Surrogate Advertising

A STUDY ON SURROGATE ADVERTISING BY SASWA SAS WATA TA PAL

Title Tit le of the Pro Project ject

SURROG SURR OGA ATE AD ADVE VER RTI TISI SING NG:: It Its s growth, impact & consumer perception Submitte b!

"#$i i# #te% &R' SA SAS SWATA PAL "olle(e%

Roll No'% &e$tor%

)' D' BIRLA INSTITUE *DEPART&ENT O+ &ANAGE&ENT, -./ PRO+ESSOR PUR0AIT

ANUPA&

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Date:

To, The Controller of Examinations, E xaminations, Jadavpur University, University, Kolkata.

Respeted !ir, ", !#!$#T# %#&, take full o'nership of this 'ork, titled: (!URR)*#TE #D+ERT"!"*: #D+ERT"!"*: "ts -ro'th and onsumer pereption . #ll the referenes used are 'ell akno'led-ed in the /i0lio-raphy. /i0lio-raphy.

This This %ro1 %ro1e ett Repo Report rt is in part partia iall fulf fulfil illm lmen entt of the the re2u re2uir irem emen ents ts of *radua *raduatio tion n De-ree De-ree in /ahel /ahelors ors of /usine /usiness ss #dmin #dminist istrat ration ion 34onou 34onours5 rs5 from Jadavpur University. University.

6ours 6ours sinerely, siner ely,

!i-nature ame: !#!$# !#!$#T# %#& %#& Re-istration o.: Roll o.: 789

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Date:

To, The Controller of Examinations, E xaminations, Jadavpur University, University, Kolkata.

Respeted !ir, ", !#!$#T# %#&, take full o'nership of this 'ork, titled: (!URR)*#TE #D+ERT"!"*: #D+ERT"!"*: "ts -ro'th and onsumer pereption . #ll the referenes used are 'ell akno'led-ed in the /i0lio-raphy. /i0lio-raphy.

This This %ro1 %ro1e ett Repo Report rt is in part partia iall fulf fulfil illm lmen entt of the the re2u re2uir irem emen ents ts of *radua *raduatio tion n De-ree De-ree in /ahel /ahelors ors of /usine /usiness ss #dmin #dminist istrat ration ion 34onou 34onours5 rs5 from Jadavpur University. University.

6ours 6ours sinerely, siner ely,

!i-nature ame: !#!$# !#!$#T# %#& %#& Re-istration o.: Roll o.: 789

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DECLARATION

" here0y delare the follo'in-: The 'ord ount of the dissertation is is ;9< 'ords approximately. approximately. The material ontained in this dissertation is the end result of my o'n 'ork. Due akno'led-ement has 0een -iven in the 0i0lio-raphy and referenes to all soures used 0e they eletroni, personal and printed. " am a'are that my dissertation may 0e su0mitted to a pla-iarism detetion servie 'here it 'ill 0e stored in a data0ase and ompared a-ainst 'ork su0mitted from this institute or from any other institute. "n the event that there is a hi-h de-ree of similarity in ontent deteted, further investi-ations may lead to disiplinary ations inludin- the anellation of my de-ree aordin- to Jadavpur University rules and re-ulations. " delare that the ethial issues have 0een onsidered, evaluated and appropriately addressed in this researh. " a-ree to maintain an eletroni opy or setion of the dissertation to 0e plaed on the e=learnin- portal, if deemed appropriate, to allo' future students the opportunity to see examples of the past dissertations and to 0e a0le to print and do'nload opies of they so desire.

!i-nature: Date: ame: Roll o.: /ath:

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A STUDY ON SURROGATE ADVERTISING BY SASWATA PAL

ASTRA!T

Surrogate advertising is done when the original product is not allowed to advertise itself on mass media.In India, alcohol brands are not allowed to give advertisements on television, so alcohol marketing firms use surrogate products like mineral water, soda, juice to hit consumers with the brand name. The brand name of the alcohol product is the same as the surrogate product. In the context of Alcohol and tobacco marketing, the only way to succeed to present a surrogate advertising which remind to regular users as well as creating curiosity among non users.ne essential function that surrogate advertising does is that of brand recall and not necessarily an exercise in increasing sales. The product shown in the advertisement is called the !surrogate.! The surrogate could either resemble the original product or could be a different product altogether, but using the established brand of the original product. The sponsoring of sports"cultural" leisure events and activities using a li#uor brand name also falls in the category of surrogate advertising. This paper critically examines the various factor of surrogate advertising like evolution of surrogate advertising, their impact, and emerging trends in surrogate advertising, increased awareness.It also studies the continuously changing scene of different aspects of surrogate advertising.

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SERIAL NU&BER

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CHAPTER 1 INTRODUCTION

Advertising is a form of marketing communication used to promote or sell something$ usually a business!s product or service. Advertising is to promote the sales of a product or service and also to reach masses to inform about the product attributes. It is an effective way of communicating the value of a product or service with large exposure to target consumer. It uses different types of appeals to connect to consumers spread across the globe. %irtually any medium can be used for advertising. &ommercial advertising media can include wall paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and television adverts, web banners, mobile telephone screens, shopping carts, web popup, skywriting, bus stop benches, human billboards and forehead advertising, maga'ines, newspapers, town criers, sides of buses, banners attached to or sides of airplanes, in(flight advertisements on seat( back tray tables or overhead storage bins, taxicab doors, roof mounts and passenger screens, )usical stage shows, subway platforms and trains, elastic bands on disposable diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles, the opening section of streaming audio and video, posters, and the backs of event tickets and supermarket receipts. Any place an *identified* sponsor pays to deliver their message through a medium is advertising.

