The Advertisement War - Pizza Hut vs. Papa John's*

            


Details

Case Code : CLCB047
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Pizza Hut, Papa John's, Deceptive advertisements, Comparative advertisements, Puffery, Pizza advertisements, Better Ingredients, Better Pizza, 5th Circuit Court of Appeals, National Advertising Division of Better Business Bureau and Best Pizzas Under One Roof

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

Pizza Hut Inc. and Papa John's International Inc. are among the leading pizza chains in USA. The caselet 'The Advertisement War: Pizza Hut vs. Papa John's' examines the factors that led to the intense advertisement war between these two pizza giants that went as far as the US Supreme court. The caselet traces the strategies they adopted in various courts of law. The caselet also gives insights into the puffery used in advertisements by Papa John's to impress the customers.

Issues:

» Reasons for the multi-million dollar legal battle between Pizza Hut and Papa John's
» Comparative advertisements and the limits to which they can go
» Puffery in advertisements and the limit beyond which it becomes deceptive

In 1997, Pizza Hut Inc. (Pizza Hut), based in Dallas (USA), was the largest pizza chain in the USA. Papa John's International Inc. (Papa John’s), which had operations in 49 states of USA, was the fourth largest pizza chain in the country.

There was intense rivalry between these two pizza giants, which led to a prolonged legal battle over their various advertisement campaigns. The battle even reached the US Supreme Court...

Questions for Discussion:

1. In the 5th Circuit Court of Appeals, Papa John's took the stand that its slogan "Better Ingredients, Better Pizza" used puffery to impress customers. Discuss the stand of Papa John's.

2. Pizza Hut and Papa John's fought for about two and half years in court over their advertisements which compared each other's products and ingredients. What is your opinion about such comparative advertisements?


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