AMITY SCHOOL OF BUSINESS

SURROGATE ADVERTISING
SUBMITTED BY:-

ACKNOWLEDGEMENT
Preparing this report has been a great learning experience for me and I would like to express my deep sense of gratitude towards all the people who guided me throughout and without whose guidance and support, this report would not have been completed successfully. My sincere thanks to my report guide, who has been a source of knowledge and inspiration. If one believes that honesty is the best policy and truth ultimately gains, the best policy would be to stand up strongly to the dishonest practices of surrogate advertising.

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CONTENTS
PREFACE EXECUTIVE SUMMARY INTRODUCTION EVOLUTION OF ADVERTISING GOVERNMENT IMPOSES BAN ON LIQUOR & TOBACCO ADVERTISEMENTS AFTERMATH OF THE BAN SURROGATE MARKETING POPULAR EXAMPLES OF SURROGATE ADVERTISING & WHATS IN STORE

BIBLIOGRAPHY........................................................................

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PREFACE

Advertising is virtually everywhere in daily life and its forms and roles are both contested and admired. Some see advertising as both the mirror and the maker of culture: its words and images reflect the present and the past even as they contribute new sounds and symbols that shape the future. Others say that advertising is purely an economic activity with one purpose: to sell. But most of the people agree on the fact that advertising creates "magic in the marketplace." There are more than 70 television channels in India, reaching 24 million cable and satellite homes and with over 150 million viewers. Advertising budgets climb up every year. An estimated 10 million people consume Alcohol and about 250 million Indians consume tobacco in form or another, out of the 1 billion plus population. The country has a deep seated traditional conditioning against consumption of alcohol & tobacco. As a conscious effort to reduce the no. In September 1999, the Information & Broadcasting Ministry imposed a ban on airing of Liquor & Tobacco advertisements on television. The ban came as rude shock to the Liquor & Tobacco Industry, as television is one of the main media’s of communication, and any kind of ban would affect them adversely. The ban would have affected the new entrants more than the existing established players. In the absence of advertising it was but natural that the liquor & tobacco sales would head for a steep fall. The Liquor & Tobacco found the solution to there worries in what is today better known as Surrogate Advertising. According to the dictionary, Surrogate means an alternative, or a back up, or a substitute. Surrogate Advertising has been defined by the Information & Broadcasting Ministry as an advertisement of a product

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other than liquor or tobacco, when that product is actually being manufactured by a liquor/tobacco company in substantial quantity. The function of surrogate advertising is more of reinforcing brand recall, rather than an increase in the sales of the company. Soon there were advertisements from liquor companies, which had the same brand name, but a different product was being advertised. Advertisements of mineral water, soda, darts, apple juice etc became common, and had become the drivers of the brands whose brand name they carried. Tobacco companies not to be left behind came up with there own set of surrogate advertisements. One of the companies started with its own chain of lifestyle stores, while another company instituted its own bravery awards.

Thus in a nutshell ban or no ban the liquor & tobacco giants manage to create awareness of there respective brands in one way or the other.

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Similarly Indian Tobacco Company'''s (ITC) had their flagship brand cigarette `Wills' and then opened Wills Lifestyle stores (readymade garments) across India when Indian tobacco control Acts tightened the clamp on tobacco advertising. juice to hit consumers with the brand name. Indian laws do not allow alcohol and tobacco companies to advertise. alcohol brands are not allowed to give advertisements on television.EXECUTIVE SUMMARY The literal meaning of ‘Surrogate advertising' is duplicating the brand image of one product extensively to promote another product of the same brand. so alcohol marketing firms use surrogate products like mineral water. soda. as a popular medium of paid communication has drawn public ire time and again for moving away from the truth and the consumers ‘right to know' to providing false images. 6 . Surrogate advertising is done when the original product is not allowed to advertise itself on mass media. EXAMPLE: Kingfisher is also the brand-name of an Indian alcohol (beer). Advertisement. The masked creative leave it to the consumers to read between the lines. The brand name of the alcohol product is the same as the surrogate product. In India. but a few of these advertisers have extended their brands to other categories purely in an attempt to advertise. Kingfisher alcohol existed long before the Kingfisher airline came into existence. Surrogate advertising happens when the brand extension is seen as a guise for a product that is almost non-existent in commercial terms.

and should only mention the kind of tobacco being sold there with 25% of board area dedicated to health warning (Tobacco causes cancer or Tobacco kills) in local language. public health and the country's welfare.Another alcohol brand `Royal Challenge' (beer) sponsors a sport-event (Indian Premier League matches) which are broadcasted on Sony television. the government formed a committee headed by the then additional secretary of the Information and broadcasting ministry. outdoors. but allows tobacco advertising at the point-of-purchase with conditions: the size of the board is fixed by law and also the content: tobacco advertisements on point-of-sale cannot display any graphic or picture or any brand name.. These bans on alcohol and tobacco advertisement should be extended to sponsored ground events. This time. indirect and surrogate) to sponsored ground events. Studies have proven how tobacco and alcohol ads use glamour and lifestyle imagery to promote their products and catch youth's fancy for their capital interests. However advertisement firms are going to lose Rs 250 crores of the revenue. They ask: "Why is the [tobacco and alcohol advertisement] clamp not extended to other media. Actually the Cigarette and other Tobacco Products Act (2003) does extend the ban on tobacco advertising (direct. which included prominent 7 . In the year 2000. Sony TV is likely not to screen such programmes since tobacco or alcohol sponsorship of sport events is also banned in India. Enforcing such tobacco and alcohol advertisement bans are in extreme interest of the people. outdoors. point-of-purchase advertising etc as well. outdoors. which was earlier coming from tobacco and alcohol ads. such as sponsored ground events. The deadly health-hazards of tobacco and socioeconomic disaster which alcohol spells on families are a reality we deal with in our dayto-day lives. point-of-purchase advertising etc. which will reap our losses?" The question is indeed very valid.

and on the other side we had the liquor and tobacco companies who wanted to continue with television as a medium of communication and to achieve the ultimate goal of increase in sales. However tobacco and alcohol companies have been promoting their products under the garb of non-tobacco or non-alcohol products with same brand names. Royal Challenge is an alcohol for most consumers or potential consumers and not a sport! On the one side we had the government who wanted to make sure that there were no liquor and tobacco advertisements on the television. The committee recommended that products with real production and distribution channels cannot be called surrogate. For example.broadcasters to look into the issue. 8 . This battle of interest of both the sides is what fascinates me to choose Surrogate Advertising as a topic for doing my thesis. Such surrogate advertisement does have a brand recall impact since most of the viewers associate a particular brand with the main product.

and had become the drivers of the brands whose brand name they carried. According to the dictionary. Surrogate Advertising has been defined by the Information & Broadcasting Ministry as an advertisement of a product other than liquor or tobacco. when that product is actually being manufactured by a liquor/tobacco company in substantial quantity.INTRODUCTION In September 1999. They found there solution in what is today better known as Surrogate Advertising. Tobacco companies not to be left behind came up with there own set of surrogate advertisements. or a substitute. The ban shook the Liquor & Tobacco Industry as television is one of the main media’s of communication. The ban would have affected the new entrants more than the existing established players. 9 . or a back up. Surrogate means an alternative. The Liquor & Tobacco majors were working overtime to find a solution to the crises that they were facing. One of the companies started with its own chain of lifestyle stores. the Information & Broadcasting Ministry imposed a ban on airing of Liquor & Tobacco advertisements on television. and any kind of ban would affect them adversely. The function of surrogate advertising is more of reinforcing brand recall. rather than an increase in the sales of the company. On the one side we had the government who wanted to make sure that there were no liquor and tobacco advertisements on the television. which had the same brand name. while another company instituted its own bravery awards. and on the other side we had the liquor and tobacco companies who wanted to continue with television as a medium of communication and to achieve the ultimate goal of increase in sales. Advertisements of mineral water. This battle of interest of both the sides is what fascinates me to choose Surrogate Advertising as a topic for doing my dissertation. apple juice etc became common. but a different product was being advertised. Soon there were advertisements from liquor companies. darts. soda.

