EXPLORATORY RESEARCH

Literature Review

Surrogate advertising is advertising which embeds a brand or product message inside an advertisement which is ostensibly for another brand or product. For example, a cigarette company might issue public service announcements relating to a topic such as lung cancer, using the company's logo or distinctive brand colors in the ads so that people are exposed to the company's branding without seeing an explicit ad for the company's product. The company would justify the advertisement by claiming that it's an example of social responsibility.There are a number of reasons for companies to use surrogate advertising. One of the most common reasons is to circumvent a ban on direct advertisements of particular products. Many nations have laws restricting alcohol and tobacco advertising, for example, so companies use surrogate advertising to market their products. Techniques used might include advertising another product with the same brand name, sponsoring community events, issuing public service announcements, or sponsoring sports teams. All of these activities technically do not violate the ban on direct advertising, but they still get consumers familiar with the company's branding.Surrogate advertising may also be used when companies want to cultivate an image of social responsibility. For example, many health advocates have criticized advertisements for sweet treats aired during children's cartoons. A company might pull outright advertising during these time slots and instead air a series of public service announcements about eating a balanced diet, with the announcements coincidentally bearing the company's branding.Pharmaceuticals are another product with advertising restrictions. Historically, pharmaceutical companies were not allowed to advertise prescription medications at all. Once this regulation was relaxed, some restrictions were left in place. Using surrogate advertising allows companies to get around regulations. For instance, the manufacturer of an asthma medication might sponsor informational commercials about managing asthma, with the medication branding scattered throughout the advertisement to get consumers used to the brand and to imply that the medication plays an important role in managing asthma.

COMPANIES FOLLOWING SURROGATE MARKETING

SURROGATE ADVERTISEMENTS PROMOTED BY LIQUOR AND TOBACCO INDUSTRYThe liquor industry is a prominent player in this game. Few surrogate advertisements shown in print, electronic and outdoor media are - Bagpiper soda and cassettes & CDs, Haywards soda, Derby special soda, Gilbey green aqua, Royal Challenge golf accessories and mineral water, Kingfisher mineral water, White Mischief holidays, Smirnoff cassettes & CDs, Imperial Blue cassettes & CDs, Teacher's achievement awards etc. These products bear exactly the same brand name and logo, which we had seen earlier in liquor advertisements. It was little surprising to know that liquor giants like McDowell's and Seagram's have entered into new segments like cassettes & CDs, mineral water, sports accessories etc. Later it was found that the basic aim of these surrogate advertisements was to promote their liquor brands like beer, wine, vodka etc. This brand extension is an act of bypassing the advertisement ban.A similar trend is followed by companies making Cigarettes, Paan Masala and Gutkha. Few examples of surrogate advertisements in this category are - Red & White bravery awards, Wills lifestyle, Four Square white water rafting, Manikchand awards etc. Though a ban has been imposed on advertisements endorsing tobacco products, this industry has resorted to surrogate advertising a few years ago. The Health Ministry has recently implemented the tobacco control legislation which will imply a complete ban on advertisements and all direct & indirect promotional campaigns for tobacco products. In 2001, Indian Tobacco Company (ITC) had voluntary withdrawn the Wills Sports sponsorship of the Indian cricket team when the Government had first proposed a ban on advertising through legislation.

LEGITIMATE BUSINESS SURROGATE ADVERTISEMENTMc Dowell’s Walt whisky Mc Dowell’s soda/waterRadico khaitan’s 8 pm whisky Radico khaitan’s waterHayward’s 500 beer Hayward’s soda/waterDerby special Derby special sodaBacardi liquor Bacardi blast cds and cassettesBagpiper liquor Bagpiper soda and cassettesFour square cigarettes Four square white water raftingKingfisher beer Kingfisher bottled drinking waterSmirnoff vodka Smirnoff cds and cassettesRed and white cigarettes Red and white bravery awards Pan Parag gutka Pan Parag pan masalaRajnigandha tobacco mix Rajnigandha pan masalaChaini Khaini Chaini Chaini pan masalaGopal Zarda Gopal Supari 132Pataka 502 Bidi Pataka 502 Tea

