This document provides an overview of surrogate advertising in India. It begins with definitions and background on surrogate ads, noting that they promote unrelated products using established brand names, as a way to advertise products like alcohol that are otherwise banned. The document then outlines the history and examples of surrogate ads in India, relevant regulations and court decisions, and the impact on consumers and companies. It examines the cable television act banning direct liquor/tobacco ads and the trend of surrogate ads filling that gap. Overall, the summary analyzes the topic of surrogate advertising in India from multiple angles.

1. PROJECT WORK
A STUDY ON IMPACT OF SURROGATE
ADVERTISEMENTS IN SURROGATE
PRODUCTS
SUBMITTED BY: Rohan Garg (15103082)

2. PREFACE
The followingreport includes detailedresearch on
"SURROGATE ADVERTISEMENTAND ITS IMPACT ON
SURROGATE PRODUCTS". The report will guide you about :
-What is surrogate advertisement at first hand?
-What kind of surrogate advertisements are being currently
used?
-What has been the role of the government until now?
-Variousacts and impositionsthat have been imposed
-What is the impact on:
a)Consumer
b)the product
c)the company itself
The primary aim of this study will be to make the
audienceaware of the clever tricks being deployedby the
companies to advertise their products those cannot be
advertised directly due to the laws by the government.
Also the report includes case of studies of two
companies:
a)ITC
b)ROYAL CHALLENGE

3. ACKNOWLEDGEMENT
I would like to express my deep gratitude to each and
everyone who hashelped me to compile this work.
At first I would like to utilize this opportunityto extend
huge thanks to my professor Mrs.Surbhi Aggarwal for
allottingme this work and helping me throughout be it her
help in choosing the topic or providingthe necessary
guidelineswithout which this work would not have been
completed.
This acknowledgementwould be incomplete without
the mention of my mates who have been with me
throughout this work and contributeda great deal in each
and every matter that is presented in this report.
Also a great thanks to my parentsfor the
encouragement and support throughout my work.

4. DECLARATION
This is to report that the project report entitled" A
STUDY ON IMPACT OF SURROGATE ADVERTISEMENTSIN
SURROGATE PRODUCTS" is a work done by the following
contributors Aseem Baveja, Sachin Gupta,Navkiranjit
Kaur,Rohan Garg and Palak Mahajan.
Date: (SIGNATURE)
Rohan Garg

5. OBJECTIVES OF OUR STUDY
Surrogate advertisement resemble the original
product or could be a different product altogether, but
using the establishedbrand of the originalproduct. The
trend of surrogate advertisement gathered momentum
with several Mediasaroundworldwide. As heated debates
are going over the issue of surrogate advertising;whether
it is needed or not, by doing the study expects to throw
light on the subject. Being these advertisements attracted
criticism from various peopleas they are not only
misleading, but also false and dishonest in many cases..
And mainlyconcerned with knowing the knowledge of
publicabout surrogate advertisement.
To summarize our objectives we have the following
points:
 To study the loopholesin present advertisement laws in
reference to the detailedcase studies of two companies
and with some other examples.
 To study the present government laws in this sector
 To find out the impact of such advertisements -be it on
the consumer's psychology or on their health

6. METHODOLOGIES OF STUDY
The followingsources have been used to bring out the
detailedresearch on surrogate advertisement:
 http://www.lawinfowire.com/ articleinfo/surrogate-
advertising
 http://www.dnaindia.com/india/report-delhi-high-court-
seeks- information-on-surrogate-ads- for-liquor-tobacco-
products- 2015970
 http://www.theglobaljournals.com/ijar/file.php?val=October
_ 2013_1380721401_7fc04_77.pdf
 http://www.thehindu.com/ todays-paper/tp-
national/government-bans-surrogate-
advertisements/article1221897. ece
 http://www.ascionline.org/ images/pdf/asci_code2new.pdf
 http://timesofindia. indiatimes.com/india/SC-bans-
surrogate-ads-for-tobacco-
products/articleshow/21257960. cms
 http://www.icmrindia.org/free% 20resources/casestudies/ B
anning%20Liquor%20Surrogate%20Advertising1.htm
 http://www.lawinfowire.com/ articleinfo/surrogate-
advertising
 http://www.livemint.com/Page/ Id/2.2.943837785
 http://www.slideshare.net
 http://www.theijm.com/vol2issue1/141.pdf
 http://indianresearchjournals.com/pdf/IJMFSMR/2013/Dece
mber/17.pdf

