Mumbai, Oct 10: The Baron is on the move again. Even as Baron International and Philips India Ltd, battle over the September 1999 launch-advertising of Chinese brand TCL, Baron International claims it is planning to launch a new series of ad campaigns. Watch out for the fireworks: For, while the words might change, the message will remain the same as the first series of ads, which are currently under the consideration of the Monopolies and Restrictive Trade Practices Commission.Baron's executive chairman Shakun Mulchandani told The Financial Express: ``We will run the same message in our forthcoming ad campaigns: ``value for money''. However, the campaigns will be modified and wordings could change.'' Mulchandani added that the new advertisements will hit the media during the Diwali festive season.
Courting trouble
Handled by Avenues Advertising, the TCL launch campaign was designed to blitz and blister. Baron drew up a massive media plan which included splashing full page ads in leadingnewspapers for nine days beginning September 10, 1999.
And the headline was provocative: ``Own a Panasonic, LG, Samsung, Sharp, Thomson or Toshiba 29 (73.5 cms) CTV for Rs 12,990! Buy the latest TCL.'' The small print then went on to separate ``hyped up myths'' from ``TCL reality''. Some ``myths'' outlined in the ads: `heavily promoted brands such as Philips, LG, Samsung, etc, use only their own components in their TVs'; `such brands manufacture their own products'.
Some ``TCL realities'': `all brands outsource many of their critical components, eg, Philips TVs use JCT Picture Tubes'; `many of them get their products made by OEMs, and just market them under their own brand names (eg, Philips from Dixon, BPL from Hotline)'.
Moreover, the launch ad explained how TCL was able to knock-down the price of a 73.5 CTV to Rs 12,990: ``Worldwide brands like TCL bring down prices by producing large volumes...With TCL, you pay only for the product. Not the Hype!''
Stung to the quick, on September 13, 1999,Philips India Limited appealed to the MRTPC for an ex parte ad interim relief in an interim relief application. On September 15, 1999, the counsel for Baron International informed the MRTPC that ``attempts and efforts have been made to see that the impugned advertisements in the present form do not appear at least till October 31, 1999.'' The case has since been adjourned till November 1, 1999 for directions. Philips sources declined to comment on the issue, as the matter is sub-judice.
Here's the twist: According to a feisty Baron International, the TCL ad campaign was withdrawn on September 18, 1999--but not because the company feared litigation, but because the ad-campaign had served its purpose. Says Shakun Mulchandani: ``This particular ad has already had its run. So we have not withdrawn it because of the MRTPC but because it has already served its purpose. It is part of our marketing strategy.''
For the forthcoming ad-campaign, Baron is still to decide on the ad-agency: the two contenders currentlyare Avenues and Concept. Says Mulchandani: ``We don't want to run the same campaign because we do not like repetition. So a new campaign will be released at an appropriate time, which is Diwali.''
Nor has the CTV market heard the last of the Baron-Philips imbroglio. Mulchandani now claims that Baron International plans to furnish documentary evidence before the Commission, to prove that what was stated in the TCL campaign were facts.
According to Mulchandani: ``The ad is targeted at consumers and not the competition. Since it is their profitability at stake, they are reacting.''
Following the initial response, Baron claims that it expects to sell 75,000 television sets between October and December 1999. It remains to be seen how many controversies it raises in the next three months, in the process.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.