Description
Select an organization that has introduced a product or service project that has failed (See Below)
Arch Deluxe
Company: McDonald’s
Year released: 1996
Revenue yr. released: $9.8 billion
The Arch Deluxe was a quarter-pound burger McDonald’s released in 1996. The Arch Deluxe came with lettuce, onions, tomatoes, ketchup, and a mayonnaise-dijon mustard sauce on a potato bread roll. McDonald’s spent $100 million advertising the burger specifically to adults, considerably more than it had on its other burgers. Instead of showing satisfied adults, billboards and TV ads depicted children disgusted with the new burger. It appears that most adults, however, were not convinced they should want the burger simply because kids didn’t want it. The Arch Deluxe was also more expensive. It cost at least $2.29, compared with the Big Mac, which cost just $1.90 at the time. The burger’s failure was so monumental that McDonald’s completely reversed its strategy of introducing pricier items. In 1997, the company released a 55 cent Big Mac and tried other dramatic price cuts.
In 200 words, Discuss how the selected organization's product or service project failure could have been avoided.
Explanation & Answer
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Report: Rescuing troubled projects
Rescuing troubled projects
by HAL
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