Question

McCafe offered new products that were not part of traditional offerings. Sofa-type seating encourages a relaxing mood for people who wanted to sit and chat. By appealing to a nontraditional market (i.e., not families with children) what approach was McDonald’s taking?

Answer 1

Answer: McDonald is taking a diversification approach.

Explanation:

Definition: Diversification is the strategy that the company uses to advance it's market and increase sales by selling new products in a new market which is different from the parent business.

The business get expanded when it enters a completely new and different segment which works different from the current parent business that the company owes.