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McDonalds and Brand Development - Where Next?

What business should a mega-brand like McDonald's go into next?

Launch McDonalds Coffee Shops!

This brand extension will explore and exhaust a new potential market where McDonalds’ brand salience and leverage can be fully exploited. McDonalds is the leader in satisfying customer’s needs through a rigorous system of Quality, Service, Cleanliness and Value and by holding a distinctive position that appeals to kids and adults alike.

The McD’ Coffee Shops would be ideal in tapping into the coffee cultures that are growing rapidly throughout the globe. These coffee cultures dominated by Starbucks and private cafes attract consumers that pay excessive prices for coffee to gain access to the coffee experience. This experience has great commercial opportunities as these consumers have more in-store time to be exposed to (McDonalds) communications and promotions.

Significantly, nowadays people look to coffee shops as time-killers on their way to the cinema, take-away, or going back to work. They are looking for a short-term experience that is fast with excellent service at a fair price.

McD Coffee Shops would be separate entities from the fast-food restaurants but placed near them and also directly near Starbucks locations. Semiotics and the use of the infamous ‘M’ logo would allow for immediate recognition, credibility and belief in the new venture. However for further differentiation from the fast-food image, the famous ‘red’ theme would be replaced by the ‘grey/black’ colours that are sometimes used in certain countries. Also introducing more comfortable seating with kid’s areas taps into the parents-accompanying-kids market that rarely experience coffee shops; so kids are not entirely excluded from this adult experience.

McDonalds is known for being open until late and their Coffee Shops would thus satisfy the huge consumer demand from club/bar goers and tourists that would buy into a brand that allows them to enjoy their coffee experience whenever they desire.

McDonalds’ vast global reach and prime locations allow for instant worldwide saturation, and their lower prices in comparison to Starbucks etc would permeate countries where coffee shops are considered a premium/luxury. Starbucks may offer expertise and better tasting coffee, rather like KFC in chicken, but consumers will consume from McDonalds coffee shops as they can access the same experience with lower prices, better and faster service.

This venture will add a commercially responsive market and further worldwide engagement with brand McDonalds that ultimately fortifies the belief and loyalty to the brand.

Mono Ghose MA (Hons) Mavericks Executive Account Director/Partner

Source: www.isnare.com