THE CORPORATE STANDPOINTThe industry segment has its own standpoint in defense. The liquor lobby claims that everything is in accordance to the Government regulations. "If a brand has equity, why shouldn't it be allowed to advertise? Also, brand extension is an industry practice adopted by different product categories," comments Alok Gupta of UB group. "When we advertise our products, we follow all the guidelines," declares president, sales & marketing, Radico Khaitan. They clarify that they have stopped showing liquor advertisements and they are free to use the brand name for any other products. Even the Confederation of Indian Alcoholic Beverages Companies (CIABC) advertising code maintains that advertisement of products (real brand extensions) by the liquor industry must be allowed.From a layman's point of view, their claims seem to be justified. But this is a clear example of taking advantage of the loopholes. There is a point to ponder. When they have stopped showing liquor advertisements, why the same brand name and logo is used to promote products like cassettes & CDs or mineral water? They could have assigned different brand names. It seems they have a hidden agenda of highlighting the liquor or tobacco brand.A similar tussle over the issue of surrogate advertisements in politics was raised in April 2004 on the eve of Lok Sabha elections. Complaints of slanderous and offensive advertisements were raised by two major political parties - BJP and Congress against each other. The issue became so serious that the Supreme Court had to interfere in this affair. Finally on 13 April 2004, the Court gave a verdict to curb smear advertisements on electronic media. By appointing Election Commission as referee, the court has tried to put an end to surrogate advertising in politics.According to the Cable Act under the ministry of information and broadcasting,- "no broadcaster is permitted to show an advertisement which promotes directly or indirectly, sale or consumption of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants…" Now a new clause has been added under the act stating that "any advertisement for a product that uses a brand name which is also used for cigarette, tobacco product, wine, alcohol, liquor or any other intoxicant will not be permitted". Finally, in April 2005, the ministry resorted to a ban on surrogate advertisements of liquor and tobacco products on television.After this directive, the surrogate advertisements are seldom shown on television. Now the companies will have to reframe their policies. But who will take care of print and outdoor media is not certain.According to ASCI (Advertising Standards Council of India), surrogate advertisements are harmful. Now it will be up to the ASCI to take up the matter with the respective companies.

Surrogate Advertising: Emerging Trend

A recent series of hoardings led me to delve into a very unique trend specific to Indian advertising – Surrogate advertising… a trend which is fast catching up and has suddenly attracted a lot of innovative and creative brains around the country.

Reason? On one hand, the govt cannot allow public advertising of liquor companies. But ironically, liquor and cigarette sales are the biggest revenue generators in terms of taxes and duties on these items. That’s why an overt acceptance of the marketing in these sectors is not legally acceptable. This has led to one of the biggest ironies of the country – Sales of these items are not banned, yet advertising on the same has strictly been prohibited!

Talking about the market size and the different segments would not be pertinent to the discussion (for the records, it is more than 100 million cases in India!). But what is the significance of this trend vis-à-vis the entry points for new players and sustainability of existing ones?Multinationals which would like to explore the Indian markets find the double-faced attitude of the government as an impediment to their ventures. Since no policy has been formalized in this regard, foreign companies continue to be skeptical about their entry.

Domestically, it has led to innovative ways and methods of spending on different media for Advertising from the companies, where companies do more of a brand building exercise than direct advertising. Be it promotions for brand building, or sponsoring events that can be mapped with the “showbiz” and “glamour” of the brand, advertisers don’t leave many avenues to enhance their visibility.

The rule says “Advertisements which lead to sale, consumption and promotion of liquor should not be allowed.” So, in Surrogate Marketing, a product which is different from the main product is advertised, and has the same brand name as the main product. The product is called as “surrogate” and advertising through this channel is called “Surrogate Advertising”!It may include CDs, water, clothing, Apple juice, fashion accessories, sports goods or even events sponsoring!

These gimmicks, in turn, help the consumers build a strong equity of the parent brand, and with the enhanced visibility, the equity of the brand would definitely become higher!Liquor companies were forced to look at innovative ways of building their brands. With an objective of enhancing brand recall, companies either engage into “surrogate advertising” or displaying “socially responsible messages”.Again, out of the two viable options for Advertising, Surrogate Advertising has been surrounded by controversies and legalities for a long time. There is no clear policy from the government for obvious reasons and companies do not want to risk their investments on Ads, which might not be screened after a while.So, a safer choice available where companies can exercise their grey cells is advertising “socially responsible” messages.Take a look at these billboards which I noticed on a private flyover a few days back. There is also another print ad in continuation with the Johnnie Walker billboard.

