Question

47) "Fudgey" is a new brand of super-premium ice cream created for discerning ice-cream lovers who want rich creamy taste and unique flavors. Fudgey wants to distribute through specialty shops and also through supermarket chains. Fudgey is offering supermarket chains higher margins than all the other major ice cream brands in order to get in-store display space and promotion. Breyer's Ice Cream is the number 2 ice cream producer in the US and competes against Ben and Jerry's for the number 1 position.

Breyers managers are concerned that Fudgey may cut into their market share. They are considering running a comparative ad campaign against Fudgey in which they compare the quality of ingredients and consumer taste tests between the two brands. They ask you for your advice for their plan to run the comparative ad campaign. You advise them that

A. comparative advertising campaigns are viewed as unethical by more educated consumers

B. the comparative ad campaign may provide Fudgey with a source of free promotion and credibility with consumers

C. the comparative advertising campaign should have as its objective a reduction in the number of supermarkets distributing the brand

D. the comparative advertising can be an effective way for a market leader to deter entry of a new competitor

E. competitive advertising, if done creatively, can divert consumer's attention from a new product introduction

Answer 1

Ans A. Comparative advertising is a marketing strategy in which a company compares and presents their product or service superior than its competitors in the market. The comparison can be based on the price, value or the features of the product. The company tries to showcase its competitor’s products as inferior. Consumers are smart enough to make their minds and take decision upon which product to choose from. Comparative advertising can be unethical as per of the educated customers, because it confuses the customers. Also, customer will believe that the marketer is trying to manipulate them by exhibiting their features and presenting their product is superior than its competitors.

Ans B. In the above case, when Breyers is trying to promote the product by comparative advertising and comparing its product with new competitor named as Fudgey. Breyers is trying to increase its sales and share in the market but it is also promoting Fudgey by making comparison on how Breyers ice cream is better than Fudgey. As Fudgey is new in the market, it will attract more credibility and free promotion in case Breyers will promote their ice cream using comparative advertising.

Ans C. The comparative advertising campaign’s objective should be to focus on what our product is offering and in what ways we are different from our competitors. The objective should be promoting the unique selling point of the product and how it is different from the products in the market. As Fudgey is trying to penetrate the market by giving supermarkets huge mark-ups in order to have more display space and promotion. Breyers on the other hand can promote itself as one of the best ice creams in the existing market. It can focus on its existing customers to gain loyalty. An objective of reducing the number the number of supermarkets distribution is not a good idea, as it will decrease the sales from supermarkets.

Ans D. Comparative advertising can be a good idea for a market leader to discourage the new entrant. Market leader can exhibit how their product is better by promoting its features. It can also turn out a benefit for new entrant as the new competitor will have a free promotion without spending much.

Ans E. Competitive advertising can be very effective if implemented wisely. It will benefit the brand as the advertisement will exhibit the detailed and explicit information about the product and its features. It helps the customer in comparing and reduces the confusion. It creates a trust with the customer and improves product’s perception. If done in ethical boundaries it builds a healthy competition in the market.