Friday, April 2, 2010

Who has the stronger strategy?

Two brands. Two ads. Two completely different strategies.

The brands I'm referring to are Burger King and Sam Adams beer. Each are currently running new ads that have two opposite strategies.

The Burger King ad can be viewed here and after a semi-exhaustive internet search I cannot find the Sam Adams ad as of yet, so this description will have to do for now.

Obviously, Burger King makes no secret that they are simply copying McDonald's breakfast sandwich. Certainly a different approach to branding. (Especially for a number two brand and the leader). To survive this way, they must differentiate on price. The Burger King offering will be only $1.

However, they're holes in this approach? What if McDonald's counters with $1 sandwiches? Will they keep it at $1? And, if they raise the price, will it still be an appealing option?

On the other hand, the Boston Beer Company goes out of its way to differentiate Sam Adam's brand from major American brews. They even go as far as to advertise their market share: a "tiny" .9%.

Why would they do this? As a craft brew, they don't want to be seen as "big," even though they are rich enough to run national ads. They hope that people will perceive "small" with "better quality" It's this smart approach to product differentiation that has made Sam Adam's the leading craft beer.

Which ad do you like better? Which strategy will pay off in the long-run?

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