7. INTRODUCTION
Research is the scholarly or scientific practice of
gathering existing or new information in order to enhance one's
knowledge of a specific area. Research has many categories, from
medicine to literature.
"Marketing research is the function that links the
consumer, customer, and public to the marketer through
information - information used to identify and define marketing
opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and improve
understanding of marketing as a process. Marketing research
specifies the information required to address these issues, designs
the methods for collecting information, manages and implements
the data collection process, analyzes, and communicates the
findings and their implications."- American Marketing Association
(AMA) - Official Definition of Marketing Research.
.
INDIAN MARKETING & ADVERTISING SCENARIO
The Indian marketing & advertising sector have shown a
tremendous growth since the early 90’s with several progressive
plans implemented by the Indian government. The government
then decided to open the Indian market for foreign investors and
allowed foreign equity. That paved the way for the opening the
floodgates of the boom in these sectors which is still shining high.
Marketing & advertising (M&A) are the tools which can be
used by an organization to relate itself to its target audience at a
large scale. The 'Grand Old Man' of Indian advertising’,
R.K.Swamy, was instrumental in bringing advertising to the Indian
map at the age of 50.
Several big names such as Ogilvy & Mather, JWT and
Mudra have established large business houses and have made a
name for them in this large growing M&A market.
There are several benefits attached with the promotion of
a company using the medium of marketing & advertising. It is

8. economical, easy-to-use, appeals to a large public group and it
provides the company an opportunity to be on a more interactive
and more informative platform. The prospective customers can
get the required information and also purchase the products of
the company by using credit cards or pay-pal (online payment).
This has proved to be beneficial for both the companies and the
customers as that helps in the growth of the market overall and
ensures availability of right products at the right time and that too
economical.
Many of the Indian M&A companies are earning their
deserved name and fame by being conferred with the honor of
market-leaders and several others are on an emulating spree to
achieve the feat of their peers. Lowe India was recently conferred
at the recently concluded Asian Advertising Awards by Media
Magazine Awards. Ogilvy & Mather recently won the “Pink slip”
recognition by the Times Of India Group for its unmatched work
skills.
The current growth of 18-20 per cent in M&A is among
one of the highest among various industries in India. Nowadays
famed global agencies are getting attracted towards the growing
Indian market and the Indian economy is slowly but steadily
opening its doors to World market capitalism. The 10000-crore
M&A industry accounts for about 33 percent of the total industry
profits in the Asia-Pacific belt. The recent NASSCOM-McKinsey
report indicated that India is believed to build a $17-billion web-
based Industry by the end of 2008. Outdoor Advertising in India is
one of the most opted modes of brand promotion. Indian Outdoor
advertising industry comprises of a major share in the overall
advertising industry.
SURROGATE ADVERTISEMENT AND ITS HISTORY
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

9. 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. The sponsoring of
sports/cultural/leisure events and activities also falls under the
purview of surrogate advertising. 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 advent of Surrogate Advertising in India was during 1994 /
1995 after Cable Television Networks (Regulation) Act 1995 read
with Cable Television Networks Rules, 1994, came into force, which
banned direct liquor, tobacco and cigarette advertisements.
Reason for banning advertisements of these commodities is because
their usage is detrimental to the health of people. However, since
these commodities generate high revenues and a way had to be
found to make the commodities available to general public without
directly advertising and circumventing law, the said concept
“Surrogate Advertising” came into being and various reputed
companies started advertising “surrogate products” such as audio
cassettes, drinking water, soda, juices, etc., under the same brand
name under which they advertised prohibited products /
commodities. Advertising is done through these surrogate products
simply to ingrain name of the brand in the mind of consumers of
liquor & cigarette which would increase sales of commodities and
ultimately result in revenue generation to the companies.
Few examples from tobacco industry of companies engaged in
Surrogate Advertising in India are: Red & White Bravery Awards,
Wills Lifestyle Clothing Line, Four Square White Water Rafting and
Godfrey Phillips Bravery Awards.
A detailed example list is as shown below:

