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cDonalds Leads the Industry Fight Against Childhood Obesity

Problem: McDonalds is targeted for contributing to the rise in childhood obesity Position: McDonalds is in a strong position to reduce its contribution to childhood obesity Recommendations: 1. Continuing to be innovated when creating healthier menu items 2. Educating consumers on McDonalds nutrition journey 3. Transition marketing focus from children to young adults
As one of the leaders in the quick serve industry, McDonalds must adjust their marketing mix to appease customers and overcome competitors. We have found that McDonalds is in a strong position to lessen their contribution to childhood obesity through continuing to be innovators, educating consumers on McDonalds nutrition, and transitioning the marketing focus from children to young adults. The following is our research on the issue of childhood obesity and its affects on McDonalds competitors and the quick serve industry.

McDonalds Shows No Effects By Being Targeted Although McDonalds is targeted for contributing to the rise in childhood obesity, their revenue has continued to grow. Figure 1, below, shows revenue from 2009-2011.

Competitors show decrease in revenues While McDonalds has increased its revenues over the passed couple years, Wendys and Burger Kings revenues have decreased.

Figure 2 Source: (Wendys Co)

Figure 2 shows that in recent years Wendys revenues have decreased starting in 2009. Figure 1 Source: (McDonalds Corporation, 2012) Figure 1 shows increases in revenue from year 2009 to year 2011. The issue of childhood obesity had no effect on revenue reported by McDonalds.
Figure 3 Source: (Burger king worldwide)

McDonalds Focuses on Improving Nutrition McDonalds adjusts their menu, starting with the happy meal to improve nutritional value

Figure 3 shows that Burger Kings revenues have decreased beginning 2009

Wendys and Burger King add Healthy items and calorie count to its menus
Wendys and Burger King added healthy items to their kids meals. The choice of apple slices and milk include those items. Both companies have also added the calorie counts for menu items and meals on their menus.

SWOT Analysis
Strengths 1. Strong Brand Awareness: With over 34,000 locations worldwide, serving over 69 million customers, McDonalds is able to spread the word about healthy menu items to many consumers (McDonalds corporation, n.d.). 2. Large Market Share: McDonalds Corporation owns the largest share of the quick-serve market (OBrien, 2012). The continued domination of the market allows McDonalds to make the healthier changes to the menu. Weaknesses 1. Main Target for Contributing to Childhood Obesity: McDonalds marketing of the Happy Meal to children is the main object of criticism and how the corporation contributes to childhood obesity( A., F.,( 2011)). 2. Poor Perception of Nutritional Value: Revelations about to use of pink slime, as well as the high levels of calories and sodium in many of McDonalds menu items has convinced consumers that McDonalds food has poor nutritional value (Rosenbaum, 2012). Opportunities 1. Increase in Health Awareness: Due to an increase in consumer health awareness, McDonalds is making changes, such as creating a nutrition progress report to prove to consumers that their health is a priority (Mcdonalds usa nutrition, 2012). 2. Addition of Healthy Menu Items: McDonalds Corporation has begun changing the menu so that it now includes healthier options, such as all white meat chicken products and fruit/vegetable side dish items.

Threats 1. Accusation of cradle to grave marketing: McDonald's must convince consumers that they are individually important and not a product. 2. Industry competition with healthier options: McDonald's has changed marketing efforts and added healthier menu options Market Analysis McDonalds Plan to Win incorporates five elements People, Product, Price, Place and Promotion. McDonalds Customers are Worldwide McDonalds main target for their marketing mix are young adults aged 18-35. With restaurants around the world, McDonalds is available to anybody of any culture and any income. McDonalds Makes Products for Everyone To be a global brand McDonalds cannot have a standard product. Every McDonalds location adapts to the local customer. There are products for vegan, Muslim, Hindu, etc. McDonalds Prices Provide Value McDonalds Dollar Menu gives value to the customer. "Not only are items sold at a dollar, but it presents an extra value to the consumer." (Yue, 2012). The value customers receive is a primary reason customers choose McDonalds. Amount of Locations Benefit Customers With over 34,000 locations worldwide (McDonalds Corporation, 2012), McDonalds always seems to be nearby. The exposure and availability of McDonalds makes it an easy choice for children to choose.

McDonalds Excels at Promoting Products


McDonalds uses several strategies to promote its products including through the TV and mailing of coupons. With emphasis on improving childrens health and nutrition For the first time, 100% of our national marketing efforts to kids will include nutrition or active lifestyle messages Neil Golden, McDonalds Chief Marketing Officer (Bryson York, 2012).

Sources
A., F. J. (2011). Confronting Obesity: A Case Study of the Corporate Social Responsibility of McDonald's. Advances in Management , 4 (11), 4,20-23. Bryson York, E. (2012, Apr 27). McDonalds tying summer Olympics to new effort to promote children's well-being. Retrieved from http://articles.chicagotribune.com/2012-04-27/business/ct-biz0427-mcds-brand-20120427_1_consumer-and-business-insightsmarketing-officer-fragile-global-economy Burger king worldwide. (n.d.). Retrieved from http://www.netadvantage.standardandpoors.com.proxytu.researchport.umd.edu/NASApp/NetAdvantage/simpleSearchRu n.do?ControlName=CompaniesSimpleSearch McDonald's Corporation. (2012). Frequently asked questions: How many restaurants does McDonalds have. Retrieved from http://www.aboutmcdonalds.com/mcd/student_zone/FAQs.html Mcdonald's usa nutrition journey: A 2012 progress report. (2012, September). Retrieved from http://www.aboutmcdonalds.com/content/dam/AboutMcDonald s/Newsroom/Electronic Press Kits/Nutrition EPK/McDonaldsNPR.pdf O'Brien, K. (2012, May 4). How mcdonald's came back bigger than ever. Retrieved from http://www.nytimes.com/2012/05/06/magazine/how-mcdonaldscame-back-bigger-than-ever.html?pagewanted=all&_r=1& Rosenbaum, M. (2012, February 1). Mcdonald's announces end to "pink slime" in burgers. Retrieved from http://abcnews.go.com/blogs/health/2012/02/01/mcdonaldsannounces-end-to-pink-slime-in-burgers/ Mcdonald's corportation. (n.d.). Retrieved from http://www.mcdonalds.com/us/en/home.htm Wendys co. (n.d.). Retrieved from http://www.netadvantage.standardandpoors.com.proxytu.researchport.umd.edu/NASApp/NetAdvantage/cp/companyFin ancials.do Yue, L. (2012). The Dollar Menus Shrinking Payoff. Retrieved from http://www.lexisnexis.com