Surrogate Marketing

Surrogate Marketing

Indira Institute Of Management Pune

Surrogate Marketing

Content
1 Surrogate marketing Concept
2 History of Surrogate marketing
3 Advantages And Disadvantages
4 Impact on Stakeholders and Business environment
5 Business perspective of surrogate marketing
6 Surrogate marketing and Government
7 Need of the Hour
8 Conclusion
9 References
Surrogate Marketing

Indira Institute Of Management Pune

Surrogate marketing Concept

Definition

Duplicating brand image of one product extensively, in order to promote, another

product of the same brand.

1.

It consist of :
The sponsoring of sports/cultural/activities.

2.

It is dedicated towards the use of an insignificant, harmless product to

increase/maintain awareness for their primary harmful brand.

3.

Surrogate advertisements are misleading, false and dishonest in many cases

Surrogate Marketing

Indira Institute Of Management Pune

History of Surrogate marketing

1.

History
originated in Britain.

2.

.
.
.

Surrogate Advertising In India

Surveys resulted that liquor ads had direct influence on Consumers purchase behavior
Advertisements for liquor and cigarettes has been banned since 1995
So companies usually either go for brand extension and promotion of events .

Surrogate Marketing

Indira Institute Of Management Pune

Typical Alcoholic/Narcotic brands and products promoted by

surrogate marketing
Brand
Bagpiper

Communicating product
Water and soda, cassettes, CDs

Main Product Category

Whisky

McDowells
Red and White
Teachers
Kingfisher

Water and soda

Bravery awards
Bravery awards
Calendars and mineral water

Whisky
Cigarettes
Whisky
Beer

Pan Parag
Johny walker
Royal challenge

Pan masala
Soda
Golf accessories and mineral
water
Water rafting and gliding

Gutkha
Whisky
Whisky
Cigarettes

Apparels, Accessories
Cassettes and CDs
Apple juice

Cigarettes
Rum
Vodka

502 Pataka Tea

Darting kids
Apple juice

Bidi
Beer
Whisky

Four square
white
Wills lifestyle
Bacardi
Smirnoff,
Aristocrat
502 Pataka
Haywards 5000
AC Black

Surrogate Marketing

Indira Institute Of Management Pune

Typical Cases

1.

Panparag pan masla

i. Annual sale value of Plain pan parag

ii.

Annual cost of Advertisement

63.7 million

244.6 million

According to (ASCI),surrogate
ads formed 5 per cent of the
total Indian advertising
industry i..e. Rs 21,000crore

Surrogate Marketing

Indira Institute Of Management Pune

Typical cases

1.

Promotion by brand extension and events

Brand extension :
Launching new products with common brand name is known
as brand extension

Surrogate Marketing

Indira Institute Of Management Pune

Typical cases

1.

Promotion by brand extension and events

Surrogate Marketing

Indira Institute Of Management Pune

Typical cases

1.

Promotion by brand extension and events

Surrogate Marketing

Indira Institute Of Management Pune

Typical cases

Promotional Events
'Bacardi Blast
1 In 1998, Bacardi had a successful concept,
'Bacardi Blast',
large party with DJs and VJs,
and crowds of 5,000 to 10,000.
Video :

Surrogate Marketing

Indira Institute Of Management Pune

Sponsorship of sports events and cultural events by

tobacco and alcohol industry.
Manikchand, manufacturers of gutkha (chewing tobacco),
patronized the Filmfare awards ceremony
Wills (brand of ITC, a subsidiary of British American Tobacco)
used to sponsor Indian cricket team/matches
Tennis tournaments were sponsored by Gold Flake cigarette
(brand of Godfrey Phillips India Ltd. -GPI, a subsidiary of Phillip
Morris). Boat racing was sponsored by Four Square cigarettes
(brand of GPI).
Charms, a cigarette
brand sponsored the
Spirit of freedom
concert, a musical
event

Surrogate Marketing

Indira Institute Of Management Pune

Advantages and Disadvantages

Advantages

:
It helps the company to generate sales for banned
products.
It keeps on reminding consumers about the banned
products indirectly.
If nobody can advertise,then the threat of
competition from new players or new launches by
competitors is minimized.
Disadvantages:
It beats the purpose of ban on advertisement of
harmful products.
it is harming the society a lot because children
cannot distinguish between the banned products and
the advertised product
Surrogate Marketing

Indira Institute Of Management Pune

Impact on Stakeholders and Business environment

Positive

Negative

Economic

Government generates revenue

Company ends up with high cost of

advertising

Profiting media by paying high

advertising cost
Social

Dont effect on others who are

unaware
Focused to selective target segment

Misleading to younger generation

Leads to healthy environment

Challenging the ethical way of doing

business
Leads to promote unhealthy products

Legal

Company doesnt breaks the legal

spectrum

Surrogate Marketing

Indira Institute Of Management Pune

Business prospective of surrogate marketing

1.
2.
3.
4.
5.
6.
7.

Indian Liquor Industry with estimated market value of INR 15700 Cr according
ASSOCHAM
is growing at 30% over the last two years.
Estimated value in 2015 is 1.4 lac cr
It is a legitimate business in the country.
Generates great revenue to the government
Surrogate advertisement is done for positioning of brands
Ban on surrogate Ads proven to be advantageous for domestic players
since there is less threat of losing existing brand share to the new players

Surrogate Marketing

Indira Institute Of Management Pune

Surrogate marketing and Government

The Drift between the industry and Government
1.

Government feels that promoting these brands has influence on young minds

2.

In 2005 Health minister Anbumani Ramadoss alleged that the tobacco industry was
directly paying cinema stars to smoke in films

Government notifications
3.
4.
5.

I&B ministry recently says the product should be available in a "reasonable

quantity.
should be available in "substantial number of outlets"
The expenditure on advertising for the product should not be disproportionate to the
actual sales turnover of the product

Surrogate Marketing

Indira Institute Of Management Pune

Need of the Hour

Possible Solutions
1.

to develop an unambiguous plan of action.

2.

stricter measures of surveillance to identify such advertisements would be put in

place.

3.

guideline for differentiating acceptable and unacceptable forms of advertising for

surrogates.

4.

transparent laws banning surrogate advertisements for different products under a

single brand name

5.

More power to ASCI

6.

Create consumer awareness

7.

legal actions against those agencies which design surrogate advertisements without
complete knowledge of original product

Surrogate Marketing

Indira Institute Of Management Pune

Conclusion
Conclusions

Surrogate advertisements are not only misleading, but also false and dishonest in
many cases.

This method is used by the corporates because of the ambiguous laws .

As tobacco and liquor business are legislated yet RESTRICTED business in India
and provides huge revenue to government , economic factors should be consider.
while designing the laws and their implementation.

Surrogate Marketing

Indira Institute Of Management Pune

References
References
http://en.wikipedia.org/wiki/Surrogate_advertising

http://
www.scribd.com/doc/49779605/banning-liquor-surrogate-advertising-marketing

http://www.freestyle-marketing.co.uk/advertising/what-is-surrogate-advertising.html

http://marketingbrainstorm.wordpress.com/2011/04/14/surrogate-marketing-in-indiaa-snapshot
/

http://marketingsaga.blogspot.in/2008/10/surrogate-marketing.html

http://www.youtube.com/watch?v=u91C415nf_I

Surrogate Marketing