Chapter 8 Case analysis:
Within your studies of the new product developmentprocess, look at the following mini cases and answer the questionsthatfollow:
McLobsters Case
Fill in the blanks with the stage name ofthe new product development process :
When you're a giant company like McDonald's, with locations allover the globe, you can perform test marketing in your own stores.Take the McLobster for instance. I'm sure it began during an_____ _________. They must have said, "Hey, whatis missing in our Canadian/New England market?" Or maybe it iscoming from a consumer or supplier. Either way, the McLobsterpassed the ___________ stage "which helps spotgood ideas and drop poor ones as soon as possible."
Next, came the _________________, "a detailedversion of the idea stated in meaningful consumer terms." Thiswould go something like, "The McLobster: real Atlantic lobsterspread over the length of a bun and smothered in creamy, whiteMcLobster sauce...mmm, I'm lovin' it!"
Eventually, after the _____________________ stagewhere McDonald's described their target market, the planned valueproposition, and the sales, market share, and profit goals.Finally, they would have performed a________________ on the McLobster, reviewingsales, costs, and profit projections to see if they fit with theobjectives of the company.
McDonald's wouldn't then just commercialize the product to everyMcDonald's that serves to their target market, they would firsthave to do _______________, byintroducing the product and marketing program into real marketconditions. Here, they would offer the McLobster at certainlocations within their target market.
The McLobster must not have been profitable enough to masscommercialize, but to my understanding it has been re-introducedover the years as a seasonal product.
Now answer the following questions:
- State 3 (three) of the external sources for ideas?
- Explain two reasons for new products to fail.
- Explain 2 important considerations in thecommercialization stage. (2 mark)
- As a marketing manager for McDonalds, explain how yourcompany will apply the concept of social responsibility
