Description
It explains them with the help of examples like HUL's Rin vs P&G's tide, GSK's horlicks and Heinz Complan.
Competitive Advertising
Creating Controversy To Get Maximum Eyeballs
Presentation By : Ankit Verma Veeresh Kumar Jaiswal
Contents
• • • • • • • • • • Introduction Reasons behind such advertising gimmicks Downsides Effectiveness Experts? comments Cola war HUL?s Rin vs. P&G?s Tide GSK?s Horlicks vs. Heinz?s Complan Other examples References
Debating over it in hallways is one thing; but when one overhears strangers in a public place bonding over a discussion on 'that ad on TV last night' and 'how shocking it was', one knows that the advertising has done its job…
• • • •
Coke and Pepsi Jet Airways, Kingfisher and Go Air Audi, BMW and Subaru HUL and P&G
What do you think is common between them other than them being companies from the same industry?
All of them have at some point or the other engaged in what we call today as -
COMPETITIVE ADVERTISING
• A commonly used type of advertising that communicates the unique benefits of a product, differentiating it from the competition
• In management jargon, it is about how well one positions a product based on the competitive advantage of it. • But today it is becoming more of a sabotage or hijack against other brands
Reasons behind Such Advertising Gimmicks
• Generate attention and attract the largest number of viewers • The challenger mentality in any brand • A brand may sometimes make certain claims about how they are better than their competitors which may be bizarre according to another brand and it may jump into the fray to counter them • A creative way to show that the competitor?s claims are nonsense. E.g. : Pepsi?s statement – Nothing official about it!
Downsides To This Form Of Advertising
• Many a time as in the case of Dove and Pantene, competitive advertising leads to a situation wherein the brands start talking to each other rather than the audience
People didn?t understand the concept of the “mystery shampoo” and “being number 1”
• Rather than outshout the competition, consumerdriven insights can lead the brand to creative and smart advertising strategies
Good advertising is about fighting smarter, not fighting harder
Effectiveness
• Competitive advertising is advocated as an effective method of communicating benefits of new brands • Although practitioners have shown increased interest in using competitive advertising • Depends on consumers? perceived differentiation among the brands and level of involvement with the specific product category • Consumers today need “instant, ready-toconsume” information on products and services.
Effectiveness
• Competitive advertising helps them make informed choices. • This, of course, assumes that competitive advertising does not misrepresent the facts. • It is most effective in markets and categories that are “price-sensitive” • Also, where “a benefit/attitudinal upper hand by brand” is the key to winning consumer votes in a crowded “me too” category
Experts Say :
• It?s easy to look at a competitor and poke holes in his product or services. It?s harder, but definitely more valuable, to plug the holes in one?s own offering and build real competitive advantages with which you can impress your customer - Lynn De Souza, Lintas Media Group
Examples :
• GlaxoSmithKline Consumer Healthcare India Ltd and Heinz India Pvt. Ltd : Brought out comparative ads in print and television claiming that their energy drinks Horlicks and Complan, respectively had more nutritional content even as they took potshots at their competitor
Examples :
• Cola Wars : We have all experienced it time and again. Both beverage giants (Coca Cola, Pepsi) have at times gone overboard with their ad campaigns directly/indirectly defacing the competitive brand • Hindustan Unilever Limited and Procter & Gamble : The ad shows two mothers waiting at a bus stop for their children, who are returning from school. They spot each other's shopping baskets - one woman's basket sports a packet of Rin, while the other has purchased Tide Naturals
15
Examples :
• Procter & Gamble and HUL : Pantene mystery shampoo campaign challenged by HUL?s Dove. • Onida was positioned against the giants in the TV industry with the message that all other were clones and Onida was the leader
Examples :
• Jet Airways vs. Kingfisher Airlines vs. Go Air
Examples :
• Audi vs. BMW vs. Subaru
But the bigger question here is :
Does Competitive Advertising help in building Brands?
