When one thinks of McDonald's, innovation as an adjective rarely comes to mind. However, to plug decreasing sales and in an effort to unlock new growth, the company had undergone a radical shift in strategy last year and came out with spectacular offerings. This has been possible only by realizing various customer need gaps and solutions to solve them. McDonald's attacked Non consumption - a concept common to disruption and blue ocean strategy to figure out new products and services. These are summarized below:
- McDonald's sought to increase sales during parts of the day when its share of total food and snack consumption was low. For example, while McDonald's owns peak meal times in many markets, most people still eat breakfast at home. New products targeting the on-the-go breakfast eater, such as the popular McGriddle product, helped the company grow its share of the breakfast market.
- McDonald's historic focus on serving portions that are fit for a meal (or two meals, critics might argue) presented another opportunity: snacking occasions. To get at these occasions, the company introduced products such as its chicken Snack Wrap. The product carries a low price point and can easily be consumed with one hand. The Snack Wrap has been a huge hit, with sales exceeding the company's projections by 20%.
- Many McDonald's franchises are now open 24 hours a day. To try to draw people at slower hours, McDonald's borrowed a page from Starbucks' playbook, improving the quality of its coffee and making its stores warmer and more accessible, encouraging consumers to linger in the afternoon or early evening.
No comments:
Post a Comment