While McDonald’s is a favorite among minimum wage employees who want to have the best quality of food for their money, the globally-famous fast-food chain is now expanding its demographic. Because it has been the go-to place to eat for singles, employees and teens, executives from the famous fastfood chain realized that their target is missing a segment – families with children. And so newly installed McDonald’s Holdings Co. (Japan) President and CEO Sarah Casanova proceeded with an expansionary program beginning this year to make sure this demographic is properly included in their marketing schemes.
It was not an overnight decision for Casanova to include families in their target market. But in recent years, sales in fast food chains have decreased while family restaurants have increased its sales by at least 3 percent. Casanova decided to target families in their marketing strategy as 35 percent of customers who dine in their establishments are composed of families with children. The slump in sales hit the company so hard, some branches had to close down. Those remaining ones went through a complete overhaul. Around 50 outlets will now have play area for children and new set of Happy Meal toys were launched to attract more kids. Just last month, a new product, which incorporates avocadoes, was introduced to encourage health-conscious eaters to still dine in their branches.
But in spite of all these revamp, McDonald’s remain in the slump. Since Casanova took over from Eiko Harada last August, sales remain as it was before, only reaching past the target once under her leadership. Vice President for Finance, Row Imamura said, “Half the reason behind the lower profit is our weak sales.” It seemed that customers are looking for something that Casanova has not quite pinpointed yet. But this year’s forecast is looking far better than the past years’ gloom. Hopefully, Casanova’s reputation and previous achievements in marketing will be good enough to turn the company around.
[via Nikkei Asian Review]