...want to introduce the challenge of Mccafe.There are three main challenges faced by Mccafe. 1. In 2008, due to the great depression, many people switched to buy coffee in Mccafe because of the lower price. And now, Starbucks is now increasing in popularity in Hong Kong; this shows that people concern more about the quality and environment. Therefore, people may switch back to buy coffee in starbucks. Also, Mccafe does not have clear target market; this may affect its competitiveness. Mccafe does not have much strength that can compete with starbucks. The first challenge is that how to compete and survive in this coffee market. 2. The second challenge is the unclear positioning. Mccafe in Hong Kong open next to the McDonalds. People who buy food from McDonalds can sit the area of Mccafe while others who buy coffee from Mccafe cannot find a seat so they cannot enjoy the better environment. Therefore, is it worthwhile for people to buy a cup of coffee which values $22? Some people may think that they spend $10 more but can enjoy better service and environment in starbucks. Does Mccafe need to be separated from McDonalds? 3. The final challenge is the brand image of Mccafe associated with McDonalds. In Hong Kong, Mccafe opened next to McDonalds. It is easy for people to think that the brand image of Mccafe is associated with fast food which may get away some customers.Therefore, Mccafe should build a health image so as to attract more...
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...changes to their menu since its opening in 1940. Adapting to the consumers demands delivering high quality products to maintain a presence in a competitive market. The McCafe campaign intents to target the young generation and adults by offering coffee products for a fraction of the price that Starbucks does. The purpose of this paper is to discuss the impact of the campaign on the internal and external stakeholders. It will identify the stakeholders’ needs specific to each category and it will finally provide recommendations to the existing campaign. Internal and External Stakeholders McDonald’s is a company “committed to providing choices, assuring quality and safety, delivering great taste, and sourcing in an ethical manner” (McDonalds, 2008). The main goal of the company is to earn the public’s trust. Every change or addition McDonald’s makes to its menu has an impact on its stakeholders. The company works with internal and external stakeholders to equilibrate a difficult set of social, ethical and ecological considerations. The stakeholders have a vested interest in the organization. The internal stakeholders are directly affected by the company’s stability and wages. The external stakeholders are a proactive part of the company but not employed in a direct way by it. In the big scope of things the McCafe campaign will add a new image to the existent one. The campaign does not impact all of the stakeholders in the same way. It represents an opportunity for suppliers...
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...Starbucks Hong Kong Hong Kong Starbucks is my all time favorite. It is actually not a totally Hong Kong western franchised restaurant. It is run by a big Hong Kong restaurant chain, Maxim. They don't have any Chinese fusion coffee or snacks. They do have some great bakery goodies that you can't find in any Starbucks in U.S. Perry always makes sure that I have their spinach quiche (it's actually a pie, more than a quiche 'cos no egg is added) when we are there. They always warm it up in the oven and bring it over to your table. They also have seasonal specials. If you happen to enjoy their coffee in the store like I do, you may get a free sampler. It doesn't happen frequently. But I did have a very good experience one year of trying a white chocolate coffee sampler before Christmas time in the one close to the Tsim Sha Tsui Star Ferry station. Most Starbucks in Hong Kong have big comfy sofas. You rarely find one without. My best friend, Elaine, loves to go to those where you can enjoy the Hong Kong Victoria Harbor view (coming soon link to Junk Boat ride page). If you are lucky enough to get a table next to the window, from my point of view, that is one of the most enjoyable moments in life. You can find the Hong Kong Starbucks with harbour view in World Trade Centre, near Ocean Terminal and Harbour City. The Starbucks in Prince Building has a very peaceful atmosphere. During Chinese New Year, many companies in Hong Kong give out red pocket envelopes for free...
