McDonald's and the Hotel Industry Essay

Submitted By ss6012
Words: 756
Pages: 4
Open Document
McDonald's and the Hotel Industry
Case Memo
Problems and Challenges
Should McDonald’s enter into the hotel industry, opening its own hotels? If so, which segment of hotel market should McDonald’s be targeting?

Analysis

1. Associations and meaning of the McDonald’s brand from consumers’ perspective
First of all, we should conduct survey among consumers to get full understanding of the brand.
Below is a full list of associations collected with detailed meaning explained.
Associations
Detailed Meaning
Fast
The whole ordering profess is fast.
Standard
Many aspects of different McDonald’s restaurants are identical.
Service and food is the same across different McDonald’s restaurants. Store decoration looks the same. Locations are similar.
Everywhere
McDonald’s restaurants are in many convenient locations.
Hamburger, chips
Food is the core product.
Value
The food and service is worthy of the money paid.
Cheap
The price of food in McDonald’s is low compared with people’s income.
Not delicious, but with standard quality
Taste in McDonald’s is not targeting gourmet level, but still not bad.
Not healthy food
Hamburger, cola and chips are not considered very healthy daily food.
Clean
All stores are very clean.

2. Analysis the relationship between above associations and the attributes / benefits that consumers are looking for in the hotel industry.
These associations could be positive, negative or neutral, which depends on certain conditions.

Associations
Attributes/Benefits looking for in the hotel industry
Fast
Positive association.
Fast handling process of check-in and check-out
Standard
Positive association.
All hotels have same or similar locations, decorations and services. So consumers can expect similar stay experience. The hotel could be a safe choice in foreign areas.
Everywhere
Positive association.
Easy to access to hotels is also an advantage for travellers.
Hamburger
Neutral association but connected.
Food and sleep
Value
Positive association.
Every consumer wants to spend their money wisely.
Cheap
Neutral association.
It only relates to budget and economy segments of hotel industry, but not other segments.
So it could be negative if McDonald’s wants to position its hotel in high price segments.
Not delicious, but with standard quality
Negative association.
Consumers’ perception could be that McDonald’s hotel is not providing good or luxurious quality.
Not healthy food
Negative association. Consumers’ perception could be that they don’t want to bring their kids to the hotel.
Clean
Positive association.
People all love hotels to be clean.

3. Evaluation of the current hotel market and its segments and its correlation with McDonald’s branding attribute.
Segment
Average Price Level
Relevant of Attributes/Benefits to McDonald’s brand
Position or Negative
Luxury
$300
N/A
Negative
Upscale
$150-$300
N/A
Negative
Mid-market with food and beverage
$100-$150
Hamburger (Food and beverage)
Partly negative, partly positive
Mid-market without food and beverage
$45-$70
Clean, fast, easy
Positive
Economy
$40-$65
Cheap, highly accessible locations, friendly staff, clean
Positive
Budget
$30-$60
Affordable, clean, friendly
Positive
Extended Stay
$60-$90
Show More

Related Documents: McDonald's and the Hotel Industry Essay

Mcdonald's Golden Arch Hotel

Introduction The McDonald’s Restaurant story began in 1954, when a self-employed salesman named Raymond Kroc sold a popular milkshake mixer in Southern California, thus since then the company contains over 30’000 quick-service outlets in 122 countries around the world. As the company began to be a big success around the world, Mr. Urs Hammer, CEO of McDonald’s Switzerland got the green light from the executive board of Chicago to open a Hotel, in Zurich. Hence, the Golden Arch Hotel opened its doors…

Words 4900 - Pages 20

A New Term In A New Fast Food Industry

FIRM IN THE FAST FOOD INDUSTRY Introduction This paper presents a proposed strategy (and a rationale for that strategy) for the establishment of a new fast food restaurant. The general strategy is to model the restaurant’s operational and marketing structure after those of the industry leader (McDonald’s), while at the same time introducing innovative food and service concepts which will obviate any necessity to directly compete with this virtually unassailable giant. Industry Background: Rationale…