To determine the priority for further research 3. The major emphasis in such studies is on the discovery of ideas and insights.RESEARCH DESIGN Exploratory research design has been used for the project. To gather data about the practical problems of carrying out research on particular problem statements. 2. This type of study is conducted in the following situations: 1. The research design must be flexible enough to provide opportunity for considering different aspects of a problem under study. This stage shall help the researchers to restrict and select only the important question and issue. The design of exploratory studies is characterized by great flexibility and ad-hoc versatility. which inhabit growth and segmentation in the industry. 10 . to review and critique the industry norms and reports. Flexibility in research design is needed because the research problem is transformed into one with more precise meaning in exploratory studies. The researcher is involved in investigating an area or subject about which he or she has yet to gain a proper knowledge about the subject. To increase the analyst’s interest in the problems to explain and understand basic concepts. The main purpose of using this design is for getting a solution to a problem for more precise investigation. on which certain issues shall be selected. 4. This shall be further taken up in the next stage of exploratory research. which the researchers feel remain unanswered or liable to change. The researchers purpose is to first conduct a intensive secondary research to understand the full impact and implication of the industry. which may necessitate changes in the research procedure for gathering relevant data. To get solution to a problem for the further investigating.

In order to collect the primary data.The information presented in the dissertation has been gathered from Secondary data.Methodology Used. where the surrogate advertising emerged as a consequence of the ban imposed by the Information & Broadcasting Ministry on the advertisement of liquor & tobacco. questionnaire was prepared to derive details on what is the opinion of the common man & the people in the advertising sector. about surrogate advertising and its effectiveness. 11 . the focus of the study has been confined to the liquor & tobacco industry. In order to make the dissertation more precise rather than covering the entire scope of surrogate advertising.

When Johann Gutenberg invented movable type and the printing press in Germany in the mid 1400s that printed materials could be mass-produced. technological advance changed both the speed and form of communication. and motion pictures opened up new avenues for personal and business communication. the businesses turned to advertising quickly to reach out their potential customers. Over the centuries. 12 . typewriter. telephone. We would study the evolution of advertising under the following heads:  The Early Days: These were the days when public education was low. Some Greek and Roman traders also used signs to advertise their products. few people could read. Even a hundred years ago. advertising was an integral though sometimes unwanted part of daily life. phonograph. This can be attributed to the fact that photography was invented and along with telegraph. as people could not read.  The Industrial Revolution: The Industrial Revolution and the subsequent shift from rural to urban centers and the widening of the gap between producers and the consumers. economic and technological changes that have affected the media and the message.  Technological Changes: During and after the Industrial Revolution. and so for centuries trades people attracted attention with public criers and pictorial signs. This led to printed pamphlets being distributed and also some primitive forms of today's billboards.EVOLUTION OF ADVERTISING Advertising is hardly a new phenomenon. the evolution of advertising has been closely tied to social.

This was a revolution and the print media found it being sidelined as far as advertising went. and all the magazines and newspapers were being filled by ads of different companies and varied products.S. Whereas the television brought along the visuals along with the audio effects. the Cable TV boom in the early nineties added to the choices available to the advertiser on a regional segment. advertising had become a social and economic fixture in the U.However. and U. Today's newspapers and magazines offer advertisers the flexibility of targeting the audience ranging from a small local area to the whole nation or the continent. the inventions of radio and television changed the face of advertising forever as print and electronic media expanded the use and impact of advertising. 13 . which could be associated with their brand and product. By the dawn of the twentieth century.K. We discuss a few of them in brief: Print Media: This would include the magazines and the newspapers. The advent of the radio allowed the advertisers the liberty of using certain 'jingles' and music. Electronic Media: The electronic media would include radio and the television. Talking of India. Today also the print media is an effective mode of advertisement.

or any part of the Constitution or the person or personality of a national leader or a State dignitary. colour. (2) No advertisement shall be permitted which(i) Derides any race. Advertising Code. Women must not be portrayed in a manner that emphasizes passive. in the programmes carried in his cable service. 1995[1] 7. (iii) Tends to incite people to crime. creed and nationality. The cable operator shall ensure that the portrayal of the female form. and is within the well established norms of good taste and decency. or breach of law or glorifies violence or obscenity in any way. . caste. secondary role in the family and society. In particular. decency and religious susceptibilities of the subscribers.GOVERNMENT IMPOSES BAN ON LIQUOR & TOBACCO ADVERTISEMENTS THE CABLE TELEVISION NETWORKS (REGULATION) ACT.(1) Advertising carried in the cable service shall be so designed as to conform to the laws of the country and should not offend morality. cause disorder or violence. is tasteful and aesthetic. submissive qualities and encourages them to play a subordinate. (ii) Is against any provision of the Constitution of India. (iv) Presents criminality as desirable. (v) Exploits the national emblem. (vi) In its depiction of women violates the constitutional guarantees to all citizens. 14 . no advertisement shall be permitted which projects a derogatory image of women.

(B) Infant milk substitutes. (5) No advertisement shall contain references which are likely to lead the public to infer that the product advertised or any of its ingredients has some special or miraculous or super-natural property or quality. tobacco products.(vii) Exploits social evils like dowry. liquor or other intoxicants. static or moving alongside the programme. sale or consumption of(A) Cigarettes. which hurt religious sentiments. (7) No advertisement which endangers the safety of children or creates in them any interest in unhealthy practices or shows them begging or in an undignified or indecent manner shall not be carried in the cable service. feeding bottle or infant food. (6) The picture and the audible matter of the advertisement shall not be excessively ‘loud. (9) No advertisement which violates the standards of practice for advertising agencies as approved by the Advertising Agencies Association of India. vulgar. alcohol. wine. advertisements must not be directed towards any religious or political end. from time to time shall be carried in the cable service. child marriage. 7(viii) Promotes directly or indirectly production. are wholly or mainly of a religious or political nature. (3) No advertisement shall be permitted. (10) All advertisement should be clearly distinguishable from the programme and should not in any manner interfere with the programme viz. use of lower part of screen to carry captions. 15 . the objects whereof. suggestive. which is difficult of being proved. repulsive or offensive themes or treatment shall be avoided in all advertisements. Bombay. (8) Indecent. 1986. (3A) No advertisement shall contain references.. (4) The goods or services advertised shall not suffer from any defect or deficiency as mentioned in Consumer Protection Act.

This prompted the advertising agencies to evolve in their communication strategy. Print media has its own shortcomings. with the multiplicity of languages that people speak in India. From the point of view of Indian players'. These MNC’s not only have well known brands. 16 . but also have deep pockets.AFTERMATH OF THE BAN The industry and the advertising fraternity were caught off guard. The impact of ban on various industries -: TOBACCO The likely fallout’s of the ban on cigarette sales could be  Cigarette volumes. could decline further if restrictions on smoking in public places are implemented strictly. The ban has divided the entire industry between multinationals and local home grown companies. And advertising is their most potent weapon. in the shortest possible time. Also print media cannot beat the effectiveness of the audiovisual medium of television. early this year. What emerged out of it was even more unfathomable. Surrogate advertising became the newage mantra. to subtly promote the brand over the new product. when the government imposed restrictions on airing liquor and cigarette ads on television. the biggest threat today is the entry of global majors who will have an unrestricted license to sell as the free import regime as per the WTO commitment comes into force from March 2001. While the industry scouted for new products to associate with their brands. Television would be the quickest and the most effective way to reach the maximum number of people. raising the issue of ethics in advertising as always. ad agencies burnt their gray cells to conceive creative ads. which have been registering diminishing growth. throughout the country.

These areas used by the company for surrogate advertising have been identified to be yielding high-margins. Restriction on the most effective medium of advertising i. which it plans to import and sell under its own brand name. With a view to actively develop this area. especially if one compares with the present margins in the liquor industry. McDowell has used this ban to its advantage by using surrogate advertising for products like mineral water and soda. Domestic industry players will be at a disadvantage to their international counterparts who enjoy free access to communicate on television channels uplinked from outside India and seen in the country by a very wide cross-section of the population. Fosters. UDV. The company is also planning to launch cigars in a high price range. who would have been relying on building up their brand equities in the local markets are in for a tough time. LIQUOR Domestic liquor majors have been facing increasing competition from international brands launched in the country by leading global liquor majors post removal of restriction on imports. It could even have some fall out on the considerations of 17 . ITC with its wide brand portfolio consisting of the most well known brands in the country and the widest distribution reach among the cigarette companies is better placed than any other competitor in an atmosphere where no advertising is allowed. Pernod Ricard. the company has franchised the bottling and sale of McDowell’s purified drinking water and soda. It is primarily focusing on the youngsters as its target market with its USP being that cigars are less harmful than cigarettes. which are now available in over 75 cities in the country. The ban on liquor advertising has in a way it came as a blessing in disguise since it created an entry barrier for any new prospective player. which also generated additional revenue for the company. Global players who are already in the market such as Bacardi. television would obviously hamper brand building. etc.e. New brand launches would become extremely difficult.

