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Is it ethically correct to openly criticize your competitorthrough ads?

Kiran Manral

| 17 May 2011

Way back, many decades ago, one remembers a

salt ad which took on its competitors by demonstrating its free flowing ability, while the salt

from the competitive pack (with only the brand name blurred) fell out of the pack in untidy

lumps, distinctly unpourable. That was perhaps, the first instance of competitive advertising that

this writer had seen.

Comparative advertising has always existed, and continues to exist. What makes it acceptable or

unacceptable is the manner in which it is done. In India, primarily, the competition is poked fun

of (like Sprite does) or shown as packs with the brand names blurred (in FMCG products likeHealth beverages, toothpastes, detergents, etc).

Showing your competitor in a poorer light than yourself might be the easiest way to get your

advantages across to the paying public in advertising, but doing this in a way that actually shows

the competitive packaging (even if the name is blurred out) is considered downright déclassé

within the ad community.

Having said that, one needs to remember that all advertising is intrinsically competitive, with the

purpose of advertising being to show a product in a more positive light when compared with a

competitor. This can be done without either stating or mentioning the competition or showing the

competition and comparing the brand benefits. The aim is after all, to convince the consumer to

buy a product over the competitive product by showing some advantage over the competitor‟sproduct, either in terms of price or features.

The trouble begins when competitive advertising gets into outright comparative territory, which

can be perceived as putting down the other brand. This is most often seen in price sensitive

categories, where price can be used as an advantage or in a crowded product category, where

even the slightest advantage needs to be tom tommed in order to get the consumer‟s attention,and presented in a quick, easy to digest format for the consumer to assimilate without too much

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trouble. Comparative advertising could be termed beneficial if it helps the consumer make an

informed purchase decision if it presents the right facts.

To quote Lynn de Souza, Chairman and CEO, Lintas Media Group, from an article on the

subject, “I am not a fan of competitive advertising. It reminds me of poorly done celebrity

advertising — both are symptomatic of lazy creativity and lazier strategic thinking. It takes realeffort and real study to arrive at a unique consumer insight around which to build a brand idea

and a consumer proposition.” 

Her point being it is easy to pull down a competitive product or service, but more difficult to

constantly upgrade your offering and deliver more value to the consumer, and communicate that

in the right way. According to Ambi Parameswaran, Executive Director and CEO - Mumbai of 

Draftfcb-Ulka, “There is nothing „unethical‟ about Comparative Advertising. If we say that the

purpose of advertising is to create consumer appeal by communicating brand superiorities, brand

benefits and brand features, then there is nothing wrong in doing this by comparing the brand in

question with its competitors. However it is important not to distort facts, or twist them to suit

your purpose. If you do so, you are courting disaster. One also has to remember that by naming acompetitor you are reminding the consumer about a competitor‟s brand, and that has its own

risks.”

Says Sudarshan Banerjee, EVP & Head Ignite Mudra, “If done well, works with the masses..but

mostly appears to be in bad taste.”

However, there are some brands which survive by taking potshots at each other-the cola wars are

famous in advertising. To quote Sandeep Singh Arora, EVP Marketing, cola, of Pepsico, “If 

comparative advertising fits in within that, then it makes sense. If it helps the consumer make a

choice, then it is relevant.”

Instances of Comparative Advertising 

Perhaps the earliest instances of comparative advertising in India was when Lalitaji told us that

„Surf ki kharidari mein hi samajdhari hai‟ in an oblique reference to the „sasta‟ Nirma.

Way back when Grey Worldwide was Trikaya Grey, they did an ad for HCL Photocopiers

directly naming Modi Xerox in their ads. The ad did a feature to feature comparison with the

competition, concluding specifically to the reasons why HCL was better. This ad, we are told,

upped the sales for HCL.

In more recent times, Maruti Udyog Ltd served a legal notice on arch rival Hyundai Motor India

Ltd stating that the latter had printed incorrect information about its latest car Swift in an

advertising brochure.

Rin openly showed the Tide package in a comparative ad, raising ethical hackles all around in

the advertising community. In a shock, the ad actually showed the competitive product without

bothering to blur the brand name as is the norm in comparative advertising, and had as a

disclaimer a flash and go line which said that this had been confirmed by an independent

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laboratory testing.

The claim in Rin ad is simply that of a whiter wash- „Tide se kahin behatar safedi de Rin‟ whichis rather what every detergent manufacturer does. The shock factor here is the showing of the

rival product, packaging, logo, et al. Tide went to court and got the Rin ad withdrawn.

Sometimes, comparing a rival product unfairly can result in a legal case, as did happen with

Complan versus Horlicks. The advertising and counter advertising between these two brands got

so confusing that at the end of the day it was unclear which brand had which differentiator.

In 2009, in an interesting tussle, GlaxoSmithKline Consumer Healthcare and Heinz India got

into a spat because of the comparative advertisements in print and television claiming that their

respective drinks, Horlicks and Complan had more nutrition than their competition.

Policing the Ads 

The Advertising Standards Council of India and the Advertising Agencies Association of Indiaare responsible for wielding the baton when advertisers get a little carried away with their

comparisons. Advertising Standards Council of India has its Code about comparative advertising

and this is what it says:

•  It is clear what aspects of the advertiser‟s product are being compared with what aspects of the competitor‟s product. • The subject matter of comparison is not chosen in such a way as to confer an artificial

advantage upon the advertiser or so as to suggest that a better bargain is offered than is truly the

case.

• The comparisons are factual, accurate and capable of substantiation.

• There is no likelihood of the consumer being misled as a result of the comparison, whether

about the product advertised or that with which it is compared.

• The advertisement does not unfairly denigrate attack or discredit other products, advertisers

or advertisements directly or by implication.

Consumer reactions and brand responsibility 

Do consumers like brands that pull down another brand, or do they prefer to use their own

 judgement while making a purchase decision independent of the ambush attacks and the name

calling? According to research findings, a large percentage of the audience can end up believing

the competitor‟s product is the product being promoted, if they don‟t watch the ad carefully.

Also if the comparative advertising results in law suits being filed, the negative fallout of the

advertising isn‟t worth going down that route, with the brand image being tarnished. Also brandstargeted at mothers and children, like health drinks and beverages would innately have a higher

social responsibility to be ethical and factual in the message they deliver.

The final word? While marketing is war for sure, using comparative advertising is like guerilla

warfare. It may get you the temporary eyeballs or the initial trial consumer, but at the end of the

day, it may not augur well for the brand‟s image in the minds of the consumer as that of a

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positive brand.