Surrogate Advertising

Surrogate Advertising-Enforced Innovation: An inside-out overview of Indian Liquor and Tobacco industry Presented by: SUBHABRATA BANERJEE MBA – DAY INDIAN INSTITUE OF SOCIAL WELFARE AND BUSINESS MANAGEMNT ROLL NO: 107/MBA/080004 REGN NO: 19779 of 2001-2002 Acknowledgement I deem it a privilege and pleasure in submitting the dissertation paper “Surrogate Advertising-Enforced Innovation : An inside-out overview of Indian Liquor and Tobacco industry” which is in partial fulfillment of the requirements of MBA program of Indian Institute of Social Welfare and Business Management, Kolkata.

I would like to extend my sincere gratitude and profound thanks to Dr. S. N Roy (Head of the Department, MBA (Day), Dr. Tanima Roy (Faculty, MBA (Day)) and Dr. Archana Sharma (Faculty,MBA(Day)) for their guidance, co-operation and valuable feedback extended to me to complete the dissertation paper. I also would extend my gratitude towards Mr Shubhadeep Nag(Brand partner, rediffusion D Y & R), Mr Kaustuv Bhadra (Vice-president and Branch-head, Mudra communications,kolkata) and Mr Sudarshan Banerjee (Vice-president and branch-head, Genesis Advertising, Mumbai) for their valuable suggestions which enriched this study.

Besides this, I would also like to place on record my thanks towards the number of people that I met during the course of research study. Due to constraints of space, it would not be possible to name all of them. Date SUBHABRATA BANERJEE ABSTRACT We live in a complex world where we respond in extreme ways to what we view as extreme pressures. The ethical debate rages around surrogate mothers. Yet it is difficult to deny they perform a great service for those who use them.

Closer home, surrogate advertising has been around ever since someone decided that certain things were probably not good in the interests of the community at large. It is really difficult to express an opinion, leave alone pass judgment on matters that are personal. There is also the question of personal rights and many of them are happily enshrined in Constitutions of progressive nations the world over. Who is anyone to decide whether I can sip my daily quota of what started off as eau de vie, or the water of life and then rapidly transformed itself into its present day avatar, Scotch?

People have spent years perfecting a heavenly blend of spirits, and imparted to it the smoky flavour that could come only from the peat of Scotland and the pristine Highland water. Several others have made methode champenoise into a fine art and have succeeded in bottling the very soul of France in green bottles that, when uncorked, seem to scream celebration. Who has the right to decide if I can deeply inhale the rich aroma and full-bodied flavour of carefully rolled Virginia tobacco? Every time I nonchalantly put one of those sticks to my lips I feel I have mounted a wild mustang and I am riding down the lonely mountain trails of Colorado.

Forget the hype. Forget the imagery we have all grown up with. The Government has the right, invested in it by you, to decide whether you will get transported to the chalky fields of Champagne or the misty heights of Scotland, or for that matter the Wild West. And the Government in its wisdom has decided that advertising for tobacco and liquor is a big no-no. So does that mean you lose the right to tipple or smoke? Certainly not. The wisdom of the Government extends only to banning the advertising of tobacco or liquor. Not to the manufacture or marketing of these supposedly deadly substances.

It is legal to manufacture liquor and cigarettes or bidis. It is legal to sell cigarettes at every roadside stall, even to unsuspecting children. It is illegal to advertise it. And that is precisely why you have to live with surrogate advertising. The literal meaning of ‘Surrogate advertising’ is copying the brand image of one product to promote another product of the same brand. It can be defined as the strategy used by manufacturers and advertisers to promote a product surreptitiously, the advertisement of which is banned by the law of the land.

In this study, I have tried to found out the impact of Surrogate Advertising not only on the brand-recall but also on the consumer psychological traits which affect our daily lives. OBJECTIVE OF THE STUDY The basic objective of this study is not only to understand the loopholes of the acts or measure the effect of surrogate advertising on brand recall, but to gain an inside-out overview of how effective surrogate advertisings are in Indian scenario as far as tobacco and liquor industry in concerned. METHODOLOGY

The understanding of the subject took not only secondary research or help of books, white papers and journals, but also for the better understanding, primary research had been conducted to get the first-hand understanding of the consumers. Questionnaires were made as qualitative as possible so that every respondent enjoys the space of expressing his or her own opinion. Those opinions were then mapped on a Brand-performance matrix, being precise, a brand-scorecard which allowed the comparison between the original brand and the surrogate brand.

To conclude, expert opinion is also taken from nearly 10 senior people in advertising and media, as they have seen the makeover and had been a part of it Surrogate Advertising: Enforced Innovation 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-a-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 sceptical 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 Ads, 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. Origin of Surrogate Advertising

As a reaction to the directive of Government, the liquor ; tobacco majors sought other ways of endorsing their products. They have found an alternative path of advertising through which they can keep on reminding their liquor brands to their customers. They have introduced various other products with the same brand name. Launching new products with common brand name is known as brand extension, which can be carried out for related products (e. g. : Tata Salt and Tata Tea) or unrelated products (e. g. : Tata Tea and Tata Indica).

Prima facie, there is nothing wrong with brand extension. 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 other products with the same brand name for the purpose of reminding their old customers. Heavy advertising is done so that the customers do not forget their liquor ; tobacco brands, for which advertisements are banned. The advertisements for such new products are placed under the category of “Surrogate Advertisements”.

Their only objective is to compensate the losses arising out of the ban on advertisements of one particular product (i. e. liquor). According to dictionary – surrogate means substitute. Many of us have come across this word in connection with surrogate motherhood. This time it has come in a new avatar – “Surrogate Advertisement”. This is a loophole challenging the Government’s action. However, the companies can claim that the order is being implemented and advertisements of liquor are banned, but the objective of the Government behind imposing the ban is not fulfilled.

It’s a new weapon of Proxy War. Literally surrogate advertisement means duplicating the brand image of one product extensively to promote another product of the same brand. The ban: Cable TV Networks (Regulation) Act, 1995, (CTNRA), Rule 7(2)(viii)(A) of the Advertising Code states that “no advertisement shall be permitted which promotes, directly or indirectly, the production, sale or consumption of cigarette, tobacco products, wine, alcohol, liquor or other intoxicants. ” SURROGATE ADVERTISEMENTS PROMOTED BY LIQUOR AND TOBACCO INDUSTRY

The liquor industry is a prominent player in this game. Few surrogate advertisements shown in print, electronic and outdoor media are – Bagpiper soda and cassettes ; CDs, Hayward’s soda, Derby special soda, Gilbey green aqua, Royal Challenge golf accessories and mineral water, Kingfisher mineral water, White Mischief holidays, Smirnoff cassettes ; CDs, Imperial Blue cassettes ; CDs, Teacher’s achievement awards etc. These products bear exactly the same brand name and logo, which we had seen earlier in liquor advertisements.

It was little surprising to know that liquor giants like McDowell’s and Seagram’s have entered into new segments like cassettes & CDs, mineral water, sports accessories etc. Later it was found that the basic aim of these surrogate advertisements was to promote their liquor brands like beer, wine, vodka etc. This brand extension is an act of bypassing the advertisement ban. A similar trend is followed by companies making Cigarettes, Paan Masala and Gutkha. Few examples of surrogate advertisements in this category are – Red & White bravery awards, Wills lifestyle, Four Square white water rafting, Manikchand awards etc.

