Its image is associated with health and nature, which are also the weaknesses of McDonald¡¦s. While McDonald¡¦s burgers have reached mature stage, Mos Burger launches unique burgers like ¡§Mos Rice Burger¡¨ and ¡§Takumi Burger¡¨ which captures lots of attention. Thus, in terms of product, McDonald¡¦s faces great challenge from Mos Burger.
Mos Burger¡¦s Pricing Startegy
The price of Mos Burger is relatively high compared with McDonald¡¦s. However, as it is in the introductory stage, people are less sensitive to price. Hong Kong people value new products and are willing to pay high price to try something new and unique. Moreover, Mos Burger has very clear relative advantage over its competitors. These all allow skimming pricing strategy to be adopted. Below is the comparative pricing of burgers from McDonald¡¦s and Mos Burger: Product ItemMcDonald¡¦s Mos Burger
Cheese BurgerHKD 7.3HKD22
Chicken BurgerHKD 8HKD20
Mos Burger¡¦s Distribution strategy
Mos Burger is currently using selective distribution strategy, which only two stores are open in large shopping malls, food courts of APM in Kwun Tong and Langham Place in Mong Kok. It aims to gain public awareness in crowded place. However, it will extensively expand its distribution throughout Hong Kong and ultimately open fifty stores in total. This will result in a more intense competition with McDonald¡¦s.
Mos Burger Promotion Strategy
Mos Burger is mainly using word-of-mouth strategy to promote its products. It did not have large-scale promotion activities like advertisement on TV or magazines. Instead, it gains public awareness by publicity, e.g. archives in the Internet.