McDonalds’s is deciding to launch a new version of its Dollar Menu, which includes items that priced up to $5. In order to compete with other fast-food chains’ menus, chief marketing officer Neil Golden said that the menu provided a “broader range of profitability” for its restaurants. The new “Dollar Menu & More” menu has been tested in many states already.

Although prices of products will cost more, especially when compared to Wendy’s new “Right Price Right Size” menu, McDonald’s new menu includes more variety, including new chicken items and burgers with extra toppings. Along with that, the huge brand loyalty McDonald’s maintains could allow the new menu scheme to work. These factors could actually lead to an increase in sales. Costs for ingredients have climbed rapidly in recent years, and it’s sensible of McDonald’s to keep the classic Dollar Menu, which is extremely appealing to low-income customers such as kids, but also implement a new higher-priced menu with many more options for consumers. This allows the company to effectively target a bigger market as some people may desire bigger portions or want to share with friends and also set reasonable prices to balance with its ingredients costs.

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Works Cited:

“McDonald’s Exploring Changes to Dollar Menu.” Crain’s Chicago Business. Crain Communications, Inc., 4 Sept. 2013. Web. 07 Oct. 2013. <http://www.chicagobusiness.com/article/20130904/NEWS0702/130909949/mcdonalds-exploring-changes-to-dollar-menu>.

Dollar Menu. Digital image. N.p., 2008. Web. 7 Oct. 2013. <http://2.bp.blogspot.com/-o_Mhk56TfaE/UXNemd6AeMI/AAAAAAAA7KI/ajVHAmsLYZI/s1600/mcdonalds-dollar.jpg>.

Samsung Electronics, the world’s biggest mobile phone and TV maker, forecasts a 25% jump in operating profit form a year ago. Its Galaxy range of smartphones has contributed to the expected $9.4 billion profits. Although some expect its growth rate to be threatened by the emergence of other cheaper mobile phone makers, it has not happened (at least not yet.)

The success of Samsung is due to the fact that they target both high and low income segments of the market, producing the high-quality Galaxy phones and low-cost smartphones targeted at developing countries such as India and China. I think that this is a huge advantage they have over leading competitors, Apple, as the American company only produces the iPhone. Having lived in Beijing all my life, I have seen the low-cost smartphones being used by people in the city and it is clear that Samsung has been successful at targeting those consumers. If Samsung keeps producing quality phones at a low price, it can capture more middle-income segments of the market and dominate phone markets in many developing countries. However, they would need to dig deeper in innovation to compete with the new cheaper iPhone 5C Apple has released.

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Works Cited:

“Samsung Forecasts Record Quarterly Profit.” BBC News. BBC, 10 Apr. 2013. Web. 07 Oct. 2013. <http://www.bbc.co.uk/news/business-24393850>.

LG competes with major electronic brands such as Samsung in creating developed electronic products. However, LG’s latest campaign is about “making life easier and more enjoyable,” as Andy Mackay, LG UK commercial director stated. Many brands that produce consumer electronics put so much focus into technological aspect, which at times confuse customers. LG has decided to introduce a new “It’s all possible” brand positioning that allows them to connect with consumers on a more personal level on how its products benefit daily lives of people.

LG has repositioned its company and market, as they are more directed to people who may not be extremely familiar with all the technological aspects of products. However, I think that LG will also lose out on many customers. This is because the shift in focus of the brand may leave some loyal customers, who are interested in technology, to lose interest. If LG does not focus on those aspects in its advertising, and instead focuses on adding “warmth” to its brand, those loyal customers may search for other brands to replace their desires. Overall, I feel that the number of customers LG may possibly lose could be more than the number they gain.

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Works Cited:

O’Reilly, Lara. “LG rolls out new positioning to add ‘warmth’ to the brand.”Marketing Week. Centaur Communications Ltd, 3 Aug. 2013. Web. 7 Oct. 2013. <http://www.marketingweek.co.uk/news/lg-rolls-out-new-positioning-to-add-warmth-to-the-brand/4007542.article&gt;.

LG. Digital image. LGBlog.co.uk. LG, 30 Oct. 2008. Web. 6 Oct. 2013. <http://www.lgblog.co.uk/2008/10/lifes-still-good/&gt;.