Date post: | 15-Jul-2015 |
Category: |
Documents |
Upload: | lauren-nehotte |
View: | 210 times |
Download: | 1 times |
11
Creating a Healthy Brand Image at McDonald’s
A CLEDJ Hammer Report Devon Dyrdahl
Joshua Kel ly
Lauren Nehotte
Elena Robino
Claire Sieracki
12
Table of Contents
I . Executive Summary 2
I I . Introduction 4
I I I . Methodology 6
IV. Findings 8
A. Survey 10
B. Cross Tabulation 13
C. In-‐depth Interview’s 14
V. Conclusions & Recommendations 15
VI. Appendix 18
13
I . Executive Summary
We have conducted our marketing research focusing on McDonald’s marketing research
problem, which consists in its unhealthy brand image. In order to address customers’ changes in
flavors, we defined our research objectives trying to gather as much information as possible
about college students’ perceptions about McDonald’s and what could be their suggestions or
changes to improve the company's healthy image.
To learn more about McDonald’s, our team used tried and true research methods. Using
the internet, we collected information on McDonald’s restaurant, its competition, and its
position in the fast food industry. We then utilized a focus group to begin our research on
consumers. Then we conducted an internet survey using Qualtrics data collection software. To
analyze the data we also used Microsoft Excel. Finally, we conducted in-‐depth interviews to
assist in drawing conclusions.
After conducting the research and asking questions about all aspects of McDonald’s and
health, we found three significant results. First, some McDonald’s customers limit consumption
due to bad perceptions of how unhealthy the food is. Next, McDonald’s current advertising
campaign is eliciting positive responses but could be more effective. Lastly, many millennials
respond positively to the possibility of a separate, healthy menu at McDonald’s in addition to its
current offerings.
In conclusion, we have discovered that Millennials don’t have a completely negative
brand perception of McDonald’s overall. In addition, they are willing to try new healthy options
in the menu and they appreciate that McDonald’s is improving its offering in order to meet their
eating habits changes. Finally, our first recommendation is “fish where the fish are” in order to
14
reach the “light users” market segment and built a brand relationship. Then, in our opinion
McDonald’s should make “our food your questions” more interactive to address customers
questions. Our last recommendation is to introduce “McTrition” which is a separate healthy
menu in order to satisfy customer’s healthy conscious segment.
I I . Introduction
Even though McDonald’s has been successful for decades due to its efficiency and its
worldwide popularity as a fast food restaurant, it is currently struggling with customers’
behavioral changes. Healthy eating habits are becoming a more and more popular trend, which
represents a challenge for fast food restaurants. This is the reason why we decided to conduct a
marketing research study in order to collect college students’ brand perceptions about
McDonald’s and their suggestions to improve its healthy image.
Founded in 1955, McDonald’s has now over 35,000 restaurants worldwide in 100
different countries with $28.1 billion of revenues in 2013. Since the beginning, the company
committed to do the right things and serve the world its favorite food, as stated by the website.
However, McDonald’s admits to have some problems about its brand image, in particular after
the last campaign where the company showed where its ingredients are coming from, which
increases its unhealthy image. In addition, as a popular documentary called “Super-‐Size Me”
brought the unhealthiness of McDonald’s in the spotlight, and consumers started considering its
food much more negatively. As a result, guests counts fell by 2% globally and 1.6% in the US last
year. Consequently, McDonald’s should take away fatty as well as supersize options and add
healthier ones to its menu.
15
The fact that “McDonald’s image is unhealthy” is our research problem. The company has
established its image worldwide as a fast-‐food restaurant and many people have been growing
up with the idea of French fries and hamburgers as the typical McDonald’s meal. However, in
order to be successful and maintain its strong competitive position, the company should address
the new customers’ changes in flavors as they are looking for healthy options in the menu
instead of fattening food only. Consequently, McDonald’s has already done a first step in order
to satisfy the new customer segment introducing salads, chicken wraps and specific sandwiches
in different country made with typical national ingredients.
Investing more money in advertising focused on a healthy menu is the challenge of
McDonald’s marketing decision. This investment could represent an opportunity to fill the gap
between McDonald’s products and new customer segment tastes in order to increase
customers’ satisfaction. This could also represent a useful way to improve its brand image and
reputation after at the failure of the last campaign.
