McDonald's: Innovation, Commercialisation & Business Development

This report provides an analysis of McDonald's innovation and commercialisation strategies, focusing on the importance of the commercial funnel and its application in new product development. It examines the process of building an innovation business case for McDonald's, including different ways to access funds such as crowd funding, bank loans, and angel investors. Furthermore, the report evaluates the various tools used by the organisation for developing, retaining, and protecting its intellectual property, including trademarks, patents, and copyrights. The analysis incorporates concepts like STP (Segmentation, Targeting, Positioning), the marketing mix (Product, Price, Place, Promotion), and a SWOT analysis to provide a comprehensive overview of McDonald's strategic approach to innovation and commercialisation.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
P5. Explanation of importance of commercial funnel and application of new product
development...........................................................................................................................3
P6. Building an innovation business case for an organisation including different ways to
access funds............................................................................................................................4
P7. Evaluation of different tool used by organisation for developing, retaining as well as
protecting intellectual property ..............................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation is a process of introducing something new in market which can be new ideas,
products (Bakhtiari and Bruno, 2020). It can also be done by making modification or
improvement in existing products and service. This project report includes analysation of
McDonald which is American restaurants. It was established in the year 1970 by Richard and
Maurice McDonald. This project report includes importance of commercial funnel and its
application in new product development. It consist innovation business ways along with ways of
accessing funds. Moreover, it evaluate tool used by organisation for developing and retaining
intellectual property.
TASK
P5. Explanation of importance of commercial funnel and application of new product
development
Commercial Funnel: Commercial funnel refers to visual metaphor for path which is taken by
customers to become of customer (Bansi, 2019). It is used for purpose of sales as well as
marketing organisation which helps companies for understanding as well as visualising sales
process that measure conversion success among each steps of funnel. It is important for business
of McDonald for various reason which are as follows:
Helps in developing marketing strategy: It helps is developing effective marketing strategy as
it assist entrepreneur to analyse and understanding different business model as well as marketing
model which helps to get success. McDonald is developing marketing strategies to convert
customers to actual sales.
Helps to relate product with customers: Commercial funnel helps business to related their
products as per needs of customers as there are different ways in which an organisation describe
their content, communicating to their clients and producing content which can create impact on
sales of McDonald.
Helps to increase sales: Commercial funnel also helps managers of an organisation to
understand needs of customers which helps them to increase sales of products in market.
McDonald is working on needs of customers as they are understanding of needs of healthy food
of customers.
New product development:

New product development is a process of introduction new products in market by renewing
existing product or through introduction of a products in completely new market. It is an
important process which is consider by an organisation due to increasing competition,
advancement in technologies, changing needs and wants of consumers and capitalising new
opportunities. For developing new products managers of McDonald needs to follow certain steps
which are mentioned below:
Idea generation: In this step, managers of McDonald needs to develop numbers of ideas which
can be done through competitors, employee, suppliers, customers (SeptemberHo and Chuah,
2018).
Idea screening: Idea screening is a processes in which managers of McDonald filter different
ideas in order to select idea which best suit to needs of customers. McDonald has selection ideas
in which they will offer fusion of healthy as well as fast food.
Concept development: In this step, managers of McDonald will develop detailed concept of
products. In this managers decide, which types of salad they should choose for offering their new
product. Managers in this step also analyse feasibility of products and service.
Development of marketing strategies: It is another stage in which managers of McDonald
focusing on development of initial strategy for introduction of their new product in market. For
this, McDonald is develop strategies related to price, promotion and for other aspects.
Business analysis: It is another stage in which managers of company analyse different aspects
related to product like sales, cost and profit.
Product development: Product development stage is one which include actual development of
products (Kelly and Kim, 2018). In this managers of McDonald is focusing on actual product
that is fusion of healthy and fast food.
Test Marketing: Test marketing is a process which consist products as well as proposed
marketing programme that are tested in real marketing setting. In this, managers of company
analyse whether proposed products will generate profit for business.
Commercialisation: It is another stage in which products is introduced in market. It incur huge
cost on products like sales promotion, advertising as well as marketing efforts.
P6. Building an innovation business case for an organisation including different ways to access
funds
Executive Summary McDonald is an organisation which is currently providing fast

