McDonalds Marketing and Promotional Activities - Case Study Example

Case Analysis INTRODUCTION With the increasing rate of globalization, fast food industries are also expanding at a rapid manner that has created greater challenge for the overall society. The fast food retailers with the primary objective of earning profit sometimes tend to provide food products that are harmful for health. In recent years, obesity has become the major health issues for which the fast food industries are being held responsible. Fast foods contains high amount of fats and calories that are unhealthy and therefore consumption of those foods leads to obesity and other health disorders. In the United States McDonalds is considered responsible for the increasing rate of obesity in the country and is alleged of promoting unhealthy food products and thus it has created a threat for the company. For an effective sustainability of the company, it is essential to adopt an effective marketing strategy that would promote healthy food products as well as the health risks from their consumption (Currie, Vigna, Moretti and Pathania 1-41). McDonalds are taking steps to enhance its image through promoting healthy foods. DEFINITION OF PROBLEM McDonald’s is among the largest fast food companies that operate all over the world having its head quarter in the United States. For the past several years, company is facing several issues regarding their marketing strategy as well as harmful impacts on the people due to the consumption of their fast food. It has been found through survey that a higher percentage of obesity all over the world including the United States is caused due to increasing rate of consumption of fast food. This is creating a threat for McDonalds brand image in the USA. However, McDonalds is using various marketing strategies to promote its food as healthy. Obesity is generally a metabolic disorder through which excess fat is accumulated in the body that negatively affects the health condition of an individual, leading to other chronic diseases. Level of obesity is measured with the help of Body Mass Index (BMI) and an individual in the Western countries are considered as obese if his/her BMI exceeds 30 kg/m2 . The reason for the increasing rate of obesity in the United States is considered due to the high intake of fast food and less physical activity. However, the government of the United States considered McDonalds as the main culprit for the increasing rate of obesity in the country and implemented various policies for restricting the marketing activities that would make fool of the people. In the year 2003, two obesity suits were made against the company regarding the promotion of unhealthy fast food products. However, the court of law dismissed the case being in favor for the company. Moreover, according to surveys it was found that more than 89 percent of the US population did not held the restaurants responsible for the issue. The people suffering from obesity should themselves be health conscious and involve themselves in various physical activities and other measures that would prevent them from getting obese (Currie, Vigna, Moretti and Pathania 1-41). This legal case affected the brand of McDonalds to a considerable extent hence various marketing strategies were implemented in order to create positive awareness among people. ANALYSIS Obesity has become one of the most serious issues all over the world including the United States and increase in the consumption of fast food items has boosted up the issue to a great extent. In the USA McDonalds is highly considered responsible for the higher rate of obesity and several allegations have been made against the company regarding the marketing strategy adopted involving promotion of unhealthy food. Obesity is generally measured with the help of BMI and an individual having BMI of more than 25 kg/m2 is considered as overweight and having BMI more than 30 kg/m2 is considered as obese. However, as per the report of the ‘American Institute of Cancer Research’ a healthy individual should have a BMI ranging between 18.5-20 kg/m2. Individuals having obesity possesses a vast chances of getting affected with various chronic diseases that includes diabetes, hypertension, asthma, stroke, arthritis, heart disease, breathing problems and may also even lead to death. According to surveys, it has been found that the rate of overweight in the USA has increased from 50 percent in the year 1974 to 65 percent in the year 2000. Similarly, the rate of obesity among the US adults over 20 years of age increased from 19.4 percent in 1997 to 24 percent in 2003. The US government has formulated various measures that would restrict the fast food industries in selling health hazardous food products. There was positive response from McDonalds after this issue as they adopted the marketing and promotion strategy that would create better impression for the company. In order to sustain in the market McDonald’s started a movement towards a healthier image through eliminating the menus that would cause obesity and focused on improve the salad section. However, the passing of ‘Cheeseburger bill’ in the year 2004 served beneficial for McDonalds as well as well as other fast food industries because according to the bill the fast food manufacturers, distributors and sellers cannot be alleged for any issues related with obesity. Rather people would be personally held responsible for any health related issues arising out of fast food consumption (FOX News Network., “House Passes Cheeseburger Bill”). McDonalds promoted its sustainable supply chain management for creating a positive image in the mind of customers for better outcome and market share. Promoting food through children in the advertisement was a marketing strategy that expressed that the food is healthy. Moreover, as CSR activity McDonalds was also promoting good health. RECOMMENDATIONS AND CONCLUSIONS Therefore, it is recommended for McDonald’s to implement more effective marketing and promotional activities as well as choose menus that are good for health. Moreover, they should also ensure that their food items contain least amount of calorie and fat that would help in reducing obesity. Moreover, for the safety of people government is also recommended to implement policies that would impose punishment to the company for the promotion of unhealthy food products or marketing of junk food products to children. However, in order to remain safe and sustainable for long run it is required for the company to focus on providing healthier food products to consumers and implement a transparent promotional strategies that would create value towards the company. This will help in reducing the rate of obesity among people and at the same time help in the sustainability of the company for long run. Works Cited “House Passes Cheeseburger Bill.” FOX News Network, LLC. 2013. Web. 28 Mar. 2015. Currie, Janet., Stefano DellaVigna, Enrico Moretti and Vikram Pathania. “The Effect of Fast Food Restaurants on Obesity and Weight Gain.” National Bureau of Economic Research (2009): 1-41. Print. Read More