1. Television + This is the most common mode of advertisement. As we have

discussed earlier in the article, substitutes are used to portray the concerned product. Advertisements of beverages are significant example of these. 2. Online advertising - This has become one of the widest medium for use after

the boom of technology and internet globally. &ompanies can find easy

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audiences here which fall in the potential target segments. This medium also has advantages of low costs and more target customers effective reach. -everage &ompanies promote their products extensively through this medium be it social networking platforms or community forums.

3. Billoard Advertising - In the outdoor world far from the silver screen of moving

images and sound, billboards are used for these types of advertisements. or the brand to choose this way, they need to create strong brand identification among consumers. /enerally the name of the brand along with the image from the T%& or the message are used which creates the immediate recall among the consumers for the brand products if they are exposed to it earlier in one form or the other. !. "#onsors$i# o% live events & s$o's & %ests - &ompanies partner with music

concerts, live shows, college fests etc. for sponsorship to give their brands the much needed visibility. /enerally beverage is perceived as a youth oriented product with that group forming a large part of its customer base. These types of shows, concerts etc. are much more attractive to youth and are created keeping their interests in mind. Tapping on that factor, companies sync their name with these types of programs to give them the benefit of popularity or fame of the product it associates with After implementation of the &able Television 0etworks 1egulation Act ( 2333, new advertising appeal used by most li#uor companies circumvented the ban by what is called surrogate advertising. 4iterally Surrogate Advertising means using the -rand Image of one product 5i.e. legally Allowed(to(6romote7, the companies attempt to promote another product 5i.e. legally -anned(to(6romote7. There are a numerous reasons for companies to restore themselves to such advertisements. ne 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.

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1.1 "URRO(ATE AD)ERTI"IN(* DE+INITION The term !surrogate! is defined a !substitute! i.e. anything which takes place of other. It can be a person, human, product etc. In case of surrogate advertising, a product is used to advertise a certain different product. 8specially products 5for which direct advertising on mass media is prohibited by the laws of land of most countries7 are advertised with use of substitutes like mineral water, soda, )ega cricket team clubs, friend clubs or music &9s. Advertising takes various shapes with level of surrogate advertisements varying from country to country, people to people and product to product. In certain regions of the globe, open advertisements of these products are allowed while some counterparts imposing strict restrictions on them. The basic intention of these types of advertisements is mainly to populari'e the brand and create a slot of consideration in the potential consumers minds.

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1.1.1 NEED +OR THE "TUD, Surrogate resembles the original product or could be a different product altogether, but using the established brand of the original product. The trend of such ads gathered momentum with several medias around worldwide. As heated debates are going over the issue of surrogate advertisements, whether it is needed or not, by doing the study expects to throw light on the subject. -eing these advertisements attracted criticism from various people as they are not only mislead, but also false and dishonest in many cases. And mainly concerned with knowing the knowledge of the public about surrogate advertising.

1.1.2 "COPE O+ OR 2. The study is conducted to explain the concept of surrogate advertisements. :. To study the consumers! awareness towards surrogate advertisements. ;. To evaluate the influence of surrogate advertisement on consumers buying decision. <. To understand the consumer perception towards surrogate advertisements and its products. =. The study was conducted in the city of >olkata for collecting information. ?. The study also helps companies to know the customer views and make appropriate changes in their strategies to reach out to customers in a better way

1.1.3 PROB/E0 IDENTI+ICATION Surrogate advertisements are an emerging trend, but the #uestion is whether these advertisements leave a positive impact on the consumers mind or negative or no impact at all. So therefore it is important to know the detailed perception of consumers when it comes to surrogate advertisements. The study will also help ad agencies like

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gilvy and mather ltd, @T, 4owe 4intas to modify their campaigns and come up with better strategies.

1.1.! RE"EARCH OBECTI)E" 2. Bow surrogate advertising became an emerging trend and its growth. :. &onsumers perception of such ads as to whether they are ethical or unethical. ;. 9oes such advertisements have any impact on consumers buying behavior. <. hether the li#uor"tobacco companies are actually successful in establishing their brands through surrogate advertisements. =. To study the consumer awareness of surrogate advertising, as to whether they actually know what is being advertised. ?. To know the media pattern through which companies are able to retain the brand names through advertisements.

1.2 ORI(IN O+ "URRO(ATE AD)ERTI"IN( It is said that birth of surrogate advertising happened in -ritain, where housewives started protesting against li#uor advertisements which provoked their husbands. The protest rose to a level where li#uor advertising had to be banned and brand owners

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seeing no way out decided to promote fruit juices and soda under the brand name$ the concept later emerged as surrogate advertisements. *Surrogate advertising is a reflection of the hypocritical society that we live in. e consider some products good enough to be sold but not good enough to be advertised. A marketer has to sell his product, and will find means to promote it. I don!t blame him.*

( 6ushpinder Singh, Senior &reative 9irector 5 C )7 A surrogate advertisements is one in which a different product is promoted using an already established brand name. Such advertisements or sponsorships help in contribute to brand recall. The different product shown in the advertisement is called the DSurrogate.E It could either resemble the original product or could be a different product altogether, but using the established brand of the original product . This type of advertising uses a product of a fairly close category, asF club soda, mineral water in case of alcohol, or products of a completely different category 5for example, music &9!s or playing cards7 to hammer the brand name into the heads of consumers. The banned product 5alcohol or cigarettes7 may not be projected directly to consumers but rather masked under another product under the same brand name, so that whenever there is mention of that brand, people start associating it with its main product 5the alcohol or cigarette7.The sponsoring of sports"cultural"leisure events and activities also falls under the purview of surrogate advertising .