food and planning to launch new products that is fusion of food.
It is providing different salads and vegetables along with fast
food.
Objectives To satisfy changing needs of customers.
To increase sales and marketing share in market.
To build new positioning in minds of customers.
Solution For achieving these objectives, it is important for managers of
McDonald to introduce new variety of food which is fusion of
healthy and fast food which helps them to fulfil increasing
demand of healthy food in market (Narimani and Vaezi, 2017).
Innovation McDonald is adopting innovation in their food which adding
healthy food like different salads for improving health and
immunity of people.
Research To adopting innovation, managers of an organisation needs to
conduct various research which assist them to understand
requirement and needs of customers.
Funding Organisation can access funds from different method which
includes bank loan, angel investors and many more.
Benefits This innovation helps to get various benefits to business like it
improve satisfaction of customers and helps them to attain
objectives.
STP analysis:
Segmentation: McDonald is an organisation which is segmenting their products on basis of
geographic location as it is providing its products and service in different countries.
Targeting: Targeting is process which helps firm to select most attractive segment among
available. McDonald is selecting segment on basis of structure, size and attractiveness (Novikov
and Arbelaez-Campillo, 2021).

Positioning: Positioning is process of development of different image of an organisation in
minds of customers. McDonald is creating different image by providing healthy food. This
image can be done with strong promotional strategies.
Marketing mix:
Product: McDonald is offering healthy food like salad and fusion of healthy vegetables along
with their junk food (Siontorou, 2022).
Price: In order to capture more market share, McDonald is offering affordable prices of their
products.
Place: McDonald is providing their products and service in their returants where customers can
eat food there or take away.
Promotion: For promotion of products and service, McDonald is adopting digital marketing
specially social media marketing which helps them to interact with customers.
SWOT analysis:
Strength Weakness
McDonald is a multinational organisation
which has their restaurants in different
countries.
It has highly skilled employees for getting
competitive advantage in market.
Competition create threat for McDonald as it
decrease profitability level and marketing share
of company.
Opportunity Threat
McDonald can expand their business in more
countries on basis of innovation.
They can also target customers which are
preferring healthy food.
Brexit and other political issues create threat
for their business.
Due to covid-19 company needs to adopt more
measures which create impact on business.
Ways of accessing funds:
Crowd Funding: Crowd funding refers to ways to access funds for a project with raising small
amount from many people through internet. It provide various benefits to McDonald as it is one
of easier way to access capital and does not create much pressure on management.

Bank Loan: Bank loan refers to a source of fund that is borrowed by a business or individual
person from bank. It is beneficial for McDonald as it does not create burden on business and
providing loan at reasonable rate and east terms and condition.
Angel investors: Angel investor is another method for accessing funds in which individual
provide funds to business in exchange of ownership share in business. It provide benefit to
McDonald as it these individual share their knowledge and experience with business.
P7. Evaluation of different tool used by organisation for developing, retaining as well as
protecting intellectual property
Intellectual property:
Trademark: Trademark is one of intellectual property which includes sign, expression as well
as deign which create unique identify of products and service. It can be register through a person,
business organisation or any legal entity. These trademark are placed at voucher, package, label
of products.
Patent: Patent is one of intellectual property which is granted to an individual for invention that
can be a prices of products offer new ways of doing things. It helps McDonald to prevent other
to use their invention.
Copy right: It is another intellectual property which provide right to own of creative work to
prevent others to use it for a certain period of time. This work can be in form of artistic, musical,
educational and literary.
CONCLUSION
From above mentioned project report, it can be concluded that commercial funnel is important
aspect as it reflect journey of customers. It helps business for select an effective marketing
strategy and relate products of company with requirement of customers. It also helps business to
increase sales as well as profitability of company. In order to develop new products, business
needs to follow certain steps which helps them to get competitive advantage in market.

REFERENCES
Books and Journals
Bakhtiari, S. and Bruno, A., 2020. Government Commercialization Grants and Business
Performance. The Singapore Economic Review, 65(05), pp.1271-1291.
Bansi, R., 2019, September. Challenges to the Commercialization of University Innovation: A
South African Study. In European Conference on Innovation and Entrepreneurship (pp.
117-XV). Academic Conferences International Limited.
Ho, S.C. and Chuah, K.B., 2018. Determinants of ITF R&D Technology Commercialization in
logistics and supply chain industries: R&D technologist perspective. In Innovative
Solutions for Sustainable Supply Chains (pp. 17-53). Springer, Cham.
Kelly, R. and Kim, H., 2018. Venture capital as a catalyst for commercialization and high
growth. The Journal of Technology Transfer, 43(6), pp.1466-1492.
Narimani, A.R. and Vaezi, R., 2017. Identify factors to the commercialization of research in
Knowledge of public administration.
Novikov, S.V. and Arbelaez-Campillo, D.F., 2021. Commercialization of Intellectual Property at
High-Tech Enterprises. Russian Engineering Research, 41(8), pp.762-764.
Siontorou, C.G., 2022. University-industry relationships for the development and
commercialization of biosensors. Handbook of Cell Biosensors, p.707.