This document is a certificate of completion for Hemangi Chatterjee's project on the need and effectiveness of surrogate advertising in the liquor industry. The project was completed under the guidance of Ms. Dhanakshee Kukreja at Amity School of Communication, Amity University in Uttar Pradesh, India. Hemangi Chatterjee studied how surrogate advertising became necessary for the liquor industry after direct advertising of alcohol was banned on television. Through a survey of 60 liquor consumers in Delhi, the project examined whether surrogate advertising is effective at influencing consumer behavior and perceptions of liquor brands.

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 CHATTERJEE
STUDENT 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. ACKNOWLEDGMENTS
Accomplishment of any project depends on the cooperation and allied
efforts of several sources of material, knowledge, energy and time hence
the opportunity has been given to me.
I would like to thank Ms. Dhanakshee Kukreja, my project guide for her
constant guidelines and advice without this project would not have been
completed.
Name of the student: Hemangi Chatterjee
Course: BJMC

4. ABSTRACT
The present research has been conducted in a bid to comprehensive and
comparative study of the advertising strategy used in liquor industry
which makes the need of surrogate advertising exemplary, as the only
way of advertising for liquor industry and also to know the effectiveness
of surrogate advertising in influencing customer perception towards the
products offered by the company
In the present research, in order to collect primary data sample were
selected conveniently. 60 Delhi based liquor consumers were selected for
collecting primary data.
Alcohol advertising has the potential of promoting changes in attitudes
and social values, including publicizing the desirability of social drinking
to its viewers, which all encourage a higher consumption of alcohol. It is
known that advertising can influence consumer choices, have a positive
short-term impact on knowledge and awareness about alcohol, but it has
proved difficult to measure the exact effects of advertising on the demand
for alcoholic beverages, in part because the effects are likely to be
cumulative and long-term. However, the recent literature suggests that
advertising increases the overall demand, and influence of consumers
towards higher consumption and harmful drinking. The findings of the
present research also greatly substantiate this fact as approached
consumers in greater majority agree to great extent that advertising
increases their overall demand and consumption of harmful drinking.
It is generally recognised that surrogate advertising is even more
influencing than normal advertising, but the liquor industry has no
choice. Of course, this strategy assumes that the brand and, in some

5. cases, the advertisements, are already well known. Otherwise, such
advertising may not serve any purpose. It is difficult to evaluate the
effectiveness of surrogate advertising. So far as the present research is
concerned , it reveals that for many liquor consumers surrogate
advertising is even more influencing than normal advertising, whereas
for many others surrogate advertising is less or non influencing than
normal advertising.

6. INDEX
INTRODUCTION
Aims of the study
Objective of the study
LITERATURE REVIEW
RESEARCH METHODOLOGY
FINDINGS AND ANALYSIS
CONCLUSION AND RECOMMENDATIONS
BIBLIOGRAPHY
APPENDIX
QUESTIONNAIRE

7. INTRODUCTION
For 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 other
promotional brand messages appear on TV, radio, in magazine and
billboards, a part of them is there too—on stage. Another reason is the
challenge. The majority of “advertising” messages are not very good and
some are down right insulting, as I’m sure you have noticed. Thus, the
opportunity to do something that works and that you can be proud off, is
always sitting out there. Finally, for me, “advertising” is a way of being in
sales without all the constant face-to-face rejection. When we are part of
any kind of halfway decent promotional effort, we will sell something. It
may not always pay out, but at least we changed some people’s behavior.
What this means when it comes to studying “advertising” is that the
learning experience can be interesting, informative, and really fun. When
most people think about advertising, they think about the creative side--
the clever slogans and attention getting pictures and illustrations. For
these clever slogans and graphics to be effective, however, requires a lot
of research, strategic thinking, and a good understanding of customer
behavior. It also requires knowing and being able to apply basic industry
practices.
1

8. Surrogate advertising is the most insidious form of advertising, where the
biggest hypocrites are the media who gleefully accept these lucrative
advertisements, while at the same time harping on moral standards that
their readers/viewers should inculcate.
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. The advertisement comes with the
same music and punch line as the one for the popular liquor brand
telecast before the ban on liquor advertisements. This phenomenon,
known as "surrogate advertising" (duplicating the brand image of one
product extensively to promote another product of the same brand), has
become commonplace.
In fact, so brazen is the attempt to lure customers and advertise the
liquor brands that nothing is left to chance. In most cases, licensees
have actually been taking hefty amounts from the liquor companies to
allow them to advertise their brands. In India, where even surrogate
advertisement, showing mineral water or sports gear of the same name
as popular liquor brands, is banned, it is surprising the licensees of
these kiosks are getting away with so much advertising. The companies
2

