Every business plan includes a competitive analysis. When evaluating competitors, companies may identify their competitors, name their products and services, determine market share, and analyze the promotion mix.
It seems that Taco Bell compared its breakfast products with those of its largest competitor, McDonald’s. Popular breakfast items offered by McDonald’s include the Egg McMuffin, biscuits, pancakes, oatmeal, and the option to substitute egg whites in breakfast sandwiches. Taco Bell offers the A.M. Crunchwrap (burrito), Cinnabon Delights, a grilled taco, and the waffle taco.
“We’re just getting started with breakfast,” said Chris Brandt, Taco Bell’s chief marketing officer. “The overarching strategy here is to break up the routine. We saw out there a sea of sameness in terms of breakfast. We think we have some truly unique items. … We feel like we offer a great alternative for people to try something new.”
Taco Bell has developed two ads to directly compete with McDonald’s. In the first ad, several men named Ronald McDonald say that they prefer breakfast at Taco Bell. In response, McDonald’s tweeted an image of its clown, Ronald McDonald, petting a Chihuahua with the comment, “Imitation is the sincerest form of flattery.” (The Chihuahua is Taco Bell’s retired mascot.)
The second ad, below, is set to the tune Old McDonald Had a Farm and shows a man stuck in the past eating Egg McMuffins. But, after eating Taco Bell’s breakfast, he trims his hair (mullet style), changes to tighter pants, gets a smartphone, and takes down his poster. In response, McDonald’s tweeted that Mayor McCheese had declared that Ronald prefers McDonald’s.
Do you think of Taco Bell as a place to get breakfast?
What are the risks for Taco Bell directly attacking McDonald's?
What do you think about the Twitter responses from McDonald's?