Case Study:

McDonalds: The Balanced Active Lifestyles Menu

Who are Our Group Members?

BJMP5023
Group Presentation 3
1. Mohamad Khosim bin Othman
(819228)
2. Nofri Yanti
(820809)
3. Suloseni Supermanuam
(820837)

What we will cover today?

1. New Product Developments
Concept and Strategy
2. McDonalds Facts
3. Summary of Case Study
4. Case Studys Questions and
Answers
5. Q & A

What is New Product Development (NPD)?

The complete process of strategy, organization,
concept generation, product and marketing plan
creation and evaluation, and commercialization of
a new product
NPD is one of powerful business activities
Changes of markets, technology, and competition
are mostly leads for new product development
Five basics steps in NPD process: Concept,
Idea, Design, Test and Release, and Review

New Product Development Process

Idea Generation

Idea Screening

Concept
Development and
Testing

Product
Development

Business Analyst

Marketing Strategy
and Development

Test Marketing

Commercialization

Post Launch Review

McDonalds Facts
1st Mcdonalds restaurant was run by brothers
Dick and Mac McDonald in California
Ray Kroc opens the first McDonalds in Des
Plaines, Illinois in 1955 (1st Franchisee)
Served fast foods since 1955 where sold 100
million hamburgers within 3 years.
Has 36,258 restaurants in 119 countries.
Serve 69 million customers every day worldwide
Ray Krocs motto: If I had a brick for every time
Ive repeated the phrase Quality, Service,
Cleanliness and Value, Id probably be able to
bridge the Atlantic Ocean with them.

Summary of the Case Study

(McDonalds: The Balanced Active Lifestyles Menu)

Changes on the global trend where Customers are
more concerned about healthy food and lifestyle
Led McDonalds to initiate Balanced Active Lifestyle
menu since 2003
Also custom menu to suit local tastes and preferences
Involved of a cross functional, international team and
outsides expertise e.g. partnered up with The Food
Group Australia (FGA), European
Nutrition Task Force (ENTF)

The Balanced Active Lifestyles Pillars: Menu

Choice, Physical Activity and Information

Menu
Choice

Physical
Activity

Information

Balanced Active Lifestyles

The Balanced Active Lifestyles Pillars Implementation:

Menu Choice

Offers various
range of
Healthy Menu
which also
custom with
local taste and
preferences.

The Balanced Active Lifestyles Pillars Implementation:

Physical Activity
Promote and
Provide Active
Lifestyles
Campaign
through various
media e.g.
Packaging,
Website and
also become
sponsorship on
the Olympic
and other
sports event

The Balanced Active Lifestyles Pillars Implementation:

Information
Provide the
nutrition
information of
the menu e.g.
Board Menu,
Packaging For
helping
Customers to
decide their
healthy menu
preferences

Case Studys
Questions and Answers

Question 1:
What were the main drivers for NPD at McDonalds?
Changes on major global trend in the food
industry
More people concerned about healthier food
and lifestyle
Healthy, Low Fat Food and Daily Exercise
became major issues on Customers decision on
food
Also become part of Corporate Responsibility to
educate Customers about health foods and
active lifestyles

Question 2:
What were sources of new product ideas?

Internal
Sources

External
Sources

Cross Functionality of
International Team from
McDonald i.e. R&D Team,
Marketing Team, etc.

Customers /Markets
Experts in the areas of
nutrition, wellness and
activity

Question 3:
To what extent has McDonalds approach to NPD followed
the stage model of NPD shown in figure below.
CUSTOMERS

IDEA GENERATION

IDEA SELECTION

PRELIMINARY DESIGN
Customers
feedback

BUILD PROTOTYPE

TEST

FINAL DESIGN

PRODUCE NEW
PRODUCT/SERVICE

R&D TECHNOLOGY

Question 3:
To what extent has McDonalds approach to NPD followed
the stage model of NPD shown in figure below.

Idea Generation
development of active balanced lifestyle via customers feedback
developed by the cross functional team by utilizing the R&D
Technology.
Preliminary Design and Build Prototype
to test the idea within the cross functional teams within the company
besides the experts outside
Test
performance statistics from data at the stores
Final Design
deduced to the final design
Produce New Product/Service
Launching product awareness via media, globally , creating
promotional offers
Customers Feedback
To get feedback on how the developed product had
reached the customers demand and also for product
enhancement and the cycle will repeat again.