9. are actually luring youngsters to start drinking by advertising their
brands. 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 STUDY
The objective of this research work is comprehensive and comparative
study of the advertising strategy used in liquor industry which makes the
need of surrogate advertising exemplary, as the only way of advertising
for liquor industry and also to know the effectiveness of surrogate
advertising in influencing customer perception towards the products
offered 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 DEFINITIONS
Surrogate advertising is “an advertisement of a brand extension in such
a way that brings clear recall of the core product in the mind of the
consumer”. The literal meaning of ′Surrogate Advertising’ is duplicating
the brand image of one product extensively to promote another product
of the same brand.
Surrogate advertising involves advertising for products using a
company’s brand to promote other products sold using that same brand.
For example, it is technically acceptable to promote Smirnoff cassettes in
television ads in India, but not Smirnoff vodka.
In the advertising world ‘surrogate advertising' is a politically correct
term used to define fraudulent pieces of communication. For example, all
those playing cards, soda water bottles, apple juices, mineral water and
other product ads we see, are actually clever promotions for liquor and
cigarette brands by the same name.
Surrogate Advertising is quite rightly frowned upon as it is but a cynical
attempt at promoting products that public policy decrees is not in
society's 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 nature
of markets, brand promotion has become an elaborate exercise, often
extending across national boundaries.
Surrogate advertising has been around ever since someone decided that
certain things were probably not good in the interest of the community at
large. The government has out rightly banned the advertising and
publicity of alcohol and tobacco in any form; so, tobacco and alcohol
companies have found a way to circumvent the ban on advertising by
resorting to surrogate advertising in order to keep their brand alive in the
minds of consumers.
Surrogate advertising is usually born out of regulation. This regulation
may either be government imposed or self-imposed by a regulatory body
of the industry. By its very definition, surrogate advertising is something
that the advertiser resorts to in an attempt to get his brand across to the
consumers mind without violating any regulatory guidelines. Certainly it
is not ideal but in a number of cases this is the only way you can reach
your consumers in a cost-effective and meaningful way.
Surrogate advertising is used in two contexts: the first is when a
company “farms out” the entire marketing function and the group
providing the service is called a "surrogate marketing department.
7

14. The second is what is happening in India with respect to the ban on
tobacco and alcohol advertising. Companies in banned industries are
introducing brand extensions with products that are legal to advertise
with the same brand name as the banned product. One liquor company
introduced apple juice with the same brand name as the liquor. The idea
is the companies can advertise freely the extension - thus keeping their
banned-from-the-media products in the minds of the customers. So the
apple juice, for instance, is the surrogate for the liquor in the ads. The
companies also don't care much about the sales of the surrogate
products - for instance, I read that the apple juice isn't even readily
available to buy throughout the company.
This loophole that the tobacco and liquor companies are exploiting is
upsetting the legislature because every apple juice ad that reminds the
consumers of the liquor is a slap in the lawmakers' faces. But, they also
don't quite know what to do about it!
In general, surrogate marketing is when you promote one product or
service in the hopes of selling another. Why we would want to do that
varies. The best reason is that we aren't able to legally. But other reasons
might be because the two products sell better together - for instance, we
may make a product and it requires service - which we don't provide. We
8

15. can market a service provider - the surrogate - who will only use our
product.
SURROGATE ADVERTISING AND CONSUMERS
It is generally recognized that surrogate advertising is even more wasteful
than normal advertising, but the liquor industry has no choice. Of
course, this strategy assumes that the brand and, in some cases, the
advertisements, are already well known. Otherwise, such advertising may
not serve any purpose.
It is difficult to evaluate the effectiveness of surrogate advertising. In
Malaysia where cigarette advertising is banned (as in India), surrogate
advertising for cigarette brands is common. A leading brand of cigarette
advertised itself as a business marketing holidays on beaches. The tour
business, which was advertised as a surrogate for the cigarette brand,
became a market leader.
Alcoholic drinks, which are branded and bottled, are being made and
sold legally. If so, there should be no restraint on that advertising except
guidelines on what the advertising can show and, possibly, the time
during which such advertisement can be exposed on television. In any
case, 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 beverages
are not sold in a manner, which is irresponsible in any way.
Surrogate advertisements for alcohol or tobacco products can appear
within advertisements for something more innocent like bottled water or
perfume. The more innocent product is somehow merely the carrier for
the disguised, 'surrogate' advertisement. For example, the innocent
product may be labeled with the familiar logo of the Tobacco Company or
brewery. The surrogate advertising need not be imbedded with another
advertisement at all, however. The tobacco company (or any other
company whose products may not be advertised directly in a given
society) may give out free playing cards, for example, its familiar
company symbol used as the pattern on the back of the cards. Any
advertising technique of this kind would be considered surrogate
advertising.
In recent years, the liquor industry has undergone a dramatic shift.
Many global brewers and distillers have merged to reduce costs and gain
market share. For example, Diageo, the world’s biggest wines and Spirits
Company came into being through a merger of Guinness and Grand
Metropolitan. It then increased its core strengths by acquiring Seagram’s
business and other brands. The latest additions to this merger wave are
Belgium Interbrew and Brazil’s Ambev, which is now the biggest brewer
in the world.
10

