Market Analysis: Kraft Macaroni and Cheese

February 29, 2016

Caitlin Wallace

Cassandra Golda

Joseph Morone

Lindsey

Mikaela David

Table of Contents
Step 1: Company Analysis…………………………………………………………………...…...3

A. Background Information…………………………………………………………………...3

B. International Involvement………………………………………………………………….3

C. SWOT Analysis………………………………………………………………………...….4

Step 2: Situation Analysis- Countries………………………………………………………….…4

A. The National Business Environment…………………………………………………….....4

a. Canada………………………………………………………………………...…….….4

b. Mexico………………………………………………………………………………….5

c. France……………………………………………………………………………...…...6

d. Haiti……………………………………………………………………………...……..6

      B. Market and Size Potential …………………………………………………………………7

a. Canada……………………………………………………………………………….…7

b. Mexico…………………………………………………………………………..…...…8

c. France……………………………………………………………………………....…10

d. Haiti…………………………………………………………………………….......…12

     C. Country Evaluation……………………………………………………………………..…15

1. 
   Spreadsheet……………………………………………………………………….…15
   

a. All competitors and Targeted Main Competitor…………………………………..…16

b. Key Messages and Customers…………………………………………………….…17

c. Company/ Product Offer……………………………………………………………..18

d. Key Advantages …………………………………………………………………..…19

e. Website Analysis……………………………………………………………………..22

f. Marketing Tactics………………………………………………………………….….22

g. Competitive Summary……………………………………………………………..…23

References…………………………………………………………………………………...….29

The company name we are analyzing is Kraft-Heinz Company: Macaroni and Cheese

(Merged in July of 2015) and is headquartered in the Chicago suburb of Northfield, Illinois. The company website is www.kraftfoodsgroup.com, but the company also has a website specific to their macaroni and cheese product, which is www.kraftmacandcheese.com. The major industry that Kraft macaroni and cheese is the Boxed Food Industry. The Kraft Heinz Company is the third-largest food and beverage company in North America and the fifth-largest food and beverage company in the world, with eight $1 billion+ brands. Since its introduction over 75 years ago, Kraft macaroni & cheese dinner has been a family favorite and is one of the fastest-selling food items in the grocery store. Kraft makes a variety of delicious macaroni and cheese dinners including Kraft Macaroni and Cheese Dinner, Kraft Microwavable Macaroni and Cheese Dinner and Kraft Deluxe Macaroni and Cheese Dinner. The companies mission statement is “Helping People Around the World to Eat & Live Better”. Kraft's mission is to provide fun, healthy food for people to enjoy. Their mission statement informs us that they care about their consumers. Their values are innovation, quality, safety, respect, integrity, and openness. They strive as a company to communicate with the world reassuring them they're a trusted company with their products. Objectives highlighted for the 2010-2015 timeframe include: Source 100% of European coffee brands sustainably, increase sustainable sourcing of agricultural commodities by 25%, reduce energy use in manufacturing plants, energy-related CO2 emissions in manufacturing plants, water consumption in manufacturing plants and waste at manufacturing plants all by 15%. They also are striving to eliminate 50,000 metric tons (100 million lbs.) of packaging material and to reduce 80 million km (50 million miles) from transportation network.

B. International Involvement

Countries where Kraft Macaroni and Cheese is currently involved internationally was quite difficult to find. We emailed Kraft HQ to get more information but never got a response.  It seems as though they are restricted to North America and a few others. The countries that we were able to find that Kraft Mac and Cheese was in the United States, Australia, Canada, and United Kingdom. As of 2015, after the merger with Heinz, they decided they will be spending less time in the United States and try to expand their brand internationally (Source 1). Currently, 98% of Kraft’s sales are from North America (Source 2). Meanwhile, more than 60% of Heinz sales come from outside of North America (Source 2). This offers an opportunity for Kraft to take advantage of Heinz’ relationships and strategies of entering these international markets.

 Demographics-

Both English and French are the official languages of Canada (CIA, 2016a). A majority of their population is between the years of 25-54 which adds up to be about 40.69% of the population resulting in a median age of 41.8 years (CIA, 2016a). As of July 2015, their population was roughly 35,099,836 (CIA, 2016a). The population growth rate is 0.75% as of 2015 (CIA, 2016a).

