These companies follow a simple formula: launch a series of communication attacks, ridiculing and belittling leading brands. They are known as “challengers” and they seem to believe that the end justifies the means. They are willing to resort to any communication tactic in order to capture the attention and gain the recognition of new audiences.
WOM case
In Chile, we have a paradigmatic case in WOM, a company that recently declared bankruptcy. Since its arrival in the country in 2015, WOM stood out for its massive advertising investment and aggressive messages that directly or indirectly targeted its competitors.
Their ads included violent images, such as a woman holding a Molotov cocktail with the phrase “The others have their minutes numbered”or posters that provocatively said “so that when browsing you don’t feel like vomiting”. While these strategies captured the public’s attention and ensured successful market penetration, success was due more to large price discounts (approximately 40%) than to a differentiating value proposition.
In addition to mocking the competition, which it referred to as “Clavistel” (CLAro, moVIStar and enTEL) in its launch commercial, it resorted to the sexualization and objectification of women by showing them naked. A more effective combo in the field of Marketing would be difficult to find: price discounts and aggression against the competition were combined to achieve categorical results in sales, taking the brand to second place in market share in a few years.
However, at what cost? In my university classes, I always raised this topic to encourage debate. Two positions were facing each other: those who maintain that the only thing that matters are commercial results versus those who defend ethics over results. In my opinion and what I always try to teach, is that competitors should never be seen as enemies. Brands are role models in society and must set an example. Attacking competitors is a questionable practice from any perspective, no matter how ingenious and creative the attack.
WOM is not the only brand that has taken advantage of this dubious marketing practice. Burger King, Pepsi and even Apple have used it in their recent history. However, the fact that others do it should not serve as an excuse to follow that path.
Luciano Castellucci
Partner NOW Branding
