Product and Service Development: McDonald's New Product Strategy

This report provides a comprehensive analysis of product and service development, using McDonald's as a case study. It details the processes involved in product and service development, including ideation, feasibility studies, design, testing, and manufacturing, along with the levels of customer integration. The report then applies these processes to McDonald's, specifically considering the introduction of plant-based smoothies. It assesses the product life cycle stages within McDonald's portfolio, discussing appropriate product line management choices. Furthermore, the report outlines a product design and pitch, addressing market testing, product launch, and distribution strategies. Finally, it incorporates a reflective statement on team working, providing a holistic overview of product and service development principles and their application in a real-world business context.

Product & Service
Development

Table of Contents
Introduction......................................................................................................................................3
TASK 1............................................................................................................................................3
Explain the processes involved in the development of products and services and the levels of
customer integration....................................................................................................................3
Apply these processes in application to the development of a specific organisational product
or service.....................................................................................................................................5
TASK 2............................................................................................................................................6
Assessing the life-cycle stage of the product in a company’s portfolio......................................6
Evaluate which appropriate product line management choices are required for individual
products.......................................................................................................................................9
TASK 3............................................................................................................................................9
Design and pitch a product or service taking in to account market testing, product launch and
distribution..................................................................................................................................9
TASK 4..........................................................................................................................................12
Present a reflective statement that critically reflect on team working......................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
Books & Journal:......................................................................................................................15

Introduction
Product and service development can be referred as a process of designing and launching
new product, service and also includes re-launching an existing product or service. This
approach is followed by every organization throughout the world. This is done, in a very
structured manner with the main aim of enhancing creativity as well as monitoring all their
respective activity at each level to accomplish the objectives of the company (Barbieri, 2020).
For doing this project, McDonald has been selected. The company is leading fast food restaurant
with approximately 1250 outlets in UK and 38,365 outlets world wide. For increase its
competitive advantage in the market company may provide new product range to its customers.
Being product manager at McD design and develop new product can bring prospects growth for
the company. Company can focus on health area after considering the Global Pandemic
situation, people are now more conscious regarding heath. Company by introducing plant based
smoothies can change company's reputation as well. Since McD is known for fast foods, with
this if company consider current situation and introduce healthy food can bring opportunity to
grab market for healthy food habit as well. In the following project, it cover wide aspects of
product and service development. This includes detailed explanation regarding process involved
in product development, life-cycle of the product and designing of new product. Adding to this,
it also states the importance of continually engaging in learning and development as it is vital for
the success of McDonald.
TASK 1
Explain the processes involved in the development of products and services and the levels of
customer integration.
Product can be described as a tangible item that is introduced in the market which the aim
of purchasing, attracting and consuming it. While services is intangible that is results of
treatment done by certain group of individuals to enhance customer's experience. It is must for
the company to align the product with their service in order to sustain their position as well as
growth themselves. It is must for them to get ahead of their competitors in the industry (Ellis,
2019).
This involves a detailed process and it is must for the company to follows a step by step
approach. This is explained in detailed below:

 Ideation or concept development: This is the first and the most critical step that can be
referred as the stage where the unique idea is created by keeping in mind the
requirements of the customer's that the company can voluntarily be capable of
addressing. In today's changing time it is must for them to define their market and
accordingly innovate their offering in order to enhance their customer's satisfaction
s(Elsbach, 2018).
 Feasible study and design planning: It is must for the management to conduct a detail
market research. This needs to done in order to identify the feasibility of the product by
analysing the different angles and review each of them that is most suitable for the
company to be successful in the future.
 Design and development: In this stage, structured formal specification are introduced.
This is further bifurcated and verification as well as validation plans in the future. This
include undertaking the final quality checks that will help to identify that all the planning
done has been including in order to deliver the final product to the customer's. It is further
important to monitor the developed product at a regular interval to minimize the risk of
it's failure.
 Testing and Verification: Once the after the developed needed are incorporated then it
is must for the company to engage in detailed testing of the product. It is done in order to
determine the effectiveness of the product and also see that it meets the customer's
requirement (Franco, 2019).
 Validation and collateral production: This is done that their new offering is par with
the customer's requirements. In addition to this, the guarantee of the product is validated
to aid the manufacture in launching the product.
 Manufacture: Then all the essential documents is transferred to the manufacture in
order to enable them to make the necessary changes that is must for launching their new
offerings in the market. Along with this, their promotion is initiated in order to spread it's
awareness among their consumers.
 Evaluation and Improvements: Once the new product is added to the company's
existing product and become a part of their offering. Then, it is must for the management
to undergo continual changes as per their customer's changing demand.

