Wednesday, February 7, 2007

Current Problem, Current Opportunity


The phrase ‘something happens for a reason’ might seem too trivial for us, but few people realize that certain things do happen for good reasons.

Australia, just like any other Western countries, is turning into a health-conscious society. Its alarming obesity rate triggers the Heart Foundation to promote healthy lifestyle through its campaigns. One of its significant efforts is to introduce a “tick” program, aimed to help consumers make healthier food choice conveniently. Basically, all food products which have met strict heart foundation standard have a “tick” label on their packaging. This “tick” will differentiate these products from those which are deemed to be unhealthy.

McDonald’s, being the biggest junk food provider in the world, sees this healthy lifestyle trend as an alarming situation. When more and more people become health-conscious, they will consume less junk food. This would mean bad business for this giant fast food chain.

Aware of this threat, McDonald’s quickly joins the crowd by going into the health-conscious bandwagon. They create new menus which can get the Health Foundation’s approval “tick”. They do continue selling the old hamburgers and fries, but some of their menus are healthier. This is a huge loop for their marketing. This strategy causes McDonald’s to have an ‘excuse’ to declare that they do try to address the current problem, even though they are still selling junk food.

Currently, McDonald’s has Health Foundation’s “tick” for their nine new menus. They create a better image to health-conscious people, and with this image, they attract new customers. Customers who have left McDonald’s after being disgusted by their junk food, are now invited back to try their healthy menus.

Similar story also happened in Jakarta few days ago. LG Indonesia announced that they would replace all LG in-store products that were damaged as a result of the flood. By doing this, they bring their relationship with the customers, in this case, the store owners, to the next level. Think of the store owners as LG’s front soldiers. These personnel will have a huge impact in determining who shall win the battle in obtaining the market share of the electronics in Indonesia.

Australia’s McDonald’s has switched a major threat into a new opportunity to get new customers, thus increasing profit. LG Indonesia also followed the trend of changing a problem into new opportunity to expand their market and distribution coverage.

Only few can see a problem as an opportunity, and when these people say that things happen for good reasons, I bet they are right.


Author: Michael A Oei – MarketingFirst Group
Edited by: Melissa Giovanni

2 comments:

Unknown said...

i believe that health concious food isnt the only reason. They also try to do some research publicly about how to make the best french fries with less fats and etc..

MarketingFirst Group said...

You are right!

McDonald said in some occasions, that they want to make better products (in both aspects; healthy & tasty) - product improvement -

But some people are saying that because McDonald is under pressure (obesity problem), then McDonald do this kind of research. Otherwise, they will lose a lot of customers.

It comes from inside or because of market demand. None knows.