McCafe
Class Activity- Unit 9
Case Study: McCafe
The popular McDonald’s corporation has decided to branch out through the creation of McCafe, which is a coffee-house-style food and drink chain, recording 15 % more revenue than that of a regular McDonalds. The McCafe outlets focus on providing consumers with unique products that differ from that of the traditional McDonald’s menu, together with a contemporary store design. With these new chain outlets spread worldwide, gaining immense popularity, McCafe has also strategically decided to create their own brand of coffee and smoothie mixes, for the consumers’ household and personal use.
Your marketing team has been requested to assist the company with the necessary insight into how the business can successfully branch out into the South African market, through the use of appropriate marketing channels.
Your marketing team should also help them with price setting of their new muffin range, with specific focus on the truly South-African product, the Billie-McMuffin, a biltong and feta, mega muffin.
Answer the following questions:
1. Suggest how McCafe can make use of channel partnerships in order to successfully branch out into the South African market by specifying who McCafe can partner with. Motivate your answer.
(3 marks)
2. How can McCafe implement m-commerce into their marketing strategy, in order to boost sales and increase customer loyalty?
(3 marks)
3. Considering that McCafe is releasing its own brand of coffee and smoothie mixes, which channel alternatives would you recommend for McCafe to consider? Motivate your answer.
(6 marks)
4. Set the price for the new Billie-McMuffin by following the 6 steps of setting a price. Justify your choice by referring to how your team experience the current market. (18 marks)
Case Study: McCafe
The popular McDonald’s corporation has decided to branch out through the creation of McCafe, which is a coffee-house-style food and drink chain, recording 15 % more revenue than that of a regular McDonalds. The McCafe outlets focus on providing consumers with unique products that differ from that of the traditional McDonald’s menu, together with a contemporary store design. With these new chain outlets spread worldwide, gaining immense popularity, McCafe has also strategically decided to create their own brand of coffee and smoothie mixes, for the consumers’ household and personal use.
Your marketing team has been requested to assist the company with the necessary insight into how the business can successfully branch out into the South African market, through the use of appropriate marketing channels.
Your marketing team should also help them with price setting of their new muffin range, with specific focus on the truly South-African product, the Billie-McMuffin, a biltong and feta, mega muffin.
Answer the following questions:
1. Suggest how McCafe can make use of channel partnerships in order to successfully branch out into the South African market by specifying who McCafe can partner with. Motivate your answer.
(3 marks)
2. How can McCafe implement m-commerce into their marketing strategy, in order to boost sales and increase customer loyalty?
(3 marks)
3. Considering that McCafe is releasing its own brand of coffee and smoothie mixes, which channel alternatives would you recommend for McCafe to consider? Motivate your answer.
(6 marks)
4. Set the price for the new Billie-McMuffin by following the 6 steps of setting a price. Justify your choice by referring to how your team experience the current market. (18 marks)