Mcdonald
2002: McDonald’s, one of the the biggest global brands experienced its first quarterly loss since 1965… Sales were falling & hundreds of under‐performing restaurants were closed…
Trends that were impacting on the previously insurmountable McDonald’s included: A new breed of ‘quick casual’ restaurants offering many A new breed of ‘quick casual’ restaurants offering many ‘healthier options’… The backlash against the ‘super‐size’ image which was being projected towards McDonald’s through the media towards McDonald s through the media…
McDonald’s product life cycle
In terms of the product life cycle, quick service restaurants had reached maturity in many markets and needed fresh life through innovative ideas to prolong their lifespan. Incredibly, McDonald’s had failed to take full account of y such changes in the market place and accordingly experienced a Strategic Drift…
Consumers were seeking more food variety & healthier eating… Accordingly, Accordingly in seeking to provide a more balanced offering offering, McDonaldʹs developed new products including: f fruit, , salads, sugar‐free fruit drinks for children and, more chicken chicken.
McDonald’s Strategic Drift….. g
McDonaldʹs had built its success around a formula of :
• providing a range of standardised high quality products, • quckly and cheaply… however… • Whilst for many people there is increasingly an emphasis on Whilst, for many people there is increasingly an emphasis on
instant service…, …research indicated that modern consumers of all ages were seeking experiences that are more individualised than were seeking experiences that are more individualised than in the past…
Consumer Trends – indicated:
People moving away from burgers and fries… towards ʹhealthy optionʹ meals such as sandwiches and salads. y p Organic food rising in importance and forecast to account for 20% of all supermarket food purchases by 2010.