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We are back again with KaMIST! Every week on Thursday we’re going to give you an insight about marketing.
[McDonald’s: The Multi-million Dollar Question]
McDonald’s is a leading brand in the food n beverages sector. It has already spread its wings around the globe, reaching 38,695 outlet stores. Established in 1940, the prominent restaurant served more than 69 million people and generated revenue as much as $102 millions daily. So, how did McD create this extraordinary income?
“Would you like to add fries or drinks with that?” is a multi-millions dollar question. This simple query makes McDonald’s richer every single year. By asking such questions, customers often shift their already made decision. This marketing technique is called upselling strategy. This strategy tries to encourage buyers to spend more. In this case, buyers are instigated to buy supplementary products, which are fries or drinks, to complement the main products, Big Mac for example. In fact, fries and soft drinks have the most profit margin compared to other McDonald’s products.
McDonald’s is the first company to start and master upselling strategy. Although the implementation seems like a piece of cake, it is not. The brand has to ensure the upsold product is reasonable. predict customer choice, and add value to the customer. The last one was the most important because it could create a seller-buyer connection, so that McDonald’s doesn’t always seem like a profit-chasing company.
Source: american express
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Find out more how McDonald’s generates revenue through simple yet valuable question.