17. Adding to this global wave of strategic realignments, beer is fast
becoming the alcoholic beverage of choice over spirits. With 35% market
share in 1997, beer rose to almost equal to spirits in 2002. Euro monitor
forecasts that by 2007, it will take a lead with 42% market share.
Another challenge that liquor industry is facing is that the consumer
groups, which were earlier targeted as one large demographic island,
have been fragmented into distinct psychological groups. Unlike a decade
ago, the consumers today have a number of options in terms of brands
and segments. A fast emerging change is in terms of flavor substitution
depending on consumption conditions. The generation Y consumers
include a very young and skeptical group of people, who are defining
their own world of drinking. They have a multitude of taste preferences
that they like to be made available at bars and pubs. This makes it
difficult for the alcohol companies to keep pace with their changing
preferences.
So how are the liquor companies managing these challenges along with
government laws and restrictions?
From tropical fruit based drinks to Pepper Vodka, Organic beers and
alternatives, the segment that defines new age beverage continues to
grow. Alcohol marketers have found that by blending the best of different
categories, 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, liquor
marketers get a colorful palette of flavors never seen before.
Furthermore, beverage marketers are increasingly trying to communicate
with consumers on a personal level. For example, the Johnnie Walker
Relationship Marketing Program called “Journey of Taste” has been
implemented successfully in most of its markets. This “mentor
program” (as it is usually called) features a guided Scotch whisky
education to the consumers led by a qualified Johnnie Walker
Ambassador. It not only allows the consumers to appreciate the Scotch
whisky or the brand but also allows them to develop a long-term
association with the brand. Guinness, a beer brand, is also entering the
second year of its Believer mentor program designed to convert Guinness
drinkers into effective brand ambassadors.
Nonetheless, there are conventional marketing techniques that the
marketers use to revive their brands and capture younger markets.
Cognacs or scotches suffer from a stodgy image that they are mostly
consumed by older men. Hence, cognac makers Hennessy and
Courvoisier have been trying to reach out to the younger market by
building their brands in the entertainment industry and urban markets.
Liquor marketers have also recognized that strong brand names, which
deliver high sales and profits, have the potential to wave the magic wand
on new products. The launch of the initial Courvoisier “Autumn
12

19. Collection” marked the Liquor Company’s attempt to transform it from
being “the world’s first cognac” to an icon of fashion. The launch was
part of a wider trend where makers of luxury brands try to capitalize on
their labels by extending them into new areas of business.
However, there are also liquor marketers that are finding creative ways to
play around government restrictions. In many countries, the government
does not allow the advertisement of liquor on TV and other mass media.
To counter this, the liquor industry has intentionally blurred the line
between products by advertising cocktail mixers, soft drinks or soda
water using the brand name of popular liquors. This phenomenon,
known as “surrogate advertising” (duplicating the brand image of one
product extensively to promote another product of the same brand) has
become widespread in many countries and continues to gain momentum.
For example, in India, the Bagpiper club soda advertisement featuring
movie celebrities is similar to an earlier advertisement of Bagpiper
whisky.
Does framed advertising influence consumer purchase decisions? If so,
with which consumer segments is it more influential? How does it
influence the purchase process? In this paper the impact of positively
and negatively framed advertising is diagnosed on five purchase-decision
constructs for a transformational consumer product category. The
moderating impact of consumers' education on this process is also
13

20. studied. Educated consumers are more influenced by positively framed
advertising; less educated consumers are more influenced by negatively
framed advertising. In general, positively framed advertising has a more
favorable impact than negatively framed advertising on purchase-
decision judgments for transformational products. The implications of
these findings for mainstream consumer products advertisers are
discussed.
SURROGATE ADVERTISING AND LIQUOR INDUSTRY
Worldwide, 1.8 million deaths in 2000 were attributable to alcohol use
causing 3.2% of all global deaths and contributing to 4% of the disease
burden. Alcohol is the leading risk factor related to the major burden of
disease in low mortality developing countries and the third most
prevalent risk factor for leading diseases and injuries in developed
14

21. countries. While alcohol consumption is decreasing in some developed
countries, it is on the rise in developing nations Significant proportion of
the student population drink at hazardous level. The burden from
alcohol exceeds that from tobacco because alcohol problems tend to take
their toll earlier in life. The physiological and social consequences of
alcohol use also negatively affect school performance, attendance and
productivity at work and relations within the family.
Alcohol consumption is declining in most of the developed countries, and
rising in many of the developing countries and the countries of Central
and Eastern Europe. Males do most of the drinking in these countries,
and evidence available regarding patterns of drinking suggests that large
amounts of heavy drinking are occurring. Patterns, context and overall
levels of alcohol consumption influence the health of the population as a
whole.
Alcohol transnational’s are shifting their focus to Asia and other
developing countries (young population and a growing economy) as the
American and European markets are saturated. With an increase in per
capita incomes, trade barriers falling, and alcoholic beverages advancing
into new markets in developing countries, alcohol consumption is likely
to 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 companies
dramatically changes the advertising and marketing of alcohol and most
15

