MKT 618 Final Project Milestone Two (1)

MKT 618 Final Project Milestone Two March 19, 2023 Shane Presnall
New Product The newest vegetarian sandwich option at McDonald's, the McTurkey, will serve as a way to simultaneously address a growing preference in the company's target audience and to step up against some of the industry's top competition. For the world's top ranked fast food chain, McDonald's has to constantly adapt to the changing factors in the environment to maintain its spot. Consumer dieting habits, for instance, have undergone a significant transformation in the past ten years. More detailed information about the positive and negative effects of food nutritional values causes people to make healthier choices when it comes to the foods they ingest. Studies show that younger demographic groups between the ages 18-40 follow a healthier diet over age groups. In the past two years, the percentage of those in the Gen Z and Millennial age groups who claimed to either diet or count calories rose from 39% to 52% (Pike, 2022). Brand exposure gained from a new staple vegetarian product will skyrocket as consumers across the world flock to one of the 40,031 locations across 119 countries to try out the company's latest answer to their growing wants and needs (McDonald's Corporation, 2022). Competitors, like Burger King, already dominate the market with the Impossible Burger. McDonald's needs to develop the McTurkey so no customers are lost to Burger King. Analysis of 4Ps The McTurkey, the vegetarian sandwich option at McDonald's, will contain ingredients different from the ones found in the high-calorie beef burgers on the menu. One of the major features of the new good is the soy plant protein, which is rich in fiber, magnesium, and iron (Klapholz, 2021). A natural yeast extract flavor, called heme, will give the sandwich a distinct, healthy taste that consumers are looking for. The price of the McTurkey will be based on competitive pricing, cost of production, and
company's positioning strategy. In 2021, Burger King's Impossible Cheeseburger was Grubhub's most popular purchase for the entire year (Rabb, 2021). The plant-based burger is listed at $7.29 on the menu, compared to the beef Whopper at $4.19. Classic beef burgers are $2.08 cheaper to produce than vegetarian and plant-based alternatives, but the 54% upcharge for the Impossible Burger may be too costly for some consumers (Piacenza, 2019). McDonald's is widely-known in the fast food industry for its positioning strategy as a cheap, family-friendly restaurant. Even though production costs might be higher, McDonald's has the resources necessary to accept lower profit margins if it means it can maintain its control on the massive customer base. Therefore, considering the fact that Big Macs are currently sold for $3.99, the McTurkey will be sold for $6.49 to both undercut Burger King and mitigate higher production expenses. McDonald's will continue to use its intensive distribution strategy to maintain upkeep for all of the locations operating around the clock. Customers throughout the world will drive demand for the new product constantly so the company will use all available channels of distribution to make sure that supply keeps up. Promotion of the McTurkey will feature recent strategies of other McDonald's products such as digital marketing on social media and television ads. Facebook, Twitter, and Instagram will post content related to the product's image, purpose, and hashtags to track identifiable key performance indicators like shares, follows, and retweets. Additionally, McDonald's will purchase advertising spots on national television networks during primetime hours. A video featuring Morgan Spurlock from the movie "Super Size Me" will show a time lapse of Spurlock eating McTurkeys for a month and not gaining any weight, unlike the massive weight gain he had after eating regular burgers. Product Life Cycle
Uploaded by DukeScienceGerbil5126 on