Economics and Finance for Business

Running head: ECONOMICS AND FINANCE FOR BUSINESS
Economics and Finance for Business
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ECONOMICS AND FINANCE FOR BUSINESS 2
Executive Summary
In the fast food industry, marketing information revolves around changing consumers
preferences, convenient location, food quality, pricing, targeted customers, customers' age,
market diversification, service quality, and menu selection. Fast food companies combine low
pricing strategies and food quality to develop value menu which cannot be afforded by a
large portion of customers. The research was carried out by analysing both the primary data
and secondary data on the Australian fast food industry. Primary data was located through
interviewing personnel of the McDonald and Hungry Jack’s stores located at town hall
Sydney. The objective of the study to compare and contrast the growth strategies, and pricing
and non-pricing used by the McDonald and Hungry Jacks fast food companies in Australia.
The study found out that McDonald is more superior compared to Hungry Jacks in the market
based on the share it controls. Likewise, the two companies apply almost similar strategies to
advance their competitiveness in the industry. However, differences have been noticed in the
manner in which the companies different strategies. The results have established that
McDonald has effective marketing and promotion strategies compared to Hungry Jacks.

ECONOMICS AND FINANCE FOR BUSINESS 3
Table of Contents
1.0. Introduction...................................................................................................................4
2.0. Market Structure..........................................................................................................5
2.1. Industry Overview.......................................................................................................5
2.2. Industry Competitiveness............................................................................................5
2.3. Market shares for different players..............................................................................6
2.4. Competitive strategies of the market...........................................................................7
3.0. Growth Strategies..........................................................................................................7
3.1. Grow/expand strategies for McDonald and Hungry Jacks..........................................8
3.2. Opportunities for growing for McDonald and Hungry Jacks......................................9
4.0. Pricing and non-pricing strategies.............................................................................10
4.1. A contrasting of the pricing strategies of McDonald and Hungry Jacks in Australia
10
4.2. Non-price strategies used by McDonald and Hungry Jacks.....................................12
5.0. Conclusion and Recommendations............................................................................14
References...............................................................................................................................16

ECONOMICS AND FINANCE FOR BUSINESS 4
1.0. Introduction
In the fast food industry, marketing information revolves around changing consumers
preferences, convenient location, food quality, pricing, targeted customers, customers' age,
market diversification, service quality, and menu selection (Solomon, 2012). With stiff
competition, companies employ different strategies to gain a competitive advantage in the
industry. Even though all the factors mentioned above, customers consider pricing and
quality as more significant factors. For example, fast food companies combine low pricing
strategies and food quality to develop value menu which cannot be afforded by a large
portion of customers. Marketing research plays an important role in the identification of the
customers' needs and wants then develop products that satisfy them (Solomon, Hughes,
Chitty, Marshall, & Stuart, 2013).
The study seeks to discuss the Australian fast food industry by explicitly analysing the
performance and strategies used by the MacDonald and Hungry Jack’s companies to retain or
expand their market share. The objective will be achieved by comparing and contrasting the
pricing and growth strategies applied by the two companies (B&T Magazine, 2018). The
research was carried out by analysing both the primary data and secondary data on the
Australian fast food industry. Primary data was located through interviewing personnel of the
Mac Donald and Hungry Jack’s stores located at town hall Sydney. Sources of data included
periodical articles, electronic sources, new papers, news release by the two companies as well
as searching through the websites of the two companies.
The study was divided into five sections. The first section is the introduction which
provides a summarised background and purpose of the report. The second section discusses
the market structure of the industry. The third section compares the growth strategies used by
MacDonald and Hungry Jack’s. The fourth section examines the pricing and non-pricing