UNIVERSITY OF MUMBAI

A PROJECT REPORT ON
“A STUDY ON IMPACT OF SURROGATE
ADVERTISEMENT IN SURROGATE PRODUCTS”

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR
BACHELOR OF MANAGEMENT STUDIES

SUBMITTED BY:
Santosh bhalerao

BATCHLOR OF MANAGEMENT STUDIES

SEMESTER-V
2016-2017

UNDER THE GUIDANCE OF:

PROF: SHAILU SINGH

1
2
 UNIVERSITY OF MUMBAI

A PROJECT REPORT ON

“A STUDY ON IMPACT OF SURROGATE

ADVERTISEMENT
IN SURROGATE PRODUCTS”

A PROJECT REPORT SUBMITTED IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR
BACHELOR OF MANAGEMENT STUDIES
(BMS)

SUBMITTED BY:
Santosh bhalerao

BACHELOR OF MANAGEMENT STUDIES

SEMESTER-V
2016-2017

UNDER THE GUIDANCE OF

PROF: SHAILU SINGH

SANPADA COLLEGE OF COMMERCE &

TECHNOLOGY
PLOT NO: 3, 4 & 5, SECTOR-2, SANPADA (EAST)
NAVI MUMBAI-400705.

3
 DECLARATION

I, MR.SANTOSH BHALERAO, STUDENT OF SANPADA COLLEGE

OF COMMERCE & TECHNOLOGY – STUDIES BACHELOR OF

MANAGEMENT STUDIES FIFTH SEMESTER; HEREBY DECLARE

THAT I HAVE COMPLETED THIS PROJECT REPORT ON “A STUDY

ON IMPACT OF SURROGATE ADVERTISEMENT IN

SURROGATE PRODUCTS” DURING THE ACADEMIC YEAR 2016-

2017. THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO

THE BEST OF MY KNOWLEDGE.

NAME: santosh bhalerao”

DATE: 1ST OCTOBER, 2016

4
 ACKNOWLEDGEMENT

At the outset, I am thankful to my institute Oriental Education

Society, and the authorities, for providing me an opportunity to undertake
my Bachelor’s Degree in management studies (BMS), and also for sponsoring
me to undertake project. I am thankful to the management for giving me an
opportunity to undertake my project (A STUDY ON IMPACT OF SURROGATE
ADVERTISEMENT IN SURROGATE PRODUCTS) under the guidance of Prof.
Shailu Singh as my mentor.

I would like to thank our Faculty guide, Prof. Mustak Deraiya

(Professor, Oriental Education Society), for providing valuable suggestions
and guidance during the project. His perspective has encouraged me to
incorporate a different dimension to the project

I am grateful to my colleagues for being a wonderful support a through

at the same time I am thankful to all my friends of Oriental Education Society,
for being with me at different junctures of need.

I also acknowledge great sense of gratitude to all those who have

enriched and improved my thinking, through their conversations, thoughts,
experience and guided me to complete this report.

5
  “NAME: santosh
bhalerao
ORIENTAL EDUCATION SOCI ETY’S
SANPADA COLLEGE OF COMMERCE & TECHNOLOGY
PLOT NO. 3,4,5, SECTOR 2, S ANP AD A, NAVI MUMBAI 40070 53

CERTIFICATE
This is to certify that MR. YASH KOLI OF Third year of bachelor of
commerce in Marketing, semester v has undertaken and completed
the project work titled A STUDY ON IMPACT OF SURROGATE
ADVERTISEMENT ON SURROGATE PRODUCTS during the academic year
2016-2017 under the guidance of Prof. SHAILU SINGH submitted on 05TH
OCTOBER 2016 to this college in
fulfilment of the curriculum of Third year of bachelor of
commerce in banking & insurance, University of Mumbai.
This is a bonafide project work and the information presented is
true and original to the best of our knowledge and belief.

PROJECT GUIDE External Examiner PRINCIPAL

(PROF. SHAILU SINGH) (DR.D.M.MULEY)

CHIEF CO-ORDINATOR

6
(PROF. MUSTAK DERAIYA)

7
 INDEX

SR. PAGE
NO. CONTENTS NO.

1 EXECUTIVE SUMMARY 7

2 INTRODUCTION 8-23

3 LITERATURE REVIEW 24-38

4 INDUSTRY ANALYSIS 39-42

5 TYPES OF ADVERTISING 43-46

ADVERTISING INDUSTRY IN INDIA 46-54

6 THE COMPANY PROFILE 55-57

7 AIMS AND OBJECTIVES 58-60

8 OBJECTIVES OF COMPANY 61-65

9 RESEARCH METHODOLOGY 67-70

10 DATA ANALYSIS AND INTERPRETATION 71-78

11 FINDINGS 80

12 CONCLUSION 81

13 SUGGESTIONS 82

14 BIBLIOGRAPHY 84

15 ANNEXURES 86-87

8
 EXECUTIVE SUMMARY

As in today’s advertisement scenario, surrogate advertisements hold great

potential and growth when compare to other advertisements. This growth and
potentiality directed to enter into this sector. The success story of a good
advertisement depends on how it creates image before customer’s mind. This
study tries to reveal the knowledge and perception of customer’s by exploring
their experiences and valuable suggestions. Also trying to find out whether the
surrogate advertisements make some impact throughout the market. Only some
advertisements make the customers to try the product.

So descriptive type of research is adopted for studying the overall market. Non
probability sampling technique, convenient sampling is carried out for collecting
the primary data. Though the percentage method data’s is being interpreted
Primary as well as secondary data’s were collected through questionnaire method,
and it helps to experience the advertisement perception of customer directly.
Customers mainly remind the surrogate advertisements because on the medium, it
is represented through different media’s. The entire study points out the area of
improvements, while doing the surrogate advertisements. As every advertisement
were intended to create some good impacts on customer’s mind; ethically it has to
satisfy all the desires and needs of customer. It came to know that people
remember the brand names and ask for the surrogate products. Because of the
knowledge and awareness level of surrogate advertisements are high, it is sure
that liquor companies can take the mileage through surrogate products.

9
 Chapter 1
INTRODUCTION

10
1.1 INTRODUCTION
Research is the scholarly or scientific practice of gathering existing or new
information in order to enhance one's knowledge of a specific area. Research has
many categories, from medicine to literature.

"Marketing research is the function that links the consumer, customer, and
public to the marketer through information - information used to identify and
define marketing opportunities and problems; generate, refine, and evaluate
marketing actions; monitor marketing performance; and improve understanding of
marketing as a process. Marketing research specifies the information required to
address these issues, designs the methods for collecting information, manages and
implements the data collection process, analyses, and communicates the findings
and their implications."- American Marketing Association (AMA)

Surrogate Advertising is the form of advertising in which a similar of different

product promotes another product by using the brand and logo of the product
whose promotion is intended. The sponsoring of sports/cultural/leisure events and
activities using brand name of a product also falls in the category of surrogate
advertising. The primary intention of surrogate ads is not to increase the sales of
the product being advertised, but to rather create a brand recall of the desired
product in the mind of target consumers.

The need for Surrogate advertising arises when due to regulatory change in a
country or a region, advertising and promotion of certain product gets prohibited.
It is widely accepted that the concept of Surrogate Advertising started in UK
when strong protests from British housewives against liquor brands targeting their
husbands led to ban on promotion of liquor brands. In response, liquor companies

11
came up with acceptable products like juice and soda using the brand name of
their liquor product. Indian market adopted a wide use of surrogate ads when a
blanket ban was applied to the promotion of liquor and tobacco products by the
Government in September 2000 which led to companies aggressively using
surrogate ads to maintain the brand value of their products.

Consequently, Indian consumers saw surrogate ads after the ban, with ads like
Bagpiper club soda, Kingfisher airlines, Royal Seagram CDs and audio cassettes
ensuring their brand value did not diminish. ITC used a different approach of
making Wills the main sponsor of the Indian cricket team. At present it uses its
apparel store Wills lifestyle to communicate its most widely known cigarette
brand. We even have an IPL team "Royal Challengers" indirectly referring to the
flagship liquor product of the owner company. Surrogate ads probably reflects
the way marketing world evolves and adapts in response to the regulatory
changes, or changing consumer preferences and methods of communication.
Therefore, next time you see IPL cricketers humming to "Oo la la la la la", rest
assure Kingfisher just reminded you of its beer and the happiness you'll get from
having it.

INDIAN MARKETING & ADVERTISING SCENARIO

The Indian marketing & advertising sector have shown a tremendous growth
since the early 90’s with several progressive plans implemented by the Indian
government. The government then decided to open the Indian market for foreign
investors and allowed foreign equity. That paved the way for the opening the
floodgates of the boom in these sectors which is still shining high. Marketing &
advertising (M&A) are the tools which can be used by an organization to relate
itself to its target audience at a large scale. The 'Grand Old Man' of Indian

12
advertising’, R.K. Swamy, was instrumental in bringing advertising to the Indian
map at the age of 50.

