McDonalds Customer Preferences - Case Study Example

1. Customer preferences were changing i.e. they were after products that are fresh, nutritional as well as healthy. However, McDonald's, though made efforts to change its menu, the market lost to Wendy’s and other competitors could not be recaptured because it was too late to enter the market.

2. Most of the concentration was in US and EU markets whereas as a tactical move, McDonald’s could have been tapping new markets i.e. Asia
3. Marketing Efforts were not directly correct at the target market.
4. Firm focused too much on factors that were not directly related to customers i.e. focus on interior designs rather than producing nutritional food.

Alternatives
1) McDonald's shall further explore its differentiation process. Over a period it relied heavily on cleanliness and other USPs however it needs to create its differentiation in terms of food. The relatively increasing concerns shown by different circles suggest that McDonald’s food is not good for health therefore it needs to create differentiation through cutting-edge new research to prepare more nutritional products.

2) Second alternative strategy which McDonald's can employ is Focus. A differentiation Focus and Low-Cost focus would enable it to concentrate more on its core competencies rather than considering the external environment as the source of its problems.
Recommendations
Given the facts presented in the Case study, McDonald’s needs to focus more on its customer preferences. It may arrange focus groups or conduct market research to understand exactly what customers’ needs are and then shall tailor its strategies to accommodate those preferences. Read More