Brand Management - Mcdonald
that McDonald’s does not have a high quality or prestigious image which are important attributes in the new product category. One respondent suggested that McDonald’s would be better suited to license or produce paper plates and cups.
Frozen Meals at the Grocery Store
A popular choice based on McDonald’s obvious association with food products. Respondents noted that this would also take the least effort. People would recognize the brand in the aisles and instantly connect with it. It was noted that the frozen meals would be easy to make consistent which is an attribute that McDonald’s wishes to be associated with. Respondent nine was again somewhat unique by wondering, ‘if the food is garbage in the restaurants, why it would be any better from a grocery store??
Amusement Park
This is the brand extension that was met with the most enthusiasm. People saw the park as a natural extension of the McDonald’s Playlands. One respondent noted the success of a similar Hershey branded theme park. Strong associations with children often caused respondents to assign this a #1 ranking. The idea sparked the most conversation as respondents began sectioning off the proposed park according to McDonald’s characters like Grimace and the Hamburglar. When asked if McDonald’s still relies on these characters in their marketing, there seemed to be a degree of uncertainty.
Day Care Facilities
Evoked the most diverse responses. People saw value in a chain of consistent facilities where parents could expect a certain level of service and cleanliness. However, one respondent expressed concern regarding the possibility of one of the restaurant’s young (inept) employees taking care of their children. In addition concerns about what the children would be fed every day were raised. McDonald’s reputation for unhealthy food was touched on by most survey respondents. One respondent addressed the fact that such an extension would be capital intensive and the training requirements would be considerable. It was therefore judged to be less suitable than a more modest extension like frozen meals. Liability issues were also raised.
Educational Interactive CD-ROM
This option was met with relative indifference. The only connect that people saw was through the association with children. There was concern about the ability of McDonald’s to deliver educational material and help with the development of children. The same problem was present with the Day Care option.
Appendix A: A Thumbnail SWOT Analysis
Strengths: McDonald’s food is consistent. Staff are friendly given the demand for rapid transactions. The Company is well regarded in the community as a responsible corporate citizen (Ronald McDonald charitable foundations). A well recognized brand.
Weaknesses: Perceived quality is slipping, and fast. The cleanliness that McDonald’s espouses is clearly not being delivered. Innovation is slow and falling behind its competition. Franchisees would like more autonomy but that may threaten the consistency which McDonald’s is so proud of.
Opportunities: Leveraging of the strong brand. The [next page]