McDonalds Pricing Strategy in India

McDonalds in India
McDonalds began operations in India in 1996. The fast-food chain started making profits after it broke even in 2008. Reports suggest that McDonalds two subsidiaries in India, Connought Plaza Restaurants based in New Delhi and Hard Castle Restaurants in based in Mumbai posted accumulated losses of Rs 189.19 crore and Rs 119 crore in fiscal 2008. A total of Rs 211.41 crore of accumulated losses for fiscal 2008 for the company. India and China continue to be high-growth markets for McDonalds. The top management felt that McDonalds had achieved tremendous brand success in India and there was nothing extraordinary about accumulating losses and that McDonalds India was not a unique case as the company was making losses similarly in many other markets.

What McDonalds is doing to increase the footfalls and increase the store utilisation?
McDonalds menu is recognized world over for its affordability. A McDonalds store gets an average of 3,000 walkins every day in each of its 165 restaurants in India. Typically, a customer visits a McDonalds store twice. The key is to make that customer visit the McDonalds store a third time so that the existing store space and rent can be leveraged further. Earlier attempts by McDonalds to do so included adding breakfast to its menu, longer hours of service, setting up of kiosks etc. Eventhough breakfast was on its menu globally, it was on launched on a trial basis in India. However, McDonalds had a snack joint tag in India. To overcome this McDonalds added a lunch and dinner menu.

McDonalds Pricing Strategy in India

In September 2009, McDonalds announced reduction in prices by almost 25% for its lunch and dinner menus. Prices for its extra-value meals like McVeggie and McChicken were reduced to Rs. 85 and 95 respectively from Rs. 110 and 120 respectively. Typically a meal consists of burger, French fries and soft drinks. This strategy was surprising as it came at a time when food prices were increasing by the day. Cutting prices in such times did not make sense. But the management in India was convinced that tweaking the prices of it combo meal offering would help customers prefer McDonalds as a lunch and dining destination as well.

Nokia A struggling market leader

Jan 8, 2010This article briefly discusses why Nokia's sales and profits dipped in the fourth quarter of 2008 and can it make a turnaround in 2009 with its strengths and utilising the opportunities.Tags: MOBILE PHONES, NOKIA
Business Strategy and Management January 24, 2009"In recent weeks, the macroeconomic environment has

deteriorated rapidly, with even weaker consumer confidence, unprecedented currency volatility and credit tightness continuing to impact the mobile communications industry." Nokias President and chief executive Olli-Pekka Kallasvuo. Nokia is the worlds largest handset manufacturer and the maker of four out of every 10 mobiles sold worldwide. In the past few months (fourth quarter 2008), the mobile phone market slowed dramatically and Nokias competitors Motorola and Sony Ericsson announced quarterly losses and even the sales of Apples iPhone slowed down. The slowing down could hit other handset manufacturers more severely and force them away from the market. However,

this isnt reason enough for Nokia to cheer as its sales also dipped particularly in large markets like China where sales came down by almost 35% from the last quarter. Some analysts even reported that the companys operating profit margin on handsets was at its lowest point in 10 years.

Why Nokias sales and profits dipped?

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Slowdowns in both developed and developing markets. Nokias price strategy: Nokias refusal to be drawn into a price war in developing countries. Nokia is clearly struggling to maintain its dominance in the face of aggressive price competition from its rivals. Cash-strapped consumers: In China, which is regarded as the companys largest market, consumers are now increasingly being price conscious (due to the faltering economy, slowing exports and slumping real-estate market) and are preferring non-branded inexpensive phones. Competition: The total market for high-end devices increased. But, Nokias high-end handsets did not do well as compared to Apples iPhone and Research In Motions BlackBerry. Increasing sales of cheap lower-margin devices: In the fourth quarter of 2008, margins dipped because a large proportion of sales was of cheap lower-margin devices.

Can Nokia turnaround? Nokias Strength and Opportunities

Analysts feel that Nokia is in the best position to make a turnaround. With a huge market share it can manufacture at a lower cost per unit. Its wide range of products can give it an edge over any competitor and it has one of the best distribution networks in the world. Nokia can certainly capture back share in the vital high-end devices market with new products such as its 5800 Xpress Music (a lower priced iPhone like touchscreen phone) and making more consumer oriented phones.

Cherry Mobile: Price is their strategy

SUNDAY, SEPTEMBER 19, 2010

Cherry Mobile: Price is their brand strategy

Philippines holds a commanding market for the mobile phone industry, with Filipinos almost changing makes and models almost every six months. We are so distraught about our handset unit that it has somehow become part of our fashion signature, and for some, a symbol status. We would not have been a world's "text capital" if not because of our incurable fancy to mobile phones despite our economic improbability. But there are thrifty few in some of us who preferred the most practical option. If you are that person, how practical can you get when it comes to mobile phone. Have you ever scrimped with your trusty Nokia 5110 for the longest time now? Or stayed in love with that Ericsson T-series one liner clamshell phone? Or the Alcatel "Safeguard-looking" phone.

Or you'd better be grab the new price-buster models from Torque and Cherry Mobile that would cost cheaper than you regular balance. Ok, I'm exaggerating, I just couldn't believe that there are phones in the market that would cost Php1,000 or less. Lately, a friend Jordan lost his Nokia phone at one of the drinking bars we are frequenting to. He even tried going back to the bar just to check with the waiters if there's any phone left from the table he was seated. To the unlucky him, none was found. Or admitted found. Right now, the fellow is just sporting a Cherry Mobile P1, smaller than the size of my Filipino astronomer membership ID. So small, it is as small as its price range. If that isn't the cheapest phone out there, I don't know what is. The P1 is housed in a sturdy plastic with five different eye-catching candy colors: Black, Red, Green, Blue and White/Silver. The user interface is straightforward. 8-year-olds would find the UI of the Cherry Mobile P1 a piece of cake. The phones functions come with its price tag. Its limited to texting and calling making it an awesome secondary phone. So if youre looking for an affordable phone and your only requirements are being able to text and call, this is one phone to consider. It's a no frill phone. It can do your expected basic phone function: SMS with predictive T9 input, GSM 900/1800, and 8-tone polyphonic melodies reminiscent of a Tamagochi. Not bad for a subPhp1,000 price point device. Indeed, Cherry Mobile's brand positioning is the price. Nothing beats that. I particularly like Jordan's comment when we started raising our eyebrows upon looking his phone that we initially thought to be just a calculator or a keychain. He said,"it's ok, I may have the most backward of phones in terms of features, but I am driving a Honda Civic SIR, let's just drag the road and I will let you bite the dust." The guy has a point. Or he is just pissed off.