Your SlideShare is downloading. ×
Ad spl
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Ad spl

715
views

Published on

project report

project report

Published in: Education

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
715
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
33
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. AMITY SCHOOL OF COMMUNICATION ---AMITY UNIVERSITY, UTTAR PRADESH--- TOPIC OF THE SPECIALIZATION-NEED AND EFFECTIVENESS OF SURROGATE ADVERTISING IN LIQUOIR INDUSTRY BY- NAME: HEMANGI CHATTERJEE ROLL NO: A2004707B73 COURSE AND BATCH: BJMC(2007-10) UNDER THE GUIDANCE OF MS. DHANAKSHEE KUKREJA
  • 2. AMITY SCHOOL OF COMMUNICATION _______________________________________________ CERTIFICATE OF COMPLETION MS. DHANAKSHEE KUKREJA LECTURER AMITY SCHOOL OF COMMUNICATION AMITY UNIVERSITY NOIDA, UP THIS IS TO CERTIFY THAT MS HEMANGI CHATTERJEESTUDENT OF BJMC ( 6TH SEMESTER) HAS PREPARED PROJECT TITLES “NEED AND EFFECTIVENESS OF SURROGATE ADVERTISING IN LIQUOIR INDUSTRYI” UNDER MY SUPERVISION. IT IS RECOMMENDED FOR THE AWARD OF THE DEGREE. MS. DHANAKSHEE KUKREJA
  • 3. ACKNOWLEDGMENTSAccomplishment of any project depends on the cooperation and alliedefforts of several sources of material, knowledge, energy and time hencethe opportunity has been given to me.I would like to thank Ms. Dhanakshee Kukreja, my project guide for herconstant guidelines and advice without this project would not have beencompleted.Name of the student: Hemangi ChatterjeeCourse: BJMC
  • 4. ABSTRACTThe present research has been conducted in a bid to comprehensive andcomparative study of the advertising strategy used in liquor industrywhich makes the need of surrogate advertising exemplary, as the onlyway of advertising for liquor industry and also to know the effectivenessof surrogate advertising in influencing customer perception towards theproducts offered by the company In the present research, in order to collect primary data sample wereselected conveniently. 60 Delhi based liquor consumers were selected forcollecting primary data.Alcohol advertising has the potential of promoting changes in attitudesand social values, including publicizing the desirability of social drinkingto its viewers, which all encourage a higher consumption of alcohol. It isknown that advertising can influence consumer choices, have a positiveshort-term impact on knowledge and awareness about alcohol, but it hasproved difficult to measure the exact effects of advertising on the demandfor alcoholic beverages, in part because the effects are likely to becumulative and long-term. However, the recent literature suggests thatadvertising increases the overall demand, and influence of consumerstowards higher consumption and harmful drinking. The findings of thepresent research also greatly substantiate this fact as approachedconsumers in greater majority agree to great extent that advertisingincreases their overall demand and consumption of harmful drinking.It is generally recognised that surrogate advertising is even moreinfluencing than normal advertising, but the liquor industry has nochoice. Of course, this strategy assumes that the brand and, in some
  • 5. cases, the advertisements, are already well known. Otherwise, suchadvertising may not serve any purpose. It is difficult to evaluate theeffectiveness of surrogate advertising. So far as the present research isconcerned , it reveals that for many liquor consumers surrogateadvertising is even more influencing than normal advertising, whereasfor many others surrogate advertising is less or non influencing thannormal advertising.
  • 6. INDEXINTRODUCTION Aims of the study Objective of the studyLITERATURE REVIEWRESEARCH METHODOLOGYFINDINGS AND ANALYSISCONCLUSION AND RECOMMENDATIONSBIBLIOGRAPHYAPPENDIXQUESTIONNAIRE
  • 7. INTRODUCTIONFor some “advertising” is a surrogate for being on stage—in the limelight.When people work on a brand, they identify with the brand, and its“advertising” becomes part of them. Therefore when ads and otherpromotional brand messages appear on TV, radio, in magazine andbillboards, a part of them is there too—on stage. Another reason is thechallenge. The majority of “advertising” messages are not very good andsome are down right insulting, as I’m sure you have noticed. Thus, theopportunity to do something that works and that you can be proud off, isalways sitting out there. Finally, for me, “advertising” is a way of being insales without all the constant face-to-face rejection. When we are part ofany kind of halfway decent promotional effort, we will sell something. Itmay not always pay out, but at least we changed some people’s behavior.What this means when it comes to studying “advertising” is that thelearning experience can be interesting, informative, and really fun. Whenmost people think about advertising, they think about the creative side--the clever slogans and attention getting pictures and illustrations. Forthese clever slogans and graphics to be effective, however, requires a lotof research, strategic thinking, and a good understanding of customerbehavior. It also requires knowing and being able to apply basic industrypractices. 1
  • 8. Surrogate advertising is the most insidious form of advertising, where thebiggest hypocrites are the media who gleefully accept these lucrativeadvertisements, while at the same time harping on moral standards thattheir readers/viewers should inculcate.In India, the trend of surrogate advertisement gathered momentum withthe Cable TV Network Regulation Act, which prohibits tobacco and liquoradvertisements on TV channels. The liquor industry has intentionallyblurred the line between products, advertising `old wine in a `new bottle,only this time with a soft-drink label. The advertisement comes with thesame music and punch line as the one for the popular liquor brandtelecast before the ban on liquor advertisements. This phenomenon,known as "surrogate advertising" (duplicating the brand image of oneproduct extensively to promote another product of the same brand), hasbecome commonplace.In fact, so brazen is the attempt to lure customers and advertise theliquor brands that nothing is left to chance. In most cases, licenseeshave actually been taking hefty amounts from the liquor companies toallow them to advertise their brands. In India, where even surrogateadvertisement, showing mineral water or sports gear of the same nameas popular liquor brands, is banned, it is surprising the licensees ofthese kiosks are getting away with so much advertising. The companies 2
  • 9. are actually luring youngsters to start drinking by advertising theirbrands. Somebody must put an end to this. 3
  • 10. Aim of the Study • This study is aimed towards accomplishing the objective of a comprehensive and comparative study of the advertising strategy adopted in liquor industry i.e. Surrogate advertising. • To study the need and effectiveness of surrogate advertising in influencing customer behavior in liquor industry. • In India, the trend of surrogate advertisement gathered momentum with the Cable TV Network Regulation Act, which prohibits tobacco and liquor advertisements on TV channels. The liquor industry has intentionally blurred the line between products, advertising `old wine in a `new bottle, only this time with a soft-drink label. One nothing without customers understanding that organization exists for no other reasons than to meet customer needs and expectations, for this liquor industry has no option but rather advertise in the name of juices, sodas etc to send there message to the customer. 4
  • 11. OBJECTIVES OF THE STUDYThe objective of this research work is comprehensive and comparativestudy of the advertising strategy used in liquor industry which makes theneed of surrogate advertising exemplary, as the only way of advertisingfor liquor industry and also to know the effectiveness of surrogateadvertising in influencing customer perception towards the productsoffered by the company. • To study the reasons which made surrogate advertising as the only way of advertising in liquor industry • To study the effectiveness of surrogate advertising in influencing customer behavior towards products of liquor industry. 5
