McDonald’s and Obesity

Xiaolei Du
Mengxiao Zhang
Yanru Zhou
Zhongqin Zheng

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Overview
The Problem: Childhood obesity across the globe
Roughly 30% of children are overweight or obese in the United States.
According to the US CDC, an estimated 64.5% of the US population tips the scales as overweight or obese, the highest percentage of fat people of any country in the world.
One quarter of Australian children were overweight or obese in 2007-08, up four percentage points from 1995.
In Britain, one in five children is overweight or obese; in Spain 30 per cent; and
Italy, 36 per cent. In Africa, 3 per cent are overweight or obese.
In many countries, the worst increases in obesity have occurred in young people.
Global reactions to Obesity:
“The average child in the US sees 10000 food ads a year, mostly for high-fat or sugary foods and drinks.“
--USA Today
Many countries have to take actions to control the increasing number of childhood obesity.

E.g. A new law in France will force food marketers to choose between adding a health message to commercials or paying a 1.5% tax on their ad budgets to fund healthy-eating message.

Merits of the law proposed by France:
-Responsibility of society to encourage healthier eating habits.
-Country feels socially responsible for the health conditions of its citizens.
-This law force to food producers should attentiveness on the healthy food and its advertisement. -Fast food company would not incur extra costs on advertising and it would not attract imposition from the government.

The strategy for McDonald’s to pay the tax or add health messages  The country -of-origin effect of McDonald’s --obesity
 As a global brand, McDonald’s should balance benefits of a global brand against the risk of losing the benefits of an established brand.
 In order to meet the needs of derived demand, McDonald’s must to obey the new law and aware the importance of relationship marketing and product strategy. Relationship marketing
A long-term relationships with customers, a viable strategy for business-tobusiness marketing..
McDonald’s caused childhood obesity which needs in global markets are continuously changing and suppliers' offering must also continue to change.
Product strategy
Product extension
Product invention
Product adaptation-Political/legal requirements

How did McDonald’s respond when ads promoting healthy lifestyles featuring Ronald McDonald are equate with Joe Camel and cigarette ads?
Should McDonald’s eliminate Ronald McDonald in its ads?

Product Strategies


Three stages of complexity:
– product extension
– product adaptation
– product invention.



As competition for world markets intensifies and market preferences become more global, selling what is produced for the domestic market in the same manner as at home becomes less effective.

Products and Culture

 A product is the sum of the physical and psychological satisfactions it provides the user, such as McDonald

 People are very conscious about their health, so
McDonald should have promote low cholesterol products for the safety of the customer health.

Ronald McDonald

 McDonald should have to get rid of Ronald McDonald in its current advertisement
--government barred the cartoon character type of advertisement for the children
--government have to look after option for advertising about the product to the end consumer.

List all the problems facing McDonald’s and critique their various approaches to solve the problems - Unhealthy food image
 "Supersize Me" - obesity to McDonald's and other fast food chains
 large amount of calories but not too much nutrition
 Focus on profit and ignore nutrition and health

1.

Healthy additions to the menu

2.

Salad & fruit bag selection

3.

Nutritious and healthy food

- Problem related to health issue
 Trans - fat & beef oil
 Meals are unbalanced
 e.g. Dishes