22. countries (such as in Asia) lack alcohol control national policies and
strategies.
Alcohol advertising has the potential of promoting changes in attitudes
and social values, including publicizing the desirability of social drinking
to its viewers, which all encourage a higher consumption of alcohol and
weakens the social climate towards effective alcohol control policies. In
countries where advertising in the media is not totally banned, there is
frequent portrayal of alcohol in the media, particularly in magazines,
newspapers and television, especially of internationally branded
beverages. The mainstream of these portrayals suggests alcohol use as a
harmless pursuit, showing solidarity, friendship and masculinity, while
neglecting any negative consequences.
It is known that advertising can influence consumer choices, have a
positive short-term impact on knowledge and awareness about alcohol,
but it has proved difficult to measure the exact effects of advertising on
the demand for alcoholic beverages, in part because the effects are likely
to be cumulative and long-term. Recent literature suggests that
advertising and other marketing activities increase the overall demand,
and influence teenagers and young adults towards higher consumption
and harmful drinking (Saffer, 2006). Self-regulation by the mass media
has been attempted by developing codes of advertising for and by the
16

23. industry. However, the effectiveness of voluntary codes is likely to be
limited in developing countries because of lack of enforcement.
Even in places where alcohol advertising is banned, messages on alcohol
use could be conveyed to existing or potential consumers in a variety of
ways. One method frequently used is surrogate advertising – brand
sharing of products including name and logos, advertising at the point of
sales, and sponsorship of events particularly in teenager friendly events
such as sports, music and cultural events. Thus an effective monitoring
system is needed.
In contemporary India, tendency of alcohol consumption has percolated
down to youth. Media has played a leading role in encouraging the use of
alcohol among the youth through portrayalof alcohol in congenial social
settings, association of alcohol use with glamour and celebrity status and
by using direct and indirect advertising. Age of initiation for alcohol use
has progressively reduced in Kerala (India). In 1986, the age was 19. This
was reduced to 17 in 1990 and further to 14 in 1994. Alcohol Industry is
following exactly the same marketing and promotion tactics and
strategies as were employed by the Tobacco Industry globally and
especially 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’s
Surrogate Advertising- “Aristocrat” a popular whisky brand is being
advertised as Aristocrat Apple Juice. “Mc. Dowell’s” is advertised as
sodas, “Kingfisher” has packaged water bottles. Some alcohol brands
have introduced brand promotional items such as: “Haywards 5000” has
darting kits, “Bacardi” advertises through its Bacardi blast album and
also advertises through parties tied up with rediff.com . Regulatory
strategies for alcohol control thus will have to be formulated on same
lines as Tobacco Control. This will require initiating efforts for alcohol
control at national, regional and international levels.
The liquor industry in India comprises the organised and unorganised
sectors. The organised sectors include IMFL and the beer industry while
the unorganised sector comprises of the market for country liquor. The
18

25. size of the country liquor is approximately 40 times that of the IMFL
market. The size of the ABs industry is estimated at Rs. 95 bn., while
fermented drinks account for 35% of the ABs market, the rest is derived
from Indian Made Foreign Liquor (IMFL) segment.
The UB group, consisting of McDowells Limited, UB Limited and
Herbertsons Limited, dominate the liquor market and have a combined
market share (in terms of sales value) aggregating 28%. The other major
players in the segment include Shaw Wallace & Co. Limited, Jagatjit
Industries Limited and Mohan Meakin Limited having market shares of
13%, 9% and 8% respectively. However, in terms of sales volumes, Balaji
Distillers Ltd., an associate of UB Limited, has a market share of 21.4%
followed by Jagatjit Industries Limited at 20.4% and Mohan Meakins
Limited at 16.3%. Shaw Wallace & Co. Limited and Herbertsons Limited
have 14.0% and 13.1% of market shares respectively.
The state of Maharashtra accounts for approximately 26% of the total
market for liquor followed by the states of Tamil Nadu, Delhi, Calcutta
and Rajasthan, which respectively accounted for 18%, 10%, 8% and 7%
of the total market. The Government of Gujarat has always prohibited
the sale of ABs in the state while in Andhra Pradesh (AP) and Haryana,
prohibition has been frequently imposed and lifted. The prohibition
imposed earlier was lifted in the states of AP and Haryana in March 1997
and in April 1998 respectively. The frequent imposition and lifting of
19

26. prohibition in certain states has destabilised the industry’s growth and
performance.
As the demand in the ABs industry is primarily brand driven,
manufacturers focus on brand promotion to increase their sales. The
manufacturers also create various brands under a single product
category in order to counter competition. However, there is a strict
regulation on advertising and some states have even banned
advertisements. Consequently, the companies have resorted to surrogate
advertising through sponsorship of fashion shows and sport events.
The surrogates used by Smirnoff Vodka, Hayward's 5000, Royal
Challenge Whiskey and Kingfisher beer advertisements ranged from
audiocassettes, CDs and perfumes to golf accessories and mineral water.
By August 2002, the I&B Ministry had banned 12 advertisements.
Leading satellite TV channels, including Zee, Sony, STAR and Aaj Tak
were issued show-cause notices asking them to explain their reason for
carrying surrogate liquor advertisements. The channels were asked to
adhere strictly to the Cable Television Regulation Act 1995.
As a result, Zee and STAR stopped telecasting the advertisements; Aaj
Tak and Sony soon followed suit. In addition, the I&B Ministry hired a
private monitoring agency to keep a watch on all advertisements for
violations of the Act.
20

