Abstract:

Unable to develop a truly consumer-centric strategy based on their current research practices, McDonald's endeavoured on a new segmentation approach that enabled them to deep-dive into their consumer segments & need states, learn which ones offered the highest market potential, and build menus and store formats to meet their needs. McDonald's wants to move from an operationally focused strategy to a consumer-centric strategy. To gain this foundational understanding, McDonald's commissioned Need State Identification Research across most of their markets. The research yielded the identification of 11 needs (e.g., Instant Gratification, On the Go, etc.). However, the research lacked the deeper customer profiles that drive a truly customer-centric strategy. Therefore, McDonald decided to conduct additional research using a new segmentation approach that would add nuance to its need states in order to find and prioritize the right targets, understand how consumers vary across markets and categories, and drive business growth.