mcdonald’s : the balanced active lifestyles menus

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Operations Management McDonald’s : The Balanced Active Lifestyles Menus - Marianna Sigala IMT Dubai Semester 2 Case Study Presentation 06/12/22 1

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McDonald’s : The Balanced Active Lifestyles Menus

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Page 1: McDonald’s : The Balanced Active Lifestyles Menus

Operations Management

McDonald’s : The Balanced Active Lifestyles Menus - Marianna Sigala IMT Dubai Semester 2Case Study Presentation

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Page 2: McDonald’s : The Balanced Active Lifestyles Menus

Introduction

• Largest fast food retailer in the world

• One of the worlds best known brands

• More than 30000 chains all over the world

• Present in 119 countries

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New Product Development

• New product development (NPD) is the complete process of bringing a new product to market

• Changing needs of the customers led to the beginning of Balanced Active Lifestyles initiative

• Encouraging signs shown by the customers towards the initiative

• Statistics show new menu well received by customers

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New Product Development

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• Idea Generation- new idea about a new product, process, ideas can be obtained by SWOT analysis

• Idea Screening- to eliminate unsound concepts prior to devoting resources to them

• Concept Development and Testing-Develop the marketing and engineering details

• Business Analysis-Estimate profitability and break-even point

• Beta Testing and Market Testing-Produce a physical prototype or mock-up

• Technical Implementation-New program initiation

• Commercialization-Launch the product

• New Product Pricing-impact of new product on the entire product portfolio

New Product Development

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Balanced Active Lifestyle Pillars

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Menu Choice• Product range and variety has been increased by

adding new product items

• Developing new product lines and renovating existing ones to include healthier options

• New developments customized to reflect the tastes and customs of local market

Examples: McDonalds Taiwan : toasted rice burger.

In Denmark and Sweden the side order includes carrot slices , McD France and Germany offers Danone drinkable yogurt as a drink along with the meals.

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Physical Activity• Aims to find fun ways to incorporate fitness in their lives

• Physical activity initiative localized in order to appeal to people

• Global “Go Active” programme- online tool – provides online physical resources and personal fitness assessment tools.

• Collaboration with International Olympic committee – Sports persons- to endorse the fitness programme and sharing tips.

• Stepometers in Happy Meals, sponsorship with local sports event etc.

• Go Active with Ronald McDonald- to promote the importance of walking and regular exercise among kids.

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Page 10: McDonald’s : The Balanced Active Lifestyles Menus

Education and Information

• Smart, appropriate choices require relevant information

• McDonalds has chosen 3 major distribution media channels to spread information - the internet, tray liner and brochures

• Locally relevant content depending on the country

• Developing interactive and fun way to deliver the message

Examples :

Websites contain interactive web based tools, whereby customers can drag a food item on to a virtual tray and calculate the nutrition value online.

McDonalds USA provides wallet cards – showing nutritional values and food exchanges.

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Implementation of Balanced Active Lifestyle• Initiated at corporate level in 2003 followed by localized

action to reflect local preferences

• A global director of nutrition, who serves as a resource and key point for all geographic business units

• New product development involves all parts of the company as well as external experts

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Question 1

What were the main drivers for NPD at McDonalds ?Answer : • One of the major trends in the food industry being, more and

more people concerned about healthy food and lifestyle.

• Healthy + low fat food and daily exercise being the major issues affecting consumers’ decision making about their food.

• McDonalds developed and promoted new and healthier menu also catering to local tastes and customs.

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Question 2

What were the sources of new product ideas?

Answer:

• The sources for McDonalds new menu were the cross functional international team of people from within the Organization as well as outside.

• Experts from areas of nutrition, wellness and activity.

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Page 15: McDonald’s : The Balanced Active Lifestyles Menus

Question 3To what extent has McDonalds approach to NPD has followed

the stage model of NPD?

Answer-

1. Idea Generation- development of balanced active lifestyle

2. Concept Development and Testing- Testing the idea among the cross functional teams within the company as well as the experts outside.

3. Beta Testing and Market Testing- performance statistics from data at the stores

4. Technical Implementation – Launching ‘BAL’ programme, online awareness and print media.

5. Commercialization- Launching the customized menus globally, creating promotional offers.

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Question 4

Critically assess McDonalds approach to NPD in the

Balanced Active Lifestyle Initiative.

Answer:

• Balanced lifestyle approach initiated in the corporate level and being followed locals to reflect and adapt local habits

• A Cross functional-active lifestyle team around the world to provide strategic direction and facilitate the best practices.

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Critically assess McDonalds approach to NPD in

the Balanced Active Lifestyle Initiative -

• A global director of nutrition serving as nutrition expert for all global geographical business units

• McDonald’s Corporate teams partnered with the local food experts like “ The Food group Australia” and “Europe Nutritionist Steering Group” for drawing knowledge from external nutrition experts.

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Question 5

Critically assess McDonald’s approach to the global co-ordination of its NPD Initiative.

Answer :

• A global network of nutrition consultants, including nutritionist teams in place in the US, Europe, Australia & Latin America.

• A 15-member Global Advisory Council on balanced active lifestyles composed of external experts in health, fitness & nutrition from around the world.

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The reason behind this was to look at the trends

related to balanced, active lifestyles & provides advice & guidance to McDonald’s.

This resulted in :-

• Additional menu choices, including fruit & vegetable options.

• Promoting physical activity.

• Focusing on our employees

• Setting goals & working to measure the impact of our initiatives.

• Supporting broader research in the are of health & nutrion.

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References

• Case study- Marianna Sigala (author)• Wikipedia• Promotions :: McDonalds.com • Balancing Busy Lives :: McDonalds.com • McDonald’s - Quality Food – Clean Fun Environment ::

AboutMcDonalds.com

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