WHAT'S the big deal in a toothpaste? Lots, if you are Hindustan Lever or Colgate Palmolive, the two giant consumer marketers locked in a bitter battle over advertising claims made by Lever for its New Pepsodent brand.
Two months ago, Hindustan Lever released an ad for New Pepsodent in print and on TV. The ad stated: "Proof that Pepsodent is 102 per cent better than the leading toothpaste." This, the ad explained, was achieved with the product's new Germicheck formula which makes it more effective in fighting germs. "It is so effective against germs that hours after brushing, it's twice as good as the leading toothpaste. And that is proven. In test after test," was the claim Which is the leading toothpaste in the Indian market? Colgate Dental Cream (CDC), the flagship product of Colgate Palmolive, which currently controls a 48 per cent marketshare. Disputing Lever's claim, the company approached the Monopolies and Restrictive "102 Trade Practices Commission (MRTPC), saying that the claim is not factual, that it is misleading the consumer and that the information is disparaging its brand Colgate. Its arguments rest on two points:
For its part, Lever claims that Triclosan is a proven anti-bacterial agent which is effective against oral germs. Says the company spokesperson: "New Pepsodent has significantly improved its anti-bacterial efficacy and this is a result of extensive research carried out by the company both in India and abroad." This is the basis for its superior claims, he says.
Colgate, however, wants an independent opinion to allow Lever to make such claims. On November 6, the MRTPC ordered that Lever discontinue using the 102 percent superiority claim and comparison with the leader within a week's time. An expert panel comprising three members—one each recommended by the two companies and one from the commission—will look into the issue and give its final opinion within the next four to five months. But the following week has witnessed a virtual blitzkrieg of advertising, with both companies grabbing as much space as possible. Lever has hammered the 102 per cent ad furiously along with another stating "indisputable facts" about New Pepsodent to buttress its superiority claims. Colgate has advertised the MRTPC order, highlighting the part that seeks to withdraw the Pepsodent ad. On November 14—the day the week-long deadline expired—the Lever ad changed.
Not its stance though. Lever is not only defending its technical claims, but is going a step further: it has issued a counter-notice of enquiry against Colgate for claiming that its dental cream (CDC) has a "germ fighter" and that it "stops bad breath and fights tooth decay". It states that CDC neither contains any proven anti-bacterial agent nor fluoride which can deliver these benefits. Colgate, says Lever, is making the "germ fighter" claim without any addition to its product formulation. And that it has been making these claims for several decades. This hearing is scheduled for December 10.
The stakes are not small. And for Colgate—whose bread and butter is the dental care market—it could mean much more. For Lever, Pepsodent is a smaller brand in a smaller segment (less than 12 per cent of Lever's sales come from personal products, of which toothpastes are a part); the strongest toothpaste brand with Lever is Close-Up (20 per cent market-share). Thus, the fight is between a small brand of a large company with the leading brand of a smaller one. The Colgate brand (along with all its variants) enjoys nearly a 60 per cent marketshare. After the advertising started appearing in end-August, its share has been hurt: according to market research agency ORG, the September urban share of Colgate fell by nearly 3 share points. Or 4.5 million consumers. The crucial issue for the marketers, of course, is if and how this pasty crossfire affects consumer loyalties and preferences.
For, that's the answer that will finally decide the winner.
