Final year project report

PROJECT REPORT
ON
“To study the impact of surrogate advertisement with reference to alcohol
brands”
Submitted in partial fulfillment of award of Post Graduate Diploma in
Management (PGDM) under the guidance of “Dr.Sumesh Raizada”
Submitted By:-
Name:-Aditi Ray
Roll No.:-FA15010
Jagan Institute of Management Studies
3, Institutional Area, Sec 5, Rohini,
Delhi - 110085

CERTIFICATE
This is to certify that the project work done on “To study the impact of surrogate
advertisement with reference to alcohol brands” is an original work carried out by Ms.Aditi
Ray under my supervision and guidance. The project report is submitted towards the partial
fulfillment of Two year, full time Post Graduate Diploma in Management.
This work has not been submitted anywhere else for any other degree/diploma.
Date: Dr.Sumesh Raizada
Aditi Ray
FA15010

DECLARATION
I hereby declare that this project titled “To study the impact of surrogate advertisement with
reference to alcohol brands” submitted by the undersigned to JIMS has been carried out by me.
Further I declare that this is my original work carried out under the guidance of Dr.Sumesh
Raizada in partial fulfillment of PGDM Course for the award of diploma.
All the contents of this project report are true and to my best of knowledge have not been
submitted earlier to any other university or institution for award of Degree / Diploma /
Certificate or published any time earlier.
Aditi Ray
FA15010

ACKNOWLEDGEMENTS
I am using this opportunity to express my gratitude to my faculty who supported me throughout
the course of this MBA project. I am thankful for their aspiring guidance, invaluably constructive
criticism and friendly advice during the project work. I am sincerely grateful to them for sharing
their truthful and illuminating views on a number of issues related to the project.
A special mention of my Project Guide Dr.Sumesh Raizada for his continuous encouragement
and immaculate guidance throughout the tenure of the project.
Thank you,
Aditi Ray

EXECUTIVE SUMMARY
In today’s advertisement scenario, surrogate advertisements holds great potential and growth
when compare to other advertisements. This growth and potentiality directed to enter into this
sector.
The success story of a good advertisement depends on how it creates image before customer’s
mind. This study tries to reveal the knowledge and perception of customer’s by exploring their
experiences and valuable suggestions. Also trying to find out whether the surrogate
advertisements make some impact throughout the market. Only some advertisements make the
customers to try the product. So, descriptive type of research is adopted for studying the overall
market. Non probability sampling technique, convenient sampling is carried out for collecting
the primary data. Primary as well as secondary data’s were collected through questionnaire
method, and it helps to experience the advertisement perception of customer directly.
Customers mainly remind the surrogate advertisements because on the medium, it is represented
through different media’s. The entire study points out the area of improvements, while doing the
surrogate advertisements. As every advertisement were intended to create some good impacts on
customer’s mind; ethically it has to satisfy all the desires and needs of customer. It came to know
that people remember the brand names and ask for the surrogate products. Because of the
knowledge and awareness level of surrogate advertisements are high, it is sure that liquor
companies can take the mileage through surrogate products.

INDEX
S.no. Title Page no.
I. Certificate 2
II. Declaration 3
III. Acknowledgement 4
IV. Executive summary 5
CHAPTER 1-INTRODUCTION
1.1 Research problem statement 9
1.2 Objectives and scope of study 9
1.3 Introduction of surrogate advertisement 10
1.4 The corporate standpoint 16
1.5 Recent surrogate advertisements 18
1.6 Surrogate advertising: emerging trend 19
CHAPTER 2-LITERATURE SURVEY
2.1 Prevalence of alcohol use 22
2.2 The historical construction of an ambivalent drinking culture 23
2.3 Alcohol-related problems 25
2.4 Economic liberalization, social change and changes in
drinking patterns
25
2.5 The official response to the alcohol problem 27

CHAPTER 3- Research Methodology
3.1 Type of study 30
3.2 Sources of data 31
3.3 Method of data collection 31
3.4 Sampling technique 31
3.5 Sample size 31
3.6 Data collection 32
3.7 Data collection instrument 32
3.8 Statistical tools used for analysis the data 32
3.9 Limitation of the study 32
CHAPTER 4- Data Analysis And Interpretation
4.1 Advertisement media 34
4.2 Awareness of surrogate advertisements 35
4.3 Frequency of advertisements 35
4.4 Purchase of surrogate product 36
4.5 Advertisement remembered 36
4.6 Market survey 37
4.7 Opinion about surrogate advertisements 37
4.8 People evaluation 38
4.9 Opinion on banning surrogate advertisements 38
4.10 Impact of surrogate advertisements 39

4.11 Product recalling 39
4.12 Influence of surrogate advertisements 40
4.13 Liquor advertisements are ethical compare to other products 40
4.14 Chi square testing 41
CHAPTER 5
5.1 Findings of the study 45
5.2 Conclusions 46
V Bibliography 48
VI Annexure 49

CHAPTER 1
INTRODUCTION
1.1 RESEARCH PROBLEM STATEMENT
“To study the impact of surrogate advertisement with reference to alcohol brands”
The banning of advertising of alcohol products by central government made companies resort to
advertise them using other products with same brand name leading to surrogate advertising.
Ethical concerns and issues should be addressed. Challenges of surrogate advertisement for
ethical business practice is that one should not mislead consumers, especially young generation
to lean towards drinking alcohol, cigarettes. Surrogate advertisements are considered
ethical/unethical by people is known.
This research study is significant as it enables to find the people's perception of surrogate
advertisements and their impact on customer’s buying decision is analyzed. It helps companies to
know the customer views and make appropriate changes in their strategies to reach out to
customers in a better way.
1.2 Objectives and scope of study
1. To study the consumers awareness towards surrogate advertisements.
2. To understand the consumer perception towards surrogate advertisements and its products.
3. To evaluate the influence of surrogate advertisement on consumers buying decision.
4. To recommend suitable strategies to the organization to make the surrogate advertisements
ethical and effective.