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1.3 INDIAN "CENARIO The use of surrogate advertising in India can be traced back to 233= when the &able Television Act 233= was enforced which stated ( *0o advertisement shall be permitted which promotes directly or indirectly, production, sale or consumption of cigarettes, tobacco products, wine, alcohol, li#uor or other intoxicants*. This ban on advertising of such products leads to the emergence of surrogate advertising in India in a big way. Indian market was flooded by surrogate products of established brands of the so called !negative products! and their promotions. -y August :GG:, the IC- )inistry had banned 2: advertisements and leading satellite T% channels including Hee, Sony, STA1 and AajTak were issued show cause notices to explain their rationale behind carrying surrogate li#uor advertisements. 6roduct advertising for li#uor and cigarette companies is banned in the country since 233= by &able Television 0etwork 51egulation7 Act. According to 1ule  5:7 of the Act, no broadcaster is permitted to show advertisement which promotes directly or indirectly promotion, sale or consumption of cigarettes, tobacco products, wine, alcohol, li#uor or other intoxicants, infant milk substitution, feeding bottle or infant food. This ban is now likely to be extended to advertising of extended brands. In @une :GG:, the Indian Information and -roadcasting 5IC-7 )inistry served notices to leading television broadcasters to ban the telecast of two surrogate ads of li#uor brands )c9owell 0o.2 and /ilbeys /reen 4abel. The )inistry also put some other brands ((( Smirnoff %odka, Baywards =GGG, 1oyal &hallenge hiskey and kingfisher beer on a Dwatch list.E A market survey in :GG2 revealed that advertising has a direct influence on the consumption habits of <;2 million people in India and an indirect impact on := million Jaspirants! from the lower income group. &onsidering this and reali'ing that nearly =G per cent of the television owners have access to cable channels, there is no doubt that the hidden call for alcohol consumption behind the surrogate advertisements is not escaping

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A STUDY ON SURROGATE ADVERTISING BY SASWATA PAL the eyes of viewers in the world!s fourth highest li#uor(consuming country. The very purpose of banning li#uor advertisements is defeated by surrogate

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advertising. Answering to the notices, Hee and STA1 stopped telecasting the advertisements, followed soon by AajTak and Sony. In addition, the IC- )inistry hired a private monitoring agency to keep a watch on all the advertisements for violation of the Act. These developments led to heated debates over the issue of surrogate advertising by li#uor companies being allowed on national media. Though the companies involved came out strongly against the IC- )inistrys decision, they seemed to have no other choice, given the highly regulated nature of the li#uor business. 4i#uor producers spent heavily on advertising on the electronic media, particularly T%. Though the broadcasters were bound by the ;G yrs old advertising code, which stated that D0o advertisements shall be permitted which relates to or promotes cigarettes and tobacco products, li#uor, wines and other intoxicants,E the telecast of such product continued blatantly over the years. )ore over the satellite channels garnered about =GK of their revenue from li#uor and cigarettes advertisements. In the peak seasoned it gets almost doubled. 9ue to the ban, li#uor companies focused more on promotions for brand building. They started sponsoring events that projected the DglamourE of the brands, like track racing, car rallies etc. for instance Shaw allace &o. one of the leading li#uor companies in India, conducted the 1oyal &hallenge Invitation /olf tournament, which became an annual event. Some companies also promoted their product through corporate advertising, distributing free gifts like &aps and T( Shirts with the brand name and using glow(signs outside the retail outlets.

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1.! THE CORPORATE "TANDPOINT The industry segment has its own standpoint in defense. The li#uor lobby claims that everything is in accordance to the /overnment regulations. *If a brand has e#uity, why shouldn!t it be allowed to advertiseL Also, brand extension is an industry practice adopted by different product categories,* comments Alok /upta of M- group. *hen we advertise our products, we follow all the guidelines,* declares president, sales C marketing, 1adico>haitan. They clarify that they have stopped showing li#uor advertisements and they are free to use the brand name for any other products. 8ven the &onfederation of Indian Alcoholic -everages &ompanies 5&IA-&7 advertising code maintains that advertisement of products 5real brand extensions7 by the li#uor industry must be allowed. rom a layman!s point of view, their claims seem to be justified. -ut this is a clear example of taking advantage of the loopholes. There is a point to ponder. hen they have stopped showing li#uor advertisements, why the same brand name and logo is used to promote products like cassettes C &9s or mineral waterL They could have assigned different brand names. It seems they have a hidden agenda of highlighting the li#uor or tobacco brand. A similar tussle over the issue of surrogate advertisements in politics was raised in April :GG< on the eve of 4okSabha elections. &omplaints of slanderous and offensive advertisements were raised by two major political parties ( -@6 and &ongress against each other. The issue became so serious that the Supreme &ourt had to interfere in this affair. inally on 2; April :GG<, the &ourt gave a verdict to curb smear advertisements on electronic media. -y appointing 8lection &ommission as referee, the court has tried to put an end to surrogate advertising in politics. According to the &able Act under the ministry of information and broadcasting,( *no broadcaster is permitted to show an advertisement which promotes directly or indirectly,

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sale or consumption of cigarettes, tobacco products, wine, alcohol, li#uor or other intoxicants...*

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0ow 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, li#uor or any other intoxicant will not be permitted*. inally, in April :GG=, the ministry resorted to a ban on surrogate advertisements of li#uor and tobacco products on television. After this directive, the surrogate advertisements are seldom shown on television. 0ow the companies will have to reframe their policies. -ut who will take care of print and outdoor media is not certain. According

to

AS&I

5Advertising

Standards

&ouncil

of

India7,

surrogate

advertisements are harmful. 0ow it will be up to the AS&I to take up the matter with the respective companies.

