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