ID # 1774747
MGMT 131 Marketing - SD61
Describing and Analyzing an Organization’s Marketing Strategy – McCafé
Table of Contents
1. Introduction 3
2. Situation Analysis 4 2.1Internal Environment 4 2.1.1 Financial 4 Exhibit 1. McDonald's Net Income for 6 Years 4 2.1.2Physical Assets 5 Exhibit 2. McDonald's Corp., Statement of Financial Position, Property, Plant and Equipment 5 2.1.3 Human Resources 5 2.1.4Intellectual Property Rights 6 2.2 External Environment 6 2.2.1Demographic Segmentation 6 2.2.2Economic Factors and Competitors 6 2.3 SWOT 7
3. Target Market 8
4. Position 9
5. Marketing Mix 10 5.1 Product 10 5.1.1 Product Mix 10 5.1.2Three-Level Model 10 5.1.3Packaging 11 5.1.4Branding 11 5.1.5 Product Life-Cycle 11 5.2 Distribution Planning 12 5.2.1 Physical and Transactional Distribution 12 Exhibit 3. Distribution Channel for McCafe 12 5.2.2 Intensity of Distribution 12 5.3 Promotion 13 Exhibit 4. McCafe Advertisements and Promotions 13 5.4 Price 14 Exhibit 5. Hot Beverage Prices: McCafé vs. Starbucks 14
6. References 16
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,