1.3 INTRODUCTION OF SURROGATE ADVERTISEMENT
1.3.1SURROGATE ADVERTISING: DEFINITION
The term 'surrogate' is defined a 'substitute' i.e. anything which takes place of other. It can be a
person, human, product etc. In case of surrogate advertising, a product is used to advertise a
certain different product. Especially products (for which direct advertising on mass media is
prohibited by the laws of land of most countries) are advertised with use of substitutes like
mineral water, soda, Mega cricket team clubs, friend clubs or music CDs.
Advertising takes various shapes with level of surrogate advertisements varying from country to
country, people to people and product to product. In certain regions of the globe, open
advertisements of these products are allowed while some counterparts imposing strict restrictions
on them. The basic intention of these types of advertisements is mainly to popularize the brand
and create a slot of consideration in the potential consumer’s minds.
1.3.2 ORIGIN OF SURROGATE ADVERTISING
It is said that birth of surrogate advertising happened in Britain, where housewives started
protesting against liquor advertisements which provoked their husbands. The protest rose to a
level where liquor advertising had to be banned and brand owners seeing no way out decided to
promote fruit juices and soda under the brand name; the concept later emerged as surrogate
advertisements.
"Surrogate advertising is a reflection of the hypocritical society that we live in. We consider
some products good enough to be sold but not good enough to be advertised. A marketer has to
sell his product, and will find means to promote it. I don't blame him."

Pushpinder Singh, Senior Creative Director (O & M)
A surrogate advertisements is one in which a different product is promoted using an already
established brand name. Such advertisements or sponsorships help in contribute to brand recall.
The different product shown in the advertisement is called the “Surrogate.” It could either
resemble the original product or could be a different product altogether, but using the established
brand of the original product. This type of advertising uses a product of a fairly close category,
as: club soda, mineral water in case of alcohol, or products of a completely different category
(for example, music CD's or playing cards) to hammer the brand name into the headvertisements
of consumers. The banned product (alcohol or cigarettes) may not be projected directly to
consumers but rather masked under another product under the same brand name, so that
whenever there is mention of that brand, people start associating it with its main product (the
alcohol or cigarette).The sponsoring of sports/cultural/leisure events and activities also falls
under the purview of surrogate advertising.
1.3.3 INDIAN SCENARIO
The use of surrogate advertising in India can be traced back to 1995 when the Cable Television
Act 1995 was enforced which stated - "No advertisement shall be permitted which promotes
directly or indirectly, production, sale or consumption of cigarettes, tobacco products, wine,
alcohol, liquor or other intoxicants". This ban on advertising of such products leadvertisements
to the emergence of surrogate advertising in India in a big way. Indian market was flooded by
surrogate products of established brands of the so called 'negative products' and their promotions.

By August 2002, the I&B Ministry had banned 12 advertisements and leading satellite TV
channels including Zee, Sony, STAR and AajTak were issued show cause notices to explain their
rationale behind carrying surrogate liquor advertisements. 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 June 2002, the Indian Information and Broadcasting (I&B) Ministry served notices to leading
television broadcasters to ban the telecast of two surrogate advertisements of liquor brands
McDowell No.1 and Gilbey’s Green Label. The Ministry also put some other brands ---
Smirnoff Vodka, Hayward’s 5000, Royal Challenge Whiskey and kingfisher beer on a “watch
list.” 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 realizing 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-consuming country. The very purpose of banning liquor
advertisements is defeated by surrogate advertising. Answering to the notices, Zee and STAR
stopped telecasting the advertisements, followed soon by AajTak and Sony.
In addition, The I&B Ministry hired a private monitoring agency to keep a watch on all the
advertisements for violation of the Act. These developments led to heated debates over the issue

of surrogate advertising by liquor companies being allowed on national media. Though the
companies involved came out strongly against the I&B Ministry’s decision, they seemed to have
no other choice, given the highly regulated nature of the liquor business.
Liquor producers spent heavily on advertising on the electronic media, particularly TV. Though
the broadcasters were bound by the 30 yrs old advertising code, which stated that
“No advertisements shall be permitted which relates to or promotes cigarettes and tobacco
products, liquor, wines and other intoxicants,” the telecast of such product continued blatantly
over the years. More over the satellite channels garnered about 50% of their revenue from liquor
and cigarettes advertisements. In the peak seasoned it gets almost doubled. Due to the ban, liquor
companies focused more on promotions for brand building.
They started sponsoring events that projected the “glamour” of the brands, like track racing, car
rallies etc. for instance Shaw Wallace Co. one of the leading liquor companies in India,
conducted the Royal Challenge Invitation Golf tournament, which became an annual event.
Some companies also promoted their product through corporate advertising, distributing free
gifts like Caps and T- Shirts with the brand name and using glow-signs outside the retail outlets.
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. However as
the TV was the most effective medium of advertising, surrogate advertising on TV became
popular. The liquor producers seemed to have ensured that the ban was only on the paper. In the
mean time, some producers entered new segments under the liquor brand or advertised these

