NAME – HEMANT KUMAR
COURSE- BBA GENREL
COLLEGE -20234030182
MAKAUT ROLL NO- 23405020042
SUBJECT- MARKETING MANAGEMANT
Case Study on Surrogate Advertisement: "Banning Liquor Surrogate
Advertisement"
Surrogate advertising
Surrogate advertisements are those which are used to publicize those products banned by law as
they are injurious to health. Different products witnessing such advertisements are alcohol
beverages, tobacco products & Gutka advertising themselves as pan masalas.
There are a numerous reasons for companies to restore themselves to such advertisements. One
of the most common among them is to circumvent a prohibition by law in several countries on
direct advertisements of particular products besides its unhealthy.
Hence different techniques used to promote such brands might include, endorsing their products
using public service announcements, advertising well established brand embedding such
surrogate products or duplicating the brand image of one product extensively to promote
another product of the same brand or if not the case, endorsing themselves as discharging some
social obligation towards the society (Ex: Officers Choice – Alcohol).
Whereas the primary objective of the companies behind such prohibition is to compensate the
losses occurred due to such prohibition.
“Sales of these surrogate items are not banned, yet advertising on the same has strictly
been prohibited!”
What Is Surrogate advertising
 According to American Marketing Association (AMA)
 “Advertising is any paid form of non personal presentation and promotion of
ideas, goods and services by an identified sponsor.”
THIS IS SURROGATE ADVERTISING
Surrogate advertising
 Duplicating brand image of one product extensively, in order to promote, another product
of the same company.
 Use of well established brand, except the original product, to encompass that product.
 For example: cd’s, cassettes, apparels and accessories.
 The sponsoring of sports/cultural/leisure events and activities.
 It is dedicated towards the use of an insignificant, “harmless” product to
increase/maintain awareness for their primary “harmful” brand.
 Surrogate advertisements are misleading, false and dishonest in many cases.
Some Quick Facts
 Cigarettes cause about 6.35 lakh deaths in India every year.
 About 33 per cent of cancer cases are attributed to tobacco consumption.
 However, cigarettes alone account for roughly 10% of excise collections.
 Tobacco trade is a major contributor to the national exchequer
ARGUMANTS IN FAVOUR
o The Rs.60,000 cr. Indian beverage industry has always been operating in a restricted and
controlled environment.
o It is a legitimate business in the country which contributes a whopping Rs.22,000 cr. just
in revenues to the government.
o It is not allowed to market its products freely and communicate to its consumers directly.
ARGUMANTS AGAINST
 According to a market survey done in India in 2001, advertising has
1.A direct influence on the consumption habits of 431 million people, and
2.An indirect impact on 275 million aspirants from the lower income group.
3.The conservative Cable TV penetration is estimated around 50 per cent.

 This is still a big number that can be persuaded by surrogate advertising.
Harm To Consumers
 The advertising is designed to sell liquor/cigarettes but pretends to be all about water or
apple juice or soda.
 It’s like everyone knows what’s going on:
1.The manufacturers know what the real reason for the ad is,
2.The consumers know what’s really been advertised, and
3. The government knows that too.
 So why not either:
1.Do away with this wholesale scam and let them advertise all their stuff, or
2.Ban such surrogate advertising?
A FEW EXAMPLE
BACARDI
Many can recall the Bacardi ads of yore with the famous Bacardi Music! Again, it was not the
beverage brand that was being promoted. The direct promotion was for the Bacardi Soda and
the Music CDs, but indirectly, a brand name for Bacardi was built
Haywards 5000
 This brand is also advertised with the help of soda and packaged drinking water, but
many people know very well that Hayward‟s 5000 & 10000 are whisky, beer brands.
 While the most interesting fact is that Hayward's 5000 beer 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.
Surrogate advertising
 The Wills Lifestyle brand building exercise makes an interesting study in surrogate
advertising. The first apparel store was opened in Delhi in July 2000. This was also the
year when the government banned direct advertising of tobacco and tobacco products.
 Surrogate marketing is also done by gutka and pan masala giants Manikchand by hosting
the Bollywood Filmfare awards.
 Kingfisher promote their liquors, beers and whiskies, which constitutes
95% revenues of the UB group.
1.It is neither promoted by the Central nor by the State government.
2.The advertising of these products are banned on the television.
 The liquor king Vijay Mallaya and his group promoted their products by
different strategies, like
1.They owned a cricket team ROYAL CHALLENGERS
BANGALORE
2.By launching India’s costliest Kingfisher Calendars.
INDUSTRY VS GOVERNMENT
INDUSTRY
Advertising is only about protecting brand share, not total consumption
Companies are not breaking any law
Industry self regulation is the answer for any problems
GOVERNMENT
Influence on Young minds
Recruits new drinkers
Increase sales among heavy drinkers
Impact of smoking scenes by cinema stars not difficult to imagine if people give polio
drops to their children inspired by Amitabh Bachan
MARKET SHARE
What is the background? And why has the government ordered a ban?
A senior official in the health ministry says that it is a question of public health. There is an act
in place for tobacco (Tobacco Advertising Prohibition Act, 1992), but not for alcohol. And by
surrogate advertising, people are constantly reminded of the mother brand. To quote from the
health minister's letter, "Considering the ill effects of cigarettes, alcohol and other intoxicants,
the government has banned advertisements of these products in the media. As a reaction, the
liquor and tobacco majors have sought other ways of advertising their products. They have
introduced various other products with the same brand name and are carrying out heavy
advertising so that consumers do not forget their liquor brands." In 2000, the Indian
Broadcasting Foundation (IBF) had sent a recommendation to the government about surrogate
advertising. No one raised any questions for a while. In 2002, broadcasting industry sources
revealed plans to put in place measures for self-regulation and monitoring, even before the I&B
ministry took concrete steps in this regard. The broadcasters, who were members of the IBF,
announced that they would come up with an advertising code specific to surrogate advertising.
