Customer Behavior

Topics: Coffee, Starbucks, McDonald's Pages: 31 (6247 words) Published: October 26, 2010
Consumer Behaviour (MKT 3603)
Consumer Behaviour Analysis of McCafe

Table of Content

Executive Summary3
Company background5
McDonald’s Corp. (NYSE: MCD)5
Industry Background6
Direct Competitors7
Starbucks Corp. (SBUX)7
Pacific Coffee8
Competitor Analysis9
Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis of Mccafe10 Research Topic -Customer attitude towards McCafe11
Problems from Research Finding11
McCafe image issue11
Too many inertia consumers11
Customer Profile12
Individual Consumer12
Need Analysis for Mccafe’s Customer12
Utilitarian needs VS Hedonic needs13
Environmental influence in Decision Making17
Marketing Positioning21
Targeting Customer22
Marketing Mix Strategies23
Table: Populution Ages 15 and Over by Education Attainment, 1996 , 2001 and 200635 Table : Working Population by Occupation. 1996, 2001 and 200635 Table: Working Population by Occupation and monthly Income from main employment, 200636 Table: Domestic Households by Monthly Domestic Household Income, 1996, 2001 and 200636 References37

Executive Summary

Diversification makes sense for the fast-food company, given that growth is clearly slowing for its core McDonald's franchise. The company can tackle the upscale coffee market, McCafe has been established recent years in Hong Kong to capture a new customer base.

McCafe is the new entry of coffee market and it is obvious most of the public think that McCafe is relatively cheap brand compare to its direct competitors in Hong Kong.

After evaluating the company by using SWOT analysis and the customer opinions on the marketing research conducted. It reveals some of problem of the business:

Problem recognition
1. Dissatisfaction with a current product or service (food and drink quality) 2. Consumer needs and wants dissonance (image mis-match)

Therefore, it proposes to improve the above areas by following marketing strategies to achieve the business objectives: 1.
In the twenty-first century, understand consumer behaviour has become increasingly critical in today’s marketplace, because it provides companies a way to establish and maintain brand relationships with variety of customers, as well as other stockholders, such as distributors and suppliers.

In this paper, it will study of the business of McCafe - McDonald, how could the company effectively use Consumer behaviour Analysis to enhance its business performance and do further expansion.

It means that it will focus on understand customer needs and wants, integrate and implement some marketing strategies and programs to develop its products or brand based on consumer behaviour. The plan which includes a detailed situation analysis (“SWOT”), specific objectives, selections of a target market and plans for marketing mix, as well as identify Mccafe’s direct competitors to evaluate the whole business.

Company background

McDonald’s Corp. (NYSE: MCD)

Scope of Business

Mccafe engages in coffee retail service worldwide. It offers brewed coffees, Western-style beverages, milk based special drink, cold blended beverages, various complementary food items, a selection of fruit based premium teas, through its retail stores. Mccafe operated almost fifty retail stores in Hong Kong.

McCafe is Sub-brand of McDonald Corporation.
McDonald together with its subsidiaries franchises and operates McDonald's restaurants worldwide. Its restaurants offer various food items, and soft drinks and other beverages. The company also has a minority ownership interest in the U.K.-based Pret A Manger. As of December 31, 2007, McDonald's Corporation operated 31,377 restaurants in 118 countries, of which 20,505 were operated by franchisees; 3,966 were...
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