
process and carefully applied discounts on the products for the students and teenagers.
7. Conclusion
Therefore, from the marketing strategy of McCain sweet potato chips, it is evident
that there is a significant opportunity for the brand in Australia that can be obtained through
the integration of the marketing mix strategies. However, owing to the fact, the sweet potato
chips are not very well known in the Austrian market. Therefore, it is necessary for the brand
to offer the increased product as well as awareness about the brand with a high intention to
increase and expand the share in the market. Moreover, through a clearly defines segment in
the market, the brand of sweet potato chips will be able to target the teenagers and female
segments in the Australian market.

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Appendix
Appendix 1: Growing trend of snacks in the market