Until recently, consumers have seldom been concerned with healthy menu alternatives when choosing to dine in the fast food industry. As of lately, changes in consumer demand, sparring from America's recent obsession with obtaining the perfect body, have influenced purchasing decisions when it comes to fast food. According to the National Health and Nutrition Examination Survey from 1999-2000, 30.5 percent of all adults in the United States are currently obese. With obesity becoming a growing concern in the United States, as well as around the world, consumers are changing their eating habits and deciding to eat healthier. A recent survey conducted by Insight Express reveals that 60% of all Americans are eating healthier today than one year ago. This empirical evidence is quite significant, since McDonald's primary market consists of consumers who are on the go, that are not concerned with the health issues, and who do not want to pay much for their meal. The survey also highlights that Americans are less price sensitive when it comes to eating healthy, as nearly half (46%) are willing to pay more for "healthy products." Additionally, one out of every five Americans express that they are willing to sacrifice taste for healthier, less flavorful food. McDonald's has taken note of these changes and has begun to recreate itself by introducing alternative menu choices that appear to be more appealing to the health-conscious consumer.
We hypothesize that in order to increase profits, McDonald's must be able to adapt its menu in order to suit these changing consumer preferences. In order to accomplish this objective, McDonald's has begun to change its market positioning and furthermore utilize product specialization. Market positioning refers to how a company is positioned in the minds of their consumers and potential consumers. From an economic standpoint, McDonald's primary objective is to change consumer perception, since throughout its history McDonald's has built a strong reputation for providing its customers with a less-than-nutritious choice of menu items.
