The government's recent warning that 12m UK adults will be obese by 2010 unless they change their lifestyles could mean even more misery for frozen-chip manufacturer McCain.
Consumers have already altered their buying behaviour in acknowledgment of their growing waistlines; McCain's sales fell by 8% to 拢200m-拢205m in the 52 weeks to 23 April, according to last month's TNS Worldpanel 2006 Biggest Brands survey, published by Marketing.
McCain has battled hard to keep hold of its customers by expanding its range. In a flurry of NPD, it added to its potato wedges and Southern Fries ranges with variants such as Aromatic Thai Spice Wedges flavoured with lemon and coconut. An accompanying campaign urged consumers to 'Do something different with potato'; unfortunately for McCain, consumers followed its advice and left its products on the shelf.
The company has also taken steps to update its advertising to be more relevant in the current climate. In late-2004 it blew more than 拢1m on a three-and-a-half minute prime-time spot to celebrate its 25th anniversary. Starring former Nationwide presenter Valerie Singleton, the ad, created by TBWA\London, was shot as if it were 1979, and predicted 'amazing' phenomena that would take place in the future, such as mobile phones, before suggesting that people would still be buying McCain oven chips.
The company quickly moved on from this celebratory one-off to put the emphasis on the 5% fat content of its oven chips. The strategy followed research by McCain which showed that 52% of consumers felt guilty about serving their family chips because they thought they were unhealthy.
In June, the company shifted its 拢15m ad account from TBWA\London to Beattie McGuinness Bungay, and it will be interesting to see whether the health drive continues or the brand goes for something more fun when BMB releases its first campaign.
McCain is also trying to persuade consumers to stick with it through a loyalty scheme, introduced in March. The activity includes money-off vouchers and on-pack discounts.
Will it be enough to help the brand recover? We asked Mick Rigby from communication planners Monkey Communications, who has previously worked on both Heinz and Kellogg, and packaging design agency pi global's chief executive Don Williams.
VITAL SIGNS - MCCAIN'S SHARE OF FROZEN PREPARED-FOODS SECTOR
2005
拢217m - Sales
Market share - 8.13%
2006
拢202m - Sales
Market share - 7.95%
DIAGNOSIS 1 - MICK RIGBY MANAGING PARTNER, MONKEY COMMUNICATIONS
Everyone loves chips, so McCain's current ills are unlikely to be about taste. In the context of Jamie's School Dinners and the government's '5 a Day' initiative, health is clearly significant to the whole sector's slowdown. But while a new generation is being raised on pasta and rice, there are other, sociological factors equally worthy of note.
Working mums, for example, would be expected to feature in McCain's core audience. But time is critical here, and where chilled food goes into the oven and on kids' plates in 10 minutes, frozen food takes longer. Households today are often smaller, with one- or two-person dwellings, and smaller freezers (full of vodka and ice cubes) are now common. It can also be cheaper and easier to eat out than in.
Equally, McCain's portfolio is based on side dishes - they're a 'nice to have', rather than a core component of a meal - which adds further inconvenience to preparation, and places its products in a far more competitive environment. Its ads are also product-focused, with little umbrella branding.
REMEDY
- Consider an organic range, adding healthy credentials to the brand.
- Concentrate harder on creating main-component meals.
- Go back to basics - the good old-fashioned chip, for grown-ups. If they can work in Langan's, they can certainly work in the home.
- Concentrate on developing the McCain brand by emphasising its frozen-potato expertise.
DIAGNOSIS 2 - DON WILLIAMS CHIEF EXECUTIVE, PI GLOBAL
Does any consumer in the UK know what the McCain brand is, other than that 'it makes oven chips'? It has invested heavily in its products, but not its brand; it says 'lazy chips' rather than 'passionate about potatoes'.
The company really should be seen as the champion of the potato - no rival has such a heritage to build on.
In a world where health and fresh produce are setting the food agenda, McCain presents its brand and products about as appropriately as JCB painting its equipment pink with blue bunnies.
Its portfolio is schizophrenic and seems to be based on a manufacturing capability rather than brand relevance. Attempting to move the brand into alternative categories, such as chilled, really does not help solve the critical issues. Given the choice of shopping in the frozen-food aisle or the fresh produce aisle, where would you rather be?
I find it staggering that an entire industry has consistently failed to communicate to consumers that frozen is often fresher than 'fresh'.
REMEDY
- Define the brand, ensuring it is relevant, motivating and flexible, and start telling the consumer about it in advertising.
- Create a strong umbrella brand identity, giving it greater visibility in-store, and communicate the identity consistently at every consumer interface.
- Repackage the entire range to make it look less like over-sized crisp packets and more like good-quality, potato products from the expert potato brand.