ARTICLES

BATTLE OF THE BISCUITS

A practical case of PR strategy in Action
When Arnott's Biscuits threatened legal action against Dick Smith Foods, alleging that Dick's new temptin' triple chocolate biscuits infringe their Tim Tam trade mark, their PR consultancy, Dennis Rutzou Public Relations were asked to make a PR strategic assessment of the upside and the downside.

According to Dennis Rutzou, it was hard to find a downside.

He assessed that if the action was successful and the temptin' pack design had to be changed, Dick Smith Foods would win the publicity stakes, and if they won the case, they would still win the publicity stakes.

There was also the advantage of having Dick Smith as the media spokesman because he is held in such high esteem by so many Australians, plus the fact that Dick Smith Foods would be publicly seen as an Aussie battler taking on a giant US multi-national.

The resulting widespread media publicity has established the temptin' brand as a major supermarket line with the biggest difficulty for Dick Smith Foods being to try and make enough biscuits to satisfy the demand. (The publicity impact has also been felt right across the range with significantly increased sales of most Dick Smith Foods' products. One supermarket reported that their sales of cheese slices had doubled).

Talk back radio callers to Sydney's highest profile breakfast program even alleged connivance between Arnott's and Woolworths to keep temptin's off the shelves and the Mayor of Ipswich banned Arnott's biscuits from morning tea at the City Hall. The Woolworths' allegation was untrue, but it all fed the publicity fire.

Research has shown that the temptin' brand enjoys almost universal recall, yet the entire exercise so far has been driven by public relations, without any advertising expenditure.

Peter Gotting, writing in the Sydney Morning Herald said in the first paragraph of his story: "Dick Smith Foods has had a public relations coup with its new Temptin' chocolate biscuits, even though he has settled the case with rival Arnott's the intellectual property court case."

Later in the story: "… Dick Smith Foods earned such significant media coverage during the court case that the biscuits sold out in some stores. The company has also delayed a television advertising campaign - it was not needed."

On the reason for settlement Dick said, "we don't want to waste the money on lawyers and we'll take the money we had budgeted for the court case and give it to charity, which is a core element of our business philosophy."

It is hard to argue against this type of reasoning.

In a recent article in industry publication B&T, Arnott's claimed victory stating that they had forced Dick Smith Foods to make important changes to their temptin' pack design.
We reproduce the original and the new pack for you to make a comparison on the extent of the Arnott's victory.

Footnote: Since Dick Smith Foods was established in February 2000, they have sold well over $200 million worth of products and donated $1.9 million to charities and humanitarian causes.

About the Author
Dennis Rutzou Public Relations is a highly experienced, full service, integrated public relations consultancy capable of undertaking all the communications activities that are required for its clients. For more information go to www.drpr.com.au or call 02 9413 4244.

© COPYRIGHT
All articles are copyright. These articles may be used for publication in magazines and newsletters with prior permission from the author and Samperi Consulting Group Pty Ltd. Please contact Samperi Consulting Group Pty Ltd for further information at karina@samperi.com.au.

NEWS & TIPS INDEX | NEXT>