products under liquor brand. Most of the liquor producers entered into packaged water segment,
such as Kingfisher Mineral water. McDowell used surrogate advertising by using its mineral
water and soda brands, which generated additional revenues for the company. In the early 2001,
SWC started marketing its range of golf accessories under the liquor brand Royal Challenge. It
also announced that India’s flagship
Golfing Event – the Indian open would be sponsored by the company till 2006.
McDowell’s No.l Platinum:
Indian Cricket Team skipper MS Dhoni advertises for the surrogate product soda and asserts it as
“The No. 1 Spirit of Leadership”
The surrogate advertisements from liquor companies intensified further through sponsorships of
movies, music shows, and other programs and attracting youth. For instance, Seagram’s
Royal Stag was promoted by sponsoring movie related activities and Indian pop music using,
The banner Royal stag Mega Movies and Royal stag Mega Music. In late 2001, the broadcasters
began airing socially responsible advertisements sponsored by liquor companies. By early 2002,

surrogate advertising of liquor brands had intensified like never before on satellite TV channels.
These advertisements attracted criticism from various people. There were numerous other
advertisements selling music cassettes, CDs, water, clothing, fashion accessories and sports
goods, many of them accused of being sexually provocative and offensive.
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. However the analyst opined that the ban
could turn out to be advantages for the domestic players.
In March 2001, as per the commitment to the WTO agreement, MNCs would have an
unrestricted license to sell their products. After the ban, these MNCs would not have access to
the quickest and most effective form of advertising. Some analyst argued that the ban would not
affect the established domestic players severely. It would only affect the new launches and new
brand building of these companies. The ban was also expected to improve the margins for these
players. The latest television ad for “AC Black Apple Juice” epitomizes so many things that are
wrong with surrogate advertising in India.
Most of the surrogate advertising is done pretty blatantly with the “harmless” product being
nothing more than a front for advertising the “harmful” brand. So you have various
liquor/cigarette manufacturers resorting to ingenuous ways to peddle their wares. Of course there
are a very few brands which start off as a surrogate brand, but over a period of time actually

become full-fledged brands in themselves. The “Wills Sport” clothing line from the
manufacturers of “Wills” cigarettes is one of those rare cases. But on the whole, surrogate
advertising is dedicated towards using an insignificant, “harmless” product to increase/maintain
awareness for their primary “harmful” brand. And that’s not an easy task.
For instance, how do you portray the essence of a whiskey or vodka or a cigarette using a bottle
of bottled water or a pack of apple juice? Similarly "Hum tum or mera Bagpiper". This Bagpiper
club soda advertisement, featuring cine celebrities, is similar to the earlier one for Bagpiper
whisky. 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.
1.4 THE CORPORATE STANDPOINT
The industry segment has its own standpoint in defense. The liquor lobby claims that everything
is in accordance to the Government regulations. "If a brand has equity, why shouldn't it be
allowed to advertise? Also, brand extension is an industry practice adopted by different product
categories," comments Alok Gupta of UB group. "When we advertise our products, we follow all
the guidelines," declares president, sales & marketing, RadicoKhaitan. They clarify that they
have stopped showing liquor advertisements and they are free to use the brand name for any
other products. Even the Confederation of Indian Alcoholic Beverages Companies (CIABC)
advertising code maintains that advertisement of products (real brand extensions) by the liquor
industry must be allowed.

From a layman's point of view, their claims seem to be justified. But this is a clear example of
taking advantage of the loopholes. There is a point to ponder. When they have stopped showing
liquor advertisements, why the same brand name and logo is used to promote products like
cassettes & CDs or mineral water? They could have assigned different brand names. It seems
they have a hidden agenda of highlighting the liquor or tobacco brand.
A similar tussle over the issue of surrogate advertisements in politics was raised in April 2004 on
the eve of LokSabha elections. Complaints of slanderous and offensive advertisements were
raised by two major political parties - BJP and Congress against each other. The issue became so
serious that the Supreme Court had to interfere in this affair. Finally on 13 April 2004, the Court
gave a verdict to curb smear advertisements on electronic media. By appointing Election
Commission as referee, the court has tried to put an end to surrogate advertising in politics.
According to the Cable Act under the ministry of information and broadcasting,- "no broadcaster
is permitted to show an advertisement which promotes directly or indirectly, sale or consumption
of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants…"
Now a new clause has been added under the act stating that "any advertisement for a product that
uses a brand name which is also used for cigarette, tobacco product, wine, alcohol, liquor or any
other intoxicant will not be permitted". Finally, in April 2005, the ministry resorted to a ban on
surrogate advertisements of liquor and tobacco products on television.
After this directive, the surrogate advertisements are seldom shown on television. Now the
companies will have to reframe their policies. But who will take care of print and outdoor media
is not certain. According to ASCI (Advertising Standards Council of India), surrogate

advertisements are harmful. Now it will be up to the ASCI to take up the matter with the
respective companies.
1.5 RECENT SURROGATE ADVERTISEMENTS
Officer’s Choice is the leading and well-known brand in whisky market. Actually this brand is
advertised by showing mineral water and soda, but all people can know what intention of that
advertisement is. It has shown that 'OC' is the brand of officers and for dynamic people.
Royal Challenge: Some cricketers are shown in this advertisement, at the same time music is
played. At the end of advertisement brand name 'Royal Challenge' is displayed in bold letters
with very small 'Music CDs'. It was also advertised with the help of mineral water.

IMPERIAL BLUE: “Men will be Men” Ad
ROYAL STAG: make it large
1.6 SURROGATE ADVERTISING: EMERGING TREND
A recent series of hoardings led me to delve into a very unique trend specific to Indian
advertising – Surrogate advertising… a trend which is fast catching up and has suddenly
attracted a lot of innovative and creative brains around the country. Reason? On one hand, the
government cannot allow public advertising of liquor companies. But ironically, liquor and
cigarette sales are the biggest revenue generators in terms of taxes and duties on these items.
That’s why an overt acceptance of the marketing in these sectors is not legally acceptable.
This has led to one of the biggest ironies of the country – Sales of these items are not banned, yet
advertising on the same has strictly been prohibited!

