TOPIC:

McDonald’s breakfast launch dilemma

Assignment -

CLASS:
MBA-DAY
Semester -3rd

Submitted By:
HASSAN RAZA
Reg #1825145

Submitted To:
Sir Saqib Mehmood
Strategic Marketing

Department of Management Science

SZABIST ISLAMABAD.

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 Analysis & Summary
After reading the case study “McDonald’s breakfast launch dilemma”, discuss how the
company has successfully used the Standardization/Adaptation matrix as seen below in
markets like Malaysia, India and Pakistan (all discussed in the case).

The standardization of products across cultures is gradually becoming a considerable issue

that the managers of global firms are today facing. As global marketing in the 21st century
receives significant research devotion, it seems the cost benefits and administering of the
standardization strategies is simplifying the approach of international marketing as well as
being an attractive choice for many firms. General business across national boundaries
entails that products are marketed to suit the targeted international markets. This
necessitates that products are marketed to the respective cultural preferences. McDonald’s
brand mission is to be their customers’ favorite place and way to eat.
Their operation worldwide is extended around an international strategy called the Plan to
win which center on an exceptional customer experience – People, Product, Place, Price
and Promotion.

 In Pakistan

For instance, McDonald’s developed its loyalty measurements based on the

research. About 30 percent of the McDonald’s users were true loyal, 15 percent attitudinal
loyal, 16 percent behavioral loyal and 39 percent competitive loyal (Source: interview
with the marketing manager; base: all McDonald’s users) according to this case company
also focus on consumer purchase power because in Pakistan different level of or we called
different category of living standard. According to this case low level, middle level and
high level standard to company make a product different category for each level. In Sindh
and Punjab McDonalds have a big market in different cities of this main two province juts
like just Like Karachi, Lahore, Islamabad, Multan and so on. McDonalds also develop
product with under Islamic rule because who know Pakistan is a Muslim country.

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  In India
Talking about Mc Donald’s in India, a menu was proposed that was affordable as well as
had a traditional essence to it. The communication for the menu highlighted the
importance of convenience and on-the-go breakfast option. After marketing tests done in
key cities of India for six months the campaign was launched followed by a complete
promotion drive throughout the country.

 In Malaysia,
Seeing the economy potential Mc Donald’s decided to launch their breakfast in the
breakfast sector. The first mover advantage drove in their favour and they were able to
grasp a large share in the market. They used a two branched communication approach
targeting both adults and families simultaneously. They offered on-the-go weekday meals
for the working class whereas on the other hand served weekend breakfast baskets to
FWKS especially aged between five to 15 years
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According to case this Question will be what would be the menu of breakfast? What is the
right time?

In my point of view McDonalds the menu must comprise of the below items as these are
the highly consumed breakfast items according to their starting time of project.

 Tea – 90% of consumers drink tea during breakfast in Pakistan

 Paratha/Bread/Roti – constitutes of 59% of breakfast item consumed.
 A curry/egg option should also be considered.

Different demographics of the society should be catered by the menu, for example
individual meals or family meals. This should comprise blends of all the above
highlighted breakfast items.

As considering the suitable timing, one must consider sleeping patterns, either we have the
early population (keeping in mind the time needed to prepare oneself for work and the
getting the school going kids ready - usually at 6 am) or one might consider the corporate

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public and various other families specifically in the urban areas slept late at night and
woke up late or in some cases just a few minutes before they had to leave for work (7.30
to 8.00 am). Moreover keeping in mind the operational changes essential to prepare lunch
(usually 30 to 60 mins) proposing a breakfast time between 5.30 am till 11.00 am is very
suitable as it will cover both categories. Grab breakfast on the way to school or you barely
made it to office on time and are feeling hunger and want to grab a quick bite/brunch.

According to this case McDonalds is also follow different type of process because we
know that in this case different country with their different religion and also different
polices of country.

McDonalds uses the Product Development Process namely:

 Idea generation.
 Screening, Product/process development.
 Scale up
 Commercialization in the quest for new products that the company plan to launch
post 2016 onwards?

 Idea generation – First thing to consider is to generate an idea for the product as per
the needs of consumer and trend. Ask your own people the Employees, particularly the
ones who deal with customers face to face or a regular basis, for product ideas. Run
surveys for gathering customers feedback on the existing products and what do they
want to change in it. Examine your industry to see whether there are areas where useful
products do not exist. New tools can be used like social media, online survey to capture
customers’ likings. List all ideas for a new product.

 Screening - Make a list of product ideas and discuss the pros and cons of each idea and
narrow the list to just a handful of the best ideas, based on their potential to generate
revenue, as well as the time and resources you have to actually create the products.
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 Product /Process development - Make a prototype of the product, then share it with a
handful of good customers and key partners. Ask them to try it out and provide
feedback. This can be an input for the marketing team to expertise marketing messages
and developing marketing campaign ideas, such as email campaigns, websites,
billboards or posters. Base the marketing messages on the most common positive
comments or reactions from customers and partners during the campaign evaluation.

 Scale up - Make adjustments to the prototype or develop a new version, with

considering the flaws highlighted earlier if necessary. Develop additional prototypes
for market testing. Do a small product release in select areas. Check the product sale,
and gauge the reasons of high or low sale. Assess the price and the efficiency of the
marketing messages. A small launch helps determine what needs to be done before an
official launch.

 Commercialization - Begin production for the first round of the product launch.
Evaluate how many products to produce based on your market testing and demand for
the product. Advertise and speak to product distributors about ordering the product, if
the product will be sold in stores.
Through this McDonalds also develop a good choice product for their customer in each
country. McDonalds also face their competitors so who can do mistake in this project if he
can’t success in this project that will be lose their whole sale. According to this process
any will be develop a suitable product for market. Because this process is totally depend
on R&D Research and Development with the help of employee or marketers.

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