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1.5 COMPANIES FOLLOWING SURROGATE ADVERTISING

Categor

Al4o$ol

Toa44o

Brands

"rrogates

Seagrams

)usic

)c9owells

ater and Soda

-agpiper

ater, Soda and )usic &9s

1ed and hite

-ravery Awards

-acardi

)usic

>ingfisher

)ineral ater C &alendar

hite )ischief

Bolidays

Imperial -lue

&assettes C &9s

Smirnoff %odka

ruit @uices

1oyal &hallenge

/olf Tournament

1ajnigandha

>esar 6an )asala

/oa /utka

6an )asala

6an 6arag

6an )asala

)anikchand

ilmfare Awards

&hainikhaini

6an )asala

6ataka =G:

6ataka =G: tea

/opal Harda

/opal Supari

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Cigarette

1ed And hite

-ravery Award &eremon

/old lake

Tennis Tournament

ills 4ifestyle

India ashion eek, 4ifestyle

our S#uare

hite ater 1afting C /liding

&harms

Audio &asettes C &9s

Tale 1* Brands and "rrogates

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1.5 RECENT "URRO(ATE AD)ERTI"E0ENT" O%%i4er6s C$oi4e is the leading and well(known brand in whisky market. Actually this brand is advertised by showing mineral water and soda, but all people can know what intention of that advertisement is. It shown that !&! is the brand of officers and for dynamic people

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2717

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A STUDY ON SURROGATE ADVERTISING BY SASWATA PAL Tale 2 * "ales o% O%%i4er6s C$oi4e

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Roal C$allenge F Some cricketers are shown in this advertisement, at the same time time musi music c is playe played. d. At the the end of adver adverti tise semen mentt bran brand d name name !1oy !1oyal al &hallenge! is displayed in bold letters with very small !)usic &9s!. It was also advertised with the help of mineral water.

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Roal "tag* It is well known as !1S!. Instead of advertising whisky, manufacturer had shown )usic &9 and )ega &ricket in the advertisement with theme *)ake it 4arge*. -ut people never try to purchase these products. They always know that 1oyal Stag means whisky.

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1.> "URRO(ATE AD)ERTI"IN(* E0ER(IN( TREND

A recent series of hoardings led me to delve into a very uni#ue trend specific to Indian advertising + Surrogate advertisingP a trend which is fast catching up and has suddenly attracted a lot of innovative and creative brains around the country. 1easonL n one hand, the govt cannot allow public advertising of li#uor companies. -ut ironically, li#uor 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 prohibitedQ Talking about the market si'e and the different segments would not be pertinent to the discussion 5for the records, it is more than 2GG million cases in India7. -ut what is the significance of this trend vis(R(vis the entry points for new players and sustainability of existing onesL )ultinationals 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 formali'ed in this regard, foreign companies continue to be skeptical about their entry. 9omestically, 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. -e it promotions for brand building, or sponsoring events that can be mapped with the Dshowbi'E and DglamourE of the brand, advertisers dont leave many avenues to enhance their visibility. The rule says DAdvertisements which lead to sale, consumption and promotion of li#uor should not be allowed.E So, in Surrogate )arketing, 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 DsurrogateE and advertising through this channel is called DSurrogate AdvertisingEQ It may include &9s, water, clothing, Apple juice, fashion accessories, sports goods or even events sponsoringQ These gimmicks, in turn, help the consumers build a strong e#uity of the parent brand, and with the enhanced visibility, the e#uity of the brand would definitely become higherQ 4i#uor companies were forced to look at innovative

ways of building their brands. ith an objective of enhancing brand recall, companies either engage into Dsurrogate advertisingE or displaying Dsocially responsible messagesE. 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 Dsocially responsibleE messages. $at are t$e ot$er #ra4ti4es 4o<#anies are looing at

5a7 &ompanies are getting involved in Sponsorships of events and have launched their own awards for bravery or lifetime achievementsQ 5b7 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 reali'ed that. 5c7 &atchy jingles have become the norm of the day to ensure that their brands have a high brand recall. 5d7 ith restrictions in other marketing elements + in terms of pricing and distribution, companies have ventured into another important element + 6ackaging. Innovative packaging makes their brands stand out of the clutter, and most of the )ultinationals 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 formali'ed and established in the system. 8lse, innovative workarounds and arm(twisting of laws would be the norm of the day for the entire li#uor industryQ

1.: "URRO(ATE AD* RO/E IN CON"U0ER BU,IN( DECI"ION

/enerally advertisements which showcase the product in a different prospective and highlights the attributes as never been seen before retain the customer share of mind. -ut there is catch in the case of surrogate advertisements. Bere the product is prohibited to be shown( its attributes or features to be portrayed are near to impossible. Their role in impacting the consumer buying decision should be subse#uently limited but surprisingly, it is found that they have a higher role in impacting consumer purchase decisions as compared to general products advertisement owing largely to viewers interest and sense of capturing the message. This fact is also supported by numbers. It is seen that company investing heavily in surrogate advertisements are witnessing more sales rates as compared to those investing none or comparatively less. Nou will be surprised to know advertising budget of beverage companies stretches in the ranges of hundreds of millions of dollars per annum. The only reason understood of investing such high sums is the fact of the recovery through this in the coming future. After all its a ?GGGG crore plus revenue generating market. Surrogate marketing is not a bad way of marketing or illegal marketing. It is just the more creative way if marketing that shows the product even without revealing it. pportunities are hidden everywhere just like the products in surrogate advertisements.

