Thursday, October 24, 2013

At McDonalds, Salads Just Don’t Sell: Oct 18th 2013.





McDonalds has received criticism regarding its high calorie menu that is making America fat. Claims that the company’s products were a leading cause of obesity and other health issues have led McDonalds to introduce healthier menus in a bid to fix its tainted image. The interesting issue here is that this attempt has failed to get back the company’s image, but is instead affecting its sales. One would expect that by introducing a healthier menu, customers would flock in more. This though has not been the case.
Introduction of salads have only crowded the McDonalds’ menu, complicating the assembly process, leading to a slow service and consequently dissatisfied customers. Customers already identify McDonalds with cheap fast food. Introducing new products that costs more is only driving clients away.
This is a marketing strategy that is aimed at re-branding the company’s image which has been tainted. The article is thus very relevant to this class, this being a marketing class. McDonalds need to stick to the brands it is known far. The healthier menus are failing by the day. The salads sales were only 2 to 3 percent of their total sales, meaning that their clients still go for the traditional McDonalds’ products.
This knowledge can be applied to other business as well. If a product is doing well in the market despite the criticism, aim to improve the same product while maintaining the same service and value accorded to the customers. An attempt to abandon a product that customers already identify and are comfortable with in a bid to replace it with a more expensive product might be detrimental.
McDonalds’ products are consumed worldwide despite them being branded by critics as unhealthy. Customers go to McDonalds for value rather than for health. Introducing salads in their menu is not working even in their foreign chains. Customers already identify with the cheap fast foods. If they have to introduce anything healthy, they should do so gradually rather than replacing their traditional menu.
http://online.wsj.com/news/articles/SB10001424052702304384104579139871559464960?mod=WSJ_business_LeftTopHighlights

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