has suffered around 8 to 10 per cent loss of revenues after the recent ban. There has hardly been any cigarette advertising on television as TV companies do not accept tobacco ads.Sales and Marketing. amounting to over Rs 100 crore annually. companies were not interested in showing liquor advertisements in the garb of social messages.some global players who have not yet firmed up India plans. sales and marketing. But with the government imposing restrictions. However. surrogate advertising of liquor products did not account for a sizeable portion of our business. With the IBF guidelines on surrogate advertising in force. It is more of a misconception. do you see TV channels suffering heavily? A. Star. In comparison surrogate advertising of liquor products has been higher. executive vice-president. the current revenue hit was only due to removal of liquor ads. Another big advantage that smaller domestic players will have is that they will become more attractive acquisition targets. ``As long as there was no ban. all the leading private channels are experiencing revenue losses due to the ban. for instance. 18 . it is very minimal. at least for their distribution reach which will now be even more critical in a scenario of restricted advertisements. that since the broadcasting industry had already taken off most of the tobacco ads.'' MEDIA The 7 to 11 per cent revenue hit. Raj Nayak. Says Mr LS Nayak. Star TV. when we took stock of the situation in terms of the total volume of business in the last one year. STAR India: “Not really. According to industry sources. that the Indian television industry faced after the ban on direct and indirect liquor and tobacco advertisements. Executive Vice-President . social messages are a route to liquor advertising for many. if not for their brands. Q. which used to show the popular Bacardi advertisements among others. Even if you look at surrogate advertising of tobacco products.

the Kishore Lulla-promoted channel which was airing a lot of liquor ads such as United Distillers and Vintners (UDV). 19 . thereby influencing a lot of young people. some of the liquor brands continue to stay on the channel. another channel to get hit by the liquor ban. "If the product will continue to be produced and marketed.'' But she adds that with surrogate ads continuing. Sony Entertainment Television (SET). warn industry sources. head of sales. The companies have an advertising budget maximum of which is spent on television. For instance music got quite a patronage with the Charms Spirit of Freedom Concerts featuring Indian classical music to the Western bands such as Rock Machine. when you spread their monies across various channels. when the government issued an ultimatum to the channel to stop all liquor ads. fashion and music. "Event marketing has benefited sports.Gutka and pan masala advertisers definitely spend a lot on television. Says Ms Kacon Sethi. is not forthcoming on its revenue loss figure. says the Zee spokesperson. B4U continued airing liquor ads much beyond the ban deadline. channels are showing ads of soda. In fact. However. that Zee's projection should be taken with a pinch of salt. water and even T-shirts being manufactured by liquor and tobacco companies during the day also. there is no point in restricting its advertising. as stated above. Advertising agencies have taken a stance that it's unfair to ban advertising. With no control on surrogate ads. since the product itself is not banned. B4U. But. The channel was in the process of striking further deals with the UB Group. Sony: ``We don't have any specific plans to overcome the revenue loss due to ban on liquor ads. puts its revenue loss at 5 to 7 per cent. Radico Khaitan and Mackay. there are no means to check surrogate advertising. it is not a huge sum of money”." they generally feel. It's like a drop in the ocean. Shaw Wallace. Gilbey's Green Label Whisky and Smirnoff till recently. Zee says its revenue loss is 2 per cent. Also.

Surrogate advertising is the promotion of a product. The masked creative leave it to the consumers to read between the lines. through indirect and devious means. For instance. The literal meaning of ‘Surrogate advertising’ is duplicating the brand image of one product extensively to promote another product of the same brand. however.SURROGATE ADVERTISING Tobacco & liquor advertising does more than offer a high.June 14. advertisers have frequently used methods such as "surrogate advertising" to promote such products. previously limited to forms of media such as terrestrial television and radio which were easier to regulate. With technological advances such as satellite television and the Internet. The advertising of socially harmful products such as tobacco and alcohol has been sought to be restricted by Indian lawmakers. In India. as a popular medium of paid communication has drawn public ire time and again for moving away from the truth and the consumers ‘right to know’ to providing false images. it promises a sophisticated lifestyle that stems merely from holding a cigarette or hard drink. 2003. Such prohibitions were. Advertisement. it is not unusual to find a brand associated with cigarettes to be used to advertise a competition/event. SOURCE: The Economic Times (Corporate Counsel section). 20 . advertisers have been finding ways to circumvent restrictions to achieve their goals. the advertising industry has been largely self-regulated. To circumvent the regulations. an advertiser would use the trademark/brand of a product for which promotions are restricted/prohibited to promote a product the advertisement of which is permitted. Typically.

The imagery used in most of the commercials is that which one can associate with alcohol. In the next shot a kind of mysterious force pulls the two guests. Another lady also finishes her drink and places the glass on the tray. To explain…. where English housewives protested against liquor advertisements as. the two glasses keep brushing against each other… and so do the young couple. who bump against each other. Apart from brand names they assort the products with seems like machoism. dim lights.‘surrogate advertising’ is a politically correct term used to define fraudulent pieces of communication. soda water bottles.. apple juices. people partying and doing merry together. Let’s take an example how it works. mineral water and other product ads we see. A gentleman finishes his drink and hands over the empty glass to the waitress. As the waitress carries the empty glasses.they felt that these ads were weaning their husbands away from them and hence perceived as a threat. In ad parlance. but also in other countries including India dealt with resistance by advertising cocktail mixtures. all those playing cards.This advertisement gimmick has its genesis in U. guests are enjoying their drinks and chatting away.K.K. On both the glasses ‘AC Black Apple Juice’ is printed. Even as the dance between the two glasses goes on in full 21 .. etc. The liquor and the tobacco barons not only in U. the two AC Black ones knock against each other. fruit juices. apparel. For example. While waitress continues to carry the tray.a party is going in full swing. scantily clad girls. are actually clever promotions for liquor and cigarette brands by the same name.

kuch bhi ho sakta hai" (Anything is possible). Some of the Four Square campaign storefront and bus stop advertisements contain the black and white photograph with a man holding a red square on one end and an open pack of cigarettes on the other. Finally having cleaned the glasses. the logo. and the slogan. Continuing with the pattern. the young dancing partners too find themselves in pouring rain. and magazine advertisements are composed solely of the photograph. The Four Square billboards. the impact is felt in equal strength by the couple. The glasses are taken for a wash. 22 . ostensibly to scare away smokers and thereby save their lungs and their lives. The voice over says: "AC Black Apple Juice. others just contain the photograph with the text. posters. What’s surrogate about advertising? The I&B Ministry had instructed the TV channels not to carry surrogate advertising. In addition. This is evident in the evolution of the current Four Square campaign. placed beside each other.. brand imagery can be communicated without reference to cigarettes. the only mention of cigarettes is in the statutory warning. and are placed under the rush of tap water. the waitress keeps them for drying.scale. This was in addition to the news that cigarette packets would now have to carry “gory” pictures. The amazed guests look on as the couple also stands immobilized side by side. "four square the man with the smooth edge" and three red squares.

If it is legal to manufacture.Let’s take the second point first. And every so often one views advertising of CDs. events. That brings us to the first point. The advertiser’s perspective is fairly straightforward. If this was not the case. execute jobs irrespective of whether they are legal or not and try and shore up their bottom line. magazines and on hoardings. what about events on satellite TV that are sponsored by tobacco and liquor companies? Tune into the coverage of Formula 1 racing at you will see cars racing around circuits of the world with the names and logos of tobacco and liquor companies emblazoned on every part of the vehicle and the driver. they will surely die of laughing at these half measures. airlines. cassettes. The picture of a scorpion on a cigarette packet is probably the most ludicrous attempt at scaring anyone away. Does this mean that ITC cannot advertise its products in Indian events even though it is a major contributor to the exchequer in terms of excise and duties. Every so often one reads of the “strict” rules that ban tobacco and liquor advertising. If it has been established conclusively that cigarette smoking kills. If the smokers do not die of lung cancer after merrily continuing smoking cigarettes from packets that carry the scorpion picture. one would at least ask for a level playing field. Let’s examine the case for and against surrogate advertising from different perspectives. What about the advertising agency’s point of view? I frankly don’t think they have one. It is this propensity of the Government to convert its feeble attempts at regulating the powerful tobacco lobby that never ceases to amaze me. They will implement strategy for their clients. why should it be illegal to promote the sale of that product? I don’t think anyone can answer that question convincingly. at every street corner? And even if surrogate advertising for cigarettes is effectively banned. stores. mineral water. 23 . distribute and sell a product. newspapers. why is it that it is available to anyone. which is smuggled freely onto the streets of India. irrespective of his or her age. while Marlboro. you would not have surrogate advertising. can subliminally implant itself in the minds of the smoking public that watches this coverage? Assuming that tobacco companies even have a case to advertise. awards and any other product with the brand names of major tobacco and liquor companies on television.

