As MacDonald’s has recently decided to expand their McCafe into the home-brew coffee market as they are now launching their new coffee pods into Canadian Supermarkets. Even though research has been done and proven by the “Coffee Association of Canada ” that 78 percent of the coffee consumption is done at home and it is surely a product with potentials to invest in, the market for grocery aisle instant brewed coffee remains to be extremely competitive. First, powerful competitors includes the Keurig, Starbucks Tassimo, and Tim Horton’s K-cups; however, within this competitive environment, it is important to acknowledge that the concept of instant brewed coffee pods may still not be widely acceptable throughout the market. For instance, besides the convenience of the invention, the debate of whether to consume freshly brewed coffee or purchase the instant coffee maker remains as customers’ preference and priorities vary. Therefore, it is important for McDonald’s to acknowledge a few points as they enter the market of instant coffee pods. First, the taste of the brewed coffee, throughout the competitive coffee market, it is important to distinguish the taste and emphasize the brand quality apart from other brands. Second, the price, as McDonald’s has the intention to actively expand their brand name into the grocery market, developing their “focus low cost” having a lower price while having decent quality may give them an advantage among other coffee brands. Last, but not least, the variety of the coffee pods. Instead of mainly focusing upon brewed coffee, expanding their target consumers to a younger age might give them a great advantage over others as the concept of instant beverage pods remains to be a concept new to the market. Therefore, taking a lead in developing a variety types of pods, not necessarily restricting to brewed coffee would really give McDonald’s a great position in making their brand stronger among customers’ mind.
Sources:
“McDonald’s McCafe Pushes into Grocery Aisle as Coffee Wars Heat up.”Global News. N.p., n.d. Web. 05 Oct. 2014. <http://globalnews.ca/news/1566444/mcdonalds-beats-tim-hortons-to-the-punch-as-coffee-wars-heat-up/>