10. ACTION TAKEN BY MINISTRY OF INFORMATION & BROADCASTING
MINISTRY
In June 2002, the Information and Broadcasting Ministry of India
(“I&B Ministry”) ordered television broadcasters (“TV channels”) to
ban telecast of two surrogate ads of liquor brands, viz McDowell’s
No. 1 and Gilbey’s Green Label. The I&B Ministry also put other
brands like Smirnoff Vodka, Hayward’s 5000, Royal Challenge
Whiskey and Kingfisher beer on ‘watch list. The surrogates used by
these advertisements ranged from audio-cassettes, CDs and
perfumes to golf accessories and mineral water.
By August 2002, I&B Ministry banned 12 advertisements. 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 Networks (Regulation) Act 1995 and
Cable Television Networks Rules, 1994. As a result, Zee and STAR

11. stopped telecasting surrogate advertisements; Aaj Tak and Sony
soon followed suit.
RELEVANT LEGISLATION & REGULATIONS IN INDIA
1. The Cable Television Networks (Regulation) Act 1995 (“CTNA”) and
Cable Television Networks Rules, 1994 (“CTNR”) -
a) On February 25, 2008, Government issued a notification amending
CTNR to the effect that Rule 7(2)(viii)(a) read as follows – “No
advertisement shall be permitted which promotes directly or
indirectly production, sale or consumption of cigarettes, tobacco
products, wine, alcohol, liquor or other intoxicants.” The said 2008
notification amending CTNR, completely closed the window of
opportunity for Surrogate Advertising provided to liquor and
cigarette companies.
b) However, subsequently on February 27, 2009, I&B Ministry issued
a notification amending the said Rule to allow advertisements of
products which shared a brand name or logo with any tobacco or
liquor product with several caveats viz: (i) the story board or visual of
the advertisement must depict only the product being advertised
and not the prohibited products in any form or manner; (ii) the
advertisement must not make any direct or indirect reference to
prohibited products; (iii) the advertisement must not contain any
nuances or phrases promoting prohibited products; (iv) the
advertisement must not use particular colours and layout or
presentations associated with prohibited products; (v) the
advertisement must not use situations typical for promotion of
prohibited products when advertising the other products.
c) I&B Ministry issued a directive on June 17, 2010 (“Directive”), to all
TV channels to comply with Rule 7(2) (viii) (a) of CTNR and that the
notification dated 27.02.2009 cannot be cited as an excuse to
telecast advertisements of products in violation of Rule 7(2) (viii) (a)
of CTNR, as the guidelines under the amended rule have not been
framed. I&B Ministry further directed the TV Channels to including
news and current affairs channels to stop carrying any advertisement

12. of a product on their Channel that uses brand name or logo which is
used for cigarettes, tobacco products, wine, alcohol or other
intoxicants and strictly follow the Rule 7(2) (viii) (a) of CTNR. Any
violation of this Directive and provision ASCI Code shall entail
stringent action in future including suspension or prohibition of
broadcast.
2. Advertising Standard Council of India (“ASCI”): ASCI which is a
voluntary self-regulatory body, has through its Code laid down basic
guidelines prohibiting Surrogate Advertising. Section 6 of Chapter III
(dealing with the promotion of products that are harmful or
hazardous to society at large) states -”Advertisements for products
whose advertising is prohibited or restricted by law or by this Code
must not circumvent such restrictions by purporting to be
advertisements for other products the advertising of which is not
prohibited or restricted by law or by this Code….”.
The ASCI Code also lays down factors to be considered in deciding
whether an advertisement is a direct or indirect one.
3. Cigarettes and Other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce, Production,
Supply and Distribution) Act, 2003 (“COTPA”)
Section 5(1) of COTPA states that “No person engaged in, or
purported to be engaged in the production, supply or distribution of
cigarettes or any other tobacco products shall advertise and no
person having control over a medium shall cause to be advertised
cigarettes or any other tobacco products through that medium and
no person shall take part in any advertisement which directly or
indirectly suggests or promotes the use or consumption of cigarettes
or any other tobacco products.”
Further, Rule 2 of the COTPA Rules 2005, clearly sets out that the use
of a name or brand of Tobacco Products for marketing, promoting or
advertising other products would constitute a form of “indirect
advertisement”.

