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Surrogate marketing(1)


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Surrogate marketing(1)

  1. 1. Surrogate Marketing Surrogate Marketing
  2. 2. Indira Institute Of Management Pune Surrogate Marketing Content 1 Surrogate marketing Concept 2 History of Surrogate marketing 3 Advantages And Disadvantages 4 Impact on Stakeholders and Business environment 5 Business perspective of surrogate marketing 6 Surrogate marketing and Government 7 Need of the Hour 8 Conclusion 9 References Surrogate Marketing
  3. 3. Indira Institute Of Management Pune Surrogate marketing Concept DefinitionDuplicating brand image of one product extensively, in order to promote, another productof the same brand. It consist of :1. The sponsoring of sports/cultural/activities.2. It is dedicated towards the use of an insignificant, harmless product to increase/maintain awareness for their primary harmful brand.3. Surrogate advertisements are misleading, false and dishonest in many cases Surrogate Marketing
  4. 4. Indira Institute Of Management Pune History of Surrogate marketing1. History originated in Britain.1. Surrogate Advertising In India Surveys resulted that liquor ads had direct influence on Consumers purchase behavior Advertisements for liquor and cigarettes has been banned since 1995 So companies usually either go for brand extension and promotion of events . Surrogate Marketing
  5. 5. Indira Institute Of Management Pune Typical Alcoholic/Narcotic brands and products promoted by surrogate marketing Brand Communicating product Main Product Category Bagpiper Water and soda, cassettes, CDs Whisky McDowells Water and soda Whisky Red and White Bravery awards Cigarettes Teachers Bravery awards Whisky Kingfisher Calendars and mineral water Beer Pan Parag Pan masala Gutkha Johny walker Soda Whisky Royal challenge Golf accessories and mineral water WhiskyFour square white Water rafting and gliding Cigarettes Wills lifestyle Apparels, Accessories Cigarettes Bacardi Cassettes and CDs RumSmirnoff, Aristocrat Apple juice Vodka 502 Pataka 502 Pataka Tea Bidi Haywards 5000 Darting kids Beer AC Black Apple juice Whisky Surrogate Marketing
  6. 6. Indira Institute Of Management Pune Typical Cases1. Panparag pan masla i. Annual sale value of Plain pan parag 63.7 million ii. Annual cost of Advertisement 244.6 million According to (ASCI),surrogate ads formed 5 per cent of the total Indian advertising industry i..e. Rs 21,000crore Surrogate Marketing
  7. 7. Indira Institute Of Management Pune Typical cases1. Promotion by brand extension and events Brand extension : Launching new products with common brand name is known as brandextension Surrogate Marketing
  8. 8. Indira Institute Of Management Pune Typical cases1. Promotion by brand extension and events Surrogate Marketing
  9. 9. Indira Institute Of Management Pune Typical cases1. Promotion by brand extension and events Surrogate Marketing
  10. 10. Indira Institute Of Management Pune Typical casesPromotional EventsBacardi Blast1 In 1998, Bacardi had a successful concept,Bacardi Blast,large party with DJs and VJs,and crowds of 5,000 to 10,000.Video : Surrogate Marketing
  11. 11. Indira Institute Of Management PuneSponsorship of sports events and cultural events by tobacco and alcohol industry.• Manikchand’, manufacturers of gutkha (chewing tobacco), patronized the Filmfare awards ceremony• ‘Wills’ (brand of ITC, a subsidiary of British American Tobacco) used to sponsor Indian cricket team/matches• Tennis tournaments were sponsored by ‘Gold Flake’ cigarette (brand of Godfrey Phillips India Ltd. -GPI, a subsidiary of Phillip Morris). Boat racing was sponsored by ‘Four Square’ cigarettes (brand of GPI).• Charms’, a cigarette brand sponsored the ‘Spirit of freedom concert’, a musical event Surrogate Marketing
  12. 12. Indira Institute Of Management Pune Advantages and Disadvantages Advantages : It helps the company to generate sales for banned products. It keeps on reminding consumers about the banned products indirectly. If nobody can advertise, then the threat of competition from new players or new launches by competitors is minimized. Disadvantages: It beats the purpose of ban on advertisement of harmful products. it is harming the society a lot because children cannot distinguish between the banned products and the advertised product Surrogate Marketing
  13. 13. Indira Institute Of Management Pune Impact on Stakeholders and Business environment Positive Negative Economic Government generates revenue Company ends up with high cost of advertising Profiting media by paying high advertising cost Social Don’t effect on others who are unaware Misleading to younger generation Focused to selective target segment Challenging the ethical way of doing business Leads to healthy environment Leads to promote unhealthy products LegalCompany doesn’t breaks the legal spectrum Surrogate Marketing
  14. 14. Indira Institute Of Management Pune Business prospective of surrogate marketing1. Indian Liquor Industry with estimated market value of INR 15700 Cr according ASSOCHAM2. is growing at 30% over the last two years.3. Estimated value in 2015 is 1.4 lac cr4. It is a legitimate business in the country.5. Generates great revenue to the government6. Surrogate advertisement is done for positioning of brands7. Ban on surrogate Ads proven to be advantageous for domestic players since there is less threat of losing existing brand share to the new players Surrogate Marketing
  15. 15. Indira Institute Of Management Pune Surrogate marketing and GovernmentThe Drift between the industry and Government1. Government feels that promoting these brands has influence on young minds2. In 2005 Health minister Anbumani Ramadoss alleged that the tobacco industry was directly paying cinema stars to smoke in filmsGovernment notifications1. I&B ministry recently says the product should be available in a "reasonable quantity“.2. should be available in "substantial number of outlets"3. The expenditure on advertising for the product should not be disproportionate to the actual sales turnover of the product Surrogate Marketing
  16. 16. Indira Institute Of Management Pune Need of the HourPossible Solutions1. to develop an unambiguous plan of action.2. stricter measures of surveillance to identify such advertisements would be put in place.3. guideline for differentiating acceptable and unacceptable forms of advertising for surrogates.4. transparent laws banning surrogate advertisements for different products under a single brand name5. More power to ASCI6. Create consumer awareness7. legal actions against those agencies which design surrogate advertisements without complete knowledge of original product Surrogate Marketing
  17. 17. Indira Institute Of Management Pune ConclusionConclusions Surrogate advertisements are not only misleading, but also false and dishonest in many cases. This method is used by the corporates because of the ambiguous laws . As tobacco and liquor business are legislated yet RESTRICTED business in India and provides huge revenue to government , economic factors should be consider. while designing the laws and their implementation. Surrogate Marketing
  18. 18. Indira Institute Of Management Pune ReferencesReferences marketing a-snapshot/ Surrogate Marketing