Must say, this is one of the best elements of innovation that I have seen so far. Though it would be too premature to attribute this to the industry per se, it has become imperative for the companies to change their line of thought completely, to work around the system.What are the other practices companies are looking at?(a) Companies are getting involved in Sponsorships of events and have launched their own awards for bravery or lifetime achievements!(b) Internet advertising has become a lucrative area which has so far not been delved into. The medium holds a lot of potential to enhance visibility, and companies have lately realized that.(c) Catchy jingles have become the norm of the day to ensure that their brands have a high brand recall(d) With restrictions in other marketing elements – in terms of pricing and distribution, companies have ventured into another important element – Packaging. Innovative packaging makes their brands stand out of the clutter, and most of the Multinationals are revisiting this element in their brand portfolio.

Though the industry is not healthy for the young consumers, some processes and laws need to be formalized and established in the system. Else, innovative workarounds and arm-twisting of laws would be the norm of the day for the entire liquor industry!

Consumer Psychographics and Surrogate Advertising

'Surrogate advertising' is one of the emerging ethical issues in advertising in India. This is used as a strategy to advertise products like liquor or tobacco - the advertisement of which otherwise, is banned in our country. It relates to advertising by duplicating the brand image of one product extensively to promote another product of the same brand. When consumers look at these advertisements, they associate these with banned products. Hence, such products are indirectly advertised, and therefore, influence their behavior. There is no doubt that the hidden call for alcohol consumption behind the surrogate advertisements is not escaping the eyes of viewers of the world's fourth highest liquor consuming country. Hence, surrogate advertising defeats the very purpose of banning liquor advertisements. The central issue of the ethical discussion in the present study is regarding the attitude of targeted consumers towards the practice of surrogate advertising vis-à-vis their psychographic profile towards advertising in general. The psychographics of the target audience are important to be discussed since they are the final evaluators of advertising. The study concludes that surrogate advertising is not perceived positively by the various sections of the society. Though there were some positive perceptions found for this practice, on the whole, the attitude of most of the targeted consumers, i.e., the respondents were more dominating towards the negative side for the surrogate advertising and they consider it to be an unethical practice. The ethical perception of the targeted consumers affect the acceptability of surrogate advertisements and hence, the attitude of the consumers towards it, with majority of these consumers considering it as immoral and unethical. The implications thus, are left for the advertisers to modify and redesign their advertising strategies in accordance to the consumer psychographics, so that they can find a way out which is more ethical and positive for the society or their target market rather than resorting to surrogate advertising. Impact of Surrogate Advertisements on Children

Each day 55,000 children in India start using tobacco, Gutkha the chewable tobacco is aimed at the younger generation of the country. But you may wonder how these companies manage to reach the minds of these children when they are not allowed to advertise these products.After the ban the companies opened their doors to surrogate advertisement, an advertisement has the logo or brand of another company advertised within it. Lets take a look at this report done by a french channel on surrogate advertisements done in India.

One of the biggest surrogate advertisement market is the film Industry Bollywood, in 2004 and 2005, 89% of all the released movies had smoking scenes in them. Below is a small documentary

on smoking in movies, with interesting statistics on the current scenario in India with regards to smoking.

According to research done by the Salaam Bombay Foundation, 3260 children between the age of 12 to 17 years fro municipal and private schools were asked to fill out a self-administered questionnaire.When asked to recall slogans of any tobacco company or brand…71% recalled Manikchand – Oonche log, oonchi pasand12% recalled Goa – Yahan bhi Khilate hain, whan bhi, Goa No 12% recalled Sanket0.4% recalled Shimla15% recalled other brandsWhen asked to associate slogans with brands 63% could associate the slogan while 37% could not. What kind of a message will a child get from, Oonche log, oonchi pasandSome of the observations learnt through this research is that, Gutkha advertising has had a deep impact on the minds of children although it has been banned since August 2002.As children cannot easily disassociate Manikchand Water fromManikchand Gutkha, tobacco manufacturing companies should not be allowed to use surrogate advertisements. TV and radio are the hotspots as to where these messages are broadcasted to the children.