Several big names such as Ogilvy & Mather, JWT and Mudra have established
large business houses and have made a name for them in this large growing M&A
market. There are several benefits attached with the promotion of a company
using the medium of marketing & advertising. It is economical, easy-to-use,
appeals to a large public group and it provides the company an opportunity to be
on a more interactive and more informative platform. The prospective customers
can get the required information and also purchase the products of the company
by using credit cards or pay-pal (online payment). This has proved to be
beneficial for both the companies and the customers as that helps in the growth of
the market overall and ensures availability of right products at the right time and
that too economical.

Many of the Indian M&A companies are earning their deserved name and fame
by being conferred with the honour of market-leaders and several others are on an
emulating spree to achieve the feat of their peers. Lowe India was recently
conferred at the recently concluded Asian Advertising Awards by Media
Magazine Awards. Ogilvy & Mather recently won the “Pink slip” recognition by
the Times of India Group for its unmatched work skills.

India’s Advertising industry is expected to grow at a rate of 16.8 per cent year-on-
year to Rs 51,365 crore (US$ 7.61 billion) in 2016#, buoyed by positive industry
sentiment and a strong GDP growth of 7 percent and above.
India's digital advertising market has grown at a fast pace of 33 per cent annually
between 2010 and 2015##, while the spend as a percentage of total advertising
increased to 13 per cent or nearly US$ 1 billion in 2015.

13
Outdoor Advisor Advertising avenues such a billboard ad, kiosks ads,
airport/metro/mall ads are popularly adopting in India is one of the most opted
modes of brand promotion. Indian Outdoor advertising industry comprises of a
major share in the overall advertising industry. Outdated by brand owners.
Billboard advertising is one of the most widely adopted forms of outdoor
advertising. One can see billboard ads almost anywhere in the city- at the traffic
point, at the metro stations, at the shopping malls, at the roadsides, at the highway
etc. Until the launch of some technologically enhanced tools of outdoor
advertising, Indian outdoor advertising was synonymous to billboard and poster
advertising. Billboard ads have been effectively used by brand owners and
advertisers on a larger scale.
With digital technology, Indian Outdoor Advertising has seen a drastic change.
Billboard ads are even digitalized in contemporary outdoor advertising, thereby
providing a richer impact on target groups about the various endorsed brands. The
rising numbers of shopping malls again provide lucrative advertising
opportunities to brand owners who want to advertise their brands through the rich
and interactive mall media. Mall culture is spreading at each and every nook and
corner of the country, thereby providing brand owners striking opportunities to
popularize and position their brands amongst target groups. Airport Advertising,
another popular avenue of outdoor advertising is also gaining much acclamation
as one of the most effective avenues of brand promotion. Airport ads are
considered exclusive because of the rich ambience as well as the ‘state-of-art
advertising mediums’ used by brand owners to launch their promotion campaigns.
Airport ads target rich people/decision makers who can easily spend for the
advertised brands. Hence, various posh brand ads are launched through airport
media with a targeted impact on those rich customers. The growing numbers of
airports in the country further provide brand owners exclusive brand advertising
opportunities.

14
1.2 NEED FOR THE STUDY
Surrogate advertisement resemble the original product or could be a different
product altogether, but using the established brand of the original product. The
trend of surrogate advertisement gathered momentum with several Medias around
worldwide. As heated debates are going over the issue of surrogate advertising;
whether it is needed or not, by doing the study expects to throw light on the
subject. Being these advertisements attracted criticism from various people as
they are not only misleading, but also false and dishonest in many cases. And
mainly concerned with knowing the knowledge of public about surrogate
advertisement.

1.3 SCOPE OF WORK

1. The study was conducted in Mumbai City for collecting information.

2. The present study was conducted to help the company; how surrogate
advertisements hits customers mind.

3. The study helps to work on the media though which customer knows about the
surrogate products.

4. The study was conducted keeping in mind to understand the customer

knowledge of surrogate advertisements.

1.4 PROBLEM IDENTIFICATION

O&M would like to know what is the perception of customers, their knowledge
and how can they develop new advertisement campaigns and strategies for their
client, to make surrogate advertisements in a better way.

15
1.5 SURROGATE ADVERTISEMENTS

A surrogate advertisement is one in which a different product is promoted using

an already established brand name. Such advertisements or sponsorships help in
contribute to brand recall. The different product shown in the advertisement is
called the “Surrogate.” It could either resemble the original product or could be a
different product altogether, but using the established brand of the original
product. The sponsoring of sports/cultural/leisure events and activities also falls
under the purview of surrogate advertising.

In India, the trend of surrogate advertisement gathered momentum with the Cable
TV Network Regulation Act, which prohibits tobacco and liquor advertisements
on TV channels. The liquor industry has intentionally blurred the line between
products, advertising `old wine' in a `new bottle,' only this time with label.
Surrogate Advertising is the form of advertising in which a similar of different
product promotes another product by using the brand and logo of the product
whose promotion is intended. The sponsoring of sports/cultural/leisure events and
activities using brand name of a product also falls in the category of surrogate
advertising. The primary intention of surrogate ads is not to increase the sales of
the product being advertised, but to rather create a brand recall of the desired
product in the mind of target consumers.

The need for Surrogate advertising arises when due to regulatory change in a
country or a region, advertising and promotion of certain product gets prohibited.
It is widely accepted that the concept of Surrogate Advertising started in UK
when strong protests from British housewives against liquor brands targeting their
husbands led to ban on promotion of liquor brands. In response, liquor companies
came up with acceptable products like juice and soda using the brand name of
their liquor product. Indian market adopted a wide use of surrogate ads when a
blanket ban was applied to the promotion of liquor and tobacco products by the

16
Government in September 2000 which led to companies aggressively using
surrogate ads to maintain the brand value of their products. Consequently, Indian
consumers saw surrogate ads after the ban, with ads like Bagpiper club soda,
Kingfisher airlines, Royal Seagram CDs and audio cassettes ensuring their brand
value did not diminish. ITC used a different approach of making Wills the main
sponsor of the Indian cricket team. At present it uses its apparel store Wills
lifestyle to communicate its most widely known cigarette brand. We even have an
IPL team "Royal Challengers" indirectly referring to the flagship liquor product
of the owner company.

Surrogate ads probably reflects the way marketing world evolves and adapts in
response to the regulatory changes, or changing consumer preferences and
methods of communication. Therefore, next time you see IPL cricketers humming
to "Oo la la la la la", rest assure Kingfisher just reminded you of its beer and the
happiness you'll get from having it. By August 2002, the I&B Ministry had
banned 12 advertisements and leading satellite TV channels including Zee, Sony,
STAR and Aaj Tak were issued show cause notices to explain their rationale
behind carrying surrogate liquor advertisements. Product advertising for liquor
and cigarette companies is banned in the country since 1995 by Cable Television
Network (Regulation) Act. According to Rule 7 (2) of the Act, no broadcaster is
permitted to show advertisement which promotes directly or indirectly promotion,
sale or consumption of cigarettes, tobacco products, wine, alcohol, liquor or other
intoxicants, infant milk substitution, feeding bottle or infant food. This ban is now
likely to be extended to advertising of extended brands.

In June 2002, the Indian Information and Broadcasting (I&B) Ministry served
notices to leading television broadcasters to ban the telecast of two surrogate ads
of liquor brands McDowell No.1 and Gilbey’s Green Label. The Ministry also put
some other brands ---Smirnoff Vodka, Hayward’s 5000, Royal Challenge

17
Whiskey and kingfisher beer on a “watch list.” The surrogates used by these
advertisements ranged from audio cassettes, CDs, perfumes to golf accessories
and mineral water.

A market survey in 2001 revealed that advertising has a direct influence on the
consumption habits of 431 million people in India and an indirect impact on 275
million `aspirants from the lower income group. Considering this and realizing
that nearly 50 per cent of the television owners have access to cable channels,
there is no doubt that the hidden call for alcohol consumption behind the
surrogate advertisements is not escaping the eyes of viewers in the world's fourth
highest liquor-consuming country. The very purpose of banning liquor
advertisements is defeated by surrogate advertising. Answering to the notices, Zee
and STAR stopped telecasting the advertisements, followed soon by Aaj Tak and
Sony.

In addition, the I&B Ministry hired a private monitoring agency to keep a watch
on all the advertisements for violation of the Act. These developments led to
heated debates over the issue of surrogate advertising by liquor companies being
allowed on national media. Though the companies involved came out strongly
against the I&B Ministry’s decision, they seemed to have no other choice, given
the highly regulated nature of the liquor business. Analyst remarked that there
was lot of hypocrisy underlying the government policy. They said “on the one
hand they allow these ‘socially bad’ products to be manufactured and sold and
then they deny the manufacturers the right to propagate knowledge of their
products in order to drive sales. If something is bad and cannot be advertised, why
allow it to be sold at all?”

Liquor producers spent heavily on advertising on the electronic media,

particularly TV. Though the broadcasters were bound by the 30 years old

18
advertising code, which stated that “No advertisements shall be permitted which
relates to or promotes cigarettes and tobacco products, liquor, wines and other
intoxicants,” the telecast of such product continued blatantly over the years. More
over the satellite channels garnered about 50% of their revenue from liquor and
cigarettes advertisements. In the peak seasoned it gets almost doubled.

