Competitor's Marketing Strategies

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    Table of Contents

    Introduction.............................................................................................2

    Objective and Significance .....................................................................4

    Case 1: Rin vs. Tide.................................................................................... 7

    History .................................................................................................... 7

    Marketing Warfare...................................................................................7

    The Ad Campaign....................................................................................8

    Marketing Strategy..................................................................................9

    Case 2: Horlicks vs. Complan................................................................... 11

    History...................................................................................................11

    Marketing Strategy................................................................................11

    The Ad Campaign .................................................................................12

    History..................................................................................................... 15

    Case 4: BMW vs. Audi...............................................................................19

    Case 5: Pantene vs. Dove.........................................................................26

    Case 6: Jet Airways vs. Kingfisher Airlines................................................30

    Findings................................................................................................. 33

    Conclusion.............................................................................................35

    References, Bibliography and Webliography.........................................36

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    Introduction

    With growing competition there is a greater need to attract and retain consumer

    attention hence companies rely on marketing techniques that compares the products or

    services of one undertaking with those of other competitors. Its basic aim is to deliver

    superior customer value and it is designed to highlight the advantages of the goods or

    services offered by the advertiser as compared to those of a competitor. The customers

    are continiously bombarded with general information. Its difficult for a marketer to

    remain in the mind of the competitor. Marketing warfare fare drives sales by comparing

    the features or services of a brand with that of its closest competitor for a better product

    offering.

    Marketing warfare fare strategies or competitive advertising are types of

    strategies, used in business and marketing, that try to draw parallels between business

    and warfare, and then apply the principles of military strategy to marketing situations,

    with competing firms considered as analogous to sides in a military conflict, and

    market share considered as analogous to the territory which is being fought over. This

    usually takes place in a mature, low-growth market, and when real GDP growth is

    negative or low, business operates as a zero-sum game because one persons gain is

    possible only at another persons expense. Success depends on battling competitors for

    market share.

    It started with the notorious cola and detergent wars, and then led to corporate

    biggies in the consumer product space washing their dirty linen in public. Comparative

    advertising is not a new phenomenon in corporate India; it has ruffled many a feather in

    the past. Though there is no compelling evidence in support of the proposition that such

    advertisingwhere one brand makes random attacks or disparaging comments about

    its rivalshelps brands in any way, leading companies continue to indulge in such

    tactics.

    In the past decade, there have been several instances of leading brands taking to

    authorities in retaliation against what they thought was offensive advertising on the

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    part of their rivals. Leading textiles firm Raymond Ltd, for instance, found footwear

    retailer Metro Shoes Ltds new commercial in bad taste. The commercial showed a man

    wearing a suit with no shoes on, followed with a tag line that said: The Incomplete

    Man. This got Raymond upset because it was in direct conflict with its decade-old

    sloganThe Complete Man. Raymond, in an official communication to Metro

    Shoes, alleged that the advertisement is a clear evidence of mal-intent and deliberate

    denigration of the Raymond brand, with the ad being poorly executed. It asked Metro

    Shoes to either withdraw the advertisement or face legal action.

    In retaliation, Metro Shoes went to the Advertising Standard Council of India

    (ASCI), a self regulatory body of the advertising industry, asking it to settle the

    controversy. The idea was to convey that a person without shoes is incomplete. There

    is no mal-intent behind the ad because Raymonds product line is completely different

    from ours, said Sohel Kamdar, vice-president, Metro Shoes. ASCI is looking into the

    matter.

    In a similar episode, Wipro Consumer Care and Lighting and Godrej Consumer

    Products Ltd, both leading consumer products companies, filed suits against each otherin the courts alleging wrongful advertising on each others part. First, Wipro Ltd got an

    injunction from a Hyderabad court on an ad by Godrej, which claimed its soap brand

    Godrej No. 1s leadership over rivals such as Santoor soap, a Wipro brand. Wipro cried

    foul citing the ad to be unfair, unethical, incorrect and misleading. A week later,

    Godrej challenged Wipro for advertising its liquid detergent brand Wipro SafeWash,

    which claimed supremacy over Godrejs own brand Ezee. The Punjab court, where the

    company filed the case, passed an interim injunction restraining Wipro from continuing

    the controversial ad.

    Organizations engage in marketing warfare s to generate massive attention,

    engage their audiences and attract large number of eyeballs. Its main aim is to make

    certain claims that they are better than their competitors. Also its a creative way to

    show that competitors claims are invalid and rubbish.

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    Objective and Significance

    The objective of this study is to identify the marketing strategies adopted by

    leading brands during a situation of a marketing warfare. The aim was to study the

    marketing warfare and identify what and how the organization manages to grab the

    customers attention. We will read about a brief history about the brand, the reason for

    the marketing warfare taking place, the actual competitive advertisements and the

    marketing strategies used by the companies.

    On the positive side, the brand gives their customers reasons why they are better

    than the other products. They make their brand stand out from amongst the clutter.

    Dropping the name of a competitor can be a way to capitalize off of the

    accomplishments of another brand, and take it in a fresh (or at least different) direction.

    The brand lets the market know that they are part of the market.

    One negative aspect of this kind of ad campaign is that the brand is putting the

    competitors brand in the minds of the potential customers. Depending on the nature of

    the campaign, it could be looked upon as a lack of class on the companies part if they

    are insulting their competitors in the ads. This can negatively impact the business. On

    the face of it, such aggressive tactics may seem damaging for brands, specially the

    aggressors, but some marketing experts say it actually helps them get immediate

    consumer attention.

    One potential danger with competitive campaigns is that they may have an

    adverse effect upon the whole category of goods/services concerned. However, anarguably successful example of negative advertising was the long-running series of ads

    run by Apple against PCs (represented by a tired, conservative, behind the times,

    nerdy man who was contrasted with a more lively, trendy and with it Mac guy). The

    campaign worked because it was done in a light-hearted way. It was pitched against a

    product type rather than an individual manufacturer and the market was binary, (eg,

    there were just two operating systems you could choose from- Mac or PC), and so to

    the extent that the campaign succeeded in making one doubt PCs it must be to the

    benefit of Macs (eg, Apple).

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    Brand owners should avoid being seen as mean-spirited, eg, the market-leader

    picking on a plucky new entrant. On the other hand, new entrants often have the least

    to lose and the most to gain from a comparative campaign, provided it is based upon a

    genuine product innovation or superiority, and keeps its nose clean in legal/regulatory

    terms. Above all, always do plenty of market testing before proceeding with such a

    campaign to ensure that the consumer response is what you are expecting.

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    We will now look at a few cases from advertising history both Indian and international.

    India is a