Mm detergents

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Mm detergents

  1. 1. Rin vs. Tide: The Soapy Saga… By Soumyamoy Maitra Marketing Lecturer DB Powar College of ManagementCriticizing a rivals products is a high-risk, but increasingly popular marketing strategy. Consumers havehistorically reacted negatively to direct comparisons between competitors and tended to sympathize withthe underdog. Recent debate on the comparative advertising between Rin and Tide has focused on itsethical rather than its effectiveness dimension. The article is an attempt to highlight the importance of thephrase `compare with care.Know that the amount of criticism you receive may correlate somewhat to the amount of publicity youreceive.-- Donald RumsfeldBusiness markets are today as uncompromising and aggressive as they can be. Every brand tries to proveits superiority over the rival. 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 oflife is judged by how one can weigh up to competition and to deny competitiveness in advertising is bothduplicitous as well as impractical. Hence to outdo the competition and prove oneself as the best,marketers often resort to comparative advertisements. Theoretically, comparative advertisements are aform of little aggressive promotional strategies adopted by a company. They aim to establish competitivesupremacy by attacking the rival brand/brands directly or indirectly. The comparative claims done bydifferent advertisers are of variable nature. They may range from being explicit about the name orfeature of the competitors product or may give subtle implicit reference of the same. Comparativeadvertising thus aims to objectively and truthfully inform the consumer, and promotes markettransparency, keeping down prices and improving products by stimulating competition. However, most ofthe times, comparative advertising leads to confusion, misleads or discredit a competitor.The early years of glorified television commercials saw the attractive and appealing housewife extol thebenefits of her favorite product rather than the infamous competitors brand. The viewer would often tryto guess the real identity of the compared brand. Today, advertisers are no longer shy to highlight on airor in print their leading competitors. They celebrate the merits of their products, explaining why they arebetter than the competitors products. Globally, comparative ads have been around for decades. Themodel ads of Penn Tennis Balls from Fallon McElligot, the "Get a Mac" for Apple are some of theprominent examples of the same. The battles between brands are now growing intense in India alsowhich is evident from the most famous cola wars in the past decade to the recent Onida vs. Nokia
  2. 2. advertisement war. The latest provoking commercial from Rinclaiming to be better than Tide has openedthe doors by frontal attacks, a so-called offensive marketing strategy. The punch line in theadvertisement "Tide se kahin behtar safedi de Rin (Rin gives more whiteness than Tide)" says it all directon the face, it not just names but shows the competitive product, bringing the debate on comparativeadvertising back in spotlight.Early Show to Latest ShockThe two powerful detergent brands of HUL and P&G, Rin and Tide respectively carry a strong heritage anda rich background story.During 1990sRin was the first national detergent bar in India; however, the market saw the launch of Rin PowderWhite in the year 1994. Tide, on the other hand, paved its entry in the year 1998. The 1990s was aperiod of continuous innovations and product improvements for Rin where it tried to position the productin the minds of the customers through memorable campaigns like Uski saari, meri saari se safed kaise toSafedi ka Shehanshah. During the same period, Tide was launched as the premium detergent in themarket. The launching price of the product was Rs. 120 per kg. According to the analysts, Tide could notcatch up in the market mainly because of its launching price that acted a deterrent and the existence ofthe other brand, i.e., Ariel of Procter & Gamble that was doing quite well in the market during this period.Thus, Tide was slow on growth in the Indian market; it could not manage more than 0.3% share in thetotal detergents market in the 1990s.Expect the Unexpected: Price War BeginsJanuary 2004 saw the advent of New Rin Powder with a unique double whiteness proposition. Also, itmaintained that unlike the other detergents available in the market, the new Rin dissolved in watercompletely leaving no mud like residue behind, the product also promised enhanced fragrance. Theproduct was priced at Rs. 42 for a one kg pack. Rs. 80 for a 2 kg pack, Rs. 20 for 500 grams, Rs. 10 forthe 250 gram pack and Rs. 1 for the 25 gram sachet. This was a bold and a confident move from HUL.All these years, Tide had been pitted against Rin on the `whitening platform. Even P&G did not seem tobe too aggressive for the brand, however realizing that pricing being one reason for not being acceptedby the market, it slashed the prices and the product entered into the mid-market segment rather than thepremium segment. The price slashing exercise was seen to bring in tremendous improvement in thevolumes of sales and the market share. The price was brought down to Rs. 23 for 500 grams as againstthe previous price of Rs. 43, Rs. 50 for 