4 Ps (pace, price, promotion, production) analysis Research Paper

4 Ps (pace, price, promotion, production) analysis - Research Paper Example Remember, a wrong approximation of just one aspect can cost the company dearly. Pricing: Different people have different purchasing powers; while some are low income earners, others have high income and their spending is also high. All these customers have one thing in common; they get to determine the price of a commodity being charged based on their perceived value. Therefore, any business should consider the purchasing powers of the people it sells to in the society. McDonald’s China took the opportunity of using the tier pricing model as of 2007, to sell its products at a range of prices (adjusted to consumer index and income level among other costs in the partitioned areas) to its potential consumers, who had varying purchasing powers (Ko, 4). The price given for a commodity should also be considered; it is not always that lowering prices could generate profits. In fact, some consumers could feel as if the quality is being compromised. Again, high prices could push consumers to other alternative solutions. By 2008, McDonald China among other fast foo d companies had raised products costs to cover for the material costs harmoniously (Ko 4). The strategy was reasonable since it was done in union; hence no company was getting a competitive advantage over the other. Deciding on a product price should consider competitors price among other factors. Similarly, pricing should make room for customer discounts, especially while targeting a specific market. According to Ko, McDonald employed the plan by offering coupons to customers who shopped for their products online via Taobao. Com, as an encouragement to place food orders online (3). Product: The creation of the product is always under scrutiny from the consumer’s side; before being produced, the consumers’ preference and needs should be researched. Each age, group, or culture could want something different from the other, and it has to be considered. While others want their cultures to be incorporated, others want a totally different feel. At one point McDonald’s fantastic rice burger was not appealing to mainland Chinese consumers, even if the rice wa s their staple food (Ko 3). Assuming they had ventured fully without the test, it could have cost them heavily. Unlike KFC, McDonald and Burger King had experienced low returns initially, because their products were made of beef instead of chicken, which was well accepted and suited to the Chinese (Ko 9). With time the wants or preferences change, and the company has to adjust with the changes. Today, some Chinese prefer alternative food instead of their locals, hence McDonald use the opportunity to create and offer the western brand , for example beef burgers alongside chicken burgers, hence giving the people a choice. The product name (such as McDonald), trademark, and the unique brand have to differentiate it from the competitors and market itself within the society. Another important factor is the packaging for consumer familiarity, quantity, and quality to be worth the price. Promotion: It covers all types of the marketing communication, from TVs, Radio, internet, shows, poster s, and the press to conduct advertisements. Most of this advertising comes with a cost for airing the information to the society, but there are other cheaper modes of marketing communication. One basic, though expensive strategy that McDonald Company did upon entry in China was to seek a partnership through joint ventures with local

Case Problem Assignment Example | Topics and Well Written Essays - 750 words

Case Problem - Assignment Example Laws include the Federal Lanham Act, the State laws in the form of consumer protection laws, and the case laws acting as a precedent. C. It will be unconstitutional to ban the advertisement. The justification may be that though the present law grants the government power to regulate advertisement under certain conditions as per Central Hudson v. Public Service Commission and Board of Trustees of the State University of New York v. Fox, , the conditions remain unfulfilled. In the present case the question is whether the government will have the power to regulate liquor advertising in the state of Washington. The conditions which will allow the government to do so would be presence of substantial state interest, which is actually there in the present case in the form of a need to stop under aged drinking. The second condition is whether the regulation directly advances the interest, which it doesn’t as there’s no proof that banning advertisement will stop under aged drink ing particularly. The third condition is that the regulation is not unreasonably extensive than what is necessary, which it is, as there is no evidence that it will stop underage drinking in particular and will surely affect the liquor business. Case problem-2 The sales representative is not correct in her assertion, as it is material whether the commercial speech is true or false. The reason is that commercial speech is not protected under, any law, if it’s false and misleading, as in the present case. Certain statutes and Federal Trade Commission Rules prohibit it, in addition to the case laws which act as a precedent to support the cause. If the national company is taken as a competitor to my present online business, civil suit can be brought against the company for publishing false or misleading description of its goods. In addition to the Lanham Act, the state consumer protection laws also protect the consumers against false and misleading advertisements given by a busin ess. Finally, the Federal Trade Commission (FTC) also prohibits it. The FTC can invoke its powers, with regard to false and misleading advertisement, if the communication is an advertisement, the advertisement affects interstate commerce and the advertisement is false or deceptive. In addition to the remedies offered by the courts under the Lanham and consumer protection laws in the form of injunction and fines, the FTC has its own set of remedies to take care of the issue. The FTC publishes specific guidelines for advertising in an entire industry. The FTC has voluntary compliance remedy, which will seek a voluntary agreement from the advertiser to terminate a campaign and to repeat the same, without any sort of determination. Moreover, the FTC can make consent agreements with the advertisers, issue a litigated order in case the advertiser refuses to sign the consent order, force the advertiser to prove the claims made in an advertisement by Substantiation and move to court for an order of injunction. Case Problem-3 The consumer organization is correct in its assertion, as the conditions laid down by FTC for an ad to be taken as false and deceptive are fulfilled. In the present case there is a representation which will mislead the consumer. The exercise club states that clients of the club lose 30 to 50 pounds in two months, yet, they didn’t make their claim based on substantial evidence. When they