it means that surrogate advertising is not just legally wrong but also unconscionable. And a large chain of lifestyles stores called Wills. Nor would Yogi Deveshwar. Then why is there surrogate advertising? Does it mean that those indulging in it are not law-abiding citizens? The short answer is “yes!” Tobacco and liquor companies have the right to knock on the doors of the judiciary and the legislature to seek redress from rules or laws they feel are unfair or wrong. Advertisers like ITC went ahead and set up a chain of lifestyle stores under the name and style of a cigarette brand they owned. It was expedient to allow them to grow into large legitimate businesses and then deem them legitimate. And they are both honourable men. This was when there were already rules and laws in place that expressly forbade this. And society and statute does not give me that right. If the Government was serious about enforcing its rules and laws it could have put a stop to these names years ago. Yet. Having got that out of the way. Advertisers such as United Breweries went ahead and set up an airline with a brand name. Now one can say that you cannot have a 24 . I would have to agree that society in its wisdom and the law in its majesty enjoins certain restrictions on me and my public behaviour.Now let’s think of the consumer. An equally legitimate business. God know they have the money. And that is the point I want to make. Today we have a large airline that is a legitimate business called Kingfisher. and if I do not agree with such restrictions I have the right to appeal against them to the judiciary or lobby for legislative change. Sounds very simple and straightforward. Well. I cannot plead that I should have the right to do what I wish. as a consumer. That would perforce mean I have the right to commit suicide. even Vijay Mallya would not be able to tell you with a straight face that his airline was named Kingfisher at a time when it was legal to do so. legal wherewithal and political patronage to do all of these things. If they have not been able to do it. I am expected to be a law-abiding citizen. colour and logo style that was the same as a liquor brand they owned. In the meanwhile. including the consumption of tobacco in whatever form.

mineral water under the same brand name as that of their popular whisky. The point to note is that there is nothing surrogate about advertising. Advertising of alcoholic drinks in India is not permitted. some manufacturers of whisky or similar products launched brands of soda. Of course it would be. And you have a Member of Parliament whose intentions could definitely be construed to point at encouraging surrogate advertising. There is something surrogate about ethics and values and a sense of right and wrong. And the consumer must be the ultimate judge. the advertisers take the shelter of a brand extension. 25 . Would any of these be “right”? Certainly not. Hence the meaning of ‘Surrogate advertising’ is duplicating the brand image of one product extensively to promote another product of the same brand. And you have pious corporate social responsibility programmes from a tobacco company that freely endorses surrogate advertising. The advertising is purely incidental. Do you want to patronise the products and services of companies who are legally correct. Advertisers must decide what is right and what is wrong. That merely locks the doors after the horses have fled. And so you have an actress who was hailed as the only “man” in Bollywood endorsing a bravery award named after a cigarette brand. or really correct? That’s a choice you have to make.The Positive Side When the laws of a country do not permit advertising of a certain product category. Forget the advertising agencies. Surrogate Advertising . How will you decide that a business is legitimate or not? Would Bacardi Blast cassettes and CDs be seen as legitimate. To by pass this.product (other than the liquor brand) called Seagrams 100 Pipers. They are too small in this game.

Hence the stores serve as effective brand wagon for the cigarette brand.V. Even the event marketing of sports. fashion & music. Brief examples along with modus operandi have been mentioned below. Another glaring example in this field is Manikchand-a major gutka manufacturer who sponsor Manikchand-Filmfare Awards and promotes its brand name. channelCNBC India through sound bytes like Amitabh Bhachan. Wills Life Style was declared ‘the most admired exclusive retail chain of the year’. At 2003 Images Fashions Awards. While the most interesting amongst them is the Hayward’s 5000 beer. United Breweries group been associated with formula one racing since long through its flagship beer brand king fisher. which uses dart boards as their surrogate product in their ads and the brand has gone one step further by associating itself with a new sport ‘darting’ and is sponsoring national dart championships. Seagram-the producer of the premium whisky Chivas Regal have been promoting Chivas Regal Championships and Chivas Regal Invitational Golf Challenge for corporate executives. Wills Life Style is a chain of specialty stores providing exclusive designer collection. Celebrity endorsements with Shatrughan Sinha for the Bagpiper soda to the leading stars such as Akshay Kumar for the Red & White Bravery Awards while Johnny Walker Scotch Whisky promotes a series of successful stories on the T.POPULAR EXAMPLES OF SURROGATE ADVERTISING & WHATS IN STORE Todays media is full of examples which bring out the best of surrogate advertising. The alcohol based brand sponsors sports and receives visibility via advertising and below-the-line marketing. Event marketing has benefited sports. fashion & music has not been spared from surrogate advertising. Mc Dowell & Co. has associated its umbrella brand McDowell with sport of derby. The alcohol based brand sponsor sports and receives visibility via advertising and below-the-line marketing. 26 .

Earlier. Internationally beer brands such as Fosters and Lion have supported cricket in Australia and Sri Lanka respectively. the ICC World XI Vs Australia series to be held Down Under will be called the Johnnie Walker Super Series. According to media planners." they added. as both the series are being held outside India it would be difficult for the Government to blip out the liquor brands. "Since the matches will be beamed into Indian drawing rooms live. Royal Stag has roped in Zimbabwean ViceCaptain. a few liquor companies have been advertising during the ongoing cricket series as well. "However. the brands will enjoy good visibility. exemptions could be granted on a case-by-case basis. like the one granted to Kingfisher Airlines. A few months ago. polo. 27 . the India and Zimbabwe Test series will be called the Royal Stag Cup. In fact. and India's Harbhajan Singh.cricket. companies are now turning towards the game of the masses . in an interaction with Government officials." they had said. Even as liquor brands have traditionally been associated with upmarket sporting activities like golf. Immediately after the triangular series at Zimbabwe (of which Royal Stag was the associate sponsor). derby and yachting. Till date Royal Stag has used several international cricketers as brand endorsers. In fact. liquor companies seem keen to bat out the ban. This is the first time the company has forayed into tournament sponsorship. surrogate advertising made a comeback on television. Heath Streak as their new Royal Stag brand ambassador. The Information and Broadcasting (I&B) Ministry's efforts to ban surrogate advertising of liquor brands has reached a naught. channels were categorically told that there is a complete ban on advertising by liquor companies. Similarly. Other celebrity Royal Stag cricket endorsers include Australian Cricket captain Ricky Ponting. it had sent out notices to various television channels to withdraw advertisements by liquor companies. But within a few weeks of the notices being issued.WITH the Government trying to clamp down on surrogate advertising. the latter half of the current year will see liquor brands as the title sponsors of two major cricketing events featuring India. Meanwhile.

Rather. Q. 8 PM is our brand extension and a legitimate product. It has to first receive complaints. With surrogate advertising also on in danger of being banned what do you plan to do? What will happen to your surrogate products? What is the media strategy that you would adopt? 28 . Radico Khaitan -"Surrogate advertising ban would not hamper our plans to a large extent because there are a number of alternative media through which you can always address your consumer." said official sources. Executive Director." Q. Apple Juice was an extension to this only and therefore has helped us in retaining the same. the image of 8 PM whisky helped us sell the apple juice”. "The Government cannot suo motu issue show-cause notices. Whether or not surrogate advertising should be allowed has been constantly debated in the industry. I would not say 8 PM Apple juice is a surrogate product.The Government is also handicapped by procedure wherein it can take action against channels only after receipt of complaints. Regional Creative Director of McCann Erickson -"It is a greyarea. OPINIONS: Mr Prasoon Joshi. It is just an extension of our business and this sector has been doing well and contributing to our revenues. How successful has this been in terms of brand awareness of 8 PM whisky? Answer: Abhishek Khaitan. We are looking at other flavours of juice. I myself have not come to a conclusion.8 PM advertisement has always been admired by the consumer therefore the recall that we have or enjoy with our consumer base is phenomenal as compared to other brands. Radico Khaitan. Abhishek Khaitan. Executive Director. There is no one solution. Liquor companies on their part state that their advertising is self-regulated and comply with the Indian Broadcasting Foundation and the Advertising Standards Council of India code. Like all other players you have also taken to surrogate advertising by launching 8 PM apple juice.

