A good pricing strategy is an important factor in staying competitive in the fast-food industry. Thus, McDonald's, one of the largest fast-food chains in the world, has always been practicing creative TEACHING ONLINE LEARNING MODULE ABH 102: Prindples of Markethg 1 SEM | 02 - WEEK 4 |3 of 5 pricing strategies to attract customers. Its campaigns have been successful as they are still one of the dominant companies in the fast-food industry. One of these pricing strategies is their "value meals." These are essentially a group of menu items that are sold together in a bundle but are priced cheaper than when they are bought individually. As the fast-food industry tends to cater more towards being an economical and "on-the-go" food option, this pricing scheme aims to widen their customer base by increasing their affordability. The same pricing scheme is used in the United States as McDonald's faces competition from Burger King. While Burger King uses the "5 for $4" deal (five-set food items for $4), McDonald's uses the "McPick 2 for $2" menu (two food items of choice for $2). The products in Burger King are fixed with a bacon cheeseburger, small fries, a small drink, four-piece nuggets, and a chocolate chip cookie. On the other hand, McDonald's deal has choices such as McChicken, McDouble, small fries, or mozzarella sticks. This pricing scheme aims to attract more customers to visit the store. It was launched in January 2016 and was patronized by many customers. However, it was only a limited-time offer as it ended in February 2016, much to the dismay of its patrons. It was permanently replaced by the "McPick 2 for $5" deal, which is comprised of its previous menu choices and additional options such as the Big Mac, Quarter Pounder, and Filet-o-Fish. In recent reports, the McPick 2 deal will continue to be offered worldwide as long as McDonald's operators in the US stick with the $5 price, despite the negative comments on the price increase. However, the company is still optimistic about the success of its strategy. While its competitor, Burger King, provides more but fixed items for a lower price, McDonald's capitalizes on allowing the customers to pick their preferred food. Surce: Principles of Marketing for Senior High School Book by Cynthia A. Zarate

A good pricing strategy is an important factor in staying competitive in the fast-food industry. Thus, McDonald's, one of the largest fast-food chains in the world, has always been practicing creative TEACHING ONLINE LEARNING MODULE ABH 102: Prindples of Markethg 1 SEM | 02 - WEEK 4 |3 of 5 pricing strategies to attract customers. Its campaigns have been successful as they are still one of the dominant companies in the fast-food industry. One of these pricing strategies is their "value meals." These are essentially a group of menu items that are sold together in a bundle but are priced cheaper than when they are bought individually. As the fast-food industry tends to cater more towards being an economical and "on-the-go" food option, this pricing scheme aims to widen their customer base by increasing their affordability. The same pricing scheme is used in the United States as McDonald's faces competition from Burger King. While Burger King uses the "5 for $4" deal (five-set food items for $4), McDonald's uses the "McPick 2 for $2" menu (two food items of choice for $2). The products in Burger King are fixed with a bacon cheeseburger, small fries, a small drink, four-piece nuggets, and a chocolate chip cookie. On the other hand, McDonald's deal has choices such as McChicken, McDouble, small fries, or mozzarella sticks. This pricing scheme aims to attract more customers to visit the store. It was launched in January 2016 and was patronized by many customers. However, it was only a limited-time offer as it ended in February 2016, much to the dismay of its patrons. It was permanently replaced by the "McPick 2 for $5" deal, which is comprised of its previous menu choices and additional options such as the Big Mac, Quarter Pounder, and Filet-o-Fish. In recent reports, the McPick 2 deal will continue to be offered worldwide as long as McDonald's operators in the US stick with the $5 price, despite the negative comments on the price increase. However, the company is still optimistic about the success of its strategy. While its competitor, Burger King, provides more but fixed items for a lower price, McDonald's capitalizes on allowing the customers to pick their preferred food. Surce: Principles of Marketing for Senior High School Book by Cynthia A. Zarate

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter13: Pricing Concepts

Section13.7: Applying Breakeven Analysis

Problem 1LO

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