McDonalds Innovation Strategy - Case Study Example

McDonalds McDonald’s Innovation Strategy McDonals recently discovered the importance of understanding and satisfying the lifestyles and needs of its esteemed customers. The reality of more individuals coming to terms with the need to live a healthy life, has forced fast food stores to come up with strategies that promote a stable and healthy lifestyle. As a result, McDonalds came up with promoting new items on their menu that are customized to the habits and preferences of local customers (Barnes, 2007). The main drivers for McDonalds to develop new product menus were learning the need to meet the dynamic needs of their customers. The changing trends campaigning for a better understanding of one’s health is by far a key driver. It is clear that McDonalds came up with a Balanced Active lifestyle that in itself encouraged and promoted solutions to its customers to live a long and healthy life. In one instance, the Corporate Executive Vice President Mary Dillon said that her company cared about the health of its customers around the globe. By this, it had developed balanced, active lifestyles that McDonalds would incorporate into its daily activities to improve their health and lifestyles (Barnes, 2007). Most of the success that McDonald’s enjoys is deeply rooted in their product development strategy. The permanent innovation strategy deployed by McDonalds is to feature an array of products on their permanent menus that do not undergo any changes. A good example of this innovation strategy is where they include the Quarter Pounder and the Big Mac, their cheeseburger, and their basic hamburger. Upon their first development, the above items are left to stand on the menu for an extensive period without the inclusion of any significant changes. The above innovation strategy sees to it that the consumers do not miss on something that they are well familiar with on the menu (Clark, 2015). The other innovation strategy deployed by the major food chain is a temporary product strategy. This strategy entails the development of temporary products that are meant to supplement the permanent product offerings. An example of products that were formulated for short-term purposes are such as the Big Ocean burger. The importance of the temporary innovation strategy deployed by McDonalds is that it gives customers a new item to enjoy any time they pay a visit to the food chain (Adams, 2007). The third innovation strategy that is applied by McDonalds is the local product development strategy. With the continuing expansion of McDonalds all around the world, the company has turned out to create a range of products to meet the demand of their customers in the local markets. A good example is in Netherlands where McDonalds has developed McKroket. It has been enabled in a manner that a Dutch kroket is typically featured. A Dutch kroket is a ragout-filled patty that is deep fried. Another instance is in Canada where in the province of Quebec, the fast food chain has offered poutine that is an indigenous meal of gravy, curd cheese and French fries (Clark, 2015). In Atlantic Canada and some parts of New England, the company has developed McLobster, which is their new form of the roll sandwich that is found locally. This innovation strategy is of great importance. It ensures that the locals do not perceive the company as a mere international company but as a company that has a great taste of their local foods. McDonalds also developed another innovation strategy known as the local adaptation strategy. In addition to inducing a range of new products to the local market, the company takes a popular product and modifies it to meet the expectations of the local community. For instance, in a country such as India, the Big Mac hamburger is changed into a Maharaja Mac hamburger. This kind of a hamburger does not contain beef in a move to keep up with the local diets(Debres, 2005). In other countries such as Greece, the Big Mac hamburger is developed in such a way that it uses a pita bread in place of a bun. Finally, in the United States of America’s markets where crab is an indigenous food, the McCrab has been formulated as a vital replacement to the McLobster (Clark, 2015). The company has increased the product range it offers through the addition of new product items such as fruits, salads, additional sandwich options and vegetable. The company has also developed new lines of the product menu. Lastly, the company has renovated the existing options on the menus and expanded them in such a way that they accommodate for health food options. These options are also developed in such a way that they reflect the customs and tastes of the local markets. Some of these additions to menu lines include the addition of new salads plus menus in many European McDonalds units. These Salad Plus menus include meal size choices and a side salad just to state but a few. In McDonalds Denmark, the side order options have been expanded to accommodate carrot slices (Barnes, 2007). The innovation teams and the new product have been carefully designed by McDonalds to ensure the generation of sound ideas. The new product includes a strong menu choice that ensures a variety of products at the same time regardless of the location. A good example is in Australia where the company has designed a QuickStart breakfast menu that includes a choice of juices, cereals, and non-fat milk or reduced fat and yogurt. To increase the acceptance and adoption of new products, the company included a physical activity aspect of its new product. McDonalds aims to support channels through which people can find fun and realistic ways to embrace health and fitness in their bodies. The physical activities are localized in such a way that they reflect and appeal to the daily lives of the people. An example is a world-wide program known as Go active to provide physical activity sources and online fitness. The company ensures that it meets the increasing interest in good health by providing proper guidance and directions from the regional levels. Some of the organizational entities that are used for guidance include the Active Lifestyles team that includes senior management of the specific departments all around the globe. The team of experts chosen by McDonalds is cross-functional, and they are formed in order to serve specific roles. In Australia, for example, a team of dietitians is selected to partner with McDonalds so as to advise the company in terms of the well-being of a new product that the company develops(Christensen, 2007). The increasing growth of social media networks such as Facebook and Twitter can be used by the company in order to update its customers on a timely basis. The company would also obtain important feedback from its customers in terms of their perception of its new healthy menu products. The company should, therefore, establish a robust team of young individuals to run the social media accounts and pass the relevant information. Social media accounts such as Instagram would go to great lengths in ensuring that the customers get a glimpse of the new products on display on the new menu. McDonalds can measure whether the new products are a success through collecting feedback from its customers on social media accounts. The company can also assess the progress by measuring the change in the current sales as a result of introducing the new menu items. An increase in the influx of customers to their global food chain stores can also be applied to check whether the new menu items have facilitated a change or not. References Adams, B. (2007, September). Mcdonalds Strange Menu Around the world. Thrifter World. Barnes, D. (2007). Operations Management: An International Perspective. Thomson Learning, ISBN 978-1-84480-534-1. Christensen, C. (2007, October 26). Innovation: A Happy Meal For McDonalds. Forbes. Clark, W. (2015, June 2). Product Development Strategy for McDonalds. Retrieved from Small Business: Demand Media: http://smallbusiness.chron.com/product-development-strategy-mcdonalds-12207.html Debres, K. (2005). Burgers for Britain: A Cultural Geography of McDonalds UK. Journal of Cultural History 10:2, 27-48. Read More