Brand Management - Mcdonald
but seemed like a difficult extension for McDonald’s. After weighing the many options, frozen meals was chosen to explore further. For detailed survey results please see Appendix B.
McDonald’s is a large Company and will have manufacturer’s anxious to establish relationships with them and produce the product. A favourable deal may be struck if McDonald’s leverages its brand’s power. Mass production runs will help McDonald’s achieve economies of scale in a short period of time. Another reason to proceed into this market is that the research suggests that frozen dinners are well-positioned to continue as one of the fastest growing and most dynamic food categories in North America . Consumers are time-starved and need convenient solutions. This extension will address these customer needs and as a result the product will provide value to the customer.
This extension will be targeting the same audience that McDonald’s restaurants target. The meals will be developed for children primarily but also offer alternatives for adults that need a quick meal. McDonald’s popularity with children should drive sales and its brand will save consumers time when shopping. The frozen food options have increased lately and having the McDonald’s brand at a reasonable price in the grocery store will allow the consumer to dismiss the numerous alternatives.
Important brand associations can be carried into the new offering. Consumers will value the consistency and value that the McDonald’s frozen meal offers. A parent will appreciate the fact that after a long day at work they can feed their children something dependable that will not be met unenthusiastically.
A complete implementation process is available in Appendix C.
Conclusion
McDonald’s is fortunate in that it has a powerful brand. This presents the Company with any number of possibilities when considering extensions. Much has been made of recent lapses in service and cleanliness, however these problems can be fixed with a modicum of effort.
Certain factors are highly influential in the formation of consumer attitude toward new extensions and these affect the eventual success or failure of the extension. These considerations combined with thorough research into the new product market are essential steps to take prior to proceeding with a brand extension. As long as McDonald’s is able to transfer some of what it does well into the new product category (i.e. consistency, value etc.) there is an increased likelihood the effort will succeed.
Appendix B: Survey Results
Methodology: Respondents were asked to rank in order the extension that they felt McDonald’s would be most successful/competent at. Participants consisted of 4 female, 6 male with a mix of 4 McDonald’s customers and 6 non-customers. A customer was defined as someone who has eaten at the restaurant in the last month, and intends to eat there again in the near future. Ages ranged from 16 to 62.
Survey Respondent Number 1 [next page]