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Activity in Class. A. When Mcdonald'S Originally Made The Agreement With Sun Pacific To Incorporate

1. McDonald's originally partnered with Sun Pacific in 2014 to incorporate Cuties oranges into Happy Meals for a limited time period as a promotional strategy to increase brand awareness. This was considered a fixed-term contract purchase situation. 2. In 2016, McDonald's reintroduced Cuties into Happy Meals, representing a new marketing strategy to attract younger customers by offering whole fruit and increase health perceptions of their menu. This was a more strategic purchase decision given its importance. 3. Grocery retailers likely have a transactional relationship with Sun Pacific focused on product quality and price, while McDonald's relationship is more relational given their repeated purchases and promotional partnerships over time.

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138 views3 pages

Activity in Class. A. When Mcdonald'S Originally Made The Agreement With Sun Pacific To Incorporate

1. McDonald's originally partnered with Sun Pacific in 2014 to incorporate Cuties oranges into Happy Meals for a limited time period as a promotional strategy to increase brand awareness. This was considered a fixed-term contract purchase situation. 2. In 2016, McDonald's reintroduced Cuties into Happy Meals, representing a new marketing strategy to attract younger customers by offering whole fruit and increase health perceptions of their menu. This was a more strategic purchase decision given its importance. 3. Grocery retailers likely have a transactional relationship with Sun Pacific focused on product quality and price, while McDonald's relationship is more relational given their repeated purchases and promotional partnerships over time.

Uploaded by

Jorge Caballero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Activity in class.

1. Chapter 19 describes various purchase situations.


a. When McDonald’s originally made the agreement with Sun Pacific to incorporate
Cuties in Happy Meals in 2014, what type of purchase situation was that? Explain.
The decision to collaborate with McDonald's for the C brand was taken for a limited
period. This was mainly due to advertising aimed at increasing brand awareness
among consumers. This shows an immediate buying situation. Both organisations
did not play much of a role in the decision to develop the brand together.
McDonald's did not want the decision to have any particular meaning or
significance. SP tried to sell the brand through McDonald's well-known supply chain.
McDonald's regularly bought SP's products and promoted them for a limited period
as part of its promotional programmes. This is a fixed-term contract, which is
reviewed at the end of the contract period. At the end of the contract period,
reliability dominated the contract evaluation.

b. In 2016, when McDonald’s reincorporated Cuties into Happy Meals, what type of
purchase situation was that? Explain.
McDonald's defined it as highly profitable and successful. So, McDonalds brought
back the letter "C" and included it in the happy meal category. This was the first
time McDonald's introduced a full fruit selection. This change was made to all
McDonalds outlets. This buying situation can be explained as a new challenge. In
this case, the company bought the old partner because the decision seems very
important. The choice was quite difficult because it was the first time McDonald's
was launching such an option. Obviously, this is a new marketing strategy aimed at
increasing the buying situation, which is not suitable for its competitors. The
McDonalds customer has little experience in marketing and promoting whole fruit,
but the decision was important to increase and attract Generation X and Millennial
customers. These generations place a higher value on health and food quality.
2. Chapter 19 discusses the organizational decision process. Consider the various
stages of the decision-making process that may have taken place within McDonald’s to
arrive at the choice to incorporate Cuties into the Happy Meals and the à la carte menu.
While it is impossible to know the proprietary information on exactly how this decision
was made, you could speculate as to some aspects of how it may have taken place.

a. What factors likely may have led to the problem recognition?

b. What other alternatives might McDonald’s have considered in the alternative


evaluation?

c. Why do you think Cuties were eventually selected as the purchase decision?

3. Chapter 19 discusses the differences between transactional exchanges versus


relational exchanges and various factors that influence whether business relationships
would be more likely to be one or the other (industry structure, decision-making culture,
decision-making structure, risk tolerance, and nature of purchase).

a. Do you think grocery retailers are engaged in transactional or relational exchanges


with Sun Pacific? Explain your reasoning relative to the factors listed in the text and
case.

b. Do you think McDonald’s is engaged in transactional or relational exchanges with


Sun Pacific? Explain your reasoning relative to the factors listed in the text and
case.

4. Are buyers of Cuties just “paying more for the name,” or is it due to the economic
benefits associated with the name? What, if any, economic benefits accrue to buyers of
Cuties?
5. The case distinguishes push and pull strategies. The case mentions that Sun Pacific
heavily uses a pull strategy because the promotions target the end consumers of the
supply chain. However, they also would have to promote to the retailers (B2B)
customers as well to ensure they stock the product on their stores and outlets. Design
promotional materials, including key selling points, that Sun Pacific could use to “sell” its
product successfully to its B2B customers.

6. Executives of Sun Pacific explicitly state that advertising and promotions are targeting
Millennials as part of the pull strategy. In what ways do the promotions for Cuties, as
well as the product itself, appeal to this generation?

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