Talking about the market size and the different segments would not be pertinent to the discussion
(for the records, it is more than 100 million cases in India!). But what is the significance of this
trend vis-à-vis the entry points for new players and sustainability of existing ones?
Multinationals which would like to explore the Indian markets find the double-faced attitude of
the government as an impediment to their ventures. Since no policy has been formalized in this
regard, foreign companies continue to be skeptical about their entry. Domestically, it has led to
innovative ways and methods of spending on different media for Advertising from the
companies, where companies do more of a brand building exercise than direct advertising. Be it
promotions for brand building, or sponsoring events that can be mapped with the “showbiz” and
“glamour” of the brand, advertisers don’t leave many avenues to enhance their visibility. The
rule says “Advertisements which lead to sale, consumption and promotion of liquor should not
be allowed.” So, in Surrogate Marketing, a product which is different from the main product is
advertised, and has the same brand name as the main product. The product is called as
“surrogate” and advertising through this channel is called “Surrogate Advertising”! It may
include CDs, water, clothing, Apple juice, fashion accessories, sports goods or even events
sponsoring! These gimmicks, in turn, help the consumers build a strong equity of the parent
brand, and with the enhanced visibility, the equity of the brand would definitely become higher!
Liquor companies were forced to look at innovative ways of building their brands. With an
objective of enhancing brand recall, companies either engage into “surrogate advertising” or
displaying “socially responsible messages”. Again, out of the two viable options for Advertising,
Surrogate Advertising has been surrounded by controversies and legalities for a long time. There
is no clear policy from the government for obvious reasons and companies do not want to risk
their investments on Advertisements, which might not be screened after a while. So, a safer

choice available where companies can exercise their grey cells is advertising “socially
responsible” messages.
What are the other practices companies are looking at?
(a) Companies are getting involved in Sponsorships of events and have launched their own
awards for bravery or lifetime achievements!
(b) Internet advertising has become a lucrative area which has so far not been delved into. The
medium holds a lot of potential to enhance visibility, and companies have lately realized that
Catchy jingles have become the norm of the day to ensure that their brands have a high brand
recall.
(c) With restrictions in other marketing elements – in terms of pricing and distribution,
companies have ventured into another important element – Packaging. Innovative packaging
makes their brands stand out of the clutter, and most of the Multinationals are revisiting this
element in their brand portfolio.
Though the industry is not healthy for the young consumers, some processes and laws need to be
formalized and established in the system. Else, innovative workarounds and arm-twisting of laws
would be the norm of the day for the entire liquor industry!

CHAPTER 2
Literature Review
2.1 PREVALENCE OF ALCOHOL USE
India is generally regarded as a traditional ‘dry’ or ‘abstaining’ culture. A recent National
Household Survey of Drug Use in the country, the only systematic effort to document the nation-
wide prevalence of drug use, recorded alcohol use in the past year in only 21% of adult males.
Expectedly, this figure cannot mirror accurately the wide variation that obtains in a large and
complex country such as India. The prevalence of current use of alcohol ranged from a low of
7% in the western state of Gujarat (officially under Prohibition) to 75% in the North-eastern state
of Arunachal Pradesh. There is also an extreme gender difference. Prevalence among women has
consistently been estimated at less than 5% but is much higher in the North-eastern states.
Significantly higher use has been recorded among tribal, rural and lower socio-economic urban
sections.
The per capita consumption is 2 l/adult/year (calculated from official 2003 sales and population
figures). After adjusting for undocumented consumption (illicit beverages as well as tax-evaded

products), which accounts for 45–50% of total consumption , this is likely to be around 4 l, but
still low compared to that in wet nations. Spirits, i.e. government-licensed country liquor
(rectified spirit mixed with water at 33.3% v/v), Indian-made foreign liquors such as whisky,
rum, vodka and gin (42.8% v/v) and illicitly distilled spirits (of indeterminate composition)
constitute more than 95% of the beverages drunk by both men and women. Beer accounts for
less than 5% of consumption (70% of beer sales is dominated by strong beers at strengths over
8% v/v). Wine is a nascent but growing market.
2.2 THE HISTORICAL CONSTRUCTION OF AN AMBIVALENT DRINKING
CULTURE
This apparent tradition of abstinence may, however, be a construct of relatively recent origin.
The extensive records of diverse fermented and distilled beverages produced from fruits, grains
and flowers, archaeological evidence of distillation in ancient India [c. 200 BCE], the elaborate
sets of rules governing production, sales, taxation and public intoxication , lyrical descriptions of
ritual fiesta drinking by both sexes in secular literature , the early recognition of the medical
consequences of excess and the frequent admonitions against the use of alcohol by the priestly
elite do not support the notion of a long-standing dry culture. The period of rapid social change
during the colonial era transformed a society which, barring a segment of the brahminical
(priestly class) elite, had until then what appears to be a relatively relaxed attitude to drink. The
emergence of an urban middle class, participating in the rapid industrial development of the 19th
century, led to socio-economic empowerment of the lower rungs of the caste hierarchy. Changes
in dietary practices were one of the means adopted by the lower strata to acquire higher social
status. As a result of this phenomenon of Sanskritization , the growing middle classes embraced
upper-caste norms of vegetarianism and abstinence from alcohol .