  • 12. LITERATURE REVIEW SURROGATE ADVERTISING: GENESIS AND DEFINITIONSSurrogate advertising is “an advertisement of a brand extension in sucha way that brings clear recall of the core product in the mind of theconsumer”. The literal meaning of ′Surrogate Advertising’ is duplicatingthe brand image of one product extensively to promote another productof the same brand.Surrogate advertising involves advertising for products using acompany’s brand to promote other products sold using that same brand.For example, it is technically acceptable to promote Smirnoff cassettes intelevision ads in India, but not Smirnoff vodka.In the advertising world ‘surrogate advertising is a politically correctterm used to define fraudulent pieces of communication. For example, allthose playing cards, soda water bottles, apple juices, mineral water andother product ads we see, are actually clever promotions for liquor andcigarette brands by the same name.Surrogate Advertising is quite rightly frowned upon as it is but a cynicalattempt at promoting products that public policy decrees is not insocietys interest. But the Government should guard against any over-zealous interpretation of what constitutes surrogate advertising so as not 6
  • 13. to hurt legitimate efforts at brand extension. Given the integrated natureof markets, brand promotion has become an elaborate exercise, oftenextending across national boundaries.Surrogate advertising has been around ever since someone decided thatcertain things were probably not good in the interest of the community atlarge. The government has out rightly banned the advertising andpublicity of alcohol and tobacco in any form; so, tobacco and alcoholcompanies have found a way to circumvent the ban on advertising byresorting to surrogate advertising in order to keep their brand alive in theminds of consumers.Surrogate advertising is usually born out of regulation. This regulationmay either be government imposed or self-imposed by a regulatory bodyof the industry. By its very definition, surrogate advertising is somethingthat the advertiser resorts to in an attempt to get his brand across to theconsumers mind without violating any regulatory guidelines. Certainly itis not ideal but in a number of cases this is the only way you can reachyour consumers in a cost-effective and meaningful way.Surrogate advertising is used in two contexts: the first is when acompany “farms out” the entire marketing function and the groupproviding the service is called a "surrogate marketing department. 7
  • 14. The second is what is happening in India with respect to the ban ontobacco and alcohol advertising. Companies in banned industries areintroducing brand extensions with products that are legal to advertisewith the same brand name as the banned product. One liquor companyintroduced apple juice with the same brand name as the liquor. The ideais the companies can advertise freely the extension - thus keeping theirbanned-from-the-media products in the minds of the customers. So theapple juice, for instance, is the surrogate for the liquor in the ads. Thecompanies also dont care much about the sales of the surrogateproducts - for instance, I read that the apple juice isnt even readilyavailable to buy throughout the company.This loophole that the tobacco and liquor companies are exploiting isupsetting the legislature because every apple juice ad that reminds theconsumers of the liquor is a slap in the lawmakers faces. But, they alsodont quite know what to do about it!In general, surrogate marketing is when you promote one product orservice in the hopes of selling another. Why we would want to do thatvaries. The best reason is that we arent able to legally. But other reasonsmight be because the two products sell better together - for instance, wemay make a product and it requires service - which we dont provide. We 8
  • 15. can market a service provider - the surrogate - who will only use ourproduct.SURROGATE ADVERTISING AND CONSUMERSIt is generally recognized that surrogate advertising is even more wastefulthan normal advertising, but the liquor industry has no choice. Ofcourse, this strategy assumes that the brand and, in some cases, theadvertisements, are already well known. Otherwise, such advertising maynot serve any purpose.It is difficult to evaluate the effectiveness of surrogate advertising. InMalaysia where cigarette advertising is banned (as in India), surrogateadvertising for cigarette brands is common. A leading brand of cigaretteadvertised itself as a business marketing holidays on beaches. The tourbusiness, which was advertised as a surrogate for the cigarette brand,became a market leader.Alcoholic drinks, which are branded and bottled, are being made andsold legally. If so, there should be no restraint on that advertising exceptguidelines on what the advertising can show and, possibly, the timeduring which such advertisement can be exposed on television. In anycase, if it is felt that certain degree of control is required, then it is in 9
  • 16. order to have such guidelines so as to ensure that alcoholic beveragesare not sold in a manner, which is irresponsible in any way.Surrogate advertisements for alcohol or tobacco products can appearwithin advertisements for something more innocent like bottled water orperfume. The more innocent product is somehow merely the carrier forthe disguised, surrogate advertisement. For example, the innocentproduct may be labeled with the familiar logo of the Tobacco Company orbrewery. The surrogate advertising need not be imbedded with anotheradvertisement at all, however. The tobacco company (or any othercompany whose products may not be advertised directly in a givensociety) may give out free playing cards, for example, its familiarcompany symbol used as the pattern on the back of the cards. Anyadvertising technique of this kind would be considered surrogateadvertising.In recent years, the liquor industry has undergone a dramatic shift.Many global brewers and distillers have merged to reduce costs and gainmarket share. For example, Diageo, the world’s biggest wines and SpiritsCompany came into being through a merger of Guinness and GrandMetropolitan. It then increased its core strengths by acquiring Seagram’sbusiness and other brands. The latest additions to this merger wave areBelgium Interbrew and Brazil’s Ambev, which is now the biggest brewerin the world. 10
  • 17. Adding to this global wave of strategic realignments, beer is fastbecoming the alcoholic beverage of choice over spirits. With 35% marketshare in 1997, beer rose to almost equal to spirits in 2002. Euro monitorforecasts that by 2007, it will take a lead with 42% market share.Another challenge that liquor industry is facing is that the consumergroups, which were earlier targeted as one large demographic island,have been fragmented into distinct psychological groups. Unlike a decadeago, the consumers today have a number of options in terms of brandsand segments. A fast emerging change is in terms of flavor substitutiondepending on consumption conditions. The generation Y consumersinclude a very young and skeptical group of people, who are definingtheir own world of drinking. They have a multitude of taste preferencesthat they like to be made available at bars and pubs. This makes itdifficult for the alcohol companies to keep pace with their changingpreferences.So how are the liquor companies managing these challenges along withgovernment laws and restrictions?From tropical fruit based drinks to Pepper Vodka, Organic beers andalternatives, the segment that defines new age beverage continues togrow. Alcohol marketers have found that by blending the best of differentcategories, they can appeal to consumers who seek various benefits such 11
  • 18. as flavor as well as added health benefits. And by mixing it up, liquormarketers get a colorful palette of flavors never seen before.Furthermore, beverage marketers are increasingly trying to communicatewith consumers on a personal level. For example, the Johnnie WalkerRelationship Marketing Program called “Journey of Taste” has beenimplemented successfully in most of its markets. This “mentorprogram” (as it is usually called) features a guided Scotch whiskyeducation to the consumers led by a qualified Johnnie WalkerAmbassador. It not only allows the consumers to appreciate the Scotchwhisky or the brand but also allows them to develop a long-termassociation with the brand. Guinness, a beer brand, is also entering thesecond year of its Believer mentor program designed to convert Guinnessdrinkers into effective brand ambassadors.Nonetheless, there are conventional marketing techniques that themarketers use to revive their brands and capture younger markets.Cognacs or scotches suffer from a stodgy image that they are mostlyconsumed by older men. Hence, cognac makers Hennessy andCourvoisier have been trying to reach out to the younger market bybuilding their brands in the entertainment industry and urban markets.Liquor marketers have also recognized that strong brand names, whichdeliver high sales and profits, have the potential to wave the magic wandon new products. The launch of the initial Courvoisier “Autumn 12
