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Developing Products In Half The Time Management Essay
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With its head office in Oak Brook, Illinois, fast food giant McDonalds has
ridden the wave of global trends towards eating out and fast food since it
took its modern form in the early 1950's. Outside the USA, customers of
the global chain were not, however, only eating hamburgers- they were
"eating and drinking America". In societies that never had enough meat,
the rapid emergence of fast food chains was linked to the availability at
reasonable prices of hot beef and chicken.
By the 1970s and 1980s, McDonald's and its golden arches logo had
become a global brand. By 1996 McDonald's operated in 100 countries
and was finally earning more revenue than McDonald's International
than McDonald's America. In deed the Big Mac had become so globally
recognizable that it was adopted as a measure of purchasing power
across different markets.
Mc Donald's has packaged itself as a multi-local company, which has a
high level of local ownership through a network of franchise outlets. The
products offered are tailored to meet the needs of the local market, for
example, beer is sold at McDonald's in the Czech Republic and different
chicken sandwich are sold in England as compared to Germany. Sourcing
of products is also global in some cases, sesame seeds come from Mexico
but others are local.
Despite its global dominance McDonalds began to see a slowing of its
growth in the late 1990s. By 1996, it reported a decline in sales in the
USA. In part McDonald's become a victim of its own success in that
instead of generating new customers it just spread its existing customer
over more stores so that they did not increase their market shares. In
response to the lost of it market shares and decline in sales McDonalds
lunched a fierce marketing strategy that included extensive promotion
("I'M Loving' It" campaign) , the introduction of new healthier options
and expansion into new markets such as Hong Kong, Singapore, the
Philippines and Malaysia.
Recently, McDonald's fortunes has changed yet again and in the last
quarter of 2008 they announced an increase in sales and profit in the UK
which they attribute in part to the credit crunch as people are now
looking for cheaper eating out options . In January 2009, announced that
it will be opening 1000 new stories across the UK in order to meet
market demand for the brand. (Business: BBC, 2009).
Business Case for a healthier Menu
In recent years there have been numerous campaign and TV programs
feature McDonalds as an unhealthy fast food option. The movie,
SuperSize Me, altered the public to the danagers of eating McDonalds
and explained exactly how unhealthy the fast food is. Research has
shown that a Big Meal contains approximately 2,400 calories, which
equals the recommended calorie intake for a man and excess the
recommended intake for a woman.
Jaime Oliver, in his Channel Four Program, Jamie's School Dinners
further reiterated the damage being done to our bodies by eating
McDonalds on a regular basis. In fact, his research shows that on
average children who ate junk food, such as McDonalds, where often
lethargic and unable to concentrate and has poor academic performance
as a result. Such programs have led consumers to think about what they
eat and they are seeking healthy options that are affordable.
New EU regulation regarding salt and fat content and the removal of the
use of certain oils and fats from fast food, has reinforced the need for
McDonalds to offer its customers healthier options. Additionally, the UK
government, in its drive to reduce obesity and encourage Britons to be
healthier has used companies such as McDonalds as examples of foods
that should be avoid. In 2009, the UK government, in an attempt to
regulate the fast food industry, has set out guidelines for including
calorie and fat contents on the package of meals so that consumer can
make an informed choice.
McDonalds has also seen a decline in its sales due to socio-cultural
factors such as lifestyle changes. Growing health consciousness together
with social and government pressure to eat healthy and reduce the levels
of obesity in countries like the UK and USA has adversely affect the sales
of McDonalds in these markets. Few years ago people start to change
their eating habit, and start eating healthy and vegetarian food. As a
result McDonalds saw a decline in sales in UK, Germany and Japan.
McDonald's, since some of them were offering healthy and affordable
meals. For example , they has phased out the use of trans fats and now
use a new cooking oil designed to make the food healthier without losing
its taste.