Legal concern – “Blanket Ban on "Surrogate Advertising" An advertisement unmistakably and profoundly directs one’s life. The extent to which advertisements persuades a person depends upon its pushing publicity. The adverse impact of advertisements of unhealthy products is a matter of concern for this hour.Impact of tobacco, liquor, cigarettes is far alarming than we can think for one’s health. Due to the widespread unfavorable impact of advertisement of unhealthy products, Indian government has always struggled and strived to curb or atleast restrict rampant advertisements of such products by appropriate legislations.Result to the directive of Government to ban advertisements of products that are adverse to health, the major companies of liquor & tobacco sought other ways of endorsing their products. They have found an alternative path of advertising through which they can keep on reminding the people of their liquor/tobacco brands. They have introduced various other products with the same brand name.The problem occurs when heavy advertising is done so that the customers do not forget their liquor & tobacco brands, for which advertisements are banned. The advertisements for such new products are placed under the category of "Surrogate Advertisements". Surrogate advertising (duplicating the brand image of one product extensively to promote another product of the same brand), has become commonplace. Their only objective is to compensate the losses arising out of the ban on advertisements of one particular product (i.e. liquor). The companies can always claim that the order is being implemented and advertisements of liquor are banned, but the objective of the Government behind imposing the ban is not fulfilled. A new weapon of Fill-in or replacement war.Positives of Brand Extension:Strong trademarks mean a combination of positive product attributes mainly reliability and quality. Branding decisions for new product category have to consider the appropriateness of the fit between the product and the trademark, in terms of association, attribute and connotation. And here, the government is free to put companies under a scanner to determine if their umbrella branding strategy is transparent and genuine. But brand extension across products should be permitted, except when the purpose clearly is to encourage consumption of a product whose promos are prohibited by law.Surrogate advertisement by CompaniesPlayers in tobacco industry - Wills lifestyle, Four Square white water rafting, etc Players in liquor industry – Kingfisher beer, airlines and mineral water, Royal Challenge golf accessories and mineral water, Bagpiper soda and cassettes & CDs, Haywards soda,, White Mischief holidays, Smirnoff cassettes & CDs, Teacher's achievement awards, Imperial Blue cassettes & CDs etc.Legislative Measures:The Cigarettes & Other Tobacco Products (Prohibition of advertisement and regulation of trade and commerce, production, supply and distribution) Act, 2003:This Act was enacted to implement measures to ensure that effective protection is provided to non-smokers from involuntary exposure to tobacco smoke and to protect children and young people from being addicted to the use of tobacco;It was also considered expedient to prohibit the consumption of cigarettes and other tobacco products which are injurious to health with a view to achieving improvement of public health in general as enjoined by article 47 of the Constitution;Section 3(a) of the said act defines ‘advertisement’ as including: ‘any visible representation by way of notice, circular, label, wrapper or other document and also includes any announcement made orally or by any means of producing or transmitting light, sound, smoke or gas’Interpretation: Surrogate advertisements clearly come under the definition as it involves making the tobacco labels clearly visible to people through other products by the same name. Moreover the

public is always reminded orally of the tobacco’s brand name through the advertisements of such other products. So such advertisements are liable to be a subject matter of this Act and therefore subject to its restrictions.Section 5(1) of the Act states: ‘No person engaged in, or purported to be engaged in the production, supply or distribution of cigarettes or any other tobacco products shall advertise and no person having control over a medium shall cause to be advertised cigarettes or any other tobacco products through that medium and no person shall take part in any advertisement which directly or indirectly suggests or promotes the use or consumption of cigarettes or any other tobacco products.’

Section 5(3) of the Act states: ‘No person, shall, under a contract or otherwise promote or agree to promote the use or consumption of—(a) Cigarettes or any other tobacco product; or(b) Any trade mark or brand name of cigarettes or any other tobacco product in exchange for a sponsorship, gift, prize or scholarship given or agreed to be given by another person.Demerit: This section restricts advertisement, promotion of tobacco products for direct/ indirect pecuniary benefit. It is narrow since it doesn’t take within its ambit the scope of promoting tobacco through brand extension and sponsorships.The Ministry of Health and Family Welfare made certain amendments to the above act in 2005, stating that the word ‘indirect advertisement’ mentioned in Section 5(1) would mean:

