4. BRAND EXTENSION Internationally, McCafs are housed within
McDonalds outlets but have a separate look and feel. These stores
are more bold and sophisticated as compared to the McDonalds
outlets The same format is being followed in India, where a McCaf
store typically occupies 500 sq. ft. of a 4,000 sq. ft. McDonalds
outlet Presently McCaf has 27 outlets in India in major cities like
Mumbai, Pune, Nasik and Ahmedabad It plans to expand aggressively
and open close to 250 stores in the next 3-5 years McCaf is able to
tap the advantage of McDonalds excellent store network and supply
chain HIGH QUALITY, INEXPENSIVE COFEE TARGET SEGMENT: more diverse
segment of the population that favors convenience, speed and lower
prices.
5. McCaf Commercial
6. Growth of organized Caf market in India The caf market
(organized sector) grew at a CAGR of 8.24% in the last 5 years
Within this market, the food segment, experienced a growth of 8.06%
while the drinks segment grew at a rate of 8.71% However, the
proportion of food in relation to drinks has declines over the
years Industry overview
7. Competitors reference group
8. Market share Caf Coffee Day (1.3%) Coffee Day Xpress (0.2%)
Costa Coffee (0.1%) Barista Coffee Co (0.1%) Others (98.3%) Caf
Coffee Day (1.3%) Coffee Day Xpress (0.2%) Costa Coffee (0.1%)
Barista Coffee Co (0.1%) Others (98.3%) 2013: Market size INR 17.6
Bn 2014: Market size INR 19.2 Bn Key observations: Stand alone cafs
and the unorganized sector constitutes majority of the market for
cafs and bars in India ~98% In the organized sector, Caf Coffee
Day, Barista and Costa Coffee together comprise 1.6% Starbucks and
McCaf are relatively new to the Indian market and occupy a very
small part of the market. With their rapid expansion, however, they
are slowly capturing the market with their USP Affordable
luxury
9. Market Segmentation - McCaf GEOGRAPHIC SEGMENTATION McCaf
has chosen to target urban cities in well-established countries
such as Australia, the US, Japan, China, Spain, India etc.
DEMOGRAPHIC SEGMENTATION Demographically, McCaf considers young
adults with relatively high disposable income and adults in the
working population. These consumers look for a laid-back
environment with comfortable surroundings, exquisite furnishings,
and an artistic ambiance in a coffee house. A major chunk (~40%) of
the TG is female, aged 25- 39. Many within this group have young
families. McCaf are designed to offer them a place to meet friends
and enjoy a quality coffee experience as well as keep the children
fed and entertained
10. Market Segmentation McCaf Smoothies Target young adults,
age 18 34 The person is a health conscious customer Customers are
starting to value a healthy lifestyle and fast foods are becoming
less attractive Interests - Nutrition Health conscience Active
living Keep it moving PSYCHOGRAPHICS TARGET
11. 4 Ps of Marketing - McCaf PRODUCT McCaf offers a wide range
of caf products Coffee, frapp, iced drinks, pastries and sweets,
cookies, cakes etc. Their offering range is at par with other cafs
in the consideration set (Starbucks, Costa, Barista etc.). The
product is high on quality and taste. PLACE McCaf, internationally
and in India are housed within a McDonalds outlet, where a separate
area is demarcated for the Caf. Because of this, it is able to make
use of McDonalds established network. However, even within the
traditional McDonalds store, McCaf offers a caf style environment.
The company aims to open at least 1 McCaf outlet within a radius of
2 kms.
12. 4 Ps of Marketing - McCaf PRICE McCaf offers value for
money coffee without compromising on the quality front. It is
priced 15-20% below its competitors. (Please refer to the offering
comparison between McCaf and Starbucks on slide [ ]) PROMOTION
McCaf is yet to promote itself more in India. Globally it promotes
the brand through coupons, premiums, advertisements on billboards
and television Example- McCaf SOcial Hour Buy 1 Get 1 Coffee Free
between 3-5 pm
13. POP POD Points of Parity & Points of Difference
15. BRAND POSITIONING Intimate connections Comfortable
environment No pretense Daily chit- chats Informal set-up Bonding
over a cup of coffee Cup of coffee with a bo VALUE FOR MONEY
COFFEE
16. BRAND POSITIONING BFFs Writers & Artists Father,
mother, children Professionals Older couples Study groups
Siblings
17. BRAND POSITIONING THE INTER-WOVEN EXPERIENCE Conversations
linger on after a McDonalds meal at McC
18. References Euromonitor: GMID database McDonalds annual
reportshttp://www.aboutmcdonalds.com/mcd/investors/annual_reports.html
Business Standard - http://www.business-
standard.com/article/companies/mcdonalds-to-open-100-outlets-of-mccafe-in-
india-115042000958_1.html The Times of
Indiahttp://timesofindia.indiatimes.com/business/india-
business/Beverage-boost-McDonalds-to-roll-out-McCafs-in-
India/articleshow/23850835.cms First
Posthttp://www.firstpost.com/business/starbucks-watch-out-mccafe-is-
coming-for-you-with-cheaper-coffee-1163753.html VCC
Circlehttp://www.vccircle.com/news/food-agri/2013/10/09/mcdonalds-
forays-coffee-shop-market-india-through-mccafe
http://businesscasestudies.co.uk/mcdonalds-restaurants/staying-ahead-in-a-
competitive-environment/the-mccaf-concept.html#axzz3fT6WMS8T