BIZCHINA / Biz Media Digest
Catering:McDonald's to drive China sales
(SD-Agencies)
Updated: 2006-11-10 15:04
McDonald's Corp said it is stepping up efforts to attract mothers with
young children to its 770 restaurants in China as it works to increase
sales in the China market and set itself apart from bigger rival KFC.
McDonald's, the world��s largest restaurant company but the
second-biggest fast-food chain in China, said it is focusing on mothers
partly because they are a group that has been ignored by marketers in
China.
Gary Rosen, chief marketing officer for McDonald's China, said at a media
event in Shanghai on Wednesday that there "is a huge opportunity here
with women, with mothers, to start talking to mothers here on their
level.... That's not something that's been done historically."
To reel in more female customers, McDonald's is taking a page from its
recent US turnaround by addressing moms' concerns about the food they
serve their children.
In the United States, sales at McDonald's restaurants have been
revitalized in the last three years in part because the chain has added
lower-calorie menu items like entree-sized salads and apple slices to its
menu that have appealed to women with children.
The company has also worked to deflect critics who say its burgers and
French fries are contributing to increased levels of childhood obesity in
the United States by promoting physical activity to its customers and
putting nutritional information on its packaging.
McDonald's is now taking a similar route in China, where childhood
obesity is also on the rise, adding a steamed corn cup and grilled
chicken sandwich to its traditional menu of burgers, fried chicken
sandwiches and fries.
The company also plans to test new playgrounds called "Ronald Gyms," so
that its young customers can be more physically active at its restaurants.
Rosen said, however, that Chinese consumers are less concerned about
calories and fat than their American counterparts. The major concern in
China, he said, is the threat of food-borne illnesses.
"In China it's not necessarily about calories," Rosen said. "In China,
what moms especially are concerned about is safety."
Unsafe food is a common problem in China. Last year, sales at KFC
suffered after some of its products were found to contain a dye banned
from use in food, and this year hundreds children have fallen ill due to
several mass food poisoning cases in schools across the country.
The company is addressing food safety concerns with a series of
television commercials that emphasize the quality of the beef, potatoes
and other ingredients in its products.
Nevertheless, Rosen said McDonald's wants to be ahead of the game on
things like nutrition labeling, for which there are no laws in China.
McDonald's will begin printing the nutritional content of its foods on
wrappers and other packaging this month.
(For more biz stories, please visit Industry Updates)
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