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Business News/ Industry / Advertising/  Delhi HC decision may give competitive advertising a boost
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Delhi HC decision may give competitive advertising a boost

HUL commercial does not denigrate Colgate product, comparison offers benefits to consumers, says court

The court observed that advertisements that compare the product of a trader with the product of a market leader can offer the consumer better information about the product. Photo: Bloomberg (Bloomberg)Premium
The court observed that advertisements that compare the product of a trader with the product of a market leader can offer the consumer better information about the product. Photo: Bloomberg

(Bloomberg)

Mumbai: The Delhi high court’s decision on the advertising war between ColgatePalmolive India Ltd and Hindustan Unilever Ltd (HUL)could set the tone for brands looking to take on their rivals in an increasingly competitive marketplace, say experts.

On Wednesday, the Delhi high court dismissed the injunction petition filed by Colgate against HUL’s ad for Pepsodent Germicheck toothpaste. The court declined to restrain HUL from advertising its toothpaste, saying that its commercial does not “denigrate" the product of its competitor Colgate. The advertisement in question shows two boys brushing their teeth with the competing brands, clearly on display. The ad goes on to claim that Pepsodent Germicheck has 130% germ attack power as compared to the 100% effectiveness of Colgate Strong Teeth after four hours of brushing.

The court observed that “advertisements that compare the product of a trader with the product of a market leader can offer the consumer better information about the product. They can also help to improve the overall quality of like products in the market and, in that process, the product of the market leader. Advertisements when viewed in a positive light can be seen as challenging the market leader to offer a better product at a competitive price. In the world of marketing, these are acknowledged business strategies adopted by traders having to compete in a market, dominated by one or a few players. The market leader should view this as an opportunity to offer a superior product at a competitive price."

“The Hon’ble Delhi High Court dismissed on 21 August 2013, the injunction petition filed by Colgate against the Pepsodent Germicheck Superior Power advertisement. We are pleased with the court decision," a spokesperson for HUL, said in a statement. A Colgate spokesperson said that the company had just received a copy of the judgment. “We are examining the judgment and will take appropriate action."

The decision by the court could have a direct bearing on competitive advertising in India, said experts. According to K.V. Sridhar, chief creative officer, Indian–subcontinent for advertising agency Leo Burnett, this decision will give confidence to brands to take on the market leaders provided they have a valid claim. “At the end of the day, every judgment is a double-edged sword. Some will use it, others will misuse it," he said. Aggressive competitive advertising is not new to the industry, however, it is important to ensure that brands explain how such advertising benefits the consumer, he said.

“The consumer is not interested in scientific log tables. They want to know if it means that the toothpaste will help their child brush less or protect their teeth even if they missed brushing their teeth at night."

While this may change the way competitive advertising is viewed by brands, it is hardly going to set off a flurry of aggressive campaigns, according to Kiran Khalap, co-founder Chlorophyll Brand and Communications Consultancy Pvt. Ltd. He said that even in mature markets, comparative advertising accounts for a very small percentage of the overall advertising probably owing to research that shows it may elicit a negative response.

“When the challenger does compare (itself) with the leader, the advertisement works better if it adopts the tone of a leader," he said. In the legendary advertising wars between Pepsi and Coca-Cola, Pepsi’s tone was humorous, tongue-in-cheek and confident, rather than desperate as if it were straining to prove its superiority, he said.

To be sure, consumer goods companies have started registering more complaints with regulatory bodies and courts against their rivals making counterclaims through competitive advertising. An earlier Mint report said that the Advertising Standards Council of India (ASCI) has seen a sevenfold rise in the number of complaints received in fiscal 2013 over fiscal 2012. In 2013, companies raised objections to 784 advertisements, of which 640 were upheld by ASCI.

In the recent past, Hindustan Unilever launched an advertisement for its Vim dish-wash taking potshots at Reckitt Benckiser India Ltd’s extension of its antiseptic and disinfectant brand Dettol into dish-washing with Dettol Healthy Kitchen Gel. Saffola oil maker Marico Ltd moved the Delhi high court, challenging advertisements by Adani Wilmar Ltd’s Fortune rice bran oil that claimed 100% rice bran oil was “the healthiest oil in the world". Marico later withdrew its plea.

Interestingly, the advertisement for Pepsodent was first aired on 9 August, ahead of a long weekend during which Colgate couldn’t take legal recourse.

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Published: 22 Aug 2013, 11:16 PM IST
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