mcdonalds and obesity

International marketing/ case 2-7 1

Mcodnalds and Obesity

Case study ,done byBodoor Ghousheh


Table of content

3-4 Introduction

5 The problem

6 The world

7-10 Global reactions to obesity

11-14 Mcdonald response

15 The market reaction

16 The prince chimes in

17-23 Summary andQuestuons and answres


my case is mainly about mcdonalds international struggle towards improving its image , especially in certain countries , after the new trends toward

stopping childhood obesity


Introductory film

http://www.youtube.com/watch?v=fc7tSgx4Ers




The problem

• Governments and health advocates fear that their nations kids will be as fat as Americans .

• About 30% of american children are obese.

• The highest percent of obese people of any country of the world.


The world

• The worst obesity percent worldwide was among children.

• The rate of obesity among children in europe increased dramatically after 1995.

• In Britain one in 5 children is obese.

• In spain 30 % , in Italy 36 percent

• The nomber of obese children will double over the next ten years.

• The world Health organization has warned of escalating global epidimic of obesity


Global reactions to obesity• Fast food portion sizes are

the problem.• Others blame the advertising

especially to children • Europe threat to bann

advertisng icons such as tony the tiger and ronald mcdonald, then to legislation.

• Call for the food industry to set its own regulations on food, or face bans like tobacco industry.


Global reactions to obesity• In USA comparison between

Mcdonalds and tobacco industry is expanding.

• Ron mcdonald VS Joe Camel.• Denmark : Banning tv ads for

children is an important strategy .

• In France the law enforce food marketers to choose between adding a health message to commercials or pay 1.5 percent tax on their ad budjet.


Continue…….

• Ireland bans celebrities from food and beverages ads aimed at children .

• They required soft drinks companies to carry a visual warning or voice warning that snacking on sugary foods can damage teeth.

• The fear is to transmitt this trend to other European countries and theUK.

• The UK focuses on self regulation , and regulation as a last resource.

• The toughest laws against advertising to children have long been in Scandinavia.

• The europian Union is on it, Washington is on it, the ball is rolling now and the food companies has to do something


Mcdonalds response

• McDonalds has reacted to the obesity issues in several ways:

• In the UK it changed its menu to a much healthier foods(changes campaign) in order to change the way people think about MacDonald's , but it did not really help, because the market position in the UK is not as strong as in the states.

•


The next approach to obesity problem

• After the release of the film super size me in UK, McDonalds defended itself with a full page newspaper ads discussing the film , it focused on the healthier menu like grilled food.

• McDonalds in the UK launched an ad campaign aimed at kids featuring Ronald McDonald and animated fruits and vegetables singing healthy songs for kids.


Mcdonals strategy• Expanding its healthier menue ,

without neglegting its golden arches.

• Mcdonalds started to introduce local healthy traditional foods in each country as a part of its menue.

• In Australia it reduced its ads towards kids by 50%.

• French operation raised a printed ad saying that kids should not eat at the resturant more than once a week, Mac answered by saying that the majority of nutritionist belive that Mac can fit into a healthy diet and hired 2 french nutritionists.


Mac in france

• Mac strategy in France was to focus in its ads on the healthy massege about excersice and balanced diet, France health mimistry expected to let marketers choose 3 or 4 healthy ad masseges.


Mac strategy

• Menue chages.• Reworking the ads• Still marketing to kids (did

not change its segmentation, but modified its promotions towards kids to be healthier, YUM CHUM.

• Strategic allience with disney failed (mutual descision).


The market reaction

• Sales suffered worldwide.• By 2007 positive changes

in sales occurred, because it changes its menue with new products such as chicken wrapps, and smoothies.

• Figures shows that people are ignoring governments publicity about healthy food .


The prince chimes in

• Prince Charles blamed Mac for the obesity trend , and suggested to ban it.

• The princess comments were attacked by many sources , and the prince had to downplay his comments.


Summary

• Mac is trying to expand and reach new markets , but it is being threatened by the social pressure from the nutritionst, health people, governments , even kings and princes!