While the recent economic recession has seen an increase in McDonald's
fortunes, studies indicated that customer's whiles regarding McDonalds
as an affordable option still regard them as unhealthy and would rather
pay more to have a healthy meal. McDonald's original forage into healthy
eating, by introducing sales, was unconvincing as it was found that these
has as much calories as a Big Mac.
In light of the changing circumstance, McDonalds needs to focus on
introducing a healthier menu by reducing the fat content of its existing
meals and adding healthier options such as salad, low fat sandwiches and
grilling rather than frying it nuggets, chicken and fish burgers.
Research Methods
This research will be conducted using both primary and secondary data.
Primary Data collection
Primary Research: "It is information that does not exist until you carry
out your own investigation" (EDEXCEL HNC/HND, 2004). The mixed
methods approach will be used combining primary and secondary data.
"One of the benefits of this is that it can overcome one of the main
drawbacks of secondary data, which is that it is often not of direct
relevance to your research objective. By using appropriate primary data
to 'plug the gaps' you should be able to obtain the complete picture. This
might be the case where you are researching an issue within an
organisation" (EDEXCEL HNC/HND Business, 2004)
Advantages of primary data
Allows the researcher to carry out research on a specific topic
Greater control over the type of data collected and the sample size
Efficient way of spending time as the data being research is topic
specific
Disadvantages
Time consuming as questionnaires, interview and surveys have to
designed, samples have to chosen, target audience need to be
identified. Collection and analysis of data can take a very long time
Costly- this include costs such as postage, printing material, and
cost of time to conduct the research.
Research bias- the researcher can impose his or her view on the
research subjects
Questionnaires
These are seen as a logical and easy way of collecting information from
people. The research will design a series of questions related to the
research topic and using a survey hand out the questionnaires to the
potential subjects.
Types of questionnaires
Closed questionnaires- this type of questionnaire gives the subject
a list of possible answers to the questions and which they can make
their choice. Close questionnaires are often bias as they have
predetermined answers and often reflect the researcher's view
point. However, close questionnaires are easy to interpret as data
can be easily quantified as a percentage.
Open questionnaires- this is where the answers are not provide and
the subjects need to offer their opinion. This type of questionnaire
provides more information but can be difficult to interpret and may
lead to inaccurate and incomplete assumptions by the researcher.
Mixed-questionnaires- this type of questionnaire allows for the use
of both closed and open question therefore providing the
researcher with a more rounded view of the subjects opinions.
Justification for using questionnaires
Inexpensive to use
Can be used in either small or large surveys.
Close questionnaires are easily quantifiable
Provide large amounts of data
Secondary data
Is the data have already been collected by elsewhere for someone else
for some other purpose, but which can be used or adapted for the survey
being conducted" (EDEXCEL HNC/HND, 2004) Information will be
collected from websites, journal, newspapers etc in relation to
McDonalds.
Advantages of secondary data
Ease to access and less time consuming than primary research as
the data already exist.
Low cost- secondary data collection is much cheaper that primary
research collection
May help to clarify the research question for example by
conducting a literature review this might help the research obtain a
clearer understand of the topic to be researched.
Disadvantages of secondary data
Inconsistency and inaccuracy of data may hinder the research from
getting a clear understand of the research topic and may lead to
incorrect assumptions.
Information is not specific to the researchers need and means that
the research may need to spend a large amount of time sorting
through irrelevant information.
Secondary data may not be timely, that is information could be out-
of-date.
Literature Review
New product development is a company's lifeblood. Growth and profits
suffer without aggressive product development introducing new
product's and services into the market.
All companies need to find out what their customers/potential customers
want in order to meet any gaps in the market. However, asking your
customers to take the role of R&D personnel to find out what they want
will not always lead to success. The key to successful market research for
new product development comes from an understanding of what
customers value and not simply from asking them to submit their own
solutions.
New product development research is not always about looking at the
product in isolation; the product, the packaging, the advertising and the
pricing strategy are all integral parts of the research. Any new product
launch is inherently risky as it is a venture into the unknown.
