Seminar Seminar on on

surrogate advertisingsurrogate advertising

Guided By: Submitted By:Mr. M. S. Pahwa Heena PandyaAssociate Professor MBA 2nd Sem. Account ing & Finance PACIFIC INSTITUTE OF MANAGEMENT

WHAT IS SARROGATE ADVERTISMENT?WHAT IS SARROGATE ADVERTISMENT? DEFINITION:-DEFINITION:-

In simple words when you advertise a product such as liquor or cigarettes that In simple words when you advertise a product such as liquor or cigarettes that is banned from being advertised, by using another product (with the same is banned from being advertised, by using another product (with the same name) such as audio cds by the name of Bacardi blast etcname) such as audio cds by the name of Bacardi blast etc

duplicating the brand image of one product extensively to promote another duplicating the brand image of one product extensively to promote another product of the same brand product of the same brand

ORIGIN OF SURROGATE ORIGIN OF SURROGATE ADVERTISEMENTSADVERTISEMENTSNeed of alternative path of advertising of banned productNeed of alternative path of advertising of banned product

The problem occurs when brand extension is carried out in response to the ban The problem occurs when brand extension is carried out in response to the ban on advertisement of one product category. In this case, the companies launch on advertisement of one product category. In this case, the companies launch other products with the same brand name for the purpose of reminding their other products with the same brand name for the purpose of reminding their old customersold customers

EXAMPLE:-EXAMPLE:- "HUM, tum or mera Bagpiper". This Bagpiper club soda advertisement, "HUM, tum or mera Bagpiper". This Bagpiper club soda advertisement,

featuring cine celebrities, is similar to the earlier one for Bagpiper whisky featuring cine celebrities, is similar to the earlier one for Bagpiper whisky

PRESUMPTIVE ANALYSIS OF THE PRESUMPTIVE ANALYSIS OF THE ISSUSEISSUSE

Advertising is a well-known method of promotion of a product or idea Advertising is a well-known method of promotion of a product or idea

Advertisements which lead to sale, consumption and promotion of liquor should not be Advertisements which lead to sale, consumption and promotion of liquor should not be allowedallowed . .

So, in Surrogate Marketing, a product which is different from the main product is So, in Surrogate Marketing, a product which is different from the main product is advertisedadvertised , , which has the same brand name as the main productwhich has the same brand name as the main product . . The product is called The product is called as “as “surrogatesurrogate” and advertising through this channel is called “Surrogate Advertising”! ” and advertising through this channel is called “Surrogate Advertising”!

Duplicate brand may include CDs, water, clothing, Apple juice, fashion accessories, Duplicate brand may include CDs, water, clothing, Apple juice, fashion accessories, sports goods or evene ventss ponsoring!sports goods or evene ventss ponsoring!

CONCEPTUAL CONNOTATIONCONCEPTUAL CONNOTATION •Surrogate advertising carries several responsibilitiesSurrogate advertising carries several responsibilities

•Advertising informs the public so that they can be aware of products Advertising informs the public so that they can be aware of products

and make informed choices among different products or brands. and make informed choices among different products or brands.

Advertising also benefits businesses in assisting them to sell their productsAdvertising also benefits businesses in assisting them to sell their products

•The point to note is that there is nothing surrogate about advertising. There is The point to note is that there is nothing surrogate about advertising. There is something surrogate about ethics and values and a sense of right and wrongsomething surrogate about ethics and values and a sense of right and wrong

•One of the big values of advertising is that it introduces people to new things that One of the big values of advertising is that it introduces people to new things that

they may otherwise not know aboutthey may otherwise not know about

IMPORTANCEIMPORTANCE

Marketing of banned productsMarketing of banned products

using surrogate promotional activities, to keep their brands alive in using surrogate promotional activities, to keep their brands alive in the minds of customersthe minds of customers

Helps to companies to remain in market by advertising their banned Helps to companies to remain in market by advertising their banned product by surrogate advertising product by surrogate advertising

surrogate advertising gsurrogate advertising gives the integrated nature of markets, brand ives the integrated nature of markets, brand promotion has become an elaborate exercise, often extending across promotion has become an elaborate exercise, often extending across national boundariesnational boundaries

BACKGROUND AND BACKGROUND AND EVALUTION EVALUTION

Surrogate advertising is the most way to advertise the banned product like liquor, Surrogate advertising is the most way to advertise the banned product like liquor, cigarette, tobacco etccigarette, tobacco etc

Brand extension is an act of bypassing the advertisement ban. Brand extension is an act of bypassing the advertisement ban.

Advertising does not function in a vacuum but in a market environment where several Advertising does not function in a vacuum but in a market environment where several forces like consumer needs, business interests and government regulations are at work forces like consumer needs, business interests and government regulations are at work

Advertising is a powerful force in terms of its persuasiveness and functions a critical Advertising is a powerful force in terms of its persuasiveness and functions a critical social rolesocial role

Here many ways to surrogate products that are as: TV, Internet, Hoardings, billboards Here many ways to surrogate products that are as: TV, Internet, Hoardings, billboards etcetc

DIMENTIONAL MAGNITUDEDIMENTIONAL MAGNITUDEAdvertisers must decide what is right and what is wrongAdvertisers must decide what is right and what is wrong

Effective action required the developmentEffective action required the development

and application of evidence-based recommendations and strong and application of evidence-based recommendations and strong

political commitmentpolitical commitment

Cannot advertise without permissionCannot advertise without permission

Government make some rules for surrogate advertismentGovernment make some rules for surrogate advertisment

EXAMPLESEXAMPLESWhen the bear baron Vijay Mallya started a new airline, he named it When the bear baron Vijay Mallya started a new airline, he named it

Kingfisher, presumably to promote his beer brand. Some even believe Kingfisher, presumably to promote his beer brand. Some even believe thatthat

the very concept of having an airline was to promote Kingfisher beer. the very concept of having an airline was to promote Kingfisher beer.

Today, it has become as important a brand for the airline as his beer, Today, it has become as important a brand for the airline as his beer, if not if not

more. Mallya's UB also advertises the Kingfisher bottled water, whichmore. Mallya's UB also advertises the Kingfisher bottled water, which

probably does not leave the confines of his many households. The probably does not leave the confines of his many households. The logo onlogo on

the bottle instantly reminds one about his beerthe bottle instantly reminds one about his beer..

Imperial blue is a whisky but it is advertised by Imperial blue is a whisky but it is advertised by the name Imperial blue soda.the name Imperial blue soda.

FUTURE SCOPEFUTURE SCOPE

Business ConcernsBusiness Concerns

Key Success Factors Key Success Factors

Demand DriversDemand Drivers

FutureFuture

LIMITATIONSLIMITATIONSThe government has banned advertising and publicity for Alcohol and TobaccoThe government has banned advertising and publicity for Alcohol and Tobacco

Which means that companies have to stay away from mainstream media and adopt Which means that companies have to stay away from mainstream media and adopt methods and ways by which they can keep their brands top of mind and also maintain methods and ways by which they can keep their brands top of mind and also maintain their market sharetheir market share

The Government of India banned advertising of alcoholic beverages and cigarettes vide The Government of India banned advertising of alcoholic beverages and cigarettes vide Rule of the Cable Television Networks Rules 1999Rule of the Cable Television Networks Rules 1999

State governments like Delhi have been issuing advertisements warning of stringentState governments like Delhi have been issuing advertisements warning of stringent

action if any company is caught flaunting the ban action if any company is caught flaunting the ban

Its notice to TV channels was clearly a blanket ban on surrogate adsIts notice to TV channels was clearly a blanket ban on surrogate ads