PowerPoint Presentation

STUDY OF BRAND EXTENSIONSubmitted by:

KRITIKA GUPTAPGP 30030

Good NeighborKeeps families together through Ronald McDonald House CharitiesUses less energyRecycles more

Good FoodPromotes choicesReal ingredientsGreat tasteTransparency

Good PeopleCreates opportunityEncourages diversityFacilitates teamworkRewards achievement

PARENT BRAND: McDonaldsCore Values

Parent Brand - McDonald's

Breakfast

Dessert

Burgers and wraps

Munchies

BRAND EXTENSION

Internationally, McCafs are housed within McDonalds outlets but have a separate look and feel. These stores are more bold and sophisticated as compared to the McDonalds outletsThe same format is being followed in India, where a McCaf store typically occupies 500 sq. ft. of a 4,000 sq. ft. McDonalds outletPresently McCaf has 27 outlets in India in major cities like Mumbai, Pune, Nasik and AhmedabadIt plans to expand aggressively and open close to 250 stores in the next 3-5 yearsMcCaf is able to tap the advantage of McDonalds excellent store network and supply chain

HIGH QUALITY, INEXPENSIVE COFEE

TARGET SEGMENT: more diverse segment of the population that favors convenience, speed and lower prices.

McCaf Commercial

Growth of organized Caf market in India

The caf market (organized sector) grew at a CAGR of 8.24% in the last 5 years

Within this market, the food segment, experienced a growth of 8.06% while the drinks segment grew at a rate of 8.71%

However, the proportion of food in relation to drinks has declines over the years

Industry overview

Competitors - organized sector

Market share

2013: Market size INR 17.6 Bn2014: Market size INR 19.2 BnKey observations:Stand alone cafs and the unorganized sector constitutes majority of the market for cafs and bars in India ~98% In the organized sector, Caf Coffee Day, Barista and Costa Coffee together comprise 1.6% Starbucks and McCaf are relatively new to the Indian market and occupy a very small part of the market. With their rapid expansion, however, they are slowly capturing the market with their USP Affordable luxury