    Government-

The Canadian government is “a parliamentary democracy, a federation, and a constitutional monarchy” (CIA, 2016a). The legal system is based under “common law except for in Quebec where civil law is based on the French civil code prevails” (CIA, 2016a). The “Prime Minister is Justin Pierre James Trudeau since November of 2015 with Queen Elizabeth II being the head of state since February of 1952 but represented by Governor General David Johnston since October 2010” (CIA, 2016a).

    Geography-

“Located by the Atlantic Ocean (on east), North Pacific Ocean (on west), and the Arctic Ocean (on north)” (CIA, 2016a). The climate “varies from temperate in south to subarctic and arctic in north” (CIA, 2016a). Natural resources available are: “iron ore, nickel, zinc, copper, gold, lead, rare earth elements, molybdenum, potash, diamonds, silver, fish, timber, wildlife, coal, petroleum, natural gas, and hydropower” (CIA, 2016a). “Canada has more fresh-water than any other country and almost 9% of Canadian territory is water” (CIA, 2016a). “Canada has at least 2 million lakes which is more than all other countries combined” (CIA, 2016a). There are 10 provinces and 3 territories with Ottawa being the capital (CIA, 2016a). Toronto, Montreal, Vancouver, Calgary, Ottawa, and Edmonton are the major populated urban areas (CIA, 2016a).  As of December of 2015, the stock of direct foreign investment in Canada was $1.012 trillion (CIA, 2016a). Canada has a similar dollar system to the United States. As of 2015, the exchange rate of Canadian dollar (CAD) per US dollar was 1.28 (CIA, 2016a).

    b. Mexico

    Demographics-

Spanish is the main language of Mexico (CIA, 2016b). The majority of the Mexicans are Roman Catholic (CIA, 2016b). A majority of their population is between the years of 25-54 which adds up to be about 40.55% of the population resulting in a median age of 27.6 years (CIA, 2016b). As of July 2015, their population was roughly 121,736,809 (CIA, 2016b). The population growth rate is 1.18% as of 2015 (CIA, 2016b).

    Government-

The Mexican government is a federal republic (CIA, 2016b). The legal system is based under “civil law system with US constitutional law influence” (CIA, 2016b). The chief of state and head of government is President Enrique Pena Nieto since December of 2012  (CIA, 2016b).      

    Geography-

Mexico has a “strategic location on the southern border of the United States” (CIA, 2016b). The climate “varies from tropical to desert” (CIA, 2016b). Some natural hazards are “tsunamis, volcanos, earthquakes, and hurricanes” (CIA, 2016b). “Hazardous waste, polluted natural freshwater resources, deforestation, widespread erosion, desertification, deteriorating agricultural lands, as well as air and water pollution are some current environmental issues Mexico is facing” (CIA, 2016b). Natural resources available are: “petroleum, silver, copper, gold, lead, zinc, natural gas, and timber” (CIA, 2016b).  As of December of 2015, the stock of direct foreign investment in France was $361 billion (CIA, 2016b). As of 2015, the exchange rate is 15.88 Mexican pesos (MXN) per US dollar (CIA, 2016b).

    c. France

    Demographics-

As per assumed, French is the official language of France (CIA, 2016d). The majority of the French citizens are Christian (CIA, 2016d). A majority of their population is between the years of 25-54 which adds up to be about 38.31% of the population resulting in a median age of 41.1 years (CIA, 2016d). As of July 2015, their population was roughly 66,553,766 (CIA, 2016d). The population growth rate is 0.43% as of 2015 (CIA, 2016d).

    Government-

The Canadian government is a republic (CIA, 2016d). The legal system is based under civil law (CIA, 2016d). The chief of state is President Francois Hollande since May of 2012  (CIA, 2016d). The head of government is Prime Minister Manuel Valls since April of 2014 (CIA, 2016d).