Apply these processes in application to the development of a specific organisational product or
service.
Once the company has identified and analysed the process of the product development
they need to undertake it is must for them to implement them to introduce the new product in the
market. This can be illustrated below:
 Ideation or concept development: Once the company has thought out of renovating and
replace soft drinks with that of healthier green smoothies. In today's changing time youth
have become health conscious and this healthy choices are enhances further due to covid-
19 pandemic.
 Feasible study and design planning: It is must for the management to conduct a detail
market research. This can be stated that corona pandemic has restrict youth all over the
world to eliminate unhealthy food choices that include fast-foods mainly burgers and
cold-drinks (Helleno, 2017). So, it is viable for them to introduce healthy yet tasty food
to retain their valuable customer's. As, they have already initiated green smoothies they
further develop their product by adding healthier sweet alternative including Dates and
Fig.
 Design and development: In this stage, structured formal specification are introduced.
This can be done by them to verify that whether their new product needs the customer's
satisfaction. It is done by them by undertaking verification their quality is up to mark.
They should also undertake quality checks at a regular interval in order to minimize the
risk of it's failure.
 Testing and Verification: Once the after the developed needed are incorporated then it
is must for the company to engage in detailed testing of the product. It is done in order to
determine the effectiveness of the product and also see that to it that it is innovative and
will retain as well as enhance their customer (Liu, 2019).
 Validation and collateral production: This is done that their new offering is par with
the customer's requirements. In addition to this, the guarantee of the product is validated
to aid the manufacturing team by promoting their new development to attract their new
and innovate offering. in the market to retain their existing customers as well as
enhancing their customer's by particularly utilizing the corona crisis in their favour to
sustain

 Manufacture: Then all the essential documents is transferred to the manufacture in
order to c them to make the necessary changes that is must for launching their new
offerings in the market. This is done in order to comply with all laws relating to regional,
local and international laws associated with the products. Along with this, their
promotion is initiated in order to grab the attention and spread it's awareness among their
existing as well as potential consumers.
 Evaluation and Improvements: Once the new product is added to the company's
existing product and become a part of their offering. In addition to this, the company also
been to continually monitor the changes done at each stage and even be well informed
about their competitors next move. This will be beneficial for them to make the necessary
improvements to stay ahead of their immediate competitors.
TASK 2
Assessing the life-cycle stage of the product in a company’s portfolio.
In every organisation, there is a product lifestyle that is highly dependant on their type of
industry. This refers to know the current stage of the product . It is beneficial for the McDonald's
to determine the most favourable strategy for accomplish their desires. Product life cycle is
broadly divided into four stages. The company can access all the different stages of their new
product by understanding the life-cycle stages that can be explained in detail below:
 Introduction: At the very initial stage of the product and it's primary aim is to
demonstrate that their product is highly valuable and has a higher potential to be
demanded that is vital for it's growth in the future (Payne, 2017). This can be done my
them to spend more promotion on advertising their healthier offering and also increase
it's value by making their viewers contented that is hygienic and free from any added
preservatives. Selected company recently introduce a new product called salad that target
its healthy-minded customers. When products are at their initial stages it is imperative for
the companies to use standardisation stage which is regards with the “one strategy fits for
all”. Standardisation is nothing but a process of implementing and developing
conforming standards as per the industry and other parties such as users, interest groups
etc. It is the practice of offering one products to all based on the set standards and
expectations.

 Growth: After the first stage, the product is considered as growing as more and more
customers are attracted towards product. This helps to generate more revenue and in turn
helps in increasing market share (Strauss, 2018). It can utilize the opportunity of
pandemic situation and can capture market at large. Company can promote the new plant
based drink that should be able to convince youth to get attracted to their product. At the
same time, it should be able to convince older people that by changing their life cycle
they will be prevented from harmful diseases like cancer. This will be beneficial for them
to have healthy craves. In-return this can bring favourable for the company to sustain
their position in the current market (Barbieri, 2020). In context of selected company their
Shake Shake Fries are at growth stage. Selected company recently introduce this product
in their menu but it was generate high revenue and sales for company. When products
reaches its growth stage it is essential for a McDonalds to make use of adaptation
approach to make necessary changes into the products and services to fit for the
specialised needs of the target group. For instance, while introducing Shake Shake Fries,
company may add flavours and other variant to bring differentiation for the target
audience.
 Maturity: In this stage product consider as hit the maturity stage where product is
become popular among the customer. In this stage where customer either refer to
continue to buy them or want to try new product. It is analysed that at this stage company
need to use more promotional tools which help company to remain in the market for long
period of time. However, using different re-boost technique or tool, company have to face
the next stage of the life cycle. Since it have become universal life cycle that every
company have to face (Vezzoli, 2018). In context of McDonald's its burger king product
is at maturity stage which helps company in generating higher profit. Growth Stage
normally generates more revenue and capture large market share due to the high
acceptance of product. At this stage, McDonalds must conduct more research and take
feedback to from customer to understand how company could meet their demands, what
values and expectation they are seeking. This helps company to retain existing and attract
new customers.
 Decline: At this stage it is assumed that product popularity starts to fall and so the sells of
them. This happens because of the reason that at this stage company need more