  • 19. Collection” marked the Liquor Company’s attempt to transform it frombeing “the world’s first cognac” to an icon of fashion. The launch waspart of a wider trend where makers of luxury brands try to capitalize ontheir labels by extending them into new areas of business.However, there are also liquor marketers that are finding creative ways toplay around government restrictions. In many countries, the governmentdoes not allow the advertisement of liquor on TV and other mass media.To counter this, the liquor industry has intentionally blurred the linebetween products by advertising cocktail mixers, soft drinks or sodawater using the brand name of popular liquors. This phenomenon,known as “surrogate advertising” (duplicating the brand image of oneproduct extensively to promote another product of the same brand) hasbecome widespread in many countries and continues to gain momentum.For example, in India, the Bagpiper club soda advertisement featuringmovie celebrities is similar to an earlier advertisement of Bagpiperwhisky.Does framed advertising influence consumer purchase decisions? If so,with which consumer segments is it more influential? How does itinfluence the purchase process? In this paper the impact of positivelyand negatively framed advertising is diagnosed on five purchase-decisionconstructs for a transformational consumer product category. Themoderating impact of consumers education on this process is also 13
  • 20. studied. Educated consumers are more influenced by positively framedadvertising; less educated consumers are more influenced by negativelyframed advertising. In general, positively framed advertising has a morefavorable impact than negatively framed advertising on purchase-decision judgments for transformational products. The implications ofthese findings for mainstream consumer products advertisers arediscussed. SURROGATE ADVERTISING AND LIQUOR INDUSTRYWorldwide, 1.8 million deaths in 2000 were attributable to alcohol usecausing 3.2% of all global deaths and contributing to 4% of the diseaseburden. Alcohol is the leading risk factor related to the major burden ofdisease in low mortality developing countries and the third mostprevalent risk factor for leading diseases and injuries in developed 14
  • 21. countries. While alcohol consumption is decreasing in some developedcountries, it is on the rise in developing nations Significant proportion ofthe student population drink at hazardous level. The burden fromalcohol exceeds that from tobacco because alcohol problems tend to taketheir toll earlier in life. The physiological and social consequences ofalcohol use also negatively affect school performance, attendance andproductivity at work and relations within the family.Alcohol consumption is declining in most of the developed countries, andrising in many of the developing countries and the countries of Centraland Eastern Europe. Males do most of the drinking in these countries,and evidence available regarding patterns of drinking suggests that largeamounts of heavy drinking are occurring. Patterns, context and overalllevels of alcohol consumption influence the health of the population as awhole.Alcohol transnational’s are shifting their focus to Asia and otherdeveloping countries (young population and a growing economy) as theAmerican and European markets are saturated. With an increase in percapita incomes, trade barriers falling, and alcoholic beverages advancinginto new markets in developing countries, alcohol consumption is likelyto increase. Both beer and spirits consumption in India have been rising,possibly due to economic liberalisation of the Indian market.Privatisation and opening up the market to foreign companiesdramatically changes the advertising and marketing of alcohol and most 15
  • 22. countries (such as in Asia) lack alcohol control national policies andstrategies.Alcohol advertising has the potential of promoting changes in attitudesand social values, including publicizing the desirability of social drinkingto its viewers, which all encourage a higher consumption of alcohol andweakens the social climate towards effective alcohol control policies. Incountries where advertising in the media is not totally banned, there isfrequent portrayal of alcohol in the media, particularly in magazines,newspapers and television, especially of internationally brandedbeverages. The mainstream of these portrayals suggests alcohol use as aharmless pursuit, showing solidarity, friendship and masculinity, whileneglecting any negative consequences.It is known that advertising can influence consumer choices, have apositive short-term impact on knowledge and awareness about alcohol,but it has proved difficult to measure the exact effects of advertising onthe demand for alcoholic beverages, in part because the effects are likelyto be cumulative and long-term. Recent literature suggests thatadvertising and other marketing activities increase the overall demand,and influence teenagers and young adults towards higher consumptionand harmful drinking (Saffer, 2006). Self-regulation by the mass mediahas been attempted by developing codes of advertising for and by the 16
  • 23. industry. However, the effectiveness of voluntary codes is likely to belimited in developing countries because of lack of enforcement.Even in places where alcohol advertising is banned, messages on alcoholuse could be conveyed to existing or potential consumers in a variety ofways. One method frequently used is surrogate advertising – brandsharing of products including name and logos, advertising at the point ofsales, and sponsorship of events particularly in teenager friendly eventssuch as sports, music and cultural events. Thus an effective monitoringsystem is needed.In contemporary India, tendency of alcohol consumption has percolateddown to youth. Media has played a leading role in encouraging the use ofalcohol among the youth through portrayalof alcohol in congenial socialsettings, association of alcohol use with glamour and celebrity status andby using direct and indirect advertising. Age of initiation for alcohol usehas progressively reduced in Kerala (India). In 1986, the age was 19. Thiswas reduced to 17 in 1990 and further to 14 in 1994. Alcohol Industry isfollowing exactly the same marketing and promotion tactics andstrategies as were employed by the Tobacco Industry globally andespecially in developing countries. 17
  • 24. How do liquor companies do surrogate advertising What they sell is different from what they offer Brand Extension Core Brand Company Apple Juice 8 PM Contessa Radico Khaitan ACP Jagjit Industries Water Gilbey’s Guiness UDV Kingfisher UB Group Soda Mc Dowell’s UB Group Men’s Accessories Director’s Special Shaw Wallace Sporting Equipment Royal Challenge Shaw Wallace Awards Teacher’s Allied Domecq Web Sites Imperial Blue Seagram’s Cassettes Bacardi Bacardi Fashion Weeks, Kingfisher UB Group Swimsuit Calendar Blender’s Pride Seagram’sSurrogate Advertising- “Aristocrat” a popular whisky brand is beingadvertised as Aristocrat Apple Juice. “Mc. Dowell’s” is advertised assodas, “Kingfisher” has packaged water bottles. Some alcohol brandshave introduced brand promotional items such as: “Haywards 5000” hasdarting kits, “Bacardi” advertises through its Bacardi blast album andalso advertises through parties tied up with rediff.com . Regulatorystrategies for alcohol control thus will have to be formulated on samelines as Tobacco Control. This will require initiating efforts for alcoholcontrol at national, regional and international levels.The liquor industry in India comprises the organised and unorganisedsectors. The organised sectors include IMFL and the beer industry whilethe unorganised sector comprises of the market for country liquor. The 18