HUL’s Rin vs. P&G’s Tide
• Tide logo was shown in bad light in the Rin advertisement. • But it is hard to believe that they overlooked it or their product was actually proven superior to Tide as claimed. • Even if it was, why put “Independent Lab Tests” • So, why HUL would have probably taken a bold move like this?? Rin?s market share at 4.8 per cent was almost half in size to that of Tide, which stood at 8.8 per cent ( till last month) • Well, if you can?t beat them, at least defame them seems to be the mantra
GSK’s Horlicks vs. Heinz’s Complan
• The health drink from GSK (GlaxoSmithKline), Horlicks, has been traditionally targeted at elders and positioned as a „great family nourisher? • However, about five years ago, the communication was changed to „pleasurable family nourisher? with the introduction of different flavors. • While Horlicks introduced a series of variants aimed at the family segment and promoted its products well, Complan lay low on the promotional front, with its ads just focusing on the "extra growth" attribute
Source : http://admark.wordpress.com/
Continued…
• Horlicks market share in 2008 was about 60% and Complan?s is about 15 % in India • According to analysts, the latest round in the health drink war was initiated by the makers of Horlicks; the makers of Complan retaliated
Source : http://www.icmrindia.org/casestudies/catalogue/marketing/
Examples
• • • • • • Pepsi vs. Coke Pantene vs. Dove Captain Cook vs. Tata Salt Colgate vs. Pepsodent Dish TV vs. Sun Direct Onida phones vs. Nokia
Effect on Consumers
• Researches on effectiveness of competitive advertising so far show mixed results • Demirdjian(1983), Earl and Pride(1980) and Tannenbaum(1976) showed that this form of advertising is often effective • Under advertising theories, consumers first gain Awareness and then Interest in a product • It is done when the consumer is already aware about the product category • When these types of ads are repeatedly shown to the consumers, they remember recently seen ads while purchasing and willing to buy one or a few units of the product
Effect on Consumers
• Sometimes, these advertisements leave such a strong impression on consumers mind that they start feeling happy and proud after buying and owning that particular brand • But, when consumer is very loyal and brand specific, comparative advertisements are not perceived as providing an accurate perception of external reality • Donthu(1992) posited that comparative intensity of a competitive advertisement should be taken into consideration • He found that consumer attitudes increase as the comparative intensity increases, but, begin to drop as intensity increases further after a particular level
Effect on Consumers
• Most of the past researches are based on the assumption that the consumer is a rational decision maker • However, in reality, rationality is bounded • Most consumers do not bother to process the information in advertisements in depth • The effectiveness of competitive advertising can be evaluated on the cognitive, affective and conative dimensions • With respect to cognitive effects, these ads can generate more attention and enhance advertising & brand awareness
Effect on Consumers
• However message believability and source credibility are lower for competitive than non-competitive ads • With respect to affective effects, competitive advertising can elicit more negative attitude toward the ad but more favorable attitude toward the brand • With respect to conative effects, competitive advertising can increase both purchase intention and purchase behavior
References
• Angshu on November 5, 2009 in Featured, Marketing, Strategy, http://tnmg4u.com/2009/11/how-to-do-competitiveadvertising.html • bhatnaturally on October 8, 2008, http://www.lbhat.com/advertising • Rajesh Menghnani on Monday, September 15th, 2008, http://www.millionface.com/l/what-competetive-advertisingcan-do/ • http://www.icmrindia.org/casestudies/catalogue/marketing/ • http://admark.wordpress.com • http://www.livemint.com/2009/02/02205620/do-comparativeads-help-the-br.html/
Thank You
doc_907169381.pptx
It explains them with the help of examples like HUL's Rin vs P&G's tide, GSK's horlicks and Heinz Complan.
Competitive Advertising
Creating Controversy To Get Maximum Eyeballs
Presentation By : Ankit Verma Veeresh Kumar Jaiswal
Contents
• • • • • • • • • • Introduction Reasons behind such advertising gimmicks Downsides Effectiveness Experts? comments Cola war HUL?s Rin vs. P&G?s Tide GSK?s Horlicks vs. Heinz?s Complan Other examples References
Debating over it in hallways is one thing; but when one overhears strangers in a public place bonding over a discussion on 'that ad on TV last night' and 'how shocking it was', one knows that the advertising has done its job…
• • • •
Coke and Pepsi Jet Airways, Kingfisher and Go Air Audi, BMW and Subaru HUL and P&G
What do you think is common between them other than them being companies from the same industry?
All of them have at some point or the other engaged in what we call today as -
COMPETITIVE ADVERTISING
• A commonly used type of advertising that communicates the unique benefits of a product, differentiating it from the competition
• In management jargon, it is about how well one positions a product based on the competitive advantage of it. • But today it is becoming more of a sabotage or hijack against other brands
Reasons behind Such Advertising Gimmicks
• Generate attention and attract the largest number of viewers • The challenger mentality in any brand • A brand may sometimes make certain claims about how they are better than their competitors which may be bizarre according to another brand and it may jump into the fray to counter them • A creative way to show that the competitor?s claims are nonsense. E.g. : Pepsi?s statement – Nothing official about it!
Downsides To This Form Of Advertising
• Many a time as in the case of Dove and Pantene, competitive advertising leads to a situation wherein the brands start talking to each other rather than the audience
People didn?t understand the concept of the “mystery shampoo” and “being number 1”
• Rather than outshout the competition, consumerdriven insights can lead the brand to creative and smart advertising strategies
Good advertising is about fighting smarter, not fighting harder
Effectiveness
• Competitive advertising is advocated as an effective method of communicating benefits of new brands • Although practitioners have shown increased interest in using competitive advertising • Depends on consumers? perceived differentiation among the brands and level of involvement with the specific product category • Consumers today need “instant, ready-toconsume” information on products and services.
