marketing
Writer: Source: The Economic Times - Saturday, Apr 08,2006 7:20 AM
Big mac goes back to basics

After trying out the 'branded affordability' platform for a couple of years, fast food major McDonald's is changing its marketing focus to zero in on its core products.

Interestingly, just a couple of months ago, Pizza Hut had positioned itself along similar lines and had come up with “treat bundles at Rs 75”. Marketers had seen this move as a bid to compete with the Rs 20 burgers that are the staple at McDonald's.

McDonald's says this new focus is all about getting back to its core business. Vikram Bakshi, joint vice-president & managing director, McDonald's (North India), told ET, “The move symbolises just a change in marketing focus. For over two years, all campaigns were centred around price. Now, there is a categorical shift to product.”

Industry sources say amidst all the flurry of campaigns around the Rs 20 burger, the fast food retail chain's core products, McVeggie and McChicken, were no longer its primary marketing focus. In the international market, these are among the fastest-selling products in McDonald's portfolio.

However, according to Mr Bakshi, the campaign did not have any impact on these products. “Through the Rs 20 products, we were able to expand our customer base. But that did not have any significant impact on our core products. Our loyal customers stayed intact,” he said.

Meanwhile, McDonald's also plans to extend its positioning from being just a complete family restaurant. After getting into food courts, the group has now come up with dessert kiosks at some malls and multiplexes. The group is also in talks with some petrol pumps for starting outlets on the national highways.

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