In parallel, the abkari (excise) policies of the colonial government, restricting manufacture of
alcoholic beverages to licensed government distilleries, led to the rapid replacement of
traditional alcoholic beverages by mass-produced factory-made products, with greater alcohol
content and less variety, which were progressively more expensive due to ever-increasing
taxation. The enormous increase in the number of distilleries and the practice of auctioning rights
to distill and sell unlimited amounts of beverage alcohol led to increased consumption,
drunkenness and crime. This was increasingly viewed as an unpopular imposition of English rule
and drinking acquired the stature of a peculiarly English vice. Alcohol use came to be regarded
by the power elite as an atavistic trait of the primitive and the poor (tribals and socially backward
drinking to transcend their miserable existence) or a licentious affectation of the upper classes.
Side by side, Gandhi and the nationalist movement harnessed the temperance aspirations of the
middle classes into mass movements against drinking as a symbol of colonial oppression. Fired
by the belief that the Indian nation should be ritually pure, they evolved a demand for total
prohibition. The Constituent Assembly of independent India included prohibition as one of the
Directive Principles of state policy.
In practice, alcohol policy devolved to individual states to formulate their own regulations and
levy their own taxes. Most states derive 15–20% of their revenue from taxation on alcohol,
which is the second largest source of the states’ exchequers after sales tax. This has created an
‘ambivalent’ drinking culture—neither dry nor wet. Alcohol use attracts social opprobrium at the
same time that governments and alcohol manufacturers promote alcohol sales in pursuit of profit.
In several states renewal of retail licenses are contingent upon meeting stiff sales quotas which
are revised upwardly from time to time. The alcoholic beverage industry visibly influences the
political process, with contributions to political parties and in the form of inducements to voters

during elections. A few years ago, the Prime Minister designate of the country flew in for his
investiture ceremony in the private airplane of a prominent liquor manufacturer. Nevertheless,
alcohol use for the majority is still stigmatized.
2.3 ALCOHOL-RELATED PROBLEMS
Needless to say, this translates into significant alcohol-related morbidity. Alcohol-related
problems account for over a fifth of hospital admissions but are under-recognized by primary
care physicians. Alcohol misuse has been implicated in over 20% of traumatic brain injuries and
60% of all injuries reporting to emergency rooms. It has a disproportionately high association
with deliberate self-harm, high-risk sexual behavior, HIV infection, tuberculosis, esophageal
cancer, liver disease and duodenal ulcer.
Alcohol misuse wreaks a high social cost. A study from the state of Karnataka in South India
estimated that monetizable direct and indirect costs attributable to people with alcohol
dependence alone was more than three times the profits from alcohol taxation and several times
more than the annual health budget of that state.
All these studies on morbidity are regional estimates, but given the ubiquitous presence of
hazardous drinking patterns should be generalize across the country. However, there is
inadequate recognition that alcohol misuse is a major public health problem in India.
2.4 ECONOMIC LIBERALIZATION, SOCIAL CHANGE AND CHANGES IN
DRINKING PATTERNS
Indian society is currently undergoing another tectonic shift in its socio-economic fabric. The
impact of globalization and economic liberalization (exposure to satellite television, rapid socio-
economic transition and growing disposable incomes) appears to have influenced a widespread
attitudinal shift to greater normalization of alcohol use.

There has been a significant lowering of age at initiation of drinking. Data from Karnataka
showed a drop from a mean of 28 years to 20 years between the birth cohorts of 1920–30 and
1980–90. Alcohol sales have registered a steady growth rate of 7–8% in the past 3 years. The
largest expansion is seen in southern India, which has been driving most of this economic
growth. It is visibly focused on the non-traditional segment of urban women and young people,
with a noticeable upward shift in rates of drinking among urban middle and upper socio-
economic sections. The country liquor and whisky segment that earlier accounted for over 95%
of documented consumption has seen stagnation; the growth is in the non-traditional sectors of
beer, white spirits and wine. A new segment of consumers is forming and a novel, convivial
pattern is supplanting older drinking norms.
As the rising prevalence converges on the signature pattern of frequent heavy drinking, the
burden of health attributable to alcohol will mount dramatically. It is often assumed that non-
communicable diseases affect higher social classes disproportionately, as mortality levels fall
and national incomes increase. In low-income countries such as India the prevalence of alcohol
and tobacco use is higher among the poor, which increases the risk of cardiovascular disease,
cancer, liver disease and injuries among the poor relative to the better-off. There is also a strong
association between use of tobacco and alcohol, and impoverishment through borrowing and
distress-selling of assets due to costs of hospitalization.

2.5 THE OFFICIAL RESPONSE TO THE ALCOHOL PROBLEM
Prevention policies
Unfortunately, the official response remains focused on the visible tip of the alcohol problem—
people with alcohol dependence (around 4% of the adult male population)—instead of on the
emerging crisis due to hazardous drinking in more than 20% of the adult population. This is
reflected in the approach to alcohol control policies at federal and state levels. The focus is
exclusively on supply reduction (prohibition-centric) and tertiary prevention.
Every attempt by individual state governments to prevent misuse through prohibition has been
hastily reversed in the face of mounting revenue deficits, costs of policing smuggling from
neighboring states and resulting underground alcohol economies, notwithstanding evidence of
decreased consumption and improved indices of economic wellbeing (personal communication,
Excise Commissioner, Andhra Pradesh). In fact, most state governments have publicly recanted
the official commitment to prohibition, although it remains enshrined in the constitution.
Increased taxation has been used in other countries, to reduce consumption. In India, the impact
of such measures is weak as consumers have easy access to undocumented (illicit and excise-
evaded) alcohol, beyond the purview of taxation. There is also concern that alcohol as a
commodity is relatively price-inelastic and therefore an increase in its price would simply
increase the expense of alcohol consumers aggravating the economic hardship of their family
members, without necessarily reducing any of the other negative impacts. Regulatory laws
pertaining to hours of sale, sale to minors and drunken driving are observed in the breach. The
Indian Motor Vehicles Act specifies a blood alcohol cut-off of 30 mg% for drivers, which is

