Value propositioning is very important for any kind of business as it helps us decide how to position our product. After reading Jeremy Low’s Blog post which talks about the change in the sales figures of McDonald’s burgers due to the change in the current trends in the market.
People are concerned about their health these days, people want to eat gourmet cuisines, people want to make their own meals. That’s what the people want these days and that’s not what McDonald’s sells. This is leading to lower demand for their burgers and giving the newer, more healthier competitors, an advantage to take the lead.
McDonald’s is trying to offer their customers an opportunity to build their own burgers in their branches. This gives them a sense of satisfaction with their food, encouraging them to pay the higher price that McDonald’s would charge them. McDonald’s is trying to introduce new ways to attract their customers and increase their sales which already suffered a drop.
The fact that McDonald’s followed a cost leadership style by charging one of the lowest prices in the market, will not work with this new option in their menu where they will be charging a premium price as that will not work with their style, hence either they must change their style by either differentiating their burgers, enter a new market or lower the cost of their custom burgers.
I believe that the idea of letting their customers customize their burgers will help them boost their sales, that’s only if they make that feature available for a range of gourmet burgers instead. That would increase the sales as people will know they are making something rich and expensive compared to the regular burgers that they sell.
Image source:
https://twitter.com/mcdonalds
