The Arch Deluxe was a quarter pounder hamburgers with a slice of peppered bacon, leaf lettuce, onion and tomatoes served on a potato bun with sesame seed’s the hamburger was served with cheese and a honey mustard sauce.
McDonalds conceived the idea for the Arch Deluxe in an attempt to win over he more taste perceptive adult. This burger was marketed as “The Burger with the Grown-up Taste”. It was burgers that would definitely not appeal to children and seemed an attempt to make McDonalds a place that taste savvy grown-ups might go for children even if they didn’t have children. McDonalds was looking to upgrade the image of the fast food restaurant to appeal to a more sophisticated customer and to offer a bit more choice.
The reasoning behind McDonalds decision to add the Arch Deluxe included demographic informational and trends that indicated longer life spans. McDonalds felt that this could mean more adult coming to McDonalds and the need for more choice and adult sandwich offerings. McDonalds hired well-known chef Andrew Selvaggio to create a new line of burgers for a more taste-sophisticated consumer. The Arch Deluxe was marketed in 1996. McDonalds used a very pricey marketing campaign to let people know about the new addition to the menu in an attempt to draw new customers.
1.Reasons for new product failure
Products are generally associated with a particular branding. This brand was developed as an attempt to help new products acceptance, to improve the chances of success. The brand made the overall company line of product familiar. Ronald McDonald and the golden arches helped McDonald establish the brand, trust and familiarity to the public. The trouble, at times with branding is that it can in effect; pigeon hole a company and make it difficult for He Company to expand markets. McDonald attempted to reach a more sophisticated, taste conscious adult with the Arch Deluxe. Unfortunately for McDonald, those consumers don’t see themselves at McDonalds and so the campaign and the Arch Deluxe hamburger was a failure.
Products can also ail due to poor advertising that is confusing or simply does not attract the customer. Products often fail because the company fails to truly know its customers and its brand.
2. Failure of the Arch Deluxe
Of course that attraction of McDonalds is not sophistication or five stars tastes. . The draw to the quick meal is the quick meal that appeals to families and is inexpensive. The limited menu is also part of the appeal. McDonalds was trying to add something new to the menu and was marketing it in part, on the fact that it tasted good. McDonalds didn’t seem to recognize that taste isn’t really the main traction to the restaurant. . Critic of the Arch Deluxe included comments about the reason people come to McDonalds. What McDonald provides is fast, friendly, consistent simple food for a value. Critics said that McDonalds was loosing touch with their market and with their own business brand.
Interesting to note that the Arch Deluxe was developed in the corporate office, where the more successful menu additions such as the apple pie and fish fillet were developed in kitchens in the field. Though McDonald did ample product research on the Arch Deluxe and found that people responded well to the taste, the fact of the matter was that people weren’t looking for that type of burger at McDonalds
McDonald should have stuck with what they were good at and developed products that kept in mind their brand and their customer.
McDonalds is know for simple food and should stay with that type of product.
McDonalds is known as family friendly environment with food that children like. Developing foods that are not child friendly will be difficult to market or McDonalds.
McDonalds was looking to attract an older adult consumer with perceptive taste buds. However, they did not take into account that these consumers are also health conscious and the Arch Deluxe was survey not a healthy choice.
3. Observation & Conclusion
The advertising campaign was led by Peter Colligate, known for his unconventional approaches. The campaign focused on children looking at the sandwich with confusion and disinterest. The idea was clearly to make this an adult burger. The lack of success with this advertising tactic led McDonalds to switch to a conveniently advertising effort which included Ronald McDonald in a more adult role, playing golf and dancing at a nightclub for example.
Businesses must really understand their band and their consumers. Product failure can be the result of simply loosing the focus of the business brand. Loosing sight of what the customer expects. A McDonald’s customer is looking for a simple meal and a reasonable price. They want to come n or drive and up and order quickly. Customers aren’t looking or a lengthy menu with too many choices.
Families on the go look forward to a quick decision and a fast friendly response to their order. Customers are also looking for value. The success of the “dollar menu” tells one that fact. Buying a sandwich at McDonalds that would have been the same price at a nicer restaurant can feel like a bad value to a true McDonald’s customer. They are looking for the dollar menu.
McDonalds must be certain it knows it audience and its consumers. In the future, assuming the relatively stable branding of McDonalds, they will want to stay within a certain range of products. Products must be inexpensive, familiar and now they must also be somewhat healthy.
Haig, Matt, Brand Failures, 200 Kogan Page.Brand Failures: The Truth about the 100 Biggest Branding Mistakes of All Times
Lubow, Arthur, Steal This Burger, The New York Times Magazine April 1998