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McDonalds:Adjusting to Consumer Preferences

Cristof Fischer & Sara Lavery

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McDonalds Basics : 4 Ps Products for all ages

Affordable prices Varying menus across countries

Iconic images and experiential

expectations

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McDonalds Domestic

Uncontrollables

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McDonalds International

Uncontrollables

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A Change in Consumer Trends

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A Pr li i ry R s s

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The IssueFailed efforts at meeting the changing

needs of its health-focused consumer

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Responding to Changes Society adopted a more health-

conscious mentality

McDonalds responded by adding some

healthier options to the menu

But not enoughMcDonalds must take

advantage of its ability to obtain anedge over competitors

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McDonalds and Competition Burger King (primary direct competitor in fast

food industry)

Wendys (secondary direct competitor in fastfood industry)

Subway (top provider of healthy fast food)

All four companies claim that the other threeare the most direct competition - based on

product, price, market, size, location, mission)

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McDonalds and Competition

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Company Profile: McDonalds 2008

31,967 total stores

13,918 in U.S. 6,628 in Europe

Demonstrated interest in global expansion

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Returning to the Core Issue McDonalds is suffering as a result of its

inadequate efforts to adapt to the

changing needs of its increasinglyhealth-conscious consumers

Need to become a Lifestyle Brand

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Recommendations Key focus areas:

Product Development

Marketing

Relationships

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Product Development Increase amount of healthy food options

Gradual transformation

Balance current products and new products Healthier versions of current products

Wheat or protein style buns

Healthier fountain drink choices

Limit portion sizes

Happy Meals: fruits, vegetables, toys

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Marketing Create, build, maintain awareness

Campaign

Subject matter

Health in all areas of life

Well-known, respectable athlete endorser

Substantial visibility worldwide

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Relationships Consumers

Surveys to learn likes/dislikes/needs

Use of input to create menu

Local Community

Ronald McDonald at local events/facilities

Business Partnerships

Alliances with health-related companies New consumer base, awareness of objectives,

enhance reputation

YMCA fitness challenge

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Thank You