Words 1564 - Pages 7

Essay Unit 1

Edexcel BTEC Level 4 HNC Hospitality Management Unit 1 The Contemporary Hospitality Industry Thomas Spalding 8/29/2014 Summary This assignment outlays how the hospitality industry is fairing in today’s economy, and how its best to approach the future with staffing issues and improving the image for the younger generation to be involved in a career in Hospitality, to how we can make Hospitality a more environmentally friendly surrounding and deal with the ever changing society in which…

Words 4010 - Pages 17

Essay about Mcdonalds Supply Chain Strategy

SUPPLY CHAIN MANAGEMENT OF McDONALD’S INDIA Company Introduction. McDonalds is a fast food chain with restaurants all over the world. McDonalds is world’s leading food service retailer with more than 31,000 restaurants in 119 countries serving more than 50 million customers each day. In India, McDonalds is a joint-venture company managed by two Indians. While Amit Jatia, M.D. Hardcastle Restaurants…

Words 3425 - Pages 14

Strategic Managment Paper for Mcdonalds Philippines

[pic] San Beda College [pic] 638 Mendiola St. 1005 San Miguel Mendiola, Manila A STRATEGIC MANAGEMENT PAPER (STRAMA) On McDonald’s Philippines A Subsidiary of Alliance Global Group Inc Submitted by: Hiroshi A. Torobu Executive Summary I. Introduction McDonald’s is the world’s largest chain of fast food restaurant serving more than 58 million customers daily. The firm has an excess of 30,000 restaurants worldwide employing 1.5 million people. The business began in 1940…

Words 7009 - Pages 29

Mcdonald's Swotanalysis Essay

Contents McDonald’s Analysis 2 Current Marketing Situation (SWOT) 5 Market Segment 7 Issue Analysis 7 Recommended Alternatives 7 Product, Place, Price and Promotion 8 Selection of the Best Alternatives 10 McDonald’s Analysis McDonald’s is a colossal corporation with an almost incomparable international reputation in the fast food industry. McDonald’s story begins in 1940 in the United States of America in a small town called Des Plaines where its founders Richard and Maurice McDonald…

Words 3133 - Pages 13

Globalization of Mcdonald"S on China Essays

Globalization of McDonald’s in China Executive Summary McDonald’s is one the largest fastest growing fast-food restaurant in the world. McDonald’s have become a household name across the world. The fast food giant has come a long way from being just a burger stand in San Bernardino, California in 1940. The original owners were two brothers, Richard and Maurice McDonald. The hot dog stand evolved into a restaurant offering 25 items on the menu. In 1947, Richard and Maurice (going forward…

Words 5323 - Pages 22

7ps of Marketing in Mcdonalds Essay

Inventory McDonald's, a guide to the benefits of JIT… Inventory is the big thing right now in operations. This, along with lean operations and six-sigma are the buzz words being talked most about. But what exactly is the deal with JIT operations? McDonald's is another example of a JIT system wherein McDonald's doesn't begin to cook (reheat and assemble what may or may not be actual food) its orders until a customer has placed a specific order. What used to be the case was McDonald's would pre-cook…

Words 3654 - Pages 15

Essay on Duluth Community Pages

With the largest of the Great Lakes at our feet, the weather is cooler in the summer and warmer in the winter. Average Temperatures: January July Daily Average 8.4° F 65.5° F Maximum 17.9° F 77.1° F Minimum -2.2° F 54.6° F Average Annual Rainfall: 30.00 inches Average Annual Snowfall: 77.1 inches Duluth, Minnesota is halfway between MinneapolisSaint Paul and the U.S-Canadian border. The altitude ranges from 605 to 1,485 feet above sea level. Duluth is the third largest city in Minnesota…

Words 2080 - Pages 9

Analysis Of Global Expansion Business

Street stalls 6 100% Home delivery/Takeaway 4 The leading players in consumer foodservice in 2012, for example, included: Kuwait Food Co (Americana), franchisee of Yum! Brands Inc’s KFC and Pizza Hut brands; Emirates Fast Food Co, franchisee of McDonald’s, Subway Arabia; First Food Services, the franchisee of Burger King; and M H Alshaya, franchisee of Starbucks, PF Chang’s China Bistro and The Cheesecake Factory, amongst other brands. Thus, the top five leading players are all organized entities…

Words 2141 - Pages 9