Due to the ban, liquor companies focused more on promotions for brand building.
They started sponsoring events that projected the “glamour” of the brands, like
track racing, car rallies etc. for instance Shaw Wallace Co. one of the leading
liquor companies in India, conducted the Royal Challenge Invitation Golf
tournament, which became an annual event. Some companies also promoted their
product through corporate advertising, distributing free gifts like Caps and T-
Shirts with the brand name and using glow-signs outside the retail outlets. The
ban on advertising of alcohol beverage products has severely handicapped
communication with consumers. The industry is naturally compelled to make the
best use of the channels and media of communications still open to it. Companies
with liquor brands are not advertising liquor products; instead they have extended
the equity of their brands into other fields. Over a period of time these products
have become independent businesses for companies.

However, as the TV was the most effective medium of advertising, surrogate

advertising on TV became popular. The liquor producers seemed to have ensured
that the ban was only on the paper.
In the meantime, some producers entered new segments under the liquor brand or
advertised these products under liquor brand. Most of the liquor producers entered
into packaged water segment, such as Kingfisher Mineral water. McDowell used
surrogate advertising by using its mineral water and soda brands, which generated
additional revenues for the company. In 2014-15, surrogate ads like Bagpiper club
soda, Kingfisher airlines, Royal Seagram CDs and audio cassettes ensuring their

19
brand value did not diminish. ITC used a different approach of making Wills the
main sponsor of the Indian cricket team. At present it uses its apparel store Wills
lifestyle to communicate its most widely known cigarette brand. We even have an
IPL team "Royal Challengers" indirectly referring to the flagship liquor product
of the owner company.

The surrogate advertisements from liquor companies intensified further through

sponsorships of movies, music shows, and other programs and attracting youth.
For instance, Seagram’s Royal Stag was promoted by sponsoring movie related
activities and Indian pop music using the banner Royal Stag Mega Movies and
Royal Stag Mega Music. In late 2001, the broadcasters began airing socially
responsible advertisements sponsored by liquor companies. Surrogate advertising
of liquor brands had intensified like never before on satellite TV channels. These
advertisements attracted criticism from various people. There were numerous
other advertisements selling music cassettes, CDs, water, clothing, fashion
accessories and sports goods --- many of them accused of being sexually
provocative and offensive.

In 2013-14, Seagram’s India was planned to promote its main brands like Royal
Stag, 100 Pipers through sponsorship of movies and other similar initiatives,
which are still out of the purview of the ban.
McDowell Mera No. 1 ad campaign is now being aired with changed products i.e.
from whisky to soda. United Breweries is selling its mineral water under the
“Kingfisher” brand.

20
Exhibit-1

The Advertising Standards Council of India (ASCI) has clarified that as per its
code, the mere use of a brand name or company name that may also be applied to
a product whose advertising is restricted or prohibited is not reason to find the
advertisement objectionable provided the advertisement is not objectionable and
the product is produced and distributed in reasonable quantities and the
objectionable advertisement does not contain direct or indirect cues for the
product that which is not allowed to be advertised.

However, the analyst opined that the ban could turn out to be advantages for the
domestic players. As per the commitment to the WTO agreement, MNCs would
have an unrestricted license to sell their products. After the ban, these MNCs
would not have access to the quickest and most effective form of advertising ---
the TV. Some analyst argued that the ban would not affect the established
domestic players severely. It would only affect the new launches and new brand
building of these companies. The ban was also expected to improve the margins
for these players.

The latest television ad for “AC Black Apple Juice” epitomizes so many things
that are wrong with surrogate advertising in India.
Most of the surrogate advertising is done pretty blatantly with the “harmless”
product being nothing more than a front for advertising the “harmful” brand. So
you have various liquor/cigarette manufacturers resorting to ingenuous ways to
peddle their wares.

Of course there are a very few brands which start off as a surrogate brand, but
over a period of time actually become full-fledged brands in themselves. The

21
 “Wills Sport” clothing line from the manufacturers of “Wills” cigarettes are one
of those rare cases.

But on the whole, surrogate advertising is dedicated towards using an

insignificant, “harmless” product to increase/maintain awareness for their primary
“harmful” brand. And that’s not an easy task. For instance, how do you portray
the essence of a whiskey or vodka or a cigarette using a bottle of bottled water or
a pack of apple juice?

Similarly, "HUM tum or mera Bagpiper". This Bagpiper club soda advertisement,
featuring cine celebrities, is similar to the earlier one for Bagpiper whisky. The
advertisement comes with the same music and punch line as the one for the
popular liquor brand telecast before the ban on liquor advertisements.

Not easy. And guess who/what suffers when faced with this quandary?

1. Consumers - because we have to put up with the lameass, stupid advertising

that’s designed to sell booze/ciggies but pretends to be all about water or apple
juice! It’s like everyone knows what’s going on - the manufacturers know what
the real reason for the ad is, the consumers know what’s really been advertised,
and the government knows that too. So why not either (i) do away with this
wholesale scam and just let them advertise all their stuff, or (ii) ban such
surrogate advertising?

2. Advertising - because ad agencies have to come up with silly ads based on briefs
from clients who are not interested in the surrogate brand, but the primary brand. I
agree some might consider it a worthy challenge to do something like this, but
from what I’ve seen of surrogate advertising in India the output is pretty lame.
Surrogate advertisements are not only misleading, but also false and dishonest in

22
many cases. With surrogate advertising so widespread, this is the moment to
tackle the problem head-on.

There should be stringent regulatory measures to curb the practice, such as:

i) Making transparent laws banning surrogate advertisements for different

products under a single brand name, by amending the Trade Marks Act, for
instance.

ii) Providing 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.

iii) Asking the electronic and print media to adhere to the advertisement codes
and not encourages surrogate advertisements.

iv) Calling on the ASCI address complaints received from consumers against
surrogate advertisements and take appropriate actions immediately.

v) Creating a consumer awareness programme to help people understand the

negative impact of surrogate advertisements.

vi) Adopting strict laws to penalize those companies featuring surrogate

advertisements without any real existence of the product.

vii) Requiring advertising agencies 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.

23
If one believes that honesty is the best policy and truth ultimately gains, the best
policy would be to stand up strongly to the dishonest practices of surrogate
advertising.

Senior sources at IBF also said that the industry body had sent out show-cause
notices to a couple of channels regarding ads of certain alcohol and tobacco
products. Most channels have reportedly complied with the Government panel’s
directive to the extent that the ads of a liquor company – that purportedly makes
apple juice after drinking which anything can happen (‘kuch bhi ho sakta hain’) –
have been taken off air.

PROBLEM STATEMENT

When the Advertising Standards Council of India (ASCI) withdrew its code to
regulate tobacco, liquor products etc. consumer activists were concerned over the
impact of the move.

The issue has taken a new twist with the Central Government deciding to ban
these product companies from sponsoring sports and cultural events. Liquor or
tobacco advertising in banned in India and hence companies that sell these
products have to resort to advertising their wares using less “harmful” products
which carry almost the same names and looks - surrogate advertising.

24
1.6 RESEARCH OBJECTIVES:

Does the surrogate advertisement have any impact on the consumers buying
behaviour for buy the surrogate products?

To find customers perception on surrogate ads.

Do the liquor companies able to utilize the established brand names on surrogate
advertisement?
To know the media pattern, through which the companies able to retain their
brand names through ads.

Do Customers believe on unethical ways of advertising by brand recalling even if

they know that it is a surrogate one?

1.7LIMITATIONS OF THE STUDY:

1. The time schedule given to the researcher was too short; due to which the
researcher was not able to meet more potential customers.

2. There were customers who gave vague as well as no responses to get complete
information needed for the research study.

25
 Chapter 2
LITERATURE REVIEW

26
2.1 Literature Review

Surrogate advertising is advertising which embeds a brand or product message

inside an advertisement which is ostensibly for another brand or product. For
example, a cigarette company might issue public service announcements relating
to a topic such as lung cancer, using the company's logo or distinctive brand
colours in the ads so that people are exposed to the company's branding without
seeing an explicit ad for the company's product. The company would justify the
advertisement by claiming that it's an example of social responsibility.

There are a number of reasons for companies to use surrogate advertising. One of
the most common reasons is to circumvent a ban on direct advertisements of
particular products. Many nations have laws restricting alcohol and tobacco
advertising, for example, so companies use surrogate advertising to market their
products. Techniques used might include advertising another product with the
same brand name, sponsoring community events, issuing public service
announcements, or sponsoring sports teams. All of these activities technically do
not violate the ban on direct advertising, but they still get consumers familiar with
the company's branding. Surrogate advertising may also be used when companies
want to cultivate an image of social responsibility. For example, many health
advocates have criticized advertisements for sweet treats aired during children's
cartoons. A company might pull outright advertising during these time slots and
instead air a series of public service announcements about eating a balanced diet,
with the announcements coincidentally bearing the company's branding.

Pharmaceuticals are another product with advertising restrictions. Historically,

pharmaceutical companies were not allowed to advertise prescription medications
at all. Once this regulation was relaxed, some restrictions were left in place. Using

27
surrogate advertising allows companies to get around regulations. For instance,
the manufacturer of an asthma medication might sponsor informational
commercials about managing asthma, with the medication branding scattered
throughout the advertisement to get consumers used to the brand and to imply that
the medication plays an important role in managing asthma.