Meanwhile, in 2005, the government banned - and then allowed - surrogate advertising.
Jawahar Goel, president, IBF, says, "In 2006, notices were issued by the ministry all of a
sudden and the channels were asked to run a scroll of apology just before Independence Day.
Then we asked who is going to decide, what is brand extension and surrogate - there should be
a body which should decide." Discussions went on with the I&B ministry. Agencies played
merry-go-round. If channel A was notified, then agencies went to channel B and then to channel
C. By the time, channel A had sorted out the issue and the agencies went to them again. It was
then that the IBF and the ministry decided that the ads would go through the Central Board of
Film Certification (CBFC) for all brand extension commercials. But as Goel and I Venkat of
IBF put it, nobody from the government consulted the IBF or ASCI or CBFC before the current
notification.
QUESTIONS FOR DISCUSSION:
‘By banning advertisements for liquor, the government is trying to disassociate itself from
the social evils associated with alcohol consumption.’ Critically comment on this statement
in light of the ban on direct and surrogate advertisements for liquor.
Ans-
 In India, alcohol is not socially permitted .
 We usually think that alcohol affects our health & moral in society . So this is the right
decision of government to ban the advertisement for liquor.
 Direct advertisement always persuade people to buy but surrogate advertisement only
make us aware about the brand.
Banning Liquor Surrogate Advertising BANNING LIQUOR ADVERTISEMENTS – AGAIN
In June 2002, the Information and Broadcasting (I&B) Ministry of India ordered leading
television (TV) broadcasters to ban the telecast of two surrogate ads of liquor brands,
McDowell’s No. 1 and Gilbey’s Green Label. The Ministry also put some other brands –
Smirnoff Vodka, Hayward’s 5000, Royal Challenge Whiskey and Kingfisher beer – on a ‘watch
list.’ The surrogates used by these advertisements ranged from audiocassettes, CDs and
perfumes to golf accessories and mineral water. By August 2002, the I&B Ministry had banned
12 advertisements. Leading satellite TV channels, including Zee, Sony, STAR and Aaj Tak
were issued show-cause notices asking them to explain their reason for carrying surrogate liquor
advertisements. The channels were asked to adhere strictly to the Cable Television Regulation
Act 1995 (Cable TV Act, 1995)
Do you think surrogate advertisements by liquor companies were banned because of the
criticism they received? Give reasons to support your answer. Also, discuss the advantages
and disadvantages of using surrogate advertisements (for a liquor company in particular
and also for any other type of company).
AnsThe purpose of surrogate advertisement is to let customers be familiar with the product without
violating the ban on direct advertising while projecting that the company is socially responsible.
So it should not be banned.
Advantages
 One of the highest revenue earners for the government. By ways of taxes and duties.
 High revenue earners for television channels.
 Surrogate advertisements are actually helpful in building a better brand image and
awareness.
 This brand provides a good value for money.
 Surrogate advertising allow the marketers of banned products to get market exposure.
Disadvantage:
 The disadvantage of surrogate advertising is that the public is not
so naive that it will favor your product just because you evoke an image in the public
mind associated with your product. Probably, laws were made against advertising your
product because public opinion already was opposed to it. Laws, after all, are just an
extension of preexisting views held by the majority of the people.
 Whether the advertising of surrogate of the same brand leads to the recall of original
product or remember by replacing the original product with the new legal product under
the same brand?
 Advertisers of tobacco and liquor are continuously spending a huge amount of money in
order to create awareness about their brand through whatever means possible. Billions of
rupees spent every year on advertising of a product where the advertiser is not even
allowed to flash the name of the product
As a part of a team responsible for the marketing of a leading liquor brand, what
measures would you suggest to overcome the limitations imposed due to the ban on
surrogate advertising? Does the use of ‘socially responsible’ advertisements go against the
interests of a liquor company? Analyze.
AnsMARKETING STRATEGIESE FOR LIQUOR
We will mainly work for brand building & recall.
On the basis of our budget we can use the following tools:
A) through mineral water & soda.
B) sponsoring events like racing, Golf tournament, sports, cultural, movie , music show &
other program which attracting
Conclusion
Advertisements as Mirrors of prevailing norms Marketers claim that advertising simply mirrors
the attitudes and values of the surrounding culture. No doubt advertising, like the media of
social communications in general, does act as a mirror. But, also like media in general, it is a
mirror that helps shape the reality it reflects, and sometimes it presents a distorted image of
reality. Advertisers are selective about the values and attitudes to be fostered and encouraged,
promoting some while ignoring others. This selectivity does not impart credence to the notion
that advertising does no more than reflect the surrounding culture. For example, the absence
from advertising of certain racial and ethnic groups in some multi-racial or multi-ethnic
societies can help to create problems of image and identity, especially among those neglected,
and the almost inevitable impression in commercial advertising that an abundance of
possessions leads to happiness and fulfillment can be both misleading and frustrating.
Advertising also has an indirect but powerful impact on society through its influence on media.
Many publications and broadcasting operations depend on advertising revenue for survival.