    Geography-

France is the “largest West European nation” (CIA, 2016d). The climate varies depending on the region but typically “cool winters and mild summers except for near the Mediterranean where it sees mild winters and hot summers” (CIA, 2016d). Some natural hazards are “flooding, avalanches, midwinter windstorms, drought, and forest fires” (CIA, 2016d). “Air pollution from industrial and vehicle emissions and water pollution from urban waste are some of the current environmental issues France is being faced with” (CIA, 2016d). Natural resources available are: “coal, iron ore, bauxite, zinc, uranium, antimony, arsenic, potash, feldspar, fluorspar, gypsum, timber, arable land, and fish” (CIA, 2016d).  As of December of 2015, the stock of direct foreign investment in France was $1.299 billion (CIA, 2016d). The exchange rate is 47.63 gourdes (HTG) per US dollar (CIA, 2016d).

d. Haiti

    Demographics-

French and Creole are the two official languages of Haiti (CIA, 2016c). The majority of the French citizens are Roman Catholic (CIA, 2016c). A majority of their population is split between the years of 25-54 which adds up to be about 35.78% of the population and 0-14 which adds up to be about 33.28% of the population resulting in a relatively low median age of 22.5 years (CIA, 2016c). As of July 2015, their population was roughly 10,110,019 (CIA, 2016c). The population growth rate is 1.17% as of 2015 (CIA, 2016c).

    Government-

The Haitian government is a republic (CIA, 2016c). The legal system is based under “civil law system strongly influenced by Napoleonic Code” (CIA, 2016c). The chief of state is vacant as of February 2016 because “President Michel Martelly stepped down from office and parliament is looking for an interim president” (CIA, 2016c). The head of government is Prime Minister Evans Paul as of January 2015 (CIA, 2016c).

    Geography-

Haiti “shares island of Hispaniola with the Dominican Republic” (CIA, 2016c). The climate is “tropical and semiarid where mountains in the east cut off trade winds” (CIA, 2016c). Some natural hazards are “hurricanes, severe storms, flooding, earthquakes, and periodic droughts” (CIA, 2016c). “Extensive deforestation, soil erosion, and inadequate supplies of potable water are some current environmental issues facing the people of Haiti” (CIA, 2016c). Natural resources available are: “bauxite, copper, calcium carbonate, gold, marble, hydropower, and arable land” (CIA, 2016c). There capital of France is Paris (CIA, 2016c).  As of December of 2015, the stock of direct foreign investment in France was $1.124 trillion (CIA, 2016c).

B. Market and Size Potential

a. Canada

Industry-

In the boxed food industry, Canada is currently seeing positive but moderate retail value sales growth.    Demographic changes, such as an ageing population and a growing number of ethnic consumers, as well as trends like premiumisation, time scarcity, health and wellness and budget-conscious consumers, are driving innovation and supporting growth across a wide variety of packaged food types (Packaged Food in Canada. (n.d)).

    Economic-  

(Figures as of 2015 & in US billions) The exports of Canada in 2015 was $639.9 billion while imports were $725.7 billion. The inflation rate was 2.5%. The nominal GDP was $1981.2 billion. The nominal GDP per capita (LCU 1000s) was 55.66. The population growth was 0.8%. The total population was 35.59 million. The unemployment rate was roughly 7.09%. Services accounts for 70.5% of GDP as of 2015 (The World Factbook, 2015). Their main industries include “transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum, and natural gas” (The World Factbook, 2015).

    Infrastructure-

    Media and Technology-

    b. Mexico

    Industry-

In 2013, Mexico was declared the worst country for obesity rates. Due to the increase in obesity rates, the Mexican government put an 8 percent tax on all packaged foods. This tax has decreased the GDP growth of the industry for the following years. Packaged pasta, noodles and rice consumption rates have continued to increase over the years despite the tax from 177,500 tons in 2013 to 185,220 tons in 2015.

    Economic-

    Infrastructure-

In most recent years, Mexico has been working on the delivery methods throughout the country in order to keep up with the fast growing global society. In recent years Mexico has built and modernized 133,000 kilometer network of highways, 76 airports (64 with international flights), and 27,000 kilometers of railroad and 117 maritime ports. In recent years, a majority of the roads have been complete and are able to connect the country together.

    Media and Technology-

Technology and different forms of media are used in Mexico but not as frequently as other countries such as the United States. Internet usage in the country is only at 24 percent. Of that 24 percent who use the internet, 25 percent are below the age of 18 and 32 percent are between the ages of 18 and 24. The literacy rate in mexico is 93.96 percent which means a majority of consumers are able to read different forms of writing such as the news and advertisements 92.7 percent of households in Mexico have a television in their homes. 627.91 per 1,000 people in Mexico have a mobile phone. 135.81 per 1,000 people have personal computers. Radio and radio stations are present in the county but not predominant unless the locations is a large city.