27. These developments led to heated debates over the issue of surrogate
advertising by liquor companies. Though the liquor companies involved
protested strongly against the I&B Ministry's decision, they had no
choice, but to comply with the regulations. Analysts remarked that the
government's policy was hypocritical. One said, "On the one hand they
allow these 'socially bad' products to be manufactured and sold (in order
to garner revenues) and then they deny the manufacturers the right to
propagate knowledge of their products in order to drive sales. If
something is bad and cannot be advertised, why allow it to be sold at
all?"
Meanwhile, the government also seemed to be in dilemma. On the one
hand, it had to encourage the sales of liquor and tobacco because they
were the highest taxed sectors of the Indian economy. On the other
hand, there was also the need to take the high moral ground and reduce
the consumption of such products.
The Indian liquor industry can be divided into two broad segments:
Indian Made Foreign Liquor (IMFL) and country-made liquor. IMFL
comprises alcoholic beverages that were developed abroad but are being
made 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 the
unorganized sector accounted for almost 100% of the country-made
21

28. liquor segment. During 1999-00, the Rs 60 billion Indian liquor industry
grew at the rate of 10-12%. While IMFL was consumed by the middle and
upper classes of society, the economically backward classes consumed
country-made liquor. In India, 40-50% of all males and 1% of all females
consumed alcohol. Almost 62% of the drinkers could be classified as
light drinkers (i.e. social drinkers), 29% percent as moderate drinkers,
and about 9% as hard drinkers. The organized industry was dominated
by Shaw Wallace and United Breweries, which together accounted for
around 53% of the total market. The government heavily regulated the
liquor industry. Companies were not allowed to expand capacity without
prior approval from the concerned state government. The distribution of
liquor was also controlled in many states through auction system, the
open-market system and the government-controlled system.
Liquor companies accused of indulging in surrogate advertising seem to
be playing musical chairs as they move from one channel to another to
evade the information and broadcasting (I&B) ministry. Sources in the
government say as soon as the I&B ministry sends notices to
broadcasters to withdraw their surrogate ads, they reappear on other
channels. “Sometimes the products are also changed. As for instance, if
the surrogate product was apple juice which was objected to, it is later
changed to soda.”The government, for now, seems to have no option but
to keep sending out show cause notices to the television channels. The
22

29. apex body for broadcasting companies, the Indian Broadcasting
Foundation (IBF), is taking a serious view of the matter.
In a recent meeting with members of the Confederation of Indian
Alcoholic Beverages Companies (CIABC) and other liquor companies
such as Seagram and Jagatjit Industries, IBF informed them that they
must withdraw all surrogate ads and should adhere to the rules
prescribed in the Advertising Code.To some liquor company’s claims that
the products advertised are genuine, IBF has asked the companies to
produce certificates stating that the brand extensions are genuine. Real
products or services (non-alcoholic and non-tobacco), which are widely
distributed in the market through established networks “should not be
denied speech, even if the product or service shares a brand name with a
liquor 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 influence
on the consumption habits of 431 million people in India and an indirect
impact on 275 million `aspirants' from the lower income group.
Considering this and realising that nearly 50 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 the eyes of viewers in the world's fourth highest liquor-
23

30. consuming country. Surrogate advertising defeats the very purpose of
banning liquor advertisements.
It rules that that if liquor companies promote any juice, mineral water or
soda, these should be shown in a proper manner and not as trimmings
to liquor advertisement. These are welcome steps, but the key point lies
in enforcement. If, in a free society, producers have a legitimate right to
let consumers know about their products through advertisements,
consumers have the right to information in adverts that are clear and
honest. Surrogate advertisements are not only misleading, but also false
and dishonest in many cases. With 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 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 practices
of surrogate advertising.
With the Government trying to clamp down on surrogate advertising,
liquor companies seem keen to bat out the ban. Even as liquor brands
have traditionally been associated with up market sporting activities like
25

32. golf, polo, derby and yachting, companies are now turning towards the
game of the masses - cricket. In fact, the latter half of the current year
will see liquor brands as the title sponsors of two major cricketing events
featuring India. Immediately after the triangular series at Zimbabwe (of
which Royal Stag was the associate sponsor), the India and Zimbabwe
Test series will be called the Royal Stag Cup. Till date Royal Stag has
used several international cricketers as brand endorsers. This is the first
time the company has forayed into tournament sponsorship. Similarly,
the ICC World XI Vs Australia series to be held Down Under will be called
the Johnnie Walker Super Series.
According to media planners, as both the series are being held outside
India it would be difficult for the Government to blip out the liquor
brands. "Since the matches will be beamed into Indian drawing rooms
live, the brands will enjoy good visibility," they added. Internationally
beer brands such as Fosters and Lion have supported cricket in
Australia and Sri Lanka respectively.
Meanwhile, Royal Stag has roped in Zimbabwean Vice-Captain, Heath
Streak as their new Royal Stag brand ambassador. Other celebrity Royal
Stag cricket endorsers include Australian Cricket captain Ricky Ponting,
and India's ace offie Harbhajan Singh. The Information and Broadcasting
(I&B) Ministry's efforts to ban surrogate advertising of liquor brands has
reached a naught. A few months ago, it had sent out notices to various
26

