McDonald’s positioning-what do you think?

I am giving below excerpts of interview of Vikram Bakshi, CEO oF McDonalds in Economic Times (17/10/2007):

“I’m lovin’ it’ cuts across all age groups. One of the learnings over a period was that while the world was changing, McDonald’s remained focused on kids. But young adults cannot be ignored. Look at the coffee cafe and the multiplex revolution. We were losing out on young adults. So we tried to address them keeping our communication contemporary, fresh and fun-loving. It worked for us because India has the largest youth population in the world. But we position ourselves as a family restaurant, where all age group converge. We want to make sure that we don’t lose out on family as a unit.

At the end of the day, McDonald’s is a mass marketer. Competition is always good but it is important to see that we don’t lose focus in our offerings. Our products cut across age groups, and don’t cater to a niche. That’s the reason we’ve had a menu development team right from the beginning, which basically carries out consumer surveys on changing food habits and comes out with a menu for that purpose. Our menu reflects changing consumer behaviour, and that’s what the brand is all about – fresh, peppy and contemporary.”

I thought it would be interesting to analyze this statement and see if there are any inconsistencies. I think I would let you guys do it first and I will give my comments later. However, I would like to narrate a story to you. I have a client who specializes in recruitment for the pharmaceutical industry. He is good at it and charges higher than all the other consultants. He has developed a very comprehensive database of the people in pharmaceutical industry. By the way, the person heading the company is a chartered accountant. We were talking once and he told me that when an HR executive (his client) leaves the pharmaceutical industry and joins another, lets say telecom, they call him to recruit people for them but he refuses to take the assignment. When I asked him why, he told me that he does not want to dilute the image of his company. He said that he wants to be known as the leading HR consultant for pharmaceutical industry. I was impressed to hear this coming from a chartered accountant. Maybe this story will assist you in analyzing what Vikram Bakshi has said.

So lets hear your comments.

Avinash Narula

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i got the impression that instead of focussing on a particular age group,it focusses on families,being a mass aslo keeps changing in keeping with the consumer behaviour,so as to survive.


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