Mcdonalds Balanced Lifestyle Menus - Case Study Example

MCDONALDS BALANCED LIFESTYLE MENUS Introduction The proliferation of diet-related ailment such as obesity, hypertension, cancer, heart diseases, etc. have led to majority of individuals re-evaluating their eating habits, and seeking professional as well as non-professional means of curbing this catastrophe. In this attempt, major junk food franchises have suffered the brunt of decline in sales of such foods and as a result are devising ways of reducing the effects of low customer turnout by introducing healthier foods in their menus. In addition to this, some have seen it wise to organizing for and availing parallel advises on ways through which people can improve their health status through such means as regular exercise. One such franchise is McDonalds who in addition to healthy menus and provision of exercise advises have initiated promotions to aid in creating the awareness of availability of the said healthy foods and services, of which their impact, design and execution of supportive modes, as well as their reception in the market is analyzed hereunder. The drivers for new product-menu development at McDonalds The recent changes adopted by McDonald have not come out of a sudden realization that junk foods are actually the leading cause of diet-related ailments, and more so obesity in children. This fact has been within the knowledge of McDonald for years and is therefore not a scapegoat. Godelnik (2013) observes that the recent changes are means through which the franchise attempts to reach out to people who have been shunning McDonalds and instead opting for other competing outlets such as Chipotle and Panera Bread, outlets that have been characterized as fast-casual restaurants. The introduction of these healthy menus is therefore a means employed by the franchise to attract the section of the millennial generation that have for years been avoiding McDonald. Secondly, the recent increase in calls from the public, interest groups and governments, the Obama government being a good example, for families to adopt healthy eating habits to avoid obesity in children and other ailments as well have had a toll in the operations of most fast food chains. In addition to these campaigns, the new healthy eating pyramid as noted by Willet (2011) encourages the society to choose most of their foods from among whole grains, healthy oils, vegetables, legumes, etc. as opposed to processed foods that form the major component of McDonalds’ foods. While the impacts of such campaigns have not affected the overall turnover of McDonald, it is within their knowledge that it is a brewing storm that eventually will catch up with their sales, and hence the need to have alternatives. New product reflection and innovation strategy adopted for internationalizing McDonald business The new menu introduced by McDonalds is taste-crafted and healthy minded, and incorporates such foods as salads, fruits and raw vegetables. According to Scherer (2015), the design of the menu in such that customers have the option of choosing a selection of three buns, three different meats and three topping that have been chef-inspired, and hence natural and healthy. In addition, most of the food servings are listed as prepared from natural ingredients and hence are comparatively healthier. Furthermore, the menu displays show that most of the usual long-term preservatives have been abolished, and in their place, new short-term healthy preservatives are included. McDonald has adopted two strategies for internationalization of their business. Being a franchise, the business spreads the risks associated with its operations among its members, shareholders and management. This model allows for market differentiation, an idea that according to Okumus, Altinay and Chathoch (2010) dwells on consumers perception of brand name to foster product acceptance in different localities and hence generation of more revenues both in the short run and long run. This idea has led to the thriving nature of McDonald both in the US and across Europe. Secondly, McDonald has incorporated innovation in its practices. For instance, the recent introduction of healthy foods in their menu is attributable to their innovative attitude as well as their goal of creating a healthier customer base. McDonalds design of new product and innovation generation team McDonalds embraces an innovation strategy that provides answers to the questions of ‘How to?’ and ‘How could it be done differently?’ based on three simple approaches of thinking big, starting small and scaling fast. Built on the ‘customer is king’ concept, the innovation strategies make use of available resources and tools to come up with customer-oriented ideas. Clark (2015) note that the fusion of local product development strategies with the available permanent product strategies have resulted in the creation of products that meets the needs of people in specific localities, while at the same time offering the universally consumed brands prepared using the original formula. A good example is in Quebec where McDonalds offers poutine, a traditional dish of French fries. Additionally, the company encourages creative local adaptation strategies that entail modification of existing products to suit specific local tastes, which can then be transferred for testing in other localities to determine their acceptability. The innovative team of McDonald is comprise of individuals who harbor great cognitive skills that foster associational thinking. According to Dyer, Gregersen and Christensen (2011), these skills are crucial in engagement in such behavioral practices as questioning, observational, experimenting and networking that are key to associational thinking. Practices adopted by McDonald to increase customer acceptance of the new menu In addition to conventional marketing practices in place at McDonalds, the franchise has also adopted Happy Meals promotional and advertisement procedures aimed at encouraging the consumption of healthy foods such as milk and natural fruit juices. The Happy Meals project also aims at creating an excitement that encourages the consumption