          The use of a name or brand of tobacco products for marketing, promotion or advertising other goods, services and events;          The marketing of tobacco products with the aid of a brand name or trademark which is known as, or in use as, a name or brand for other goods and service;         The use of particular colours and layout and/or presentation those are associated with particular tobacco products; and          The use of tobacco products and smoking situations when advertising other goods and services. Merit: It’s a comprehensive definition and the amendment has taken care of the legal lacuna pointed out above.Advertising Standard Council of India (ASCI) code:ASCI is a voluntary self-regulation council, registered as a not-for-profit Company under section 25 of the Indian Company Act. It’s formed to safeguard against the indiscriminate use of advertising for the promotion of products which are regarded as hazardous to society or to individuals to a degree or of a type which is unacceptable to society at large.Section 6 of the said code states: ‘Advertisements for products whose advertising is prohibited or restricted by law or by this code must not circumvent such restrictions by purporting to be advertisements for other products the advertising of which is not prohibited or restricted by law or by this code. In judging whether or not any particular advertisement is an indirect advertisement for product whose advertising is restricted or prohibited, due attention shall be paid to the following:(a)   Visual content of the advertisement must depict only the product being advertised and not the prohibited or restricted product in any form or manner.(b)   The advertisement must not make any direct or indirect reference to the prohibited or restricted products.(c)    The advertisement must not create any nuances or phrases promoting prohibited products.Interpretation: It specifically prohibits surrogate advertising and lays down guidelines which qualifies it to be so, namely           Whether the legal product under a tobacco brand, sought to be advertised, has been produced in reasonable quantities or not.

         Whether in the disputed advertisement, there are any direct/indirect clues to the promotion of the restricted product i.e. tobacco or not.The Prohibition of Publication or Telecast of Vulgar, Obscene and Surrogate Advertisements and Re-mix songs by Print and Electronic Media Bill, 2004:Though the bill hasn’t yet seen the light of the day, the broad framework has been laid down by the legislature and given to the executive to frame the details under delegated legislation. It was initiated to provide for ‘total ban on the publication of …….....surrogate advertisements showing substitutes of products, particularly of liquor and tobacco products by magazines, newspapers, etc. and telecasting of …………surrogate advertisements………….so as to protect the Indian culture and values………For the first time, a legal definition of ‘surrogate advertisements’ has been attempted through Section 2(d), which states: ‘an advertisement which shows a substitute product in the guise of the real one which otherwise cannot be legally advertised through the print and electronic media.’Section 3 prohibits the publication by print media and telecasting of surrogate advertisements and provides that violators of the said provisions shall be punished accordingly. Issues for concern:

         In a significant policy shift, the government has in principle decided to permit non-liquor and non-tobacco advertisements of Kingfisher and Wills brands on TV channels. This is despite the fact that the Cable TV Network Rules, 1994 Rule 7(2) (viii) prohibits direct or indirect consumption, sale or production of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants.Recently, the Information and broadcasting ministry has assured the people that all surrogate advertisements would soon be barred from appearing in any form of media and stricter measures of surveillance to identify such advertisements would be put in place.         Manufacturers further reduce the chances of young people failing to get the message by sponsorship of sports teams and events and music concerts having particular appeal to the young.Need of the hour (measures):

         Amendment to Cable Television Act made under Networks (Amendment) Rules, 2006 states that no advertisement which violates ASCI standards are to be allowed. But it has been noticed that despite legislations aiming at direct prevention of surrogate advertisement, no strict adherence could be observed as is evident in the ITC case above. Providing teeth to the ASCI to enable it to take action against false and misleading advertisements and keeping a vigil over close evasion of law is a step to be taken.          FCTC (Framework Convention on Tobacco Control): It is a convention developed by World Health Organization (WHO) as a model to be adopted by any country desirous of enforcing strict anti-tobacco rules within its domain.Article 13 of the convention talks about tobacco advertising, promotion and sponsorship: It provides that even if the constitution doesn’t permit a comprehensive ban on tobacco advertising, it can resort to other ways too like • Prohibiting advertisements which create an erroneous impression on consumers.• Restrict use of direct/indirect incentives encouraging public use of tobacco.• Restrict media advertising in a period.• Restrict tobacco sponsorships of public events.

India can follow the detailed guidelines with respect to surrogate advertisements given in this convention. In 2001, Indian Tobacco Company (ITC) had voluntary withdrawn the Wills Sports sponsorship of the Indian cricket team when the Government had first proposed a ban on advertising through legislation.