28
COMPANIES FOLLOWING SURROGATE MARKETING

LEGITIMATE BUSINESS SURROGATE ADVERTISEMENT

Mc Dowell’s Walt whisky Mc Dowell’s soda/water

Radico khaitan’s 8 pm whisky Radico khaitan’s water

Hayward’s 500 beer Hayward’s soda/water

Derby special Derby special soda

Bacardi liquor Bacardi blast cds and cassettes

Bagpiper liquor Bagpiper soda and cassettes

Four square cigarettes Four square white water rafting

Kingfisher beer Kingfisher bottled drinking water

Smirnoff vodka Smirnoff cds and cassettes

Red and white cigarettes Red and white bravery awards

Pan Parag gutka Pan Parag pan masala

Rajnigandha tobacco mix Rajnigandha pan masala

Chaini Khaini Chaini Chaini pan masala

Gopal Zarda Gopal Supari 132

Pataka 502 Bidi Pataka 502 Tea

29
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, Haywards 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. Previously,
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.

30
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

31
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. The consumer affairs ministry is
looking to curb surrogate advertising by alcohol and tobacco companies as
brand and lifestyle extensions. The government is increasingly becoming
serious about dealing with the issue of misleading ads. It appointed the
Advertising Standards Council of India (ASCI) as its executive arm last week.

Persons in the know say the ministry is pushing amendments to the Consumer
Protection Act, 1986, to prevent companies from indulging in surrogate
advertising. "The view held by the ministry is that surrogate advertising is
misleading since its intention is basically to promote the flagship brand rather
than the extension," said Bejon Misra, noted consumer rights activist, also on
the consumer complaints council of the ASCI, a core group within the
regulatory body that meets twice a month to redress complaints received
against false and misleading ads. Misra, along with a few other consumer
rights groups, has made presentations to the government in the past asking it
to look into the issue of surrogate advertising. At an ASCI seminar in the city
last week, Keshav Desiraju, secretary, consumer affairs ministry, had
indicated his ministry was working to curb surrogate ads.

32
Regulations prevent advertising of liquor and tobacco products on television.
In the past few months, the government's stance has become tougher in the
case of tobacco, with an experts' committee constituted by the Union health
ministry in October 2014 coming out with various recommendations,
including a ban on advertisements of tobacco products at points of sale. The
health ministry had also come out with a draft note around the same time
asking companies to stamp health warnings across 85 per cent of the surface
of cigarette packs. This is yet to be implemented. However, liquor and
cigarettes remain the most taxed products in the country in an attempt to
reduce consumption.

SURROGATE ADVERTISING: EMERGING TREND

A 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-à-vis the entry points for
new players and sustainability of existing ones? Multinationals which would

33
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.

34
So, a safer choice available where companies can exercise their grey cells is
advertising “socially responsible” messages. Take a look at these billboards
which I noticed on a private flyover a few days back. There is also another
print ad in continuation with the Johnnie Walker billboard.

Must say, this is one of the best elements of innovation that I have seen so far.
Though it would be too premature to attribute this to the industry per se, it has
become imperative for the companies to change their line of thought
completely, to work around the system. What are the other practices
companies are looking at?

(a) Companies are getting involved in Sponsorships of events and have

launched their own awards for bravery or lifetime achievements!

(b) Internet advertising has become a lucrative area which has so far not been
delved into. The medium holds a lot of potential to enhance visibility, and
companies have lately realized that.

35
(c) Catchy jingles have become the norm of the day to ensure that their
brands have a high brand recall.

(d) With restrictions in other marketing elements – in terms of pricing and

distribution, companies have ventured into another important element –
Packaging. Innovative packaging makes their brands stand out of the
clutter, and most of the Multinationals are revisiting this element in their
brand portfolio.

Though the industry is not healthy for the young consumers, some processes
and laws need to be formalized and established in the system. Else, innovative
workarounds and arm-twisting of laws would be the norm of the day for the
entire liquor industry!

CONSUMER PSYCHOGRAPHICS AND

SURROGATE ADVERTISING

'Surrogate advertising' is one of the emerging ethical issues in advertising in

India. This is used as a strategy to advertise products like liquor or tobacco -
the advertisement of which otherwise, is banned in our country. It relates to
advertising by duplicating the brand image of one product extensively to
promote another product of the same brand. When consumers look at these
advertisements, they associate these with banned products. Hence, such
products are indirectly advertised, and therefore, influence their behaviour.
There is no doubt that the hidden call for alcohol consumption behind the
surrogate advertisements is not escaping the eyes of viewers of the world's

36
fourth highest liquor consuming country. Hence, surrogate advertising defeats
the very purpose of banning liquor advertisements. The central issue of the
ethical discussion in the present study is regarding the attitude of targeted
consumers towards the practice of surrogate advertising vis-à-vis their
psychographic profile towards advertising in general. The psychographics of
the target audience are important to be discussed since they are the final
evaluators of advertising. The study concludes that surrogate advertising is not
perceived positively by the various sections of the society. Though there were
some positive perceptions found for this practice, on the whole, the attitude of
most of the targeted consumers, i.e., the respondents were more dominating
towards the negative side for the surrogate advertising and they consider it to
be an unethical practice. The ethical perception of the targeted consumers
affects the acceptability of surrogate advertisements and hence, the attitude of
the consumers towards it, with majority of these consumers considering it as
immoral and unethical. The implications thus, are left for the advertisers to
modify and redesign their advertising strategies in accordance to the consumer
psychographics, so that they can find a way out which is more ethical and
positive for the society or their target market rather than resorting to surrogate
advertising.

37
Impact of Surrogate Advertisements on Children

Each day 55,000 children in India start

using tobacco, Gutkha the chewable
tobacco is aimed at the younger
generation of the country. But you may
wonder how these companies manage to
reach the minds of these children when
they are not allowed to advertise these
products.

After the ban the companies opened their doors to surrogate advertisement, an
advertisement has the logo or brand of another company advertised within it.
Let’s take a look at this report done by a French channel on surrogate
advertisements done in India.

One of the biggest surrogate advertisement market is the film Industry

Bollywood, 89% of all the released movies had smoking scenes in them.
Below is a small documentary on smoking in movies, with interesting
statistics on the current scenario in India with regards to smoking.

According to research done by the Salaam Bombay Foundation, 3260 children

between the age of 12 to 17 years from municipal and private schools were
asked to fill out a self-administered questionnaire.

When asked to recall slogans of any tobacco company or brand…

71% recalled Manikchand – Oonche log, oonchi pasand

38
12% recalled Goa – Yahan bhi Khilate hain, whan bhi , Goa No 1

2% recalled Sanket

0.4% recalled Shimla

15% recalled other brands

When asked to associate slogans with brands 63% could associate the slogan
while 37% could not. What kind of a message will a child get from, Oonche
log, oonchi pasand

Some of the observations learnt through this research is that, Gutkha

advertising has had a deep impact on the minds of children although it has
been banned since August 2002. As children cannot easily disassociate
Manikchand Water from Manikchand Gutkha, tobacco manufacturing
companies should not be allowed to use surrogate advertisements. TV and
radio are the hotspots as to where these messages are broadcasted to the
children.

Legal concern – “Blanket Ban on "Surrogate Advertising"

An advertisement unmistakably and profoundly directs one’s life. The extent

to which advertisements persuades a person depends upon its pushing
publicity. The adverse impact of advertisements of unhealthy products is a
matter of concern for this hour. Impact of tobacco, liquor, cigarettes is far
alarming than we can think for one’s health. Due to the widespread
unfavourable impact of advertisement of unhealthy products, Indian
government has always struggled and strived to curb or at least restrict
rampant advertisements of such products by appropriate legislations.

39
Result to the directive of Government to ban advertisements of products that
are averse to health, the major companies of liquor & tobacco sought other
ways of endorsing their products. They have found an alternative path of
advertising through which they can keep on reminding the people of their
liquor/tobacco brands. They have introduced various other products with the
same brand name.

The problem occurs when 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". Surrogate advertising (duplicating the brand
image of one product extensively to promote another product of the same
brand), has become commonplace. Their only objective is to compensate the
losses arising out of the ban on advertisements of one particular product (i.e.
liquor). The companies can always 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. A new weapon of Fill-in or
replacement war.

Surrogate advertisement by Companies

Players in tobacco industry - Wills lifestyle, Four Square white water rafting,
etc. Players in liquor industry – Kingfisher beer, airlines and mineral water,
Royal Challenge golf accessories and mineral water, Bagpiper soda and
cassettes & CDs, Haywards soda, White Mischief holidays, Smirnoff cassettes
& CDs, Teacher's achievement awards, Imperial Blue cassettes & CDs etc.

40
 Chapter 3

INDUSTRY ANALYSIS
THE ADVERTISING INDUSTRY

41
3.1 ADVERTISING

Introduction

Advertising is a non-personal form of communication intended to persuade an

audience (viewers, readers or listeners) to purchase or take some action upon
products, ideals, or services. It includes the name of a product or service and
how that product or service could benefit the consumer, to persuade a target
market to purchase or to consume that particular brand. These brands are
usually paid for or identified through sponsors and viewed via various media.
Advertising can also serve to communicate an idea to a mass amount of people
in an attempt to convince them to take a certain action, such as encouraging
'environmentally friendly' behaviours, and even unhealthy behaviours through
food consumption, videogame and television viewing promotion, and a "lazy
man" routine through a loss of exercise. Modern advertising developed with
the rise of mass production in the late 19th and early 20th centuries. Mass
media can be defined as any media meant to reach a mass amount of people.
Several types of mass media are television, internet, radio, news programs,
and published pictures and articles.

