Question

McCain Foods has unveiled recently the new Shake Shake range with flavours such as Chicken; Salt & Vinegar and Cheese & Onion. McCain Foods product manager, Simone Formisano said in a statement Shake Shake was designed to respond to consumers asking for bold flavoured snacks guaranteed to make any gathering a happy moment of togetherness around the bowl.

“Our research found that 95 per cent of the frozen potato category is being consumed as part of a main meal. We wanted to shake things up in the category by giving the potato a chance to take centre stage and become a key snacking solution,” Formisano said. “We’ve always taken pride in our innovation in the frozen food category, and we have our fingers on the pulse of what’s trending in the broader food and FMCG market,” Formisano said. “Snack-based dinners, enjoyed on the couch or around the coffee table are currently trending, and we saw an opportunity to take Australia’s favourite flavours into the freezer aisle.”

Each bag of Shake Shake comes with a tangy seasoning sachet that consumers pour into the bag, shake up, and then tip onto a tray to bake. About 20 minutes later, the moreish chips are ready to be enjoyed hot and crispy, shared right from a bowl. The flavour sachets, all enhancing the natural taste of potato, are provided separately giving consumers the fun option to customise the amount of seasoning desired.The McCain Shake Shake range comes in three classic snack chip varieties; Chicken, Salt & Vinegar and Cheese & Onion, and is available in all major supermarkets nationally.

QUESTION: Based on the concepts discussed this semester, explain the strategic motivation behind McCain's launch of Shake Shake range. Then assess whether McCain's will be successful with this product?

Answer 1

Based on the concepts discussed this semester, explain the strategic motivation behind McCain's launch of Shake Shake range. Then assess whether McCain's will be successful with this product?

The main strategic motivation behind the launch of Shake Shake range is that to, get some financial as well as non-financial objectives fulfilled. Currently, Shake Shack has a dream and goal in common: strive for the positive. This declaration reflects a strong vision for the business because it is positive, holistic, long-term, empowering and contributes to the ideals of the organization. It does not, however, serve as an adequate mission statement since it does not mention what the company's business is in or its competitive advantage, it also appears to lack overall clarity.

Its financial objectives for the launch year include having to get, Total income between $237 million and $242 million, Same-Shack revenues increase between 2.5 percent and 3.0 percent, deleveraging between 1 percent to 1.5 percent of Shack labor revenues and associated costs on an annual basis and eventually modified pro forma effective tax rate between 43 percent and 44 percent in its launch year. As well as non financial objectives include,  Opening 13 corporate stores each year in the u.s, opening 7 international shacks to appropriate distance partners and capitalizing on enormous brand recognition

And, I think McChain's will be successful, Because the product range looks good and feels good to be successful as well as comapring the product range with its extensive brand recognition as well as marketing strategies one can easily assess that it has number of reasons to be successful rather than to be not.

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