Why McDonald’s is getting it wrong.

McDonald’s seems to be trying to re-position itself. We can already begin to see changes in the menu (the addition of healthier items) and ads featuring what could only be imagined as cultured, urban, hip women getting together to eat a healthy meal at the restaurant.

But it won’t work.

Okay, I concede that they might end up selling some of the new items on the menu, but the company’s brand position will NOT CHANGE. Here’s why:

McDonald’s core consumers don’t really care

I like to think of McDonald’s consumers as consisting of 2 distinct groups. The first group is comprised of loyal customers who eat at the restaurant chain multiple times a week. McDonald’s doesn’t make it’s revenues because it sells healthy food. It makes money because it sells freakishly yummy food at a very reasonable price. The restaurant chain’s loyal customer doesn’t go there to eat oatmeal. Just sayin’.

The second group, I like to call the “gluttonous healthy urbans”. For this group, McDonald’s is all about the ability to indulge, once in a while. This group cares about eating healthy and lives a lifestyle where it’s not exactly considered “cool” to eat at McDonald’s…or meet someone there for a meal. So this whole visual of urban, professional women eating a comparatively (they do use dressing on that salad!) healthy meal at the restaurant doesn’t really work for me.

[Yes I know, kids make up a key segment for McDonald's but the purpose of this blog post isn't to talk segmentation.]

Here’s how McDonald’s should be approaching this

1. Conducting an ethnographic study of consumers at McDonald’s

The key to understanding the various personas (groups of people who share common characteristics/buying patters) is to totally immerse oneself in the sub-cultures of those who visit McDonald’s. It’s the only way to truly understand the motivations of different types of people who eat at the restaurant chain. Unfortunately, an anthropological study requires forward thinking marketing executives, patience and quality ethnographers (all of which are highly lacking in most companies today).

2. Using the results to develop programs, menu and ambiance changes that enhance the customer experience

Here’s a simple example: If McDonald’s understood that the only reason I visit the restaurant is to indulge and seek instant gratification, their menu would’ve included optional ingredients that could make my indulgence experience slightly healthier (and possibly make me want to visit the chain more often).

Similarly, knowing that Sunday morning “Egg McMuffins” are considered one of the best hangover remedies among party-goers might make the chain act differently and develop programs, campaigns and promotions that are culturally relevant.

You with me? How do you think we can make organizations understand the importance of cultural immersion? How can we make organizations more relevant and engaging to consumers?


Transparency through crowd-sourcing…what about efficiency?

The crowd sourcing phenomenon

The crowd sourcing phenomenon

The WEB 2.0 magic spins again! The Guardian in the U.K has managed to crowd-source an investigation into MP’s expenses by getting almost 20,000 of its readers involved in shifting through 160,000 pages of government documents. This is a great example of how the web2.0 sphere is allowing communities of people to come together and work towards a common cause. Companies are now looking to crowd-source their market research. I personally am in search of real examples of projects where that was done efficiently (I’ve heard of examples where crowd-sourcing actually ended up costing more than the traditional outsourced model). If you happen to know any, please feel free to post it on the site (in a way I’m trying to crowd-source information collection). Anyway, its an exciting time to be alive and I’m curious to see how this space turns out over the next few months.


Are focus groups useless?

I’ve spent the last many months in Business School getting convinced that focus groups are a thing of the past. In this article, Kathy does a great job of laying out recent examples of focus group debacles! The biggest problem as she explains is that there’s no way of truly knowing if the people you are using in a focus group study are actually part of your target market. But what really perturbs me is why organizations like Pepsi Co that have access to the best resources are so reluctant to get onto the ethnography bandwagon.  

 Anyhoos, check out this great article by Catharine P. Taylor. 

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=102374