Mcdonalds Mccafe Marketing Research

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Yahweh Matuguinas
ID # 1774747
MGMT 131 Marketing - SD61
Describing and Analyzing an Organization’s Marketing Strategy – McCafé

Table of Contents
1. Introduction3
2. Situation Analysis4
2.1Internal Environment4
2.1.1 Financial4
Exhibit 1. McDonald's Net Income for 6 Years4
2.1.2Physical Assets5
Exhibit 2. McDonald's Corp., Statement of Financial Position, Property, Plant and Equipment5
2.1.3 Human Resources5
2.1.4Intellectual Property Rights6
2.2 External Environment6
2.2.1Demographic Segmentation6
2.2.2Economic Factors and Competitors6
2.3 SWOT7
3. Target Market8
4. Position9
5. Marketing Mix10
5.1 Product10
5.1.1 Product Mix10
5.1.2Three-Level Model10
5.1.3Packaging11
5.1.4Branding11
5.1.5 Product Life-Cycle11
5.2 Distribution Planning12
5.2.1 Physical and Transactional Distribution12
Exhibit 3. Distribution Channel for McCafe12
5.2.2 Intensity of Distribution12
5.3 Promotion13
Exhibit 4. McCafe Advertisements and Promotions13
5.4 Price14
Exhibit 5. Hot Beverage Prices: McCafé vs. Starbucks14
6. References16

1. Introduction
McDonald’s Corporation (MDC) is one of the best-known fast food restaurants worldwide and it is serving millions of customers each day. On an average day, more than 68 million people eat at one of the company's more than 33,000 restaurants, which are located in 119 countries on six continents (McDonald's). About 9,000 of the restaurants are company owned and operated; the remainder are run either by franchisees or through joint ventures with local business people (Tucker) With its brand mission, “to be our customers' favorite place and way to eat”, the company launched its new McCafé brand in Canada, a new line of brewed coffee and espresso-based beverages, as well as a so-called restaurant “re-imaging” that creates a defined in-restaurant space for McCafé (Powell) . With the customer’s choice of two per cent or skimmed milk, MDC offers a variety of hot drinks including Espresso, Americano, Cappuccino, Latte, Mocha, and Hot Chocolate; and cold drinks like, Iced Mocha and Iced Latte. Senior vice-president and chief marketing officer, Joel Yashinsky, stated that McCafé represents one of the biggest product launches in MDC history, surpassing that of both breakfast and pizza (Powell). MDC also showed its competitiveness in the market after launching McCafé less than a week after Tim Horton’s similar espresso launch announcement (Craik). Since coffee is the nature of McCafé, the target market will be focused on the luxury coffee crowd (Coleman, Gao and Kim). Young adults and adults in the working population can be possible target markets (Huang).

2. Situation Analysis
McDonald's (MDC) is the world’s largest fast food restaurant chain, known for its world famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets, and Happy Meal. It opened in Canada as its first foreign country franchise in 1967 (FinCad). The company is known for its cheap, quick and unhealthy product. A study of Coleman, Gao, and Kim states that the fast food giant tried to change its image by adding healthier items like salads and wraps (Coleman, Gao and Kim). To be able to succeed in its marketing strategies, MDC makes sure that the internal and external factors that affect the company are not taken for granted. Some of the important features of the organization are its financial, physical assets, human resources, and intellectual property rights. 2.1Internal Environment

2.1.1 Financial
Exhibit 1. McDonald's Net Income for 6 Years

Even though there was a 32% drop in the company`s net income in 2007, a study of Coleman, Gao, and Kim states that estimated total revenue within the fast-food world market in 2007 was $120 billion, with MDC leading with a 19% market share over major competitors such as Doctor’s Associates, Inc. (Subway) and Burger King (Coleman, Gao and Kim). 2.1.2Physical Assets

Exhibit 2. McDonald's Corp.,...
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