         More remedies: • Measures may also be considered to ensure that brand names or logos of tobacco products are not visible, even if such brands support international events.• Making transparent laws banning surrogate advertisements for different products under a single brand names, for instance by amending the Trade Marks Act;• Calling on the ASCI address complaints received from consumers against surrogate  advertisements and take appropriate actions immediately;• Creating a consumer awareness programme to help people understand the negative impact of surrogate advertisements;• Adopting strict laws to penalize those companies featuring surrogate advertisements without any real existence of the product;• Requiring advertising agencies to have full knowledge of the products under the same brand for which they are promoting advertisements, and taking legal actions against those agencies which design surrogate advertisements.• Bans against surrogate advertisement should also spread its net to include the new electronic media like the Internet, e-mail, pagers and CD-ROMS, print and outdoor media, asking them to adhere to advertisement codes and not encourage surrogate advertisement.    

CASES and DETAILED FINDINGS

Case 1Surrogate advertising hits a roadblock

The Vijay Mallya owned UB Group named its airline business Kingfisher after Mallya’s popular beer brand of the same name. Without doubt, this is one of the most successful examples of surrogate advertising. The extension of the Kingfisher brand to the airline gave a great push to the original category, beer. The Kingfisher brand has also been successfully extended to other categories such as mineral water and club soda. 

Wills is another example of an effective brand extension through the Wills Lifestyle retail outlets. Other liquor and tobacco brands have also extended themselves to categories such as mineral water, audio cassettes, CDs, perfumes, golf accessories and holiday packages to gain the benefits of surrogate advertising. 

But now, health minister Anbumani Ramadoss has called for a complete ban on surrogate advertising on traditional media by liquor and tobacco brands. This could spell the end for all such brand extensions. The government’s complaint is that the liquor and tobacco companies use the original brand name and logo even on the brand extensions and this is a clear violation of the advertising code, which prohibits liquor and cigarette brands from advertising directly.

agency faqs! spoke to some brand owners and advertisers to get their views on the government stand. Pallav Soin, deputy general manager, Radico Khaitan, says he feels it’s too premature to draw any conclusions from the muddled directives of the government. “I do not know of any clear ruling or verdict on completely banning surrogate advertising for liquor brands. The directives from the government are pretty unclear at the moment. Anyway, whenever a ruling comes to that effect, as law abiding citizens, liquor and tobacco brands will have to comply,” he says.

So, what would be the strategy if such a ruling does come into effect? Soin says brands have retail channels available to them today to advertise and push their products. 

Divya Radhakrishnan, vice-president, The Media Edge, says that since liquor and cigarettes are impulsive buys, a restriction or ban on their publicity will have a discouraging effect. She says, “Anything to do with liquor and cigarette brands calls for a sensitive approach.”

Satbir Singh, chief creative officer, Euro RSCG, agrees with her. He is the brain behind the King Cobra brand, a beer brand that has now been extended to club soda. Singh suggests that instead of a blanket ban on such advertisements, the government should adopt the middle path and restrict their airing to after 11pm.

Singh points out that point of sale advertising will get a great push if the ban does come into effect. He cites the example of cigarette brands, ads for which can be spotted at every roadside kiosk. 

Besides promoting the brand at the point of purchase, the ban could also see a rise in in-film

placement of products, says another advertiser. Who can forget Stroh’s beer making a magnificent entry into India via Aditya Chopra’s blockbuster, Dilwale Dulhaniya Le Jayenge? Zingaro, a UB Group product, made an appearance in the Bipasha Basu and John Abraham starrer, Jism. Bagpiper made an appearance in Dum, and 8 PM whisky was prominently placed in the Sanjay Dutt starrer, Plan.

Then there are brand associations with major events which also provide great opportunities for promotions. Manikchand, the gutka and pan masala brand was associated for a long time with the Filmfare Awards. Similarly, one of the cigarette brand is responsible for the Godfrey Phillips Bravery Awards.

All in all, the ban on surrogate advertising, if it comes into effect, could be a new challenge for liquor and cigarette brands. Brands will have to re-look at their advertising budgets, and maybe seek other avenues to promote their brands. 

