An evaluation of the opportunity for McCain to enter Liberia

Prepared by: Mangal Das

Student ID: 4450131

Prepared for: Prof. J. Davidson

Senior executive team

Date: 10 April 2023

 Executive summary

This paper looks at the characteristics of McCain Food Corporation and Liberia, a new market
for the company. McCain Food Corporation is a well-known international corporation that has
positioned itself as the largest frozen food producer worldwide and is presently present in more
than 160 countries. With its location in West Africa and reputation for having a robust
agricultural industry, Liberia offers McCain Food Company a substantial chance to grow its
operations. McCain Food Corporation has a distinguished past and has made a name for itself as
a major participant in the world of frozen foods. The firm generates 11 billion dollars in revenue
annually, and a strong SWOT approach has allowed it to stay competitive. The firm has been
able to retain the quality of its goods, which has been essential to its success, thanks to its
emphasis on agriculture and participation in society. To enhance its worldwide footprint and
market share, the corporation has also undertaken a number of expansion initiatives. West
African nation of Liberia is well-known for its robust agriculture industry. The country's
economy is heavily reliant on agriculture, which gives a big potential for businesses involved in
this industry. Liberia's economic situation is difficult, and the nation faces a number of legal and
regulatory issues that present major barriers to conducting business. The study comes to the
conclusion that McCain Food Corporation has to implement a marketing plan that takes into
account the difficulties of the Liberian market in order to succeed. McCain Food Corporation
should implement a marketing plan that emphasizes the excellence of its goods and takes into
account market constraints if it wants to effectively join Liberia's market. For the corporation to
raise the caliber of its goods and gain a foothold in the market, it needs form alliances with
regional producers and vendors. In order to comprehend the local marketplace and create items
that are suitable for Liberian consumers, the corporation should also spend in research. McCain
Food Corporation may effectively join Liberia's market and position it as a prominent participant
in the nation's economy by heeding these advices.
Contents
Introduction.................................................................................................................................................3
Research design...........................................................................................................................................3
Secondary research..................................................................................................................................3
Qualitative Research................................................................................................................................3
Quantitative Research..............................................................................................................................4
Company profile..........................................................................................................................................5
Target market..........................................................................................................................................5
Competitive advantages/gaps..................................................................................................................5
Existing expansion outside of Canada.....................................................................................................5
Country profile............................................................................................................................................6
Market size and growth...........................................................................................................................6
Recommendation.....................................................................................................................................6
Implications and risks..................................................................................................................................7
Marketing implications:...........................................................................................................................7
Operation implications:...........................................................................................................................7
Risks:.......................................................................................................................................................7
Recommendation.........................................................................................................................................8
References...................................................................................................................................................9
Introduction
The purpose of this paper is to evaluate McCain Food Company's possible market entry
possibility in Liberia. A section on the study methodology is included to shed light on the
technique used to perform the assessment.

Research design
Secondary research
Objective: This study's research seeks to evaluate McCain Food Company's prospective market
entry possibility in Liberia.

Method: For this purpose, secondary research was undertaken, which required gathering and
evaluating data from a variety of reliable sources, including academic publications, papers, and
internet databases. The procedure of gathering the data included looking for pertinent keywords,
vetting resources, and pulling out relevant data elements. Mistakes were made, such as using
some less reliable sources, but they were fixed by comparing data from several sources and
giving the more reliable ones priority. Overall, doing this review using secondary research was
an effective strategy (Christian & Gereffi, 2018).

Qualitative Research
Objectives: Gaining knowledge of the possible target market for McCain Food Corporation in
Liberia and understanding their attitudes and preferences related frozen food items are the
specific goals of the qualitative study.

Method: Focus groups with participants who represented the projected target market were
conducted using this strategy. A variety of avenues, particularly social media and regional
organizations, were used to find participants. Mini-groups were chosen to reflect a diversity of
experiences and viewpoints. The respondents were asked open-ended questions such as "How do
you now buy food products?" and "What are your thoughts about frozen food products?" These
inquiries were made in order to further our awareness of the tastes and behaviors of the target
audience while also addressing the study goals. To learn more about the interests of the target
market, a projective method was employed, like as respondents were asked to explain their
perfect meal (Brander, 2018). Transposing the tapes, classifying the replies, and finding
recurring themes and patterns were all steps in the analysis of the focus groups and interviews. It
should be highlighted that individuals who haven't left the nation could only be somewhat
familiar with McCain Food Corporation.

