Mcdonald's Canada Persuasive Essay
SGMT 3000 SECTION B
Case Assignment #1
McDonald's and the McCafé Coffee Initiative
To: Mr. Ralph Sgro
Re: The McCafé Initiative in Canada
Looking at McDonald's Canada from a resource-based view (please refer to the appendix), I believe that McCafé will succeed in Canada.
McDonald's has a plethora of valuable resources in its disposal. Among them, arguably the most important is brand equity. The "Golden Arches" are instantly recognizable to just about everyone in the planet, and that level of brand awareness will play a big part in McCafé's entry to Canada. Furthermore, McDonald's, being a major player in the fast-food industry in Canada, has a considerable amount of cash and infrastructure. This ensures that McDonald's …show more content…
Although McDonald's will initially make no revenue from the coffee, it will give Canadian coffee consumers a convincing incentive to try it out and potentially "switch sides". With the large number of store locations that McDonald's has in Canada already, the free coffee will see wide-scale distribution, meaning that a large percentage of the nation's population will be able to taste the coffee and judge it accordingly. Marketing this campaign is absolutely essential to its success. McDonald's has used television advertisements to great effect in the past, and it should be no different for this campaign. Word-of-mouth communication will inevitably take place and more people will get a chance to taste the coffee. With all that being said, McDonald's must implement measures to prevent customers from taking advantage of the free coffee. For example, it can limit the free coffee to the small cup size and implement a one-cup-per-customer rule. Furthermore, McDonald's must set a precise time period for the campaign. Customers shouldn't come into McDonald's expecting free coffee after the campaign is over. Proper use of McDonald's brand equity, cash and infrastructure is the key to the success of McCafé in Canada.
Although the McDonald's brand is well known, it is important to note that the McCafé brand is just beginning to grow in Canada. For this reason, I recommend that all McCafé locations start off as extensions of existing McDonald's restaurants rather than stand-alone restaurants. Once the McCafé brand becomes popular enough in its own right (likely after the free coffee campaign mentioned in the paragraph above), stand-alone McCafés can be established. As of right now, taking the stand-alone route is much too
Case Assignment #1
McDonald's and the McCafé Coffee Initiative
To: Mr. Ralph Sgro
Re: The McCafé Initiative in Canada
Looking at McDonald's Canada from a resource-based view (please refer to the appendix), I believe that McCafé will succeed in Canada.
McDonald's has a plethora of valuable resources in its disposal. Among them, arguably the most important is brand equity. The "Golden Arches" are instantly recognizable to just about everyone in the planet, and that level of brand awareness will play a big part in McCafé's entry to Canada. Furthermore, McDonald's, being a major player in the fast-food industry in Canada, has a considerable amount of cash and infrastructure. This ensures that McDonald's …show more content…
Although McDonald's will initially make no revenue from the coffee, it will give Canadian coffee consumers a convincing incentive to try it out and potentially "switch sides". With the large number of store locations that McDonald's has in Canada already, the free coffee will see wide-scale distribution, meaning that a large percentage of the nation's population will be able to taste the coffee and judge it accordingly. Marketing this campaign is absolutely essential to its success. McDonald's has used television advertisements to great effect in the past, and it should be no different for this campaign. Word-of-mouth communication will inevitably take place and more people will get a chance to taste the coffee. With all that being said, McDonald's must implement measures to prevent customers from taking advantage of the free coffee. For example, it can limit the free coffee to the small cup size and implement a one-cup-per-customer rule. Furthermore, McDonald's must set a precise time period for the campaign. Customers shouldn't come into McDonald's expecting free coffee after the campaign is over. Proper use of McDonald's brand equity, cash and infrastructure is the key to the success of McCafé in Canada.
Although the McDonald's brand is well known, it is important to note that the McCafé brand is just beginning to grow in Canada. For this reason, I recommend that all McCafé locations start off as extensions of existing McDonald's restaurants rather than stand-alone restaurants. Once the McCafé brand becomes popular enough in its own right (likely after the free coffee campaign mentioned in the paragraph above), stand-alone McCafés can be established. As of right now, taking the stand-alone route is much too