WHAT IS PRICING?

Pricing is the process whereby a business sets the price at which it

will sell its products and services, and may be part of the
business's marketing plan.
 PRICING TECHNIQUES

Pricing techniques or strategies refer to the processes and

methodologies businesses use to set prices for their products and
services. If pricing is how much you charge for your products,
then product pricing strategy is how you determine what that
amount should be. There are different pricing strategies to choose
from but some of the more common ones include:
SOME OF THE PRICING METHODS ARE:
1. Penetration Pricing
2. Product Line Pricing
3. Promotional Pricing
4. Value Pricing
5. Bundle Pricing
6. Psychological Pricing
 MCDONALD’S
• McDonald's is an American fast food company, founded in 1940 as
a restaurant operated by Richard and Maurice McDonald, in San
Bernardino, California, United States. 
• The mission of the company is, “To create delicious feel-good moments
for everyone”. 
• In India, McDonald’s is run by two companies, Hardcastle Restaurants Pvt.
Ltd (controls the South & West India) and Connaught Plaza Restaurants
Private Limited (controls the North & East India). It first entered India back
in 1996.
 PRICING METHODS USED BY McDONALDS

In India, Mcdonald’s came up with a punchy line – “Aap Ke Zamane Mein,

Baap Ke Zamane Ke Daam”. This was done back in 2008 to attract lower
and middle-class customers to experience the offerings of McDonald’s India
and it worked out very well & the effect can clearly be seen in the consumer
base McDonalds has now.
McDonalds has certain strategies such as happy meal, combo meal, family
meal etc. to increase overall sales volumes.
 
 PRODUCT LINE PRICING
• McDonald’s has a unique pricing strategy that falls solely on their
many product lines.
• Their Value Meals fall into the category of Product Line Pricing.
• “Where there is a range of product or services the pricing reflect the
benefits of parts of the range.”
• Example: Mc Chicken Burger Value meal
 PENETRATION PRICING:
Example: When McDonalds first began to break into the coffee market, they ran a
large marketing campaign in order to gain some market share in the industry. For a
limited time frame, Customers could get a free small coffee every morning from 4-
7am. This was to promote their new coffee partnership with Green Mountain
Coffee and helped spread the word that McDonalds was now offering coffee.
 PRICE BUNDLING

For price bundling, meals and other product bundles are offered
for a discount. Such as combo meal, family meal, happy meal, and
happy price menu. The reason is to improve the total sales of the
service and product. 
 PSYCHOLOGICAL PRICING

For psychological pricing, they use prices that appear to be more

affordable, like Rs. 149, Rs. 99 instead of using the whole Rupee
amount. The strategy is to gain customers and make them buy more
products.
 PROMOTIONAL PRICING

For example, McDonald’s is the latest quick service restaurant to launch

a digital rewards program to drive sales and gain consumer insight — and
to encourage customers to download its mobile app. 
As digital and mobile sales are increasing at fast food chains, they are
looking for ways to collect more data on what these customers are buying
and how often, and loyalty programs offer one way to do so. 
 VALUE PRICING
McDonald's has Value Meals, not Value Pricing.

McDonalds came with the concept of Value Meals for Indian consumers where
in it came out with various combos in form of:
• Happy Meals comprising of small burgers. fries. Coke+toy
• Medium meal combo that consisted of Burger,fries and Coke with the price
of Rs. 75.
• Maharaja Mac Meal for Rs. 94
• Family Dines under Rs. 300. The prices for the meals were economical as
compared to the offerings in Pakistan and Sri Lanka and are 50% less than
United States.
THANKYOU!