13. 4. Cigarettes and other Tobacco Products (Prohibition of
Advertisement and Regulation of Trade and Commerce, Production,
Supply and Distribution) Rules, 2004:
Section 2 (e) of COTPA Rules states that “indirect advertisement
mentioned in section 5(1) of the Act means (i) the use of a name or
brand of tobacco products for marketing, promoting or advertising
other goods, services and events; (ii) the marketing of tobacco
products with the aid of a brand name or trademark which is known
as, or in use as, a name or brand for other goods and service; (iii)the
use of particular colours and layout and/or presentation those are
associated with particular tobacco products; and (iv) the use of
tobacco products and smoking situations when advertising other
goods and services.”
DECISIONS OF VARIOUS COURTS OF INDIA
a) The Indian Government passed COTPA in 2003, before becoming a
party to the FCTC (Framework Convention on Tobacco Control). In
2005, the Ministry of Health and Family Welfare exercised the
powers granted to it by COTPA by promulgating rules on tobacco
advertising. These rules included restrictions on advertising allowed
at point-of-sale, such as requiring a health warning, limiting the size
of the advertising, and prohibiting lighting or pack images. The rules
also included a definition of “indirect advertising” (Rule 2(e) of the
COPTA Rules). The tobacco industry challenged the Rules in the
Mumbai High Court, and the Court issued an interim order staying
the implementation of the Rules on March 27, 2006.
In 2013, a petitioner alleged that interim stay on Rule 2(e) of 2005
Rules resulted in rampant “surrogate advertisements” of tobacco
products and thus the Supreme Court banned surrogate
advertisement of tobacco products by lifting a seven-year-old interim
order of the Bombay high court on 22nd July 2013.
b) A PIL was filed against the IPL team “Royal Challengers” due to its
obvious connection with “Royal Challenge”, a liquor brand promoted
by the same company. However, Supreme Court pointed that since

14. the team was named “Royal Challengers” and not “Royal Challenge”;
only those people who are alcoholics / drinkers will be attracted by it
and the non-drinkers / non-alcoholics will not be affected. The Court
exercised its judicial acumen in this decision as it liberally interpreted
the concept in light of the facts before it.
c) A public interest litigation had been filed in the Delhi high court on
September 3, 2014 seeking a ban on surrogate advertising of tobacco
and liquor products. However, this matter is still sub-judice.
CURRENT STATUS
It is very evident from the aforesaid existing law and regulations and
recent Supreme Court judgment in 2013 that any direct or indirect
form of advertising of the prohibited products in India is not
permitted in India. Hence, Surrogate Advertising, being an indirect
form of advertising prohibited products is also not permitted in India.
While the Government notification dated February 27, 2009 allows
advertisements of products which shares a brand name or logo with
any tobacco or liquor product, it at the same time also states that no
reference direct or indirect could be made to the prohibited products
in any form. Further, I&B Ministry has also made it very clear vide its
Directive dated June 17, 2010 that the Government notification
dated February 27, 2009 cannot be cited as an excuse to telecast
advertisements of products in violation of Rule 7(2)(viii)(a) of CTNR.
Though the television broadcasters are regulated by I&B Ministry
and their failure to comply with the aforesaid Directive and/or any
other guidelines of I&B Ministry will expose them to stringent action
of I&B Ministry including cancellation / suspension of their
broadcast, it has been observed that the manufacturing companies /
brands of such prohibited products continues to promote their
prohibited products by way of Surrogate Advertising on billboards,
hoardings, out of home media properties and other street
furniture(s), inspite of advertising on such foregoing properties being
regulated by ASCI Code.