Our research objectives are focusing on how college students consider McDonald’s and if
it could be seen as a place where they could get a healthy meal. Then we would like to gather
their suggestions about new healthy options that McDonald’s could use to implement its menu
as well as any changes that the company should do to improve its healthy image. Even though
some efforts have already been done, as the introduction of premium quality products and
limited national product lines, it seems that there is still something left to be enticing in the age
of wellness and health. In order to identify how the company could be successful, the goal of our
research objectives is to define if health-‐conscious college students consider McDonald’s as a
healthy place to take an affordable and quick meal.
16
While we were conducting our marketing research, we only focused on college students
from 18 to 25 years who mainly live on campus. As a consequence, the limitation of our study is
that the sample used couldn’t be considered as representative of the entire population. They
usually choose McDonald’s without considering the effects of the unnecessary calories that
products contain but mostly because it is inexpensive and offers a quick service. As a result, their
decisions are influenced by their limited income and their lack of time.
I I I . Methodology
Upon identifying the problem McDonalds is currently facing, both secondary and
exploratory research was conducted in order to further develop research methods and designs.
In our secondary research we utilized the Internet as an external source to collect information on
McDonalds, its competitors, and on trends developing in the fast food service industry. We also
took an in-‐depth look into the company’s website in order to get an understating of the
McDonalds brand image as well as current marketing efforts. From there we also took a look at
consumer trends, specifically looking into healthy mentions on social media and how the trend
of consumer health consciousness has affected the fast food industry as a whole. In knowing that
health is a growing trend we also researched health and how it relates to McDonalds when it
comes to menu offerings, ingredients, and the environment itself. In McDonalds being a globally
recognizable brand we also used our experience as McDonalds customers as well as our
knowledge of documentaries concerning the health of McDonalds to guide our secondary
research. Once we completed gathering background information on McDonalds, its competition,
and the consumer industry, we conducted exploratory research to further our understanding of
the environment.
17
In conducting our exploratory research our goal was to learn more about the research
problem by clarifying the exact nature of the problem and identifying the important variables
contributing to McDonald’s unhealthy image. In order to do this we performed a focus group
consisting of 9 college students ranging in age from 18 to 22 who were compensated for their
time by providing their favorite candy bar. The focus group was directed using a discussion guide
created by all researchers and was videotaped in order to review important contributions to the
discussion.1 During the discussion we asked questions relating to their fast food consumption
habits and their views of McDonalds. The majority of the focus group was focused on the idea of
health to the consumer and how McDonalds relates to health in the consumers mind. We also
asked about possible changes McDonalds could make in order to change their unhealthy image.
The information gather from both the secondary and exploratory researched guided the
development of our primary research. We conducted a computer-‐administered survey consisting
of nominal and interval levels of measurement as well as short answer questions. Attitudes were
also measured through semantic differential scales, Likert scales, and purchase intent scales.2
The computer-‐administered survey was chosen in order to reach the greatest amount of people
in a short period of time and due to our limited resources, it was the most cost effective medium
to perform research through. The questions asked in the survey relate to fast food eating habits,
attitudes towards McDonalds, and attitudes towards new healthy menu additions. The survey
received 99 responses but only 87 of those respondents completed the survey and only those
who completed the survey were included in the analysis of the results. The research software
Qualtrics was used to compile the survey and organize the results. We then downloaded the
data into Excel in order to analyze the individual results from each survey and to read each
18
response to the open-‐ended questions. All open ended questions were coded by pulling out and
tabulating mentions of specific recurring words for each open-‐ended question. Cross tabulation
was also used to compare intent to purchase to characteristics of price, taste of food,
cleanliness, variety of menu, and healthy options.
After gaining insight into the factors contributing to McDonald’s unhealthy image, we
wanted to improve the efficacy of the survey results and enrich the quantitative findings from
the survey. In order to do this we performed 8 in-‐depth interviews, with each researcher
performing 2 interviews. Our sample was made up of college students ranging in age from 18 to
22. All researchers followed an interview guide, which consisted of questions asking about fast
food eating habits, McDonalds and their current marketing campaign, and their views about a
new hypothetical healthy menu addition.3
IV. Findings
In our initial focus group, we found that many observations we made confirmed what
many of us had previously thought about McDonald’s restaurant. That is, our preconceived
notion that McDonald’s is cheap, fast, and relatively unhealthy in the collegiate consumer’s
mind. In fact, the results of the focus group not only confirmed the need for further research on
the topic of consumers’ perceptions, they begged for it! Our focus group contained one
freshman, two sophomores, and one senior, and its results did not surprise us one bit.
