Saturday, September 22, 2018

McDonalds in a bite

1) ECONOMIES OF SCALE-

McDonalds predominantly sells hamburgers,  various types of chicken, chicken sandwiches, chicken mcnuggets. All under one roof due to which unit cost to produce a product will decline as the variety of product increases that is the more different but similar goods you produce,the lower is the total cost to produce each one.

2) PEOPLE RESPOND TO INCENTIVES -

McDonald's response to changing consumer taste and  negative backflash because of the  unhealthiness of their food, the company added to its menu salad, fish, smoothies and fruits .In most markets McDonald's offer salads and vegetarian items ,wraps and other localised fare.

3) PRICE DISCRIMINATION-

It is a pricing strategy where identical or largely similar  goods or services are transacted at different prices by the same provider in different markets.
McDonalds provide exclusive offer of free burger of your choice on orders of rupees 299 or more and free medium meal  on a purchase of Rs 399.

4)PRODUCTION FUNCTION-

Production function relates to the maximum amount of output that can be obtained from a given number of inputs

McDonald's product are offered as either  "eat in" ( where the customers of to eat in the restaurant )or" take out "(where the customer opts to take the food for consumption off the premises.

5)COST BENEFIT ANALYSIS-

McDonald's  has been delivering the quality service, cleanliness & value to its customers and with passage of time they are providing fresh and healthy product to the customers .

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