Brand, James Brand

Thursday, October 26, 2006

Mcdonald's - healthy in Japan, now healthy in America

Recently Shauny posted a blog entry about Mcdonald's trying to revamp its image in Japan...well now, according to today's issue of the Boston Globe, Mcdonald's is now trying to change its image in the United States, starting with Massachusetts.

According to the article, the newest Mcdonald's are looking to take their image away from fatty on the go fast food to the more upscale images achieved by places like Starbucks and Panera Bread. The new Mcdonalds will feature leather chairs, plasma televisions and wireless internet access...so you can work on business reports with the sweet smell of hamburgers surrounding you. The change is being made to attract young adults and families who normaly eat at Starbuck's, Applebee's and Chipotle. The repositioning also comes with a steep price, franchises pay up to $400,000 to renovate or $1 million to knock it down and start from scratch.

I think Mcdonald's might be forgetting what industry they are competing in. It is not a sit down restaurant with waiters like Applebees and it's not a coffee house, it's fast food. 65% of it's revenue comes from the drive-through. $400,000 per store is a hefty price to pay for a restuarant where 65% of the customers are not even stepping through the door. Some of these new rennovations don't even have the traditional Mcdonald's play area. The vice president of the Boston region of Mcdonald's claim it's "in the best interest of the brand," but is it? Do you think Mcdonald's could ever achieve an upscale Starbucks like image?

--Heather Campbell

2 Comments:

At 9:50 AM, Anonymous Anonymous said...

In the last, lets say, 10 years, McDonalds has gone through a lot of controversy. With the “Fast Food Nation” and “Super Size Me” movies that came out, and the numerous amounts of lawsuits blaming McDonalds for their obesity, McDonald’s has had to fight against these associations by changing much of their initial brand image. Before any of this, some associations on their map might have been simply hamburger and french-fries, but now it is more fat and grease. They were forced to change their menus to include healthy options like salads. But aren’t they just changing what McDonalds really mean- a place where you can pick up a delicious hamburger in less than 2 minutes?

So what I’m trying to say is maybe changing the scene and physical appearance of McDonalds would match with their new direction and meaning – a place where families can come together and eat a variety of “healthy” yet delicious meals. Maybe they want to try to move away from the Fast food industry and steal sales away from casual restaurant industry.
We will have to see if the new move is a smart one. I personally don’t think it will, but I also don’t eat at McDonalds.

 
At 10:28 AM, Anonymous Anonymous said...

I believe it is wise for McDonalds to modernize their image in order to remain consistent with consumer demand. I do agree with Heather, however, in that they are making a move very far from what their original image was. I believe that this will prove to be detremental to McDonalds. They are now shifting their focus and will be facing rivalry from companies that they have never rivalled with before and who have been in that type of industry for quite some time and have tremendous brand equity. Personally, I think McDonalds may need to do further consumer research to see if it will have a big enough clientel to cover these tremendous costs. If it feels that it can no longer compete in the industry it used to than perhaps it is time for McDonalds to close its doors, but let us not forget that despite all the movies and negative publicity McDonalds has received, there are still plenty of individuals who enjoy the convenience and taste of a burger on the go.

 

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