McDonalds Entry into Hotel Industry

McDonalds Entry into Hotel Industry

McDonalds Entry Into the Hotel Industry
Harvard Business Case

1. Describe McDonald’s brand image. What are the core associations? What are the secondary associations? Does it differ by segment—adults vs. children?

Core associations – quick, convenient, consistent, Value for money, fun, kids-focus

Secondary associations - Golden arches, red yellow, friendly, clean, fast food,

Adult – quick, convenient, consistent, Value for money
Kids – Happy place, toys, good food.

2. What elements of McDonald’s brand image could be leveraged into the hotel industry? Which elements cannot be leveraged?

Can leverage - Value for money as in affordable, quick, service, friendly,
Cannot leverage – value for money as in cheap, quick? Expectation is attention and service.

3. Consider the seven hotel segments described in the case. Thinking about McDonald’s brand image, as well as competition, what segment(s) would be the most reasonable for a McDonald’s extension into the hotel industry? What segment(s) would not be reasonable?

Economy segment or Mid-market with Food and beverage.
Family-oriented direction
They could use their site development expertise to appeal to travelers
Avoid the high cost and inexperience of luxury accommodations
Add entertainment which other hotels do not provide especially for kids - incorporate the Play Place for kids and for adults a game room with pool tables and electronic darts

4. Name 2 ways that McDonald’s could increase their success in the hotel market using the strategies suggested by the readings for this week. Be as specific as possible

1. The dimension of fit between parent brand and extension is of “Transfer” of skills like real estate management, franchisee management, hospitality, quick service. Increase the exposure of ads that evoke appropriate parent-brand associations that help consumers to establish linkages between them.
2. May help as an introductory strategy to protect it from...

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