mac donald fail products

8/7/2019 mac donald fail products

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ASSIGENMENTASSIGENMENT

OFOF

BRAND MANAGEMENTBRAND MANAGEMENT

FAILURE PRODUCTS OF MC DONALDS


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I m loving itI m loving it


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ABOUT MC DABOUT MC D

y McDonald's Corporation (NYSE: MCD) is the world's largestchain of hamburger fast food restaurants, serving more than 58million customers daily

y A McDonald's restaurant is operated by either a franchisee, anaffiliate, or the corporation itself. The corporation's revenues comefrom the rent, royalties and fees paid by the franchisees, as well assales in company-operated restaurants. McDonald's revenues grew27% over the three years ending in 2007 to $22.8 billion, and 9%growth in operating income to $3.9 billion

y McDonald's primarily sells hamburgers, cheeseburgers, chickenproducts, French fries, breakfast items, soft drinks, shakes, and

desserts. In response to obesity trends in Western nations and inthe face of criticism over the healthiness of its products, thecompany has modified its menu to include alternatives consideredhealthier such as salads, wraps and fruit


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McDonald's IndiaMcDonald's India

Culturally SensitiveCulturally Sensitive

y McDonald's worldwide is well known for the high degree ofrespect for the local customs and culture. McDonalds hasdeveloped a menu especially for India with vegetarian selections tosuit Indian tastes and preferences. Keeping in line with this

y , McDonald's does not offer any beef or pork items in India.In the last decade it has introduced some vegetarian and non-

vegetarian products with local flavors that have appealed to theIndian palate. There have been continuous efforts to enhancevariety in the menu by developing more such products.

y Only pure vegetarian oil is used as a cooking medium.

y Cheese and sauces are completely vegetarian and egg less.

y Separation of vegetarian and non-vegetarian food products ismaintained throughout the various stages of procurement, cookingand serving.


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y McDonalds has 132 restaurants in India

of which 79 are in North & East India and

53 in West & South India.


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y Type - Public (NYSE: MCD)

y Industry - Restaurants

y Founded May 15, 1940 in San Bernardino,California;

y Headquarters - Oak Brook, Illinois, U.S.y Number of locations- 31,000+ worldwide

y Area served - Worldwide

y Key people - James A. Skinner (Chairman & CEO)

y Products -Fast food(hamburgers chicken French

fries soft drinks coffee milkshakes salads desserts breakfast)


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Hula BurgerHula Burger

y The Hulaburger was the mostfamous flop of Ray Krok(the

man who bought the small

time McDonalds company and

turned it into the mega-

franchise we know today). Theburger was created in 1963

was aimed at Roman Catholics

who were forbidden to eat

meat on Fridays

Reason for failureIt was basically a cheeseburger but with a

slice of pineapple instead of meat. The

burger was a disaster unlike the Filet-O-Fish which was being marketed at the

same time by a Cincinnati franchise.


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McHotdogMcHotdog

y Reason for failurey In his 1977 autobiography CEO Ray Kroc prohibited the

company from selling hot dogs, regardless of potential

demand, as he regarded them as unhygienic;

y hot dogs were introduced in the late 1990s at some

midwestern located stores as a summer.

y McHot Dog. Despite many attempts to revive the

McHotdog, it just never sticks.


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Mc PastaMc Pasta

y After testing pasta in the South in 1989, McDonaldsbegan testing a pasta-based menu at 40 units acrossRochester, N.Y.

y It consisted of the above mentioned pizza but alsoincluded lasagna, spaghetti, fettuccine alfredo, androasted chicken as entrees.

y The side dishes included mashed potatoes and gravyand a vegetable medley. Like the McPizza, people justwerent interested in eating pasta at McDonalds.

y recently the company tried pasta meals for kids inNew Zealand and Australia both countries areremoving them (or considering it) from their menus

due to low demand.


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McPizzaMcPizza

y In the mid-nineties, McDonalds decided to go

into the pizza business;

y the resulting pizza was bland (like much ofMcDs food offerings)

y The company and its frachisees were left on

the hook for expensive new ovens and

widened drive through windows that werent

needed.y Even saturation marketing wasnt enough to

change the pizza habits of ordinary Americans,

and McPizza was gradually abandoned, and

generally forgotten.

Why did this product fail?

In short, people didnt associate

McDonalds with pizza and theycould get better pizza elsewhere.


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Arch DeluxeArch Deluxe

y McDonalds positioned the Arch Deluxe as a hamburgerfor adults with a sophisticated, grown up taste.

y Arch Deluxe ads showed kids making yucky faces,turning up their noses at the new adult burger.

y They even showed Ronald engaged in adult activitieslike golf and pool. And the result of spending over $100million on the Arch D

y eluxe campaign? As one Wall Street analyst put it: Theyteed off one of the most expensive campaigns in history,and still we estimate that comparable store sales weredown for the quarter. A major management shake-upfollowed shortly thereafter.


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McGratinMcGratin CroquetteCroquette

y This special McDonalds burger designed for the

Japanese Market was a dismal failure.

Why did it fail?it contained a deep fried Macaroni, shrimp, and

mashed potatoes.

it was served on a bed of cabbage?

it was the name which really is unlike anythingever seen at McDonalds.

it does still show up as a seasonal offering inparts of Japan.

This won wins the fail award not for losing

money, but for being plain awful.


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McDLTMcDLT

The McDLT (McDonalds Lettuce and Tomato) was soldin a novel form of packaging. The meat and bottom half of

the bun were prepared separately from the lettuce,

tomato, American cheese, pickles, sauces, and top half of

the bun. Both were then packaged into a specially

designed two-sided container..Failure

The first problem was that the packaging

was unwieldy but even worse: whowants to buy fast food and then put it

together themselves?

. This burger eventually found its wayback to McDonalds rebranded, restyled,

and actually put together for you, as the

Big N Tasty


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McLean DeluxeMcLean Deluxe

y failurey The first problem with this burger was that men

were turned off it (much like Diet Coke whichlead to Coke Zero).y The next problem was its taste.

y McDonalds was marketing it as low fat buttastes great but it didnt. The fat that was

removed was replaced with water but to makethe water stay in the meat, it was mixed withcarrageenan seaweed to you and me.

y The burger tasted awful, had a limited market, andfailed dismally which is really no surprise.


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y THANK YOU

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mac donald fail products