Not one of our focus group members listed McDonald’s in their top two choices of fast
food restaurants to frequent.1 and this was only the beginning. We went on to discuss the
reasons why college students go to McDonald’s and specifically why our subjects themselves go
there. They listed negative reasons such as being drunk and going because the Redbox machine
19
is there and positive such as convenience, friends, and inexpensive food. The group’s reasons for
not going to McDonald’s were more along the lines of why McDonald’s is so bad. They said that
food at other fast food places is “better,” “more filling,” and “doesn’t make the stomach hurt” as
much. These are not things McDonald’s wants to be hearing from fast food consumers. The top
positive of going to McDonald’s is that it is “cheap and fast,” while the top negative is that it is
“highly processed.” These introductory questions showed us that the collegiate population
thinks of McDonald’s food as unhealthy and secondary to other fast food options.
Next, we moved the conversation towards what consumers thought of health. Common
words that the participants used were “organic” and “green.” When they were asked how
important health was to them, the participants responded “yes, it is important,” but listed
certain factors that inhibited healthy behavior. Time was the most significant of these inhibitors
while difficulty and the work involved were also important. When asked if McDonald’s is
considered unhealthy, responses were varied. Some said “yes, McDonald’s food has a high fat
concentration” while some said that “McDonald’s is not unhealthy in moderation.” In response
to the answers from the previous question, we then asked the participants if they considered
any menu items at McDonald’s healthy. They responded with the items that one would expect:
oatmeal, parfaits, coffee, and water.
We moved into some more personal health-‐related questions to find out what college
consumers value in healthy foods and what they actually eat that they consider healthy. To eat
healthy, the participants said they eat salad, fruit, nuts, yogurt, whole grain, and brown rice.
These were all basic foods and relatively easy to procure as a college student. It seemed as if
being healthy as a student was a matter of time and price. The participants also said that they
20
would consider themselves about a 2.5 on a 5 point healthy scale and that it depended on how
active they were at the time. Activity also plays a large part in a healthy lifestyle of the college
student. Finally, we asked where they were most likely to eat healthy foods. The responses were
along the lines of “when they are homemade” and “when I go to a sit-‐down” and “when I am not
feeling lazy.” If one knows anything about college students, these options combined do not make
up a very large percentage of the student lifestyle.
To round out the health question section of the focus group, the group discussed ways to
change the “unhealthy image” that many perceive McDonald’s to have. The ideas they
presented were: 1) to change the current “cheap and fast” branding by adding more expensive
healthy items, 2) go public with the actual content of the food (and then change), and 3) (the
two others doubted McDonald’s could change). As one final task, we had each member write
down what they thought McDonald’s must consider in creating a healthier image. They said
things one might expect: fresher ingredients, more nutrients, less processing, more cost, more
organic, being transparent about ingredient quality, joining the anti-‐obesity movement, real
meat, and spending more money to increase food quality.
A. Survey
To continue our research, we conducted an Internet survey. It included many important
insights for the group of people we were able to reach. To get an idea what this segment of the
population was looking for our first question was an open question simply asking them “what are
the most important things you look for when you go out to eat. Many things were mentioned by
the 91 people surveyed. Of all the responses a couple common themes kept popping up. These
were Price-‐ with 39 mentions, quality of food-‐24, taste-‐15, and health-‐9. While price was
21
mentioned the most, it was almost always accompanied by something else. Taste and quality
also seemed to be accompanied by other things as well. What was interesting was that of the 9
people that mentioned health 8 of them exclusively mentioned health. So for most people health
was not really something they looked for when choosing a place to eat. However, for a select
group it was the main thing they looked at. Our second was a screening question that asked if
the respondent had eaten fast food in the last month. 78% answered yes and continued with our
survey.