750 grams as against Rs. 70 at which it was available earlier.Therefore, the market saw a slash from 20 to 50% in case of the Procter & Gamble product Tide. Thus,with these price slashes, the market observed the two armies on the battlefield, being desirous to fight.Get Off MY Planet: The Era of 2007-09Since 2007, Tide has been steadily gaining share with Rin close behind it. Tide had set the standards indelivering whiteness and cleansing benefits unmatched by other detergents. The point of difference that itsuggested was that the powder would prevent dirt molecules from setting on the clothes, thereby givingbetter cleanliness and whiteness to the clothes. An additional augmentation was the pleasant lemon flavoradded to the powder to enhance the fragrance component. This led to Rin losing out its leadershipposition in the market ground in terms of whiteness also. The year 2009 saw a substantial gap in thevalue share, where Tide was capturing 8% of the market share and Rin only had 5.1% of the marketshare.Tide Naturals enters the Market - December 2009
  3. 3. The cold war of the two brands turned into an aggressive war when P&G came out with a new productcalled Tide Naturals. Tide Naturals was an attempt by the organization to enter into the mid-marketsegment, which the parent product, Tide was not catering to, and at the same time, to give the benefit ofline extension to Tide Naturals. The notable fact was that Tide Naturals was priced lower than Rin. Therewas an approximate difference of Rs. 20 in the prices for a one kilo gram pack. The reason behind thisstrategy of P&G was to cater to the rural markets. This move from P&G posed an immediate threat toHUL. Rin faced a share fall of 2.5% in December 2009 so the only available option was to react by cuttingthe prices. The price was cut down by 30% to Rs. 50.The Year 2010 - Attaining the SupremeFebruary 25, 2010HUL challenged the Tide Naturals claim in the Madras High Court. Hindustan Unileverchallenged P&G in the court that Tide Naturals did not contain lemon and chandan and convinced thecourt that P&G should drop the word `Naturals from the name and merely displaying a disclaimer"It doesnot contain lemon and chandan" was not enough. The advertisement was considered to mislead thecustomers at large as it promoted Tide Naturals as a natural detergent, whereas it was actually asynthetic detergent. P&G admitted in the court that Tide Natural used only the fragrance of lemon andchandan. Thus, P&G was instructed by the court to clarify to the customers the fact that its product didnot contain the ingredients as claimed by it. Finally, on February 26, 2010the Indian market saw the verybold comparative advertising on the television screens that took comparative advertising to new heightsin the Indian history.Legal Nuts and BoltsAlyque Padamsee, the famous ad filmmaker once said, "Bad publicity is better than no publicity." Soundsso true. No doubt from marketing angle, deliberate or not, its an extended publicity to both the brands,Rin and Tide. Yet the main controversial issue is whether HULs explicit TV commercial of Rin beingsuperior to P&Gs Tide amounts to denigration or is a permitted form of free speech protected under`commercial speech as part of freedom of speech under Article 19(1)(a) of the Constitution. If we look atthe advertisement very carefully, there are few areas of concern. First is that the advertisement clearlyshows the packet of Tide Naturals, the premium brand of P&G, whereas the voiceover mentions only Tide.Now does this amount to misleading claims as per Indian Law?Second issue is that at the end of the advertisement, a line is displayed stating that "this claim is basedon laboratory tests done through globally accepted protocols in independent third-party laboratories andschematic representation of superior whiteness is based on Whiteness Index test of Rin vs. Tide Naturalsas tested by Independent lab." The challenge is whether the statement(s) can be substantiated by way ofevidence.Though P&G has sought a legal remedy, HUL definitely has gained on its strategic move of launching thecommercial over the long colorful Holi and enjoying the splash of attention. HUL has subsequentlychallenged Tides claim in the Chennai High Court. On March 1, the court asked P&G to modify the adsince they were not really able to substantiate the claim. A written judgment is still awaited on thismatter. If the case does wind up in litigation, it would be rather interesting to watch how Indian courtsreact to this form of advertising.Janta ki AdalatDebates and endless discussions over different advertisement strategies have become a commonphenomenon of the day; however when an advertisement can generate a responsewhich may either benegative or positive, surprising or shocking or is capable of evoking any other emotion among themasses, the advertisers job is done. Similar was the response to the famous Rin-Tide controversy that
