Unhealthy war in health drinks

Taller

Taller Stronger Sharper

Group 7Avinash KumarLalit SinghHimanshu

BhardwajPrashant DwivediPrashant YadavRahul Rana

• Sigmund Freud once said, “Humans are born

screaming for attention.” • Indeed, it is from this very basic survival instinct that

competitiveness is born. • Success at every stage of life is judged by how one

can measure up to competition.

• Hence to deny competitiveness in advertising is both

hypocritical as well as unrealistic. Advertising is, after all, merely a reflection of human behaviour.

• Comparative advertising, on the other hand, is one of the manifestations of competitive advertising

• It drives sales by comparing the features or services of a brand with that of its closest competitor

Comparitive Advertising• Observed in price sensitive markets crowded with

numerous brands

• Implicit & Explicit

• Where specific benefit of a brand is used to distinguish and differentiate the product from others

Negative perspective

Comparative advertising is, at its very best, not factual and boring, but subtle and extremely clever!

Symptomatic of lazy creativity and lazier strategic thinking.

It takes real effort and real study to arrive at a unique consumer insight around which to build a brand idea and a consumer proposition.

• The responsibility of moral policing lies with the Advertising Standards Council of India and the Advertising Agencies Association of India.

• 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.

• In the case of most competitive ad battles, It is mostly forgotten who starts and who ends the fight. People forget who was advertising what, both get associated with both.

• I simply don’t understand why one would want to advertise for a competitor because even by calling out his bad points, you end up doing him a favour by the mere act of calling attention to his name.

• GlaxoSmithKline Consumer Healthcare India Ltd• Heinz India Pvt. Ltd

Recently brought out comparative ads in print and television claiming that their energy drinks—Horlicks and Complan, respectively—had more nutritional content and can provide an added value

GlaxoSmithkline (GSK)• Leader in Indian Health Drink Market.

• Four brands - Horlicks, Boost, Viva and Maltova

• According to retail audit unit ORG Marg, • GSK with four brands in the category has a 75

percent volume market share (Press Trust of India)

• Competition: Complan, GluconD, Bournvita are other popular brands.

.

GSK- Horlicks

• In India, over 2 billion cups of Horlicks are drunk every year.

• Horlicks is the only drink clinically proven in India to make kids ‘taller, stronger and sharper’.

• The Horlicks available has been scientifically developed and specifically caters to the nutritional needs of the Indian diet.

• Horlicks alone enjoys 50% of the Health Food Drinks market.

• Horlicks has been a popular brand in India since 1930.

• Re-launched in 2003; included a new look for the brand targeting its core consumer, children up to 14 years old.

• Traditionally positioned as "The Great Family Nourisher.“

• New products have been developed specifically for India, catering different segments of the Indian market.

HEINZ- Complan

• In 1994, Heinz brought out complan from Glaxo. Given Heinz’s commitment to quality & leadership, complan has evolved into India’s premium health beverages for growing children. It has now come to stand for the Gold standard of Nutrition.

• The brand’s positioning as the drink for growing children coupled with its superior nutritional formulation as its greatest strength today.

• Complan is current consumer base runs into hundreds of 1000’s of households across the country. Apart from India, complan is also available in the U.K, Australia, Nepal, and Venezuela & Srilanka.

Battle started

• Horlicks has been pitted against Complan in the war of advertising

• Complan had resorted to a similar tactic and came out with an ad in the form of a talk show (remember the ‘I’m a Complan boy’ ad?), which proved how Complan is better than brand H

• once the commercial garnered enough controversy and publicity, it aired the commercial with requisite changes

• Horlicks boldly compares itself with Complan (which

surprisingly has not been blurred in the frame) and claims that although both the drinks contain 23 nutrients, yet Horlicks makes a child taller, stronger & sharper (as opposed to Complan’s claim that it only makes a child taller).

• The commercial further goes on to compare the price of both the products and states that while Complan is worth Rs.174, Horlicks is cheaply priced at Rs.128.

Moving to court

• Makers of Horlicks and Complan have gone to court. Heinz moved the Bombay High Court while GSK approached the Delhi High Court.

• These were tactical ads aimed at gaining market share at the expense of competitors, claim industry observers.

Take of ASCI• Advertisements must be truthful• The source and date of the research must be mentioned

in case of claims on research bases• No reference - person, firm or institution, without

permission• No advertisement shall be permitted to contain any

claim so exaggerated..

Obvious untruths or exaggerations intended to amuse or to catch the eye of the consumer are permissible. Provided that they are clearly to be seen as humorous or hyperbolic and not likely to be understood as making literal or misleading claims for the advertised product....

Is the Advertising Standards Council of India (ASCI) still effective when it comes

to comparative ads?

• For companies the main consideration behind going

on the litigation route is that there is a good chance that the Courts may see fit to grant an interim relief by way of staying the broadcast/publication of the offending advertisement till the matter is disposed of by the latter. In contrast a ruling by a professional body such as the ASCI takes almost 45 days

• However, ASCI does have a provision for comparative

ads.

• “Comparative ads are permitted under ASCI.'' However, the content of these ads on whether it is actually demoralising its competitor's brand is not something the ASCI can necessarily control and does not even come under the purview of the media buying and selling agencies.

Mr Dorab Sopariwala, former ASCI Chairman,

“Companies tend to go to Court only when they want an immediate stopping of the competitor's advertisement. A court can give an injunction to stop the advertisement dead in its tracks. ASCI has to give a hearing to the party complained against and the case is then put up before the Consumer Complaints Council. Thus, it often means that the decision is given about six weeks after the complaint is lodged. However, it is very infrequently (probably once every year) that an ASCI member goes to Court.'”

Mr Dorab Sopariwala, former ASCI Chairman,

“Companies tend to go to Court only when they want an immediate stopping of the competitor's advertisement. A court can give an injunction to stop the advertisement dead in its tracks. ASCI has to give a hearing to the party complained against and the case is then put up before the Consumer Complaints Council. Thus, it often means that the decision is given about six weeks after the complaint is lodged. However, it is very infrequently (probably once every year) that an ASCI member goes to Court.'”

Conclusion

• Complan and Horlicks are both well-loved brands;

• Most of the experts believe neither of them needed to stoop this low. Both brands already have a strong connect with consumers of all ages and are “heritage” brands.

• Likeability scores for either of them have not gone up. Recall may have but it’s important to be recalled for the right values.