Though a ban has been imposed on advertisements endorsing tobacco products, this industry has resorted to surrogate advertising a few years ago. The Health Ministry has recently implemented the tobacco control legislation which will imply a complete ban on advertisements and all direct & indirect promotional campaigns for tobacco products. In 2001, Indian Tobacco Company (ITC) had voluntary withdrawn the Wills Sports sponsorship of the Indian cricket team when the Government had first proposed a ban on advertising through legislation. THE CORPORATE STANDPOINT

The industry segment has its own standpoint in defence. 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, Radico Khaitan. 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 Lok Sabha 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. . [pic] Tobacco Advertising and Promotional Activities: The Global Scenario Tobacco advertising boosts consumption.

A report prepared with the co-operation of the tobacco industry concludes “advertising was found to have a statistically significant impact on industry sales”. The tobacco industry commented that a recent rise in tobacco consumption in Greece was “basically due to advertising”. In 1988, Philip Morris paid US$350,000 so that their brand of cigarettes would be shown in a new James Bond movie “Licensed to Kill”. In 1979, Philip Morris paid US$42,500 to have its Marlboro cigarette appear in the movie “Superman II” while in 1983, another cigarette manufacturer, Liggett, paid US$30,000 to have its cigarettes appear in the movie, “Super girl”.

These are movies with major child and adolescent audiences. Children smoke the most heavily advertised brands of cigarettes. Tobacco sponsorship of sport acts as cigarette advertising to children. The children who watch the sporting events on television readily recognize those cigarette brands which sponsored the event. Within six years of the tobacco companies introduction of feminine cigarettes and accompanying advertisement, the number of girls smoking increased by 110 per cent. The tobacco industry constitutes of the largest advertisers in the world. In 1996, Philip Morris, the world’s largest multinational cigarette company, spent $ 3. billion advertising its tobacco and food products, while the British American Tobacco spent $459 million on advertising its cigarettes alone. Tobacco Advertising in India Tobacco advertising contributes Rs. 300-400 crore to the Rs. 8000 crore-strong Indian advertising industry. With an increase in the number of tobacco advertisements, manufacturers of Gutkha and other tobacco products have raised their advertising budgets . The following table indicates the astronomical figures cigarette companies spent annually on advertising their brands against the proven health and social problems that they raise: Cigarette Brand Advertising Expenditure In India | |Gold Flake |Rs. 50 crore | |555 |Rs. 10 crore | |B&H |Rs. 10 crore | | Other ITC brands |Rs. 40 crore |

Forms of Tobacco Advertising in India’s Direct Advertising Newspapers and Magazines There is no net figure available on the expenditure incurred by cigarette and Gutkha companies on advertising. Of late, cigarette companies have started sponsoring the sports page of different newspapers. This trend was started in the wake of the proposed ban on tobacco sponsorship of sports events. Except for magazines on health-related issues, few newspapers or magazines have any policy prohibiting advertisement of tobacco products. There have been reports of Gutkha advertisements on the cover pages of school notebooks from Nagpur District in Maharashtra.

Outdoor Advertising International and domestic cigarette brands compete with each other in billboard advertising while oral tobacco brands resort to transport vehicles. Point of sale advertising flourishes adjacent to schools and colleges as also in restaurants and kiosks. Promotional Activities Sponsorship of Sports and Cultural Events The Nineties witnessed tobacco companies fighting for sponsorship rights of various sports and cultural events. Subsequently, the Indian cricket team came to be sponsored by Wills, the flagship brand of ITC until its withdrawal in March 2001.

For every test match that India played, Wills (ITC) doled out Rs. 33 lakh; for every one-day match, it paid Rs. 32 lakh. The major tennis tournaments, Gold flake open, in the country were sponsored by Gold Flake whereas boat racing was sponsored by Four Square cigarette. On the cultural front, Manikchand, manufacturers of Gutkha, patronizes the Film fare Awards in the country. Ironically, the national bravery award recognizing heroes for courage, adventure and spontaneous physical action is sponsored by Red and White cigarettes, Red & White Bravery Awards, capitalizing on the positive image and the good will the event fetches.

In several parts of India, major state festivals like Ganesh Chaturthi and Navratri have come to be celebrated with great fanfare at the behest of Gutkha companies. Surrogate Advertising on Television Gutkha companies like Simla, Goa 1000 and Pan Parag skirt the ban on tobacco advertising in Television channels by resorting to surrogate advertising in the name of pan masala bearing the same brand name. Cigarette companies resort to tobacco sponsored cultural events like the Red & White Bravery Awards Contests

The Wills “Made for Each Other” campaign of the Eighties with lucrative offers, including a holiday abroad, had courted much controversy over glamorizing and minimizing the dangers of smoking filter cigarettes. In December 1999, Four Square of Godfrey Philips India, an affiliate of Philip Morris Inc. ran the “Gold in Gold” Contest offering gold gift options, on the stipulation that entrants in the contest, besides being tobacco users, were to collect 4 inserts from Four Square Gold Cigarette packs. There was the Charminar Challenge as well. Product Placement in Movies

Several leading filmmakers and popular film stars have indirectly promoted cigarette brands by consciously placing cigarette packs or brand names/ logos in movie scenes as was observed in movies like God Mother, Tere Mere Sapne, Chasme Baddur and Katha. Free Sampling Earlier, this tactic of initiating the young into tobacco was restricted to handing out free samples of cigarettes. Recent press reports from Nagpur indicate that Gutka sachets are given out for free near schools and colleges. Strategically, youth in outfits bearing tobacco brand names and logos are engaged in these promotional campaigns.

In Mumbai, several discotheques and restaurants witness regular Benson & Hedges promotional activities, including giving free samples. Brand Stretching and Diversification Perceiving an imminent ban on tobacco advertising, several tobacco companies are promoting other consumer products, which bear the same brand name or logo as their popular tobacco products. These logos or brand names can easily be spotted on clothing, sports apparel, hats, trays, posters and stickers affixed to sports vehicles and backpacks.

The ITC, holding investments in the hotel and tourism sector has also set up 125 lifestyle stores selling apparels in the country in the immediate future. The plan includes spreading out to greeting cards business and experimental kitchens. Manikchand, the domestic Gutkha major, has diversified to tea, windmills and construction industry. Corporate Philanthropy and Public Relations The earthquake that ravaged parts of Gujarat was fully exploited by Gutkha manufacturers; they distributed food packets with Gutkha sachets to build up their social image.

All the major Gutkha firms are actively engaged in supporting local youth clubs in organizing their annual sports events and religious festivities. The Indian Tobacco Company claims that they invest in education, immunization and family planning programmes in communities near to their factories. State-patronized Tobacco Promotion Though lamentable, the State responsible for the health and well being of its citizens, also often acts as a vehicle for tobacco promotion. The obvious examples were the BEST buses plying in Maharashtra and the railway stations and bus stops across the country displaying huge tobacco hoardings.

Doordarshan, the national television channel, transmitted advertisements of Cavenders Cigarette brand disguised as adventure gear. Sports and cultural events on the channel were often sponsored by tobacco companies. Trends in Tobacco Advertising Following the announcement of the Tobacco Products Bill proposing a ban on tobacco advertising, there has been an upsurge in surrogate advertising and sponsorship of entertainment events. Marketing figures indicated that the market spending on tobacco products declined by 2 % over the year, while the spending on tobacco brands grew by 28 %.

That was illustrative of the increasing reliance of tobacco companies on sponsorships, restaurant and hotel programmes, public relations and direct marketing programmes those days. Impact of Tobacco Advertising and Promotional Activities In a study conducted in Goa among students immediately after watching tobacco-sponsored cricket matches, 15-20 per cent students surveyed felt that smoking and chewing tobacco improves memory. Some students even felt that if you smoke, you will become a better cricketer.

