In 2001, McDonald has a new project by two hotels in Switzerland (Zurich and Lully) launched under the name “Golden Arch Hotel.” The hotels were positioned as a four-star rooms with the latest in-room technology and unique, modern interior architecture. Testimonials of the guests were mixed after their stay at the Golden Arch hotels. But most seemed to agree that the four-star did not seem to correspond with McDonald’s image. Given the saturated world market hamburgers, McDonald … Read more »

In 2001, McDonald has a new project by two hotels in Switzerland (Zurich and Lully) launched under the name “Golden Arch Hotel.” The hotels were positioned as a four-star rooms with the latest in-room technology and unique, modern interior architecture. Testimonials of the guests were mixed after their stay at the Golden Arch hotels. But most seemed to agree that the four-star did not seem to correspond with McDonald’s image. Given the saturated world market hamburgers, McDonald was headquartered in Chicago opted for a “diversification” strategy to start to promote new ideas and concepts around the world. Proposed Urs Hammer, McDonald’s Switzerland longtime CEO, a trip to the hotel industry building on McDonald’s image of cleanliness and fast, friendly service. With strong global brand recognition McDonald and the transferable skills of restaurant hospitality, Hammer was confident the project would be a success. The hotel market in Zurich was booming with several construction projects underway. The growth had happened so fast, in fact, that analysts predicted excess capacity in the very near future. Travel groups, business travelers and frequent flyers (suitable): In a highly competitive hotel market was Golden Arch hotels facing the challenge of how to profitably targeted faced the most important customer segments. With only two locations in a highly competitive country as well is Golden Arch in Switzerland positioned, and how the model can be extended and brought into the world to life? The case concerned: Global Marketing, positioning, segmentation, service marketing and profit model
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This is a Thunderbird Case Study.
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from
Stefan Michel
Source: Thunderbird School of Global Management
16 pages.
Publication Date: Oct 20, 2005. Prod #: TB0109-PDF-ENG
Golden Arch Hotel: McDonald adventure in the hospitality industry HBR case solution