Fan Li
Outline
●Situation Analysis
○What is McCafé : 5Cs and 4Ps
○Problems
●Comprehensive Solution
○Qualitative Analysis:
■BCG Matrix, Marketing strategy, Positioning Map, and Brand
Extension
○Quantitative Analysis
■Pricing Strategy
■Break-even Analysis
●Conclusion: Recommendations and Limitations
●Questions and Answers
Outline
●Situation Analysis
○What is McCafé : 5Cs and 4Ps
○Problems
●Comprehensive Solution
○Qualitative Analysis:
■BCG Matrix, Marketing strategy, Positioning Map, and Brand
Extension
○Quantitative Analysis
■Pricing Strategy
■Break-even Analysis
●Conclusion: Recommendations and Limitations
●Questions and Answers
What is McCafé: Brand Extension of McDonalds
Promotion
Placement
Price
Product
The 4Ps: Places
Figure 1. The Chain Stores Distribution Density in the U.S. (2017)
The 4Ps: Promotion
Figure 2. Comparison of McDonalds and Starbucks Promotion Expense
Note that:
McCafé’s promotion is
only a part of
McDonalds as a whole.
The 4Ps: Promotion
51.2% Customers seldom (or never) see
McCafé’s advertisement
The 4Ps: Price and Product
Roast Coffee
Cappuccino
Mocha Frappé
Iced Coffee
Iced Caramel Macchiato Smoothie
Small
$1
Medium
$1.29
Large
$1.49
Small
$1.39
Medium
$1.79
Large
$1.99
Small
$2.39
Medium
$2.89
Large
$3.39
Consumers and STP
High price
Low price
High qualityLow quality
Competitors
Competitors
In what segments
of the market share
is there room for
growth?
What can McCafé
do differently?
Others
33% 67%
Of Starbucks
market share in
domestic coffee
market
1
.
2.
Outline
●Situation Analysis
○What is McCafé : 5Cs and 4Ps
○Problems
●Comprehensive Solution
○Qualitative Analysis:
