EATING CHEAP, IS IT POSSIBLE?
As you know McDonalds launch many promotions for increase the sales and the clients. Since some years, this company decided to put some of their products at 1 Euro, just to deal with the economic problems. If you like McDonalds but you think that eating a simple hamburger with some potatoes are too expensive, now you can eat the same porducts but more cheaper.
For example, if a menu costs around 6-7 €, buying 1 € products, you will spend less money and eat the same.
McDonalds is famous for the number of promotions that they launch during the year.
As we are going to analyze the different strategies that some restaurants use, we have to say that this is a company that studies very carefully the market and the environment where they are going to establish a new McDonalds, and also analyze what type of strategies are going to be the best.
They focus their products specially for young people because the prices are low.
They have to study all the variables that are going to affect the company, and see how they can do to increase sales and maintain the loyalty of the clients.
We think that the strategies that McDonalds is using are very good to achieve their objectives, not only in Spain, but all over the world.
In Spain, all the promotions that they have launched have been very satisfactory, and one of the most famous is 1x1 ( One product for only 1 €)
Some of the objectives that they are achieving are:
1- Prepare quick food at a cheap price
2- Maintain their clients
3- Increae the sales
4- Deal with the competitors
Related to the competitors, one of the main competitors of McDonalds is Burger King, another fast food company that also offers hambuergers and almost the same products.
A few months ago, at Tv we can see that Burger King decided to offer also a promotion offering some of their products at 1€ as McDonlads did.
In our opinion we think that launching this promotion is a good strategy to increase their sales and make the company more profitable in this crisis time.
Analyzing both companies, we saw that Burger King offers a great variety of products, and more varied. McDonlads offers more simple products and don't have a vaiety.
During the last years we saw how companies are doing to try to increase the sales and the economy of the company. A way of doing this, is analizing the market and the consumers and try to feer, in this case the promotion using the correct strategies into the clients.
As you know, companies have to think in the clients, and try to satisfy their needs, so, althought this both companies are competitors, we think that they are working well separate and they will keep increasing sales and achieving their objectives.
What do you think about this kind of strategies or promotions that some companies are adopting?