Discuss the product and consumer related factors that McDonald’s should take into account in order to compete successfully in the European fast food sector.
The primary aspects for any major fast food chain are taste and quality, and in view of the points showcased in the case study, it is quite evident that McDonalds, is lacking on these fronts in the European market, the sensitivity showcased by the consumers with regards to the environmental issues is also a factor that needs to be taken seriously by implementing campaigns and operational procedures that present McDonald’s, in good light.
The price competition and focus on product development for burgers and fries, lacking in fat is a step in the right direction, however, with the focus on contemporary fast foods, it is imperative that, new product development, competing directly with Nando’s, Tex-Mex, Nando’s and Southern Fried Spicy Chicken.
With the point suggesting that local food is preferred in most European countries, McDonald’s should look into developing products that are limited edition, i.e. for a short promotional period and involve the locals to develop the product through a campaign that help in connecting with the core target consumers.
The key is a quality product line, that mirrors local tastes and preferences and, the step is to create an Image of the brand that is connected with the consumer’s psyche in terms of food and beliefs, i.e. environmentally friendly company.
A strong PR campaign is advised that involves, local celebrity influencers as a voice for the brand, activities that prove McDonald’s direction towards being an environmental friendly company and most importantly, connect with consumers on a one to one basis, by developing themed brand activation campaigns, to carve a niche for McDonald’s.
Explain the cultural and environmental aspects that McDonald’s need to consider and reevaluate.
McDonald’s need to consider the cultural aspect for every European country on an individual level and the reevaluation strategy should have niche factors that connects with the locals, case in point, strategic use of UK and Germany needs to be different in view of the local preferences and attractions.
The diversity of the culture in the European market is a big challenge, since the company needs not only cater to consumers with different tastes and sensibilities; it also needs to connect with the localized consumers from a marketing perspective that is totally ‘them’.
The cultural reevaluation should start with expanding the menu as discussed above, with a focus on products that are more balanced and varied, as done by launching burgers and fries with less fat and connecting with a more localized preference, as the launch of McBaguette in France, helped McDonald’s in record sales (FT, 2015).
The environmental aspects, needs to be in line with the ideology of the European consumers, and the issues have impacted the buying patterns of many customers across Europe, since they perceive the brand an unethical and lacking moral aspects in terms of operational procedures.
The corporate social responsibility (CSR) strategy needs to be focused on in terms of food quality, community initiatives and most importantly the workers welfare and benefits, since these factors are taken into account by European consumers.
The betterment of the image will have a great impact directly on the sales, and the positive word of mouth will create new revenue streams by creating a new consumer base, based on quality food and CSR practices.
References
FT (2015). McDonald’s and its challenges worldwide: a market-by-market look. Food &
Beverage. Retrieved from http://www.ft.com/cms/s/0/f8ac22fc-a7c1-11e4-8e78-00144feab7de.html#slide0