Commercial advertisers often seek to generate increased consumption of their

products or services through branding, which involves the repetition of an
image or product name in an effort to associate related qualities with the
brand in the minds of consumers. Different types of media can be used to
deliver these messages, including traditional media such as newspapers,
magazines, television, radio, outdoor or direct mail; or new media such as
websites and text messages. Advertising may be placed by an advertising
agency on behalf of a company or other organization.

42
Non-commercial advertisers that spend money to advertise items other than a
consumer product or service include political parties, interest groups,
religious organizations and governmental agencies. Non-profit organizations
may rely on free modes of persuasion, such as a public service announcement.

Advertising spends in India are expected to grow 15.5% year on year to Rs

57,485 crore in 2016, according to estimates from media buying agency
Group. Of this, Digital Advertising spends will account for Rs 12.7% of total
spends at around Rs 7,300 crore. Digital is the third highest category of
advertising spends, albeit lagging far behind TV (Rs 27,074 crore, 47.1% of
total) and Newspapers (Rs 17,099 crore, 29.9% of total). Of all the segments,
magazines are expected to decline for a third consecutive year, down by
14.8% year on year, and to around 1% of total advertising spends.
advertising expenditure is on course to grow 4.6% to $579 billion this year
worldwide.

THE AD INDUSTRY TRANSITION

Advertising agencies are the link between the product and the market. They
cannot be classified as just one service provider. As they provide a bundle of
services to make and build a brand.

Advertising agencies first began as space selling agencies. They would buy
space in bulk, then sell it and live on the commission gained. Slowly they
began to give the client more than just one service. Media began to creep in.
And slowly the creative personnel too were made the pillars of the
organization. Today advertising agencies give the clients a 3600 view of their
product.

43
HOW AN AD AGENCY FUNCTIONS?

First the brief is provided by the client that is brought into the company by the
client servicing personnel. The brief is about what the client needs to
communicate to his target audience. Target audience is categorized according
to their income, consumption, purchasing power etc. Once the target audience
for a particular product is identified the strategy to communicate the product is
taken on. The strategies are carefully planned by strategic planners and then
communicated to the creative. The creative team then takes on the task on how
best to communicate the necessary to the common people. Smart headlines,
attractive visuals are then brainstormed among the creative personnel.
Finalized ideas are given birth to on paper, which are then presented to the
client.

Deliberations, presentations follow in the conference room and the final ad to

be released is settled upon. Sometimes rework is demanded, sometimes
corrections are given until the ad is finalized. The estimate for media releases
as requested is placed before the client. In-depth planning is undertaken for
colossal product releases. The media too works on the estimate for days to
finally sum up on the release plan that will give the product and the client
maximum reach.

On release of the ads, feedback from the client’s end is anxiously awaited by
the agency. A good response to the ad only elevates the relationship between
the client and the agency and stands as a motivator for some more good work.

44
DIFFERENT TYPES OF ADVERTISING
Television Advertising

The TV commercial is generally considered the most effective mass-market

advertising format, as is reflected by the high prices TV networks charge for
commercial airtime during popular TV events. The annual Super Bowl
football game in the United States is known as the most prominent advertising
event on television. The average cost of a single thirty-second TV spot during
this game has reached US$3 million (as of 2009).

The majority of television commercials feature’s song or jingle that listeners

soon relate to the product.

Virtual advertisements may be inserted into regular television programming

through computer graphics. It is typically inserted into otherwise blank
backdrops or used to replace local billboards that are not relevant to the
remote broadcast audience. More controversially, virtual billboards may be
inserted into the background where none exist in real-life. This technique is
especially used in televised sporting events. Virtual product placement is also
possible.

Infomercial

An infomercial is a long-format television commercial, typically five minutes

or longer. The word "infomercial" is a portmanteau of the words "information"
& "commercial". The main objective in an infomercial is to create an impulse
purchase, so that the consumer sees the presentation and then immediately
buys the product through the advertised toll-free telephone number or website.
Infomercials describe, display, and often demonstrate products and their
features, and commonly have testimonials from consumers and industry
professionals.

45
Radio advertising

Radio advertising is a form of advertising via the medium of radio. Radio

advertisements are broadcasted as radio waves to the air from a transmitter to
an antenna and a thus to a receiving device. Airtime is purchased from a
station or network in exchange for airing the commercials. While radio has the
obvious limitation of being restricted to sound, proponents of radio advertising
often cite this as an advantage.

Press advertising

Press advertising describes advertising in a printed medium such as a

newspaper, magazine, or trade journal. This encompasses everything from
media with a very broad readership base, such as a major national newspaper
or magazine, to more narrowly targeted media such as local newspapers and
trade journals on very specialized topics. A form of press advertising is
classified advertising, which allows private individuals or companies to
purchase a small, narrowly targeted ad for a low fee advertising a product or
service.

Online advertising

Online advertising is a form of promotion that uses the Internet and World
Wide Web for the expressed purpose of delivering marketing messages to
attract customers. Examples of online advertising include contextual ads that
appear on search engine results pages, banner ads, in text ads, Rich Media
Ads, Social network advertising, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.

46
Billboard advertising

Billboards are large structures located in public places which display

advertisements to passing pedestrians and motorists. Most often, they are
located on main roads with a large amount of passing motor and pedestrian
traffic; however, they can be placed in any location with large amounts of
viewers, such as on mass transit vehicles and in stations, in shopping malls or
office buildings, and in stadiums.

Mobile billboard advertising

Mobile billboards are generally vehicle mounted billboards or digital screens.

These can be on dedicated vehicles built solely for carrying advertisements
along routes preselected by clients, they can also be specially equipped cargo
trucks or, in some cases, large banners strewn from planes. The billboards are
often lighted; some being backlit, and others employing spotlights. Some
billboard displays are static, while others change; for example, continuously or
periodically rotating among a set of advertisements.

In-store advertising

In-store advertising is any advertisement placed in a retail store. It includes

placement of a product in visible locations in a store, such as at eye level, at
the ends of aisles and near checkout counters, eye-catching displays
promoting a specific product, and advertisements in such places as shopping
carts and in-store video displays.

Covert advertising

Covert advertising, also known as guerrilla advertising, is when a product or

brand is embedded in entertainment and media. For example, in a film, the

47
main character can use an item or other of a definite brand, as in the movie
Minority Report, where Tom Cruise's character John Anderton owns a phone
with the Nokia logo clearly written in the top corner, or his watch engraved
with the Bulgari logo.

Celebrities

This type of advertising focuses upon using celebrity power, fame, money,
popularity to gain recognition for their products and promote specific stores or
products. Advertisers often advertise their products, for example, when
celebrities share their favourite products or wear clothes by specific brands or
designers. Celebrities are often involved in advertising campaigns such as
television or print adverts to advertise specific or general products.

The use of celebrities to endorse a brand can have its downsides, however.
One mistake by a celebrity can be detrimental to the public relations of a
brand. For example, following his performance of eight gold medals at the
2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract
with Kellogg's was terminated, as Kellogg's did not want to associate with him
after he was photographed smoking marijuana.

Overview of Advertising Industry in India

The structure of the advertising industry in Asia Pacific has been affected by
globalisation and international alignments creating a smaller number of very
large agencies and the growth of independent major media buying houses.
Very sophisticated software optimisation and planning systems are now
integral to the industry, enabling agencies to offer a unique positioning in the
marketplace to attract new business.

48
American companies are discovering the appeal of marketing their products in
India. With a population of approximately one billion, and a middle class
that's larger than the total population of the United States, there's definitely
money to be made. Local retailers in apparel, food, watches and jewellery
have all increased their average ad spending by almost 50% in the past four
years. Coupled with many other local players big retailing brands are spending
to the tune of Rs 12,000 crores annually on advertising and promotional
activities. This figure, according to industry estimates, was less than Rs 400
crores about 3 years ago. This means the growth has been a whopping 40%.
The local firms are using all the available advertising tools from electronic to
print, outdoor advertising and even models. The advertising and promotional
spending by local brands is substantial during the festival season and almost
70% of the spending is done between September to January. The advertising
industry in India is growing at an average rate of 10-12% per annum. Over
80% of the business is from Mumbai and Delhi followed by Bangalore and
Chennai.

Online Ad Spending in India

Online advertising spending is holding its own and will continue to grow
steadily over the next several years. Marketers are responding to the economic
challenges with new techniques and strategies, along with research data to
prove their effectiveness. According to statistics, online ad spending has
reached $25 billion. Nonetheless, nearly three-quarters of web advertising
space goes unsold and more than 99.7 per cent of banner ads are not clicked
on.

49
 Scope of Advertising Industry in India

The advertising industry in India has several competitive advantages:

 India has a rich pool of strategic planning, creative and media services
personnel: Indeed, Indian advertising industry has been exporting senior-level
talent to many countries, particularly to the Gulf, South-East Asia, China, the
UK and the US. Indian talent is recognised and respected in global agency
networks.

