Mcdonalds and the Hotel Industry Case Study Analysis Essay

1078 Words Mar 24th, 2008 5 Pages
McDonald’s is one of the world’s strongest and most recognizable brands for its “world’s best quick service restaurant service experience” (Vandenbosch and Mark). This case study states that McDonalds plans to extend its brand into the hotel industry by opening a hotel in Illinois. The authors look at the hotel venture’s positioning options and the McDonald’s brand extension into a different product class. In order for McDonalds to successfully extend their brand into the hotel industry, they must manage their growth wisely, rely on the strength of their corporate brand, and consider what their customers really think their brand is. In the end, they must make sure that the extension of their brand brings meaningful perceived value to the …show more content…
McDonalds should build on their unmatchable expertise in serving customers and making them feel at home. The segment that they should compete in is in the range of upscale, four-star hotels, targeted at business travelers during the week and at families and young adults on the weekends. With the destination for 60 percent of all person trips being Chicago and the area (Vandenbosch and Mark), I believe that McDonald’s should place their hotel in Chicago so that they can capture the majority of business and leisure travelers in Illinois. Having a location close to the airport (providing easy access for the business travelers) yet close to the downtown core (for the leisure travelers who want excitement in the city) would be beneficial to the hotel. In order to cater to the business clientele, McDonald’s Hotel should have conference and meeting rooms, upscale accommodation and top of the line technologies including internet access in each room. Amenities in each room would include hair dryers, microwave, refrigerator, irons and ironing boards. They would also be equipped with a desk, and state of the art beds and furniture. They should rate their rooms at an affordable price in order to have a competitive advantage over other upscale hotels in the area. The major component of the hotel would be the McDonalds restaurant in the lobby of the hotel. Room service would also include food from the restaurant. In-house

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