The importance of claiming to be No. 1 - Part I

Big brands routinely tout survey figures in their advertising that show they lead the pack. Why is it so critical for companies to claim to be No. 1?

Last week, a business daily quoted an ORG-Marg survey to say that Kinley and Aquafina had gained marketshare at Bisleri's expense. According to the figures mentioned in the report, Bisleri has apparently suffered a 12.7-per cent decline in its market share (down to 47.3 per cent), while Kinley and Aquafina have upped their shares to 19 per cent and 7.9 per cent, respectively.

What is interesting is that this report also talked about how Bisleri has apparently denied an erosion in its market shares, citing ‘internal studies' that prove that its 55-per cent market share is very much intact.

Bisleri's is not an isolated case of a company/brand refuting the findings of a survey, and swearing by internal figures - or the findings of another survey, where the figures appear more ‘favourable'. Coca-Cola and Pepsi are prime examples of companies that are constantly locking horns over rival survey findings. And there have been quite a few other instances in the past.

In all these cases, the issue is not about the authenticity of survey findings alone. It's more about the need to appear to be the bigger, better brand/company. It's about making headlines the way Hero Honda did earlier this month by ousting Bajaj Auto as the largest two-wheeler company in the country. And about being perceived as the market leader.

Now the big question is, why is it so critical for companies to claim to be the No. 1? That one is easily answered - no one wants to be the No. 2 (except, perhaps, on a tactical level, the legendary US-based car rental company Avis, which almost made a virtue of being the No. 2). But what when there are no clear, referable figures that conclusively settle the matter in one or the other's favour? Everyone claims to be the market leader. The point is, who's impressed?

"There are many interest groups that a company has to cater to," says Samit Sinha, current COO, Mudra Communications, whose independent brand consultancy, Alchemist Brand Consulting, is set for launch in September. "One is the financial community. The financial health of the company directly impacts the stock market. Then there is the trade, the vendors, the business associates and the employees. By making leadership claims, you keep the morale up, and there is desirability in being associated with you. Being the No. 1 is psychological muscle."

Rahul Kansal, deputy managing director, Leo Burnett, is in agreement. "Among those who track corporate movement, a drop in market share suggests that the brand is weakening." Now this might be happening for no fault of the brand - in fact, this might merely be a temporary setback on account of market conditions, availability of raw material or a recession - but the belief that degrowth equals failure is too deeply ingrained. "It's a knee-jerk reaction which can't be helped. So companies have to keep instilling faith by claiming leadership."

Obviously, consumers are also kept in mind while beaming the ‘I'm No. 1' message. "Being the No. 1 is a great mnemonic and has tremendous advantage, especially in categories where consumer involvement is low," says Sinha. "It helps you stay top-of-mind." That does not mean merely stating leadership will suffice, least of all through traditional advertising. "Consumers look at all claims with a healthy dose of skepticism," Sinha adds. "So you have to support your claim of being the largest or best or whatever with evidence. Or you have to go unchallenged, which doesn't happen often."

The problem with making a leadership claim through advertising is that leadership, by itself, is not a very motivational idea for consumers. "Consumers want to know what you can do for them, not whether you're the biggest," says Sanjay Nayak, senior vice-president and general manager, McCann-Erickson. "On the other hand, if you are the No. 1, the reasons why you have become the No. 1 are more important, and should be communicated."

Kansal too thinks there are "many more worthy messages that can be communicated through advertising", but adds that there are times when companies have to claim leadership "when consumers start doubting the company's credentials and abilities". And of course, there are tactical moves, like the recent ad that Thums Up ran after it was identified as a power brand by an Economic Times-ORG-Marg survey. "While the Thums Up ad was about chest-thumping, it also had to do with the strategy of engaging Pepsi through the line ‘Hai koi jawaab?'" says Kansal.

(To be concluded tomorrow.)

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