Surrogate advertising is the biggest loophole we have in this large pie of legal advertising. Q. Why surrogate advertise at all? If something is not allowed to be advertised at all why. are all at the top rung of the caste ladder we build for brands. The bread you eat and the soap you use to bathe and indeed the water you drink out of bottles and pay more than what you pay for the litre of milk. do you think it achieves its objectives? Answer: R Balakrishnan. Q. Lowe Executive Creative Director -Huge.Surrogate advertising ban would not hamper our plans to a large extent because there are a number of alternative media through which you can always address your consumer. this loophole? Answer. The first is the socially acceptable category. Consults. What kind of loss is the industry looking at with the ban on tobacco ads? Answer: R Balakrishnan. Harish Bijoor. And then slightly below each of these highly legitimate products are items of luxury. Items that fall in the first category are products and services that are legal. Q. it would be about a Rs 200 crore (Rs 2 billion) loss. As far as our strategy on this account is concerned. The real top end luxury sedan! That Swarovski crystal duck that costs more than what a family of four can feed and clothe themselves with for a whole five years! These are 29 . Radico Khaitan. Lowe Executive Creative Director-Surrogate advertising achieves its objectives as long as people don't believe its surrogate. There is therefore in modern marketing society a caste hierarchy of products and services. The second is what I dub the “social ostracism” category. it's not surrogate advertising. As long as people know what product is being promoted. Products that don’t go against social sanction and societal niceties as well. Lowe did not handle a lot of cigarette business. Surrogate advertising. Brand-Domain Specialist and CEO. To put together the whole tobacco advertising industry. Quite a big loss. Executive Director. Products that have positive social sanction and products that do not contravene the law of the land in touting of the product. Legitimate products that enjoy social acceptability and sanction sit right on the peak of this caste structure. I categorise products and services that we tout as brands into two categories.Answer: Abhishek Khaitan. we would not like to reveal that at this juncture.

These are brands that walk just above the thin Plimsoll line of social acceptability and sanction.UB's Bagpiper Soda and McDowell's water have sold 1. Kingfisher (which is incidentally a bird to start with) is an aggressively advertised Mineral Water as well! And 8 PM is an Apple Juice! And then there are aggressively advertised Playing Cards. Therefore. Real stringent laws of the land! Vijay Rekhi. At times these are products and services banned by governments at large in the interest of their people and processes at large. Some of these products and services are items such as cigarettes and liquor which go on the platform of health and social sobriety. INSIGHT ON THE TOBBACO INDUSTRY Some Quick facts  Cigarettes cause about 6. These are products and services that defy issues related to health and well-being.And then. UB Spirits Division President. bowing to the law of the land.35 lakh deaths in India every year. right at the bottom of the legitimate products pyramid lie products and services that do not enjoy social sanction. Wait for a comprehensive ban on all kinds of surrogate advertising soon! And this is when the Wills Lifestyle store just might have to change its name altogether. which is banned in Singapore! And of course of late we had issues in India with the banning of political party campaigns on the electronic medium! In all cases where there is a ban on advertising of the product and service. brand advertising budgets of which must be gobbling up more than a hundred times the turnover of the product category in question itself! Surrogate advertising of all types has a limited life span in our society as of today.5 million cases and yet were being treated on par with the non-existent product extensions of other liquor companies. clever marketing people seek to overcome such bans through the use of surrogate means. And then there is Chewing Gum.categories that are legitimate but cue the top end of the consumptive race and its peccadilloes. And then there are services such as the long-distance ostensibly “Friendship Calls” that are advertised at times to lure the gullible to listen in to a foreign voice that is more interested in your ISD call charges piling up than your friendship. 30 .

the major tobacco companies are increasingly targeting India as their new growth market. Two and a half thousand Indians die every day from smoking related diseases one every 40 seconds. According to estimates by the World Health Organisation (WHO).  About 33 per cent of cancer cases are attributed to tobacco consumption. 250 million Indians use tobacco. India has one of the world's highest rates of mouth cancer. who are almost fanatic about it see their icons being associated with a cigarette brand.  However.some of them possible carcinogens.5%. "It's very careful target marketing where they're looking at young people who watch the sport. Cigarettes account for only 18. .5 minutes. Bidis account for 53.  Tobacco trade is a major contributor to the national exchequer. Volume consumption of cigarettes declined sharply in 2001. with every cigarette reducing the life of smokers by 5. mixed with lime. . and the market's already worth a massive $5 billion. The share of cigarettes in tobacco consumption has been declining steadily. spices and other substances . Cricket is the only common religion in India. considering that 60 per cent of the Indian population accesses health care by taking on loans or by selling property & assets. cigarettes alone account for roughly 10% of excise collections. who used to be in marketing with the Indian Tobacco Company (ITC). even though bidis have a higher nicotine content. As a result. Bidis are stronger and cheaper than white cigarettes. says Suhel Seth. and is not so heavily taxed. The economic and health costs of this consumption are staggering. and the balance is mainly non smoking tobacco (NST) products. 8 lakh persons die from tobacco related diseases every year in India alone. And they don't only smoke it: many Indians chew tobacco.8% of domestic tobacco consumption in India. and are the preferred smoke of Indians across the country but especially in the northern regions. Already.8 billion 31 . falling to a record low of 87. It's more than sponsorship. and 50 per cent of India's population under the age of 25." The Indian smoking tobacco market is dominated by the indigenous bidis in volume terms. The bidi industry enjoys political protection. With declining markets in the West.

down from its peak at 104. but more recently it has also been growing in the economy price band segment The concept of low tar or low nicotine is not significant in India. Its two competitors Godfrey Philips India and VST also reported some growth in sales volume over the same period Prices of cigarettes have been rising constantly.Retail sales of manufactured cigarettes are also being adversely affected by contraband.sticks in March 2004. with the excise duties on cigarettes increasing each and every year from 1998 up to 2001. contraband is strong in the premium end. Filters and Minis India’s leading tobacco manufacturer ITC reported a 4% growth in cigarette volumes year-on-year for the period April to August 2002. The standard varieties in cigarettes are Kings. Duties were left unchanged in 2002 giving some stability to prices The current view in the industry is that cigarette sales are in decline and that the habit has become less popular with the young There have been increasing problems for the domestic cigarette industry. Advertisers 32 . compared to a decline of 9% in the same period in 2001.2 billion sticks in March 1998. There has been a movement in consumption patterns towards smokeless tobacco . the volume share of which is estimated to have risen to nearly 12% in 2002. Smoking is being gradually curbed in public places. from 1% in 1997. colour and logo style that was the same as a liquor brand they owned. There is growing health consciousness among the premium cigarette smokers Growers and manufacturers realize that diversification is the only long-term solution available to the industry State Governments are becoming more stringent with their regulations: smoking on railway platforms is strictly prohibited and a number of companies are making their entire premises smoke free More recently Advertisers such as United Breweries went ahead and set up an airline with a brand name. Cigarette sales have been adversely affected by rising excise duties and legislation against public smoking. Traditionally.

And you have a Member of Parliament whose intentions could definitely be construed to point at encouraging surrogate advertising. This was when there were already rules and laws in place that expressly forbade this. or really correct? That’s a choice you have to make. Nor would Yogi Deveshwar. And you have pious corporate social responsibility programmes from a tobacco company that freely endorses surrogate advertising. Do you want to patronise the products and services of companies who are legally correct. And a large chain of lifestyles stores called Wills. Of course it would be. even Vijay Mallya would not be able to tell you with a straight face that his airline was named Kingfisher at a time when it was legal to do so. If the Government was serious about enforcing its rules and laws it could have put a stop to these names years ago. Today we have a large airline that is a legitimate business called Kingfisher. There is something surrogate about ethics and values and a sense of right and wrong. An equally legitimate business. Yet. It was expedient to allow them to grow into large legitimate businesses and then deem them legitimate. They are too small in this game. The advertising is purely incidental. And so you have an actress who was hailed as the only “man” in Bollywood endorsing a bravery award named after a cigarette brand. Would any of these be “right”? Certainly not. And the consumer must be the ultimate judge. And they are both honorable men. Now one can say that you cannot have a product (other than the liquor brand) called Seagrams 100 Pipers. Forget the advertising agencies.like ITC went ahead and set up a chain of lifestyle stores under the name and style of a cigarette brand they owned. How will you decide that a business is legitimate or not? Would Bacardi Blast cassettes and CDs be seen as legitimate. The point to note is that there is nothing surrogate about advertising. That merely locks the doors after the horses have fled. Advertisers must decide what is right and what is wrong. 33 .

