Brand Management - Mcdonald
speed of market penetration . An extension may also help to further differentiate McDonald’s from its increased competition and enable the company to remain at the forefront of the consumer’s mind when they are making decisions about food.
Extension Policy Considerations
In an effort to determine the most appropriate extension for McDonald’s, various considerations were made. Many studies on the viability of extensions draw insights from the 1990 Aaker & Keller model . Aaker & Keller proposed and tested a model of consumer brand extension attitude formation identifying three main factors that affected the success of the extension. They were the attitude to the original brand, the ‘fit?between the original and extension product and the perceived difficulty of making the extension product . These three factors surfaced regularly during conversations with survey respondents.
It was determined that prior to any extension consideration, it was imperative that a deep understanding of brand meaning was in place. A survey of ten individuals was conducted and the first five minutes of the interview was used to discuss what McDonald’s represented or meant to them as customers or non-customers (depending on the subject) . Following the brief conversation, the survey participants looked at six possible brand extensions for McDonald’s and asked to rank them in order of McDonald’s ability to ‘pull it off? After the ranking was completed, the respondent was asked to justify their ranking. Many useful insights were gained from this process, including the following framework for McDonald’s new brand extension.
1) Understand the brand. What is it capable of? What is it not capable of?
2) Conduct a thumbnail SWOT analysis. Attempt to match up any opportunities with strengths that the Company has. This analysis will allow the brand extension team to identify attractive new markets.
3) Speak to people. Conduct a survey to gain insights and confirm findings in the SWOT analysis.
4) An understanding of the brand will allow the Company to address any concerns and tidy up its image prior to its extension implementation.
5) Target the appropriate audience. Avoid the temptation of casting too wide a net during the segmentation process. Inappropriate audience selection will inevitably have negative repercussions on the brand in its original category.
6) Be sure to have a well laid out implementation plan in place. It is easy to conceive of good ideas. It is difficult to get them off the ground.
Rationale for brand extension choice
Based on the framework that relied on research, observation and surveys, I have recommended that McDonald’s proceed with an extension into the grocery store. While the concept of the amusement park elicited the most enthusiastic response it was deemed too capital intensive and frivolous during an economic slowdown. Respondents frequently mentioned that it was a good idea but [next page]