2: Pricing Strategies and Decisions

Pricing Strategy

Bridget King

MKT402

Verna Mayers

Strayer University

October 28, 2018

McDonald Company Description

McDonald is an enterprise that offers various fast foods and chicken food to a large number of consumers. The company is one of the largest fast food chains in the world. McDonald Company has become a major household in the United States due to its popularity for dealing in a variety of convenient food products. For many years, the company has experimented with various offerings. Among the products that the company offers for sale include hamburgers, chicken, fish, pork, sauces, beverages, desserts and breakfast.

The company is anxious about its sales and desires to enhance its sales in many parts of the European nations. McDonald faces a lot of challenges in these nations related to pricing since most of these nations are still developing. This makes it hard for most of the European nations to buy food from the company on a regular basis despite the quality of the products. This forces the executives of McDonald to seek guidance from the price strategy consulting company in order to devise the most appropriate strategy that will increase its sales and increase profits (Madhavaram, Badrinarayanan, & McDonald, 2005).

Pricing Strategies

After critically examining the company, I discovered that most of the problems that the company faces results from poor technology, too much interference and regulation from the government, lack of consumer preferences and also inadequate market information. McDonald and three top sellers of the company products have not been able to adapt to the most appropriate kind of technology for instance when handling the products. Most of the activities are still being done manually and this has greatly affected the company’s pricing decisions. Too much regulation on the other hand also has affected McDonald’s pricing strategy through such things as taxation and other unnecessary costs from the government. The top sellers of McDonald products have also failed to collect the right information in the market, for example, the information related to other competitors thus affecting their pricing decisions. They have also failed to consider and make priorities on what many consumers want in the market thus adversely impacting their pricing decisions.

The three top sellers of McDonald products are the United States of Australia, Africa and France. Apart from these three nations, there are also several other nations which sell the products of McDonald company. The pricing considerations of these three top sellers of McDonald products are very desirable concerning pricing since these nations are very developed. One nation that has a lot of concerns regarding the pricing of McDonald Company in India and other parts of Asia since they are not as much developed as the U.S AND France. The top three sellers of McDonald products have employed a universal pricing strategy. The approach for the life cycle of products by the three top sellers of McDonald products by the top traders involves competition since this gives them the motivation of doing more regarding the quality of commodities (Hafezalkotob, Mahmoudi, Hajisami, & Wee, 2018).

The pricing considerations of top sellers of the company focus more on the infrastructure of all the company branches. They have also concentrated more on the quality of products developed by their sellers. McDonald top sellers have always ensured that they sell healthy and fresh products to their consumers on a regular basis. They are concerned about the health issues that are associated with fast foods and therefore they have made a lot of efforts to ensure that what they deliver to the clients are good for their health. Another strategy is that they compromise the discounting strategies in order to increase their sales volumes. They have also been able to deliver the products within the shortest time possible to their clients. Market segmentation has also been useful in increasing the level of sales for the company since the market has been divided into several classes. Therefore the strategies employed by the companies enhance the level of McDonald sales. These strategies have been very effective towards enhancing the level of sales of McDonald company products (Ernst & Dolnicar, 2018).

References

Ernst, D., & Dolnicar, S. (2018). How to avoid random market segmentation solutions. Journal of Travel Research, 57(1), 69-82.

Hafezalkotob, A., Mahmoudi, R., Hajisami, E., & Wee, H. M. (2018). Wholesale-retail pricing strategies under market risk and uncertain demand in supply chain using evolutionary game theory. Kybernetes, 47(6), 1178-1201.

Madhavaram, S., Badrinarayanan, V., & McDonald, R. E. (2005). Integrated marketing communication (IMC) and brand identity as critical components of brand equity strategy: A conceptual framework and research propositions. Journal of advertising, 34(4), 69-80.