Download McDonalds is one of the most famous fast-food chains around

MASTERS OF BUSINESS ADMINISTRATION
BUSN 5000
Homework Week 4
Lecturer: Nilufar Khakimova
Student: Shakhzod Kakhorov
Tashkent – 2023
Question 1.
McCafe is regarded as one of the largest coffee shops around the world and
considered as direct competitor for Starbucks.
McCafe since its opening in 1993 has gained its own share from the coffee
shops market and designated its key segments of costumers. One of the main
costumers of McCafe is 18-35 years olds of every race and its customers at suburban
and regional outlets are primarily female, aged 25-39, many of whom have young
families. In addition, McCafe is targeting to such segments as students segment,
business people segment, tourist segment and train passenger segment. Student
segment consists people from 16 to 26 years old. Due to students age, most of them
are considered as lower-mid classes. Richer students are in semi-segment. Business
people segment includes men and women from 20 years old to 40 years old from the
middle-class. They are attracted to quick service, good quality product and
convenient locations. Tourist segment are most diversed segment. They are people
from different countries and cultures, but they purchase from McCafe because it’s a
pard of McDonald’s, so the brand name plays a huge role in their decision. Train
passenger segment is also highly diverse. There people from the different age and
background, but the thing that connects them all is coming to the train station early
or that they spend a lot of time on the roads so to not waste time they prefer to
consume products on their way. 1
In my opinion, there several reasons for people to choose McCafe, but I will
emphasise on 2 of them. McCafe for all of us is associated with McDonald’s and in
its turn McDonald’s is a trusted brand. Everybody know that their product is fine
and quick, and people should not search a random location to have a coffee. People
1
https://idoc.pub/queue/mccafe-marketing-plan-en5ky59w3xno
are already aware about quality of the product of this company’s. Secondly, its the
affordability. People from any class (low, middle, high) can afford to have a coffee
from McCafe. Despite the origin of the harvest of beans, high quality coffee always
was considered as an expensive drink and most of the people could only afford low
quality coffee, but the demand is still there. So, McCafe is oriented to supply the
general demand for coffee.
Strategy for product. As always, products of McCafe should be selected by
the demand of specific culture and country. In addition, McCafe must follow the
trends of tastes and technologies in making coffee. For instance, Starbucks claims to
have sold 200 million pumpkin-spice lattes since it introduced them about a decade
ago, so McDonald’s was counting on capturing a portion of that customer base.
Whether the company succeeded is unclear, but at least it tried by offering a 16-oz
latte at a relative bargain for $2.89, compared to the steeper Starbucks price tag of
around $4.55. The difference is that Starbucks invented this drink in 2003 and
McCafe implemented it in 20132
Strategy for price. In my opinion, the general policy of pricing is stable and
keeps the development of company. Doing research, I have found that there some
features McDonald’s is implementing, that McCafe could also add to their price
policy. So, some products McDonald’s selling for EDLP (Everyday Low Prices) and
McCafe should enlarge menu with ELDP. In addition, McDonald’s has implemented
store-level pricing - which means every store’s price will be slightly different from
the next. Guidelines and tactics are issued to each region3.
Strategy for place. McCafe has some crosses and differs from design of
McDonald’s. It depends on place, country and culture around which the restaurant
2
3
https://www.huffpost.com/entry/the-starbucks-or-mccafe-c_b_4262104.
https://taylorwells.com.au/mcdonalds-new-pricing-strategy/
is establishing. Also, in most cases serve in these restaurants is impeccable compared
to standard competitors restaurant. The strategy consists to keep this level and
comfortable atmosphere in each restaurant of McCafe, increasing standards and
monitoring on execution of “place” policy. For example, whenever a customer pulls
inside an outlet he/she is greeted with automated message informing of new and
special products of the day
Strategy for promotion. According to latest updates, McCafe has launched
advertisement campaigns on television, newspapers, billboards, Facebook, X and
YouTube to attract a larger consumer base4. Every restaurant has signed and
different posters letting know customers about new launched products to encourage
them try. Also, in some outlets the steps was taken on giving sales to customers, Its
called
Happy
hours
and
lasts
from
2
PM
to
5
PM.
Question 2.
As of today, people still connect McDonald’s with McCafe and think that they
are the same. Basically, knowing that McCafe has started from McDonald’s food
chain, both might look similar, but if people look from different angles they would
understand that they has profound differences and both of them are separate
companies living their own life. McCafe as its mother company, referring to
McDonald’s, established according to the main purpose of these restaurants,
precisely making food and drinks quick with good quality for affordable prices. This
idea of speed and affordability allows to brands to keep their customer base. So, one
4
https://www.marketing91.com/marketing-mixmccafe/#:~:text=Promotion%20in%20the%20Marketing%20Mix%20Of%20McCafe%20%3A,It%20takes%20hard&text=It%20has%20launched%20ad%20campaigns,special%20products%20of%20the%20day.
of the main missions of McCafe is to make quick and good quality products to
average consumers.
Also, the convenience of McCafe restaurants are on the same level with
McDonald’s despite the difference in design and colour selection. Every outlet is
filled with soft and clamp atmosphere. Serving personal finishes concrete courses
and preparations on how to serve a client and learn what’s the standards and values
of McCafe. It noteworthy, that the link between two restaurants can work not only
for growth, but for downgrade as well. So the price policies, design, technologies
and more importantly, main values and missions should be met by customer
immediately once they interact with restaurant, as if its going to be a phone call or
face to face meeting or entering to the territory of the restaurant. Once customers
feel the traditional atmosphere they will not want to loose it never. That’s how
McDonald’s work and that’s how McCafe’s road in achieving higher goals are
superimposed.