Competitive Advantage
Jones and George suggest that competitive advantage can be created by
one or more of the four factors: - (Jones & George, 2007)
Efficiency: this refers to the overall efficiency of the organisation by
comparing total income against total costs. They further stated that
the organisation must consider labour costs, the long term benefits
that may result from introducing new technology; possible increase
in income and reduction in cost by improving quality and long-term
benefits such as employee training. McDonalds have been able to
improve efficiency by providing high quality choices that offer
customers a variety of choices to meet a balance as well as
specialist dietary need. For example, McDonalds offer salads, fruits
and fruit juice among its healthy option range to meet customer
needs. Also they are providing transparency on their products by
make customers aware of the nutritional content of all it products.
In addition, McDonalds is investing in its workforce through
numerous training programs to enable employees to better serve
their customers..
Qaulity-this refers to the quality of output in terms of does the
product meet the customer requirements. This aspect emphasis
quality of design, conformance to quality and reliability. McDonalds
has continued to product high quality products that meet customer
needs.
Innovation: this refers to innovation of product, production or
service provision. McDonalds has continued to offer completely
new ranges of products as well as improving or varying existing
ones. For example, McDonalds has focus on reducing the Trans fat
and salt content of its products without changing taste and have
been successful in their use of new healthier cooking oils.
Customer responsiveness: this refers to the organisation
establishing the needs and wants of the customers, developing
products that satisfy those needs and wants, measure the products
in terms of value, quality and customer satisfaction and exchange
of transactions between the organisation and its customers.
McDonalds has mainly focused on this strategy in order to
reposition itself and has done so in the following ways:-
McDonald's have carried out extensive market research to
establish what products their customer's want and has revised it
menu to meet customer demands. For example, McDonald's
experimented with a range of vegetarian meals and where able to
provide a vegetarian menu within 18 months. Also providing lamb
burgers in India in responsive to their religious needs
A change in lifestyle for instance healthier eating habits has seen
the biggest change in McDonalds. McDonalds now offer health
options such as salads, grilled chicken, flatbreads, breakfast
porridges fruits and fruit juices. They even offer concern parents
the opportunity to replace fries with carrot stick. The firm also
dropped it's supersize portions.
McDonalds also launched a campaign emphasising the firm's fresh
and healthier menu with a slogan "McDonald's but not as you know
it" splashed across close up pictures of fruit and salad. (Crane &
Matten, 2007)
Finally, McDonalds' launched an exercise imitative aimed at young
people. The 'what I eat and what I do' campaign intends to show
that there are two sides to a healthy lifestyle- diet and exercise.
(Crane & Matten, 2007)
Michael Porter (1998) argues that there are five forces that affect
competition. He states that"the five-force framework provides the
structure for analysing effect, while activities and the value chain provide
the structure for examining the competitive advantage effect."
Porter's five forces are useful, because it helps to understand both the
strength of your current competitive position, and the strength of a
position you're looking to move into.
1. Bargaining power of suppliers: in this case it is for suppliers to
drive up prices. It is driven by the number of suppliers of each key
input, the uniqueness of their product or service, their strength and
control. Not to be under suppliers control McDonalds are
producing their own products for example potato and might think
of sourcing different suppliers because of the increasing prices of
food and petrol.
2. Bargaining power of customers: in this case prices are driven by
the number of buyers, the importance of each individual buyer to
McDonalds. Due to the credit crunch buyers are choosing
McDonalds as an eating out option since it will cost them more
switching from McDonald's products to those of someone else.
McDonalds is attracting buyers through quantity, pricing and
promotions.
3. Threat from substitute products:this is affected by the ability of
your customers to find a different way of doing what McDonalds
does - it's true that McDonalds prices are affordable but there is a
large number of competitors for example ready meals, sandwiches ,
Burger king this means they are not supplying a unique product so
buyers have the choice to choose other places, and due to the
credit crunch people may substitute by eating at home and not
paying extra money on their meal which might weakens McDonalds
power.