A 1992 review of 19 studies of cigarette advertising by the British Department of Health revealed that advertising does have a positive impact on consumption. A 1995 study indicates that advertising is more likely to influence teenagers to smoke than even peer pressure, while a 1996 study published in the Journal of Marketing found that teenagers are three times as sensitive as adults to cigarette advertising. The escalating annual advertising budgets of tobacco companies are enough proof of the impact this component of marketing has on increasing consumption rates. Existing Advertising Regulations in India

The Cigarettes Act, 1975, merely stipulates the statutory warning on cigarette packets. The Cable Television Networks (Amendment) Act, 2000-prohibits direct and indirect tobacco advertising on Cable Channels. Advertising Standards Council of India Voluntary Code, 1998-envisages prohibition of advertising targeting underage consumers; suggests that using tobacco products is safe, healthy or popular; enhancing courage; or featuring the young. Being a voluntary code, it has little enforcement value. The Tobacco Products (Prohibition of Advertising and Regulation of Trade, Commerce and Supply) Bill, 2001, announced by the Cabinet, pending nactment in Parliament provides for banning direct and indirect tobacco advertising in media, prohibition of tobacco sponsorship of sports and cultural events, banning smoking in public places, banning sale of tobacco products to persons below 18 years of age and repeats the existing labelling provision. The States of Goa, Punjab, Uttar Pradesh and West Bengal had agreed to adopt the Bill. Goa has an Act prohibiting smoking in public places, but it is poorly enforced. The same fate has been suffered by the Maharashtra Government Resolution banning sale of Gutkha within 100 meters of schools, hospitals and government offices.

Goa, Kerala, Madhya Pradesh and Karnataka have a ban in place on smoking in public places. FCTC and Tobacco Advertising Advertising being a translational issue in the information age, beyond the regulatory scope of individual countries, the efficacy of stringent provisions thereof in the Framework Convention on Tobacco Control (FCTC) is undisputable. Efforts should therefore be geared at motivating geographical regions en masse to opt for tight provisions in the Convention. Individual nations could also be prevailed upon to tighten their national laws to match with International standards to be set out in FCTC.

Interventions Effective lobbying strategies to enable the enactment of the Tobacco Products Bill, 2001: Activating State level advocacy to overcome the jurisdictional restrictions on policies regulating oral tobacco products and Bidi. Building a vigilant civil society to provide effective monitoring and prompt reporting of violations under the existing laws. Addressing trans-national advertising through strong provisions in the Framework Convention on Tobacco Control and Mobilizing Support from Entertainment-Celebrity endorsements of Anti- Tobacco policies.

Industry speaks With the blanket ban on tobacco advertising through all media come into effect from May 1, 2004. The advertising industry was set to lose nearly Rs 250 crore (Rs 2,500 million). Tobacco companies too were then banking on aggressive customer contact programmes to get access to their buyers. “We support the ban and such pressures are not new for the industry. We will have to look at the point of sales promotion and go for innovative inserts in cigarette packs,” said a Godfrey Phillips India (GPI) spokesperson.

GPI, the second largest cigarette manufacturer in the country, spent roughly Rs 20 crore (Rs 200 million) on advertising in 2003-04. Market leader ITC refused to comment on the issue, but the ad industry estimated that it will lose business worth Rs 80-90 crore (Rs 800-900 million) that year when ITC pulls out its ads. International cigarette giant Phillip Morris which started marketing the Marlboro brand directly in the country earlier in 2004, had gone on an outdoor advertising overdrive to make the most of the remaining few weeks before the ban takes effect. We deal with such regulations in various markets internationally. But the good thing is that this regulation is uniform and there is a level playing field,” said Ajit Sahgal, GM Philip Morris (India). But Ashok Aggarwal, president DS Group, the largest chewing tobacco company in India said that it will be very difficult to monitor surrogate advertising. Let us have a look at some of the advertisements that were shown before the ban: [pic] This advertisement was published in 1930. It clearly shows that the need to communicate about tobacco products existed in Indian market from long back. pic] Product: Filter Wills- navy cut Manufacturer: ITC [pic] These advertisements directly show the product and communicate about it. It actually talked about the bondage between he product and the consumer and the “made for each other” punch-line signified that the bond between the product and the smoker is as sweet as the relationship between a man and a woman; moreover the visuals showed the closeness and joy that a consumer is supposed to have by consuming the product. [pic] Product: Gold Flake Manufacturer: ITC

Agency: Bates India Pvt. Ltd. [pic] Product: Gold Flake Manufacturer: ITC Agency: Bates India Pvt. Ltd. [pic] Product: Gold Flake Manufacturer: ITC Agency: Bates India Pvt. Ltd. All these three advertisements shown above talks about the product quality and conveys a message which psychologically counters the fear of consumers of having a throat-problem because of smoking. By using the term “honeydew” the communication is focused not only to establish a superior product quality but the word honey also reduces the fear of throat-problems as we ll know that honey is used to cure throat problems, being widely used in Indian context. [pic] Wills Insignia is also another product from the house of ITC. In this piece of advertisement, the packaging, colour scheme, copy and the visual used talk about the superior quality and thus positions the product as a symbol of social status. The visual is based on black back-ground, as black is considered as the colour of power and dignity. [pic] Four Square is a well-known cigarette brand of the global tobacco giant Godfrey Phillips.

This advertisement talks about the macho-image of a man, essentially a consumer of Four-Square, and his abilities to impress woman. This advertisement influences the customer by showing macho-man image. There has been a complete change in terms of communications in tobacco industry after the ban came into play: [pic] Above shown is an advertisement by Godfrey Phillips, which simply talks about lifestyle or philoosophies. But the position of the fingers, the placing of the content and the words used like “fire” and “passion” readily allows the consumer to relate with a cigarette.

The most interesting thing that had happened in this entire surrogate scenario is the brand-extension of ITC as WILLS LIFESTLES, a chain of lifestyle stores that offer premium quality apparels. Some of the communications or advertisements that were published in print media to advertise WILLS LIFESTYLE are shown below: [pic] This advertisement of wills lifestyles exhibits the premium quality clothing using up-market models and ambience. [pic] In this piece of communication, high-end luxurious lifestyle was flaunted to communicate that people who wear will lifestyle apparels live a wealthy and luxurious life like shown above.

This advertisement directly influences the aspiration level of the consumers and they feel like trying it. [pic] In all those advertisements shown above, of Wills Lifestyle, there is no direct communication about the cloth-quality or the price factors which are usually found in case of garment advertisements. Instead of that, all these advertisements focus on the lifestyle, achievements and aspirations. The colour scheme, the logo-type and the font used are just look-alike to the cigarette brands.

More interestingly, the product ranges are named after the cigarette brand WILLS CLASSIC, which directly reminds the consumer about the original product. The name ‘Wills’ stands for the red and white packet of cigarettes and also perfume, soap, apparels, lifestyle store et all…. This is a classic example of brand extension that borders on surrogate advertising. [pic] The show-down The Information ; Broadcasting Ministry, under the Cable Network Rules, 1994 had imposed a ban on advertisements of tobacco and liquor products on satellite channels effective from 6 October, 200O.

The government’s aim obviously was reducing the exposure of such ads to teenagers in habit forming years. While advertising on Doordarshan had always been banned, the restriction on private channels had done away with one of the most effective channel of communication for the players in those industries. The ban includes both direct as well as surrogate advertisements in its ambit. Additionally there was also pressure from public interest groups to ban print and hoarding advertisements too.

If the Government does accept it that would close all the doors of communication for the industry, which would then have to solely depend on their established brand equity or direct promotions to grow their markets. Coming at a time that it had just a few months before the sector was opened up for free imports (March 2001), one really wonders if there hadn’t been some lobbying by the local players themselves for imposing this ban. Why would the players be in favour of such ban? In fact the ban had divided the entire industry between multinationals and local home grown companies.