1.8 PRO" AND CON" O+ "URRO(ATE AD)ERTI"IN(

AD)ANTA(E" 2. &ompanies have to spend substantial amount of money for marketing their products. Surrogate advertising to a great extent saves companies from huge expenditure and thus increase the profit margins. :. Surrogate advertising is very much beneficial for domestic players, it not only limits the entry of various )0&s but also creates problem for new entrants in brand building.

;. -an on advertisement reduces competition to a great extent.

DI"AD)ANTA(E"

2. As per AS&I, surrogate advertising is harmful$ there is no logic why the brand name of the banned product shall be used for products like mineral water. It clearly indicates misusing the loopholes. :. The ban severely affects the sale of banned products ;. -an also results in loss of revenues of T% channels and other media.

1.17 RE(U/ATOR, 0EA"URE" Surrogate advertisements are not only misleading, but also false and dishonest in many cases. ith surrogate advertising so widespread, this is the moment to tackle the problem head(on. There should be stringent regulatory measures to curb the practice, such asF 2. )aking transparent laws banning surrogate advertisements for different product under a single brand name, by amending the Trade )arks Act, for instance.

:. 6roviding teeth to the Advertising Standards &ouncil of India to enable it take action against false and misleading advertisements, and keep a close vigil over clever evasion of the law. ;. Asking the electronic and print media to adhere to the advertisement codes and not encourages surrogate advertisements. <. &alling on the AS&I address complaints received from consumers against surrogate advertisements and take appropriate actions immediately. =. &reating a consumer awareness program to help people understand the negative impact of surrogate advertisements. ?. Adopting strict laws to penali'e those companies featuring surrogate advertisements without any real existence of the product. . 1e#uiring 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.

1.11 +E CA"E" O+ "URRO(ATE AD)ERTI"E0ENT" 1= Anbumani 1amadoss, 8x(Mnion Bealth )inister had challenged the name of the

-angalore Indian 6remier 4eague 5I647 cricket team, *1oyal &hallengers*, which was an obvious form of surrogate advertising for li#uor brand *1oyal &hallenge*. After which, the Supreme &ourt of India in August :GGO pointed out that the team was not named !1oyal &hallenge!, the li#uor brand, but *1oyal &hallengers* so this will not lure the viewers as only those who drink can be attracted by these things. The Supreme &ourt of India also had a simple advise Datch cricket and do not see too much of li#uor in itE. In the aforementioned matter the bench observed in a lighter vein alluding to the fact that a name wouldnt have any effect on non drinkers. >eeping this in note, the Indian -roadcasting oundation 5I-7 started to take on the surrogate li#uor advertisements, where it ruled that if li#uor companies promote any juice, mineral water or soda then they should show these products in a proper manner.

2= A television commercial featuring from the sport of cricket, ace spinner

Barbhajan Singh for 1oyal Stag having a tagline Dits your life. )ake it largeE and Indian cricket team captain ).S 9honi for Mnited Spirits having tagline DThe 0o.2 spirit of 4eadershipE, has stirred a controversy between the Indian cricketers Barbhajan Singh and ).S 9honi because of a rare case of a spoof in surrogate advertising.

3= In ctober, :G2G the 1oyal Stag ad showed the Indian spinner opening not to

work in his fathers ball bearing factory and focus on cricket instead. At the end he asks the viewers with his achievement if he has Dmade it largeE in life. In addition to this, recently )c9owells 0o.2 6latinum commercial shows a Barbhajan look(alike making ball bearings of the si'e of the gym balls at his fathers factory, asking Dhave I made it largeE, only to get slapped by his father for creating very large gym balls and for being incompetent. Then it shows 9honi saying Dorget large and do something differentE.

!= In view of the above, Barbhajan through his lawyers on @uly 2O, :G22 served a

legal notice to %ijay )allyas M- Spirits for a television commercial for )c9owells 0o.2 6latinum, where the notice claimed that commercial shows Indian skipper 9honi DmockingE him, his family and the Sikh community, and for which an unconditional public apology to Barbhajan family in all widely read newspapers as well as television channels prominently and withdrawal of the commercial within three days of receiving it was asked. urther a compensation of 1s.2 4akh to the cricketers family towards the cost of notice was also asked. 9= Seagram, Indias largest multinational player in the spirits business had been

operating across the entire wine and spirits spectrum in India since 233=. It had generated consumer pull through effective advertising. ith Indias entry into the orld Trade rgani'ation in :GG2, the decision to open up the sector for imports and subse#uent restructuring in :GG:(G; led to intensification of competition in the industry. This battle at the marketplace was further fuelled by anticipation of a steep fall in sales due to ban on li#uor advertising. In 0ovember :GG<, Seagram India was revisiting its marketing communications plans. ith the aim of achieving greater market presence, it was developing its marketing communication strategy to achieve differentiation and competitive edge in the market. The company was exploring the emphasis on sales promotion rather than advertising to achieve that end.