4. Threat of New Entry:Power is also affected by the ability of others
to enter McDonald's market; it will cost them time and money to
compete effectively. Although fast food industry is growing and
showing an increase in sales at the mean time because of their
affordable prices with the credit crunch, it makes it attractive to
new business, but McDonalds have a strong and durable barrier to
entry by dominating the market with established products and
brand equity, so they can make it unattractive to new comers and
preserve a favourable position and take fair advantage of it.
5. Industry for rivalry among existing competitors:the number and
capability of McDonalds competitors are very important- for
example Burger King and KFC, and they offer equally attractive
products and services, If buyers don't get a good deal from
McDonalds, they'll go elsewhere so they need to be continually
innovative new products at regular intervals to attract and retain
customers, focus on below the line promotion strategies for
example buy one get one free.
Socio-cultural influences on consumer buying behavior
Hofstede (1984) defined culture as the collective programming of the
mind which distinguishes different groups. Hofstede identified five
dimensions that explain different cultures:-
Power Distance Index (PDI) this refers to the extent to which the less
powerful accept and expect that power is distributed unequally. Hosfetde
suggests that the societal inequality is endorsed as much by the less
powerful as it is by the more powerful.
Individualism (IDV) - in some society individual achievement and freedom
is paramount as everyone is expected to look after themselves. However,
other society strives for collectivism and people are integrated into
strong cohesive groups which shape their values and attitudes.
Masculinity (MAS) this refers to the distribution of roles based on
gender. In masculine societies the focus is on achievement and power
while in feminine societies the focus is on values such as caring.
Uncertainty Avoidance Index (UAI) this refers to society level of
tolerance for uncertainty. Uncertainty avoiding cultures try to minimize
uncertainty by strict laws and rules, safety and security measures, and on
the philosophical and religious level by a belief in absolute Truth. People
in uncertainty avoiding countries are also more emotional, and motivated
by inner nervous energy. Uncertainty accepting cultures are more
tolerant and try to have few rules that might restrict individual choice.
New Product Development
According to Johnson and Scholes , strategy development is a dynamic
process which should be carried out on a regaular basis , in order that
strategies and plans can be adjusted can be adopted to changes within
the organization itself and within the wider business environment.
(Johnson & Scholes, 2002) .
Strategy development is important in that is will help McDonalds to
identify their:-
Strengths and weaknesses as well as the opportunities and threats
facing the organizations. These give McDonald's an idea of where
potential opportunities for expansion existing as well as it the
company have the necessary resources in place to meet the
changing organizations needs
Organizational capabilities- McDonalds will be able to address
issues as the availability of resources needed for any new product
development.
Environmental forces- by conducting a PESTLE analysis McDonalds
will be able to identify the environmental forces influencing the
company and they can therefore develop and implement strategies
to meet these needs.
Lancaster and Massingham (1988) identified the stages of New Product
Development as follows:
Idea generation- develop new idea for product through customer
survey and brainstorming sessions
Screening new ideas- this stage allows further analysis of the ideas
addressing areas such as target market, size of growth forecasts,
competitive pressure and feasibility of developing the product.
Business analysis- concerns the financial viability of the product.
Forecasting techniques are used to determine the selling prices as
well profitability and breakeven point based competition and
customer feedback.
Product development - this stage is concerned with the actual
development of the product and includes prototype development.
Test Marketing- involves testing the product using focus groups.
Any necessary changes are made at this stage.
Commercialization- this is the final stage of the development cycle.
At this stage the product is launched, the full marketing mix is
engaged e.g. promotion and distribution
The Fuzzy Front End is the messy "getting started" period of new product
development processes. It is in the front end where the organization
formulates a concept of the product to be developed and decides whether
or not to invest resources in the further development of an idea. It is the
phase between first consideration of an opportunity and when it is judged
ready to enter the structured development process (Kim and Wilemon ,
2002; Koen et al., 2001). It includes all activities from the search for new
opportunities through the formation of a germ of an idea to the
development of a precise concept. The Fuzzy Front End ends when an
organization approves and begins formal development of the concept.
