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Week 6

Pricing Strategy

McDonald's Menu Problem: It's Supersized - WSJ

McDonald's uses several price strategies to attract customers and increase profits:

1. Value Pricing: Offering affordable menu items to appeal to budget-conscious customers.
2. Bundling Strategy: Combining popular items into meal deals at a slightly lower price.
3. Limited-Time Offers (LTOs): Introducing temporary menu items at attractive prices to create excitement.
4. Price Discrimination: Adjusting prices based on customer segments and preferences.
5. Value-Added Promotions: Providing extra incentives like free toys or toppings to enhance perceived value.
6. Dynamic Pricing: Adjusting prices based on demand, time of day, or other factors to maximize revenue.

These strategies help McDonald's appeal to a wide range of customers while optimizing profitability.

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