Quantitative Research
Objective: the study seeks to pinpoint the target market's purchasing patterns and preferences as
well as the best advertising approaches that can aid McCain Food Company in breaking into the
industry.

Method: A representative sample of the Liberian population will be surveyed as part of the
quantitative research methodology. Depending on the target nation, the survey will be performed
through telephone, intercept, mail, or email. This approach was chosen because it will yield a
wide variety of replies and a sizable sample size, which will aid in producing more trustworthy
and reliable readings.

Profile of target respondents: Those who reside in Liberia and are prospective clients of
McCain Food Corporation will be the targeted responders. The study will target those who are at
least 18 years old and want to buy frozen food items. In regards to age, ethnicity, household
income, and educational attainment, the sample will be typical of the population in Liberia.

Sample: The population of Liberia and the required degree of precision will be used to
determine the sample size. The participants will be chosen at randomness from Liberia's
population as part of the random sampling technique. The procedure, such as random
stratification, is used to guarantee that a random sample will be taken.

Data Analysis: Statistical techniques like descriptive and inferential statistics and linear
regression will be used to analyze the survey results. In order to evaluate the data, tools like
SPSS, Excel, or other pertinent programs will be used. Process procedure, tendencies, and
correlations in the data as well as making inferences based on the results will be the goal of the
study.
Company profile

Target market: Consumers searching for convenient and premium frozen food items are
McCain's target market. The business sells a variety of goods to both retail and foodservice
consumers, such as meals, appetizers, and French fries. McCain focuses on offering goods that
satisfy the demands of time-pressed consumers looking for quick and simple meal alternatives.

Competitive advantages/gaps: If we look at the differences between McCain Food Company

and its rivals, the main differences are in the products that each firm produces, their marketing
approaches, and the product lines that they sell. Manufacturers of snacks, Rambo and Herr are
industry leaders. With McCain Company as their main rival, a significant product variety
disparity is evident (Christian & Gereffi, 2010). In well as serving a variety of different foods,
McCain Food also sells frozen fruits and vegetables, frozen pizza, and juices. McCain benefits
from being able to provide a wider range of products than its rivals. The other two rivals, Lamb
Weston and Farm Frites, both make potato goods, making them major rivals of the McCain food
industry. For these rivals, the biggest weakness is in the client satisfaction and operational
channels. These businesses all have their corporate headquarters in the US and are actively active
in a number of other nations. Nonetheless, the confidence that its customers have shown in the
McCain Food Company has greatly assisted in the company's growth. Nonetheless, the business
struggles when working with diverse work cultures (Gentiletti, 2012).

Existing expansion outside of Canada:

Year Company Expansion plan

1980 Toronto, Ontario Frozen beverages

1988 Othello, Washington Potato processor

1994 Balarce, Argentina Potato processing

1996 New Zealand Expansion plan

2001 South Africa Expansion deal

2004 China French fry processing

Country profile
West African region contains the nation of Liberia, with a population of almost 5 million and a
total land area of 111,369 square kilometers. Monrovia, the nation's largest city and its economic
center, serves as the nation's capital. The lush rainforest in Liberia is home to a diverse range of
plant and animal species. Rubber, cocoa, coffee, and palm oil are the primary crops products,
while mining is also a significant component of the nation's economy. The nation also has a
wealth of natural resources (Andrews, 2015). Prior to the civil war, Liberia had been on the
continental of Africa's leading producers of iron ore.

Market size and growth: Liberia is a rather tiny market in terms of size. The Gross Domestic
Product (GDP) of Liberia is predicted by the World Bank to reach $3.3 billion in 2020. The
COVID-19 pandemic has had a significant negative impact on the nation's economy, with a
projected 3.7% GDP reduction in 2020. Liberia has, nevertheless, seen modest economic
progress recently (Sohoulande et al., 2017). The GDP of Liberia increased by 2.5% year on
average between 2016 and 2019 (GDP growth (annual%) - Liberia).

Major competitors: Small and medium-sized firms predominate in Liberia's food sector, with
local manufacturers and distributors accounting for a sizeable percentage of the market. The food
sector in Liberia is also served by a few foreign firms, such as multinational businesses that
create and sell packaged foods and drinks. These businesses might pose a threat to McCain Food
Company in Liberia. The Food and Enterprise Development Program (FED) helped improve
Liberia's food production by establishing economic incentives that compelled local stakeholders
to embrace a commercial strategy (Liberia-Food and Enterprise Development Program (FED)).
This improvement included enhanced availability of food, utilization, and accessibility.