of fruits, low fat dairy products, vegetables, as well as water (Goldenik, 2013). Through diversification of their range of products, McDonalds aims at harnessing the marketing potential by fulfilling the needs of almost all types of people, from vegans to non-vegans, to health-conscious individuals alike. In addition to this diversification, McDonald have also included attractive phrases on their products to make them appealing for people who out of curiosity and being mindful of their weight, critically monitor the content of their diet, with key interest on ingredients and the preservatives used (Ware, 2015). How McDonalds can exploit social media to influence customer adoption of the new menu Characteristic of the millennial generation is the invention and use of social media platform as a means to fostering communication and increasing interconnectivity between people from different spheres of life. With the increased use of social media platforms, businesses ought to adopt advertising strategies that involve the use of social media in order to reach out to more potential clients. The rise of social media has seen a shift from online and offline budgets among businesses to paid social media ads. Ganguly (2015) notes that social media advertisement has the potential of reaching specific audiences by first analyzing their skills, interests and favorite activities, and then implanting key word targeting that links the said search to a given product. In addition to this, Ganguly espouses the use of behavioral, custom and lookalike targeting that involve reaching people based on their behavioral practices, sending custom messages through mails or short messages as well as by exploiting similarities in the practices of a specific group of people. In the context of McDonald marketing, these concepts have the potential of creating a wider awareness of their new products since most of McDonalds’ clients are the millennial generation who has embraced the use of social media platforms. Singh and Diamond (2015) notes that the efficacy of social media advertisement relies on the fact that it fosters social interactions between different people and allows them to share information about themselves as well as their experiences regarding certain elements of life. By logging into any social media website, it is highly likely that one will encounter a comment relating to a personal experience with something, be it a car brand, an eatery, or even a financial service provider. McDonald can exploit this opportunity by making certain product words being optimized for search engines, a practice that has been shown to elicit curiosity among people. How McDonalds can measure the success of their new menu items The introduction of new menu by McDonald is just but an attempt to follow commodity market as it entails trading in the direction of the trend. While this may be healthy in the short term as it allows the business to study the behavior of the commodity in the market, its long-term results are usually unhealthy and contestable. Given the illustrious brand name of McDonald, adopting comprehensive marketing and brand enhancement strategies that improve awareness, product differentiation and its perceived value (Perry, Freundt and Spillecke, 2015). An increase in the perceived value of the new menu commodities will therefore act as a measure for the success of the product, since this increase implies the acceptability of the commodity in the market. This approach is both an intermediate and a long-term scheme that allows the business to focus its trading activities in the direction of present as well as future trends. Conclusion The introduction of new product menu by McDonalds is a noble course in the right direction. Its objective, whether its sole intention is to act as a ‘carrot’ to the millennial generation that have stayed out of the franchise’s clientele, or as a means of availing healthy foods to its dedicated customers, when properly implemented, will impact positively on the lives of the consumers. In addition, the program has the potential of giving McDonald an edge in the market, not only within the US, but across its global franchises. This coupled with the good advertisement designs and exclusive strategies aimed at promoting internationalization of it businesses will take the operations of McDonalds to a completely new level of trading. Nevertheless, the company ought to streamline its service delivery policies and align them in accordance to the expectations of the millennial generation. References Clark, W. (2015). Product development strategy for McDonalds. Retrieved from http://smallbusiness.chron.com/product-development-strategy-mcdonalds-12207.html Dyer, J., Gregersen, H. B., & Christensen, C. M. (2011). The innovators DNA: Mastering the five skills of disruptive innovators. Ganguly, S. (2015). Why social media advertising is set to explode in the next 3 years. Social media marketing. Retrieved from http://marketingland.com/social-media-advertising-set-explode-next-3-years-121691 Goldenik, R. (2013). Will McDonald’s New, Healthier Menu Help it Become a Millennial-Friendly Food Chain? Retrieved from http://www.triplepundit.com/2013/09/mcdonalds-new-healthier-menu-become-millennial-friendly-food-chain/ Okumus, F., Altinay, L., & Chathoth, P. (2010). Strategic Management in the International Hospitality and Tourism Industry. Britain, Routledge. Perrey, J., Freundt, T., & Spillecke, D. (2015). Power Brands: Measuring, Making, and Managing Brand Success. Weinheim: Wiley-VCH. Scherer, J. (2015). McDonalds new ‘taste crafted’ menu wants to be the Chipotle of burgers. Retrieved from http://www.takepart.com/article/2015/04/29/mcdonalds-taste-crafted-menu Singh, S., & Diamond, S. (2015). Social media marketing for dummies. Ware, C. (2015). Morning News Beat: The Millennial Mind: How McDonalds Can Get Its McCool Back. Portland State University. Retrieved from http://www.pdx.edu/boxoffice/news/morning-news-beat-millennial-mind-how-mcdonalds-can-get-its-mccool-back Willet, W. (2011). Eat, Drink, and Be Healthy: The Harvard Medical School Guide to Healthy Eating. New York, Simon & Schuster. Read More