Abstract
The case discusses how McDonald''s has repositioned itself to address lifestyle changes that consumers are making, as the widespread concern over obesity has increased. McDonald''s reported its first quarterly loss in the company''s history in 2002. This was clearly because McDonald''s did not appear to engage with the increasingly vocal debate about global obesity and no longer appealed to its core group of consumers. Many of these consumers wanted to eat more healthily and chose options other than McDonald''s. Europe is a region with significant levels of people suffering from obesity and overweight problems, especially in the case of children. Therefore, Europe also has significant populations of these emerging consumers who are becoming increasingly health conscious and cutting down on the consumption of products linked to obesity. This case specifically examines the three key initiatives undertaken in terms of new products by McDonald''s in Europe, such as: (1) focus on fruit and vegetables; (2) the Salads Plus range; and (3) the Go Active! Adult Happy Meal, along with other continual efforts at communicating McDonald''s Europe''s commitment towards their consumers'' health and well-being. All of McDonald''s European health-focused initiatives, along with additional impetus provided by special promotions to capitalise on the World Cup Football 2006 in Germany, have led to the strongest quarterly result in more than 10 years for McDonald''s Europe, for the second quarter ending 30 June 2006. The obesity epidemic seems to be getting worse as recent studies indicate, but at least McDonald''s is now likely to be perceived as actively making efforts to partner the consumers in their fight against obesity, rather than being one of the main culprits behind the epidemic. The case has a two-fold objective. Firstly, it seeks to help students understand how global fast food brands such as McDonald''s, in the face of increasing backlash due to being directly linked to growing worldwide obesity, are trying to reposition themselves to focus on the emerging health conscious consumers, without alienating their core of fast food lovers who have made McDonald''s the brand that it is today. Secondly, it asks students to apply key theoretical concepts in marketing such as consumer decision making and factors influencing consumer behaviour to the McDonald''s example, to analyse whether such initiatives will work in the long run towards repositioning, rather than just being short term sales boosters. The case is meant for first or second year undergraduate students as part of the introduction to marketing, or even the consumer behaviour curriculum. The case is accompanied by an additional theoretical reading note as well as a teaching note. The reading note discusses the impact of obesity concerns on consumer decision making about food products and out-of-home food consumption, and provides additional support to help the students answer the questions given at the end of the case. The teaching note includes several key aids for instructors such as: (1) the highlights of the case; (2) the target audience; (3) the suggested student assignment (for those instructors who may not want the students to answer the specific questions given at the end of the case); (4) suggested additional readings (provided with this case); and (5) suggested teaching approach, etc. However, the primary focus of the teaching note is to provide a proposed analysis of the case, which specifically answers the questions given at the end of the case.
About
Abstract
The case discusses how McDonald''s has repositioned itself to address lifestyle changes that consumers are making, as the widespread concern over obesity has increased. McDonald''s reported its first quarterly loss in the company''s history in 2002. This was clearly because McDonald''s did not appear to engage with the increasingly vocal debate about global obesity and no longer appealed to its core group of consumers. Many of these consumers wanted to eat more healthily and chose options other than McDonald''s. Europe is a region with significant levels of people suffering from obesity and overweight problems, especially in the case of children. Therefore, Europe also has significant populations of these emerging consumers who are becoming increasingly health conscious and cutting down on the consumption of products linked to obesity. This case specifically examines the three key initiatives undertaken in terms of new products by McDonald''s in Europe, such as: (1) focus on fruit and vegetables; (2) the Salads Plus range; and (3) the Go Active! Adult Happy Meal, along with other continual efforts at communicating McDonald''s Europe''s commitment towards their consumers'' health and well-being. All of McDonald''s European health-focused initiatives, along with additional impetus provided by special promotions to capitalise on the World Cup Football 2006 in Germany, have led to the strongest quarterly result in more than 10 years for McDonald''s Europe, for the second quarter ending 30 June 2006. The obesity epidemic seems to be getting worse as recent studies indicate, but at least McDonald''s is now likely to be perceived as actively making efforts to partner the consumers in their fight against obesity, rather than being one of the main culprits behind the epidemic. The case has a two-fold objective. Firstly, it seeks to help students understand how global fast food brands such as McDonald''s, in the face of increasing backlash due to being directly linked to growing worldwide obesity, are trying to reposition themselves to focus on the emerging health conscious consumers, without alienating their core of fast food lovers who have made McDonald''s the brand that it is today. Secondly, it asks students to apply key theoretical concepts in marketing such as consumer decision making and factors influencing consumer behaviour to the McDonald''s example, to analyse whether such initiatives will work in the long run towards repositioning, rather than just being short term sales boosters. The case is meant for first or second year undergraduate students as part of the introduction to marketing, or even the consumer behaviour curriculum. The case is accompanied by an additional theoretical reading note as well as a teaching note. The reading note discusses the impact of obesity concerns on consumer decision making about food products and out-of-home food consumption, and provides additional support to help the students answer the questions given at the end of the case. The teaching note includes several key aids for instructors such as: (1) the highlights of the case; (2) the target audience; (3) the suggested student assignment (for those instructors who may not want the students to answer the specific questions given at the end of the case); (4) suggested additional readings (provided with this case); and (5) suggested teaching approach, etc. However, the primary focus of the teaching note is to provide a proposed analysis of the case, which specifically answers the questions given at the end of the case.