  • 25. size of the country liquor is approximately 40 times that of the IMFLmarket. The size of the ABs industry is estimated at Rs. 95 bn., whilefermented drinks account for 35% of the ABs market, the rest is derivedfrom Indian Made Foreign Liquor (IMFL) segment.The UB group, consisting of McDowells Limited, UB Limited andHerbertsons Limited, dominate the liquor market and have a combinedmarket share (in terms of sales value) aggregating 28%. The other majorplayers in the segment include Shaw Wallace & Co. Limited, JagatjitIndustries Limited and Mohan Meakin Limited having market shares of13%, 9% and 8% respectively. However, in terms of sales volumes, BalajiDistillers Ltd., an associate of UB Limited, has a market share of 21.4%followed by Jagatjit Industries Limited at 20.4% and Mohan MeakinsLimited at 16.3%. Shaw Wallace & Co. Limited and Herbertsons Limitedhave 14.0% and 13.1% of market shares respectively.The state of Maharashtra accounts for approximately 26% of the totalmarket for liquor followed by the states of Tamil Nadu, Delhi, Calcuttaand Rajasthan, which respectively accounted for 18%, 10%, 8% and 7%of the total market. The Government of Gujarat has always prohibitedthe sale of ABs in the state while in Andhra Pradesh (AP) and Haryana,prohibition has been frequently imposed and lifted. The prohibitionimposed earlier was lifted in the states of AP and Haryana in March 1997and in April 1998 respectively. The frequent imposition and lifting of 19
  • 26. prohibition in certain states has destabilised the industry’s growth andperformance.As the demand in the ABs industry is primarily brand driven,manufacturers focus on brand promotion to increase their sales. Themanufacturers also create various brands under a single productcategory in order to counter competition. However, there is a strictregulation on advertising and some states have even bannedadvertisements. Consequently, the companies have resorted to surrogateadvertising through sponsorship of fashion shows and sport events.The surrogates used by Smirnoff Vodka, Haywards 5000, RoyalChallenge Whiskey and Kingfisher beer advertisements ranged fromaudiocassettes, 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 Takwere issued show-cause notices asking them to explain their reason forcarrying surrogate liquor advertisements. The channels were asked toadhere strictly to the Cable Television Regulation Act 1995.As a result, Zee and STAR stopped telecasting the advertisements; AajTak and Sony soon followed suit. In addition, the I&B Ministry hired aprivate monitoring agency to keep a watch on all advertisements forviolations of the Act. 20
  • 27. These developments led to heated debates over the issue of surrogateadvertising by liquor companies. Though the liquor companies involvedprotested strongly against the I&B Ministrys decision, they had nochoice, but to comply with the regulations. Analysts remarked that thegovernments policy was hypocritical. One said, "On the one hand theyallow these socially bad products to be manufactured and sold (in orderto garner revenues) and then they deny the manufacturers the right topropagate knowledge of their products in order to drive sales. Ifsomething is bad and cannot be advertised, why allow it to be sold atall?"Meanwhile, the government also seemed to be in dilemma. On the onehand, it had to encourage the sales of liquor and tobacco because theywere the highest taxed sectors of the Indian economy. On the otherhand, there was also the need to take the high moral ground and reducethe consumption of such products.The Indian liquor industry can be divided into two broad segments:Indian Made Foreign Liquor (IMFL) and country-made liquor. IMFLcomprises alcoholic beverages that were developed abroad but are beingmade in India (whisky, rum, vodka, beer, gin and wine), while country-made liquor comprises alcoholic beverages made by local breweries.While many players were present in the IMFL segment, breweries in theunorganized sector accounted for almost 100% of the country-made 21
  • 28. liquor segment. During 1999-00, the Rs 60 billion Indian liquor industrygrew at the rate of 10-12%. While IMFL was consumed by the middle andupper classes of society, the economically backward classes consumedcountry-made liquor. In India, 40-50% of all males and 1% of all femalesconsumed alcohol. Almost 62% of the drinkers could be classified aslight drinkers (i.e. social drinkers), 29% percent as moderate drinkers,and about 9% as hard drinkers. The organized industry was dominatedby Shaw Wallace and United Breweries, which together accounted foraround 53% of the total market. The government heavily regulated theliquor industry. Companies were not allowed to expand capacity withoutprior approval from the concerned state government. The distribution ofliquor was also controlled in many states through auction system, theopen-market system and the government-controlled system.Liquor companies accused of indulging in surrogate advertising seem tobe playing musical chairs as they move from one channel to another toevade the information and broadcasting (I&B) ministry. Sources in thegovernment say as soon as the I&B ministry sends notices tobroadcasters to withdraw their surrogate ads, they reappear on otherchannels. “Sometimes the products are also changed. As for instance, ifthe surrogate product was apple juice which was objected to, it is laterchanged to soda.”The government, for now, seems to have no option butto keep sending out show cause notices to the television channels. The 22
  • 29. apex body for broadcasting companies, the Indian BroadcastingFoundation (IBF), is taking a serious view of the matter.In a recent meeting with members of the Confederation of IndianAlcoholic Beverages Companies (CIABC) and other liquor companiessuch as Seagram and Jagatjit Industries, IBF informed them that theymust withdraw all surrogate ads and should adhere to the rulesprescribed in the Advertising Code.To some liquor company’s claims thatthe products advertised are genuine, IBF has asked the companies toproduce certificates stating that the brand extensions are genuine. Realproducts or services (non-alcoholic and non-tobacco), which are widelydistributed in the market through established networks “should not bedenied speech, even if the product or service shares a brand name with aliquor product or a tobacco product or a company,” state the regulations.But, “indirect advertising for liquor or tobacco will not be permissible.”A market survey in 2001 revealed that advertising has a direct influenceon the consumption habits of 431 million people in India and an indirectimpact on 275 million `aspirants from the lower income group.Considering this and realising that nearly 50 per cent of the televisionowners have access to cable channels, there is no doubt that the hiddencall for alcohol consumption behind the surrogate advertisements is notescaping the eyes of viewers in the worlds fourth highest liquor- 23
  • 30. consuming country. Surrogate advertising defeats the very purpose ofbanning liquor advertisements.It rules that that if liquor companies promote any juice, mineral water orsoda, these should be shown in a proper manner and not as trimmingsto liquor advertisement. These are welcome steps, but the key point liesin enforcement. If, in a free society, producers have a legitimate right tolet consumers know about their products through advertisements,consumers have the right to information in adverts that are clear andhonest. Surrogate advertisements are not only misleading, but also falseand dishonest in many cases. With surrogate advertising so widespread,this is the moment to tackle the problem head-on. There should bestringent regulatory measures to curb the practice, such as: i) Making transparent laws banning surrogate advertisements for different products under a single brand names, by amending the Trade Marks Act, for instance; ii) Providing teeth to the Advertising Standards Council of India to enable it take action against false and misleading advertisements, and keep a close vigil over clever evasion of the law; 24