  4. 4. was seen by the viewers all over the country on February 26, 2010 which generated huge buzz in themarket.Two Sides of the Same CoinThe advertisement saw mixed reflections from the customers across the media. While one set ofcustomers saw this move of HUL as an unethical practice, the others took it as awareness and educativestep from HUL.Heads - Chunk GayeThe first set of people is of those who were shocked to see the advertisement for the first time. Thesurprising element of the ad was the appearance of two different brands in the same ad.The very first response generated by the advertisement was both the products are from the samecompany otherwise this kind of advertisement is not possible. According to the supporters of this view, itwas an unnecessary move from HUL to prove its superiority, primarily because, out of the 30 seconds ad,the first 22 seconds are solely devoted to Tide which means more than 75% of the expenditure on the adwas spent on your competitors product. This would only lead to sympathies of customers to tied to thecompetitors product. The advertisement was also viewed illegal, because the ad voice says "Rin is betterthan Tide" whereas the visual shows Tide Naturals, which means defaming a brand over which you do nothave superiority.Also, the advertisement was considered unethical because it deliberately took the advantage of the breakin the court due to a long weekend. HUL was well-equipped with the fact that the courts decision wouldtake at least three days to be announced and hence it continuously showed the ad during the period so asto do maximum damage to the competitors product.Hence, the customers supporting the Heads side of the coin did not see it as a long-term objective andrather considered it bad on part of global player like HUL to adopt this kind of competitive strategy whichconveys how desperate the company was to increase sales and in the process lose out on the brandequity and respect. Last but not the least, now that Rin has publicly declared Tide as its competitor themarket would see more aggressive responses from P&G.Tails - Bold and BrashThe other set had a view that was opposite of the first one. The blogs were flooded with comments withsupporters of the tails side. The tails side believed that HUL by no means did cross the lane, and did notconsider the advertisement illegal. They were of the opinion that rather than misleading, it was aneducative step from HUL to educate customers. Tide is giving the impression to the customers that theproduct is available to them at a lower price while what actually is available to the customers is the otherversion of the Tide which is Tide Naturals. The lady in the advertisement portrays that she is getting Tideat a very low price, which is not factually true. All that HUL attempts to do is to educate customers that itis not Tide but Tide Naturals that is available at lower price. And also that if the comparison has to bemade it should be between Rin and Tide, not Rin and Tide Naturals.Also as per the legal affects, HUL has played it safe with small disclaimers below and at the end of the ad,"As tested by Independent Lab" and "Issued in the interest of Rin Users". Therefore, it doesnt comeunder any disparagement.Hence, supporters of this approach view this ad as an eye opener for the customers, marketers and theother ad agencies. This is definitely seen to bring new reforms to the advertising industry. The ad hasgiven a new dimension to the marketers, a different angle of communicating to the advertising agencies
  5. 5. and a factual comparative methodology to the customers. After all at the end of the day, its thecustomers who spend money for value of the product. The responses from this category of Indiancustomers shows that the Indian customers are now modern and educated enough to understand andappreciate the concept of comparative advertising.Experts Opinions: Lets see what Marketers and Ad Makers have to sayThe opinions of marketers differ from each other. Harish Bijoor, CEO, Harish Bijoor Consults feel that allthis is being done by HUL just to create an unnecessary noise in the market. According to him, thechances that Rin being able to prove the facts are very less. On these lines, Prahlad Kakkar, MD, GenesisFilm Productions also feels that what Rin is actually indulging into is comparing the product with thevariant of tide.ConclusionThe rule of caveat emptor wonderfully fits into todays marketing environment. Advertisements, morespecifically comparative advertisements are the brainchild of our creative advertisers. Theseadvertisements are just the tools in the hands of people who are designing them, so any complaints orcriticisms need to be addressed to and against their makers and not against the tools (comparativeadvertisements). Marketers and advertisers must remember that its easy to look at a competitor and findgaps in his product or services. Its harder, but definitely more valuable, to fill these gaps in ones ownoffering and build real competitive advantages with which you can offer delight to the customer ratherthan just satisfying them.Brand Update : Rin Vs Tide , The StrategyAccording to latest news report, the Calcutta High Court has restrained HUL from airingthe controversial campaign against Tide. HUL has been given 72 hours to comply withthe order (Source)The high decibel comparative ad of Rin generated huge buzz in the market. The directcomparative campaign evoked mixed reaction across the media. That singlecontroversial ad generated crores worth of buzz about the brands in question.The current high profile aggressive stand of Rin has a background story. There was aproxy war going on between Rin and Tide since December 2009. During December,P&G launched the low priced variant of Tide branded Tide Naturals. Tide Naturals was