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...McDonald's McCafé Takes Aim at Starbucks in Europe Low-cost expansion is helping McDonald's vie with Starbucks as the Continent's No. 1 coffee chain McDonald's Trafani in a Paris McCafé, where lower prices are helping to nab Starbucks loyalists Ed Alcock PARIS — The Left Bank café is furnished with sleek wood paneling and leather armchairs. Patrons sip espresso from china cups and nibble on croissants and pastries. So what are those golden arches doing on the sign outside the door? The coffee shop on rue Linois is one of 200 "McCafés" McDonald's is opening in Europe this year. By yearend, McDonald's (MCD) hopes to have some 1,100 of the cafés across Europe. The cafés are located inside existing restaurants but with a separate counter, comfy furnishings, and nary a Big Mac in sight. Next year, the company plans 200 more, with an eye toward becoming "the No. 1 coffee seller in Europe," says Jerome Tafani, the company's chief financial officer for the region. That's a grande order. Starbucks (SBUX) is currently Europe's top coffee chain with nearly 1,200 stores. But McDonald's strategy of opening McCafés in existing franchises gives it a leg up over the Seattle-based java king. A stand-alone Starbucks in Europe requires an investment of $350,000-plus, at least triple what a McCafé costs, says Jeffrey Young, managing director of London management consultancy Allegra Strategies. "McDonald's finally woke up and smelled the coffee," says Young. "With the number of outlets...
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...When launching the McCafe line of beverages there are a few areas that are needed to help the product succeed the way the company needs it to so that it generate sufficient revenue from the enterprise as well coupled with it also being attractive to current and new consumers. One of the most important area of helping the McCafe launch appropriately would be the advertising effort that is put into it. This is a huge portion as there will likely be millions of dollars put into its advertising outlets. The advertising can be implemented on billboards on the highways and freeways across the nation coupled with having automated messages at drive through explaining the new McCafe lines in hopes to intrigue the customers into buying them. Also advertisements on bus stops, the bus itself as well as subways would assist greatly in terms of getting the new product name out there. With regard to digital marketing, there are also plenty clever ways to get the McCafe seen to the public so that they may be interested to try it next time the visit a McDonald’s location. For, example the target audience must be identified first so being able to identify the places they may visit most would be a great place to launch ads for the new products; it’s all about basically understanding consumer behavior, both purchasing and where they like to visit on the internet can prove a tremendous benefit. Other forms that could assist in the launching of the McCafe, could be emails coupled with television and...
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...Staying ahead in a competitive environment: A McDonald's Restaurants case study For businesses to understand adequately the nature of the competition they face, they must define their market accurately. This involves recognising a broad base of competitors. McDonald's has thousands of competitors, each seeking a share of the market. McDonald's recognises that it is up against not only other large burger and chicken chains but also independently owned fish and chips shops and other eat-in or take-out establishments. A company like McDonald's therefore, has to develop competitive strategies that differentiate it from its rivals. All organisations need to be in touch with their business environment in order to make sure that what they do fits with customer expectations. These expectations change over time. Moreover, the IEO market in which McDonald's operates is becoming increasingly competitive, as the chart below illustrates. Recently, in this crowded market place, McDonald's competitive lead came under pressure largely because many fast food outlets have either: • copied the trail-blazing ideas that previously set McDonald's apart and put it ahead of the field • promoted new ideas of their own e.g. urban supermarkets and petrol stations that sell convenient, portable mealtime replacements. McDonald's recognises the need to respond. It is looking to increase the competitive gap by: • adding greater value through innovation • making the process of visiting a McDonald's...
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...different bases. 1) Demographics segmentation: Mainly for kids , family, students , café goers and working adults McDonalds offer many different types of products like the world famous happy meal which is typically a form of kids meal which was marketed towards children since 1979. It includes a toy with the food, both of which are usually contained in a box or paper bag with the McDonald's logo. For families they also have many different types of family meals for special occasions, parents may also purchase a family meal instead of ordering individually. In various countries McDonalds also has student’s meals which makes it more affordable for students . Students also tend to hang out at McDonalds to study. For café goers they have mccafe which has a quieter ambience, a place to relax or even for business entertainments. For working adults they seek fast and convenience meals ‘grab and go’ which McDonalds also cater to such as drive-thru, takeaways and mcdelivery 2) Psychographic segmentation Macdonald has adopted its marketing strategy according to the lifestyle of consumers around the world. An example would be as to accommodate the trend for high quality coffee, McDonalds’s Australia first introduced...
