Happy Meal Case
The core problem
Happy Meal’ sales are still increasing but with a decreasing growth rate. Even if they give more choiceswith a healthy food, people keep considering Mac Donald’s as a brand of junk food.
Concerning the Happy Meals, innovations in 2004 were a real success. Nevertheless, such a success has never beenachieved since this year, that’s why McDonald wonders how useful innovations are.
* Present everywhere in the world thanks to the franchised distribution whichimproves the creation of new restaurants (more than 31, 000 restaurants in the world)
* A major company (a turnover of $22 billion in 2007)
* A brand associated with child’s pleasure. This leads tomake the parents taking the decision to go to Macdonald’s to spend a good time in family. ( play areas, toys, snacking concept – informal food, less rules than at home- )
* The new design ofrestaurants, it’s more palatable for customer
* An increase in market shares
* An improvement of the brand’s image
Happy Meal’s strengths
* Box packaging: paper, colors, printed plays onthe packaging
* More choices of food (mini fish, potatoes)
* A healthier food is proposed (carrot sticks, fruit puree, cherry tomatoes) and it’s realy attractive,(the implemented strategyworks) 60% of HM’s are under 585 kcal which proves that families tend to choose healthier HM’s over classic ones.
* Nutritional data of classic menus (in 2003, -7pointsfor “I trust the quality of the ingredients), junk food sticks to the brand
* A priori Experience and actual Experience aren’t balanced. There has been a change in the relationship between theconsumer and Mac Donald’s: shift from “passion” to “neutral benevolence”
* Toy’s quality
* The increase of HM’s sales is less and less significant and in 2008 there is a decrease by...