Having been asked by my students what I thought on the new advertisement released by HUL (Rin), I finally decided to check it out. You can’t hide behind an “I have no TV” excuse for very long! If you haven’t seen the ad you can watch it here.
What makes this ad different from others is that this is the first time a competing brand has been openly named in an advertisement. This is being billed as breaking new ground in India’s advertising scene. One thing is clear: this ad is definitely succeeding in creating buzz by becoming so talked about! Whether this is good or bad for the brand …..only time will tell. Will it be able to increase the sales of RIN is what will decide whether further adverts like these are made in India.
In the USA comparative advertising seems to be pretty commonplace. However this poll seems to suggest that most Indians (75%) thought it wasn’t appropriate to name your competition. Could this aversion be a typical Indian cultural phenomenon- we tend to pride ourselves on being non-confrontational? Could this approach end up backfiring on the brand?
Here are some further articles and videos to give you a better perspective on the issue. I am sure that these will make for some very interesting reading.
Some points to ponder for business students are:
Could this be a case of dubious marketing ethics or misleading advertising? The Calcutta High Court has already ordered a stay on the advertisement. Can these claims be substantiated by the company? How do you prove “Behtar safedi”?
How do consumers test brand claims? Do they read the fine print?
Why did Tide launch Tide Naturals? (Read the articles and listen to the storyboard segment before answering)
Who is benefited and who gets hurt in a price war?
Why do companies enter into price wars?
What are the other options before a company other than entering into a price war?
Can you give one other prominent example in the recent past where competitors entered into a price war?
What is the effect of a price war on the brand of a company?
Some thoughts for students of economics:
Is this an example of advertising being a waste of scarce resources which could have been put to better use?
Would you characterize this market as an oligopoly or monopolistic competition?
Would we all be better off if we bought unbranded detergents in a perfectively competitive market?
The Narrative Mood 
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