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...11/20/2015 Marketing Channel MAR 4203 Raquel Eskenazi 3997201 Michael Perera 3004721 Mauricio Etienne 4932817 Antonio Kiriakov 5361314 Kevin Hodgeson 3964446 Andres Lacayo 3342194 1. Is McDonald’s trade-up strategy to the McCafe line of premium coffee products a good deal for the franchisees? Why or why not? The McDonald’s strategic initiative to bring full range of coffee products into its franchisees to all its US stores, created large amount of excitement to the restaurant industry and the press as well. Bringing new line of coffee products would mean direct competition with the primarily competitors; Starbucks and Dunkin Donuts. In reality what really mattered to all those 14,000 franchisees was whether the new line of premium coffee products would be a good thing for them. Either winning or losing from the franchisers point of view was all about whether the new McCafe product trade-up strategy would bring more sales and profits to their stores. Even though there is a lot of talk in the press and it has been largely discussed by store owner, I believe that McDonalds trade-up strategy would be successful. McDonalds is a brand that has been accepted by all Americans, furthermore it is brand that is mostly visited by the Middle Class of people. Furthermore the expectations are that McCaffee premium coffee products would add an average of $125,000 in additional revenue per store; the premium coffee products will also attract more off-peak customers. Other than...
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...McDonald's vision McDonald's vision is to become its customers’ favourite place and way to eat and drink McDonald's Missions to grow market share by achieving its three global priorities. 1. Optimising menu: Maintain popular core products and continually introducing new innovative localised products Differentiating its brand, for example, as a beverage destination by growing McCafe Develop healthy and balanced meal options to enhance its food image and to satisfy customers’ needs 2. Modernising our customer experience: Achieving operational excellence through technological innovation Reimaging shop look by remodelling restaurants with new designs 3. Broadening accessibility: Making it more available in the term of price, location and operation hours. To strengthening brand recognition by going over economic performance and pursuing commitment to sustainable business practices of all aspects of business and community Be the best employer for our people in each community around the world * Deliver operational excellence to our customers...
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...No matter what country you go on holidays to today, you will always see the famous McDonald’s sign somewhere close by. The brand is so popular that when people see the logo they instantly know that it represents McDonald’s. Over the years McDonald’s have introduced many changes to their menu and their advertising. They also make a point of being big supporters to children charities and they also opened their own charity which is dedicated to supporting families of sick children. They supply leaflets in their restaurants telling customers about this charity and what they have done for it. When advertising their brand in Ireland they seem to focus on the eurosaver menu which if you think about it is probably one of the most important sections of their menu. Advertising is varied in different countries. Along with serving quick on the go meals such as chips and hamburgers, they also serve a breakfast menu which is served everyday to 10:30am. The McDonald’s franchise is estimated to serve around 64 million customers daily in over 117 countries. In the report released last year by McDonald’s Annual Report (2010) they stated that there are now 32,737 restaurants opened around the world. About 80% of these are franchisees, the rest are run directly by the company itself. In 2010, revenues grew 5% ending in operating income of $7.5 billion. In 1940 Dick & Maurice McDonald decided to set up the first restaurant in San Bernardino, California. The “Speedee service...
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...Executive Summary In this report, there will be a few aspects that will be elaborated in detail in conjunction with the company that I have chosen which is the Starbucks company. We will study the environmental analysis of Starbucks Company as well as the customer and competitor analysis. On top of that, we will also analyze the company’s industry analysis which includes the Porter Five Forces, PESTLE analysis and SWOT analysis to study the company’s position in the industry. Furthermore, this report will discuss the marketing objectives and marketing strategies of Starbucks Company and how the company uses the marketing plan to promote the company’s new product in order to grow their business. In the last part of this report, the company’s budgeting will be shown and the evaluation of control and mechanism will be clearly explained. Objectives The company’s objective is to establish Starbucks as the most recognized and respected brand in the world by providing and offering the best quality of coffee to a wide range of customers (Fellner, 2008). Mission The company’s mission is to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Starbucks also wants to establish their brand as the premier and the finest coffee in the world while maintaining their uncompromising principles as they expand. On top of that, the company is passionate about ethically sourcing the finest coffee beans to improve the lives of people who grow them (Starbucks...