The 3rd question asked respondents how often they ate fast food with 7 choices ranging
from never to daily. The results showed a near perfect normal distribution pattern from the
middle choice which was 2-‐3 times a month (4) with the mean equal to 4.06(where 4 is 2-‐3 times
a week). Nobody chose the extremes of daily (8) or never (1).2
The 4th question revealed McDonald’s popularity as a fast food restaurant. Respondents
chose from the same 7 choices on how often they ate places, but this time for particular
restaurants. McDonalds scored the highest with a 2.84 where Subway was 2nd 2.68 and the
lowest was Wendy’s with 1.57. Only 5 out of 68 respondents said they never go to McDonald’s,
which was substantially lower than any other fast food place.
Question 5 produced interesting results. People were asked to choose between 5
importance levels they had on particular features of restaurants with very unimportant=1
neutral=3 and very important=5. The most important thing was taste with a score of 4.21
followed by price, cleanliness, health, and variety. Health scored a 3.16 with a spread out range
of answers. Slightly important (4) was chosen the most often 21 out of 68 times, showing health
was a fairly neutral subject, but it is a concern.
22
Question 6: we specifically asked respondents what they thought of McDonald’s
characteristics of; taste of food, restaurant cleanliness, price, variety, healthy options, and
quality of food. The two answers that elicited relatively strong negative responses were healthy
menu options and food quality. The other categories scored positively. This data supported our
initial assumption that people's image of McDonald’s is that it is unhealthy and does not have
very quality food.
Question 7: we asked respondents their willingness to purchase some healthy menu
options we came up: sweet potato fries, turkey burger, southwest burger, and gluten free. The
results were fairly inconclusive with the averages falling around neutral, except for the gluten
free option which many people said they would not be willing to purchase.
Question 8: Question 8 was related to question 6 and asked how much respondents
would be willing to pay for a healthy food option with the example being a turkey burger. 45% of
the respondents said they would be willing to pay 3-‐4 dollars, which is a standard large burger
cost at McDonalds. The distribution was approximately normal with the mean being slightly
above the $3-‐4 choice.
Question 9: Question 9 asked if how likely respondents would be willing to purchase from
a nutrition menu at McDonald’s. From the relatively low numbers our earlier questions related
to health, we did not expect a positive response. But, the results was positive with 37% saying
they would be likely to purchase from a health menu, and 15% very likely. 25% of people were
undecided and only 15% unlikely and 7% very unlikely. The mean of 3.37 showed that people
were more likely to purchase than not, and the large amount of undecided respondent’s shows
that there is not necessarily opposition to the idea, and they would require more info. This data
23
while not completely conclusive, gives reasonable support to the idea that people would like and
purchase from a health menu.
Question 10 asked respondents what the thing they liked the least about McDonald’s
was. The two things that came up the most frequently was unhealthiness with 16 mentions and
poor food quality with 12 mentions. Respondents had a lot of random responses, but these were
the most prevalent. This data supported responses from question 6, supporting that people view
McDonalds and unhealthy and low quality.
Question 11: Asked respondents what they liked the most about McDonalds. The
overwhelming thing that people liked about McDonalds was the low price followed by the taste
of the food and overall convenience. These are the core values that respondents feel
McDonald’s does well at, and it would be important to incorporate them to some extent into
potential healthier options.
Question 12: we asked respondents what suggestions they would have for a healthier
menu. The responses were very mixed, but the most mentioned thing with 10 mentions was
keeping the prices low if they do make one. This agrees with our findings in question 11 that
McDonald’s should stay true to low price, tasty food, and convenience.
B. Cross Tabulation
We did a cross tabulation of multiple survey questions and found a couple key
correlations.4
One of the main findings we found was that overall people had a poor perception of
McDonalds with regards the quality of food and health. There was especially a pattern among
light users of McDonalds. This data along with interviews and focus groups led us to the
24
conclusion that many users limit their usage of McDonalds due to bad perceptions. 77% of
average users (2-‐3 times a month) in our survey ranked McDonald’s menu options as somewhat
or very unhealthy. The average users made up only about 20% of our results. 65% of users went
to McDonald’s once a month or less, but with the addition of these users the perception stayed
close to the same. 71% of McDonald’s light to average users (2-‐3 times a month or less) ranked
McDonald’s menu options as somewhat unhealthy or very unhealthy. Of this significant group of
average to light users a relatively significant 50% ranked healthy options as either important or
very important to them when they were eating out.
