A Report on Mcdonald's Malaysia

3031 WordsApr 26, 201313 Pages
To : McDonald’s Management. From: Nurul Amirah Binti Umar Shaifuddin. Title : A Report on McDonald’s in Malaysia. Date : 14th December 2012. 1.0 Introduction McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving nearly 69 million people in 119 countries each day. It all started with two brothers, Richard and Maurice McDonald pioneers in the fast food industry and were the first to use assembly-line format in a restaurant kitchen efficiently. In 1940, the brothers decided to open a small drive-in restaurant, because the only business that they had seen succeeding in the current economy was a little hot-dog stand. (Luxebery and Halberstam, n.d.) Ray Kroc was the exclusive distributor of…show more content…
In addition, McDonald’s also introducing a limited edition desserts, ‘Joyous Butterscotch’ available in Sundae and McFlurry and as well as Golden Pineapple Pie. 3.2 Price Price is referring to cost of a product to a customer or how much a customer have to spend to acquire a product. Price is considered to be the most significant factor that affects consumer’s choice (Kotler, Armstrong, Saunders, & Wong, 1999). According to Kotler and Armstrong (2010), pricing includes the list price, the discount function available and the financing options available. NetMBA (2010) in the other hand claims that if the price of a product is set up too high, it may lose the amount of customers, thus profit decreases, however, if the price is set up too low, customers might think that the product is a low quality. McDonald’s Malaysia pricing strategy attracts its customers. The reason is because, the company is using a price bundling strategy whereby buying in a set of meal is cheaper than purchasing in ala-carte (McDonald’s Corporation, 2012). In order to attract widest section of customers, McDonald’s not only provide fast service system but also recommended certain value pricing and set of meal to ensure affordability. McDonald’s set meal in Malaysia comes with a burger, fries and a drink at a price as low as RM5.95 during the McValue Lunch and Dinner which available from 12pm until 3pm and 6pm
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