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Golden Arch Hotel Case Analysis

Autor:   •  December 28, 2017  •  859 Words (4 Pages)  •  1,007 Views

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of their fast food franchise success. McDonalds is a restaurant whose market segment is economical and upper middle class people. A lot of business people do not chose McDonalds as their restaurant of choice, therefore, they will not take a hotel as serious. Also, it was stated in the article that a lot of business people do not take the hotel as serious because of the fact that when they see the famous arch or know that it is a “McDonalds” hotel, they can only think about cheeseburgers and Ronald Mcdonald. Business people tend to like fancy dinners with business partners; Golden Arch only offers McDonalds as its dining restaurant. Layover people want to be close to the airport, and Golden Arch is 5 miles away while there are hotels at a way closer distance to the airport. McDonalds is family friendly, economical, and extremely successful; therefore, Golden Arch’s market segment should be the same as McDonalds.

3b) How do you assess McDonald’s branding strategy?

I think McDonald’s branding strategy is very valuable; it is amazing and successful. They have bright colors, red and yellow, that attract children and families. Their prices are very economical and they offer fast and friendly service. They use a clown as their character, obviously to attract children and families. Many McDonalds also offer playpens, again, to attract children.

Golden Arch however, however, has not been branded as a hotel for business people. As I mentioned before, their intended target are business travelers. Golden Arch should have not included the arches or the colors or McDonalds as their only restaurant option if they wanted to appeal to upper class and business people. If they wanted to incorporate the whole McDonald’s idea and style, then they should have marketed the same targets they marketed for McDonalds

4) Was Switzerland the best market to enter?

List the Pros good things vs. the Cons as you address this question.

I do not think Switzerland was the best market to enter. In my opinion, Golden Arch would have been a lot more successful in USA, not as a regular hotel like the Hilton hotel or Marriot, but as a hotel in amusement parks such as Disneyland or near tourist locations. There are not many McDonalds in Switzerland, therefore people will not pay much attention to this Hotel. The pros this hotel, is that is it located near the airport and many people who travel from USA might find comfort in this hotel due to their familiarity with McDonalds.

5a) Was the main problem strategy, execution, or something else? Explain.

I believe the main problem was their segmented market. It was very easy for people to relate Golden Arch to McDonalds; therefore it attracted more of McDonalds segmented market instead of Golden Arch’s intended segmented market. There were several problems with the hotel, such as the showers, the location, the lack of restaurant choices and much more, but I believe that if the segmented market would have been economical and middle class, then those problems might not have been as big.

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