arguably one of the strictest in the world. However, a recent study in Delhicity across a calendar
month found that 40% of drivers were over the legal limit.
Treatment provision
The Government of India has funded 483 detoxification and 90 counseling centers country-wide
under the auspices of the National Drug Dead diction Program to treat people with substance
abuse disorders; 45% of people seeking treatment in these centers are for alcohol dependence.
Most of these centers are defunct as they received a one-time grant. Paradoxically, the rates of
help-seeking in these centers are the lowest in states with the highest prevalence of alcohol use,
and the overall efficacy of treatment program provided is low.
The evidence from India is substantial that the direction for policy is to focus on macro-
environments and make them more conducive to promoting health behaviors than bank on
individual behavioral change. Nevertheless, that is hardly likely as state governments publicly
recant their beliefs in prohibition and alcohol control, and try to extricate them from public
funding of health care. Private expenditure already accounts for 82% of the total expenditure on
health.
Public awareness of the alcohol problem
The popular media favor lurid descriptions of alcohol related violence and heroic accounts of
sporadic, short-lived anti-alcohol agitations by women's groups. These, paradoxically, serve to
marginalize the issue further and detract from a balanced public discourse. Because the subject is
of low priority funding for research is low; there is little by way of a body of published literature,
which can inform public policy, by projecting the socio-economic impact of alcohol misuse on a
national scale. Social aspect organizations of the major liquor companies advocating safe
drinking and sections of the mainstream English language media extolling the health benefits of

alcohol have invaded that space. In the absence of evidence that the sensible or safe drinking
paradigms can be universally applicable, there is apprehension that such moves may be counter-
productive or even be interpreted as invitations to drink among an abstinent population.
Hopefully, the impetus for a rational public health approach to alcohol policy will stem from the
efforts of non-governmental organizations, which are waking up to the sizeable negative impact
that harmful alcohol use has on the delivery of their health and development programs.

CHAPTER 3
Research Methodology
Research in general refers to the search of knowledge. One can also define research as a
scientific & systematic collection of information. In simple words research is the careful
investigation or enquiry of markets especially through search for new facts in any branch of
knowledge. Research Methodology is a way to systematically solve the research problem. It is
necessary for the researcher to know not only the research methods but also the methodology.
3. RESEARCH METHODOLOGY:
On defining the objective of the project, a plan was developed to gather information most
efficiently. Decisions were taken on the data sources, sampling plan, research tools. Research is
essentially a systematic enquiry seeking facts through objective verifiable methods in order to
discover the relationship among them to deduce from them broad principles of laws.
3.1 TYPE OF STUDY:
As the characteristics of a certain group the certain variables are to be determined, a descriptive
method is chosen for this study. The descriptive research portrays accurately the characteristics
of a particular individual, situation or a group.
The descriptive research includes surveys and fact enquiries of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. The
major characteristic of this method is the researcher has no control over the variables, he can
only report what has happened or what is happening.

3.2 SOURCE OF DATA:-
Primary data: it includes data collected directly from the customers in Delhi city so as to meet
the direct requirements of the investigation at hand.
Secondary data: it includes data from magazines, websites and reference books.
3.3 METHOD:
The research is done through a survey in the form of an online survey with about 13 main
questions as points of reference. The interaction is done with the target group at different places
in the Delhi city.
3.4 SAMPLING TECHNIQUE
Non –probability sampling was adopted to conduct the survey. Customers were selected on the
basis of ease of access. So convenience sampling was carried out for collecting primary data. In
this method a desired number of sample unit is selected deliberately or purposely depending
upon the object of the enquiry, so that only the important items representing the true
characteristics of the population are included in the sample.
3.5 SAMPLE SIZE:
A sample size of 150 respondents was interviewed through the interactive methodology.
The questions related to various brand preferences and their purchase intention was posed.

3.6 DATA COLLECTION METHOD
Data collection has been done through a very useful & popular survey method. The survey was
conducted through online survey to study the impact of surrogate advertisements on the
customers buying behavior to buy the surrogate products. To understand each individual
response, this method is better than other methods like telephonic interviews, personal interview
questionnaire etc. Because this method gives the researcher enough flexibility to design and ease
to data gathering which is relevant for research.
3.7 DATA COLLECTION INSTRUMENT
The above survey method was used for the research; online survey was conducted with the help
of a structured questionnaire.
3.8 STATISTICAL TOOLS USED FOR ANALYSING THE DATA
Percentage method
Graphical Representation using Figures& Bar diagram
CRITERIA TAKEN FOR SAMPLES
1. The sample size of 150 is for representation of the population.
2. Respondents have no bias.
3. Only people who know surrogate advertisements are taken as samples.
3.9 LIMITATIONS OF THE STUDY
Study is restricted to the geographical limits of Delhi. Limited period of survey and limited
sample size (150). There were few responses which were vague or not answered at all to get
complete and accurate information required for the study.