15. Thus, there is a greater need for more stringent action to be taken by
the Government in respect of Surrogate Advertising of prohibited
products in all forms of mode, media and format, until the prohibited
products are completely banned from being manufactured and sold
in India.
WHY COMPANIES ADOPT TO SUCH METHODS
 There are a number of reasons for companies to use
surrogate advertising. One of the most common reasons
is to circumvent a ban on direct advertisements of
particular products. Many nations have laws restricting
alcohol and tobacco advertising, for example, so
companies use surrogate advertising to market their
products. Techniques used might include advertising
another product with the same brand name, sponsoring
community events, issuing public service announcements,
or sponsoring sports team. All of these activities
technically do not violate the ban on direct advertising,
but they still get consumers familiar with the company’s
branding.
 Surrogate advertising may also be used when companies want
to cultivate an image of social responsibility. For example,
many health advocates have criticized advertisements for
sweet treats aired during children’s cartoons. A company might
pull outright advertising during these time slots and instead air
a series of public service announcements about eating a
balanced diet, with the announcements coincidentally bearing
the company’s branding.
INDUSTRIAL ARGUMENT

16. The foremost defense which came from liquor, tobacco
and other banned product is that if any brand has got goodwill say
equity then why it shall not be allowed to market its product. Further
surrogate advertising also known as brand extension is permitted to
ample of products then why surrogate advertising shall be
questioned in case of liquor, tobacco and pan masalas. The
Confederation of Indian Alcoholic Beverages Companies (CIABC) has
continuously been taking side of surrogate advertising. Other
argument on this point is that if government is so very eager to
refine the society by limiting the sale of tobacco and liquor then why
not ban the sale of product itself instead of prohibiting its
advertisement.
Another industrial argument is that those who consume
tobacco and liquor, they will continue consuming it even in the
absence of advertisement, but sometimes less or no information
does a greater harm. The consumer in absence of appropriate
information fails to make proper decision and sometimes end up
with inferior quality. For example in absence of proper information it
is very difficult to distinguish between more refined and less refined
tobacco.
IMPACT ON CONSUMERS
1. Majority of the respondents are familiar with the concept of
surrogate advertisements & hence show high level of awareness
towards it.

17. 2. Concealed ideas of the co‘s to make higher profits with the
improvement in the brand image have made them to restore to the
newest trend of surrogate ads.
3. Endorsement of surrogate products by the well-known celebs
coupled with Hi Fi music inculcates impulsive behavior in the
consumer decision making process.
4. Manufacturers of surrogate products can use television as a
suitable media to broadcast the surrogate ads; whereas it‘s during
the live cricket matches or the reality shows that have proved to be
the appropriate time to make their consumers watch such
advertisements.
5. Viewers (consumers) have positive insight toward such ads as
they perceive them to be highly entertaining & informative in nature.
6. Finally consumers feel that the trend of surrogate advertisements
have positive impact on company sales resulting in increased
consumption rate of their prohibited products.
According to research done by the Salaam Bombay Foundation, 3260
children between the age of 12 to 17 years fro municipal and private
schools were asked to fill out a self-administered questionnaire.
When asked to recall slogans of any tobacco company or brand…
 71% recalled Manikchand – Oonche log, oonchi pasand
 12% recalled Goa – Yahan bhi Khilate hain, whan bhi, Goa No 1
 2% recalled Sanket
 0.4% recalled Shimla
 15% recalled other brands
When asked to associate slogans with brands 63% could
associate the slogan while 37% could not. What kind of a
message will a child get from, Oonche log, oonchi pasand

18. Some of the observations learnt through this research is that,
Gutkha advertising has had a deep impact on the minds of
children although it has been banned since August 2002.
As children cannot easily disassociate Manikchand Water
from Manikchand Gutkha, tobacco manufacturing companies
should not be allowed to use surrogate advertisements. TV and
radio are the hotspots as to where these messages are
broadcasted to the children, the future of our country.
In the nutshell, surrogate advertisement serve their purpose of
enlightening consumer about the ban products and hence they have
been very successful in publicizing about the alcohol and tobaccos.

