1. Mcodnalds and Obesity
Case study ,done by
Bodoor Ghousheh
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2. Table of content
Introduction
3-4
The problem
5
The world
6
Global reactions to obesity
7-10
Mcdonald response
11-14
The market reaction
15
The prince chimes in
16
Summary and
Questuons and answres
17-23
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3. my case is mainly about mcdonalds international
struggle towards improving its image , especially in
certain countries , after the new trends toward stopping
childhood obesity
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4. Introductory film
http://www.youtube.com/watch?v=f
c7tSgx4Ers
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5. 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.
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6. 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
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7. 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.
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8. 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.
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9. 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
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10. 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.
•
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11. 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.
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12. 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.
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13. 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.
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14. 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).
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15. 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 .
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16. 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.
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17. 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).
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18. 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.
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19. 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
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20. Question 3
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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
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21. 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.
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22. Answer to question 4
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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,
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23. 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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