Recommendation:

● Opening a farm for potato fields in Liberia is one strategy to break into the market there.

Liberia has a long history of agriculture; therefore this might be a wonderful idea.
 Moreover, due to a lack of available potato fields, the corporation will not be able to
satisfy demand for potatoes in the upcoming years. Liberia may be a viable alternative for
the corporation, as it planned to establish fresh areas there (Wesseh & Zoumara, 2012).

● If the McCain Company planned to sell its goods in Liberia. The business should

concentrate on how to sell its goods. The societal and cultural values of Liberia might
serve as guidance in this. Also, working with the neighborhood shop will assist McCain
Food join the Liberian market?

Implications and risks

Marketing implications:
● Graphics and messaging in ads: While developing marketing materials, the corporation

should take into account the cultural and religious sensibilities of the Liberian populace.
In a nation with a large Muslim population, for instance, it might not be permissible to
include pictures of alcohol or meat.

● Packaging and labels: As Liberian legislation may be different from those in other

nations where McCain conducts business, the firm should make sure that all of its
packaging and labeling complies with Liberian laws (Blaney, 2010).

● Pricing: While deciding on pricing structures in Liberia, the corporation should take

local market circumstances and competition into account.

Operation implications:
● Employing expatriate or local managers to oversee operations in Liberia is a decision the

firm should make. The corporation could gain a better understanding of the local market,
culture, and laws by hiring local management (Traill et al.,2014).

● The business should seriously reconsider all available entrance strategies into the

Liberian market, particularly foreign direct investment (FDI), joint ventures, licensing,
and franchises. The business should select the entrance method that best fits its objectives
and available resources because each one has unique benefits and hazards.
Risks:
● Political unrest: Liberia has previously suffered both political unrest and civil conflict.

The business should keep a close eye on the political landscape and take the necessary
precautions to reduce the dangers brought on by political unrest.

● Infrastructure: Liberia's infrastructure is undeveloped and includes things like roads,

ports, and power. To maintain efficient processes, the corporation might need to make
investments in infrastructure improvement.

● Corruption: In Liberia, corruption is a prevalent problem. To stop unethical business

activities and avoid fraud, the corporation should have strict anti-corruption rules and
processes.

Recommendation

McCain sees chances in Liberia because of the country's expanding economy, hospitable
business climate, and potential for frozen food product need. Yet, there are other difficulties that
might endanger the company's operations, including a lack of infrastructure, political
unpredictability, and cultural disparities. McCain will have to carefully consider these elements.

It is advised that McCain join the Liberian market carefully in light of the study of secondary
data. Although while the country's political situation is largely stable and its economic situation
is improving, there are still obstacles to overcome, such as gaps in the infrastructure and the
existence of black markets. Yet, the frozen food industry in the nation has enormous potential,
and McCain's well-known brand and high-quality goods might provide it a competitive edge.
Ultimately, entering the Liberian market necessitates careful evaluation of the hazards and
prospective rewards, but the chance to gain ground in a developing market shouldn't be passed
over. And create the necessary plans to reduce risks and take advantage of possibilities.
References
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● Gentiletti, A. (2012). Design and optimization of global distribution supply chain at

McCain Foods. Dspace.mit.edu. https://dspace.mit.edu/handle/1721.1/73383

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Global Perspective. Contemporary Endocrinology, 717–730.

https://doi.org/10.1007/978-3-319-68192-4_41

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Potatoes Varieties. https://wmgroup.org.au/sites/default/files/docs/NVAP%20-%20Case

%20Study%20Market%20Analysis%20for%20Potatoes.pdf

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Process of Peace, Security, and Justice. PRISM, 1(2), 101–110.

https://www.jstor.org/stable/26469044

● Traill, W. B., Mazzocchi, M., Shankar, B., & Hallam, D. (2014). Importance of government

policies and other influences in transforming global diets. Nutrition Reviews, 72(9), 591–

604. https://doi.org/10.1111/nure.12134
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Causality and Cointegration Analysis.

http://t.www.na-businesspress.com/JMPP/AndrewsAP_Web16_3_.pdf

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Agricultural Assets, Incomes and Food Security of Rural Households in Ghana, Senegal

and Liberia. Agriculture, 7(5), 38. https://doi.org/10.3390/agriculture7050038

● ‌Wesseh, P. K., & Zoumara, B. (2012). Causal independence between energy

consumption and economic growth in Liberia: Evidence from a non-parametric

bootstrapped causality test. Energy Policy, 50, 518–527.

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