1. Surrogate Marketing
Surrogate Marketing

2. 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

3. 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.
 It consist of :
1. 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

4. Indira Institute Of Management Pune
History of Surrogate marketing
1. History
originated in Britain.
1. 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

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Typical Alcoholic/Narcotic brands and products promoted by
surrogate marketing
Brand Communicating product Main Product Category
Bagpiper Water and soda, cassettes, CDs Whisky
McDowells Water and soda Whisky
Red and White Bravery awards Cigarettes
Teachers Bravery awards Whisky
Kingfisher Calendars and mineral water Beer
Pan Parag Pan masala Gutkha
Johny walker Soda Whisky
Royal challenge Golf accessories and mineral water Whisky
Four square white Water rafting and gliding Cigarettes
Wills lifestyle Apparels, Accessories Cigarettes
Bacardi Cassettes and CDs Rum
Smirnoff, Aristocrat Apple juice Vodka
502 Pataka 502 Pataka Tea Bidi
Haywards 5000 Darting kids Beer
AC Black Apple juice Whisky
Surrogate Marketing

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Typical Cases
1. Panparag pan masla
i. Annual sale value of Plain pan parag 63.7 million
ii. Annual cost of Advertisement 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

7. 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

8. Indira Institute Of Management Pune
Typical cases
1. Promotion by brand extension and events
Surrogate Marketing

9. Indira Institute Of Management Pune
Typical cases
1. Promotion by brand extension and events
Surrogate Marketing

10. 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

11. 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

12. 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

13. 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
Don’t effect on others who are unaware Misleading to younger generation
Focused to selective target segment Challenging the ethical way of doing business
Leads to healthy environment Leads to promote unhealthy products
Legal
Company doesn’t breaks the legal spectrum
Surrogate Marketing

14. Indira Institute Of Management Pune
Business prospective of surrogate marketing
1. Indian Liquor Industry with estimated market value of INR 15700 Cr according
ASSOCHAM
2. is growing at 30% over the last two years.
3. Estimated value in 2015 is 1.4 lac cr
4. It is a legitimate business in the country.
5. Generates great revenue to the government
6. Surrogate advertisement is done for positioning of brands
7. 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

15. 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
1. I&B ministry recently says the product should be available in a "reasonable
quantity“.
2. should be available in "substantial number of outlets"
3. The expenditure on advertising for the product should not be disproportionate to the
actual sales turnover of the product
Surrogate Marketing

16. 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

17. 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

18. 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-india-
a-snapshot/
 http://marketingsaga.blogspot.in/2008/10/surrogate-marketing.html
 http://www.youtube.com/watch?v=u91C415nf_I
Surrogate Marketing