Sunday, 24 October 2010

Mcdonalds 4 p's part 2

Price is the most important “P” of marketing mix because it is the only “P” which creates Revenue for the firm. Whenever a customer comes into a fast food outlet like McDonalds in India he always wants value of the product he purchases. He wanted value of their money out of product. McDonalds has kept its prices low in the Indian Market for capturing most of their target groups but it can also affect them. Customer can feel that quality is being compromised. McDonalds has very strong Image on the global Market and it is Important for McDonalds now to charge a little high prices of their new product range because it will increase their market share. Consumers in India are now capable of spending Rs 50-100 for their one time Meal. So McDonalds should capture this opportunity as KFC and subway are utilizing. By introducing new products they can charge a little high so as to cover their profits using this segment. They should price according to appropriate demand supply equation.
McDonalds has a strategy by which they understand the importance of growth within International markets. McDonalds have great interiors off all their outlets and they have reached many metro cities. Serving millions of people there and getting revenues. But there are still a lot of untapped regional markets in India especially in eastern part of India where there is less presence of McDonalds and other fast food brands in the country. McDonalds should concentrate now on opening their stores in smaller cities because according to census of India population, 2010, population of smaller cities is nearly 177 million which is a huge revenue generating market. They should also add some new features in their outlets such as Wi-Fi Internet, television screens, couches so that youngsters can also come there and relax with their friends and can have their products.

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