From the point of view of Indian players’, the biggest threat was the entry of global majors who would have an unrestricted license to sell once the free import regime as per the WTO commitment came into force from March 2001. These MNC’s not only had well known brands, but also had deep pockets. And advertising is their most potent weapon. Television would be the quickest and the most effective way to reach the maximum number of people, throughout the country, in the shortest possible time. Print media has its own shortcomings, with the multiplicity of languages that people speak in India.

Also print media cannot beat the effectiveness of the audio visual medium of television. Adding to the woes of the international players would be the legislative hurdles in setting up a distribution network. Given the fact that liquor distribution remains a state subject and involves several restrictions and legal impediments, building a distribution infrastructure are a long term game plan, which would take a few years atleast. Resorting to a retail push therefore would be a difficult proposition for the new entrant. So the best bet would have been that of generating a consumer pull through effective advertising.

And that no longer existed. For the existing domestic liquor players, such as United Breweries, McDowell, Shaw Wallace, Radico Khaitan, Jagatjit Industries etc, who have strong brand equity, as well as an established distribution network, the impact of the ban would certainly not was so severe. Of course new brand building and relaunches certainly became difficult. However, the ban was likely to have a positive impact too. Besides keeping the foreign competition at bay, it was also likely to help improve margins of these domestic players.

The domestic players had established a strong equity for their brands like Kingfisher, Hayward’s, Royal Challenge, McDowell No. 1, Aristocrat, Bagpiper, Contessa, 8 PM, etc in the national and regional markets. Ad spends of leading player’s ranged between 7% to 13%. In fact UB spend about 28% of sales on advertising and sales promotions. |Company | Year | Selling expenses | % of sales | | | McDowell | 03/00 | Rs1089mn | 13% | | | United Breweries | 03/00 | Rs737mn | 28% | | Shaw Wallace | 06/99 | Rs565mn | 7% | | | Radico Khaitan | 12/99 | Rs78. 1mn | 8% | | | Jagatjit Industries | 03/99 | Rs523mn | 13% | | Source: Indiainfoline Database The above table gives ad-spends of major players in absolute as well relative to sales. If a player on an average spends about 10-12% of sales and assuming that 50% of the spend would be on direct consumer promotions and surrogates such as sponsorships, the rest would be spent on advertisements.

While this would be shared between the print (mainly magazines) and the television media, television advertising would certainly form a larger proportion in value terms. If this advertising is done away with, it would mean a saving of atleast 3-4% of sales. For companies like McDowell, whose operating margins hover around 6%, this could mean up to 50% gain in margins. More importantly, the anticipated rise in spending on television media expected in future did not happen. This would certainly helped these companies prop up their bottom-line.

Global players who are already in the market such as Bacardi, Pernod Ricard, UDV, Fosters, etc, who would have been relying on building up their brand equities in the local markets were in for a tough time. It could even have some fall out on the considerations of some global players who have not yet firmed up India plans. On August 9, the Ministry of Information and Broadcasting came out with a notification that finally clarifies government norms on surrogate advertising.

Although surrogate advertising is not permitted for liquor and tobacco products under the Cable Television Network Rules, 1994, until now, these rules were so unclear that they were only being followed in their breach by the media, the liquor and the cigarette manufacturers. The new notification spells out the various conditions under which products bearing names similar to liquor and tobacco brands can be advertised through television commercials, if at all (see box). This leaves marketers with little option but use unconventional means such as hosting music/art events or launching exclusive lounge bars to create a buzz around their brands.

That’s what Radico Khaitan (formerly Rampur Distilleries) did when they had to roll out its new Vodka brand, Magic Moments, in August this year. Industry Speaks The second—largest liquor major in the country introduced music spots on Radio Mirchi, along with live brand activation programmes. The liquor brand has also come out with a music CD by the name of Magic Moments. “We realized we would have to create more consumer touch points in an area that the youth is passionate about; so we selected music,” says Abhishek Khaitan, managing director, Radico Kahitan.

Other liquor companies such as Diageo and United Breweries are using a similar strategy—focusing their money and attention on exclusive clubs and lounges (think Johnnie Walker Club ; Lounge, Smirnoff Cafes etc) than on TVCs. According to a recent media report, 20-30% of Diageo’s marketing budget goes into club activities and conducting Formula I promotions. The big question is: Isn’t this surrogate advertising by another name? The Cable Television Network Rules, 1994 stipulate that a product created and advertised as a brand extension must represent a profitable business proposition and also have a physical on-ground distribution and sales.

Can the same be said of the Kingfisher Swimsuit Special Calendar? No definite answer, because the law is a bit fuzzy here. But, it shouldn’t really matter to anyone. Says Srinivasan K Swamy, CEO of RKSwamy/BBDO, “When you block conventional means of advertising, companies cannot be faulted for trying alternative below-the-line promotional schemes. ” “I don’t know whom the government is trying to regulate here,” says MG Parameswaran, executive director of FCB-Ulka Advertising. “If liquor brands are legally permitted to be sold in India, you must allow them all forms of advertising, so long as it is not targeted at children.

Otherwise, you only end up pushing the sale of illicit brands,” he reasons. Samit Sinha, managing partner, Alchemist Brand Consulting, raises a key point: “What do you think of when you hear the name Kingfisher? Just the airline company or also the liquor brand? And does the name Wills only strike to mind the wonderful apparel range? ” Let us have a look what was the scene before the ban in liquor advertising in India: [pic] Product: Black Fort Rum. The advertisement is focused on the masculine image attached with the consumption of rum. [pic] Product: Black Fort strong beer

This piece of advertisement focuses on the ecstasy related to the product. The clock attached to the bottle, in the visual, makes it look like a time-bomb which is awaiting to be opened and then there will a blast of enjoyment. The message is very direct, conveying that the consumer will feel the pleasure of a celebration by consuming this product. [pic] [pic][pic] Above shown advertisements are of TEACHER’S 50 Scotch. The visuals and the copy talk about the quality of the product. These advertisements hit a very general belief of the consumer, that is, good quality products don’t require many advertisements.

That is the reason in these advertisements minimum amount of loudness is being used. This advertisement talks about the promotional offers, but in such a way that when the consumer is exposed to this ad, the very first impression about the product, CHIVAS REGAL 12 VO, will be related to the SPIRIT of happiness, promoting the product as a part of any celebration. [pic] The very famous advertisement of Legend Strong Beer focuses on the strong personality of a consumer and thus in the visual the bottle is with buffalo-horns to show the strong attitude and the punch-line mentions it is not meant for the people with weak personality.

This is an activation scheme done for the client HAYWARDS 5000 strong beer. In this kind of activation schemes the visibility is very high and it directly promotes the product in a very effective way. Here, the idea is to establish the product as something that will make the consumer stand apart from the crowd and that is why “the who’s who. And the who’s he” had been used. Communication is very direct. Message is very understandable too. And after the ban: [pic] This advertisement is a surrogate for ABSOLUT VODKA.

The bottle is just like the bottle of ABSOLUT VODKA, but in the entire communication nowhere alcoholic consumption or the brand name or the logo has bee used. So, apparently it’s just a diwali wish from a company. But the diwali wish and the fire-crackers makes the mood of the celebration and that too with a bottle of ABSOLUT, hence, is creating a strong impact on consumer mind. [pic] Teacher’s scotch, a premium whisky brand showed up with in OOH (out-of-home) communications, felicitating the achievements of public figures. In the hoarding shown above, it talks about achievement awards for Abhinav Bindra.

The hoarding carries the logo-type and the colour scheme of Teacher’s scotch brand. [pic] Here too, bollywood actor Anupam Kher is felicitated for the achievement awards, hording carrying the logo-type and the colour-scheme. [pic] Surrogate: ROYAL STAG MEGA MOVIES Original product: ROYAL STAG WHISKY Surrogate: ROYAL STAG MEGA MOVIES Original product: ROYAL STAG WHISKY Surrogate: ROYAL STAG MEGA MOVIES Original product: ROYAL STAG WHISKY Surrogate: Royal Stag Mega Music Original product: Royal stag whisky Last four advertisements are of ROYAL STAG. The whisky brand is promoting itself under the surrogate of Mega Music and Mega Movies.

Most interestingly, with the feel of the enjoyment and celebration, the punch-line talks about “make it large” which readily reminds of a large peg of whisky, hence, creating a strong brand recall. [pic] Another example is of Royal Challenge whisky is the Rock ‘n India competition which was endorsed by the company. The target audience was youth. The message was simple yet attracting, the punch-line is the same which was used for the parent brand. [pic] Product: Johnnie Walker [pic] Product: Johnnie walker Product: Johnnie Walker The brand is being positioned on the concept of Progress.

The Striding Man logo was devised to convey the philosophy of the founder’s belief that through perseverance, the dreams can be realized. The brand is basing its positioning on the spirit of hard work and perseverance and will appeal to the customers who adore those values. I think the brand has segmented the market on the basis of values (broadly speaking). In India too, the brand is following its international strategy. The interesting feature of this campaign is the use of outdoor media to the maximum. The brand uses minimalistic approach to communicate to the audience.

It is said that the “Keep Walking “campaign has helped the brand to increase at least 60% of the sales. More over in the Indian scenario, Keep Walking Campaign also has helped the brand to touch a new level in surrogate advertising. [pic] Surrogate: 100 Pipers CDs Original product: 100 Pipers whisky [pic] Surrogate: 100 Pipers CDs Original product: 100 Pipers whisky Above shown are the examples of how 100 Pipers whisky is engaging advertising in promoting their product, using the CDs as a surrogate. A real case of true surrogate success in Indian liquor industry is the case of Kingfisher.

It will be too narrow a statement if all the brand extensions of Kingfisher are being tagged as surrogates only. But then again, all the communications helps the company to create a huge amount of brand recall by using the brand extensions. Let us have a look at the brand extensions that came into being under the brand name of Kingfisher. [pic] This advertisement was shown before the ban came into action. It is targeted very directly, the message is also very easy to understand and appealing too. [pic] Kingfisher airlines: the colour-scheme and the logo-type remained the same with the previous Kingfisher beer brand. [pic]

Kingfisher airlines: here too the logo-type and the colour scheme is maintained same with that of the original beer brand Another example of Kingfisher airlines [pic] For UB, the channel’s name gave the “King of Good Times” punch-line of its Kingfisher beer constant, not-so-subtle on-air play given the ban on surrogate advertising. And, for another, UB got the kind of content which it could then slap on the screens of the planes of its Kingfisher Airlines. Basically, kingfisher beer was promoted through: ¦ Lifestyle events ¦ Kingfisher Calendar ¦ Kingfisher airlines Though this can be a matter of debate whether the brand Kingfisher has truly xtended its brand or it’s just another surrogate. The brand was the brain child of the current Chairman of UB group Mr Vijay Mallya. A report says that Mr Mallya went to work in Calcutta as a part of mentoring program under Mr HP Bhagat. At that time the brands that were popular from UB stable was Kalyani Black label, Doctor’s Brandy etc. Mr Mallya wanted to create an exciting brand and none of the existing brands did impress him. He went back to Bangalore, searched archives and stumbled upon an old label with a Kingfisher in it. That marked the birth of the Iconic Kingfisher brand.

The major factor behind the success of Kingfisher brand is the Passion that Mallya have on the brand. When marketing theorists says that Marketing is a serious business, Mallya will tell you that Marketing is CEO’s business. When the CEO takes interest in the brand and virtually promotes the brand in every occasion, there is so much equity generated on the brand. Like Virgin’s legendary Richard Branson, Mallya also showed that the primary task for any CEO is to be passionate about the brand. While in most cases CEO comes into picture to deliver the annual shareholder’s meet, Mr Mallya takes the brand with him everywhere.

Kingfisher brand is a unique marketing success story because it thrived in an environment where liquor/ beer advertising was banned in India. The owners have built the brand circumventing the ban on promotion. During 1997, the brand roped in Ajay Jadeja and Sourav to feature in the campaigns. In 1996 the brand becomes the worldwide sponsors of the West Indies cricket team. But the brand was conscious to keep Kingfisher the star. The West Indies team personified the brand values of fun loving but successful team. The famous jingle ” Oola la le lo” and the fun filled TVC rightly placed the brand as a fun loving one.

Unlike brands like Pepsi which is focused on cricket, Kingfisher promotes all sports and the brand sponsors football stars and even Formula 1. The brand directly talks to people who are easy going, chilled out person who’s always willing to take a break and party with the friends. But they are very professional and successful. Most of the business reports try to relate the persona of Mr Mallya and the brand which I feel is unjustified. The brand Kingfisher does not derive any thing from the personality of Mr Mallya. The brand has its life of its own. Since the chairman is passionate about the brand, he takes personal interest in the brand.

Other than that relating the person and the brand and trying to say that Mr Mallya is more flamboyant than the brand is doing unjust to the brand. The brand also has a 360 degree approach to promotions tapping all possible ways to communicate with its target audience. The brand sponsors lifestyle events and the Kingfisher Calendar has attained a cult status with in 4 years of launch. During 2003-04 the brand logo got a make over and the Kingfisher started flying rather than sitting. The new logo signals the brand’s vision to get to new heights. The new logo designed by Claessens was backed with lot of noise in the media.

To circumvent the regulatory ban on surrogate advertising, the brand has launched into different categories like Mineral water and even into ready-mades taking a lesson from Wills. 2005 saw the UB group getting into the Airline business with its Kingfisher Airlines. The airlines became a brand to reckon within a year because the brand lived to its expectation and promise. Positioned as a funliner, the brand equity of the mother brand has been enhanced by this Extension (can i call it an extension? ). Behind the glamour of swimsuits and parties, one should not forget the strategies that made the brand a super brand.

The distribution and the point of promotion strategies of Kingfisher are excellent. The brand has maintained international quality but made sure that it is with in the reach of the Indian consumer. A few others in the list would be: ¦ Club Soda ( bagpiper) ¦ CD’s ( Bacardi) ¦ Water (Johnny Walker) ¦ Music (royal stag) ¦ Music ; CDs (Fuel) ¦ Water (McDowell’s) ¦ Celebrity endorsements, with Shatrughan Sinha for the Bagpiper soda to the leading stars such as ¦ events — Bacardi Blast which has been a pilgrimage with the hip youth ¦ Kingfisher – Saurav and Ajay Jadeja at the popular jig for a mineral water [pic]

Let us now understand what goes inside a consumer’s brain when he/she is exposed to an advertisement and which factors influence the consumer to remember the parent brand. Actually, there is a concept of “puffery” in advertising. This word means that in advertising if there is an exaggeration which is seem to be so and is permissible in the context of the audience culture then such a communication is acceptable and is so decoded by the audience. On the Indian screen, both in cinema and now increasingly on television, it is not at all unusual for the hero to beat up a large number of people as a matter of course.

Hence, such a scene showing in a suitably exaggerated fashion to support branding, though seemingly silly, could still be quite effective; particularly, in making the advertising impactful and memorable. Advertising is a form of communication which is intended to sway people in a particular direction, to influence the audience to purchase a product or service. There is a tacit understanding of this fact on the part of the audience, but this does not mean that the people in the audience–whether it is for television, magazines, books, or newspapers–are able to control fully their own reactions.

