Burger King wants its health-conscious customers to feel less guilty when gobbling up its French fries. As a result, Burger King has released a new product, the “Satisfries,” featuring at offering 40% less fattened 30% fewer calories than the McDonald’s fries. While Burger King is extracting fats out of its fries, the stock has generated fat returns. The shares are increased for 18% so far in 2013, outpacing the 7% gain for fast-food colossus McDonald’s, according to the forth quadrant report.
Miami-based Burger King runs the second-largest fast food chain stores with locations in 80 countries, right after the King of fast food chain, McDonald’s. As the competition among fast food restaurants grows fierce, According to the article “Brand Positioning” by Ries and Trout, a company that pretends that the market leader does not exist is likely to fall. By acknowledging and linking itself to the No.1 Company, McDonald’s, yet emphasize its difference – the healthier fries, customers can more easily relate Burger King to McDonald’s. Therefore, a “substitution effect” is created, in that customers who favor healthy fries will choose to purchase “Satisfries.”
Burger King’s Promotion of “Satisfries”: