Product items, lines, and mixes are very essential when companies are trying to make a sale. It is unlikely that a company will sell one thing. When McDonalds first opened they sold only burgers and fries. Their product line now is infinite. They sell anything from burgers to ice cream to coffee. Their new product line McCafe which is mainly coffee now sells smoothies as well. McCafes coffee line includes: McCafé Mocha, McCafé Caramel Mocha, McCafé latte, McCafé cappuchino, McCafé hot chocolate, McCafé iced mocha, McCafé iced caramel mocha, McCafé iced latte, McCafé mocha frappe, McCafé caramel frappe, McCafé Wild Berry Smoothie, and McCafé strawberry banana Smoothie.The product mix consists of coffees, iced coffees, frappes, cappuccino, and smoothies. The product line depth for McCafe drinks totals 12 products. Once you go to a McCafe they also have a whole pastry section available to go along with your coffee beverage.
McDonalds and McCafe is also a global brand. They have restaurants all over the globe and they adapt to different cultures and local taste. Such as in the Dominican Republic they will sell platano chips with their burgers. Consumers like being familiar with their brands and once they see McDonalds they think of their trademark which could be a catchy phrase. McDonald’s uses the phrase “I’m lovin’ it” after every commercial or advertising. Consumers become more familiar with the trademark and it keeps them coming back because they know McDonalds is unique and different from other companies.
The McDonald's starting of McCafe is an excellent example of diversification and new product development. By starting McCafe, McDonald's is offering new products that were not available in traditional McDonald's stores. McCafe specializes in serving cafes, which attracts customers that usually don't come to McDonald's to eat fast-food. McCafe is also not only a product development. McCafe has its own section of the store and clearly distinguishes itself from the traditional McDonald store. The store has a modern, yet relaxing mood. This is important to attract new market segments. Perhaps customers who go to a cafe don’t go to satisfy hunger, but possibly to take a sip of coffee and chat in a relaxing environment. Thus, McDonald's McCafe serves as an example performing diversification by developing both new products and new markets. 
Jan Fields COO of McDonalds was asked why are they opening up their new McCafe line and he answered "Drinks overall, beverages are a huge growing part of the business and from an industry standpoint, beverages make up $60 billion." The McCafe idea was originally tested at McDonalds locations in Melbourne, Australia. The testing in Australia was successful. McDonalds restaurants who offer McCafe drink choices made 15% more profit than locations that did not. It eventually became the largest coffee chain in Australia. The same result happened when testing was expanded to New Zealand.