  • 31. iii) Asking the electronic and print media to adhere to the advertisement codes and not encourage surrogate advertisements; iv) Calling on the ASCI address complaints received from consumers against surrogate advertisements and take appropriate actions immediately; v) Creating a consumer awareness programme to help people understand the negative impact of surrogate advertisements; vi) Adopting strict laws to penalize those companies featuring surrogate advertisements without any real existence of the product; and vii) 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.If one believes that honesty is the best policy and truth ultimately gains,the best policy would be to stand up strongly to the dishonest practicesof surrogate advertising.With the Government trying to clamp down on surrogate advertising,liquor companies seem keen to bat out the ban. Even as liquor brandshave traditionally been associated with up market sporting activities like 25
  • 32. golf, polo, derby and yachting, companies are now turning towards thegame of the masses - cricket. In fact, the latter half of the current yearwill see liquor brands as the title sponsors of two major cricketing eventsfeaturing India. Immediately after the triangular series at Zimbabwe (ofwhich Royal Stag was the associate sponsor), the India and ZimbabweTest series will be called the Royal Stag Cup. Till date Royal Stag hasused several international cricketers as brand endorsers. This is the firsttime the company has forayed into tournament sponsorship. Similarly,the ICC World XI Vs Australia series to be held Down Under will be calledthe Johnnie Walker Super Series.According to media planners, as both the series are being held outsideIndia it would be difficult for the Government to blip out the liquorbrands. "Since the matches will be beamed into Indian drawing roomslive, the brands will enjoy good visibility," they added. Internationallybeer brands such as Fosters and Lion have supported cricket inAustralia and Sri Lanka respectively.Meanwhile, Royal Stag has roped in Zimbabwean Vice-Captain, HeathStreak as their new Royal Stag brand ambassador. Other celebrity RoyalStag cricket endorsers include Australian Cricket captain Ricky Ponting,and Indias ace offie Harbhajan Singh. The Information and Broadcasting(I&B) Ministrys efforts to ban surrogate advertising of liquor brands hasreached a naught. A few months ago, it had sent out notices to various 26
  • 33. television channels to withdraw advertisements by liquor companies. Butwithin a few weeks of the notices being issued, surrogate advertisingmade a comeback on television. In fact, a few liquor companies havebeen advertising during the ongoing cricket series as well.Earlier, in an interaction with Government officials, channels werecategorically told that there is a complete ban on advertising by liquorcompanies. "However, exemptions could be granted on a case-by-casebasis, like the one granted to Kingfisher Airlines," they had said. TheGovernment is also handicapped by procedure wherein it can take actionagainst channels only after receipt of complaints. "The Governmentcannot suo motu issue show-cause notices. It has to first receivecomplaints," said official sources. Liquor companies on their part statethat their advertising is self-regulated and comply with the IndianBroadcasting Foundation and the Advertising Standards Council of Indiacode.The Rs 60,000-crore Indian beverage alcohol industry has always beenoperating in a restricted and controlled environment. It is a real shamethat an industry that is a legitimate business in the country and whichcontributes a whopping Rs 22,000 crore just in revenues to thegovernment, is not allowed to market its products freely andcommunicate to its consumers directly. This restrictive environment isalso applicable to the beer and wine industry. 27
  • 34. Product advertising for liquor and cigarette companies is banned in thecountry since 1995 by Cable Television Network (Regulation) Act.According to Rule 7 (2) of the Act, no broadcaster is permitted to showadvertisement which promotes directly or indirectly promotion, sale orconsumption of cigarettes, tobacco products, wine, alcohol, liquor orother intoxicants, infant milk substitution, feeding bottle or infant food.This ban is now likely to be extended to advertising of extended brands.In fact, recently the government of India has in a unilateral move soughtan amendment in the Trade and Merchandise Marks Act of 1958 toexplore possibilities of denying extension of registration of trademarksused for brand names of cigarettes, tobacco products, wine, alcohol,liquor and other intoxicants to other products.This has ostensibly been done to check surrogate advertisements of“other products” of liquor companies. The sales volumes of theseproducts advertised do not justify advertisement expenditure incurred bythe companies, it is argued.The alcohol beverage industry is justifiably upset with the proposed axeon advertising and promotions of legitimate economic activity throughtrademark extensions. These should not be confused with surrogateadvertising wherein no products may exist. 28
  • 35. Freedom of commerce should be preserved and brand extensions ofcigarette tobacco and liquor products should not be bannednotwithstanding similar graphics, if they do not propagate smoking ordrinking merely on the ground of the brand names being similar.The ban on advertising of alcohol beverage products has severelyhandicapped communication with consumers. The industry is naturallycompelled to make the best use of the channels and media ofcommunications still open to it. Companies with liquor brands are notadvertising liquor products; instead they have extended the equity oftheir brands into other fields. Over a period of time these products havebecome independent businesses for companies.Some of the product extensions like water, soda, and music cassetteshave sales which run into millions in value and volume. McDowells sold1.5 million cases of water and soda, through its 20 franchise plants.Water and soda are added to our core liquor product, they are legitimatebusinesses.Umbrella branding is a known phenomenon in marketing and today, wehave omnibus brands like Nestle, Amul, Samsung etc which sell manyproducts under one brand umbrella. Surely, the reverse logic would also 29
  • 36. apply that if any of the above-exemplified companies were to come outwith a beverage alcohol, their original products cannot be banned.As far as co-relation between value of goods being sold and quantum ofadvertisement is concerned, this is a commercial decision whycompanies spend more than their turnover on a set of products.However, for brand building exercises, huge investments are undertakenand they at times can exceed the value of the sales turnover.The Advertising Standards Council of India (ASCI) has clarified that asper its code, the mere use of a brand name or company name that mayalso be applied to a product whose advertising is restricted or prohibitedis not reason to find the advertisement objectionable provided theadvertisement is not objectionable and the product is produced anddistributed in reasonable quantities and the objectionable advertisementdoes not contain direct or indirect cues for the product that which is notallowed to be advertised.The industry is fully sensitive to the need for shielding the young and theimpressionable from getting carried away. Rather than an outright banon advertising, the government should endorse the “Code of Conduct”which specifies the timings when the ad should be aired, non-targeting ofchildren, disallowing teenagers in ads etc.Instead of an outright ban, the industry has been underlining the needfor dialogue and subsequent guidelines outlining dos and don’ts of 30
  • 37. advertising. It could specify timings when the ads should be aired, nottarget children, disallow teenagers in ads, not allow ads that areglamorous or suggest increased attractiveness to the opposite sex afteralcohol consumption. RESEARCH METHODOLOGYThe present chapter details the research methodology applied forconducting this research. Research may be classified according to itspurpose. It may be concerned with solving theoretical issues, somethingcapable of wide generalisation but difficult to achieve. On the otherhand, it may be concerned with solving a very specific practical problemin one company, this may be achieve more readily but have littleapplication outside the particular case (Yin, 1994). The present researchwas related to comprehensive and comparative study of the advertisingstrategy adopted in liquor industry i.e. Surrogate advertising. To studythe need and effectiveness of surrogate advertising in influencingcustomer behavior in liquor industry (with reference to Indian liquorindustry) 31
