McDonalds 2002 Annual Report Download - page 14

W
hen research-
ing new ways
to market
Brand
McDonald’s to a broad spec-
trum of customers in the
U.K., we learned that while
low prices are very impor-
tant to some people, others
place a high priority on large
sandwiches with
special tastes.
We also learned
that the folks in
the latter group
are willing to pay
a premium for these satisfy-
ing sandwiches. The com-
mon thread: people want
choice and flexibility.
Based on these findings,
we created a relevant three-
tiered menu that showcases
a variety of taste and price
options in the U.K.
To start, we’ve retained
our core menu, which fea-
tures traditional favorites,
such as our Egg McMuffin
and Quarter Pounder with
Cheese sandwiches, as well
as our popular Extra Value
Meals and Happy Meals. In
fact, we are building on the
success of our Happy Meals
by broadening their appeal.
Starting this April, kids and
their parents will have more
entrée and beverage choices,
including Chicken Selects
and no-sugar-added fruit
drinks. In addition, for
59 pence, they will be able
to add a dessert, such as
slices of fresh fruit, to their
Happy Meal.
We also are attracting
more price-sensitive con-
sumers with our 99 Pence
Menu, which features items
including double cheese-
burgers, fries and McFlurry
desserts. Customers are
using this menu to bundle
their own meals, to satisfy
their desire for a snack and
to make con-
venient add-on
purchases. After
the introduction
of this afford-
able, flexible
menu, young adults told us
that they are coming to
McDonald’s more often.
Finally, we are appealing
to consumers who want
larger sandwiches with pre-
mium offerings, such as the
robust McChicken Premiere.
This popular sandwich fea-
tures a chicken breast filet
topped with piquant salsa
and a sour cream and chive
sauce—all served on focac-
cia bread. Since its introduc-
tion in 2001, chicken sales
as a percent of total sales
have increased.
Clearly, our three-tiered
menu is giving us a compet-
itive edge in the U.K., as we
gain recognition as a place
for value, taste and variety.
12
right London’s bustling Picca-
dilly Circus. far right A taxi
driver stops for a late-night
meal at the Bath Road
McDonald’s restaurant in
Middlesex, England.
we created a relevant
three-tiered menu
that showcases a variety
of taste and price options
in the U.K.
United Kingdom
IT’S 11:00 P.M., and the
24-hour McDonald’s on
Bath Road near London’s
Heathrow airport is busy
as usual. There typically
are a number of London’s
signature cabs in the
drive-thru or parking lot,
as many taxi drivers
frequent this conveniently
located restaurant. They
know that they can rely on
getting a tasty meal served
quickly, at a good value—
and possibly run into an
old chum—between fares
to and from the airport.