Chapter 4
Date analysis and interpretation
4. Demographic profile of respondents
➢ Age
18-25 93 62%
25-40 41 27.3%
41-70 16 10.6%
TOTAL 150 100%
62%
27%
11%
Age
18-25 25-40 41-70

➢ Gender
Male 82 55%
Female 68 45%
TOTAL 150 100%
Data analysis
4.1 Most seen Media used by the people for watching the advertisements
55%
45%
Gender
Male Female
65%
4%
20%
7%
4%
Advertisement Media
TV print media internet mobile radio

Inference
The question is to find out the effective means of media advertising through which television
advertising is more reachable than other media.
4.2 Awareness about surrogate advertisements
Inference
We can see that equal numbers of people are aware and unaware of the concept of surrogate
Advertisements.
4.3 How often people watch the advertisements of alcohol
45%
45%
10%
Awareness
Yes No May be
23%
48%
19%
5% 5%
Frequency of Advertisements
regular occasional rare not at all don't remember

Inference
The question aims to find out how often customer watches an advertisement shows that
advertisements should be more effective to make them watch regularly instead occasionally.
4.4 Purchase of surrogate Product
Inference
Figure shows surrogate products have sufficient market by surrogate advertisements.
4.5 Which Advertisement is remembered most by the people?
10%
30%
43%
17%
Purchase of Surrogate Product
never occasionally often regularly
18%
13%
11%37%
11%
10%
Advertisements Remembered
bacardi imperial blue royal challenge kingfisher mcdowells officer choice

Inference
Among above data people remember Bacardi and kingfisher the most, as it is shown
continuously through several media. The advertisements shown will depend on the geographical
area they belong to.
4.6 What made the people to remember the Advertisement?
Inference
People remember advertisements due to celebrities which are more reachable and found to be
easily recalled.
4.7 Opinion of people about the requirement of Surrogate Advertisement
39%
30%
9%
12%
10%
Market Survey
celebrities creativity voice wordings logo familiarity
21%
51%
26%
2%
Required or Not
yes no may be other

Inference
Companies need to find out more enticing surrogate advertisements to reach the customers.
4.8 People evaluation of Surrogate Advertisement
Inference
More areas to be explored as to make surrogate advertisement since it creates negative ideas
in the minds of the public as majority treat them to be misguided and boring.
4.9 Opinion of people about the Surrogate Advertisement which are banned in India
14%
20%
17%
43%
6%
Evaluation
entertraining boring informative misguiding disturbing
39%
29%
20%
11%
1%
Banning of Advertisements
strongly agree agree neither agree/disagree disagree strongly disagree

Inference
As this question is adopted to know the public opinion on banning, from the data we can see that
most of them agree on banning of these advertisements.
4.10 Impact of Surrogate Advertisement on sales of Surrogate Products
Inference
From the data we can conclude that surrogate advertisements do have an impact on surrogate
products to an extent.
4.11 Product Recalling of Surrogate Advertisements
8%
15%
24%39%
14%
Impact
definitely will not effect probably will not effect undecided
probably will effect definitely will effect
26%
39%
19%
11%
5%
Recalling
definitely most probably occasionally not at all don't remember

Inference
People remember the Advertisements well and their brand names in surrogate
advertisements are effective in customers’ mind.
4.12 Surrogate Advertisements induce to try the original products
Inference
Surrogate advertisements are not effective in nature as they don’t induce the public to
purchase the product.
4.13 Liquor Advertisements are ethical compared to other products in India
56%
7%
33%
4%
Induce
never occasionally sometimes regularly often
13%
47%
25%
15%
Liquor Ads are Ethical Compared to Other
Products
disagree neutral agree strongly agree

Inference
In public opinion these advertisements are needed; liquor advertisements are accepted and ethical
when compared to other products in India.
4.14Chi square testing
4.14.1 Determining awareness of the concept of surrogate advertising through the
surrogate advertisements that are seen
Ho: Surrogate advertisements that are seen do not determine awareness about the concept
H1: Surrogate advertisements that are seen determine the awareness about the concept
OBSERVED FREQUENCY
Yes No TOTAL
YES 64 5 69
NO 56 8 64
MAYBE 11 6 17
TOTAL 131 19 150

EXPECTED FREQUENCY
YES NO TOTAL
YES 60.26 8.74 69
NO 55.893 8.106 64
MAYBE 14.846 2.153 17
TOTAL 131 19 150
CHITEST = 0.007819
p value <0.050.
007819< 0.05
Inference: The p value of Chi-Square is 0.007819 which is less than 0.05.Hence the Null
hypothesis is rejected.
Analysis: It is clear from the above inference that surrogate advertisements that are seen do
determine awareness about the concept of surrogate advertising.

4.14.2 Does recalling the original product after seeing surrogate ad actually induces
viewers to buy the banned product?
H0: Surrogate ad does not induce viewers to buy the banned product
H1: Surrogate ad induces viewers to buy the original banned product
OBSERVED FREQUENCY
Never Occasionally Sometimes Regularly Often TOTAL
definitely 19 2 15 1 2 39
Most probably 30 3 23 1 1 58
Occasionally 15 4 5 3 2 29
Not at all 11 1 1 1 2 16
Don’t remember 5 1 1 1 8
TOTAL 80 10 45 7 8 150

EXPECTED FREQUENCY
Never Occasionally Sometimes Regularly Often TOTAL
Definitely 20.8 2.6 11.7 1.82 2.08 39
Most probably 30.933 3.866 17.4 2.706 3.093 58
Occasionally 15.466 1.933 8.7 1.353 1.546 29
Not at all 8.533 1.066 4.8 0.746 0.853 16
Don’t remember 4.266 0.533 2.4 0.373 0.426 8
TOTAL 80 10 45 7 8 150
CHITEST = 0.212854424 p value > 0.05 0.212854424 > 0.05
Inference: The calculated value of Chi-Square is 0.212854424 which is more than 0.05.Hence
the Null hypothesis is accepted.
Analysis: It is clear from the above inference that surrogate advertisements don’t induce the
viewer to buy the original banned product.

