The Hamburger Wars Essay

2859 words - 11 pages

THEHAMBURGERWARSName: Barbara BlokkerCourse: Integrated CommunicationDate: 2005-01-26Problem StatementIs competitive advertising a good way to present your advertising of your product to the public?Diagnosis of the problemThe problem is that the companies compete with each other through advertising and in the advertising they tend to criticize their competitors. Comparative advertising.When they start advertising in this way the start a chain reaction.The first company makes the first advertisement which criticizes the second company and they will react on this with a lawsuit. The third company will profit from this with their own advertising and lawsuits. And this results in bad advertising and a lot of lawsuits.If you look at this case you see that Burger king started with a comparative advertising. Burger King compared their hamburger with the hamburger from Mc Donalds. Mc Donalds reacted with a lawsuit. This gives Mc Donalds and Burger King free publicity witch resulted in Wendy's reacting with their own lawsuit.Although this war of words give the companies free publicity it also creates negative publicity. The lawsuits also generates bad publicity and will reverse the effect the advertising had in the first place. The lawsuits creates costs which results in a higher selling price for the costumer. The costumer will not appreciate this and will buy less hamburgers (in this case). Which result in less profit for the company.In this case the companies in the end profited from the advertising war. But as I said in the last paragraph this is not always the case. The three companies showed an increase in sales after everything was over. People say that bad press is better than no press at all.After this case you can ask your self the question whether the companies had planned this war of words. I think that this is possible but highly unethical. I think that it is unethical because you mislead the customer. They get fooled by the information put forward by the fast food companies. In my opinion companies should be honest and ethical in their promotion. This is not the case here. I think it is not ethical to criticize a product from another company to promote your own product.Competitive advertising is in my opinion not the best way to advertise the product. I think that advertising should be positive. If you compare your product to that of an other company you give the advertisement a negative ring to it. You say that you are better that the competition. But you make the customer think about the competition at the same time. It is better to use only your own product and promote it through advertisements focusing on your own company and product. A positive advertising has more effect on the public than a negative one.In Belgium it is not yet allowed to use comparative advertising. This is with the intention to protect consumers but also competitive companies against unlawful advertisements. In Belgium it is seen as unethical and misleading to use...

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