Advertising operates on many different levels, and there are subliminal messages in advertising that influence the thinking of the public. Many of these messages are certainly inadvertent, deriving from the prejudices and attitudes that are prevalent in a society at a given time. However, many others are intentional, designed to attract the viewer and to guide his or her thinking into certain channels for the furtherance of the major aim of advertising–the sale of the product.

A number of factors like personal values, lifestyles, psychographics, relationships, symbolic consumption patterns, self-image, personality, memory, learning, belief, attitude, intention, cultural and sub-cultural factors etc influence our decision or even opinion about a particular product and so we form opinions about brands. As we all are exposed towards a number of advertisements every single day. Some of them we remember, some of them we forget. It’s even I tougher job to make the consumer recall a product that is not being communicated directly, so naturally the value-propositions are also not conveyed to the consumer.

Surrogate advertising affects the value system, which works as the guiding principle of all other psychological traits, of a consumer directly. And thus creates a positive image about the particular brand. Following psychological model shown below might be helpful to explain how value system is affected by these surrogate advertisements. This model is an example of MEANS END CHAIN MODEL which talks about how a product influences the connection between the product and personal values of the consumer.

In case of surrogate advertising, all the messages that are being communicated to the consumer are so much in lieu with those of the original product, that the consumer remembers the original brand as those attributes are directly connected with a particular brand and when some other product using the same brand name communicates same messages, it makes the consumer remember the original brand and not the surrogate or brand-extension. The extended dual mediation model of communication can be shown as: This model is a relationship between the purchase intention and the advertising affect.

For surrogate advertisings we can replace the purchase intention by ORIGINAL BRAND RECALL. As for a surrogate product, both the cognition process and the attitude are in lieu with the original product communications, as guided by the personal value system, surrogate advertisements create a very distinct and clear brand image for the parent product. [pic] To measure the brand recall and surrogate effectiveness, a brand score-card has been developed to measure the recall value of the original brand and the surrogate brand.

To build the brand score-card basic understanding of Brand metrics is required. Brand performance measurement tools are often specific to the firms integrated into the brand measurement system though new models are introduced on continuous basis prioritizing the factor of brand influence. The major advantage of a brand measurement system is that it links brand management and business performance of the firm which has emerged as a strategic management tool for continuous improvement rather than a static snapshot in time of the brand’s performance.

An effective brand measurement system helps businesses to understand how the brand is performing with the framework of customer values and against competing brands. Many firms engage variety of integrated marketing activities to monitor brand performance indicators by 5As explained as brand awareness, acquaintance, association, allegiance and appraisal spread over perceptional, performance and financial factors. Brand acquaintance may be described as familiarity of consumers with the brands of a firm and buying behaviour of consumers towards the acquainted brands refers to brand association.

Other brand performance indicators allegiance and appraisal may be described as loyalty and performance of brand against investments made by the firm. Of various methods, ‘Brand Metrics’ is considered to be an effective tool for measuring the qualitative parameters of brand performance in a given market and time, which allows the firm to measure the effectiveness of brand-building activity in reference to brand investment (financial inputs) and brand impact (growth outputs) in the business. Constituents of brand metrics below: [pic] It can also be shown as: [pic]

Perception metrics focuses on the range of functional, emotional and latent connections that combine to form an opinion of a brand, which include awareness, familiarity, relevance, consideration and preference; combined. These attributes of perceptional metrics helps to gauge the effectiveness of various brand-building activities across all the points of interaction with a customer. Performance metrics helps to assess how the various brand-building activities have combined to drive overall business results, and range from price premium to loyalty to lifetime value of a customer.

Financial metrics represents the economic impact on the business, whether revenue growth or return on investment. Analysis of brand metrics will provide business growth and brand equity measures in reference to growth in stock values, and also sales, profits, price premiums and employee satisfaction. The brand equity may be measured considering brand profiling and conversion factors in a given market. Brand profiling is a process wherein the brand of a firm and its competitors are profiled against a set of indicators and attributes.

These indicators are usually fixed within the metrics, but attributes may be specific to a brand or its category. The conversion model assesses the degree of strength or vulnerability of a brand within the customer base of a firm towards competing brands in the market. Largely, credit card companies use this method to identify the segment of competitive customers that need to be targeted, to open up alternative offers, and regain loyalty of the customers. This is a simple and effective tool of measuring brand performance in the market woven around the principle of pooling quantitative variables in various combinations in the metrics.

It is important for a firm to understand relationships between brand perception, brand performance and financial impact, to work within the brand metrics process. The relationship can be learned through key drivers of demand, analyzing customer interaction with the brand and evaluating the influence of the brand in choosing one product or service over competitive offerings. Brand metrics results in a quantitative assessment of customer perception linked to purchasing behaviour.

The brand metrics should be aimed at mapping yield-loss score in reference to brands gained versus brands lost considering important market drivers such as demand, consumer preferences, retail sales, brand promotion, price sensitivity, product attributes, trial effects and repeat purchase behaviour of consumers. The study of performance metrics is an integrated analysis of all operational departments in a firm including finance, marketing, logistics, sales and customer relations activities to map the brand-market segment. Brands are intangible which closely reflect true value of a firm and reveal the source of sustained competitive advantage.

Brands provide added value, both to the firm and the consumer. This added value can be conceptualized in terms of brand equity. The marketing mix strategy plays an important role in establishing a brand identity. There are 11Ps comprising product, price, place, promotion, packaging, pace (dynamics), people, performance, psychodynamics, posture of the firm, and proliferation of brands that play an important role in this process. The analysis of brand metrics helps in examining brand identity and brand image in the context of overall brands profile of the company and its consumers.

Brand metrics reveals brand vision which embodies the core purpose for a brand’s existence. It represents a set of values that, along with brand culture, provide direction and guidance. Brand personality traits provide symbolic meaning or emotional value that can contribute to consumers’ brand preferences and can be more enduring than functional attributes. Successfully positioning a brand’s personality within a product category requires measurement models that are able to disentangle a brand’s unique personality traits from those traits that are common to all brands in the product category.

Consumers perceive the brand on dimensions that typically capture a person’s personality, and extend that to the domain of brands. The dimensions of brand personality are defined by extending the dimensions of human personality to the domain of brands. The perceptional metrics delivers the consumer-brand personality relationship map which is significantly helpful in developing and maintaining flagship brands of a company. There is a relationship between the brand-as-person and the customer, which is analogous to the relationship between two people.

The brand personality provides depth, feelings and liking to the relationship. Successful brands can call to mind strong emotions and command high levels of loyalty, which provides another reason for pursuing a brand approach. Few brands command the level of association of the Harley-Davidson riders who tattoo the company logo on their bodies, but everyone has their value preferences which stand above the brand value. Developing Brand Score-card

The brand scorecard has been derived from the concept of balanced scorecard which is defined as a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise (Kaplan and Norton, 1996).

A firm may develop brand scorecard on the analysis of brand metrics. Development of a balanced, performance based scorecard would enable the firm to measure key behavioral dynamics associated with the brand and compare with other competing brands in the market. The benefit of brand scorecard is that it identifies the posture of the brand in reference to the strength of the brand in the given market. The scorecard would be helpful in improving, guiding the brand led investment, and marketing strategy.

The brand scorecard, generally, is an increasingly utilized tool among businesses seeking to move strategy to the action stage. Broadly, the brand score card encompasses four areas: • Understanding financial performance • Operations and internal business processes related to production and supply • Customer value measurement in terms of ranking levels of satisfaction • Linking brand metrics to business strategy Leveraging from the application of brand scorecard many organizations have augmented brand values to a wide range of brands of their company.

