Table of Contents
TOC o “1-3” h z u ABSTRACT PAGEREF _Toc529614685 h 1FOOD AND BEVERAGE MARKETING PAGEREF _Toc529614686 h 2MARKETING STRATEGY PAGEREF _Toc529614687 h 4CASE STUDY: MCDONALDS PAGEREF _Toc529614688 h 5CONCLUSION PAGEREF _Toc529614689 h 9REFERENCES PAGEREF _Toc529614690 h 10
ABSTRACTCompanies are using different marketing strategies to adapt their products to international markets. Using McDonald’s as the case study; it highlights how the company has taken measures to advertise and promote their products. Also the measures it has taken to promote healthy living campaigns. Changing and improving company products helps improve the company sales and also their competitive stand in the countries.
Keywords: marketing, fast food industry
GMO-genetically modified organisms
KFC- Kentucky fried chicken
USA- United States of America
FOOD AND BEVERAGE MARKETINGMarketing is a process used by companies throughout the world to encourage consumption of their products. Marketers must break through media surrounding and make sure that consumers stay in tune with the advertising messages. The messages must be interesting and desire to motivate the consumer to act or purchase the product.
This is a dynamic marketing sector that adapts rapidly to changing marketing opportunities, technology, and the regulatory environment. Nearly one-third of American children and adolescents are affected by overweight or obesity. Their diets are too low in fruits, vegetables, and whole grains and too high in sodium, saturated fats, and added sugars. Many of the foods and beverages that are heavily marketed to children contribute to poor diet quality, high-calorie intake, and excess weight gain. In addition, food and beverage marketers increasingly target African-American and Latino children populations at increased risk for overweight and obesity.
The focus on establishing nutrition standards has resulted in nutritional improvements of products and new product development by companies. Food, beverage, and restaurant companies have reduced added sugars, salt, and saturated and Trans fats, and increased whole grain content in food and beverage products promoted to children.
Healthier products are becoming popular because of the increase in dietary restrictive diets such as gluten-free, non-dairy and low carb products. Fear of pesticides and GMOs products and increased demand for organic foods. Organic food popularity has increased in recent years such as meat, eggs, bread, grains, and beverages.
Brands help companies deliver messages about products, confirm credibility, connect and motivate buyers on an emotional level, and increase buyer loyalty. The brand is a name, term, design, symbol or any other feature that identifies one seller’s good or service as distinct from those of other sellers. It can apply to a single product, an entire product line, or a whole company.
Eating healthy and fresh food is one of the major trends in the food industry. For several reasons, the consumer demand for healthy food is increasing. It is stated in the article “fresh ideas” that: “a Meal preparation with a healthful approach is cropping up everywhere. From high-end restaurants to quick-service chains and non-commercial settings, consumers are demanding more from their meals no matter the place or time.”
Researchers working to advance Food Well-being are investigating how to empower consumers to employ both automatic and deliberative influences on their food consumption to make healthy food choices (Bublitz, 2013). Rather than focus on how food choices are undermined by marketplace cues and persuasion attempts, consumers can draw upon these influences to become more mindful of their food consumption and develop healthy eating habits (Bublitze, 2013).
An extensive review of the effects of food promotion to children demonstrates that “the most popular appeals used in the promotion of foods to children were hedonistic, including taste, humor, action-adventure, and fun” (Hastings et al., 2003). Food marketing to adults frequently uses emotion to emphasize pleasurable food experiences (Geuens, De Pelsmacker, & Faseur, 2011).
Healthy products often conjure up negative taste expectations from consumers who assume if a food is healthy it must not taste very good (Raghunathan et al., 2006). This is not to say that consumers do not want to make healthy choices, the growth of food and beverage offerings targeted at health-conscious consumers demonstrates demand for these products. But, consumers want these products to taste good. Much of the advertising within the packaged food sector has targeted health-conscious consumers, offering whole lines of products designed to satisfy consumer desires for hedonic indulgences while simultaneously helping consumers pursue their health goals.
MARKETING STRATEGYOrganizations use them 4Ps marketing strategy; product, promotion, price, and placement. Product: Offering a majority of healthy products in a menu will make it easier for consumers to make healthy choices. Less access to unhealthy foods may promote health. Example, The Coca-Cola Company provides water for their health-conscious consumers.
Promotion: Labels and motivational signs can increase awareness and selection of healthier foods and beverages. Prominently marking low-fat food items and “0 calorie, 0 sugar” beverages, as well as their prices, is an effective way to increase the selection of healthy items. Promote the positive attributes of food such as what the nutrients they contain, how they fuel the body and how they keep the body healthy. Use of social media to market healthy choices, such as Twitter, Facebook, and Instagram.