 No other country has access to so many trained management graduates who

can provide strategic inputs for brand and media planning.

 Indians are multicultural: we learn at least two languages and that gives us a
head start in understanding cultural diversity.

 Most of the top 20 agencies in India have a global partner or owner, which
should provide an immediate link to global markets.

 Our production standards in TV and print have improved: With a vibrant

animation software industry, we have access to this area of TV production.

 India's advanced IT capabilities can be used to develop Web-based

communication packages for global clients.

The Indian advertising industry is a very upcoming and promising sector.

However, there is severe competition and survival is for the fittest and the
best. In this sector what matters the most is knowledge and experience of the
work and the industry and its functioning. The more the knowledge you can
provide the better the productivity you give.

50
The various departments in an ad agency

The number of departments varies from agency to agency depending on their

size. However, the main divisions are as follows:

Account Servicing:

The advertising industry in India has several competitive advantages:

 India has a rich pool of strategic planning, creative and media services
personnel: Indeed, Indian advertising industry has been exporting senior-
level talent to many countries, particularly to the Gulf, South-East Asia,
China, the UK and the US. Indian talent is recognised and respected in
global agency networks.

 No other country has access to so many trained management graduates

who can provide strategic inputs for brand and media planning.

 Indians are multicultural: we learn at least two languages and that gives us
a head start in understanding cultural diversity.

 Most of the top 20 agencies in India have a global partner or owner, which
should provide an immediate link to global markets.

 Our production standards in TV and print have improved: With a vibrant

animation software industry, we have access to this area of TV production.

 India's advanced IT capabilities can be used to develop Web-based

communication packages for global clients.

51
The Indian advertising industry is a very upcoming and promising sector.
However, there is severe competition and survival is for the fittest and the
best. In this sector what matters the most is knowledge and experience of the
work and the industry and its functioning. The more the knowledge you can
provide the better the productivity you give.

Client servicing is a crucial part of the advertising industry. The main aim of
this department is to generate customers and business for the company and
also develop the existing customer relationships. This department also covers
the responsibilities of the public relationship officers. Advertising can be done
through television media, print media and the internet. Similarly, client
servicing for the customers is mostly done by using the internet as the
medium. A lot of advertisements are campaigned by using internet and email
promotions. A client servicing agent would also need to design new schemes
to attract many companies to take their offer. Pricing and design models of the
offer are also covered by this department. To be able to design good ad
campaigns, the agent should also be capable of doing appropriate online
research. This job also needs the person to be creative and progressive. The
person should be abreast of the industry's changing facets.

Account Planning:

Account planners combine research and strategic thinking. If the account

manager is closest to the client, the account planner is closest to the consumer.
The account planner is the person on an advertising team who is most likely
to have spent time with consumers using the product, or in focus groups
asking them about how they think about the product. And in an era in which
the brand is sometimes at least as important as a specific product (for
instance, Nike as a brand has a place in the culture that far exceeds the
particular performance characteristics of their shoes), the account planner is
responsible for understanding the place of the brand in the consumer
imagination. They are different than a simple research function in that they

52
stay engaged in the campaign process throughout. Rather than offering
research insights to others at a single point in time, they use research to
continue to provide insights within the campaign process.

Creative Department:

The people who create the actual ads form the core of an advertising agency.
Modern advertising agencies usually form their copywriters and art directors
into creative teams. Creative teams may be permanent partnerships or formed
on a project-by-project basis. The art director and copywriter report to a
creative director, usually a creative employee with several years of experience.
Although copywriters have the word "write" in their job title, and art directors
have the word "art", one does not necessarily write the words and the other
draw the pictures; they both generate creative ideas to represent the
proposition (the advertisement or campaign's key message). Creative
departments frequently work with outside design or production studios to
develop and implement their ideas. Creative departments may employ
production artists as entry-level positions, as well as for operations and
maintenance. The creative process forms the most crucial part of the
advertising process.

As the project was part of the client servicing team at O & M, a small brief on
what client servicing is all about, how it functions, the various key positions
and the importance of the Client servicing team in an Ad company is
mentioned below.

THE CLIENT SERVICING TEAM

The Client Servicing department is the link between the client and the agency.
It is an important part of any advertising firm like what the heart is to the

53
body. This department is responsible for meeting prospective clients and
getting business for the company. It involves a study of the client, the product
and the market; an analysis of consumer behaviour and marketing; knowledge
of all available media and their cost effectiveness, and a strategic plan to be
presented to the client. Those in client servicing must therefore interact with
clients, gather information, oversee research where necessary, gauge consumer
attitudes and based on this, work along with the various departments of the
agency to formulate the most appropriate and effective advertising strategy
within the specified budget. To be an effective client-servicing person, the
candidate has to have a thorough knowledge of the client's business and also
know his weak points so that, through advertising and communications, the
gap can be minimized.

An accounts executive who works in the client servicing department takes

care of all the monitory dealings. He should know the most effective way to
advertise client’s product or service i.e. the media and their cost effectiveness.
Account executives should also have an idea about market research and target
audiences.

Client servicing is a crucial part of the advertising industry. The main aim of
this department is to generate customers and business for the company and
also develop the existing customer relationships. This department also covers
the responsibilities of the public relationship officers. Advertising can be done
through television media, print media and the internet. Similarly, client
servicing for the customers is mostly done by using the internet as the
medium. A lot of advertisements are campaigned by using internet and email
promotions. A client servicing agent would also need to design new schemes
to attract many companies to take their offer. Pricing and design models of the
offer are also covered by this department. To be able to design good ad
campaigns, the agent should also be capable of doing appropriate online
research. This job also needs the person to be creative and progressive. The
person should be abreast of the industry's changing facets.

54
Advertising Client Servicing Education

The main role of client servicing agent is selling. He or she would need to sell
the products and packages of the company. For this, a degree in Marketing or
an MBA is required. These are the basic qualifications. However, an added
knowledge of Computers, Microsoft Office tools and other qualifications in
multimedia design is also crucial for the job functionalities.

The MBA degree is a must because the person performing this role needs to
have the industry knowledge and also technical knowledge of the market
dynamics in order to be able to design and modulate good packages for the
company. An additional education in Public Relation
Skills could also very helpful to perform the job role. A person opting for this
role could choose to do additional advertising courses after completing their
MBA to take up a job in the client servicing industry.

Advertising Client Servicing Skills

The key skills required to perform this job role are mainly used in business
development and client servicing. The business development aspect of the job
would need the person to talk to new customers and prospect new business for
the company. This would require the person to have excellent verbal
communication skills, as well as a convincing ability and marketing tactics to
be good at the job. The job prospects are high in the client servicing industry
and a person can hope to go to higher levels using their verbal skills.
A person doing this job should have a dynamic personality. The client
servicing part of the job would also require all of the above mentioned
qualities in a person, and simultaneously the person should also have problem
solving abilities. This role mainly involves keeping good relations with
existing customers and making them continue with the business and also

55
prospect for more business. The majority of relationship management is done
by the personnel of this department.

Advertising Client Servicing Role

The job roles in this department are Account servicing manager and
executives, Account managers, and marketing executives. An account would
be company specific.
Big advertising companies treat each individual company as an account for
example like a Pepsi Account, or a Coca Cola account. An account manager
would be a person who is handling all the needs of that specific company and
also improving the business aspects simultaneously.

Advertising Client Servicing Benefits

The benefits of this job role are that the person working in client servicing can
improve their business contacts and also earn a good reputation among the
fellow business community. These people are the first contact and are the
main relationship managers, so they can have many contacts in the industry
which will help them in the future.

56
 Chapter 4

THE COMPANY PROFILE

57
 OGILVY AND MATHER INDIA LTD.

Ogilvy & Mather is an international advertising, marketing and public

relations agency based in Manhattan and owned by the WPP Group. The
company operates 497 offices in 125 countries with approximately 16,000
employees.

Ogilvy & Mather's services include advertising, public relations, direct

marketing, and digital media. Within the company there are a number of units
that handle different areas of focus. Ogilvy Public Relations is responsible for
the agency's public relations offerings, including branding, public
affairs, corporate communication, and digital reputation and influence. Ogilvy
One is the agency's direct marketing unit. It also advises clients on customer
engagement. The firm's Ogilvy CommonHealth Worldwide unit focuses on
healthcare communications and marketing. The agency handles production
work through Hogarth & Ogilvy, a joint venture between Ogilvy & Mather
and Hogarth Worldwide, formed in 2015. Neo@Ogilvy is a unit of the agency
that offers digital media services to all of Ogilvy & Mather's disciplines. As of
2013, sales activation and shopper marketing are administered through
Geometry Global, a unit formed through the merger of several WPP agencies,
including what was previously known as Ogilvy Action.

Ogilvy & Mather India created the slogan "Incredible India" for the
country's Ministry of Tourism in 2002. The campaign targeted an international
audience and aimed to boost tourism. The initial advertisements highlighted
the breadth of Indian culture and resulted in an increase of two-to-three
million tourists per year. As of 2016, the slogan is still in use.

58
History
Ogilvy & Mather was founded in 1948 by David Ogilvy, as "Hewitt, Ogilvy,
Benson, & Mather" in Manhattan. The company became a leading worldwide
agency by the 1960s. Central to its growth was its strategy of building brands
such as American Express, BP, Ford, Barbie, Maxwell House, IBM, Kodak,
Nestlé, and Unilever brands Pond's and Dove.

