Strategic  Marketing  

Case  Study  1:  Addressing  Changing  Food  Values  
 

    Prepared  for:   Dr.  A  H  M  Ehsanul  Huda  Chowdhury       Prepared  by:   Md  Masudur  Rahman   ZR  10   BBA  17th       IBA,  University  of  Dhaka   November  19th,  2012  

 

which clearly demonstrate their commitment to become market driven. ‘Social responsibility challenges are always evolving and we are focused on learning from experts and adapting our operations to maximize the positive impact we can have on our society. McDonald’s Australia has given immense importance on becoming a market driven company. they were perfectly poised to gather data regarding consumers’ needs. and environmental groups. including the government.’ -Catriona Noble. Market research is the key to ascertaining the needs of customers. the media. In order to maintain the edge. it has undertaken the following strategic marketing initiatives. With their huge reach and market share. And there are no alternatives: either adapt to the changing demands or perish. How do you think McDonalds has given importance to develop affective strategic marketing initiatives to become market driven? Consumers are nowadays more health and nutrition conscious. Mc Donald’s Australia This statement signifies the commitment of McDonald’s Australia towards being a market driven company. They are demanding healthier options and the fast food industry has gone through somewhat of a revolution to keep up with these demands.   1. Chief Operating Officer. health professionals. It has rightly sensed the shifts in the market demand in the fast food industry.   ADDRESSING  CHANGING  FOOD  VALUES   2   . • Market study and research: McDonald’s Australia rightly set about trying to know what the consumers wanted first. McDonald’s Australia realized that they have to uphold the interests of all the stakeholders in order to remain a competitive business venture. Its approach was to listen and learn. obesity has become a major health concern thus people are thinking twice before consuming fat and salt rich fast foods. • Serving stakeholders: McDonald’s Australia stakeholders are diverse. and include: o o o o Customers – who range from the very young to the elderly Business partners – including franchisees and suppliers Employees – with more than 65. Worldwide. and is composed of two key elements: qualitative research and quantitative research. radical change in their product offerings and services are required to stay competitive in the market. It also has realized that sensing the shift is not enough. Stakeholders are coming to expect more out of businesses in terms of corporate citizenship.000 people employed throughout Australia Opinion leaders – or people who shape the ideas of the nation.

brand image. which is similar to the amount of sugar found in bread rolls in the supermarket Reducing the amount of salt   ADDRESSING  CHANGING  FOOD  VALUES   3   . The qualitative research involved two hour. McDonald’s took a 2-fold approach in improving its menu. In addition to such research projects. The end result of all this research is that consumers told McDonald’s Australia what they wanted. • Responding to research findings: McDonald’s Australia did not just stop at measuring and finding out consumer insights and needs. which is low in saturated fat and trans fatty acids Reducing the amount of sugar in buns to five per cent.   In November 2005. they also implanted the required changes. McDonald’s Australia conducts quarterly tracking studies to measure customer satisfaction. They wanted o o o More choice. and how much salt. McDonald’s not only changed its products and ingredients. one-on-one interviews with 35 people. while the quantitative research involved telephone interviews with 2. it also brought about some strategic changes such as: o Participation in obesity summits and forums by the CEO o Relationship with The Food Group Australia to obtain nutritional advice With the help of expert advice. Improving existing products. o Some thought they had a bad reputation and didn’t use top quality ingredients. with healthier and lighter food options Increased visibility in food labeling and More information about what they were eating: how much fat.602 people throughout the nation. These results as a whole constituted the consumer perception towards McDonald’s. how much sugar. And McDonald’s took effective actions to fulfill these needs. There were positive findings but they also identified areas needing improvement. and creating new ones Existing products were improved by methods that include: o o o Switching to a canola and sunflower oil blend. • Responding to Changes: In trying to meet customer demands. McDonald’s Australia undertook a major research project called ‘Project Discovery’. The research project unveiled that: o Majority of the customers thought McDonald’s were improving their food quality o Supported local charities o Provided speedy service. quality of service etc. The project made use of both qualitative and quantitative research techniques.

apple juice and water..makeupyourownmind. For instance. McDonald’s Australia developed an advertising campaign that had the key goal of communicating their new healthier food options. which contain pasta shapes with no artificial colors or flavors. with items containing less than 10 grams of fat The Deli Choices range. • Communicating to Consumers: Any business needs to communicate to its customers. o McDonald’s Australia was the first quick service restaurant chain to earn the Heart Foundation tick for some of its meals. McDonald’s Australia has a reputation as a responsible advertiser. countering misconceptions within the community.com. The ‘make up your own mind’ website at www. They are both interactive and informative. The McDonald’s Australia websites are designed to be appealing to teenagers. New packaging includes percentage daily intake information. This makes it easier for customers to select the healthier meal options. o Television and o The Internet Each media type targets its audience carefully. again with items containing less than 10 grams of fat The option of multi-grain rolls in the Deli Choice range The Pasta Zoo Happy Meal. o Billboards. to see what goes on inside McDonald’s Australia to make up their own mind. that it listens to its customers and has made the appropriate changes. o Radio. ‘zoo goo’ or a tomato dipping sauce.o Creating smaller serve sizes for muffins. It has reduced advertising during children’s television programs by sixty per cent in recent years. different groups of people listen to the radio at different times of the day.   New products include: o o o o The Salad Plus range. and supports the strict advertising codes that exist for the quick service food industry. so customers can see how their food choices relate to their overall daily requirements. McDonald’s Australia has made use of various advertising media: o Print. McDonald’s Australia has indeed taken a strategic stance to become market driven.au invites the customers into the virtual store. and a serve of fat reduced milk with a flavoring straw New Happy Meal Choices including fruit bags.   ADDRESSING  CHANGING  FOOD  VALUES   4   . and make use of latest design and technology. So it can be seen that.