19. CASE STUDY ON ITC
INTRODUCTION
ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West
Bengal. Its diversified business includes five segments: Fast-Moving
Consumer
Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business &
Information Technology. Established in 1910 as the Imperial Tobacco
Company of India Limited, the company was renamed as the Indian Tobacco
Company Limited in 1970 and further to I.T.C. Limited in 1974. The periods in
the name were removed in September 2001 for the company to be renamed
as ITC Ltd.
Its diversified business includes five segments Fast Moving Consumer Goods
(FMCG), Hotels, Paperboards & Packaging, Agri Business & Information
Technology.
MAJOR PRODUCTS
ITC was formed on 24 August 1910 under the name of Imperial Tobacco
Company of India Limited and the company went public on 27 October 1954.
The earlier decades of the company's activities centered mainly
around tobacco products. In the 1970s, it diversified into non-tobacco
businesses. But cigarettes and tobacco still continue to be the major selling
products of this company. Ironically, apart from these products which are
extremely hazardous and fatal, the company is also a major producer and
supplier of few essentially vital and wholesome goods and supplies some of
which have been stated below:
Foods: ITC's major food brands include Kitchens of India; Aashirvaad, Mint-o,
gum-o, B natural, Sunfeast, Candyman,Bingo! and Yippee!. ITC is India's

20. largest seller of branded foods with sales of over Rs. 4,600 crore in 2012-
13. It is present across 5 categories in the Foods business namely Staples,
Snack Foods, Ready-To-Eat Foods, Juices and Confectionery.
Lifestyle apparel: ITC sells its products under the Wills Lifestyle and John
Players brands. Wills Lifestyle was accorded the ‘Superbrand’ status and
John Players was included in the top 10 ‘Most Trusted Apparel Brands 2012’
by The Economic Times.
Personal care products include perfumes, haircare and skincare categories.
Major brands are Fiama Di Wills, Vivel,Essenza Di Wills, Superia and Engage.
Stationery: Brands include Classmate, PaperKraft and Colour
Crew. Launched in 2003, Classmate went on to become India's largest
notebook brand in 2007.
Safety Matches and Agarbattis: Ship, i Kno and Aim brands of safety
matches and the Mangaldeep brand of agarbattis (Incense Sticks)
Hotels: ITC's Hotels division (under brands including WelcomHotel) is India's
second largest hotel chain with over 90 hotels throughout India.]
ITC is also
the exclusive franchisee in India of two brands owned
by Sheraton International Inc. Brands in the hospitality sector owned and
operated by its subsidiaries includeFortune Park Hotels and WelcomHeritage
Hotels.
Paperboard: Products such as specialty paper, graphic and other paper are
sold under the ITC brand by the ITC Paperboards and Specialty Papers
Division like Classmate product of ITC well known for there quality .

21. Packaging and Printing: ITC's Packaging and Printing division operates
manufacturing facilities at Haridwar and Chennai and services domestic and
export markets.
Information Technology: ITC operates through its fully owned subsidiary ITC
Infotech India Limited, which is a SEI CMM Level 5 company.
SALE OF CIGARETTE
ITC Ltd sells 80 percent of the cigarettes in India, where 275 million people
use tobacco products and the total cigarette market is worth close to $6
billion (around Rs.65,000 crore). ITC's major cigarette brands include Wills
Navy Cut, Gold Flake Kings, Gold Flake Premium lights,Gold Flake Super
Star,Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular,
Citric Twist, Mild & Ultra Mild), 555, Silk
Cut, Scissors,Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke
& Royal. ITC's equity shares are listed on Bombay Stock Exchange, National
Stock Exchange of India and Calcutta Stock Exchange. The company's Global
Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.
Shareholders (as on 31-March-2013) Shareholding
Foreign companies (mainly British American Tobacco
Company)
30.54%
Foreign Institutional Investors (FII) 19.68%
Banks, Financial Institutions, Insurance Companies and 33.44%

22. Mutual Funds
Bodies Corporate 04.91%
Public and Others 10.59%
GDRs 00.30%
Total 100.00%
BAN ON SMOKING:
Smoking in public places was prohibited nationwide from 2 October 2008
under the Prohibition of Smoking in Public Places Rules, 2008 and COTPA. The
nationwide smoke-free law pertains only to public places. Places where
smoking is restricted include auditoriums, cinemas, hospitals, public transport
(aircraft, buses, trains, metros, monorails, taxis) and their related facilities
(airports, bus stands/stations, railway stations), restaurants, hotels, bars,
pubs, amusement centres, offices (government and private), libraries, courts,
post offices, markets, shopping malls, canteens, refreshment rooms, banquet
halls, discothèques, coffee houses, educational institutions and parks.
Smoking is allowed on roads, and inside one's home or vehicle. Then Health
Minister Anbumani Ramadoss was quoted as saying, "Smoking on the road or
the park will save others from the wrath of passive smoking".]
On the
contrary, Savitha SK, deputy health officer, BBMP, quoted "For those who
have any doubts, road is a public place. Smoking in public places, including
roads, is banned by law," Smoking is also permitted in airports, restaurants,
bars, pubs, discothèques and some other enclosed workplaces if they provide

