The liberalization and globalization of the Indian economy has resulted in the entry of numerous products and services into the Indian market. This has resulted in many Indian firms aggressively promoting their products and services. Advertising has turned into a battlefield for companies to create distinctive and appealing ways to communicate to customers and also to positively influence their purchasing decisions. When advertising is taken to a competitive level, businesses often compare their products or services or offerings to those of their competitors in their advertisements to positively influence the consumer and to convert them into patrons. Comparative advertising, in which the advertised brand is compared to one or more competing brands, has been one of the most useful tools for companies to stand out in such intense competitive situations. However, a lot of questions have been raised about the truthfulness and effectiveness of such advertising formats.
The Indian passenger car segment has come a long way since the introduction of Ambassadors and Premier Padminis. In the late 1980s and early 1990s, Maruti Suzuki (the joint venture between the Indian Government and Suzuki of Japan) with its brand, Maruti 800, dominated the Indian passenger car segment and commanded a market share of more than 70%. In 1993, following the liberalization and de-licensing of the Indian passenger car industry, many global automobile players like Hyundai, Ford, General Motors, Toyota, Daewoo and Honda entered the Indian automobile market.
Hyundai Motors India Limited (HMIL), the wholly-owned subsidiary of Hyundai Motors, in 1993, launched its car "Santro" in direct competition with Maruti. It was a runaway success and became the largest selling brand in the "B" segment by 2000. In 2002, Hyundai launched Santro Xing and it was able to further consolidate its position and close the gap on the market leader Maruti. |