• Mac tried to change this threat by changing its menue, promotions, allying with disney, adding traditional foods such as Mac Arabia ,Mac also donates a portion of its earning to Ronald Macdonald house which helps children with life threatining illness (tries to show people that it is a social responsible company).


Question One

• How should Mac respond when ads promoting healthy lifestyle featuring Ronald Mcdonald are equated with Joe Camel and Cigarate ads? Should Mac eliminate Ronald Mcdonald in its ads?

• In my opinion ,changing the character Ronald or eliminating it is not the answer, the answer is for Mac to emphasis that cigarrets are always harmful, in contarst Mac menue has a variety of healthy options, so the comparision is wrong because it is of totally different types, Mac can should target its ronald to do more advertisment for healthy food and nutrition, they can also label their food with the amount of fat , cholesterol, sugar , and food, other suggestion is to encourage kids to eat healthier foods by adding toys to healthy foods only.


Question two

• Discuss the merits of the law proposed by france that would require fast-food companies either to add a health message to commercials or pay 1.5 percent tax on their ad budjet, propose a strategy and defend your recommendation?

• 1- I think this strategy gave the food marketers the freedom to choose between paying or advertising about healthy foods, in my opinion I think the best strategy is to focus on adding healthy masseges , as we all know how french people really care about their health, it will not cause anxity, and the best strategy is to focus on product differentiation such as : whole wheat bread, grilled chicken, corn made bread……etc


Question 3• If there is no evidence that obesity rates fall in those countries that ban food

advertising to children, why bother?• According to all scenario if there is no evidence for proving that fatness rates fall in

those countries that ban food advertisement children, still should concentrate on food advertisement, because obesity rate is fall or not, There is no decrease in the percentage of obese children in developing countries but there is no indication of increase in the number of obese children. The number of obese children stays the same because of addiction by the existing percentage of children, but government has strong evidence on main reason for obesity is harmful food items,so this reason sufficient for prohibit food advertising to children. The obesity rate cannot rapidly fall, it will take some time, because parent’s lifestyle should modify as well as children’s eating style should also be change. So we cannot access by any short term data, which is not helpful to change the eating style of the children’s, People eat

• less traditional food and have do less physical work in developed countries especially in Scandinavian countries where there is less working hours. The children obesity becomes very big problem in worldwide


Question Four

• The broad issue facing Mac in the uk is the current attitude towards rising obesity. The company seems to have tried many different approaches to deal with the problem, but the problem persists.list all the problems facing Mac and critique its various approaches to solve the problem.


Answer to question 4• Problems:-• 1- Some opine that fast-food portion sizes are partly to blame.• 2- Some people say advertising is to blame, particularly ads aimed at children.• • Solution :-• 1- ad campaign aimed at kids featuring Ronald McDonald and animated fruit and vegetable characters

called Yums.• 2- McDonald’s Corp. later issued a statement claiming that “the majority of nutritionists” believe

McDonald’s can fit into a balanced diet.• 3- to use positive lifestyle messages in ads—like emphasizing the importance of physical exercise and a

balanced diet—rather than grim health warnings.• 4- McDonald’s defense is that McDonald’s Ronnie’s Yum Chum friends are positively bursting with

healthy advice.• 5- tie between McDonald’s and Disney’s line of cartoon characters, a marvel for attracting young

children to the Golden Arches.• • 6- McDonald’s changed menu—with such items as porridge, smoothies, and chicken wraps—is one

reason for the growing business.• • 7- Commenting on a McDonald’s plan to send Ronald McDonald to schools to preach about nutrition,•


Question 5

• Develop a long term plan and a short term plan for Mad.

• Answer: Long term plan is for Mac to enhance its perceived picture in the minds of people and show them the (healthy side of MAC)

• For the short term plan: healthy ads, different healthy products, with more fiber and less cholesterol, participating in more social responsible activities like: recycled food sacks , 10 percent of revenues to cure cancer……. etc

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