Mc Cain Foods Limited: Global Fries – Good in Any Language!
Name: Adnan Mujeeb Farooqui
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____________________________________________________________________________ Answer1. Entering new markets is an excellent way to expand ones business. Targeting new markets is risky, but if a brand successfully enters a new market, there are profits tremendous. McCain is already one of the most famous brands for fries in the world for Canada and it embraces multicultural experiences and traditions. Entering China might be a challenge for it as lesser people consume food from KFC and McDonalds, which was one strategy McCain would use to capture a new market.
I would recommend McCain foods to start reaching out to the brands using potatoes in their recepies and are famous amongst Chinese people first, rather than directly entering the market with their own brand name. People usually feel uncomfortable and trying new products while they are already comfortable with products they have been using for a while, hence those products have to be used to get the taste and quality of McCain into people and then bring forward their own name. McCain should also see what the Chinese markets’ demands are related to potatoes and try producing those products rather than putting in the stores what is consumed by the people in USA or Canada. People have a complete different sense of taste and something innovative will have to be done in order to capture the market .
The traditions and taste of China are a barrier for entry in the market for fries hence I would recommend McCain to hire someone to generate new ideas as to how the fries can be introduced into the market. Ideas could include introducing McCain fries presented with a Chinese dish that tastes even better with fries! Along with introducing its fries to McDonalds and KFC it will have to target the most popular Chinese food outlets so that people develop taste for McCain’s products, then later on it should promote its brand through marketing and introduce the product in the market through grocery stores etc by its own brand name. The entry in the new market should be gradual rather than immediate and fast.
The Chinese market is important for McCain’s profitability. It will have to be flexible cost wise and keep its prices relatively low in the Chinese market at first so that people do not at least hesitate in getting the product because of price issues and that it is accessible by all types of people in the consumer market.
Answer2. If McCain would have directly entered the Chinese market with its own brand name rather than going in through a famous brand like KFC or McDonalds, in my opinion, it would have not been successful or the rate of capturing the market would be extremely slow. As mentioned in answer one, people hesitate in trying something entirely new in the market and hence blending your product with one that is already popular amongst the market is a good strategy in taking a firm entry. There are chances that it might be successful as it is already one of the most world famous brands across Canada which means the taste and quality is commendable but entering the Chinese market could take a very long time for it, if it does capture the market eventually. But in my opinion, the best policy to take a firm entry is by going in through the brands that are already famous amongst the people and then once the consumer market is strong enough, then formally introduce the brand name along with the product so that by that time everyone is comfortable and well aware of the product and there is a seperate demand in the market for it.
Directly coming in the market would have also been more costly resulting in higher prices which will definitely not be appreciated by the consumers and might become a barrier to entry. Maybe not just KFC and McDonalds, but it should target the Chinese food outlets that are very popular amongst the people over there so that people start consuming the products and develop a taste and a want for it. In my opinion, directly entering the market with a new product and a new brand name, especially when potatoes are not consumed a lot by the Chinese people will not be such a good idea.