1.12 /E(A/ CA"E" A(AIN"T "URRO(ATE AD)ERTI"IN(*

•

)onopolies and 1estrictive Trade 6ractices &ommission in 1eF )c9owell and &o. 4td. %s unknown on th ebruary, 233.-ench$ S &hakravarthy@udgement $ S.&hakarvarthy, )ember (((The instant case en#uiry with an advertisement that appeared at page ?? in The Illustrated weekly of India of date 0ovember :;, 23O?.)c9owell and &o. 5hereinafter referred to as DrespondentE7.The advertisement depicts a bottle on which is engraved D)c9owells 9iplomat &olgneE. The same advertisement carries the picture of )s. 9imple >apadia, a film actress. Mnderneath the picture is the caption Dwhat makes him my choice is his choiceP9iplomatE. The commission came to prima facie view that the said advertisement though apparently refers to colgne, leaves a misleading impression on the readers that the message is in regard to the good #uality and usefulness of whisky manufactured by it under the brand name D9iplomatE.

•

Mnited -reweries 4imited %s )umbai /rahak 6anchayat on < September, :GG?.8#uivalent citationsF I 5:GG7 &6@ 2G: 0&((()umbai /rahak 6anchayat filed a complaint against appellant as well as estern 1ailway for having adopted unfair trade practices in prominently displaying"exhibiting false, misleading and surrogate li#uor advertisements on the coaches of the estern 1ailway trains and to seek discontinuance of the same along with corrective advertising by the Mnited -reweries 4imited to neutrali'e the effect of said advertising C punitive damage. The description matches with the D-agpiper hiskeyE and not D-agpiper SodaE. There was no -agpiper soda available in the market.

CHAPTER 2 /ITERATURE RE)IE 

The basic #uestion that needs to be answered is whether advertising make any material impact in the sales of alcohol or tobacco products. >ent ). 4ancaster and Alyse 1. 4ancaster disregard that there is any difference in sales of tobacco and alcohol related products with or without advertising. They examined most of the published evidence worldwide on the effects of overall advertising and of advertising bans on aggregate demand of cigarette and tobacco products. -ased on their exhaustive research they argued that partial bans on advertising are likely to have a very little or no impact on the consumption of such products, the reason being a complete ban in advertising of such products itself did not had any impact on sales or aggregate demand of these products. Surrogate advertising is an issue which needs to be understood with respect to Indias legal and ethical environments of 6romotions.



6arulekarAjitArun 5:GG=7, in his paper examines the impact of surrogate advertising of alcohol brands on their brand e#uity. The purpose of the study was masked through the experimental design in order to minimi'e manipulation effects. In the main study, subjects were se#uentially exposed to television ads, one ad at a time,of the :G brands used in the pre(test. The findings of the paper support the notion that brand e#uity will be least affected in consumers with prior consumption experience, ad exposure or brand knowledge of the alcohol brand.



9r. S. /. >hawas6atil and 4axmikant S. Burne 5:G227, studied the effectiveness of surrogate advertising and found few whisky brands are powerful in the market like 1oyal Stag " fficers &hoice " )c9owells as their advertisements are more creative and powerful. According to the paper maximum respondents got the intention behind surrogate advertisements, i.e., to advertise li#uor, whisky products. It means surrogate advertisements are effective in targeting their

customers. Surrogate advertisement is a successful strategy because maximum respondents are changing their purchase decisions.



)ehta 5:GG;7 is of the opinion that Surrogate advertising is not only misleading, but also presents false and dishonest information in many cases. It has a very negative effect on the markets as a whole. ith so much widespread of surrogate advertising and its ill effects, it 9s time to tackle the problem and stringent regulatory measures should be in place to curb such practice.



&hander and Sharma 5:GG?7, tried to study the perception of people towards surrogate advertising by using a statistical tool factor analysis. The results of their research were surprising as they found out that the in general, the perceptions that govern the attitude of people towards these advertisements is much on the negative side rather than being on the positive side. They neither liked the advertisements nor the favoured them. A large proportion of the respondents felt that surrogate advertising is anti social as it tries to promote the product that is generally considered as harmful for the society, it promotes wrong impressions and tries to fool the customer insulting customer intelligence, leads to moral degradation and is deceptive. Bowever a few respondents took surrogate advertisements as a way of fair practice, entertaining and associated it with modern life style. A set of respondents were completely unaware of the phenomena of surrogate advertising while a few others were confused about the same. This research led to the conclusion that whatsoever may be the positive perceptions revealed, still a lot of people perceived surrogate advertising as negative, unethical and immoral.

CHAPTER 3

3. RE"EARCH 0ETHODO/O(, A plan of data collection, data analysis was formulated after the objective of the project was defined. 9ecisions were taken on data collection, sampling tools, research tools. 1esearch is essentially a systematic en#uiry seeking facts through objective verifiable methods in order to discover the relationship among them to deduce from them broad principles of law.

3.1 T,PE O+ "TUD, The descriptive research design is used for analy'ing and studying Surrogate Advertising. It is very simple C more specific than explanatory study.

The descriptive study is a fact finding investigation with ade#uate interpretation. The descriptive study aims at identifying the various characteristics of a problem under study. It reveals potential relationships between variables and also setting the stage for further investigation later. The results of such research are not usually useful for decision making by them, but they can provide significant insight into a given situation. Although the results of #ualitative research can give some indication as to the why, how and when something occurs, it cannot tell us how often or how many.