23. designated separate smoking areas. Anybody violating this law will be charged
with a fine of ₹200. The sale of tobacco products within 100 yards of
educational institutions is also prohibited. However, this particular rule is
seldom enforced.
CONTROVERSIAL EXAMPLE:
ITC, India's leading cigarette maker, is offering help to those who want to quit
smoking. It has begun selling a nicotine gum called "KwikNic", as an
alternative to cigarettes. It works on the principle of Nicotine Replacement
Therapy (NRT) and helps reduce the urge for tobacco. NRT involves the use of
products that provide low doses of nicotine but do not contain the toxins
found in smoke.
ITC, India's leading cigarette maker, is offering help to those who want to quit
smoking. It has begun selling a nicotine gum called "KwikNic", as an
alternative to cigarettes. It works on the principle of Nicotine Replacement
Therapy (NRT) and helps reduce the urge for tobacco. NRT involves the use of
products that provide low doses of nicotine but do not contain the toxins
found in smoke.
nalysts claim ITC's NRT products are unlikely to dent its cigarette sales. "These
are at best long-term alternatives and ITC's gross sales are too huge for any
new product like this to have any significant impact on its mainstream
products in the short to medium term," says Amnish Aggarwal, Senior Vice
President, Motilal Oswal Securities. In 2012/13, ITC reported gross sales of Rs
25987.20 crore from cigarettes.
It appears a win-win proposition for ITC. It sells cigarettes to smokers. And

24. NRT gums to those trying to quit. If some resume smoking again, ITC's
cigarettes are still available.
ANALYSIS
Although government has banned advertisement of commodities like
cigarette because these products are injurious to health. However, since
these commodities generate high revenues and a way had to be found to
make the commodities available to general public without directly advertising
and circumventing law.
Considering a particular example, A petition filed in 1999 before the High
Court of Delhi by the Voluntary Health Association of India, where a ban was
sought on the sponsorship of the Indian cricket team by the Wills brand of
cigarettes manufactured by ITC. The appearance of the ‘Wills’ logo on the
sports apparel worn by the cricketers facilitated the repeated telecasting of
that logo to millions of viewers.

25. CASE STUDY ON ROYAL CHALLENGE
INTRODUCTION
Royal Challenge, commonly referred to by the abbreviation RC, is a brand of Indian
whisky, manufactured by United Spirits Ltd (USL), a Diageo Group company. Itwas
launched in the early 1980s. In theUnited States; Royal Challenge is referred to as
"spiritwhisky".Besides India, RoyalChallenge is sold in several other countries including
the Middle East and the United States.
Its diversified business includes Liquor & Spirit Industry,A team in Indian Premiere
League (IPL),Music Cd’s and Hotel Industry.
MARKETING STRATEGIES
In an early advertising campaign, Shaw Wallace described its products as "India's most
wanted" and "The competition's envy, Shaw Wallace's pride".[12]
In December 2003,
Royal Challenge launched a new advertising campaign, "What's life without Royal
Challenge". The new campaign soughtto portray the Royal challenge drinker as a
"young contemporary urban male who exudes relaxed confidence". The campaign,
created by Orchard, was estimated to cost Shaw Wallace ₹ 120-140 million.[13]
Royal
Challenge has often sponsored golf events like the CII Golf championship, the Indian
Golf Championship and the Indian Open Golf, and also associated itself with the
sport.[14]
In 2004, Bangalore-based GolfwareIndia PvtLtd was licensed to manufacture
and distribute golf clubs and accessories with the Royal Challenge logo.[15]
The Indian Premier League (IPL) team Royal Challengers Bangalore was named after and
is sponsored by RoyalChallenge.[16]
The team was firstunveiled on 12 March 2008.[17]
A
PIL was later filed by a Faridabad-based residentKrishan Kumar Aggarwal,[18]
who
alleged that the UB Group was seeking to promote its liquor brand under the garb of
the IPL team. TheSupreme Court dismissed the petition on 29 April 2008.[19]
Royal
Challenge also partners other IPL teams (Pune Warriors, DelhiDaredevils and Kings XI
Punjab) and the Sahara Force India Formula 1.[20]
In February 2012, American United Beer & Spirits (UBS), the exclusive United States
importer and distributor of the UB Group, signed Indian actress-turned-
enterpreuner Pooja Batra to representRoyal Challenge whisky in the US.[2]
SALEOF LIQUOR