This has led to the incorporation of brands into their scorecards, which first requires determining the brand strength in the scorecard. Structure of the brand scorecard varies according to the product and brand life cycles, business maturity and the category in which the business operates, although some of the metrics incorporated will be common across business models and industries. Brand scorecard in reference to brand strength is exhibited in the table below, a prototypical metrics applicable in consumer goods and services (business to consumers segment) in a firm. . brand category |brand |perception metrics |performance metrics |financial metrics | | | |customer preference | | |Brand preference |Brand value |Brand personality |Brand awareness |Brand emotional connection |Brand loyalty |Brand attachment |Brand recall | |Liquor and Tobacco Brands |Original brand |  |  |  |  |  |  |  |  | | |Surrogate |  |  |  |  |  |  |  |  | |

All these factors like Brand preference, brand value, brand personality, brand awareness, brand emotional connection etc are taken together to finally calculate brand recall. All these score taken together can provide a fair enough idea about the effectiveness of surrogate advertisement in case influencing brand recall for Liquor and Tobacco industry separately as a whole. It could have been much better and accurate if we actually could take separate brands and then calculate their scores, but that is beyond our scope of time and money involved in this paper.

So I have tried to make it very simple and cumulative representation of the respective industries as a whole. For the age group 18 to 25 years: [pic] Graphical representation of the responses from the above mentioned age-group. Brand Recall score is ORIGINAL BRAND = 0. 871 and that of the SURROGATE BRAND = 0. 2 For the age group 26 to 40 years: [pic] Brand recall of the ORIGINAL BRAND is 0. 947 and that of the SURROGATE BRAND is 0. 152 For the age group 41 years onwards: [pic] Brand recall of the ORIGINAL BRAND is 0. 98 and that of the SURROGATE BRAND is 0. 134 Therefore the cumulative Brand Recall score for

The Original Brand is (0. 871 + 0. 947 +0. 98)/3 = 0. 9326 And The Surrogate Brand is (0. 2 + 0. 152+0. 134)/3 = 0. 162 It clearly shows that the Brand Recall value of the Original brand is much more than that of the Surrogate brand and this proves that Surrogate advertising is working effectively in the marketplace. Though the calculation is being done in a very simplistic way, there can be lot more intricacies related to this calculation. Here we have taken all the attributes of the Perception metrics as mutually exclusive attributes which is not true in real life scenario.

All these attributes have some or the other degree of co-relation and thus changes in one affects another directly and readily. Most interesting observation could be this that as the higher age-group is approached, Brand Recall value of the Original brand got higher and that of the Surrogate diminished. This could be explained as the age is higher; those groups of people had higher chances of being exposed to the Original product advertisements before they got exposed to the surrogate communication.

Therefore, they were more able to connect the surrogate advertisement to the original product faster and more effectively than people who have not come across the communications of the original product. Societal Objections and In search of a solution Surrogate tobacco advertisements are now luring India’s young — 10- to 14-yearolds — to take up smoking. A recent Indo-US study, conducted in Delhi and Tamil Nadu that included 11,642 sixth and eighth graders, found that nearly half the children had seen and remembered a tobacco advertisement.

More than 490 of the students surveyed from 32 schools had a favourite tobacco advertisement while 238 of them could recall a brand name. The use of tobacco was five times lower among students who had not watched tobacco promotions. According to the study, published in the May issue of the American Journal of Health Behaviour, which shows a connection between exposure to surrogate tobacco ads and consumption, cigarette companies are trying to tap the young by falsely associating use of tobacco products with qualities such as glamour, energy and sex appeal.

This finding has serious implications for India, 51% of whose population is below the age of 25 Monika Arora, director of Hriday and one of the researchers, said that event sponsorships and lifestyle stores named after tobacco products were slipping through the cracks of the law in India, which banned tobacco advertisements in 2004. The threat made WHO turn the focus on the sophisticated marketing campaigns of tobacco companies to attract the young, on ‘World No Tobacco Day’ on May 31. This study provides solid evidence that tobacco advertising and promotion are associated with tobacco use among urban youth,” Arora said. “Smoking initiation,” she said, “largely occurs before the age of 18 and this study highlights that younger adolescents are more vulnerable. So, the government needs to enforce a comprehensive ban on tobacco ads. ” The study’s principal investigator, Cheryl Perry from the University of Texas School of Public Health, said: “As India becomes more westernised, more teenagers will use tobacco.

The sixth graders as a group are already thinking that smoking is cool. ” Meanwhile, WHO has urged governments to protect the world’s 1. 8 billion young people by imposing a ban on all tobacco advertising, promotion and sponsorship. Studies have shown almost a quarter of smokers in Southeast Asia start using tobacco before the age of 10. “In many countries, over half the minors have bought tobacco products from stores and 70% have never been refused despite their age,” said Dr Samlee Plianbangchang, WHO regional director for Southeast Asia. “Tobacco use among girl students is on the rise.

It is clearly proven that exposure to direct and indirect advertising leads to an increase in tobacco use among young people,” Dr Plianbangchang said. More than 14% of Indian students are regular tobacco users. A WHO study of 13 to 15-year-olds in schools worldwide found that more than 55% of students had seen cigarette advertisements on billboards and 20% owned an item with the logo of a cigarette brand. “But it is the developing world, home to more than 80% of the world’s youth, which is most aggressively targeted by tobacco companies,” said Dr Douglas Bettcher, director of WHO’s Tobacco Free Initiative. Young women and girls are particularly at risk, with tobacco companies seeking to weaken cultural opposition to their products in countries where women have traditionally not used tobacco,” Dr Bettcher said. Dr K Srinath Reddy, who is co-author of the Delhi-Tamil Nadu study, said some tobacco brands continued to be advertised through surrogate means, which was evident in the favourite tobacco advertisements reported by students. FATAL PUFF • Tobacco kills a third to a half of those who use it globally • India is home to nearly 12 crore smokers Smoking kills 1 lakh females and 6 lakh males a year, between the ages of 30-69 in India • Smoking is expected to kill 10 lakh people in India, annually, from 2010 • It will be the primary cause behind one in five of all male deaths and one in 20 of all female deaths in India • Nearly 70% of these one million deaths—seven lakh people, will die young • Over 50% of the tobacco deaths will occur in illiterate men or women, with 80% of them residing in rural India • On an average, every tobacco user loses 15 years In India, only 2% of adults quit smoking • Bidi is the most popular form of smoking tobacco in India • 70% of tobacco smoked is in the form of bidis • For every cigarette, 8 bidis are sold • Nearly 85% of the world’s bidi tobacco is grown in India • 22% of adults worldwide currently smoke tobacco • 36% men smoke compared to 8% women globally About 61% of men who smoke will die at ages 30-69, compared with 41% of otherwise similar non-smokers Sociological studies have shown that, in India, a significant share of income of a large section of the population is spent on liquor, potentially leading to financial distress and health hazards. According to the International Wine and Spirit Board, a liquor industry publication, there will be a jump in the number of people reaching the legal drinking age of 25 within the next few years. The implication is that the problem is going to grow. In Search of a Solution: There are always the reasons why the government should not put a ban on the advertising of Liquor and Tobacco products.

