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While niche markets get all the free press and media publicity, it is the likes of the McDonald's hamburger chain that seem to make most of the running, generating revenue and influencing taste with their advertizing. The outcome of the move by McDonalds to promote healthy eating in Europe will provide a very interesting test of its influence. (550 words)

McDonald's is perhaps the antithesis of niche marketing. From a single store in California in the early 1950's McDonalds has spread to the four corners of the earth. The original McDonald brother's restaurant may have initially been something of a niche market, succeeding because it provided the type of food and service demanded by enough people living within driving distance of its location to succeed.

But with its success over the years in franchising and the establishment of restaurants almost everywhere, its emphasis has long since shifted to promotion and providing service that can be effectively mass advertized.

That something as American as fast food and the hamburger has become so popular around the world has no doubt astonished some and even been an affront to others who regard North American culture as, at best, brash.

But the reality is that eating habits are influenced by income and resulting life styles. And as incomes around the world amongst enough people has risen, the commercial habits developed in North America have spread.

No doubt McDonalds over the years has studied this in detail, as a guide to when and where it can expect to be successful in spreading its commercial wings. Its success certainly suggests that it has been astute in being in the right places at the right time.

To make its promotion as effective as possible, it has also been careful to ensure that as far as is possible it delivers the same service everywhere, even down to ensuring that the potatoes used for its french fries are the same variety.

Recently, however, this "one size fits all" strategy seems to have run into some rough water. While US same store sales have in recent months grown by close to 15 percent annually, those in Europe have been in negative territory.

In view of recent US press and media concern over a case of BSE, mad cow disease, and several outbreaks of avian flu, this might seem rather strange. The cynic might even suggest that this is simply because American are more influenced by corporate advertizing than independent news.

The reality seems to be, however, that the death about a year ago of Dr. Robert Atkins, a long time US advocate of low carbohydrate diets, has resulted in publicity for his ideas on healthy eating and an increase in demand for meat. And McDonalds has not been slow in adjusting its promoting to take advantage of this.

As the Atkins diet has not had much exposure outside North America, so McDonalds has not benefited in its offshore markets from the Atkins phenomena.

But McDonalds is now in the process of introducing a "Salads Plus" menu in 14 European countries and claims success with it in Britain and Germany where it was first launched.

The question remains as to whether McDonalds will be successful in promoting the healthy eating implicit in its "Salad Plus" menu. If it is, it will have succeeded where many governments failed, and the cynics case will be supported.

May 25, 2004