CHAPTER 5
FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Findings of the study
Objective taken - 1.To study the consumers awareness towards surrogate advertisements.
The study identifies that some of the respondents were not aware of the concept earlier, but the
questionnaire has enabled them to understand the concept, while some of the respondents were
aware of the concept earlier itself. From analysis of questionnaire it is found that even though
consumers lack the level of awareness, they are familiar with the concept of surrogate
advertising.
Objective taken – 2.To understand the consumers perception towards surrogate
advertisements and its products.
Questionnaire consisted of question where respondents were asked their opinion on surrogate
advertisements (if they are ethical/unethical/should be banned) and it is concluded that majority
of the public view surrogate advertisements as unethical practices and agree that they should be
banned. Viewers have negative insight towards these advertisements as they are perceived to
misguiding, boring.
Objective taken – 3.To evaluate the influence of surrogate advertisement on consumers
buying decision.
By analyzing the primary data it is known that surrogate advertisements are successful in

creating brand recall of the hidden product in the advertisement and from chi square test it is
understood that these advertisements induce customers to buy the original banned product which
shows that the advertisements are effective. Surrogate advertisements need to be telecasted
regularly through the media of TV to have an impact and create a set in the minds of consumer.
Objective taken – 4.To “RECOMMEND” suitable strategies to the organization to make
the surrogate adv ethical and effective.
• Company should give prior importance to customer’s preference while doing liquor surrogate
advertisements.
• Public has negative perception towards surrogate advertisements as they are considered
unethical, so companies have to find a way to reverse their view to positive.
• There is nothing illegal in promoting of such products in the society provided that the
marketer doesn‘t violate the rules and regulations of the government framed in the of the
interest of the general public.
• The intention of marketers should be to promote their banned products but not to
harm the health of its consumers.
5.2 CONCLUSION
This study was conducted to know the knowledge and perception of customers about surrogate
advertisements in the Delhi city and analyze the factors for knowing the surrogate advertisement
have any impact on the consumers buying behavior for buy the surrogate products. It got
understood that the brand is able to make the customers to purchase the product. During the
study a sample of 150 respondents were analyzed that customer’s purchasing style has any
relation with the surrogate advertisements shown through Media and to know what interest
elements did the customer find in them in order to use of surrogate products. The knowledge of

customer, their preferences and knowledge are analyzed. The data were filled by questionnaire
method.
It’s mainly though the brand name of established brands these products are made to meet the
company requirements, ie; to make maximum mileage from the existing brands. It’s through the
existing brands of companies were that existing in the market. Moreover, the knowledge and
awareness level about surrogate advertisements were also low, but when explained them,
everybody are known and thus selected for sampling purpose. The main reasons given by the
respondents for not knowing about most of surrogate advertisements are they are not exposed to
see that many times So, with this research it was concluded with an underline that effective
surrogate advertisements induce the customer to purchase surrogate products.

BIBLIOGRAPHY
WEB REFERENCES
1. http://www.academia.edu/16499143/SURROGATE_ADVERTISING_THE_AW
ARENESS_AND_DOES_IT_HELPS_TO_PROMOTE_CORE_PRODUCT_ITS
ELF_IN_INDIAN_CONTEXT
2. http://www.mbaskool.com/business-articles/marketing/14340-surrogate-
advertising-hidden-yet-visible-products.html
3. http://www.ukessays.com/essays/marketing/surrogate-advertising-and-its-impact-on-
the-mind-marketing-essay.php
4. http://www.slideshare.net/shampm88/a-project-report-on-the-impact-of-surrogate-
advertisement-in-surrogate-products-at-ogilvy-mather
5. https://en.wikipedia.org/wiki/Surrogate_advertising
6. http://www.indianmba.com/faculty_column/fc266/fc266.html
7. http://www.thehindubusinessline.com/2003/05/23/stories/2003052300090900.htm
BOOKS REFERRED
1. George E. Belch & Michael A. Belch (2010) .Advertising & Promotion – An
Integrated Marketing Communications Perspective. 7th
Edition.
2. Philip Kotler, Kevin Lane Keller.(2006). Marketing Management. Pearson
Education.12thEdition.

ANNEXURE
NAME…
QUALIFICATION…
Please supply the following details about yourself:
Age:
Sex: male Female
1) From which media you used to watch the most in advertisements? (Tick one)
a) Print media b) Radio c) TV d) Internet e) Mobile
2) Are you aware about surrogate advertisements?
a) Yes b) No
3) Do you see any Advertisements of alcohol?
a) Regular b) Occasional c) Rare d) not at all e) Don’t remember
4) Do you buy the surrogate products like soda; water etc. after seeing their
Advertisements on the media?
a) Never b) Occasionally c) Often d) Regularly

5) From the following alcoholic brand’s surrogate advertisement, u sees the most? (Tick
one)
a) Bacardi b) Imperial blue c) Royal challenge d) kingfisher e) McDowell’s
f) Officers choice
6) What made you to remember that product? (Tick one only)
a) Celebrities b) Creativity c) Voice d) Wordings
e)Logo
7) Do you think that advertisement of such product is required?
a) Yes b)no
8) How will you evaluate such advertisement?
a) Entertaining b) Boring c) Informative d) Misguiding e) Disturbing
9) What is your opinion about such advertisement of product which has banned in India?
a) Strongly Disagree b) Disagree c) Neither Agree or disagree d) Agree
e) Strongly agree
10) Do you think that the Advertisements on the media will have any Impact on the
sales of surrogate products?
a) Definitely will not affect b) Probably will not affect c) Undecided
d) Probably will affect e) Definitely will affect
11) Do you recall the original product while looking at the surrogate advertisements?
a) Definitely b) Most probably c) Occasionally d) Not at all

e) Don’t remember
12) Does the ad induce you to try the original product?
a) Never b) Occasionally c) Sometimes d) Often e) Regularly
13) What you feel, whether liquor advertising and its marketing when
compared to any products is ethical in India …?
a) Strongly Disagree b) Disagree c) Neutral d) Agree
e) Strongly agree

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