McCafe in our Grocery Stores: In Response to Xiaotong Jiang’s Blog Post
- McCafe Image by McDonald’s Canada
My classmate Xiaotong’s blog post, as well a the original article, show a positive reaction to McDonald’s recent release of McCafe pre-packaged coffee in Canadian grocery stores. I agree that with the success of McCafe in McDonald’s Canadian restaurants, as well as growing consumer tendency to brew coffee at home, there are several opportunities to take advantage of here. However, as just another one of your average consumers, I wonder… where is the market research in all of this?
The pre-packaged coffee will be marketed in grocery stores under the same positioning as McCafe: premium, specialty coffee. It will be available in various roast flavours and retail packaging, including single pods. At $6.99/12-oz package, it is priced above the low-end market’s Seattle’s Best Coffee, and not far below Starbucks.
- John Betts (CEO, McDonald’s Canada) Image by McDonald’s Canada
While all of this appears consistent with their desired positioning, there appears to be some disconnect between McCafe’s image and the McDonald’s brand. When McDonald’s has been established as a cost leader in the fast-food industry, it is difficult for consumers to associate it with high-quality coffee.
In fact, based on personal experience, I doubt that the majority of consumers seek out McCafe coffee for its quality and taste, but rather, for its convenience and price as compared to other premium coffee retailers. I would also suspect that oftentimes, it is also purchased to accompany other menu items, and thus is not the main “purpose” of consumer’s orders.
Thus, I believe there needs to be deeper research into the psychographics and behaviourisms of McCafe consumers in McDonald’s restaurants. Looking only at the fact that McCafe has seen high sales in Canada, can it be assumed that consumers will seek it out in their grocery stores? What is the real reason consumers purchase McCafe products in McDonald’s restaurants? Will those who have spent upwards of $100 on Keurig and Tassimo machines purchase McCafe pods?
So as just another one of your average consumers, I wonder… will this new venture actually succeed?
Sources:
Baertlein, Lisa and Martell, Allison. “McDonald’s to sell ground coffee, ramps up expansion in Canada.” The Financial Post, 26 Oct. 2014. Web.
Hemmadi, Murad. “Here’s why McDonald’s wants to serve you coffee at home.” Canadian Business, 19 Sept. 2014. Web.
“McDonald’s to start selling bagged coffee.” Morrison, Maureen. “Kraft, McDonald’s to Roll Out Bagged McCafe Coffee Nationally.” Advertising Age, 19 Aug. 2014. Web.
Sturgeon, Jamie. “McDonald’s McCafe pushes into grocery store aisle as coffee wars heat up.” Global News, 16 Sept. 2014. Web.