Sneaky King - You Got To Have Cojones To Be King

This advertisement demonstrates the importance of truly understanding your audience. Burger King’s typical customer is not looking for a gourmet dining experience when they are rushing out for a quick bite to eat in the morning. They are rather looking for a familiar and easy (i.e. low risk) option.

McDonald’s has already done all the legwork and spent millions (if not billions) of dollars building out the brand equity of the McMuffin breakfast sandwich. Burger King very wisely sneaks in and piggybacks off the existing brand equity of the McMuffin and differentiates itself as the lowest price option.

Now at face value this will cost Burger King a good chunk of revenue, but in the long run it will save them boat loads of money by branding themselves as just like the McMuffin, but cheaper in the minds of the consumers. I am sure eventually they will raise their prices, but not till they hit a critical mass of breakfast sandwich sold.