Complan Vs Horlicks: Comparative Advertising and the Question of Ethics
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Abstract:
This case is about the advertising war between two popular
health drink brands Horlicks and Complan in India. The war for supremacy between
these two brands started as early as in 1960s and had continued ever since. Over
the years, the brands were involved in aggressive comparative advertising in
print and television over attributes such as ingredients, protein content,
growth, and flavors. However, in late 2008, the makers of Horlicks,
GlaxoSmithKline Consumer Healthcare (GSK), and the makers of Complan, Heinz
India (Heinz), came out with advertisements that directly compared the brands
using the competitor brand's trademarks. Industry observers felt that in their
bid to outdo each other, the two companies had ended up denigrating the
competitor brand.
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Usually issues related to disparaging ads by
rival companies were resolved by the Advertising Standards
Council of India (ASCI). But with constant mudslinging at each
other, the two companies decided to solve the issue in courts.
In September 2008, Heinz moved the Bombay High Court objecting
to the Horlicks ad , while in December 2008, GSK approached the
Delhi High Court against the Complan ad.
Experts felt that the latest tiff between GSK and Heinz had
brought to the fore the issues and challenges involved in
comparative advertising and the legal/ethical issues involved in
such kind of advertising.
Issues:
» Analyze the advertising strategies adopted by Complan and Horlicks over the
years.
» Understand the issues and challenges faced by companies while using
comparative advertising.
» Examine the efficacy of comparative advertising in enhancing brand image and
sales.
» Study the implications of the advertising war between Complan and Horlicks.
» Discuss and debate the legal/ethical issues involved in the case.
Contents:
Keywords:
Marketing communication, Advertising, Comparative advertising, Ethics, Legal, Health drinks market, Horlicks, Compalan , GlaxoSmithKline, Heinz
The Fight for the Indian Health Drink Market Turns Ugly
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