Although the Fuzzy Front End may not be an expensive part of product
development, it can consume 50% of development time (see Chapter 3 of
the Smith and Reinertsen reference below), and it is where major
commitments are typically made involving time, money, and the
product's nature, thus setting the course for the entire project and final
end product. Consequently, this phase should be considered as an
essential part of development rather than something that happens
"before development," and its cycle time should be included in the total
development cycle time.
Koen et al. (2001, pp.47-51) distinguish five different front-end elements
(not necessarily in a particular order):
1. Opportunity Identification
2. Opportunity Analysis
3. Idea Genesis
4. Idea Selection
5. Concept and Technology Development
The first element is the opportunity identification. In this element, large
or incremental business and technological chances are identified in a
more or less structured way. Using the guidelines established here,
resources will eventually be allocated to new projects.... which then lead
to a structured NPPD (New Product & Process Development)strategy.
The second element is the opportunity analysis. It is done to translate the
identified opportunities into implications for the business and technology
specific context of the company. Here extensive efforts may be made to
align ideas to target customer groups and do market studies and/or
technical trials and research. The third element is the idea genesis,
which is described as evolutionary and iterative process progressing
from birth to maturation of the opportunity into a tangible idea. The
process of the idea genesis can be made internally or come from outside
inputs, e.g. a supplier offering a new material/technology, or from a
customer with an unusual request. The fourth element is the idea
selection. Its purpose is to choose whether to pursue an idea by
analyzing its potential business value. The fifth element is the concept
and technology development. During this part of the front-end, the
business case is developed based on estimates of the total available
market, customer needs, investment requirements, competition analysis
and project uncertainty. Some organizations consider this to be the first
stage of the NPPD process (i.e., Stage 0).
The Fuzzy Front End is also described in literature as "Front End of
Innovation", "Phase 0", "Stage 0" or "Pre-Project-Activities".
A universally acceptable definition for Fuzzy Front End or a dominant
framework has not been developed so farIn a glossary of PDMA, it is
mentioned that the Fuzzy Front End generally consists of three tasks:
strategic planning, concept generation, and, especially, pre-technical
evaluation. These activities are often chaotic, unpredictible, and
unstructured. In comparison, the subsequent new product development
process is typically structured, predictable, and formal. The term Fuzzy
Front End was first popularized by Smith and Reinertsen (1991)
R.G.Cooper (1988) describes the early stages of NPPD as a four step
process in which ideas are generated (I),subjected to a preliminary
technical and market assessment(II) and merged to coherent product
concepts(III) which are finally judged for their fit with existing product
strategies and portfolios (IV). In a more recent paper, Cooper and Edgett
(2008) affirm that vital predevelopment activities include: 1)Preliminary
market assessment. 2)Technical assessment. 3)Source-of-supply-
assessment:suppliers and partners or alliances. 4)Market research :
market size and segmentation analysis,VoC (voice of customer) research.
5.Product concept testing 6.Value-to-the customer assessment 7.Product
definition 8.Business and financial analysis. These activities yield vital
information to make a Go/No-Go to Development decision. In the in-depth
study by Khurana and Rosenthal (1998) front-end activities include
product strategy formulation and communication, opportunity
identification and assessment,idea generation,product definition,project
planning,and executive reviews. Economical analysis, benchmarking of
competitive products,and modeling and prototyping are also important
activities during the front-end activities. The outcomes of FFE are the
mission statement,customer needs,details of the selected concept,
product definition and specifications, economic analysis of the
product,the development schedule,project staffing and the budget,and a
business plan aligned with corporate strategy. In a paper by Husig, Kohn
and Huskela (2005) was proposed a conceptual model of Front-End
Process which includes early Phases of Innovation Process. This model is
structured in three phases and three gates: Phase 1: Environmental
screening or opportunity identification stage in which external changes
will be analysed and translated into potential business opportunities.