  6. 6. priced significantly lower to the Rin. Tide Naturals was launched at Rs 50 per Kg , Rs 10for 200 gms and Rs 20 for400 gms. Rin was priced at Rs 70 per Kg at that time.The reduced price of the Tide variant was an immediate threat to Rin. Since Tide alreadyhas an established brand equity, Rin was bound to face the heat. Although HUL hadanother low priced brand Wheel priced at Rs 32/Kg, Tide was not in the same categoryof Wheel.Rin had to cut the price to resist the market share erosion. As discussed elsewhere in theblog, HUL was facing a steady erosion in the market share in most of the categories. Inthe detergent category itself, the brand faced a market share fall of 2.5% in December2009. With P&G starting a price war, HUL had to react and it did by cutting the price ofRin by 30% to Rs 50 per Kg. (Source ) .HUL also reacted to the Tide Naturals price war in a Guerrilla Marketing way. It tookP&G to the court regarding the Tide Naturals advertisement. The contention was thatTide Naturals was giving the impression to the consumers that it contained naturalingredients like Sandal. The court ordered P&G to modify the campaign and P&G had toadmit that Tide Naturals did not contain any Natural ingredients. ( another example of abrand swaying over to unethical marketing practices).While P&G opened a war in the price front, HUL retaliated by opening two war fronts.One was the direct comparative ad and other through the court order asking P&G tomodify Tide Naturals Ad and to admit that Tide Naturals is not Natural.I think that it was Rin which won the Round 1 of this war. It generated enough Buzzabout the brand with all the media talking about the campaign. Rin was also able toneutralize the aggression of P&G to certain extent.Tide chose not to respond because further fuel to the fight can highlight the fact thatTide Naturals does not contain any Natural Ingredients " which may negatively affectthe brands standing in the consumers mind. So it is better to play the role of a " poor"victim at this point of time.P&G can celebrate because of the free advertisement it got for Tide Naturals because ofthe comparative ad of Rin.
  7. 7. It is interesting to see the academic angle of this concept called Comparative advertising.From my little digging of information, it was evident that the academic research is alsoclueless about the effectiveness of comparative advertising. There are enough evidenceto prove that comparative ads work better than non-comparative ads and vice versa. Soacademicians are as clueless as the practitioners in this regard.According to academic literature, Comparative ads are those ads which involves directlyor indirectly naming competitors in an ad and comparing one or more attributes in anadvertising medium (Alan T. Shao, Yeqing Bao, and Elizabeth Gray,ComparativeAdvertising Effectiveness:A Cross-Cultural Study Journal of Current Issues andResearch in Advertising, Fall 2004)There are two broad types of comparative ads. One is the Direct comparative ads whichcompares the competitor in more than one attribute. The second type is the Indirectcomparative ad which projects the brand as the Leading Brand rather than comparingon certain attributes.In the marketing world ( globally) comparative ads are commonly used acrosscategories. Some of the relevant observations regarding comparative ads are givenbelow. Comparative ads are perceived to be beneficial to the consumers since more information is provided to him by the competitors. Comparative ads are encouraged in certain markets like USA by the regulators because it increases transparency and provides more information to consumers. The comparative ads generally result in counter arguments which often creates such a noise that it discounts the original argument/information. Consumers tend to discount the claims by both the competing brand because of the arguments. Comparative advertising strategy is more effective for smaller brands rather than established large brands. By challenging a larger brand through comparative ad , the small brands tend to derive more acceptance and awareness than the larger brand.
  8. 8. Comparative ads are found to be more effective for categories where consumers tend to use their analytical mind. Comparative ads tend to fail where consumers use imagery while evaluating the brands. For example, products like automobiles use comparative ads extensively and with effectiveness. There are also studies which shows that male consumers are more attracted towards comparative ads compared to female consumers.Although Indian marketing world have seen lot of comparative ads, the current Rin VsTide is a rare case of direct comparative ad where the brand has taken the competitorbrands name and challenging it head on. That is the main reason behind the medianoise about the campaign.P&G India always was a laid back competitor in the FMCG market . Despite having theproduct portfolio and market strength , it never realized its potential. The company washappy with their minuscule market share in the various categories in the FMCGbusiness . I am not sure whether P&G will react aggressively to the current HULonslaught and if at all they did ,will it sustain the fight for long.

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