I have mentioned in one of my previous posts about the kinds of advertising appeals used to appeal to the consumers. One such appeal is Favourable Price Appeal. This appeal is used for price conscious segments. The demand is highly elastic in such segments for not-so essential products like McDonald’s happy meal. As such, demand is strictly a function of price.
With regard to Indian consumers, the middle class segment is highly responsive to price-based promotions. McDonald’s realized this trait of the respective segment, and responded accordingly. It used the so-called favourable pricing appeal. The USP of McDonald’s offerings is Happy Price Menu.
McDonald’s is well catering to the requirements of its consumer segment. According to Financial Express data, the compound annual growth rate for McDonald’s is 40%. Company has expansion plans in tier two cities too on account of its great sucess in tier one cities.
The essence od its great appeal can't be ignored and lessons must be taken on strategic positioning in various markets.
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