Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(I just need a response to this below) Big Mac Sauce By creating this new pre-packaged product, the Big Mac Sauce, McDonald's was implementing a

(I just need a response to this below)

Big Mac Sauce

By creating this new pre-packaged product, the Big Mac Sauce, McDonald's was implementing a category extension. The company was now entering into the pre-packaged condiments and sauces industry; as opposed to the fast-foods industry, it's mainstay.

Advantages into entering this new market, included the utilization of nostalgia for the Big Mac, to revitalize the McDonald's brand as a whole. Awareness and purchasing of this product, could possibly attract both new and former customers to both this new condiment and possibly to the parent fast-foods brand as well. The release of the Big Mac Sauce could also precipitate the release of future "secret sauces" that consumers would love to have in their own kitchens (as evidenced by the Filet-o-fish sauce and McChicken sauces).

Possible disadvantages of the release of the Big Mac Sauce, include a possible dilution of the overall meaning of the McDonald's brand. Additionally, if negative associations exist for McDonald's customers, this may of course be transferred over to the brand extension (or from the extension to the parent brand).The limited availability of this sauce (only sold in Canadian market) can frustrate consumers, and possibly cause competitors to create their own version, and thereby dominating the US market in this category.

A category extension such as this would seemingly be a good thing for the parent brand equity. This type of extension makes sense, because the secrecy around the Big Mac Sauce recipe for so many years has created a craze amongst certain loyal customers who desire this taste in their own kitchens. However, the quality and recipe of the sauce that is put on shelves in the stores, must match that which is on the prepared foods, which may be an issue. Setting up the actual manufacturing process of preparing, bottling, and shipping such prepackaged items, would also be a difficult undertaking. Potential profits from such a venture, however, (especially if sold in such retailers as Target and/or Walmart) would probably be worth the initial investment.

The release of the Big Mac Sauce in the US market would most likely be a success. There is a cult-like following that not only loves the Big Mac, but desires to recreate the sauce. Plus, this would be a way for consumers who may want to eat healthier and would not visit McDonalds, to purchase a condiment full of nostalgia and implement that into their meals as well. If done properly, the release of this sauce could do well in the US market.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Hospitality Marketing

Authors: David Bowie, Francis Buttle

3rd Edition

1317403495, 9781317403494

More Books

Students also viewed these General Management questions