Ogilvy & Mather was built on Ogilvy's principles, in particular, that the
function of advertising is to sell and that successful advertising for any
product is based on information about its consumer.

His entry into the company of giants started with several iconic campaigns:

"The man in the Hathaway shirt" with his aristocratic eye patch; "The man
from Schweppes is here" introduced Commander Whitehead, the elegant,
bearded Brit, bringing Schweppes and ("Schweppervesence") to the U.S.; "At
60 miles an hour the loudest noise in this new Rolls-Royce comes from the
electric clock"; and "Pablo Casals is coming home – to Puerto Rico", a
campaign that Ogilvy said helped change the image of a country and was his
proudest achievement.

One of his greatest successes was "Only Dove is one-quarter moisturizing

cream". This campaign helped Dove become the top selling soap in the U.S.

In 1989 The Ogilvy Group was purchased by WPP Group.

59
AIMS AND OBJECTIVES

Ogilvy & Mather aims to create “Great Work, That Works” to solve client
issues. The business environment is rapidly changing due to the technological
evolution. We aim to drive changes, solve issues, and to promote business
growth.

We have worked on the reform mainly in the creative and digital disciplines
since 2012. The reform is steadily bearing fruit. For example, our creative
work is often picked up by domestic and international media. While the
number of projects from existing and new clients is rapidly increasing.

In August 2014, to enhance our flexible proposal capabilities responding to

the POE era, we fully renovated the office space.

We will have our 20th anniversary next year. We will continue to provide
effective and fully creative proposals with a single-minded goal of
maximizing the client profit without being bound by the business practice of
Japanese advertising industry and placing disproportionate weight on specific
media.

Ogilvy & Mather

60
 Clients

The major clients of O&M are: -

➢ American Express ➢ Kraft

➢ Amway ➢ Lenovo
➢ British Gas ➢ Mattel
➢ BP ➢ MetLife
➢ Citizens Financial Group ➢ Motorola
➢ Cisco ➢ Nestle
➢ Coca-Cola Company ➢ NexCen Brands
➢ DHL ➢ SAP
➢ DuPont ➢ Siemens
➢ Gap ➢ TABASCO
➢ Gillette ➢ Tobacco Institute
➢ GlaxoSmithKline ➢ Unilever (Parent Company)
➢ IBM ➢ Vodafone
➢ Kodak ➢ Ford Motor Company
➢ Adidas ➢ Intel Corporate

61
OGILVY AND MATHER INDIA LTD: AT A
GLANCE

• A subsidiary of WPP Group. Global revenues US$ 4. 9 billion

• One of India’s leading advertising agencies, 800 employees, over 300

domestic and MNC clients. O&M’s International’s 5th largest operation in
terms of profit.

• Ranked India’s number one agency by Brand Equity survey on

leadership, creative ability, investment in employees, client servicing, most
influential people and hottest creative directors.

• Factors for success: Quality human resources, first mover advantage in

introducing global practices

• For O&M, India is: a global sourcing hub for creative and non-creative
services. Have back office operations in Bangalore

• Future plans India: Increase operations for the global clientele.

Establish development centre’s for database marketing, B2B communications
and creative international clients.

62
OBJECTIVES
OF
O AND M

63
WHAT OGLIVY AND MATHERS CAN DO

We offer our clients the following six benefits

Ogilvy & Mather Japan breaks through the conventions and stereotypes of
Japanese advertising to provide innovative services that go beyond typical
media and communication techniques.

1. World-class creative works

We put the emphasis on high quality and world-class creative work which
messages can be reached deep inside consumers. What creative work wins the
hearts and minds of people varies by market. Even for global clients, we
sometimes develop our unique expression without being bound by global
creative work.

2. One-step ahead digital marketing

With the penetration of the smartphone and social media, the amount of
information consumers can receive has dramatically increased. This has made
their purchase behaviour even more complicated than ever before. Now it is
even more complex to analyse a consumers purchase behaviour to develop a
brand engagement strategy.

64
Ogilvy & Mather draws upon the MOT (moment of truth), which is the
important moment in the optimal purchase behaviour, when proposing an
effective customer engagement and digital marketing strategy. Using our
knowledge and best practises accumulated through the use of accumulated
data within the global network enables us to contribute to your business
growth. The Social@Ogilvy team in the Ogilvy & Mather Group is the
world’s largest media strategist network. It consists of social media and digital
experts from around the world. In this network, experts of social media
marketing, social shopping, social CRM, social listening and analytics work
with each other to offer social solutions.

3. Well-balanced IMC and SOE strategies without placing

disproportionate weight on specific media or channel

Most Japanese advertising agencies work on the business principle of making

profit by selling media.

This makes their media selection biased towards making profit. We choose the
media, be it digital, social, TV, newspaper web, In- store, OOH and PR, that
best relates to the client’s needs.

We can do this as our business model doesn’t rely on our media buying
making us profit. This idea of media neutrality, means our relationship with
clients is very different from our competitors who use this practise.

We set out to clearly understand the client’s needs, to determine what the
issues are, their targets and future image, to propose media and create
proposals that will enable them to continue to grow.

In other words, being media neutral is a method in which we can build a true
partnership between clients and the advertising agency.

65
 4. Flexible team formation to meet client needs

Ogilvy & Mather calls on the best talents among its staff across disciplines to
form a team that can best address a client’s issues. All staff are professionals
in specialized fields with brand leaders at the core. Since a team is not bound
to specific communication areas or organizations, we are able to form the best
team in a flexible manner for all assignments.
This is a major strength of the whole Ogilvy & Mather network.

5. Fair and transparent compensation system what Ogilvy

& Mather Can Do

Ogilvy & Mather, having adopted the media neutral mentioned above, also use
the fee system where payment is based on actual working hours used for
planning a project or developing creative work. Not the commission system
based on the media buying. The fee is decided on the basis of the scope of
work, staff involved and the working hours, clarifying in detail the expected
man hours. Therefore, the client can clearly see where costs incurred for
which work and adjust the size and allocation of costs within their budget.

In some cases, Ogilvy and Mather enters an incentive agreement known as the
“contingency fee” agreement. Where we make a profit by the client being
successful. By daringly choosing this system, we can share the motivation
with the client. This contributes to us building true partnerships with our
clients.

66
 6. Perspective, talents and knowhow only the global

network can have

Ogilvy & Mather through a network of more than 500 offices in 126 countries
provides services to Fortune Global 500 company, Japanese companies and
other organizations. In the network, there are more than 22,000 employees,
using more than 50 languages. We provide services from the global
perspective, using the accumulated knowhow and talents we have working
around the world., This is one of Ogilvy’s major strengths.

67
HOW IT WORKS AT THE HUB?

68
 Chapter 5

RESEARCH METHODOLOGY

69
 5. RESEARCH METHODOLOGY:
On defining the objective of the project, a plan was developed to gather
information most efficiently. Decisions were taken on the data sources,
sampling plan, research tools. Research is essentially a systematic enquiry
seeking facts through objective verifiable methods in order to discover the
relationship among them to deduce from them broad principles of laws.

5.1 TYPE OF STUDY:

As the characteristics of a certain group the certain variables are to be
determined, a descriptive method is chosen for this study. The descriptive
research portrays accurately the characteristics of a particular individual,
situation or a group.

The descriptive research includes surveys and fact enquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs
as it exists at present. The major characteristic of this method is the researcher
has no control over the variables, he can only report what has happened or
what is happening.

5.2 SOURCE OF DATA :-

· Primary data: it includes data collected directly from the customers in
Mumbai city so as to meet the direct requirements of the investigation at
hand.
· Secondary data: it includes data from magazines, websites and reference
books.

5.3 METHOD:
· The research is done through a survey in the form of an interaction with
about 14 main questions as points of reference. The interaction is done
with the target group at different places in the Mumbai city.

70
5.4 SAMPLING TECHNIQUE
Non –probability sampling was adopted to conduct the survey. Customers
were selected on the basis of ease of access. So convenience sampling was
carried out for collecting primary data. In this method a desired number of
sample unit is selected deliberately or purposely depending
upon the object of the enquiry, so that only the important items representing
the true characteristics of the population are included in the sample.

5.6 SAMPLE SIZE:

A sample size of 30 respondents was interviewed through the interactive
methodology.
The interaction was limited to 5 minutes wherein discussion happened about
the choice of brands, perception about surrogate advertisements. Also
questions related to various brand preferences and their purchase intention was
posed.

5.7 DATA COLLECTION METHOD

Data collection has been done through a very useful & popular survey method.
The survey was conducted through personal interviews to study the impact of
surrogate advertisements on the customers buying behaviour to buy the
surrogate products. To understand each individual response, the personal
interview method is better than other methods like telephonic interviews,
mailing questionnaire etc. Because this method gives the researcher enough
flexibility to ask any other question which is relevant for research.

5.8 DATA COLLECTION INSTRUMENT

The survey method was used for the research; the personal interviews were
conducted with the help of a structured questionnaire.