They have taken all logical. quality of service etc. but also revealed areas that needed attention. They have successfully covered all the bases. I believe McDonald’s Australia has taken comprehensive steps to become market driven. shifted their strategies and adapted to their changed market environment. practical and feasible steps that could have been taken. is extensive market research. Obesity has become a serious concern and consumers are now demanding healthier options. The results showed some pleasing consumer perceptions. A detailed. In light of this scenario. Apart from quarterly tracking studies. which measure customer satisfaction. particularly in the area of health.o o o o   It has identified the stakeholders and taken steps to uphold their interests. They also realized that they could not operate without creating a winwin situation among all the stakeholders thus. McDonald’s has adapted itself by implementing market driven strategies. It has undertaken extensive research projects to determine consumer insights and needs and It has brought about significant changes in its products. They have tried to address issues to nutrition and obesity and maximize the positive impact they can have on the society. These distinctive capabilities enabled McDonald’s to become even more customer and market focused.   ADDRESSING  CHANGING  FOOD  VALUES   5   . It has taken steps to communicate these steps to the customers. why? and if not. Views of consumers regarding fast food have changed and now they are more health conscious. brand image. they have emphasis on corporate citizenship and corporate social responsibility. All of these actions make it evident that McDonald’s Australia has put significant importance on developing affective strategic marketing initiatives to become market driven. The qualitative research involved two hour. 2. they undertook a major research project called “Project Discovery” in November 2005. services and strategies to meet those new demands. Do you think the marketing strategies taken by McDonalds in the case study were the only solutions or strategies that can be taken? if yes. McDonald’s Australia has identified all the stakeholders and their changing needs. one-on-one interviews with 35 people. These findings provided valuable insights upon which McDonald’s could take action and it did.602 people throughout the nation. A significant portion of the customers surveyed thought McDonald’s provided value for money.. Market Study: Principal among the initiatives taken by McDonald’s Australia. while the quantitative research involved telephone interviews with 2. Building Competitive Advantage: The most distinctive capability that McDonald’s has over its competitors is it can serve better food faster and at a cheaper price. why? Despite having a huge market presence. McDonald’s has changed its tried and tested modus operandi. step-by-step explanation is given below: Identifying Self-Orientation: Firstly. 72% respondents said it provided speedy service and 79% said it is improving its food quality.

My Suggestions: I believe there are a few additional steps that McDonald’s could have taken to address the problem at hand. Because of these steps. Superior value represents positive net benefits and that is what McDonald’s aimed for. McDonald’s Australia has made use of various advertising media: print. they aired RDCs in the morning targeting office goers promoting their breakfast menu etc. o o McDonald’s should also be transparent to people about the source of their ingredients. Communication: These changes and shifts in strategy alone did not do the trick. McDonald’s should associate itself with shows like ‘Biggest Loser’ to improve image. o Creating new products: These include healthier food options such as the salad plus range. McDonald’s Australia developed an advertising campaign that had the key goal of communicating their new healthier food options. it was the first quick service restaurant chain to earn the Heart Foundation tick for some of its meals all the while retaining its iconic brand image. It aptly sensed the changes in the market and adapted itself to those changes. The steps taken are mentioned below: • Strategic shifts: o Participation in obesity summits and forums by the CEO o Relationship with The Food Group Australia to obtain nutritional advice • Product improvements: o Improving old products: These include switching to a healthier canola and sunflower oil. The McDonald’s Australia websites are designed to be appealing to teenagers. McDonald’s also started using extensive nutritional labeling. radio. They are both interactive and informative. McDonald’s kept to the strict advertising code and reduced advertising during children’s television programs by sixty per cent in recent years.g. I strongly support their strategies and would have done more or less the same to address the issue. customers needed to know about these. Many giant food chains are being accused of misappropriation of ingredients. deli choices range etc. They segmented their communication as well e. television and the Internet. countering misconceptions within the community. Conclusion Due to the above-mentioned initiatives by McDonald’s Australia.       ADDRESSING  CHANGING  FOOD  VALUES   6   . so as to help customers make a better choice. billboards. Thus.   Customer value creation: Customer value represents the difference between benefits and costs after the purchase of a product. and make use of latest design and technology. which contain less than 10g of fat. It gauged what the customers wanted and tried to deliver accordingly. reducing fat and sugar etc.

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