A committee has been set up to look into the issue.which have been using surrogate advertising extensively to sell liquor. and liquor companies such as UDV. alcohol. Both Zee and Star have agreed to withdraw the ads. The Ministry had issued show-cause notices to broadcasters such as Star. tobacco products. Royal Challenge Whiskey (Golf Accessories) and Kingfisher beer (Water). wine.RENFOURCEMENT OF BAN & OTHER MEASURES TAKEN BY GOVERNMENT Following the restriction on advertising and ban on sports sponsorships last year. feeding bottle or infant food. ITC-GTD’s (greeting cards division) Expression Greeting Cards. Five other brands have come under the magnifying glass now . no broadcaster is permitted to show advertisement which promotes directly or indirectly promotion. Zee.Charms cigarette. Domestic liquor majors have been facing increasing competition from international 34 . The Information and Broadcasting Ministry is planning to go hard on surrogate advertisements by cigarette and liquor companies. Cigarette companies such as ITC and VST. According to Rule 7 (2) of the Act. The committee will review various advertisements and determine whether a particular advertisement would be categorized as surrogate advertising or not. Gilbey’s Green Label ads. sale or consumption of cigarettes. infant milk substitution. Bagpiper soda water. The clamping down on surrogate advertising will weigh heavily on these companies. The advertising of products would be considered surrogate if there was a clear recall of the actual products. Smirnoff Vodka (both of which sell audio cassettes and CDs). The Ministry has already clamped down on two brands . Haywards 5000 (darting kits). The so called surrogate ads under scrutiny are: McDowell’s Mera Number One. UB now face another hurdle.McDowell No 1 and Gilbey's Green Label . Kingfisher mineral water. McDowell. Red & White Bravery Awards and Wills sportswear. 1999 for carrying surrogate advertising on liquor & tobacco. while the other channels are expected to follow suit. 8PM apple juice. Sony and Aaj Tak seeking explanation why action should not be taken for violation of Rule 7 of the Cable Television Networks Rules. liquor or other intoxicants.

brands launched in the country by leading global liquor majors post removal of restriction on imports. Or will the ITC clout be strong enough to convince the regulators that Retailing is a full-fledged business undertaken by ITC. to discourage adolescents from consuming tobacco products  No person engaged in tobacco products-related activity will advertise and no person having control over media shall advertise tobacco products 35 . But the new notification issued in February 2008 that puts a total ban on tobacco and alcohol commercials on TV has put commercial interests and existing contracts amongst advertisers and broadcasters in a bind. As of August 2006. The cigarette majors too have been facing diminishing growth in volumes for the last few years and rising competition from cheap smuggled products. Restriction on the most effective medium of advertising ie television would obviously hamper brand building.  Ban smoking in public places  Forbids sale to persons below the age of 18 years. Some of the other measures taken by the government are as follows CURB ON TOBACCO  Union Health Ministry has issued directives banning all smoking scenes in films as well as on television. the government had taken a lenient view and allowed advertisements of products with the same name as cigarettes or liquor to be aired if there are no direct or indirect references to such 'prohibited' products. It remains to be seen if Retailing Initiatives under the Wills Lifestyles brand by ITC is also considered a form of surrogate advertising. Brand strengthening activities would naturally be curtailed if the ban on surrogates were implemented effectively.

eighty questionnaires were given to individuals from diverse background. Q. who are the main consumers.25 43. The second target segment consists of people from diverse backgrounds or the general segment.75 36 Yes No 95 Advertising SegmentA staggering 95% of the sample from the advertising companies felt that a ban should be imposed on advertising of Tobacco & Liquor.ANALYSIS OF THE PRIMARY DATA In order to have broader & balanced sample.1 Do you think we require any ban on Tobacco & Liquor advertising? Openion of Respondents (%) 100 90 80 70 60 50 40 30 20 10 0 Advertising General Segment Overall 5 64 56. twenty were given to people in advertising sector. As low as 5% of the sample from the 36 . While out of the total hundred questionnaires. there were two target segments that were identified first being the advertising companies who actually understand the market. The questioners were distributed to advertising companies and also to individuals or general public (consumers). analyze the requirement of the client & the target customers and accordingly design advertisements to communicate the desired message effectively.

Q. 56.25 % are in favor of a ban being imposed on advertising of tobacco & liquor.Advertising companies. ConclusionAs much as 64% of the sample is in favor of a ban being imposed on tobacco & liquor advertising. This clearly shows that a majority of people feel that the ever rising consumption & ills of consuming tobacco & liquor can be controlled by putting a ban on advertising tobacco & liquor. as against a 36% who feel that no ban on tobacco & liquor advertising is required.2 Do you think the government has been successful in controlling the consumption of tobacco & liquor by imposing a ban on Tobacco & Liquor advertising? Number of Respondents (%) 80 70 60 50 40 30 20 10 0 Advertising General Segment Overall 36 30 35 Yes No 70 64 65 37 . other than those from advertising segment. On the other hand 43. This reflects that the majority is in favor of the ban introduced by the government on liquor & tobacco advertising. OthersAmongst the sample.75 % of the audience from the general target audience says that no ban is required on the advertising of liquor & tobacco. believes that a ban on advertising of Tobacco & Liquor is not required.

Other. a larger part of the sample .While 36.3 Which one of the following do you consume? In order to be able to analyze the feedback of the people constituting the sample it was important to know there preference for tobacco & liquor. Q.i. Only 30 % of them consider that government has been successful in this endeavor of their. 38 . Since the liquor & tobacco manufacturers have found alternate means of promoting their products. 65% of the sample considers that the government has failed in its endeavor to control the consumption of tobacco & liquor by imposing a ban on its advertising.Advertising SegmentIn the opinion of as many as 70% of the sample from advertising segment. The response to the above question shows the opinion of the masses & highlights the inability of the government to achieve its objective of curbing the consumption of the tobacco & liquor.e.25% of the sample feels that government has curbed the consumption of tobacco & liquor by imposing a ban on their advertising.63.75% feels the ban has not helped the government achieve its objective ConclusionAs against 35% of the sample who have voted in favor of the government measure. the government has not been successful in its attempt to control the consumption of tobacco & liquor by putting a ban on their advertising. the ban has not been successful putting restriction to the ever increasing demand of liquor & tobacco.

The result shows majority of the sample being consumers of tobacco &/or liquor. 4% consume only tobacco. 2.5 General Segment 4 Overall 20 24 None Advertising Advertising SegmentOut of the twenty people belonging from the advertising background 10% of them consumed both tobacco & liquor. this implies that the data collected from this sample provides a realistic base for analysis.Consumption Pattern of Respondents (%) 80 70 60 50 40 30 20 10 0 10 10 75 63.75% agreed on their being consumers of liquor alone. 10% consumed only tobacco. Manikchand Filmfare Awards? 39 . Bagpiper Soda. Q. OthersIn case of the general sample or the sample constituting of general public 22. ConclusionOut of the total sample size of 100.25 5 2.4 What comes to your mind when you see advertisements like Red & White Bravery Awards. 52% consume only liquor and 24% dose not consume any of the two.25% of them consumed none. those who consumed liquor only constituted for 5% of the sample.i. 75% of them said they consumed none of the two. 20% consume both tobacco & liquor.75 52 Tobacco & Liquor Tobacco Only Liquor Only 22.5 11. Royal Challenge Golf & club Accessories. 11. But 63. Aristocrat Apple Juice. However majority of them .5% consumed only tobacco.5% people said they consume both tobacco & liquor.e.

25 17.e. OthersIn the general target segment. 17. 42. 46. Conclusion- 40 . While 22.5 46 Reminds of Core Product 30 5 5 46. However 30% of the target segment in the sample feel that for them surrogate advertisement are advertisement of only the product being shown there in & not of the brand or core product.5 22.5% say that for them surrogate advertising is just another which. liquor or tobacco.5% of those who were part of the sample feel that surrogate advertising induced in them the desire to increase the consumption of liquor & tobacco.140 120 Openion of Respondents (%) 100 80 60 40 60 20 0 Advertising General Segment Overall 42. tries to market the product being advertised.25% of the people from whom the data was collected said the surrogate ads encourage them to consume liquor & tobacco. Another 5% of them feel that surrogate advertising makes them feel like consuming more of the liquor or tobacco.5% of the people feel that the surrogate advertisements remind them of the core products i.5 20 19 38 Associate to Product in the Ad Encourages Increased consumption Encourages to Consume Advertising SegmentA strong 60% of the target segment says the surrogate advertisement reminds them of the core product that is the liquor or tobacco. 5% percent of the people in the sample feel that the surrogate advertising encourages them to consume liquor or tobacco.

