Brand Management - Mcdonald
The brand is basically an untapped gold mine. Stand behind the lighter choice menu. If it catches on, it will go a long way in changing the unhealthy image.
Threats: Competitive pressure from Wendy’s, Burger King etc. Environmental and anti-globalization groups. General downturn in US economy.
Appendix C: Implementation Process ?A 6 P Analysis
Product: Variety will be limited initially. Meals will be based on products that are currently available in McDonald’s restaurants (i.e. Chicken Nuggets and fries). McDonald’s is clearly not gourmet food so they should avoid moving into the premium priced frozen food section. Quality will be similar to the restaurant’s (R&D important here) and the packaging design should evoke feelings of the restaurant. The golden arches logo should be prominent. Kid’s meals may wish to include a small toy in order to deliver excitement to the child.
Price: McDonald’s should keep with a value offering. Price is an attractive feature of the restaurant and should be carried over into the grocery store. Many frozen entrees are expensively priced and McDonald’s may benefit from positioning themselves as the dependable, affordable alternative.
Promotion: Using the extensive networks of franchises is an excellent way of promoting the offering. McDonald’s restaurants may wish to offer a special initial sales promotion whereby restaurant customers receive coupons for 50 cents off of a McDonald’s frozen meal purchase.
Place: McDonald’s should aim for significant grocery store penetration. They will likely wish to stay out of the prestigious chains where sales would likely suffer.
People: This element of the mix will be less important than in their restaurants. Poorly run grocery stores with bad service should be avoided if possible in order to avoid negative associations with the brand. Relationships with manufacturers and grocery store managers will be an important part of getting the extension off the ground.
Process: McDonald’s will have to have a closely monitored supply chain. Orders should be delivered in a timely manner to the various grocery stores. The manufacturing may be done by a company that McDonald’s is already familiar with. Quality and consistency of the meals should be closely monitored.