26. Royal Challenge lead the premium whisky segment, by volumeof sales,
throughoutIndia, during the 1980s and 90s. They held this position until
2004.[21]
In the2003-04fiscalyear ended 31 March 2004, RoyalChallenge
become the firstpremium whisky to cross onemillion cases in a year. It
accounted for 65% of the 1.5 million casepremium whisky segmentof Indian
Made Foreign Liquor (IMFL) industry.[22]
The following table shows theannual sales of Royal Challenge:
Year Sales (inmillioncases)
2002-03 0.85[23][24]
2006 1.1[25]
2007 1.2[25]
2008 1.3[25]
2009 1.3[25]
2010 1.2[25]
2011 1.4[25]
2012 1.7[26]
ANALYSIS
Although somestate governments like Gujrathavebanned sales of Liquor and
commodities becausethese products areinjurious to health. However, sincethese
commodities generate high revenues and a way had to be found to make the
commodities available to general public without directly advertising and circumventing
law.

27. Considering a particular example, Royal Challenger is alleged to promote its brand via the
medium of its sponsered IPL team"Royal Chalengers Bangalore". Also A PIL was later
filed by a Faridabad-based residentKrishan Kumar Aggarwal,[18]
who alleged that the UB
Group was seeking to promoteits liquor brand under the garb of the IPL team.
TheSupreme Courtdismissed the petition on 29 April 2008.[19]
RoyalChallenge also
partners other IPL teams (PuneWarriors, DelhiDaredevils and Kings XI Punjab) and the
Sahara ForceIndia Formula 1.
Royal Challenge continues to be in the race by using cd's or mineral water or golf
accessories as their products which are being advertised through advertisements which
come under surrogateadvertisements.

28. CONCLUSION
After this elaborate research on surrogate
advertisements, we would like to conclude that surrogate
advertisements continue to be an effective method of promoting the
products that come under the products that have been banned to be
directly advertised by the government.
The case studies very well describe the fact that the sale
of products has constantly increased and the advertisement of the
actual product under the shadow of some other products.
The products that companies want to be advertise might
be the one which are not good for consumer consumption but the
method adopted by the company is not actually unethical or wrong
because at the end of the day what matters is the product that is
directly coming into the picture i.e. the one that is coming in front of
our naked eyes which actually is not wrong be it the music cd's or the
mineral water or the golf accessories or the soda.
We can't actually blame the companies even after
considering the actual motive of the organization. As stated earlier
the government of India stand at the point that both the direct or
indirect promotion of some banned products is banned.
At the end there is very well a conflict between the
government's decisions and the viewer's view point so the issue still
stands midway between being ethical and unethical where unethical
side is a bit heavy.

29. SUGGESTIONS
1. As the people see surrogate advertisements , through different
medias , but they seek more innovative way of such
advertisements.
2. The effective surrogate advertisements will create
considerable change in companies sales, So there is huge
opportunity for liquor companies to develop advertisement
strategies and make more sales.
3. Surrogate products creating some negative impacts ethically; if
companies able to convert that negative impacts to positive ,
they can take the mileage of surrogate advertisements.
4. Companies need to introduce various advertisement strategies
depending on different geographical areas .
5. Company have to give prior importance to customer’s
preference while doing liquor surrogate advertisements.
6. Companies are generally doing advertising in soda, mineral
water, music cd’s etc. they can go for more diversified
advertisements like sponsoring Indian Premier League etc.....