MCDONALD’S MINI CASE STUDY 6
McDonald’sMini Case Study
McDonaldis slowly losing out to the competitors in the fast food industry inthe European market. Because of this reason, McDonald has set outstrategies that enable it to compete successfully in the Europeanmarket. This paper presents a discussion of the product andconsumer-related factors that McDonald’s should take into accountto compete successfully in the European fast food sector. The paperalso presents the cultural and environmental aspects that McDonald’sneed to consider and carry out re-evaluation.
Theproduct and consumer-related factors for McDonald’s to competesuccessfully in the European fast food industry.
Thereis a need for the fast food industry to offer products that meet thedemands of the consumers efficiently. For instance, for McDonald’sto compete successfully in the European fast food industry, it shouldcome up with a broad range of products that meet the demand of theentire demographic instead of choosing major on satisfying the needsof a particular segment (Schroder and McEarchern 2005). An example,in this case, is that McDonald’s can come up with products suitablefor children while at the same time introduce products for theprofessionals, for instance, a broad range of breakfast options.McDonald’s can also invest on offering differentiated products forits consumers. Through product differentiation, McDonald’s can comeup with more appealing products by contrasting the uniqueness of thedifferentiated products with what the competitors offer (Schroder andMcEarchern, 2005).
McDonald’scan carry out a review of the pricing of its products. By coming upwith competitive prices, McDonald’s can be sure to competesuccessfully in the European fast food industry. The competitiveprices should, however, not compromise the quality of the products byMcDonald’s. The price setting should also be in a way thatMcDonald’s is in a position to generate revenue from the sale ofits products.
Moreimportantly, McDonald’s can come up with products that promotehealthy lifestyles for their clients (Schroder and McEarchern 2005).Such products include low fats and calorie fast food and saladservings alongside the snacks. These healthy foods should not onlytarget the adult segment but the children as well. For this factor toenable McDonald’s to compete successfully in the European fast foodindustry, there should be an increased consumer awareness of thebenefits of these healthy foods.
Culturaland environmental factors affecting McDonald’s that needconsideration and re-evaluation.
Thefast food industry should uphold cultural and environmentallyfriendly values for their products to be appealing to their clients.Taking the case of McDonald’s, there is a need for coming up withproducts and policies of production that promote the environment andat the same time uphold the cultural practices of the Europeans forthem to remain competitive in the fast food industry. For example,McDonald’s needs to consider the adoption of recyclable packagingfor its products. This factor works hand in hand with customerawareness programs and McDonald’s needs to reevaluate the customerawareness on their safe environmental practices to gain customerloyalty (Schroder and McEarchern 2005).
Inas much as McDonald’s have made an investment in the production ofnew products in their menus, it should be in line with the culturalpractices and beliefs of the particular area. Because of thesedifferences, there results in different trends and demands of thevariety of the products from the fast food industry. As a result,McDonald’s should identify the different trends and needs acrossthese diverse cultures to be in a position to come up with a sounddecision on which products to major on in the different states(Schroder and McEarchern 2005). Moreover, as the cultural aspectsevolve due to advancements in technology, McDonald’s should ensurethey make use of the appropriate channels to market and advertisetheir products.
Despitea looming decline in the level of the sales by McDonald’s fromcompetitors in the European fast foods industry, there is still roomfor successful competition. McDonald’s can maximize on the consumerand product related factors to compete successfully in the market.Such factors include competitive pricing and differentiated products.Besides, McDonald’s can carry out a reevaluation on the culturaland environmental factors that influence the demand for theirproducts. For example ensuring that the production of their goods andservices does not harm the environment and reevaluating some of theirstrategies to fit in with the cultural practices of their customers.
Schroder,M., and McEachern, M. (2005). Fast foods and ethical consumer value:a focus on McDonald’s and KFC. BritishFood Journal. 107,4, 212-224.