Demand Criteria-

The average number of children per household in Mexico is 3. The literacy rate in Mexico is 99 percent which would allow consumers to read and understand the directions of Kraft macaroni and cheese. The unemployment rate in Mexico was 4.75 percent as of 2015. Consumers in Mexico prefer rice to pasta. There is not an even distribution of wealth. Just like the United States, a majority of the wealth is concentrated with the top 1 percent.

There are many suppliers of various ready meals in Mexico for rice and pasta products. The high number of competitors are also doing well in the industry in terms of revenue. The competitors are selling in many of the larger cities and small villages. Sigma Alimentos is the number one competitor. Sigma Alimentos has been around since 1939. Sigma Alimentos made 5.359 U.S. dollars. in 2014 in revenue. In Mexico, the obesity rate has caused citizens to reevaluate their perception of food dyes and preservatives.

Water is supplied to 96% of Mexico which is good compared to many countries. Many of the distribution sites in Mexico are little corner stores which may be hard to coordinate sales and distribution. Electricity is accessible to nearly everyone in the country. In several parts of the country access to stoves and microwaves is limited but a majority of the country has both. Tariffs for importing goods to Mexico are high currently making shipping goods in not too cost effective.

In recent years, Mexico has made strides towards building better roads in order to allow goods to flow in and out of the country. The obesity rate in is 32.8 percent. The higher obesity rate shows that consumers are less health conscious in Mexico. The internet access in Mexico is 24.6 percent. In much of Mexico the weather is predictable which allows the shipping process to go smoothly.

from

[PDF]. PcW.

attitudes and perceptions toward food products. Retrieved from

11, Rep.). Monterrey, Mexico: USDA Foreign Agriculture Service.

Center. Retrieved February 28, 2016, from http://www.dutycalculator.com/country-

Country In The Americas. Retrieved from

Retrieved from http://www.telesurtv.net/english/news/Mexicos-Extreme-Inequality-1-Owns-

Trading economics (2016). Mexico Unemployment Rate. Retrieved from

Over the world, France is the second largest food export sector. Also the French food industries run gamut from the form of large retail supermarkets to a produce stand at your favorite farmer’s market. The food industries revenue takes 20% of all manufacturing revenues.  The vast majority of French companies (98%) within this sector are small-to-medium sized enterprises. In addition, France is becoming the food export leader among EU.

    d. Haiti

    Industry-

Overall, the general food industry is something that Haiti has struggled with due to internal economic conditions as well as external natural disasters. Haiti has a statistic of 30% of children suffering from malnutrition. Though over 50% of Haiti’s workforce is in the food industry, the Country imports almost half of its food. There are conventional grocery stores and supermarkets spread out across the country primarily located in the capitals and ports. The rural population must travel in order to visit these stores and buy boxed goods. The largest MNE competing in Haiti’s grocery store industry is Caribbean Super Market. Haiti also is home to 40+ other grocery stores. An interesting aspect of Haiti’s food industry is the amount of donations this country receives. Since the natural disaster, Haiti has received food from countless organizations throughout many different countries. Tracking where the food is traveling is a difficult task to accomplish through the internet, but all of the food primarily enters the country through its ports.

    Economic-

(Figures as of 2015 & in US billions)

The exports of Haiti in 2015 was $3.09 billion while imports totaled $11.55 billion. The inflation rate was 6.2%. The nominal GDP was $9.13 billion with a per capita of 0.86. The population growth was 1.2% with a population of 10.51 million. The unemployment rate was roughly 6.9%.

    Infrastructure-

Infrastructure in Haiti is something that Haiti is severely lacking in when compared at a global level. The roads and automotive aspects of Haiti’s infrastructure have been described as insecure and dangerous. However, Port-Au-Prince is a highly profitable area and the closest thing there is to a developed aspect in Haiti. Electricity and running water is something that Haiti also struggles with. Only 12.5% of the population has access to electricity on a consistent basis. This makes it difficult for technologically oriented products to find success in this market. The water situation is either unavailable to a large portion of the population or is contaminated with diseases. To top off the struggle, Haiti has recorded that they currently have no functioning railways.