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...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
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...Front Counter- Make sure that all condiments, cups and desert cups and lids are stocked including (oatmeal, water, apple juice, milk, jelly, etc.), empty trash, wipe down coffee brewer, shake machine, flurry machine and creamer dispenser, sweep and mop. Presenter- Stock all condiments, cups, lids and bags. Make sure ice bin is full and frappe machine also has ice. Wipe down abs, sweep, mop and empty trash. HD1 and HD2- Stock all spoons, water, milk, juice, mccafe cups and lids. Make sure there is an ample amount of cream cheese, whip cream and orange juice. Wipe down mccafe machine, creamer dispenser and juice dispenser. Sweep, mop and empty trash. Fries- Make sure the fry boxes and hash brown bags are stocked. Clean inside of fry station to make sure there are no old fries under or around boxes. Keep mirror on fry station clean and free of grease, keep fryers skimmed and wiped down. Ensure there are enough fries (4 boxes) for next shift. Sweep and mop. Table 1 and 2- Make sure that table is stocked and timed. Ensure there is enough backup for the next shift. Keep table wiped down and boxes, wraps, etc. are neat. Nothing is to be left on top of cabinet. Sweep and mop. Grill- Make sure grill is clean and wiped down. There should be no grease that is visible on the clam shells or on fried product area. Ensure there is enough Bacon, chicken and meat for the next shift. Also, all utensils are to be washed every 4 hours. Sweep, mop and empty trash. Backdrive- Keep salad dressings...
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...restaurants, and create new products that meet the changing needs of its customers. This strategy works towards increasing sales and guests counts while optimizing operations to increase profitability. Much of McDonald’s strategy involves promoting new and classic menu items such as the Big Mac, McCafé and Snack Wraps while delivering the best food experience possible. The company also feels that it can grow sales with maintaining and expanding its dollar menu so that more affordable items are available. Furthermore, the company provides locally preferred menu items so that it doesn’t alienate itself from its communities (example: Restaurants in Hawaii offer pineapple instead of fries). Combined with convenient locations, optimized drive through service and longer store hours these factors should provide exceptional restaurant experiences. The company has also allocated $2.1B towards restaurant improvements for 2009 to modernize its operations. These funds are also to help continue its specialty coffee and beverage expansion. This investment is done with the expectation of serving more customers at a faster pace (including drive-thru) as well as being able to provide its new McCafé drinks and future specialty drinks. These improvements should add to customer experience and improve profit margins by taking less time to provide food and deliver the profitable specialty coffee drinks that have been proven very successful. McDonald’s also hopes to appeal to a larger customer...
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...Case Study : Starbucks- Going Global Fast. Question 1 Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. Answer: Starbucks have encountered various controllable elements while going global. Controllable elements in marketing is the 4Ps – Product, Pricing, Promotion and Place. Starbucks have localised product for different regions where Starbucks have expand its business to. Localised product means products are created to suit the taste and culture of a particular country or region. Example in the case study, Starbucks developed espresso and latte which is less sweet than US counterparts to match with Asian taste. Starbucks in Asian region also serves green tea latte to suit Asian habits of drinking tea, especially green tea. The next controllable element Starbucks encountered is the pricing factor. Since Starbucks is going global, Starbucks have to have a good pricing strategy to suit every market. Pricing strategy can be in various forms like bundle pricing or discounts and rebates. Pricing also determine the target customer of the business. Starbucks in this case does not compromise on the price. Starbucks are adopting high end pricing rather than competitive pricing. Starbucks is confident that the coffee they serve will certainly worth the price customers pay for. Therefore Starbucks never lower the price as doing so will reduce its brand value. Instead Starbucks continue with the same price and serve...
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