Effectiveness
• Competitive advertising helps them make informed choices. • This, of course, assumes that competitive advertising does not misrepresent the facts. • It is most effective in markets and categories that are “price-sensitive” • Also, where “a benefit/attitudinal upper hand by brand” is the key to winning consumer votes in a crowded “me too” category
Experts Say :
• It?s easy to look at a competitor and poke holes in his product or services. It?s harder, but definitely more valuable, to plug the holes in one?s own offering and build real competitive advantages with which you can impress your customer - Lynn De Souza, Lintas Media Group
Examples :
• GlaxoSmithKline Consumer Healthcare India Ltd and Heinz India Pvt. Ltd : Brought out comparative ads in print and television claiming that their energy drinks Horlicks and Complan, respectively had more nutritional content even as they took potshots at their competitor
Examples :
• Cola Wars : We have all experienced it time and again. Both beverage giants (Coca Cola, Pepsi) have at times gone overboard with their ad campaigns directly/indirectly defacing the competitive brand • Hindustan Unilever Limited and Procter & Gamble : The ad shows two mothers waiting at a bus stop for their children, who are returning from school. They spot each other's shopping baskets - one woman's basket sports a packet of Rin, while the other has purchased Tide Naturals
15
Examples :
• Procter & Gamble and HUL : Pantene mystery shampoo campaign challenged by HUL?s Dove. • Onida was positioned against the giants in the TV industry with the message that all other were clones and Onida was the leader
Examples :
• Jet Airways vs. Kingfisher Airlines vs. Go Air
Examples :
• Audi vs. BMW vs. Subaru
But the bigger question here is :
Does Competitive Advertising help in building Brands?
HUL’s Rin vs. P&G’s Tide
• Tide logo was shown in bad light in the Rin advertisement. • But it is hard to believe that they overlooked it or their product was actually proven superior to Tide as claimed. • Even if it was, why put “Independent Lab Tests” • So, why HUL would have probably taken a bold move like this?? Rin?s market share at 4.8 per cent was almost half in size to that of Tide, which stood at 8.8 per cent ( till last month) • Well, if you can?t beat them, at least defame them seems to be the mantra
GSK’s Horlicks vs. Heinz’s Complan
• The health drink from GSK (GlaxoSmithKline), Horlicks, has been traditionally targeted at elders and positioned as a „great family nourisher? • However, about five years ago, the communication was changed to „pleasurable family nourisher? with the introduction of different flavors. • While Horlicks introduced a series of variants aimed at the family segment and promoted its products well, Complan lay low on the promotional front, with its ads just focusing on the "extra growth" attribute
Source : http://admark.wordpress.com/
Continued…
• Horlicks market share in 2008 was about 60% and Complan?s is about 15 % in India • According to analysts, the latest round in the health drink war was initiated by the makers of Horlicks; the makers of Complan retaliated
Source : http://www.icmrindia.org/casestudies/catalogue/marketing/
Examples
• • • • • • Pepsi vs. Coke Pantene vs. Dove Captain Cook vs. Tata Salt Colgate vs. Pepsodent Dish TV vs. Sun Direct Onida phones vs. Nokia
Effect on Consumers
• Researches on effectiveness of competitive advertising so far show mixed results • Demirdjian(1983), Earl and Pride(1980) and Tannenbaum(1976) showed that this form of advertising is often effective • Under advertising theories, consumers first gain Awareness and then Interest in a product • It is done when the consumer is already aware about the product category • When these types of ads are repeatedly shown to the consumers, they remember recently seen ads while purchasing and willing to buy one or a few units of the product
Effect on Consumers
• Sometimes, these advertisements leave such a strong impression on consumers mind that they start feeling happy and proud after buying and owning that particular brand • But, when consumer is very loyal and brand specific, comparative advertisements are not perceived as providing an accurate perception of external reality • Donthu(1992) posited that comparative intensity of a competitive advertisement should be taken into consideration • He found that consumer attitudes increase as the comparative intensity increases, but, begin to drop as intensity increases further after a particular level
Effect on Consumers
• Most of the past researches are based on the assumption that the consumer is a rational decision maker • However, in reality, rationality is bounded • Most consumers do not bother to process the information in advertisements in depth • The effectiveness of competitive advertising can be evaluated on the cognitive, affective and conative dimensions • With respect to cognitive effects, these ads can generate more attention and enhance advertising & brand awareness
Effect on Consumers
• However message believability and source credibility are lower for competitive than non-competitive ads • With respect to affective effects, competitive advertising can elicit more negative attitude toward the ad but more favorable attitude toward the brand • With respect to conative effects, competitive advertising can increase both purchase intention and purchase behavior
References
• Angshu on November 5, 2009 in Featured, Marketing, Strategy, http://tnmg4u.com/2009/11/how-to-do-competitiveadvertising.html • bhatnaturally on October 8, 2008, http://www.lbhat.com/advertising • Rajesh Menghnani on Monday, September 15th, 2008, http://www.millionface.com/l/what-competetive-advertisingcan-do/ • http://www.icmrindia.org/casestudies/catalogue/marketing/ • http://admark.wordpress.com • http://www.livemint.com/2009/02/02205620/do-comparativeads-help-the-br.html/
Thank You
doc_907169381.pptx