When the government is not putting any ban on the production, sales, purchase or consumption of the product, it is not wise at all to deprive the organizations from communicating about their product to their consumers. There can be some strictly guided rules like: ? Selective number of insertions in the media ? Selective time for the advertisements of such products ? Selective channels for the advertisements for such products There should be stringent regulatory measures to curb the practice, such as: i) making transparent laws banning surrogate advertisements for different products under single brand names, by amending the Trade Marks Act, for instance; ? roviding teeth to the Advertising Standards Council of India to enable it take action against false and misleading advertisements, and keep a close vigil over clever evasion of the law ? asking the electronic and print media to adhere to the advertisement codes and not encourage surrogate advertisements; ? calling on the ASCI address complaints received from consumers against surrogate advertisements and take appropriate actions immediately; ? creating a consumer awareness programme to help people understand the negative impact of surrogate advertisements; ? adopting strict laws to penalize those companies featuring surrogate advertisements without any real existence of the product; and ? requiring advertising gencies to have full knowledge of the products under the same brand for which they are promoting advertisements, and taking legal actions against those agencies which design surrogate advertisements To finish this paper, I would like to add a few more words. It is true that the more effective the communication will be; more evident will be the difference between the rich and the poor as all the people who are exposed to all the communications do not have the capacity to buy that product. This will create serious differences between social classes which is not healthy for any society. 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 wrong. And so you have an actress who was hailed as the only “man” in Bollywood endorsing a bravery award named after a cigarette brand.

And you have pious corporate social responsibility programmes from a tobacco company that freely endorses surrogate advertising. And you have a Member of Parliament whose intentions could definitely be construed to point at encouraging surrogate advertising. Forget the advertising agencies. They are too small in this game. Advertisers must decide what is right and what is wrong. And the consumer must be the ultimate judge. Do we want to patronise the products and services of companies who are legally correct, or really correct? That’s a choice we have to make. The advertising is purely incidental. Annexure: Questionnaire: 1. Which brand do you prefer and why?

Original brand |Kingfisher beer |Royal Stag Whisky |Fuel Vodka |Jonnie Walker Scotch |Gold Flake Cigarettes |Wills Cigarettes |Red and White Cigarettes |Charminar Cigarette | |Surrogate brand |Kingfisher Airlines |Royal Stag Megamovies |Fuel cassettes and CDs |Johnnie Walker cocktail Stirrers |Gold Flake open tournaments |Wills Lifestyle |Red and White Bravery awards |Charminar Challenge | | 2. Which brand do you value and why? Original brand |Kingfisher beer |Royal Stag Whisky |Fuel Vodka |Jonnie Walker Scotch |Gold Flake Cigarettes |Wills Cigarettes |Red and White Cigarettes |Charminar Cigarette | |Surrogate brand |Kingfisher Airlines |Royal Stag Megamovies |Fuel cassettes and CDs |Johnnie Walker cocktail Stirrers |Gold Flake open tournaments |Wills Lifestyle |Red and White Bravery awards |Charminar Challenge | | 3. Which brand according to you has a stronger personality?

Original brand |Kingfisher beer |Royal Stag Whisky |Fuel Vodka |Jonnie Walker Scotch |Gold Flake Cigarettes |Wills Cigarettes |Red and White Cigarettes |Charminar Cigarette | |Surrogate brand |Kingfisher Airlines |Royal Stag Megamovies |Fuel cassettes and CDs |Johnnie Walker cocktail Stirrers |Gold Flake open tournaments |Wills Lifestyle |Red and White Bravery awards |Charminar Challenge | | Take the names of the brands in random order. 4. Are you aware of the following brand? If yes, what do you know? Connect a word with the following brands i. e. if you hear the brand name what product attributes comes into your mind first? Original brand |Kingfisher |Royal Stag |Fuel |Jonnie Walker |Gold Flake |Wills |Red and White |Charminar | | 5. With which brand you connect emotionally and why?

Original brand |Kingfisher beer |Royal Stag Whisky |Fuel Vodka |Jonnie Walker Scotch |Gold Flake Cigarettes |Wills Cigarettes |Red and White Cigarettes |Charminar Cigarette | |Surrogate brand |Kingfisher Airlines |Royal Stag Megamovies |Fuel cassettes and CDs |Johnnie Walker cocktail Stirrers |Gold Flake open tournaments |Wills Lifestyle |Red and White Bravery awards |Charminar Challenge | | 6. To which brand you feel loyal and why? Original brand |Kingfisher beer |Royal Stag Whisky |Fuel Vodka |Jonnie Walker Scotch |Gold Flake Cigarettes |Wills Cigarettes |Red and White Cigarettes |Charminar Cigarette | |Surrogate brand |Kingfisher Airlines |Royal Stag Megamovies |Fuel cassettes and CDs |Johnnie Walker cocktail Stirrers |Gold Flake open tournaments |Wills Lifestyle |Red and White Bravery awards |Charminar Challenge | | 7. Which brand you feel attached to and why?

Original brand |Kingfisher beer |Royal Stag Whisky |Fuel Vodka |Jonnie Walker Scotch |Gold Flake Cigarettes |Wills Cigarettes |Red and White Cigarettes |Charminar Cigarette | |Surrogate brand |Kingfisher Airlines |Royal Stag Megamovies |Fuel cassettes and CDs |Johnnie Walker cocktail Stirrers |Gold Flake open tournaments |Wills Lifestyle |Red and White Bravery awards |Charminar Challenge | | References: Freedman, A. (1998). Big Tobacco, Big Government, and the Senate’s Nicotine Plan. Congressional Quarterly Weekly Report, 56, 991. Garfield, B. (1999, October). Chauvinist Pigskin. Advertising Age, 70-71. Hall, L. (1999, March). Making the case for liquor ads. Electyronic Media, 18, 3-5. Kalb, C. ; Springen, K. (1999, June). Fighting Cellulite. Newsweek, 133, 66.

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The Assessment of U. S. and Canadian Smoking Reductions Objectives for the Year 2000. American Journal of Public Health, 88, 1362. Preston, I. L. (1975). The Great American Blow-Up. Madison: University of Wisconsin Press. Redding, R. (1998, May). University of Louisville to Maintain Alcohol-Related Advertising Stance. Business First Louisville, 50-52. Rubenstein, B. & Shaffer, Butler D. (1987). American Voices. New York: Philip Morris. Rutz, D. (1997, December). Don’t Get Scalped. Men’s Health, 12, 82. Kalpan R S and Norton D P (1996), The balance scorecard- translating strategy into action, Boston, Massachusetts, Harvard Business School Press

Kalpan R S and Norton D P (2000), Having trouble with your strategy? Then map it, Harvard Business Review, 78 (5), 167-176 Kapferer, Jean-Noel: Strategic Brand Management, Second edition, London, Kogan Press, 2000, 125-140 Rajagopal and Romulo Sanchez (2004), Conceptual analysis of brand architecture and relationships within product categories, Journal of Brand Management, 11 (3), 233-247 Rajagopal (2006), Brand excellence: measuring impact of advertising and brand personality on buying decisions, Measuring Business Excellence, 10 (3), 55-65 Tauber, Edward M: Brand Leverage (1988), Strategy for growth in a cost-control world, Journal of Advertising Research, 28 (4), 26-31 ———————–

INDIAN LIQUOR INDUSTRY INDIAN TOBACCO INDUSTRY Looking inside consumer brain Apple-juice (Surrogate to alcoholic product) Tasty Relieving Feel fresh Social recognition Cheerfulness Social status and comfortable life Concrete attributes Abstract attributes Functional consequences Psychological consequences Instrumental values Terminal values Source: Consumer Behaviour and Marketing Strategy, J. Paul Peter & Jerry O. Olson page: 103 Aff Cad Aad Cb Ab PI Aff = Affect Cad = Cognitions towards the ad Aad = Attitude towards the ad Cb = Cognition towards the brand Ab = Attitude towards the brand PI = purchase intention Measuring Brand Recall and Surrogate Effectiveness

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