The study also includes surveys and fact en#uiry of different kinds. As the research conducted was observatory there was a #uestionnaire and hence sample si'e or data interpretation was done.

3.2 "OURCE" O+ DATA 2. Priolkata. :. "e4ondar dataF The secondary data was collected from research papers, articles, journals.

3.3 0ETHOD The research is done through a survey using google forms. The link to primary data collection is given in the bibliography. It was done in the form of a #uestionnaire with approx 2: multiple choice #uestions. It was held in the city of >olkata.

!.! "A0P/IN( TECHNIUE 6robability

sampling was

adopted

to

conduct

the

survey.

It

is

a

a sampling techni#ue wherein the samples are gathered in a process that gives all the individuals in the population e#ual chances of being selected. Individuals were selected on the basis of ease of access therefore random and convenience sampling were carried out for collecting primary data.

!.9 "A0P/E "IE Approximately around
!.5 "TATI"TICA/ TOO/" U"ED +OR ANA/,"IN( THE DATA 2. 6ie charts :. -ar /raphs ;. Simple tabulations. <. 6ercentage analysis in pie charts and tabulations.

!"A#TER 0

DATA ANA+(SIS AND INTER#RETATION

.'6 Demo(r#:hic :ro;le of re<:o$e$t< AGE Age 1 < .6 .6 < /6 /6 < 06 06 an; a>o?e Tota@

No% o respon;ents $6 .0 4 . 06 GENDER

#ercentage .6= 26= $1= 1= $66

.'7 &EDIA +RO& W=I"= ADVERTISE&ENTS ARE SEEN T=E &OST'

0edia

No. o% Res#ondents

Per4entage

Television Print
23 2

92.8 9.8

Internet

12

25.9

0oile

3

1!.>

TOTA/

!7

177

I NTERPRETATI ON:Her eweseet hatmaj or i t yoft he r espondent st hati s52% wat c hadver t i sement st hr ough T e l e v i s i o nandt he nc o me si nt e r ne tandmo bi l eandpr i nt me di af o l l o ws .

.'8 =OW O+TEN SURROGATE PRODU"TS ARE SEEN AS ADVERTISE&ENTS'

No. o% Res#ondents

Per4entage

Reglar O44asional

13 11

3!E 2:E

Rare

8

2!E

Never seen

2

5

Dont Re
1

!

TOTA/

!7

177

I NTERPRETATI ON:Her eweseet hatadver t i sement sof s ur r o gat epr o duc t sar ese e nv e r yo f t e nbymo s to ft he r e s po nde nt s .Ve r yf e w pe o pl ehasno ts e e no rdo n’ t

r e me mbe radv e r t i s e me nt sr e l at e dt os ur r o gat e adv e r t i s e me nt s .

.'. AWARENESS O+ SU"= ADVERTISE&ENTS BEING BANNED IN INDIA

No. o% Res#ondents

Per4entage

No

1> 22

!! 95

TOTA/

!7

177

,es

I NTERPRETATI ON:–Thi sr epor tshowst hatpeopl ear enot r e al l yawar eo fs ur r o gat eadv er t i s eme nt s .I nt hi spi ec har t wes e et hatmo r et han50% o ft her e s po nde nt sar eno tr e al l y awar et hats uc hdi r e c tadv e r t i s e me nt sar ebanne di nI ndi a.

.'/ DO YOU +EEL SU"= ADVERTISE&ENTS S=OULD BE BANNED IN INDIA

I NTERPRETATI ON:–Fr om t hi spi ec har tweseet hatmaj or i t y ag r e e st hats ur r o g at eadv e r t i s e me nt ss ho ul dno tbebanne d. Av er ysmal lpr opor t i onoft her espondent sagr eet hatt he y shoul dbeandappr ox20% ar enotsur e.

.'2 DO YOU T=IN0 RE>UIRED IN INDIA ?

SU"=

ADVERTISE&ENTS

I NTERPRETATI ON:–Amaj or i t yar enotsur e.Howev era l ar g erpr o po r t i o no fr e spo nde nt sag r e et hats uc h adv e r t i s eme nt sar er e qui r e d%

ARE

.'2 DO YOU PUR"=ASE SURROGATE PRODU"TS LI0E WATER@ &USI" "DS@ "LUB GLASSES A+TER T=EY ARE ADVERTISED ?

I NTERPRETATI ON:–Her ewese et hatamaj or i t ydonot r e al l ypur c has es ur r o gat epr o duc t s .The r e f o r ewec ans ay t hats ur r o gat eadv er t i s i ngdo esr e al l yaffe c tt hes al e so f s ur r o gat epr o duc t s .Butt hi si sno te nt i r e l yt r ueaswes ee t hat20% dopur c hasesur r ogat epr oduc t s%

.'3 DO YOU RE"ALL T=E ORIGINAL PRODU"T A+TER T=E SURROGATES ARE ADVERTISED ?

I NTERPRETATI ON:–Her ewes eet hat30% oft he r e spo nde nt sdono tr e c al lt heor i gi nalpr o duc t s .Mo r et han 40% dor e c al lt heor i gi nalpr o duc t sands t i l l27% ar eno t s ur e .I ts ho wst hats ur r o gat eadv e r t i s eme nt sar eno tt hat e ffe c t i v easi ts ho ul dbe .

.'4 W=I"= O+ T=ESE BRANDS ARE SEEN T=E &OST W=EN IT "O&ES TO SURROGATE ADVERTISING ?