Q. 20 Advertising Percentage of Respondents (%) Overall. 25 Overall. All this was obviously for the very basic cause. 75 Overall.75 Advertising. Only a small 41 . surrogate advertisements also create desire in the viewers to increase their consumption of tobacco & liquor. Based on the response to this question it can be said that surrogate advertising does its job well because 46% of the respondents correlate to the core product. they needed to promote there product & maintain a strong brand recall. 8 General. As per 19% of the people in the sample. 38% of them are encouraged to consume tobacco & liquor.The very reason for which the liquor & tobacco manufacturers took to surrogate advertising was that in the presence of the ban. whose brand is being advertised. 57 Overall General. that is maximize sales volume & to have a bigger customer base. 5 Advertising. Only 20% of the people feel that for them surrogate ads are just an ad of the product being promoted in the advertisement & not of the core product or brand.25 General Not Familiar but Not Familiar & Not Aware of Concept Aware of Concept Familiarity & Awareness Advertising SegmentIn the advertising segment of the sample 75% of the people said they were not just familiar with the term surrogate advertising but they also knew the concept. 35 General.5 Are you aware of the phenomenon of Surrogate Advertising (as mentioned above) 160 140 120 100 80 60 40 20 0 Familiar & Aware of Concept Advertising. 8. 66.

6 What according to you is the root cause that led to surrogate advertising? 42 .25% said they were not aware of the term surrogate advertising & the concept. Q. OthersAmong the general target segment the majority constituting of 66. Remaining 8% were only familiar with the term but not of the concept.section. 57% said they were not aware of surrogate advertising as a term & concept.75% of people said although the new the concept but they did not know the term surrogate advertising. constituting 5% of the respondents from advertising and media target segment said even though the new the concept. ConclusionIn order to understand the awareness & comfort level of the target segments. Out of the remaining 35% said that they were familiar with both the term & concept of surrogate advertising. 8. Out of the total sample of 100. they were not familiar with the term. While 25% people said they were familiar with the term surrogate advertising & also knew the concept. it was important to determine there knowledge about the topic of the study. this means that while some would consciously realize of why surrogate advertising of core brand is being done. The response to the above question highlights the lack of awareness in people about surrogate advertisement. others might not be equally receptive to the message of the ad. 20% were unaware of both the term & concept of surrogate advertising. The result shows that surrogate advertising is a less known fact to a layman & hence the surrogate adds would have a mixed impact on the audience.

5 Overall. attributed the existence of loopholes in the law created to ban advertising of liquor & tobacco as the root cause that led to surrogate advertising.e. surrogate advertising exists because it leads to better brand recall & increased sales of the core product. 43 .i. 40 Advertising General Overall. In the opinion of 40% of the people from advertising segment. 20% of the respondents feel that surrogate advertising is an outcome of increased competition among the liquor & tobacco giants.Percentage of Respondents (%) 180 160 140 120 100 80 60 40 20 0 Loopholes in Ban on Advertising Advertising. 20 Pressure of Incresed Competition & Ban General. 50% of the respondents feel that surrogate advertising has emerged from the loopholes existing in the laws directed towards implementing the ban. 20% respondents felt that surrogate advertising was an outcome of the increased competition among the liquor & tobacco giants & this is what forced them to take up advertising in one form or another. 28 General. OthersWhile 57. 57. 39 General. which forced them to advertise in one form or another.5% of those belonging to the general segment. 20 Advertising. 40 Advertising. For 40% of the general segment who responded to the questionnaire surrogate advertising emerged because it leads to better brand recall & helps in increased sales of the core product. 50 Overall. 56 Overall Better Brand Recall due to Surrogate Ad's Root Cause of Surrogate Advertising Advertising SegmentMajority of the people from the advertising segment of the sample .

Adding to the findings of question 4 of the questionnaire ConclusionOut of the total sample size of 100. is what has lead the liquor & tobacco giants to take up surrogate advertising as an alternative to the ban. Q. Another 39% of the people said surrogate advertising exists because it leads to a better brand recall & leads to increased sales of the core product. The above response reveals the large success story of surrogate advertising. results in cut throat competition.7 Do you think Surrogate advertising is good for the core brand itself ? 53 Openion of Respondents (%) 52 51 50 49 48 47 46 Advertising General Segment Overall 50 50 49 48 Yes No 52 51 44 . The results mentioned above in addition to the response to question 4 of the questionnaire out rightly shows that surrogate advertising results in a better brand recall & increased sales. in the opinion of 56% of the people the root cause of why surrogate advertising exists is that there are loopholes in the laws that were created to implement a ban on advertising of liquor & tobacco. This is the view point that 28% of the respondents share. as they feel the pressure to advertise in form or the other to compete in the market. Like any other industry the liquor & tobacco industry also has lots of players which.

This reveals that surrogate advertising needs to planned & executed very carefully as it plays a critical factor in making or breaking of the brand image & exclusiveness of the brand. 49% of those who responded to the questionnaire feel that the surrogate advertising is not good for the core brand itself. Q. On the contrary 48% feels that surrogate advertising does not contribute in a positive manner to the core brand. is it truly beneficial for the core brand itself or does it erode the essence & the brand image of the core brand? The feedback that was received from the Advertising segment of the sample indicated a mixed opinion. While 50% of them felt that the surrogate advertising is good for the core brand & does benefit it. the other 50% felt that surrogate advertising has a negative impact on the core brand. OthersTalking of the general segment.Advertising SegmentSurrogate advertising. it might lead to adverse impact on the brand. While 51% of people are of the view that surrogate advertising is good for the core brand itself. There is high risk that if surrogate advertising is not executed correctly.8 Do you think that surrogate advertising leads to increase in consumption of liquor & tobacco? 45 . 52% of the people are of the view that surrogate advertising does good to the core brand itself. ConclusionTaking a look at the comprehensive picture there is very small difference between the number of people who feel surrogate advertising contributes positively to the core brand.

this is the belief of 57.5% of the respondents from the general segment. highlights the success of surrogate advertising in achieving the key motive. 30% of people from the same segment are of the belief that surrogate advertising dose not lead to any increase in sales of liquor & tobacco.5 80 Yes No 20 Overall Advertising SegmentIn the opinion of 70% of those belonging to advertising segment. OthersSurrogate advertising dose lead to increase in the sales of liquor & tobacco. Where as another 20% of those who responded to the questionnaire were of the view that surrogate advertising dose not result ssupport the belief that surrogate advertising results in increased consumption of liquor & tobacco.Openion of Respondents (%) 90 80 70 60 50 40 30 20 10 0 Advertising General Segment 30 70 57.5 42. which is increasing the sale of the core brand being advertised in them. ConclusionIn the overall context 80% of the respondents said that liquor & tobacco sales increased as an outcome of the surrogate advertising. However 42.5% of the respondents are of the view that surrogate advertising d ose not contribute to the increase in the sales of liquor & tobacco. surrogate advertising leads to increase in the consumption of liquor & tobacco. 46 .

 As compared 52% of the respondent who consume only liquor. when asked if the government was successful in imposing the ban on liquor & tobacco advertising.  The success of the government in imposing the ban is evident from the fact that 65 % of the total respondents have firmly said No. though here it’s a bliss for the tobacco & liquor manufacturers 47 . only 4% of the respondents consume tobacco alone. This also supported by the fact that only 20% of the respondents consume both tobacco & liquor.  As many 57% of the respondents were not aware of both the term surrogate advertising & the concept. This shows that ignorance is bliss. This shows that there is not truth in the fact that those who drink alcohol & also consume tobacco.Key Findings of the Study  95% of the respondents in the Advertising segment emphasize that a ban on liquor & tobacco advertising is required. Another 38% of respondents feel surrogate advertising encourages them to consume tobacco & liquor.  The effectiveness of the surrogate adds is eminent from the finding that 46% of respondents accept that it reminds them of the core product. This is a surprising revelation from the horses mouth.

