Joe Public client Tracker, as well as other members of the vehicle tracking fraternity, has recently found itself in the crosshairs of negative publicity in the wake of a few unsubstantiated claims that vehicle crime syndicates may be using sensitive insider information to locate and possibly steal cars.
Even as the crisis is being contained and dealt with pro-actively, competitor Altech Netstar has now taken to running full-page advertising in major newspapers, as it attempts to instil doubt in the consumer over the efficacy and trust of not only vehicle tracking companies, but even the South African Police Services.
"We must remember that it is not only a crisis for the companies involved, but for the entire industry," says Andrews. "For a company to use controversial advertising - to platform their own services and special offers at a time when their industry faces possible threat - seems highly irresponsible. An advertiser's priority should be to not only protect the consumer, but also the industry it finds itself in. In the case of vehicle tracking and recovery, its responsibility is two-fold."
She believes that this kind of roundhouse advertising is essentially naïve as all tracking companies, not to mention any big business, run the risk of being targeted by criminal elements. Furthermore, she believes it will not negate the strong product Joe Public's client offers its 370 000 subscribers.
"We remain firm in our commitment to Tracker," she states. "After all, it has recovered more than 29 000 vehicles in the last nine years and arrested some 6000 criminals. Working with the police and mandated with power of arrest, it has the follow-through other companies don't have. It effectively closes down chop shops and breaks up crime rings. What this means for the insurance industry at large are lower premiums for all car-owners."
Of course, the first rule of marketing tells us that we should attack our competitors at their weakest moments, but Andrews points out there is a time and place for it, such as exploiting a competitor's inferior products or weak service delivery.
"Healthy competition is needed and encouraged in the advertising industry," she says, "and no one would endorse collusions or cartels, but just as mounting a price war strips value out of the market, so too does below-the-belt tactics in comparative or competitive advertising. Rather than trying to grab market share, Netstar would do better to revisit the basics - and sell its products on intrinsic merit."
She further points out that worldwide developed economies adhere to a code of advertising practices, much of it acknowledged as a self-regulatory practice for all agencies. "Most of the time, agencies keep to the spirit of this code and wouldn't take advantage of a competitor's temporary misfortune. Of course, there are laws that are set out by the Advertising Standards Authority (ASA), but it should be up to the industry to govern itself and keep these kind of disputes away from time-consuming and costly lawsuits."
At the end of the day, she believes it all comes down to strategy and a responsible competition in the market place. "When this crisis has passed, people will look to the industry as a whole to see how the crisis was managed. A good reputation is far more important in the long run than a single sharp-toothed marketing campaign and the reasons are obvious. Good reputation enhances profitability and contributes to long term success.
"Irresponsible competition will only hurt the industry and, more importantly, the consumer. Perhaps Netstar needs to ask itself what this type of approach has done to its brand equity and if they may not come out of this crisis second best?"
