Sorry for posting this late! Missed last class due to some personal issues and didn’t check vista during Thanksgiving. Hope it isn’t too late to post this!
After reading Heena’s Blog Entry:“Renovating McDonalds’ Brand Image”, I decided to read a bit more on McCafe, this is what I learned.
According to a previous journal from Wall Street Journal, the reason why McDonald is always at the top of the fast-food industry is its menu additions such as smoothies and oatmeal. The question here is why did they bother adding all this stuff in the first place ? It all started with coffee. According to Jan Fields, McDonald’s USA President, there was a time when McDonald’s coffee was considered the best, but during some period the company noticed a significant decline in its coffee sales when the demand for coffee was going up (Maybe McDonalds coffee really tastes bad…). Well, McDonalds will never allow that to happen again!
So here comes the company’s strategy: Make everything that its competitors make, whether direct or indirect. People like sweet beverages, then McDonald’s will make its own smoothies. People get oatmeal at Starbucks? Now they can get oatmeal at McDonald’s. People want coffee? Then McDonalds will sell it for a cheaper price than others. If you are a smaller restaurant chain and you have a moderate degree of success selling a product, guess what? McDonald’s will sell it better than you. “Change is a part of our business to keep up with customer demands, and there have been a lot of changes,” says a management executive. As mentioned by Heena, McDonald’s market strategy is successful because it creates value for its customers by continuously adapting to its customers changing needs.
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