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McDonald's Wanted to Add a Pancake Shaped Like a Muffin

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Essay

McDonald's wanted to add a pancake shaped like a muffin to its breakfast menu.The problem was in determining how a customer would add syrup to the pancake while eating and driving.Fortunately,one of the company's suppliers developed crystallised syrup that seeps through the pancake once it is heated.What phase of new-product development occurred when McDonald's met with its supplier?


Definitions:

Market Segmentation

The method of segregating a potential customer base into categories or segments according to various traits.

Cannibalization

The detrimental impact on sales of a product due to the introduction of a similar product by the same company.

Tiffany/Walmart Strategy

A business approach that contrasts high-end, premium products and services (Tiffany) with low-cost, high-volume goods (Walmart), targeting different market segments.

High-End Segments

Market segments composed of consumers who purchase luxury or premium products and services.

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