    Media and Technology-

Compared to the infrastructure, the technology and media of Haiti seem to be slightly better. Twenty percent of the Country (including the rural environment) has access to the internet while almost eleven percent utilize it. Sixty-two percent of the population has access to a cellphone that is provided by four major companies: Comcel, Digicel, Haitel, and NatCOM. The radio industry is composed of over 250 channels that are primarily hosted out of Port-au-Prince. Though it may be difficult to transport physical goods to certain place in Haiti, communicating in this country is becoming easier and more effective every year.

Demand Criteria-

The average number of children per household is 2.79 which has consistently decreased. However, over 36% of the population is under the age of 14. The literacy rate is low as it sits at 48.7%. Haiti’s unemployment rate is one of the highest in the entire world at 40.6%. Even with the labor force constituting 59.4% of the population, roughly half of this population has been described as “not being consistently employed”. Haiti’s tastes and preferences do match Kraft Mac and Cheese; Haiti is known to be a big importer of rice and cheese from the United States and has coined a recipe for their own local Mac and Cheese. The middle class in non-existent as 58.5% of the population is below the poverty line ($2 a day) and the top one percent earners control over 50% of the Haiti’s economy.

Haiti’s water and electricity is something that would pose our product a great number of issues. Only 40% of the population has access to clean water that is not infected by diseases. Electricity is scarce in Haiti as only 12.5% of the population has access to it a consistent basis. The lack of water and electricity are normally two things that are required prepare our product, but Haiti could use the cultural “pots and pans” they have crafted to boil our product over a fire. Distribution sites would also pose a problem outside of the country’s major ports. Tariffs and Shipping costs are not the big of an issue for us as Haiti only charges a 3% tariff on products such as rice.

Overall, the competition Kraft would face in Haiti is fairly weak. The largest competitor would be Caribbean Super Market which an MNE that dominates most of the Caribbean area. However, we could also look to go into a partnership with this company who would serve as a distributor of our Mac and Cheese products. There are over 40 other grocery stores located throughout Haiti, mainly in the port cities. The revenue gained by these companies is low compared to Kraft’s global revenue. However, the grocery stores and the competing brands that they carry have been in Haiti for a long time and it wouldn’t be easy for us to gain brand loyalty against them.

As listed above, the transportation infrastructure of Haiti is in a dire state. While trade boats seem to be what keeps this country operable, all other forms of transportation are in immature states or non-existent. The roads in Haiti are often filled with civilians that are extremely hungry, there are few airports in Haiti, and the railway system is no longer functional. Haiti can be described as a humid and warm country which doesn’t exactly fit our product’s ideal location. Haiti has also experienced a terrible earthquake that has stunted the country’s functions. The obesity rate in Haiti is surprisingly higher than we anticipated: 10.7%. Haiti’s internet usage rate falls at a low 10.9%.

The selected country is Canada.

When researching our competitors, we noticed that there was a difficulty finding market data on the “macaroni and cheese” industry. Since there was a lack of direct data in the macaroni and cheese industry, we were forced to find our main competitor through multiple layers of research.

First, we started by looking at Canada web blogs regarding macaroni and cheese to get a feel for what brands were in Canada and what wasn’t. From the blogging list, we were able to find the following list:

Quinoa Mac & Cheese, Mrs Leeper's Gluten-free Mac & Cheese, Kraft Macaroni & Cheese, Trader Joe's Organic Shells, Velveeta Shells & Cheese, Whole Foods 365 Macaroni & Cheese, Annie's Shells, and Back to Nature Crazy Bugs Macaroni & Cheese Dinner.

