Balancing cost and consumer demand, the ledger behind McDonald s China s price increases

Mondo Technology Updated on 2024-02-01

Recently, the news of McDonald's China's price increase has set off a lot of waves in the industry. As an internationally renowned brand, McDonald's China's ** adjustment has undoubtedly touched the sensitive nerves of the public. The price increase is an independent behavior of enterprises, and the clear price is also a legal and compliant market strategy, but the impact of this ** adjustment has obviously gone beyond the simple digital change itself. It tugs at the heartstrings of consumers and triggers in-depth thinking about brand, value, market strategy and other aspects. In this rapidly changing market environment, McDonald's China's price increase is not only an economic behavior, but also a redefinition of the relationship between brands and consumers.

Behind the price increase is the increasing cost pressure, including raw materials**, labor costs, rent, water and electricity and other expenses year after year**. According to Jiemian News, the third-quarter financial report of Yum China, the parent company of KFC, showed that the company's food and packaging costs increased by 9% year-on-year, property rents increased by 6%, and salaries and employee benefits increased by 16%. In this context, McDonald's China's ** adjustment is generally at a low level, with an average increase of about 3% for its products, and an average increase of about 2 yuan for its products. Moreover, the "poor ghost" "1+1" that is loved by consumers has not been adjusted, which is undoubtedly a kind of intimate care for consumers.

McDonald's is well aware that nothing can be wishful thinking on the part of the company. The logic of price increases, the quality of products, and marketing strategies must stand the test of the market. And the consumer is finally willing to pay, which is the most important thing. Therefore, while increasing prices, McDonald's has also launched a series of preferential measures, so that consumers can feel the sincerity of the brand while enjoying the food.

Want to eat McDonald's at a better price?No problem!Consumers can enjoy discounts through three main channels: first, McDonald's regular discounts, including 1+1 all-you-can-match, 60% discount on breakfast cards, value three-piece sets and O McGinn value**, etc., these preferential measures provide consumers with more choices;This is followed by limited-time deals on the McDonald's app or mini program, which allow consumers to enjoy more affordable deals for a specific period of time**Finally, there are the coupons in the "McDonald's Doujin Store" on the Douyin platform, which provide consumers with more discounts and benefits.

In addition to preferential measures, McDonald's also actively uses diversified marketing strategies to maintain close contact with consumers. On the e-commerce platform, McDonald's has built a systematic account matrix to attract consumers' attention through activities such as issuing coupons and limited-time flash sales. This diversified marketing method not only improves the brand but also increases consumer stickiness.

The price increase is not an easy task, and McDonald's China has cushioned the market impact caused by the price increase to a certain extent through clever strategic adjustments. It not only controls the cost increase through refined operation and chain management, but also establishes a closer connection with consumers through diversified preferential activities and marketing strategies. This art of balancing costs with consumer needs demonstrates McDonald's market wisdom as a leading brand in the fast food industry.

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