  • 38. Research DesignResearch design provides the glue that holds the research projecttogether. A design is used to structure the research, to show how all ofthe major parts of the research project -- the samples or groups,measures, treatments or programs, and methods of assignment -- worktogether to try to address the central research questions.Qualitative methods are useful in those situations where it is necessaryto use data that are basically an interpretation of the phenomena in thesocial world and then to present the interpretation of that phenomena asfaithfully an accurately as possible. Quantitative research arises from apositivist paradigm, which is centered, on objective truth, scientificmethods and systematic relationships, which allow generalizations orpoint specific linkages between elements of a problem. 32
  • 39. For studying the views of respondents it becomes necessary for aresearcher to use both of these qualitative and quantitative method forfirst collecting the information which gives an end result which can bemeasured and an analysis can be done by seeing that, and for a muchdesirable and meaningful analysis we need an information which isqualitatively correct as we are not taking whole of the society for theirviews regarding the topic, So it becomes necessary to use bothQualitative Method as well as Quantitative methods for Research.So far as the present study is concerned the researcher opted close-ended questions based survey thinking that it would allow therespondents to have flexibility in their responses. As has been identifiedabove survey was conducted in this research through questionnairemethod; in which interviewees were provide a questionnaire having a setof close-ended questions. The questionnaire consisted 11 close-endedquestions.Selecting the right sample is key to a study; therefore lot of importancewas given for selecting the right sample. The research ensured that thecharacteristics of the sample were the same and that it belonged to theliquor industry. It was also found imperative to select a sample fromwhich data could be analysed and research questions could beinvestigated. In the present research, the sample size was 60. 33
  • 40. Primary data can be collected from various sources and methods that arecase studies, observation, questionnaire survey and interview. In thisresearch interview of Marketing Executives of liquor companies surveymethod was applied in order to collect primary data.The secondary data in the present research were collected from books,journals, periodicals, newspapers and magazines. Further, the reports ofIndian liquor industry relating to advertising and advertising ban reportsof government was used.Limitations of the researchQuite characteristically, academic research is full of limitations,particularly in the contexts of time and resources provided. The presentresearcher also confronted this problem. Thus due to the limitation ofresources, the researcher had to reduce the sample size due to limitedprovided time the researcher had to analyse the data on simple methodavoiding the complications and lengthiness of scientific and technicalmethods. 34
  • 41. DATA FINDINGSSab Miller • CHALLENGES FACED IN LIQUOR INDUSTRY There are restrictions on advertising, and they do reduce the efficiency of communicating the brand positioning. Every market has its own facilitators and its own barriers, and the role of marketing is to maximise efficiency and effectiveness within the defined framework. They try to ensure that each brand is distinctly positioned with low reliance on fine nuances. They try to engage the consumers at various points of influence – touch points – through a 360-degree programme. • PROMOTIONAL ACTIVITIES OF THE COMPANY Castle Loud is a property we are actively building. It’s a music property they are taking across the country again this year. They are bringing in DJs from all over the world and Loud by itself is a property that is present in several countries across the world. They have, of course, Indianised it to suit the market. Castle Loud is an initiative of Castle Lager to bring a perfect balance of music and beer. 35
  • 42. • CELEBRITY ENDORSERS They help cut through the clutter. If the endorser has a perfect brand fit, it also has a constructive rub-off effect. However, with a limited number of celebrities with mass appeal, and a large number of mass brands trying to use them, we have reached a situation where the same celebrities are endorsing many brands, and often brands with divergent image and personality. The effectiveness and efficiency of such endorsement is a matter of debate. They have used some of them in the past. They had Manoj Bajpai for Knock Out and Darshan now endorses our brand in the Karnataka market. It really depends on the fit between the brand and the endorsers. Also, these were not people who were into endorsing a whole bunch of products, so the ability to break through the clutter was high.UB Group • PROMOTIONAL ACTIVITIES ASSOCIATED WITH KINGFISHER Fashion. It has an intangible edge that appeals to the youth. Not everybody can wear fashionable clothes and not everybody can be a fashion model but everyone aspires to have that kind of image. Kingfisher is firmly entrenched in that kind of environment. They have instituted the fashion awards, the first of its kind in the country. In terms of brand 36
  • 43. building, they have associated ourselves with a property that appeals to the youth. Apart from this, we have time to time advertised• THE PROHIBITION ON ADVERTISING ALCOHOL AFFECTED UB It has affected not just UB but the entire industry. It is important to realize that the law of the land and we need to follow it. Apart from that, they have realized that they can’t sit back and stop the brand building process. Hence, advertising and brand building continues. While they cannot advertise alcohol, they have successfully built brand through associations. A lot of companies, they don’t want to name them, do this by using things like branded glasses, which is not truly credible. But they, on the other hand, they do fashion, do sports. In fact, water is a very successful brand in its segment. They actually sell a lot of water in this country. They are, in fact, the fourth or fifth largest water brand in India. In the recently held marathon in Mumbai, Kingfisher was the official water sponsor. They make large quantities of water. They have an organization that does water, and obviously we use that to build our brand. If direct advertising were allowed, it would definitely help! Then you could talk to your consumers directly saying that Kingfisher beer stands for all the values we are talking about, that it is fashionable, trendy and exciting. We may still continue all our sponsorships. A lot of big brands, take Budweiser for example, do a lot of advertising and undertake sponsorships. They would 37
  • 44. have added this dimension to our advertising to support our brand building.• ADVERTISING BEARING ON SALES Advertising has a direct impact on any business. The only difference between the conventional advertising of a soft drink, garment or soap and us is that while they can communicate directly about their brand and talk about its virtue, brand and benefits, but they can’t. They have to do it through associations and events. When they advertise that Kingfisher West Bengal is India’s best football club, and a winner of many tournaments, also Kingfisher is the best beer in the country.• CHANGES AT THE FRONT-END It is changing, but the change is slow. There are a number of large department stores like Food World that retail beer. The shopping experience in say a Food World is far superior to going to a regular liquor store. So, they would think that going forward there will be a number of such shops coming up. Also, there are a number of very classy, up-market and stylish bars and lounges opening up, particularly in the larger cities and that will also accelerate as we go forward. The whole experience of purchasing and consumption of beer is going to improve. 38