Upon a review of our list, we noticed that the bloggers must have imported a few of these product from the United States as they were not sold in Canada. Our next step was to determine what the top supermarkets/hypermarkets/grocery stores are based on Market share. Sources pointed us to 3 major companies: Walmart, Sobeys, and Loblaw.Once we had this list, we evaluated the macaroni and cheese brands that were sold at these stores. The list is as follows: Lancia, Great Value, Catelli, Barilla, Healthy Harvest, Hamburger Helper, Michelina, President’s Choice, Stouffer’s, Kraft Dinner (Our company), and Gerber.Our next step in our main competitor was to find out which of these three stores had the highest market share and units sold. We were able to determine that Loblaw was the clear leading grocery store in these categories. After reviewing Loblaw’s products, we determined that President’s Choice was the most carried Mac and Cheese brand. We are basing our decision on targeting the largest grocery store, and targeting the most carried mac and cheese brand within that grocery store.
P. (n.d.). Presidents Choice - Macaroni. Retrieved February 28, 2016, from
http://www.presidentschoice.ca/en_CA/search-page.query@macaroni.html
E. (2016, January). Grocery Retailers in Canada. Retrieved February 28, 2016, from
http://www.euromonitor.com/grocery-retailers-in-canada/report
I. (n.d.). Your Independent Grocer - I promise you low prices. Retrieved February 28, 2016, from
http://www.yourindependentgrocer.ca/en_CA.html
Hypermarkets , supermarkets and hard-discounters in canada: Market snapshot to 2017. (2013).

(). Basingstoke: Progressive Digital Media. Retrieved from

2016, from http://globalnews.ca/news/1678970/heres-whos-really-winning-canadas-grocery-

from https://www.thrillist.com/eat/nation/taste-test-ranking-the-best-grocery-store-mac-and-

from http://www.fool.ca/2014/03/05/who-is-canadas-strongest-grocer/Homepage - Sobeys

Inc. (n.d.). Retrieved February 28, 2016, from http://www.sobeys.com/en/?f=693
b. Key Messages and Customers

A common theme present throughout advertisements for President’s Choice is the idea of getting more. The company, in various ways, attempts to convey to it’s target audience that by shopping with them you are getting more for your money. They are not just trying to convey that they have affordable prices but also that they an abundance of quality options. In many of the most recent advertisement released, they have focused on organic foods. Highlighting the line of organic foods in the store also helps paint the picture of quality food being sold at President’s Choice to customers and potential customers.

Based on the company's website and various forms of advertisement, President’s Choice attempt to target younger couples and families. These families are looking for something that not only tastes good but is good for them. They target market is more chic than the typical grocery shopper. On the company's website they have a variety of different recipes and none of them are the average whipped-together meal. Each recipe has something that brings a little extra excitement to the table.

In November 2015, President’s Choice started a new marketing campaign that was focused on the fashion industry. The campaign used vocabulary that related to the fashion industry to promote the new line of seasonal products. Food is trendier now than it has ever been thanks in part to visually driven social platforms such as Instagram. President's Choice uses Instagram to entice its target market. They post pictures trendy looking meals, snacks and drinks. The quote listed in the biography section of the company’s Instagram is “We crave the new, the next, and the never been done. Because the more we ask, the more we discover. Like us and tell us your likes.” This quote further demonstrates the type of consumer the company is hoping to attract. They are trying to appeal to customers who are sick of the same old food. They want customers who are willing to try to make new and exciting things that are also healthy.

“PC Extra Cheesy Macaroni & Cheese has been a family favorite since it was introduced at my grandparent’s house. It is more delicious than any homemade I have ever made or ever tried. The thick creamy cheese is sensational and the bread crumbs give it an extra awesome kick. The noodles are not soggy or overcooked and the cheese is not rubbery and tasteless which I often find with some other ready to eat meals. It's a super quick and easy meal to just throw in the oven which is awesome since my family is always on the go. A++.” While this is just one example, the raves about the taste and quality of several different products sold at President’s Choice goes on and can be found on and on.

from the fashion industry. Retrieved from http://www.theglobeandmail.com/life/food-and-

wine/food-trends/how-loblaws-presidents-choice-is-taking-marketing-cues-from-the-fashion-

industry/article27209570/

Retrieved from http://www.marketingmag.ca/advertising/crave-more-attempts-to-make-pc-a-

lifestyle-brand-124926

President's Choice. (n.d.). Products. Retrieved February 28, 2016, from

http://www.presidentschoice.ca/en_CA.html
c. Company/Product Offer

Presidents Choice food company is a brand that can be found in the Loblaw Supermarket.. President's Choice offers over 100 cheese products to its loyal consumers, and these consumers can retrieve information about the products on PC’s website and access featured recipes. They do not only provide cheese to cook with, but also have premade or fast food entrees that include cheese products. The brand has eight different subcategories of products as listed below.

President’s Choice Original - The original PC brand that offers minimum unique benefit.

