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Mcdonalds Arch Deluxe Essay

1537 words - 7 pages

Individual Innovation Paper
McDonald’s Arch Deluxe

EXECUTIVE SUMMARY
Individual Innovation Paper: McDonald’s Arch Deluxe Analysis - Why It Failed
INTRODUCTION
McDonald’s has been in the hamburger business since the 1950’s and grown into a world-wide fast-food giant known for “Quality, Service, Cleanliness and Value”. As the McDonald’s empire grew so did their menu, it adapted to the tastes of their customers. In 1996 McDonald’s launched the Arch Deluxe; their answer to what adults want to eat. The public did not agree with McDonalds and the product was not successful.
CAUSE OF PRODUCT FAILURE
McDonalds advertising tried to show that the new Arch Deluxe was fancier than their ...view middle of the document...

They kept the same simple menu and efficient operating style that worked for the brothers and began opening McDonald franchised operations. According to the McDonalds corporate website today, “80% of McDonalds restaurants are franchised worldwide, in 100 countries, 36,000 locations and have 69 million customers a day” (Mcdonalds.com). The guiding principles used to build this successful global brand are “Quality, Service, Cleanliness and Value” (Mcdonalds.com) they also built a strong and reliable supply chain, along with training on a standardized training on how the food is made, how the restaurants should look and even down to the customer service. The goal was for the customer to have the same experience no matter which restaurant they went to in any state. As the McDonald’s empire grew so did their menu, it adapted to the tastes of their customers. Like any business, McDonald’s has added and dropped menu items to try and stay with the current times. If you look at their current menu they have their traditional hamburgers and lots of other options like chicken sandwiches, wraps, breakfast, specialty coffee drinks, fish sandwich, salads and desserts, something for everybody. Some items are cheap, they still have a value menu but other items are competitively priced. In 1996 McDonald’s wanted to do something different, they wanted to create a product specifically for the parents, they created the Arch Deluxe. They thought it was an upgrade to what they had on the menu, fancier bun and a secret sauce with lettuce, onions and tomato, even had it created by a chef. They advertised the heck out of it, using television commercials with kids not liking the hamburger their parents were eating and marketing it as a gourmet burger. McDonalds invested in advertising, did all the right things with test groups and marketing and the burger still failed.
CAUSE OF PRODUCT FAILURE
So what went wrong? Doing an Ishikawa root cause analysis model there were a number of factors that played into creating the Arch Deluxe and a combination that caused the failure.
Materials McDonald’s Arch Deluxe
McDonald’s Arch Deluxe
Environment

Good tasting Family friendly
Ingredients. fast food
560 Calories restaurant

Strong Marketing Had test groups
Reacting to thinking Had a chef create
They needed to create a fancy burger
Adult food options for adults

Management Methods

With materials, the ingredients they chose for the Arch Deluxe were good and tasty but not fancy. The environment does not change when you add a new menu item, it’s still a family friendly fast food restaurant. The methods they used were good, lots of testing and the test group liked the burger. Management had a strong marketing campaign, spent a lot of money promoting an adult gourmet burger option. According to Bhasin (2011), “It’s been considered one of the most expensive product failures in McDonald’s history,...

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