  • 45. • IMPORTANCE OF POINT OF PURCHASE ADVERTISING FOR BEER It is very important. Since direct advertising is limited, the point of sale can make a difference. When a consumer walks into a store, he comes with a basket of brands in his mind. Not everyone walks in thinking I want brand XYZ. In such a situation, good quality as also visibility of the item could make him change his mind.Shaw Wallace • CHALLENGES OF LIQUOR ADVERTISING As a leading alcoholic beverage company in the country. They are always on a lookout for new and innovative ways to engage our consumers through right communication. In doing so, they are always guided by the code developed by the Confederation of Indian Alcoholic Beverages Companies (CIABC), the apex association of alco-bev companies of which Shaw Wallace is a member. So long as our communication meets the standards and conditions of the CIABC code, we are keen on evolving new avenues for brand expression. Shaw Wallace is becoming much more of a marketing driven company and is increasingly taking the route of imaginative promotions, events and associations for building brands. While above the line spend is slated to go up from the existing 30 per cent to 60 per cent, below the line spend will be gradually reduced from the 39
  • 46. current 70 per cent to 40 per cent by the end of current fiscal. This represents a marked shift in the marketing spend of the company and a conscious move from a brand push policy to a brand pull policy. Brand image, highlighted through association with relevant events and sponsorships, has been identified as the most important factor in fuelling consumers demand. Accordingly, as a part of the overall marketing mix, Shaw Wallace is positioning its brands by associating with world-class events. The activities that are woven around brands need to embody respective brands attributes. For instance an association with golf helps Shaw Wallace impart an aura of sophistication and premium ness, the attributes that Royal Challenge stands for. They would like to reiterate that Shaw Wallace focuses on genuine and logical brand extension rather than surrogate advertising and all our brand communication will reflect this bias.• IMPORTANCE OF ADVERTISING TO THE LIQUOR INDUSTRY Communication is very important to project the brand attributes. More than any thing else, consumers buy a product for what it stands for. This is all the more true in case of lifestyle products like liquor where positioning of one brand puts it apart from other similar brands. Advertising is right communication help in imparting that distinctive edge.• FUTURE PROSPECT 40
  • 47. The line spending is increasing given the requirements of the market place. The BTL spend will be about 40% of our overall marketing spend this year. They are constantly working to ensure that all the brands remain relevant and contemporary and any new commercials or campaigns made will be pursuant to that objective .FINDING ANALYSISOn Consumer Level 1. To what extent do you agree that advertising increases your overall demand and consumption of harmful drinking? 41
  • 48. 25 75 To some extent To great extentAs according to the figure above, 15 (25%) out of the total 60 approached liquorconsumers agree only to some extent that advertising increases their overalldemand and consumption of harmful drinking; whereas some 45 (75%) of themagree to great extent that advertising increases their overall demand andconsumption of harmful drinking.2. To what extent do you agree that surrogate advertising is lessinfluencing for your consumption decision than normal advertising? 42
  • 49. 50 50 To some extent To great extentAccording to the figure above 30 (50%) out of the total 60 approached liquorconsumers agree to great extent that surrogate advertising is less influencing fortheir consumption decision than normal advertising ; whereas the remaining 30(50%) of them agree only to some extent that surrogate advertising is lessinfluencing for their consumption decision than normal advertising.3. Do you know that Surrogate advertising is advertising that is notaccording to the law of the land? 43
  • 50. No 20% Yes 80%According to the figure above, 48 (80%) out of the total approached liquorconsumers come to the conclusion that they are aware of the fact that surrogateadvertising is advertising that is not according to the law of the land; whereas atthe same time some 12(20%) of them come to the conclusion that they are notaware of the fact that surrogate advertising is advertising that is not according tothe law of the land. 44
  • 51. 4. Are you impressed of companies coming forward as sponsors for liquorcompanies (as surrogate advertising) to get associated with the elitelifestyle image for their brand building? 33.33 66.66 Yes NoAs the figure above demonstrates 20 (33.33%) out of the total 60 approachedliquor consumers come to the conclusion that they are impressed of companiescoming forward as sponsors for liquor companies (as surrogate advertising) toget associated with the elite lifestyle image for their brand building; whereas theremaining some 40 (66.66%) of them come to the conclusion that they are notimpressed of companies coming forward as sponsors for liquor companies (assurrogate advertising) to get associated with the elite lifestyle image for theirbrand building. 45
  • 52. 5. The role of surrogate advertising in changing your drinking patternsis…? 30 70 Positive NegativeThe figure above demonstrates that for 18 (30%) out of the total 60 approachedliquor consumers in this research find that the role of surrogate advertising inchanging their drinking patterns is positive; whereas some 42 (70%) of them findthat the role of surrogate advertising in changing their drinking patterns isnegative. 46
  • 53. 6. ‘Leading satellite TV channels, including Zee, Sony, STAR and Aaj Takwere issued show-cause notices asking them to explain their reason forcarrying surrogate liquor advertisements’, how do you see this step? Wrong 20% Right 80%According to the above figure, 48 (80%) out of the total approached liquorconsumers come to the conclusion that issuing show-cause notices asking TVchannels to explain their reason for carrying surrogate liquor advertisements isright step; whereas at the same time some 12(20%) of them come to theconclusion that issuing show-cause notices asking TV channels to explain theirreason for carrying surrogate liquor advertisements is not right step. 47
  • 54. 7. Do you find that liquor products advertised through surrogateadvertising are genuine…? 40 60 Yes NoAs the above figure demonstrates for 24 (40%) out of the total 60 totalapproached liquor consumers come to the conclusion that liquor productsadvertised through surrogate advertising are genuine; whereas for remainingsome 36 (60%) of them liquor products advertised through surrogate advertisingare not genuine. 48
  • 55. 8. Do you agree that surrogate advertising defeats the very purpose ofbanning liquor advertisements? 28.33 71.66 Yes NoAccording to the figure (8) 43 (71.66%), out of the total 60 approached liquorconsumers in this research find that surrogate advertising defeats the verypurpose of banning liquor advertisements; whereas the remaining 17 (28.33%) ofthem find that surrogate advertising does not defeat the very purpose of banningliquor advertisements. 49
  • 56. 9. Is the decision of banning direct ads on liquor is correct or they couldhave done better by also banning indirect ads too 36 64 Direct ads BothAccording to the survey 36 % respondents feels that to curb on the spread of message given by the liquor companies both kind of advertisements that include direct as well as indirect ads (surrogate advertisements) should be completely banned while majority rests with people who thinks that surrogate advertisement will not give the message which is inappropriate for the society. 50
  • 57. 10. To what extent does you agree that surrogate advertisements are notonly misleading, but also false and dishonest in many cases..? To some extent 25% To great extent 75%As according to the figure (10), 45 (75%) out of the total 60 approached liquorconsumers in this research find to great extent that surrogate advertisements arenot only misleading, but also false and dishonest in many cases; whereas theremaining 15 (25%) of them find only to some extent that surrogate advertisementsare not only misleading, but also false and dishonest in many cases. 51
