Staying ahead in a competitive environment
A McDonald's Restaurants case study

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Page 5: The McCafé Concept

Even mature markets can have gaps in provision that leave some potential customers unsatisfied. The McCafé development is the result of intensive market research that has identified a group of potential customers that had remained largely untapped.

McDonald's recognises the importance of listening to the needs and requirements of this substantial group of users. McCafé provides an avenue for McDonald's to target these consumers by offering high quality coffee served by specially trained café staff in a café style environment.

McDonald's has defined its target market clearly. TheMcCafé target market is customers who appreciate quality coffee and who want an excellent product in an attractive, undaunting environment. This concept has already worked well in Australia and New Zealand where the café concept is less developed than in Europe and America. These examples suggest that while McCafé works well and is profitable in both city and suburban locations as city locations in the UK become increasingly flooded with new entrants to the café market, competition for 'the coffee £' will continue to increase as will the need to continue to look for new ways to compete within cities.

Suburban and regional McCafés offer a new group of customers a way of taking 'time out' with a good cup of coffee. Demographically this group is primarily female, aged 25-39. Many within this group have young families. McCafé 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.

McDonald's Restaurants | Staying ahead in a competitive environment