71
5.9 STATISTICAL TOOLS USED FOR ANALYSING THE
DATA
Percentage method
Graphical Representation using Figures & Bar diagram

CRITERIA TAKEN FOR SAMPLES

1. The sample size of 30 is for representative of the population.

2. Respondents have no bias.

3. Only people know surrogate advertisements are taken as samples.

72
 Chapter 6

DATA ANALYSIS
AND
INTERPRETATION

73
DATA INTERPRETATION

Analysis of data involves a number of closely related operations that are

performed with purpose of summarizing the collected data and organizing
these in such a manner that they will yield answer to the research questions.
The term analysis refers to the computation of certain measures along with
searching for patterns of relationship that exist among data group.
Interpretation is often inextricably interwoven with analysis; it should more
properly be conceived as a special aspect of analysis.

Interpretation is necessary for the simple reason that the usefulness and utility
of research findings lie in proper interpretation. The statistical interpretation
shows various responses relating to the variable. The analysis and
interpretation of data lead the researcher to the objectives of the study. It is
through interpretation that the research can well understand the abstract
principle works beneath his findings.

Data Analysis

Percentage Method

74
6.1 Most seen Media used by the people for watching the
advertisements

Valid Cumulative
Frequency Percent Percent Percent

Valid print media 15 15.6 15.6 15.6

Radio 5 5.2 5.2 20.8

television 48 50.0 50.0 70.8

Internet 15 15.6 15.6 86.5

Mobile 13 13.5 13.5 100.0

Total 96 100.0 100.0

Source: Market Survey

print
media

Radio

television

Internet

75
 Findings:

50% of the people uses Television, 15.6% for Print media and Internet,13.5%
for Mobile and 5.2% on Radio to Refer the media.

Inference:

The question is to find out the effective means of media advertising, through
which television

advertising is more reachable than any other media advertising.

6.2 How often people watch the advertisements of alcohol

Cumulative
Frequency Percent Valid Percent Percent

Valid Don’t remember 19 19.8 19.8 1 9.8

Not at all 7 7.3 7.3 2 7.1

Rare 42 43.8 43.8 7 0.8

Occasional 15 15.6 15.6 8 6.5

Regular 13 13.5 13.5 1 00.0

Total 96 100.0 100.0

Source: Market Survey

76
 50
45
40
35
30
25
20

15 Series1

10

Don’t Not at all Rare Occasional Regular

remember

Findings:
Out of 96 respondents 4 3.8 % of people were seeing rarely, 19.8% were don’t
remembering,7.3% were not at all,15.6% regularly seeing surrogate advertisements of
alcohol.

77
6.3 Purchase of surrogate Product

Cumulative
Frequency Percent Valid Percent Percent

Valid Never 10 10.3 10.3 10. 3

Occasionally 28 28.9 28.9 39. 2

Often 38 39.2 39.2 78. 4

Regularly 21 21.6 21.6 100 .0

Total 97 100.0 100.0

Source: Market Survey

Findings:

From above figure 39.2% people often, 28.9% occasionally, 21.6% regularly, 10.3%
never buy surrogate product after see the advertisement on media.

Inference:

Figure shows surrogate products have sufficient m

market by surrogate advertisements.

45
40
35
30
25
20
15 Series1
10
5
0

78
6.4 Which Advertisement is remembered most by the people

Cumulative
Frequency Percent Valid Percent Percent

Valid Bacardi 24 25.0 25.0 25.0

Smirnoff 10 10.4 10.4 35.4

Royal Challenge 13 13.5 13.5 49.0

Kingfisher 40 41.7 41.7 90.6

McDowell’s 9 9.4 9.4 100.0

Total 96 100.0 100.0

Source: Market Survey

Bacardi
Smirnoff
Royal Challenge
Kingfisher
McDowell’s

Findings:

Majority of people remember king fisher brand of 41.7 % when compared to

Bacardi, 25.0%; Smirnoff, 10.4 %; royal challenge 13.5% and Mc dowells9.4 %.

Inference:Among above data’s people remember Bacardi and kingfisher the

most, as it is shown continuously through several medias. The advertisements
shown will depends on the geographical area they belong to.

79
6.5 What made the people to remember the Advertisement

Cumulative
Frequency Percent Valid Percent Percent

Valid Celebrities 36 37.5 37.5 37.5

Creativity 30 31.3 31.3 68.8

Voice 7 7.3 7.3 76.0

Wordings 14 14.6 14.6 90.6

Logo Familiarity 9 9.4 9.4 100.0

Total 96 100.0 100.0

Source: Market Survey

40

30
20
10
0
Celebrities Creativity Voice Wordings Logo

80
 Chapter 7

FINDINGS, CONCLUSION
AND
SUGGESTIONS

81
 7.1 FINDINGS

 Out of different Medias for advertisement, it is found that television

advertising is more effective and reachable to the customers.

 The advertisements of King Fisher and Bacardi are remembered more,
since repeated ads are able to create brand image on such products

 Customers identifies the surrogate products in the market, with their
existing brand names of original product.

 It’s the effective use of celebrities and creativity, the surrogate products
make their product success.

 People remind only continuously seen surrogate advertisements, it means
more areas of advertisements to be explored.

 Surrogate advertisements induces the customer to try the product, which
means it hit the mind of customer directly.

 Companies had to concentrate since customer is looking for ethical aspects

also regarding the surrogate advertisements

82
7.2 CONCLUSION
This study had conducted to know the knowledge and perception of customers
about surrogate advertisements in the Bangalore city and analyses the factors
for knowing the surrogate advertisement have any impact on the consumers
buying behaviour for buy the surrogate products. It got understood that the
brand is able to make the customers to purchase the product. During the study
a sample of 96 respondents were analysed that customer’s purchasing style has
any relation with the surrogate advertisements shown through medias and to
know what interest elements did the customer find in them in order to use of
surrogate products. The knowledge of customer, their preferences and
knowledge are analysed. The data were filled by questionnaire method.

It’s mainly though the brand name of established brands these products are
made to meet the company requirements, i.e.; to make maximum mileage from
the existing brands. It’s through the existing brands of companies were that
existing in the market. Moreover, the knowledge and awareness level about
surrogate advertisements were also low, but when explained them, everybody
are known and thus selected for sampling purpose. The main reasons given by
the respondents for not knowing about most of surrogate advertisements are
they are not exposed to see that many times So, with this research it was
concluded with an underline that effective surrogate advertisements induce the
customer to purchase surrogate products.

83
 7.3 SUGGESTIONS

 As the people see surrogate advertisements, through different medias, but

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

84
BIBLIOGRAPHY

85
 BOOKS REFERRED

 Philip Kotler, Kevin Lane Keller, Marketing Management, (12th edition,

New Delhi, Pearson Education,2006)

 Malhotra. N.K, Marketing Research: An Applied Orientation, (4th edition,
New Delhi, Pearson Education,2006)

 Advertising management concept and cases by Mahendra Mohan

 Ogilvy on Advertising by David Ogilvy

WEBSITE

 www.ogilvy.com


 www.ogilvyindia.com

 http://en.wikipedia.org/wiki

 www.marketingresearch.com

 www.researchandmarkets.com

86
ANNEXURES

87
(THROUGH ALCOHOL AS EXAMPLE)

NAME…

QUALIFICATION…

Please supply the following details about yourself:

Age:

Sex: male female

Geographic Location: a) Rural b) Urban

1) From which media you used to watch the most in advertisements? (Tick one)

a) Print media b) Radio c)Television d)Internet e)Mobile

2) Do you see any Advertisements of alcohol?

a) Regular b) Occasional c)Rare d)Not at all e) Don’t remember
3) Do you know about surrogate advertisements?
a) Yes b) No

4) Do you buy the surrogate products like soda; water etc. after seeing their Ads
on the media?

a) Never b) Occasionally c)Often d)Regularly

5) From the following alcoholic brand’s surrogate advertisement, u sees the most?
(Tick one)
a) Bacardi b) Smirnoff c) Royal challenge d) King fisher

6) What made you to remember that product? (Tick one only)

a) Celebrities b) creativity c) voice d) wordings e) Logo

7) Do you think that advertisement of such product is required?

a) Yes b) No

88
8) How will you evaluate such advertisements? (Tick one only)

a) Entertaining b) Boring c) Informative

d) Misguiding e) Disturbing

9) What is your opinion about such advertisement of product which has banned in
India?

a) Strongly Disagree b) Disagree c) Neither Agree or disagree

d)Agree e) Strongly agree

10) Do you think that the Advertisements on the media will have any Impact
on the sales of surrogate products?

a) Definitely will not affect b) Probably will not affect c)Undecided

d) Probably will affect e) Definitely will affect

11) The television ad for “Bacardi” creates strong misleads with respect
to surrogate advertisements in India. Do you think so?

a) Definitely will not think b) Probably will not think c) Neutral

d) probably will think e) definitely will think

12) Do you recall the original product while looking at the surrogate ads?

a) Definitely b) Most probably c)Occasionally d)Not at all

e) Don’t remember

13) Does the ad induce you to try the original product?

a) Never b) Occasionally c)Sometimes d)Often e)Regularly

14) What you feel, whether liquor advertising and its marketing when
compared to any products is ethical in India …?

a) Strongly Disagree b) Disagree c) Neither Agree or disagree

d) Agree e) Strongly agree

89