It is illegal to advertise it? And that is precisely why we have to live with surrogate advertising. But for a company like ITC. It is legal to sell cigarettes at every roadside stall. Surrogate advertisements in most cases play a role of reinforcing brand recall rather than inducing consumption. They were the result of a market reality where a manufacturer who has the right to sell his products does not have the right to advertise it. Who has the right to decide if one should deeply inhale the rich aroma and full-bodied flavor of carefully rolled Virginia tobacco? Every time one nonchalantly put one of those sticks to his/her lips they feel to have mounted a wild mustang and riding down the lonely mountain trails of Colorado. than the threat of competition from new players or new launches by competitors is minimized. Who is anyone to decide whether one can sip his/her daily quota of what started off as eau de vie. and imparted to it the smoky flavor that could come only from the peat of Scotland and the pristine Highland water. ITC with its wide brand portfolio consisting of the most wellknown brands in the country and the widest distribution reach among the cigarette companies is better placed than any other competitor in an atmosphere where no advertising is allowed. 48 . the ban may infact prove beneficial rather than detrimental. If no body can advertise.FINDINGS Should one lose the right to tipple or smoke? Certainly not. Scotch? People have spent years perfecting a heavenly blend of spirits. or the water of life and then rapidly transformed itself into its present day avatar. The wisdom of the Government extends only to banning the advertising of tobacco or liquor. It is legal to manufacture liquor and cigarettes or beedis. Not to the manufacture or marketing of these supposedly deadly substances. ITC’s brands are well entrenched in the market. We can remember the `Keep Walking' series of advertising. even to unsuspecting children.

Punjab and Rajasthan. An excise duty hike therefore could well be on the cards. the IBF decided that Jagatjit Industries and other liquor manufacturing units must get production of the advertisement approved both at the `storyboard stage' and after the production of the commercial. advertised a product called `Aristrocrat Apple Juice.The ban therefore. The announcement made this week could just be a precursor of what is likely to come in the Budget to be announced at the end of this month. Understanding the gravity of the situation. 49 . A market survey in 2001 revealed that advertising has a direct influence on the consumption habits of 431 million people in India and an indirect impact on 275 million `aspirants' from the lower income group. no reputed shop in Delhi had ever seen it. the Indian Broadcasting Foundation (IBF) has started to take on the surrogate liquor advertisements. Haryana.' The company reportedly confirmed availability of the fruit juice in Delhi. yet. Policy decisions in the pre-budget period indicate to a certain extent the Government’s stand on various issues. a liquor industry publication. In 2002. According to the International Wine and Spirit Board. would not have any negative impact on ITC’s earnings in the near future. Sociological studies have shown that. Jagatjit Industries. for example. The motivations of firms look even more suspect when they advertise products that cannot be bought. Considering this and realising that nearly 50 per cent of the television owners have access to cable channels. potentially leading to financial distress and health hazards. The implication is that the problem is going to grow. a significant share of income of a large section of the population is spent on liquor. there will be a jump in the number of people reaching the legal drinking age of 25 within the next few years. there is no doubt that the hidden call for alcohol consumption behind the surrogate advertisements is not escaping the eyes of viewers in the world's fourth highest liquor-consuming country. in India. the maker of Aristrocrat Whisky. In a recent board meeting. The very purpose of banning liquor advertisements is defeated by surrogate advertising. if and when implemented. What could be a real concern is the growing strength of the anti-smoking lobby. let alone sells it.

Supply and Distribution Act 2003 has raised the expectations of the citizens further on the role of the law enforcers. in a free society. Production. The study was based on the premise that the Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of) Trade and Commerce.It also ruled that that if liquor companies promote any juice. prohibits sale of tobacco products within 100 yards of educational institutions. Voluntary Organization in Interest of Consumer Education (VOICE). With surrogate advertising so widespread. Among other features. bans totally the sponsoring of any sport or cultural events by tobacco companies. non-political consumer group conducted a study in October 2004. prohibits smoking in public places. this is the moment to tackle the problem head-on. enforcing personnel believe they already have many other important laws to implement. a Delhi-based non-profit. these should be shown in a proper manner and not as trimmings to liquor advertisement. Instead. producers have a legitimate right to let consumers know about their products through advertisements. but the key point lies in enforcement. A look at some enlightening findings from the study: 92% of the law enforcers in Delhi strongly disagree with the statement that there is nothing wrong in smoking/consuming tobacco. but also false and dishonest in many cases.  59% of the law enforcers in Delhi agreed with the statement that they do not want to take extra load by enforcing such 'minor laws' strictly. mineral water or soda. 50 . makes mandatory indication of nicotine and tar contents on the packets and presence of pictorial warnings on the packets in English as well as Indian languages. prohibits sale of tobacco products to persons under 18 years. the Act prohibits all forms of direct and indirect tobacco advertising. consumers have the right to information in adverts that are clear and honest. If the law enforcers themselves are not familiar with the laws then they are certainly not in a position to implement those laws adequately.8% are aware of the anti-smoking legislation of 2003. If. Surrogate advertisements are not only misleading.  Only 70% of law enforcers in Delhi are aware of existing laws against smoking in India and of these only 58. These are welcome steps.

SUGGESTIONS There should be stringent regulatory measures to curb the practice.  adopting strict laws to penalize those companies featuring surrogate advertisements without any real existence of the product. for instance. by amending the Trade Marks Act. and keep a close vigil over clever evasion of the law.  calling on the ASCI address complaints received from consumers against surrogate advertisements and take appropriate actions immediately. and  requiring advertising agencies to have full knowledge of the products under the same brand for which they are promoting advertisements. such as:  making transparent laws banning surrogate advertisements for different products under a single brand names. 41% of the law enforcers in Delhi agreed with the statement that their involvement in tobacco related controls do not give them any benefit or recognition hinting that such enforcements have very little significance in terms of community and offence. 51 .  Health warnings A single health warning (“Cigarette smoking is injurious to health” or “Drinking liquor is injurious to health”) is mandatory on packets and any advertisements.  asking the electronic and print media to adhere to the advertisement codes and not encourage surrogate advertisements. and taking legal actions against those agencies which design surrogate advertisements.  creating a consumer awareness programme to help people understand the negative impact of surrogate advertisements.  providing teeth to the Advertising Standards Council of India to enable it take action against false and misleading advertisements.

 Promote the establishment of recreational facilities for youth.  Promote further research on the nature and extent of the socio-economic effects of alcohol abuse. youth and religious formations. and  Promote interaction between government and civil society.  Promote the establishment and maintenance of support structures for the rehabilitation of individuals and communities affected by alcohol abuse.MORE OF CSR Corporate along with the government can take up the following measures  Promote public education programmes on the harmful effects of the abuse of liquor.  Promote social responsibility programmes. 52 . notably civic.

• • • • • http://www1.lib. Henry.html http://surogate/EH_Net Encyclopedia Advertising Bans. Background paper.org/tobacco/book/html/chapter4.htm http://www. The control of Tobacco Advertising and Promotion.int/features/2003/08/en/ http://scriptorium.tobacco.org/resources/history/Tobacco_History21.edu/eaa/timeline.who.duke. US.html 53 .BIBLIOGRAPHY • • • • • Times of India Hindu business line Union health ministry Information & broadcasting ministry Saffer.worldbank.html http://www.

liquor or tobacco  Encourages you to consume liquor or tobacco  Makes you want to consume more of their liquor or tobacco  You only consider it as an advertisement of the product being shown 54 . Do you think the government has been successful in controlling the consumption of tobacco & liquor by imposing a ban on Tobacco & Liquor advertising  Yes  No 3. Bagpiper Soda.QUESTIONNAIRE Note: To mark your response please tick in the check box given before each choice 1. Do you think we require any ban on Tobacco & Liquor advertising  Yes  No 2. Aristocrat Apple Juice. Which one of the following do you consume  Tobacco & Liquor  Tobacco Only  Liquor Only  None 4.e. What comes to your mind when you see advertisements like Red & White Bravery Awards. Manikchand Filmfare Awards  Reminds you of the core product i. Royal Challenge Golf & club Accessories.

Do you think that control on surrogate advertising leads to increase in consumption of liquor & tobacco? What in your opinion should be done to control the increase in consumption of liquor & tobacco. I was not aware of the term Surrogate Advertising & the concept 6. caused by surrogate advertising ………………………………………………………………………… …………………. 7. What according to you is the root cause that led to surrogate advertising  Existing Loopholes in the laws directed towards implementing the ban  Due to increased competition the liquor & tobacco giants had to advertise in one form or another  Surrogate advertising results in a better brand recall & helps in increased sales of the core product. I am familiar with the term Surrogate Advertising & know the concept  I am not familiar with the term Surrogate Advertising.. Personal Information Name: Designation: 55 . Do you think Surrogate advertising is good for the core brand itself  Yes  No 8. but I knew the concept  No.5. Are you aware of the phenomenon of Surrogate Advertising (as mentioned above)  Yes.

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