Phase 2 : Preliminary definition of an idea or concept. Phase 3 : Detailed
product, project or concept definition, and Business planning. The gates
are : 1) Opportunity screening;2)Idea evaluation;3) Go/No-Go for
development. The final gate leads to a dedicated new product
development project . Many professionals and academics consider that
the general features of Fuzzy Front End (fuzziness,,ambiguity, and
uncertainty) make difficult to see the FFE as a structured process,but
rather as a set of interdependent activities ( e.g.Kim and Wilemon ,2002).
However, Husig et al.,2005 [10] argue that front-end not need to be
fuzzy,but can be handled in a structured manner.Peter A.Koen (2004)
argue that in the FFE for incremental,platform and radical projects,three
separate strategies and processes are typically involved. The traditional
Stage Gate (TM) process was designed for incremental product
development,namely for a single product.The FFE for developing a new
platform must start out with a strategic vision of where the company
wants to develop products and this will lead to a family of products.
Projects for breakthrough products start out with a similar strategic
vision,but are associated with technologies which require new
discoveries.It is worth mentioning what are incremental,platform and
breakthrough products. Incremental products are considered to be cost
reductions, improvements to existing product lines,additions to existing
platforms and repositioning of existing products introduced in markets.
Breakthrough products are new to the company or new to the world and
offer a 5-10 times or greater improvement in performance combined with
a 30-50% or greater reduction in costs. Platform products establish a
basic architecture for a next generation product or process and are
substantially larger in scope and resources than incremental projects
(Koen, Peter A., 2004 )
Analysis and Finding
In March 2003, McDonald's added several healthier items to its menu.
These items include a line of premium salads for adults, and 1% fat milk
and fresh apple slices as Happy Meal options for children. McDonald's
has also eliminated its supersize drink and French fries options.
As of November 1, 2004, McDonald's had sold 200 million salads, and
anticipated selling 35 million pounds of apples during 2004. Sales of 1%
fat milk sold in Milk Jugs bottles have more than doubled since their
introduction in 2003. McDonald's efforts to increase healthy menu
options have also increased sales. The company reports new, healthier
products have been profitable for their bottom line.
The company reported a fall in profits - to $471m (£290m) in the
three months to end-June, from $498m a year earlier - but was
encouraged by an 11% jump in sales.
It attributed falling profits to the high costs of restructuring its business,
including the closure of hundreds of restaurants and investment in new
products.
These new products, which are deliberately slanted towards healthy
eating, have sold well, the company insisted.
McDonald's financial performance in recent years has suffered from the
perceived dreariness of its traditional menu.
And investors have become afraid of lawsuits from obese customers,
some of whom blame the chain for their expanding waistlines.
'Only the beginning'
"I'm pleased with the strong customer response to our innovative new
products," said chairman and chief executive Jim Cantalupo.
" But I'm far from satisfied. This upturn reflects only the beginning of our
worldwide revitalisation plan."
Part of this plan is a drive to invest in new products, and to market them
aggressively.
Mr Cantalupo heaped praise on launches such as the "McGriddle"
breakfast concept, and the roll-out of wi-fi internet access in some US
restaurants, both of which, he said, chime with changing lifestyles.
The other part of the recovery plan involves far tighter control of
spending.
The pace of restaurant openings is being reined in: last year, the firm
opened 1,000 more outlets than it closed; in 2003, the net increase will
be just 360. (www.mcdonalds.com, 2009)
Research indicated that 35% of people who currently do not purchase
McDonalds would do so if they had healthier options as they were
cheaper than many other restaurants. Additional, 67% of existing
Customers indicated that they were concerned about their health and
would purchase healthier options if they were available and attractive.
Customers still want to enjoy the eating out experience during the
economic recession and see McDonalds as a viable option. However,
concern over the high fat and calorie content of McDonalds food have
deterred individual who are health conscious and want to eat health.
Introducing more healthy options such as a variety of salads and healthy
kids meal can see a potential increase in McDonalds sales.Introducing
healthier options will allow McDonalds to increase their customer base
and attract new customers so that they can expand through product
development.