33. television channels to withdraw advertisements by liquor companies. But
within a few weeks of the notices being issued, surrogate advertising
made a comeback on television. In fact, a few liquor companies have
been advertising during the ongoing cricket series as well.
Earlier, in an interaction with Government officials, channels were
categorically told that there is a complete ban on advertising by liquor
companies. "However, exemptions could be granted on a case-by-case
basis, like the one granted to Kingfisher Airlines," they had said. The
Government is also handicapped by procedure wherein it can take action
against channels only after receipt of complaints. "The Government
cannot suo motu issue show-cause notices. It has to first receive
complaints," said official sources. Liquor companies on their part state
that their advertising is self-regulated and comply with the Indian
Broadcasting Foundation and the Advertising Standards Council of India
code.
The Rs 60,000-crore Indian beverage alcohol industry has always been
operating in a restricted and controlled environment. It is a real shame
that an industry that is a legitimate business in the country and which
contributes a whopping Rs 22,000 crore just in revenues to the
government, is not allowed to market its products freely and
communicate to its consumers directly. This restrictive environment is
also applicable to the beer and wine industry.
27

34. Product advertising for liquor and cigarette companies is banned in the
country since 1995 by Cable Television Network (Regulation) Act.
According to Rule 7 (2) 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, liquor 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 fact, recently the government of India has in a unilateral move sought
an amendment in the Trade and Merchandise Marks Act of 1958 to
explore possibilities of denying extension of registration of trademarks
used 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 these
products advertised do not justify advertisement expenditure incurred by
the companies, it is argued.
The alcohol beverage industry is justifiably upset with the proposed axe
on advertising and promotions of legitimate economic activity through
trademark extensions. These should not be confused with surrogate
advertising wherein no products may exist.
28

35. Freedom of commerce should be preserved and brand extensions of
cigarette tobacco and liquor products should not be banned
notwithstanding similar graphics, if they do not propagate smoking or
drinking merely on the ground of the brand names being similar.
The ban on advertising of alcohol beverage products has severely
handicapped communication with consumers. The industry is naturally
compelled to make the best use of the channels and media of
communications still open to it. Companies with liquor brands are not
advertising liquor products; instead they have extended the equity of
their brands into other fields. Over a period of time these products have
become independent businesses for companies.
Some of the product extensions like water, soda, and music cassettes
have sales which run into millions in value and volume. McDowell's sold
1.5 million cases of water and soda, through its 20 franchise plants.
Water and soda are added to our core liquor product, they are legitimate
businesses.
Umbrella branding is a known phenomenon in marketing and today, we
have omnibus brands like Nestle, Amul, Samsung etc which sell many
products under one brand umbrella. Surely, the reverse logic would also
29

36. apply that if any of the above-exemplified companies were to come out
with a beverage alcohol, their original products cannot be banned.
As far as co-relation between value of goods being sold and quantum of
advertisement is concerned, this is a commercial decision why
companies spend more than their turnover on a set of products.
However, for brand building exercises, huge investments are undertaken
and they at times can exceed the value of the sales turnover.
The Advertising Standards Council of India (ASCI) has clarified that as
per its code, the mere use of a brand name or company name that may
also be applied to a product whose advertising is restricted or prohibited
is not reason to find the advertisement objectionable provided the
advertisement is not objectionable and the product is produced and
distributed in reasonable quantities and the objectionable advertisement
does not contain direct or indirect cues for the product that which is not
allowed to be advertised.
The industry is fully sensitive to the need for shielding the young and the
impressionable from getting carried away. Rather than an outright ban
on advertising, the government should endorse the “Code of Conduct”
which specifies the timings when the ad should be aired, non-targeting of
children, disallowing teenagers in ads etc.
Instead of an outright ban, the industry has been underlining the need
for dialogue and subsequent guidelines outlining dos and don’ts of
30

37. advertising. It could specify timings when the ads should be aired, not
target children, disallow teenagers in ads, not allow ads that are
glamorous or suggest increased attractiveness to the opposite sex after
alcohol consumption.
RESEARCH METHODOLOGY
The present chapter details the research methodology applied for
conducting this research. Research may be classified according to its
purpose. It may be concerned with solving theoretical issues, something
capable of wide generalisation but difficult to achieve. On the other
hand, it may be concerned with solving a very specific practical problem
in one company, this may be achieve more readily but have little
application outside the particular case (Yin, 1994). The present research
was related to 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 (with reference to Indian liquor
industry)
31

