Restaurants
___________Pricing strategy for a fast-food restaurant chain in Portugal, France, Great Britain and Germany
INITIAL SITUATION
Our client, one of the largest fast-food chains in the world, needed to determine the pricing strategy for its menus in Portugal, France, Great Britain and Germany. An analyse was needed of the simultaneous effect of several important factors in the purchase decision such as price, size of the menu, type of hamburger or sandwich, etc. on the total profit of the individual. The main objective was to define the pricing strategy in each area in order to maximize profits without needing to change the product’s characteristics.
METHODOLOGY
Quantitative approach using advanced modelling software: Menu Based Choice Conjoint. This technique was very useful to analyse joint measures, where buyers could select pre-designed menus of products and also à la carte products. Hamilton worked on a simulation tool that allowed the client to estimate future scenarios and obtain market shares and profits.
OBJECTIVES AND RESULTS
Created a supply and demand simulation tool with the aim of designing a pricing and product margin plan.
Redesigned the products offered, prioritising the products that combine good penetration with a higher margin.
Optimised the secondary product line through a joint analysis of the different menus.
Identified the ideal range of prices and products for the different targets.