McDonald’s Smoothies: Creative Brief
|Client/Brand: |McDonald’s Australia |Date: |September 2, 2011 |
1. The Company
McDonald’s Australia is a 3.2 b dollar business. It is not only known to people for its iconic golden arch, mouth-watering burgers, fries and nuggets, but also for its community service, strong partnership with local growers and suppliers and an array of corporate social activities.
2. Brand Issues
McDonald’s is a recognized representation of fast food and often not deemed as a ‘healthy’ food option. Therefore, McDonald’s goal to stretch its product range to fresh fruit smoothie is a challenge. Further in Australia, there are
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2) What opportunities/threats are emerging and what can threaten McDonald’s smoothies?
• Social trends towards healthier/fresh food/beverage products denotes a positive drive.
• Economic pressures in today’s consumer food/beverage market mean less disposable income to spend on (especially due to the fact that smoothies are considered a discretionary purchase).
• Australia has several regulations regarding using Benzene in beverages and non nutritive sweetener and colours. It also has comprehensive beverage standards that McDonald’s will have to follow.
3) What do customers think, feel and do about the selected brand (Based on the opinion of38 regular consumers of smoothies)?
a. How do they think of the real fruit smoothies?
“Ingredients are not a big concern as they believe fruit smoothies are ought to be made of real fruit to contain its original taste.”
b. What do they think and feel about McDonald’s?
Their attitude towards McDonald’s is mostly positive, even though they also believe McDonald’s is not the best healthy option. Our interviewees stated their readiness of trying smoothies in McDonald’s as they believe McCafe is serving with real coffee, which made them feel confident about its real fruit smoothies.
c. What do they think about the differences between brands?
Although, for now, they couldn’t see any point of difference
McDonald’s has worked very hard in developing ways to do our part to help fight obesity. We have assembled Global Advisory Council to help guide us. The Council is comprised of international independent nutritional experts. With their ongoing guidance, we have been prepared a widespread promotional plan to incorporate nutritional
Since there are many stores, like McDonald’s and Starbucks that are also providing all kinds of healthy smoothies with a price that is similar to Jamba Juice’s, buyers actually will not face high switching costs. Therefore, low switching costs enhance the bargaining power of buyers.
In accordance with findings based on extensive research, Jamba Juice has encountered a steady decline in its sales and market share value due to a variety of internal and external factors. Although the largest smoothie chain in the United States is foreseeably on the road to non-existence, proper business development can potentially help the corporation turn things around and prosper like it once did.
Mc Donald’s should offer healthy alternatives in every country as long as customers accept and buy them. If customers do not want healthy options, Mc Donald’s should offer other alternatives such like sport programs or simple information packages. Scientific research clearly proofs that fast food, consumed on a regular basis, is extremely unhealthy. Mc Donald’s could be said to have an ethical responsibility to educate its customers about fast food and healthy alternatives.
Smoothie Café Bar will have a niche for those consumers that can get a healthy meal replacement as well as delicious coffee. This is convenient for families where one person in the car wants a smoothie and another person wants hot coffee. This will be one-stop shopping for the entire family. There is a growing demand for gourmet coffee, which is exactly what Smoothie Café Bar will have. There is competition for coffee houses, such as Starbucks, Panera Bread, and Dunkin Donuts, but what sets the Smoothie Café Bar apart from the others is that it will have healthier options such as organic milk, Coconut milk, and always organic fresh fruits and vegetables to be added to their smoothies. One study reported that “34%of adults are drinking coffee every day and the overall trending suggests sustained momentum for specialty consumption growth in the last five years”.
Inclining trend in healthy food options might take over a huge customer group McDonald’s might end up losing the market share. (Kline,
End users are those individuals walking in the company stores, ordering a smoothie and a cookie, paying the cashier and then telling her friend how wonderful the ambiance is. This buyer segment does not purchase large amounts of product at one time and likely chooses Jamba because of the quality of the ingredients. With no switching costs and a growing industry offering many options, patrons of smoothie cafés can freely purchase their delightful cool beverage anywhere. According to the U.S. Census Bureau the number of stores within the “snack and nonalcoholic beverage bars” industry grew from 36,036 in 2002 to 49,463 in 2007 [ (U.S. Census Bureau) ]. This trend means that Jamba Juice will have to increase customer loyalty to battle the increased competition.
This continuous study is a descriptive one, though it encompasses characteristics of the exploratory research. The study will be descriptive to the extent that it creates data structures that describe the existing characteristics of the marketing situation at McDonalds. It will collect data about customer attitudes, purchasing behavior, customer satisfaction, competition and other marketing issues that will allow the decision maker to understand consumer behavior and identify trends that might suggest changes needed in the marketing strategies.
McDonald's marketing targets everyone in every age,gender,races and does not have a select audience. The company claims that their restaurants offer meals for youngsters, a serene place to relax with free wi-fi for adults, and a quick delicious breakfast for those in a hurry in the morning.
Jamba Juice is a smoothie retailer in the United States in the restaurant industry. Jamba Juice offers 100% fruit smoothie and juice with healthy snacks. This paper will explain the strategic issues faced by Jamba Juice, and the strategy used to be successful. Jamba Juice has maintained financial discipline, cost management, and improvements that are the reason sales are increasing. Jamba Juice strives to follow their mission and vision statement, and markets aggressively. Over the next five years, the market for smoothies is expected to increase by 10-15%. (Brixler, Brian) Consumers are seeking healthier food and beverage options for a meal. Smoothies offer a healthy option instead of drinking soda.
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