38. Research Design
Research design provides the glue that holds the research project
together. A design is used to structure the research, to show how all of
the major parts of the research project -- the samples or groups,
measures, treatments or programs, and methods of assignment -- work
together to try to address the central research questions.
Qualitative methods are useful in those situations where it is necessary
to use data that are basically an interpretation of the phenomena in the
social world and then to present the interpretation of that phenomena as
faithfully an accurately as possible. Quantitative research arises from a
positivist paradigm, which is centered, on objective truth, scientific
methods and systematic relationships, which allow generalizations or
point specific linkages between elements of a problem.
32

39. For studying the views of respondents it becomes necessary for a
researcher to use both of these qualitative and quantitative method for
first collecting the information which gives an end result which can be
measured and an analysis can be done by seeing that, and for a much
desirable and meaningful analysis we need an information which is
qualitatively correct as we are not taking whole of the society for their
views regarding the topic, So it becomes necessary to use both
Qualitative 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 the
respondents to have flexibility in their responses. As has been identified
above survey was conducted in this research through questionnaire
method; in which interviewees were provide a questionnaire having a set
of close-ended questions. The questionnaire consisted 11 close-ended
questions.
Selecting the right sample is key to a study; therefore lot of importance
was given for selecting the right sample. The research ensured that the
characteristics of the sample were the same and that it belonged to the
liquor industry. It was also found imperative to select a sample from
which data could be analysed and research questions could be
investigated. In the present research, the sample size was 60.
33

40. Primary data can be collected from various sources and methods that are
case studies, observation, questionnaire survey and interview. In this
research interview of Marketing Executives of liquor companies survey
method 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 of
Indian liquor industry relating to advertising and advertising ban reports
of government was used.
Limitations of the research
Quite characteristically, academic research is full of limitations,
particularly in the contexts of time and resources provided. The present
researcher also confronted this problem. Thus due to the limitation of
resources, the researcher had to reduce the sample size due to limited
provided time the researcher had to analyse the data on simple method
avoiding the complications and lengthiness of scientific and technical
methods.
34

41. DATA FINDINGS
Sab 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 ANALYSIS
On 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 extent
As according to the figure above, 15 (25%) out of the total 60 approached liquor
consumers agree only to some extent that advertising increases their overall
demand and consumption of harmful drinking; whereas some 45 (75%) of them
agree to great extent that advertising increases their 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?
42

49. 50 50
To some extent To great extent
According to the figure above 30 (50%) out of the total 60 approached liquor
consumers agree to great extent that surrogate advertising is less influencing for
their consumption decision than normal advertising ; whereas the remaining 30
(50%) of them agree only to some extent that surrogate advertising is less
influencing for their consumption decision than normal advertising.
3. Do you know that Surrogate advertising is advertising that is not
according to the law of the land?
43

50. No
20%
Yes
80%
According to the figure above, 48 (80%) out of the total approached liquor
consumers come to the conclusion that they are aware of the fact that surrogate
advertising is advertising that is not according to the law of the land; whereas at
the same time some 12(20%) of them come to the conclusion that they are not
aware of the fact that surrogate advertising is advertising that is not according to
the law of the land.
44

51. 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?
33.33
66.66
Yes No
As the figure above demonstrates 20 (33.33%) out of the total 60 approached
liquor consumers come to the conclusion that they are 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; whereas the
remaining some 40 (66.66%) of them come to the conclusion that they are not
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.
45

52. 5. The role of surrogate advertising in changing your drinking patterns
is…?
30
70
Positive Negative
The figure above demonstrates that for 18 (30%) out of the total 60 approached
liquor consumers in this research find that the role of surrogate advertising in
changing their drinking patterns is positive; whereas some 42 (70%) of them find
that the role of surrogate advertising in changing their drinking patterns is
negative.
46

53. 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?
Wrong
20%
Right
80%
According to the above figure, 48 (80%) out of the total approached liquor
consumers come to the conclusion that issuing show-cause notices asking TV
channels to explain their reason for carrying surrogate liquor advertisements is
right step; whereas at the same time some 12(20%) of them come to the
conclusion that issuing show-cause notices asking TV channels to explain their
reason for carrying surrogate liquor advertisements is not right step.
47

54. 7. Do you find that liquor products advertised through surrogate
advertising are genuine…?
40
60
Yes No
As the above figure demonstrates for 24 (40%) out of the total 60 total
approached liquor consumers come to the conclusion that liquor products
advertised through surrogate advertising are genuine; whereas for remaining
some 36 (60%) of them liquor products advertised through surrogate advertising
are not genuine.
48

55. 8. Do you agree that surrogate advertising defeats the very purpose of
banning liquor advertisements?
28.33
71.66
Yes No
According to the figure (8) 43 (71.66%), out of the total 60 approached liquor
consumers in this research find that surrogate advertising defeats the very
purpose of banning liquor advertisements; whereas the remaining 17 (28.33%) of
them find that surrogate advertising does not defeat the very purpose of banning
liquor advertisements.
49