Marketing Strategy
Ansoff Matrix
The Ansoff matrix is a tool that helps businesses decides their market
growth strategy and their product. It presents distinct opportunities,
threats, resource requirements, returns and risks. (Hollensen, 2003)
Market penetration strategies
This is the most frequently used strategy and focuses on increase market
shares. This can be done by attracting new customers or increasing sales
to existing customers. For example, the introduction of the adult burger
and redecorating the restaurant to make it more attractive to adults.
Market development strategies
This entails marketing existing products to new customer groups and
regions. This strategy requires the full implementation of the marketing
and focuses on finding new markets, distribution channel and promotion
strategies as well as products specialisation. For example,open in new
market example Singapore and Hong Kong and adapting products to suit
culture needs.
Diversification Strategies.
This concerns the development of new products for new markets. This is
the most risky options, especially when the entry strategy is not based on
core competences of the business. McDonalds has used vertical
integration by purchasing the own potato farm as well as the factory for
production of the own chips.
Marketing Mix
This following marketing mix will be used for McDonalds new Healthier
Menu.
Product: McDonalds, will be offering a wider variety of salads and
fruit options. This will be offered on two scales Salads for adult and
fruits and fruit juice in kid's meals instead of chips and sodas.
Distribution: McDonald's will sell these products throughout it
franchised stores
Price: due to the unique quality of unique of the products
McDonalds will use a premium pricing strategy with salads and
healthy sandwiches. However, they will maintain their value
pricing strategy with regards to the kids meals as fruits and fruits
will be replaces existing foods in the meal package and are not
additionally options. ..
Promotion: McDonalds will market its Healthier menu using a
range of techniques for including advertising, publicity, partnership
and sale promotion. TV, Newspaper and posters will be used to
promote the product. They will also attempt to reform it's strategic
alliance with Disney to help promote the new kids meal by offering
Disney character as part of the meal package.
Resources Needed
Financial resources- The development and introduction of a new menu
will require financial investments. McDonalds will either have to source
money from existing funds or from external investors.
Monitoring and review
Sales:- McDonalds will review its sales at the end of 6months to see if
there have been an increase in the number of healthy foods sold as well
as overall sales. Volume of new menu sales will indicate that the new
products have been successful and management can then decide if to
continue with the products.
Customer feedback: McDonalds will conduct a post-implementation
questionnaire and focus group to determine what customers think about
the healthier menu. This will give the company and indicate as to
whether people like the healthier option. Also it will tell them if they have
attracted new customers and have therefore grown as a result of the new
products
References
1. ^ Ulrich, Karl T. and Eppinger, Steven D (2004) Product Design
and Development, 3rd Edition, McGraw-Hill, New York, 2004
2. ^ Ullman, David G. (2009) The Mechanical Design Process, Mc
Graw-Hill, 4th edition
3. ^ Kim, J. and Wilemon, D. (2002), Sources and assessment of
complexity in NPD projects. R&D Management, 33 (1), pp. 16-30.
4. ^ a b Koen et al. (2001), Providing clarity and a common language
to the 'fuzzy front end'. Research Technology Management, 44 (2),
pp.46-55
5. ^ Smith, Preston G. and Reinertsen, Donald G. (1998) Developing
Products in Half the Time, 2nd Edition, John Wiley and Sons, New
York, 1998.
6. ^ Husig and Kohn (2003), Factors influencing the Front End of the
Innovation Process: A comprehensive Review of Selected empirical
NPD and explorative FFE Studies ,Brusell,Juni 2003,p.14.
7. ^ Smith,Preston G., Reinertsen Donald G.(1991) Developing
products in half the time, Van Nostrand Reinhold,New York
8. ^ Cooper,R.G. Predevelopment activities determine new product
success, in: Industrial Marketing Management,Vol.17 (1988), No
2,pp. 237-248
9. ^ Cooper R.G., Edgett, S.J.(2008), Maximizing productivity in
product innovation, in: Research Technology Management,March
1,2008
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