innovation in their product, exploration of the markets. To sustain competition product
needs to be upgraded version that can give tough competition to other rivalry brands and
thus help in capturing the other market area. The company face this stage at the very last.
Since the McDonald's product will be new so this phase is the least concern. Selected
company French fries have been an important part of company menu worldwide but
actually it was on the stage of decline and their French Fries are not generated any
revenue for company. At this stage, McDonalds needs to be more creative and innovative
in its approach to prevent their products enter into declining stage. Innovation and
commercialisation results beneficial for the company as it brings novel methods, process,
or products and services into the business to increase the sales revenue and profitability
of a company.
Evaluate which appropriate product line management choices are required for individual
products.
In the present scenario of the company, it is identified that healthy food habits have
become important in terms of health as well as benefit for the company. The product offered by

company required suitable choices. For this the managers of an organisation have prominent
choice considering the innovation that helps in making this new product. It also focus the for
innovation in terms of identifying needs, customer's changing preferences, environment etc. are
significant concern that helps in making product a completely new in the market. It is identified
that the sales of other favourable drinks start to declining because of the lack of innovation and
more concern for health (Villamil, 2018).
Another reason for the declining of sales and demands for favourable drinks which use
of false edible colours and to deal with the situation the managers of McD required come out
with innovation which can offer natural flavour in their new drinks. It is important to take
decision to develop and introduce the product for increase sales and fulfil the new demands of
customer by company. Therefore the research and development team needs to take decisions in
terms of effective innovation for suitable product by which they opt organic ingredients like
fresh figs and dates (Whiley, 2017). Which have the stamina to fight with common cold and
allergic symptoms. The innovative product undertakes suitable calendar timer and other
important products that helps in attracting new and healthier customer base and the innovation is
also seen as the promoting good habits of eating fruits and dry-fruits in their diet. As company
majorly offer fast food items, with this new product company can made an impact in the mind of
its customers.
TASK 3
Design and pitch a product or service taking in to account market testing, product launch and
distribution.
In above after considering the the McD's product, as it is the initial stage and therefore
the product have to went through all the stages of life cycle. Company have to focus on the very
initial stage i.e. Introduction as it is new in the market. After getting the nerves of the current
market situation and its demand company decide to launch a healthy drink cum smoothly option.
Selected company new healthy drink name is fit to hit which is an mix fruit drink. Here the
company after intense research launch product in market for its customers. To understand the
new product offer in terms of of healthy benefits and other strategy to grab new market,
following elements are discussed below:

 Market opportunity for the new Product: Since the pandemic situation not only have
bring threats to different ways to human life and businesses. But the it have left few
positive sides that bring good changes after the shock (Ellis, 2019).In context of company
its new product helps in expansion in developing countries. By developing new product
McDonald's enters into new industries. In context of company its new products create an
opportunity for global growth and expansion.
 Market testing: It is an important step of new product development. In context of
company market testing allow to test the product and its marketing strategies, including
targeting & positioning, advertising, distribution, packaging etc. before its full
investment. McDonald's introduce new products very quickly because taste of their
customer's are changing rapidly. When the selected firm introduce new product it require
large investment. So its better, first test its products in market before doing full
investment, because new introduction of a new product involve high risk. In context of
company it uses close feedback and and small scale testing method of market testing. In
close feedback method McDonald's take feedbacks from their potential customers. This
information help the company to analysis whether their customers are interested in their
product or not. Relevance company test its product on a small scale as a sample. It
provide information about the success of new product in market.
 Product launch: It is just important as the product itself. Successful product launch of
selected firm will generate more sales for company. It attract more new and happy
customers towards McDonald's products. In context of company its main objective of
product launch is for user adoption and enhance brand image. It uses a combination of
digital, print and TV advertisement for launching its product in the market.
 Distribution: It means making product or services available to its customers who needs it.
In context of company it uses selective distribution network. Which means it involves
more than one but less than its all distributors who carry their products on the basis of
their rules. Its products are generally found in restaurants. Other than restaurants the
selected firm sell its products on Kiosks, websites and apps and mobile app of
McDonald's.
7ps of marketing:
Product In context of selected company, they offer a new product called fit to hit

