Interbrand Sampson is the local arm of a global concern that puts a monetary value to brands. Its valuation methodology was developed in 1988 and it has valued more than 3 800 brands since then.
FCB South Africa, Vodacom's marketing partner, had complained to the ASA on behalf of its client, claiming the Interbrand Sampson study referred to in AdFocus only evaluated the brands in financial terms. FCB South Africa argued that the results therefore could not be used to claim market leadership.
And claim market leadership is exactly what MTN did in an advert published in the AdFocus issue as well as the Sunday Times on May 15. The advert read: 'Wherever you are, wherever life takes you, South Africa's number 1* cellular brand is with you everywhere you go. * Source: Interbrand Sampson 2005'.
FCB South Africa maintained that market leadership was determined by a number of factors including financial performance, customer perceptions and actual market share. Taking these into account made Vodacom the clear market leader, and MTN's advertising only served to erode Vodacom's goodwill and mislead consumers.
FCB South Africa quoted the following facts to substantiate its complaint and prove Vodacom's market position:
1. Vodacom is more popular than both its competitors in terms of liking, as proven by ongoing Millward Brown Impact AdTrack methodology that measures which commercials are best liked by South Africans.
2. Vodacom is more popular than both its competitors in terms of brand affinity and noting, again as proven by ongoing Millward Brown Impact AdTrack methodology that measures brand linkage to advertising.
3. Vodacom has the highest market share of the three cellular operators, earns higher revenue and is more profitable.
4. Vodacom also has more subscribers than its competitors, as well as the lowest defection rate in terms of users.
In response, MTN argued that the monetary value attributed to the respondent's brand is indicative of the strength and reputation of the brand in South Africa.
In its ruling, the ASA Directorate rejected MTN's argument and said: "In the context of this study, the substantiation shows that the respondent is rated as the most globally financially valuable cellular brand in South Africa in 2005. It does not, however, illustrate that the respondent's brand is categorically "South Africa's number 1 cellular brand."
The ASA concluded that the claim must be withdrawn with immediate effect and may not be used again in its current format until such time as verification of the specific claim is submitted, evaluated and a new ruling is made.