Price: Selling healthier foods at a lower price than other options can be an effective incentive for healthy eating. Reducing the prices of healthy foods and beverages, or raising the prices of less healthy options is a good way to promote healthier choices. Using price reductions to increase acceptability of unfamiliar healthier foods, choosing cheaper alternatives might vary depending on the general economic situation of a country or an individual. Consumers are willing to pay premium prices for organic foods with less than 100% organic ingredients.
Placement: The sale of healthier foods and beverages can be increased by placing them in prime locations in the shops and supermarkets. When people see the first thing as healthy options they are likely to purchase them. Young people, in particular, rely on mobile devices for a growing number of services: phone, web, and social network access, maps, and directions and entertainment. Having healthy restaurants near their locations will increase their healthy options choice. New forms of loyalty-based programs reward consumers when they “check in” at a restaurant with their mobile phone.
CASE STUDY: MCDONALDS
McDonald’s is a famous and successful fast food chain in the world which owns 33,510 fast food restaurants located in 119 different countries and regions at the year-end 2011. The McDonald’s restaurant chain is well known for its globally standardized products, services, and operating policies. The fast-food restaurant menu includes burgers, sandwiches, salads, French fries, desserts, soft drinks, and other beverages. Its headquarters is in Illinois, United States. The current chief executive officer is Stephen J. Easterbrook. Its main competitors in Kenya are KFC and Subway.
McDonald’s wants to improve the marketing strategy especially when it comes to kids. McDonald’s was pressured by Alliance for a Healthier Generation, a group formed by the American Heart Association and Clinton Foundation. The company took soda off their Happy Meal Menu; they also served fewer fries with a six-piece McNuggets meal. By reducing the fries; it reduces the calories and sodium in the fries served in the Happy Meal by half.
McDonald’s will also start offering chocolate milk made with less added sugar. The company will also add water as a featured beverage on the menu. McDonald’s wants to increase customer’s access to fruit, vegetables, low-fat dairy and water. This is placement strategy, making sure that consumers have a clear vision of the healthy options on the menu.
By the end of 2022, at least 50% of the Happy Meals listed on menus globally will contain no more than 600 calories, 10% of calories from saturated fat. 650 milligrams of sodium and 10% of calories from added sugar. McDonald’s will have to add, change or remove items from the Happy Menu so as to exceed the 50%. McDonald’s Italy last month introduced a grilled junior chicken sandwich to its Happy Meals, while McDonald’s France is searching for vegetable offers.
McDonald’s is advertising to kids with a more nutritional approach; it wants to use more innovative marketing strategies to help drive bigger sales of fruit, vegetables, low- fat dairy, whole grains, lean protein and water in the Happy Meals. The new balanced, active lifestyles campaign is designed to inspire McDonald’s customers to improve their overall wellbeing. McDonald’s has also added kales, spinach, lettuce and carrots to their food chains. McDonald’s will extend its new lifestyles campaign messages by placing educational tips on boxes in the US.
The company has different international menu items that favor the local consumers of that area; it takes into consideration the culture of the countries and he tastes they prefer. Here they use the product strategy, allowing their customers to make a choice on what they need. A good example is in the Asian market, there are a variety of shrimp burgers.
In 2016, McDonald’s USA removed artificial preservatives and colors from Chicken McNuggets; other countries also followed in this initiative such as McDonald’s France and McDonald’s Canada. McDonald’s changed their website to make it friendly to their consumers; they added a user-friendly nutrition calculator that allows one to add or subtract meal components before making a decision on what to pick. The company also has a vegetarian menu for the more health conscious customers’, example the Southwest salad that has no chicken in it.
CONCLUSIONAs an international marketer, one should consider the policy as another marketing strategy. Creating policies that promote the purchase of healthier options will increase sales. McDonald’s has adapted to the different countries that it has established itself in. The example in China McDonald’s changed its menus language so that the locals can understand it. They also added ingredients such as fish burgers to adapt to the Asian eating culture.
Packaging labels are a key source of information for consumers. Manufacturers need to provide easy-to-understand and clear nutritional information to help respondents take control of their health. McDonald’s has taken this into consideration and ensured that it translates its menu according to the language of the country.
Retailers and manufacturers should provide guidance for consumers aspiring to healthier lives and meal-planning assistance. McDonald’s highlights the calories of the foods they provide so it becomes easier for the consumer to calculate the needed calories for their diets. It also has a nutritional calculator on their official website so one can check the calories each meal has. Though McDonald’s has not changed their whole fast food menu, they are trying to make a positive health difference for their customers.
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Geuens, M., De Pelsmacker, P., & Faseur, T. (2011). Emotional advertising: Revisiting the
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Hastings, G., Stead, M., McDermott, L., Forsyth, A., MacKintosh, A.M., Rayner, M., et al.
(2003, September 22). Review of research on the effects of food promotion to children. Report to the Food Standards Agency prepared by Centre for Social Marketing.
Raghunathan, R., Naylor, R.W., & Hoyer, W.D. (2006). The unhealthy tasty intuition and
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