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McDonald’s and Obesity Memo

Chutian Chen
MBA 603
03/22/2016

Q1: What McDonald’s need to respond is to change the traditional image. When Ronald McDonald represents the unhealthy lifestyle, people will avoid eating them. I think there is no need to eliminate Ronald McDonald in its ads, because Ronald McDonald is a symbol of McDonald’s. What they need to do is to take steps to change people’s thought of McDonald. If in ads, Ronald McDonald sell healthy salad or fruit to children, people will change their mind when think about McDonald’s.

Q2: So, for fast-food companies, they only have one choice between pay 1.5% tax on their ad budgets and add health messages to their commercials. That’s a great way to solve the dilemma between the growing in food market and the rising of obesity. The first advantage of the law is the food company have to pay something to help government solving the obesity problem. Second, the law can force food company focus more on the obesity problem, and give them a chance to change their stereotyped image in public.

For McDonald, I highly recommend them adding health messages to their commercials. As we all know that, for the most of giant food companies, ad budget is a large portion in their annual budget. 1.5% tax on their ad budgets can be an unaffordable burden for them. If McDonald choose adding health messages to their commercials, they will gain many benefits. First, McDonald has a very specific segmentation, so the ad with health messages will not do harm to the sales on their loyal customers. And second, those health lifestyle fans will try to accept some health food in McDonald. So they can gain more profits from this segmentation.

Q3: Although there is no evidence that banning food advertisement to children is working, but it still need to do. Banning these advertisement is more like a symbol than an effective way

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