Case 2

This is not cricket! — Liquor cos to use overseas series to circumvent ad ban

WITH the Government trying to clamp down on surrogate advertising, liquor companies seem keen to bat out the ban. Even as liquor brands have traditionally been associated with upmarket sporting activities like golf, polo, derby and yachting, companies are now turning towards the game of the masses - cricket. In fact, the latter half of the current year will see liquor brands as the title sponsors of two major cricketing events featuring India. Immediately after the triangular series at Zimbabwe (of which Royal Stag was the associate sponsor), the India and Zimbabwe Test series will be called the Royal Stag Cup. Till date Royal Stag has used several international cricketers as brand endorsers. This is the first time the company has forayed into tournament sponsorship. Similarly, the ICC World XI Vs Australia series to be held Down Under will be called the Johnnie Walker Super Series. According to media planners, 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, the brands will enjoy good visibility," they added. Internationally beer brands such as Fosters and Lion have supported cricket in Australia and Sri Lanka respectively. Meanwhile, Royal Stag has roped in Zimbabwean Vice-Captain, Heath Streak as their new Royal Stag brand ambassador. Other celebrity Royal Stag cricket endorsers include Australian Cricket captain Ricky Ponting, and India's ace offie Harbhajan Singh. The Information and Broadcasting (I&B) Ministry's efforts to ban surrogate advertising of liquor brands has reached a naught. A few months ago, 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, surrogate advertising made a comeback on television. In fact, a few liquor companies have been advertising during the ongoing cricket series as well. Earlier, in an interaction with Government officials, channels were categorically told that there is a complete ban on advertising by liquor companies. "However, exemptions could be granted on a case-by-case basis, like the one granted to Kingfisher Airlines," they had said. The Government is also handicapped by procedure wherein it can take action against channels only after receipt of complaints. "The Government cannot suo motu issue show-cause notices. It has to first receive complaints," said official sources. 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.

Case 3It’s good to know that the Health Minister has challenged the name of the Bangalore Indian Premier League (IPL) cricket team, “Royal Challengers”. It’s however sad that it takes the Health Minister of the country to speak up before the authorities looked at such an obvious and blatant form of surrogate advertising for liquor brand “Royal Challenge“.The ads for the Royal Challengers team on TV and in the stadium are being tailored to promote the alcohol brand. I wonder if team members like Dravid and Kumble who have always stayed away from promoting any tobacco and alcohol brands in the past had expressed their reservations in private. Also I had expected some criticism from Bangalore / Bengaluru, because a popular whisky brand representing the city isn’t very cool.Drinking has traditionally been discouraged in Indian households however the trend has been changing with fashion drinking on the rise. A proactive anti-tobacco and alcohol health minister I guess is good for the country as a majority of other social problems spawn from alcoholism.Prohibition definitely won’t work but making smoking and drinking uncool will get Indian society great results in the long run.>> The Supreme Court of India has since pointed out that the team was not named ‘Royal Challenge’ , the liquor brand, but ‘”Royal Challengers“. ‘Only those who drink can be attracted by these things,’ the bench observed in a lighter vein, alluding to the fact that a name would not have any effect on non-drinkers.

CONCLUSION

Inference

Through exploratory research we can infer that some companies are using the strategy to advertise products like liquor or tobacco ,the direct advertisement of which is otherwise banned in our country they are doing so through surrogate advertising .It is helping them by duplicating the brand image and indirectly advertising these products which are banned. Kingfisher,502 pataka chai ,manikchand etc are some the examples.

It is helping the company to generate sales for banned products. Though government has passed many acts to prohibit it as it is harming the society a lot because children cannot distinguish between the banned products and the advertised product and through the past trend it seems that this will continue in the future i.e surrogate advertising as government is also not strict towards its action because these products are highest revenue generator

Future prospects of surrogate advertising

It has never been easy for liquor companies to advertise in India and the companies have been taking the surrogate advertising route to make their brand names visible. Thus, there have been numerous brand extensions – be it CDs, mineral water, achievement awards, even an airline and an IPL cricket team – flaunting the names of liquor brands and companies.

According to Allan Colaco, Secretary General, Advertising Standards Council of India (ASCI), surrogate ads formed 5 per cent of the total Indian advertising industry, which stands at Rs 21,000 crore (approx $4.5 billion), as per the Pitch Madison Media Advertising Outlook ’09 which is expected to grow in 2010 and 2011 as marketers are finding in new avenues and innovative techniques like surrogate advertising through movies wherein the produts are shown in the movie or the movie clips are sponsored by the advertisers. This not only generates intrest in the viewers but also reminds them about the product indirectly.

Government cannot ban the advertising totally because tobacco products are the major source of revenue for our government. So as they can sell it they can advertise it(though not directly)

REFERENCE

1. http://encyclopedia.laborlawtalk.com/Advertisement.2. www.businessstandard.com/strategist/storypage.php3.EBSCO