MG11. Original work only, APA FORMAT. Thank you (:
1. Read Case 1 from “Part 6: Making McDonald’s Recession-Resistant” on page 448, and answer the questions below in essay format. 2. Your essay must include an introduction, body, and conclusion, and it must address all relevant parts of each question. Make sure to cite any references you use. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number. Essay Questions a. Assess how well the McCafé line of coffees and the fruit-and-maple oatmeal products b. What are the advantages and disadvantages of McDonald’s adopting an everyday value fit with McDonald’s overall merchandising strategy pricing strategy vs. using a continuous stream of promotions? c. What are the downsides of McDonald’s having too many products?
Expert Answer
a.
Merchandizing strategy is the company wide approach on how the products are to be be placed or portrayed in front of the customer, so as they have a lasting impact and initiate purchase.
McDonald’s merchandizing strategy is to deliver quickly and deliver tasty food. On both the counts McCafe line of Coffees and fruit and maple oatmeal products are all delivered within 1.5 minutes and all of these were liked a lot and has so contributed to the growth of the company in the recent past.
So, McCafe is fully inclined with the strategy and also helps them become recession resistant.
b.
The advantages are:
It provides stability to business by regular flow of demand
Forecasting is more accurate and so wastage is also minimized
It reduces advertising cost
Reduces the dependency on franchisees to adopt offers
The disadvantages are:
Increased sales on specific time and product is not possible.
C.
The downside of having too many products is that there is duplication of several products. Customers might not be fully aware of the product types, leading to confusion.
Managing the inventory, sales and forecasting is more complicated.
So, they need to regularly review the range of products to seek the demand and change the offering accordingly.