56. 9. Is the decision of banning direct ads on liquor is correct or they could
have done better by also banning indirect ads too
36
64
Direct ads Both
According 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 not
only 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 liquor
consumers in this research find to great extent that surrogate advertisements are
not only misleading, but also false and dishonest in many cases; whereas the
remaining 15 (25%) of them find only to some extent that surrogate advertisements
are not only misleading, but also false and dishonest in many cases.
51

58. 11. To what extent does you agree that the alcohol beverage industries
have a genuine intent 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?
20
80
To great extent To some extent
According to the figure (11), 48 (80%) out of the total approached liquor consumers
agree to great extent that the alcohol beverage industries have a genuine intent 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;
whereas at the same time some 12(20%) of them agree only to some extent that
the alcohol beverage industries have a genuine intent 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.
52

59. CONCLUSION AND RECOMMENDATIONS
Alcohol advertising has the potential of promoting changes in attitudes and social
values, including publicizing the desirability of social drinking to its viewers, which
all encourage a higher consumption of alcohol. It is known that advertising can
influence consumer choices, have a positive short-term impact on knowledge
and awareness about alcohol, but it has proved difficult to measure the exact
effects of advertising on the demand for alcoholic beverages, in part because the
effects are likely to be cumulative and long-term. However, the recent literature
suggests that advertising and increases the overall demand, and influence of
consumers towards higher consumption and harmful drinking. The findings of the
present research also greatly substantiate this fact as approached consumers in
greater majority agree to great extent that advertising increases their overall
demand and consumption of harmful drinking.
It is generally recognized that surrogate advertising is even more influencing than
normal advertising, but the liquor industry has no choice. Of course, this strategy
assumes that the brand and, in some cases, the advertisements, are already well
known. Otherwise, such advertising may not serve any purpose. It is difficult to
evaluate the effectiveness of surrogate advertising. So far as the present
research is concerned , it reveals that for many liquor consumers surrogate
advertising is even more influencing than normal advertising, whereas for many
others surrogate advertising is less or non influencing than normal advertising.
53

60. The question arises about advertising ethics when it comes to surrogate
advertising. That is why there has been criticism of surrogate advertising
because they are advertising products which are not suppose to be advertised
according to the law of the land. While its opponents argue that strictly speaking
surrogate advertising may not be illegal, is it ethical. In any case, if it is felt that
certain degree of control is required, then it is in order to have such guidelines so
as to ensure that alcoholic beverages are not sold in a manner which is
irresponsible in any way. Interestingly, in this research it has been revealed that
liquor consumers are on greater found aware of the fact that surrogate
advertising is advertising that is not according to the law of the land.
Earlier very few liquor companies stepped in as sponsors for surrogate
advertising. However, today, more and more companies are coming forward as
sponsors to get associated with the elite lifestyle image for their brand building. In
this context findings of the present research reveal that generally liquor
consumers are not 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.
Considering the global change in the drinking patterns, the alcohol beverage
companies are working at keeping their current consumers and at the same time
trying to lure new consumers by using different marketing and product gimmicks.
From tropical fruit based drinks to Pepper Vodka, Organic beers and
malternatives, 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 well
as added health benefits. And by mixing it up, liquor marketers get a colorful
palette of flavors never seen before. However, as the findings of the present
research reveal the role of surrogate advertising in changing liquor consumers
drinking patterns is negative and not effective.
The question arises about the equinity of products advertised through surrogate
advertising. To some liquor company’s claims that the products advertised are
genuine, and that is why companies are asked the companies to produce
certificates stating that the brand extensions are genuine. So far as consumer
perception is concerned, majority of them believe that liquor products advertised
through surrogate advertising are not genuine.
Liquor companies promote any juice, mineral water or soda, and therefore it is
suggested that these should be shown in a proper manner and not as trimmings
to liquor advertisement. These are welcome steps, but the key point lies in
enforcement. If, in a free society, producers have a legitimate right to let
consumers know about their products through advertisements, consumers have
the right to information in adverts that are clear and honest. Surrogate
advertisements are not only misleading, but also false and dishonest in many
cases. With surrogate advertising so widespread, this is the moment to tackle the
problem head-on.
55

62. This fact is also substantiated by the findings of the present research as most
commonly approached liquor consumers in this research find that surrogate
advertisements are not only misleading, but also false and dishonest in many
cases.
Instead of an outright ban of surrogate advertising, liquor companies need to
underline the need for dialogue and subsequent guidelines outlining dos and
don’ts of advertising. It could specify timings when the ads should be aired, not
target children, disallow teenagers in ads, not allow ads that are glamorous or
suggest increased attractiveness to the opposite sex after alcohol consumption.
With surrogate advertising so widespread, this is the moment to tackle the
problem head-on. There should be stringent regulatory measures to curb the
practice, 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. BIBLIOGRAPHY
Websites
• 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. Questionnaire
On Consumer Level
1. 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