I NTERPRETATI ON:–Weseet hatMc Dowel l ’ si st heonet hat i st her e spo nde nt sar emo r ef ami l i arwi t h.Ki ngfis he rf o l l o ws andt henoffic er sc hoi c e.Appr ox12% oft her espondent sar e f ami l i arwi t ht hebr andRo yalChal l enge.

.'4 DO YOU T=IN0 SURROGATE ADVERTISE&ENTS ARE ET=I"AL ?

I NTERPRETATI ON:-A maj or i t yagr eest hatsur r ogat e adv e r t i s e me nt sar ee t hi c al .Ho we v e rt he r ei sal s oac hunk t hatdi sagr eest ot hi s.Al sof e w ar eno tr eal l ysur e.

!"A#TER 2 !ON!+USION

Surro(#te #erti
2%$ 'INDINGS O' T"E STUD( $% To ep@ain the concept o surrogate a;?ertisements an; how it >ecame an emerging tren;% Thi< uBing ;ecision% B! #$#l!i$( the :rim#r! #t# it i< $oF$ th#t ue@ishing their >ran;s an; the most eHecti?e me;ia pattern o such a;?ertisements% Dr' S' G' 0h#F#
5.2"U((E"TION" +reKue$c! of
•

•

•

•

•

•

5.3 /I0ITATION" O+ THE "TUD, •

Study is restricted to the geographical limits of >olkata. 4imited period of survey and limited sample si'e 5
•

answered at all to get complete and accurate information re#uired for the study. 4atest sales figures of various brands could not be arranged due to lack of resources.

5.! +UTURE "COPE There is a wide scope for future research on surrogate advertising, the research could be carried out as a comparative study analysis in the Indian context and perception of images that the viewers have while watching the television ads >

of these banned

products and

also how surrogate

advertisements has made the viewers to persuade in consuming these. This study opens up new ground for further study. This study concentrates on basic awareness and perception of consumer on surrogate Ads. Studies can be done with main area of focus on ethical concerns of surrogate advertising, its positive and negative effects to the society.

BIBLIOGRAP=Y

)E RE'EREN!ES 6' htt:%HHFFF'#c#emi#'euH62.556.8H SURROGATEADVERTISINGT=EAWARENESSANDDOESIT=ELPSTOPRO

&OTE"OREPRODU"TITSEL+ININDIAN"ONTET htt:%HHFFF'mb#<ool'comHbu
Geor(e E' Belch C &ich#el A' Belch *7-6-, 'Aerti
-OURNA+S RE'ERRED

6' Dr' S' G' 0h#F#< P#til' L#Jmi#$t S' =ur$e' *7-66,'Surro(#te #erti
QUESTIONARE

A STUD( ON SURROGATE ADVERTISING ( SAS)ATA #A+

Sur?eB on consumers perception o surrogate a;?ertising

Top o 'orm (OUR NAE

AGE o

1  $6

o

$6  $1

o

$1  .6

o

.6  .1

o

.1  /6

o

/6  /1

o

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o

a@e

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EDIA 'RO )"I!" ADVERTISEENTS ARE SEEN T"E OST o

TE+EVISION

o

INTERNET

o

#RINT EDIA

o

OI+E

"O) O'TEN SURROGATE #RODU!TS ARE SEEN AS ADVERTISEENTS o

RARE

o

REGU+AR

o

O!!ASIONA+

o

NEVER SEEN

o

DONT REEER

A)ARENESS O' SU!" ADVERTISEENTS EING ANNED IN INDIA o

(ES

o

NO

DO (OU 'EE+ SU!" ADVERTISEENTS S"OU+D E ANNED IN INDIA 9 o

(es

o

No

o

aB>e

DO (OU T"IN* SU!" ADVERTISEENTS ARE RE7UIRED IN INDIA 9 o

(es

o

No

o

aB>e

"O) 'AR DO (OU AGREE T"AT T"ESE ADVERTISEENTS S"OU+D E ANNED 9

o

Strong@B ;isagree

o

Disagree

o

Neutra@

o

Agree

o

Strong@B agree

DO (OU #UR!"ASE SURROGATE #RODU!TS +I*E )ATER, USI! !DS, !+U G+ASSES A'TER T"E( ARE ADVERTISED 9 o

(es

o

No

o

aB>e

DO (OU RE!A++ T"E ORIGINA+ #RODU!T A'TER T"E SURROGATES ARE ADVERTISED 9 o

(es

o

No

o

aB>e

)"AT IS (OUR #ER!E#TION AOUT SU!" ADVERTISEENTS 9

o

ENTERTAINING

o

ORING

o

INTERESTING

o

DONT !ARE

o

'UNN(

o

DISTURING

o

ISGUIDING

)"I!" #RODU!T !ATEGOR( "AS T"E AIU 'RE7UEN!( O' ADS 9 o

A+!O"O+

o

#AN ASA+A

o

!IGARETTES

DO (OU T"IN* SURROGATE ADVERTISEENTS ARE ET"I!A+ 9 o

(es

o

No

o

aB>e

)"I!" O' T"ESE RANDS IARE SEEN T"E OST )"EN IT !OES TO SURROGATE ADVERTISING 9 o

RA-NIGAND"A

o

*ING'IS"ER

o

RO(A+ !"A++ENGE

o

I#ERIA+ +UE

o

O''I!ERS !"OI!E

o

!DO)E++CS

Surrogate Advertising

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