which is an mix fruit healthy drink.
Price Selected company use low pricing strategy so that they can easily attract
more and more customers.
Place The new product is easily available at every McDonald's franchise.
Promotion In order to promote their new product selected company use digital platform
so that they can easily reach to large numbers of customers.
Physical evidence The innovative product has a unique and different taste because of mix fruits
and they provide it in a beautiful glass which attract customers.
Process McDonald's employees make sure to prepare fresh drink and provided to the
customer s that they can able to offer the real taste of fruits.
People Selected company provide proper training to their employees about the new
product so that they can efficiently provide proper information about the
product and its taste.
Porters five forces- It refers to model which helps an organisation in identifying and analysing
five competitive forces which shape every industry and helps in determining the weakness and
strength of organisation. In context of selected company new product various forces of porter
model is discuss below:
 Threats of new entrants- In context of selected firm, the factor has a loe force on
company new product this is because this will require innovation and high cost of
investment which will stop new entrants.
 Threat of substitute- McDonald's new fit to hit product is for health conscious people
and there is no other substitute for healthy drink.
 Bargaining power of buyers- This factor has a moderate force on company new
products because the product is new and have less customers for that product.
 Bargaining power of suppliers- In context of new product of McDonald's they produce
mix fruit healthy drink for their customers and for their raw material many suppliers are
available for company because of which the force of this factor is low.

 Competitive rivalry- In context of selected company new product this force is quite low
because their product is new in market and it take some time in increasing competition
for company.
TASK 4
Present a reflective statement that critically reflect on team working
In business organisation, team play important role when new products or services is
about to introduced or launched. I have examined that team working has power to provide
benefits as well as high productivity to organisation. Also, it is crucial to coordinate and
cooperate with each and every team member so that it is easy to manage work in effective
manner. Moreover, it is too analysed that team in context of McD's employee & staff members
they work with mutual cooperation in appropriate way on basis of which it is easy to deal with
problems as well as issues. Further team working at workplace is needed as it is not possible for
every individual to focus on every work or task as a solely person. I am focusing on improving
my team working abilities so that it is easy for me to access to new opportunities in easier way.
I have too identified that working in team also increasing other skills, changes behaviour
etc. which are beneficial self growth as well as development. Therefore, when starting a business
launching new product, or doing something new, team work is required at all aspects of life.
I contributed majorly towards the generation of idea and concept development for the
new products and development, however few of the members opposed to this part but later on we
agreed mutually on my contribution. With consensual agreements between each of team
members decided to work together on presentation and once we were in computer lab, every one
decided which part of presentation will be prepared by whom and everyone agreed on the view
point of each other without any resistance.
Team members was supportive and collaborative while working on the presentation,
however there were minute conflicts which aroused but were easily managed and didn’t affect
our performance.
Few member wants to do complete work of presentation and few were not interested in
delivering presentation but caused a little disruption in the team work. Later on, based on the

skills and experience of each team member we finally managed to distribute the work of
preparation, presentation and delivery.
I played major role in segregating work among the team members and organise the
word as per the requirement of each slide. Few members did exceptionally good work and few
were less interest.
Team members in the group were interacting properly, respecting and giving value to
the views of other team members. Additionally, everyone was sharing the work of each other
and were collaborative in overall presentation. We always seek suggesting from every team
members and conforming to every one while making decisions.
Indeed, while encouraging the view point of every team member there were creative and
unique ideas on the table and it was concluded in the end that collaborative working practices
brings more efficiency and effectiveness in each work than individualism.
There were some dysfunctionality on the design, content, number of slide, adding notes,
plagiarism and delivery of PPT however as I mentioned earlier with the collective efforts and
support of everyone these dysfunctionality were easily manageable and we managed to deliver
successful presentation. Additionally, we practiced a lot to make our presentation best and more
appealing than others, that’s why we choose to deliver it first than anyone.
Based on the experience I would like to consider that distribution of work could be done
in a more effective way with more focused over designing template and information presented in
the PPT. I recommend while working on PPT there must be a leaders who guide the others to
work and collaborate effectively to avoid conflicts in team.

CONCLUSION
After a brief analysis of above report, it has been concluded that level of competition in
market is increasing and it is important to focus non product as well as service development. So,
discussions have been made about processes involves in development process, application in
process of development. Then, life cycle stage of products, product line management, pitch of
product/ service and reflective statement has been described briefly. Furthermore, it has been
evaluated that it is essential to adopt and be aware about changes so that strategies and
appropriate procedures are carried out. Thus, it is necessary for managers to make assure that
most effective decisions are being undertaken to develop product & service.

REFERENCES
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