Question 4:
Critically assess McDonalds approach to NPD
in the Balanced Active Lifestyles initiative
Balance lifestyle approach to meet all level of the population
demographically.
Involvement of Professional Teams to conduct research and
analytical studies internally and externally
The professionals to work independently with fresh inputs to
produce assessment and reports on the demographic food
consumption to meet their promotional marketing media.
McDonalds strategic partnership programs, a win-win
situation with all parties.
McDonalds Balance Active Lifestyle Initiative become very
important to justify their presence in the newly dimension
market trend
The engagement with world known nutritionist, e.g. The
Food Group Australia and Europe Nutritionist Steering
Group
To raise sufficient financial requirements to develop the NPD
programs to cover Research, Business Model Development,
New Operational Tools, Implementation and NPD

Question 5:
Critically assess McDonalds approach to the global coordination of its NPD initiative
Appoint independent Global Advisory board to strategize
the NPD Healthy Lifestyle Active menus
The physiological and practical act inputs from the world
experts, qualified and certified Nutritionist, Olympic
Champions, Medical Health Practitioners and Physiologist
were able to modelled the NPD Active Menus to address
the Balanced, healthy active lifestyles.
The selected menus provision a very strong impact to the
public worldwide and also to McDonalds organization as a
whole had transform McDonalds from fast food stores to
Healthy Lifestyle fast food stores.
The whole programs had successfully position McDonalds
to be a competent global network outreach ensuring good
delivery to meet customers satisfaction. McDonalds NPD
program manage to strengthen their business to meet
their businesses deliverables sustainability.
The Advisory Board manage to deliver the objectives of
NPD Balanced Active Lifestyle Initiatives to their
customers without fail.
This can only be achieved through a structured and well

Independent Global Advisory board to strategize the NPD Healthy Lifestyle

Active menus
Harvey
Anderson,
Ph.D

Professor of Nutritional Sciences, Physiology and Medical

Sciences, Faculty of Medicine University of Toronto, Toronto,
Ontario, Canada

Dr. France
Bellisle

Centre National de la Sante et de la Recherche Medicale.

Head of Human Nutrition Research at Hotel-Dieu Hospital,
Paris France

Dennis M.
Bier, M.D.

Professor of Pediatrics, Director of the Childrens Nutrition

Research Center and Program Director of the General
Clinical Research Center at Baylor College of Medicine,
Houston.

Jane L.
Delgado,
Ph.D M.S

President and CEO, National Alliance for Hispanic Health.

Washington D.C. United States

Paul Gately,
Ph.D.

Principal lecturer in Physical Activity, School of Leisure and

Sports Studies. Leeds Metropolitan University. Leeds, West
Yorkshire, United Kingdom

James O.
Hill, Ph.D

Professor of Pediatrics and Director. Center for Human

Nutrition, University of Colorado. Denver, Colorado, United
States

Jackie
JoynerKersee

CEO and President of the Jackie Joiner-Kersee Foundation,

Chairman of the Board of the Jackie Joyner-kersee Center
Boys and Girls Club of East St. Louis, and 6-times Olympic

Independent Global Advisory board to strategize the NPD Healthy Lifestyle

Active menus
Robert
Kersee

Interim Executive Director of the Jackey Joyner-kersee

Foundation and Strength and Fitness Consultant with Track,
Court and Field, Ballwin, Missouri, United States

Silken
Laumann

Canada Chairperson and Athlete Ambassador for Right to Play,

and Olympic medallist in rowing Victoria, British Columbia
Canada

Miram
Founder and Director, Centre for Physical Activity and Nutrition
Nelson, Ph.D. and Association and Associate Professor of Nutrition, Gerald J.
and Dorothy R. Friedman School of Nutrition Science Faculty,
Maastricht University, Maastricht, The Netherland
Wim H.M.
Saris, M.D.,
Ph.D

Scientific Director of the Nutrition and Toxicology Institute

NUTRIM of the Medical and Health Science Faculty. Maastricht
University, Maastricht, The Netherland

Patrick
Schamasch,
M.D

Medical and Science Director, International Olympic Committee.

Lausanne, Switzerland.

Louis W.
Sullivan,
M.D.

President Emeritus, School of Medicine and Former Secretary,

US Department of Health and Human Services. Atlanta,
Georgia, United States

Dr. Victor
Tutelyan

Director, Institute of Nutrition, Russian Academy of Medical

Sciences. Moscow, Russia.

Gary Wittert, Associate Professor, Department of Medicine, University of

M.D
Adelaide; Senior Consultant Endocrinologist, Royal Adelaide

Conclusion

McDonalds is a role model of the 21st century to be

able to overcome the millennium complex challenges
The new global trend in relation to the changes
transpiring from consumers demographic and divers
satisfactory accolade was successfully addressed
through the 3 pillars.
The forces of globalization, underpinned by Internetbased technologies, the lowering of trade barriers and
the rise of smart customers have prompted McDonalds
to refine their business objectives and processes.
McDonalds strategic independent Global Advisory
Board managed to well-balanced both services and
manufacturing operations to address the NPD healthy
lifestyle market requirements.

ANY
QUESTIONS?