Colgate filed a case against Pepsodent in Delhi High Court for their TV ad campaign directly comparing Pepsodent to Colgate and claiming Pepsodent has 130% better germ protection. The court ruled the ad does not denigrate Colgate's product. While Colgate argued using their brand name and claims of being better than Colgate could negatively impact their market share, the court dismissed Colgate's claims against Pepsodent.
2. A BRIEF ABOUT COLGATE:
Colgate is named after William Colgate who
started off with a small soap and candle business in
the early 19th century. Since then, it become a
popular brand name.
Colgate-Palmolive Company is an American based
Multinational Corporation. Colgate is a sub
brand of Colgate-Palmolive.
Colgate provides a range of hygiene related
products.
The name has been extensively popular for its oral
care products.
3. COLGATE PRODUCTS CAN BE
CLASSIFIED AS:
Oral Care
Household
CarePersonal Care
Deoderent,
bodywash,
gells etc…
Dishwashing liquids,
Household Cleanser’
Fabrics items etc..
Toothpaste,
mouth freshness,
Colgate Plux etc..
4. A BRIEF ABOUT PEPSODENT:
Pepsodent is another popular name in
oral care solutions since 1920.
It provides a range of toothpastes and
toothbrushes.
This brand was initially owned by
Unilever but after 2003, it is owned by
Church and Dwight of USA.
5. WHAT PROBLEMS IT FACED:
Before 1950:
Pepsodent was a very popular brand.
After 1950:
The brand received a major setback and
struggled hard to revive itself.
The company was slow to add flouride to
its formula for toothpastes, and thus
faced a tough competition with other
brands.
7. COMPARISION MADE BETWEEN THEM
1.Colgate Total.
2.Colgate Visible White.
3.Colgate Mix Fresh.
4.Colgate Herbal.
5.Colgate Cibaca
Family Protection..
6.Colgate Mixwhite.
1Pepsodent 2 in 1.
2. Pepsodent Whitening.
3.Pepsodent Center Fresh.
4.Pepsodent Germi Check
5.Complete 12 Pepsodent.
6.Pepsodent Milk Teeth
Orange
&
Pepsodent Milk Teeth
Strawberry.
8. COMPETITION AS PER PACKAGING
PRINCIPLES:
COLGATE:
Reduce the weight of
packaging.
Remove the secondary
and tertiary packaging
layers.
More use of recycled
materials.
Focus on the reusable
packages.
PEPSODENT:
Remove the
unnecessary
components of
packaging.
Focus on the optimal
size and weight.
Focus on renewable
resources
Reusability of
packaging materials.
9. The Pepsodent-Colgate ad war which started on August 11 with the
release of Pepsodent’s latest TVC that blatantly used Colgate’s name
in their ad claiming 130 per cent better protection, led Colgate to file a
case in Delhi High Court on August 13, 2013. The court stated that the
commercial does not “denigrate” the product of the competitor Colgate.
The controversial TVC that dragged the two FMCG majors to court
portrayed Pepsodent Germicheck Plus Superior Power as a
breakthrough innovation which is scientifically proven to have 130%
germ attack power benchmarked against Colgate Strong Teeth. Earlier
after the release of the TVC, when HUL was asked the reason behind
using Colgate’s name in the advertisement Atul Sinha, Category Head –
Oral Care, Hindustan Unilever Limited said, “It makes the consumers
aware in a manner that is most relevant to them and enables them to
make a more informed choice of the toothpaste they buy for their
families. We have done this as a truthful representation of our scientific
tests in a very responsible manner.”
The campaign has created a buzz for both the brands and experts feel it
will create publicity for Pepsodent as well as Colgate.
WHAT WAS THE MATTER?
10. WHAT WAS THE MATTER?
It was argued that the words
‘Pepsodent now better than
Colgate Strong Teeth’
were meant to convey that Colgate
Strong Teeth was no longer a good
product.
Also, the word ‘Attaaaack’ used
in the ad was an attack on Colgate and not on the
cavity causing germs.
Thirdly, HUL’s past record showed that it had a
history of making
false claims in respect of its products.
11. CLAIM MADE WAS:
The court first examined the law concerning comparative
advertisements:
Colgate apprehended a loss of market
share if the HUL was not restrained from
circulating these ads.
A false statement was made which is calculated to cause
financial disturbance.
Pepsodent germs-check has a market
share of 6.4%, Colgate strong teeth has a
market share of 29.4%.
12. FINAL DECISION:
The claim of Colgate on Pepsodent
for the use of their brand name to
advertise their product in Delhi High
Court on August 13,2013… end up
as the court ‘dismissed’ the claim
made by COLGATE on
PEPSODENT.