  • 58. 11. To what extent does you agree that the alcohol beverage industrieshave a genuine intent to not just market their products in a sociallyresponsible manner but to also comply with the appropriate state lawsconcerning the marketing of alcohol beverages? 20 80 To great extent To some extentAccording to the figure (11), 48 (80%) out of the total approached liquor consumersagree to great extent that the alcohol beverage industries have a genuine intent tonot just market their products in a socially responsible manner but to also complywith the appropriate state laws concerning the marketing of alcohol beverages;whereas at the same time some 12(20%) of them agree only to some extent thatthe alcohol beverage industries have a genuine intent to not just market theirproducts in a socially responsible manner but to also comply with the appropriatestate laws concerning the marketing of alcohol beverages. 52
  • 59. CONCLUSION AND RECOMMENDATIONSAlcohol advertising has the potential of promoting changes in attitudes and socialvalues, including publicizing the desirability of social drinking to its viewers, whichall encourage a higher consumption of alcohol. It is known that advertising caninfluence consumer choices, have a positive short-term impact on knowledgeand awareness about alcohol, but it has proved difficult to measure the exacteffects of advertising on the demand for alcoholic beverages, in part because theeffects are likely to be cumulative and long-term. However, the recent literaturesuggests that advertising and increases the overall demand, and influence ofconsumers towards higher consumption and harmful drinking. The findings of thepresent research also greatly substantiate this fact as approached consumers ingreater majority agree to great extent that advertising increases their overalldemand and consumption of harmful drinking.It is generally recognized that surrogate advertising is even more influencing thannormal advertising, but the liquor industry has no choice. Of course, this strategyassumes that the brand and, in some cases, the advertisements, are already wellknown. Otherwise, such advertising may not serve any purpose. It is difficult toevaluate the effectiveness of surrogate advertising. So far as the presentresearch is concerned , it reveals that for many liquor consumers surrogateadvertising is even more influencing than normal advertising, whereas for manyothers surrogate advertising is less or non influencing than normal advertising. 53
  • 60. The question arises about advertising ethics when it comes to surrogateadvertising. That is why there has been criticism of surrogate advertisingbecause they are advertising products which are not suppose to be advertisedaccording to the law of the land. While its opponents argue that strictly speakingsurrogate advertising may not be illegal, is it ethical. In any case, if it is felt thatcertain degree of control is required, then it is in order to have such guidelines soas to ensure that alcoholic beverages are not sold in a manner which isirresponsible in any way. Interestingly, in this research it has been revealed thatliquor consumers are on greater found aware of the fact that surrogateadvertising is advertising that is not according to the law of the land.Earlier very few liquor companies stepped in as sponsors for surrogateadvertising. However, today, more and more companies are coming forward assponsors to get associated with the elite lifestyle image for their brand building. Inthis context findings of the present research reveal that generally liquorconsumers are not impressed of companies coming forward as sponsors forliquor companies (as surrogate advertising) to get associated with the elitelifestyle image for their brand building.Considering the global change in the drinking patterns, the alcohol beveragecompanies are working at keeping their current consumers and at the same timetrying to lure new consumers by using different marketing and product gimmicks.From tropical fruit based drinks to Pepper Vodka, Organic beers andmalternatives, the segment that defines new age beverage continues to grow. 54
  • 61. Alcohol marketers have found that by blending the best of different categories,they can appeal to consumers who seek various benefits such as flavor as wellas added health benefits. And by mixing it up, liquor marketers get a colorfulpalette of flavors never seen before. However, as the findings of the presentresearch reveal the role of surrogate advertising in changing liquor consumersdrinking patterns is negative and not effective.The question arises about the equinity of products advertised through surrogateadvertising. To some liquor company’s claims that the products advertised aregenuine, and that is why companies are asked the companies to producecertificates stating that the brand extensions are genuine. So far as consumerperception is concerned, majority of them believe that liquor products advertisedthrough surrogate advertising are not genuine.Liquor companies promote any juice, mineral water or soda, and therefore it issuggested that these should be shown in a proper manner and not as trimmingsto liquor advertisement. These are welcome steps, but the key point lies inenforcement. If, in a free society, producers have a legitimate right to letconsumers know about their products through advertisements, consumers havethe right to information in adverts that are clear and honest. Surrogateadvertisements are not only misleading, but also false and dishonest in manycases. With surrogate advertising so widespread, this is the moment to tackle theproblem head-on. 55
  • 62. This fact is also substantiated by the findings of the present research as mostcommonly approached liquor consumers in this research find that surrogateadvertisements are not only misleading, but also false and dishonest in manycases.Instead of an outright ban of surrogate advertising, liquor companies need tounderline the need for dialogue and subsequent guidelines outlining dos anddon’ts of advertising. It could specify timings when the ads should be aired, nottarget children, disallow teenagers in ads, not allow ads that are glamorous orsuggest increased attractiveness to the opposite sex after alcohol consumption.With surrogate advertising so widespread, this is the moment to tackle theproblem head-on. There should be stringent regulatory measures to curb thepractice, through following measure: • Making transparent laws banning surrogate advertisements for different products under a single brand names, by amending the Trade Marks Act, for instance; • Providing teeth to the Advertising Standards Council of India (ASCI) 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; 56
  • 63. • 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; and• 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. 57
  • 64. BIBLIOGRAPHYWebsites• www.advertisinglaw.wordpress.com• www.mba.iiita.ac.in• www.nt.walletwatch.com• www.deccanherald.com• www.icmr.icfai.org• www.iosworld.org• www.magindia.com 58
  • 65. QuestionnaireOn Consumer Level1. To what extent do you agree that advertising increases your overall demand and consumption of harmful drinking?2. To what extent do you agree that surrogate advertising is less influencing for your consumption decision than normal advertising?3. Do you know that Surrogate advertising is advertising that is not according to the law of the land?4. Are you impressed of companies coming forward as sponsors for liquor companies (as surrogate advertising) to get associated with the elite lifestyle image for their brand building?5. The role of surrogate advertising in changing your drinking patterns is…?6. ‘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’, how do you see this step…..? 59
  • 66. 7. Do you find that liquor products advertised through surrogate advertising are genuine…?8. Do you agree that surrogate advertising defeats the very purpose of banning liquor advertisements?9. Is the decision of banning direct ads on liquor is correct or they could have done better by also banning indirect ads too ?10. To what extent does you agree that surrogate advertisements are not only misleading, but also false and dishonest in many cases..?11. To what extent do you agree that the alcohol beverage industry has a genuine intention to not just market their products in a socially responsible manner but to also comply with the appropriate state laws concerning the marketing of alcohol beverages? 60

×