PC Plus - Includes products that allow you to earn point that serve as store credit.

PC Black Label Collection - Includes products and flavors that are modeled after international culture.

PC Green - Includes products that are environmentally friendly and have performance benefits.

PC Blue Menu - Includes products that are created with less fat, sodium, and more fiber and vitamins.

PC Nutrition First Pet Foods - Includes food for household pets that have nutritional benefits.

PC Organics - Includes Products that are organic and have passed the third party certification tests.

PC Free From - Includes meat and poultry products that are free from antibiotics and growth hormones.

President’s Choice competes in multiple different industries that are listed in the Key Advantages or Differentiators sections. PC consumers have the luxury of streaming information from the brand because PC is active on the most popular telecommunication sites such as YouTube, Twitter, and Facebook.

The PC Macaroni and Cheese products are known for their nutritional value. Sodium is a negative ingredient found in Macaroni and Cheese, PC has built a competitive advantage for their Mac and Cheese products by making them low in sodium. PC also has a few different products listed in their Black Label Collection meaning that they are recipes designed from macaroni and cheese from other countries.

President’s Choice is a strong brand derived from Loblaw’s private label sector. Loblaw holds the largest market share in the supermarket industry at 34%. Though Loblaw is an extremely profitable organization by itself, President’s Choice was rated Canada’s 8^th most influential and trusted brand in 2014 by Ipsos Reid.

Part of the reason Loblaw has been so successful is because their customers recognize that President’s Choice has a commitment to producing healthier and better quality food. President’s Choice has eight major brands that all have unique value offerings. These offerings all revolve around health and nutritional values; however, each brand has a different offering. Let’s take a look Macaroni and Cheese brands of Macaroni and Cheese.

*PC Blue Menu – This brand focuses on making eating less fat, less sodium filled, and more fiber filled.

*PC Black Label – This brand focuses on bringing in a “foreign flavor” element to its offering and selecting it as its most luxurious brand.

*President Choice Original – This brand focuses on upholding the original President’s Choice healthy product line.

Multiple Industries

Along with offering multiple options within its brand, President’s Choice also offers a variety of other services outside of the food industry.

President’s Choice® Cooking School – President’s Choice has established multiple cooking schools through the Canada area. The cooking schools have two main strategies: entertainment (PC professional chefs cook for the attendees and perform various skits and activities) and educational (PC professional cooks demonstrate how to create specific recipes and tips for preparing higher quality food.)

President’s Choice Financial® - President’s Choice has established a financial service that functions as banking system and an educational system. Services include: credit card services, checking accounts, savings accounts, tax forms, mortgages, investment, and borrowing.

PC® Mobile – President’s Choice offers mobile phone services and plans for both domestic and international use.  

PC® Insurance – President’s Choice offers Auto, Home, Pet, Travel, and Life Insurance plans.

President’s Choice is a strong company when it comes to community relations. The company is recognized a strong fund-raising and charity involvement presence. The organizations they contribute to are as followed:

• 
  Child Nutrition Programs: Breakfast for learning, Boy and Girls Clubs of Canada, and Special Needs Charity
  
• 
  PC cements themselves as a company with a mission for its customers by participating in the fundraising of these programs.
  
• 
  Oceans for Tomorrow
  
• 
  PC partakes in fundraising for environmental programs such as “Oceans for Tomorrow” to associate their products with natural and earthly properties.
  
• 
  PC is also known for hosting Golf and Bowling events for promotional and fundraising purposes.
  

A large marketing tactic that PC utilizes is called the PC Insiders Collection. PC Insiders Collection is an interactive magazine located on the company’s website. It contains information about how to use PC brand foods to create new and exquisite recipes. Reports have said that PC modeled this program after what the fashion industry has begun to do with their marketing campaigns. PC Insiders Collection seeks to educate the consumer about the most effective ways of using PC products.

Creating content has been a large part of PC since its beginning. Every PC product/service has blog posts surrounding it to keep its viewers informed and checking back for new updates. For a long time, PC traveled outside of Canada and into foreign countries to tap on their food culture and expertise. Naturally, PC began to implement their discoveries into their products and publish posts about their experiences.

Locations

Owning 34% of the market share, Loblaw’s brand PC can be found throughout Canada. Below are the stores PC brand foods are found.