Quality was also a concern about McDonalds. Overall 59% of respondents ranked
McDonalds quality as low or very low. People that said they never went to McDonalds were
especially critical of McDonald’s quality. 4 out of 5 of them ranked quality as very low with the
other one ranking it moderately low. The lighter users tended to rank quality slightly lower with
60% of light to average users ranking McDonald’s quality as low or very low.
C. In-‐depth Interviews
To complete our results we had found in our Internet survey, we set up 7 in-‐depth
interviews with students between the ages of 18 and 25. We asked probing questions that
continued where the survey left off. We were able to compile three key findings. The first was
that most students would like McDonald’s more if food wasn’t so unhealthy. The main reasoning
for this is that they consider McDonald’s to be high in fat and sodium. Second, we found that
people who looked at the current “Our food, your questions” campaign, responded positively to
it by saying that they do appreciate the willingness that McDonald’s has in answering questions
about its food. However, most students wanted answers to the questions presented in the
25
campaign. Third, we found that there were two opinions when we asked students if they would
purchase from a new, separate health menu containing brand new healthy products. 75% of
students would purchase from the menu while 25% of students wanted the current menu and
taste but with added nutrition.
After a focus group, an internet survey, and several in-‐depth interviews, the team was
able to synthesize three significant findings. First, McDonald’s customers limit their consumption
due to bad perceptions of how unhealthy the food is. This is especially evident in the focus group
and IDIs. Next, McDonald’s current ad campaign is eliciting positive responses but could be more
effective. Lastly, millennials respond positively to the possibility of a separate, healthy menu at
McDonald’s in addition to its current offerings.
V. Conclusions & Recommendations
Reflecting on the process of this research project, we can now answer the question
“what do we want to know” that we asked ourselves in the initial stages. Generally, millennials
do not have a specifically negative perception of McDonald’s. They do, however, limit
themselves and understand that it is not a poor decision when eaten in moderation. It is widely
believed that McDonald’s food is of low quality. The current “our food your questions”
marketing campaign has been moderately successful. Consumers appreciate the fact that
McDonald’s is acknowledging their unfavorable reputation. They feel like they have a voice and
are relevant to the brand. This has established a more solidified relationship with the brand and
its customers. As this relationship is vital to the brand’s success, McDonald’s is interested in not
only what questions people have, but also what suggestions customers may have to increase
satisfaction. Millennials respond positively to the idea of a healthy menu at McDonald’s. They
26
would be willing to try new health niche-‐focused options. Overall, we have concluded that
people are changing to become healthier, and they expect McDonald’s to change with them in
order to meet their evolving demand.
In order to address the issues that were identified in the primary research, McDonald’s
has several potential options to exploit. The first recommendation is to “fish where the fish are”,
per say. McDonald’s already has a solid relationship with its current dedicated customers. Now,
they must reach out to its unsaturated market consisting of “light users” who have a very
insignificant relationship with the brand. By establishing a new reputation and presence in the
minds of these consumers, McDonald’s will be able to potentially attract a new market segment.
An additional relationship and brand management strategy would be altering the “our food your
questions” campaign to further address and publicly answer the questions. We recommend that
McDonald’s makes the campaign more interactive and cooperative. Currently, users who as a
question get a personal email with an answer. McDonald’s should instead make the answers
public and accessible. The consumer does not want to go searching on the website to find the
answers to these questions. If the commercials and other methods of advertising include the
answers with the questions, there is a higher potential to alter the consumers’ perception and
satisfaction. As McDonald’s has the reputation of serving low-‐quality food, it must dedicate more
time and resources to this campaign to prove otherwise. Our final recommendation is a more
drastic and specific change. McDonald’s should develop a “McTrition” menu solely targeting the
health-‐niche focused market segment. This new menu would be somewhat separate from the
main menu, much like the McCafe. By offering healthier and more nutritious menu options,
customers will not have to eat McDonald’s in moderation or worry about the physical effects
27
that a Big Mac may have on them. This new menu would have a positive effect on McDonald’s
brand reputation and show consumers that McDonald’s is dedicated to evolving along with
them.
28
VI. Appendix
1. Focus Group Discussion Guide
29
2. Survey
30
31
32
3. In-‐Depth Interview Discussion Guide