McDonalds and the hotel industry

Hand-in Assignment # 2 – McDonald’s and The Hotel Industry


1.0 Key Issues 1
2.0 Recommendations 1
3.0 Analysis 2
3.1 The category 2
3.2 Brand Extension 3
3.2.1 Advantages 4
3.2.2 Disadvantages 4
3.3 Target Consumer 5
3.3.1 Target consumer profile 6
2.4 Segments 6
2.5 Features 6
2.6 Location 7
2.7 Pricing 8
Exhibit # 1


1.0 Key Issues
The most important issue is to examine the possibilities for McDonalds to extend in to the hotel business. As pointed out by the industry observer the key issues in relation to the extension are:
• Identification of target market
• Identification of segments to compete in
• Decision on which features the hotel should have
• Recommendation of possible location
• Price level of rooms
2.0 Recommendations
A number of strategies can be pursued to establish a category extension. The strategy McDonalds is recommended to choose is to introduce a pro...