Banning Liquor Surrogate Advertising
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THE DEBATE Contd..The restrictions on the
liquor industry were viewed by many critics as attempts by the government to
disassociate itself from the social evils associated with alcohol
consumption. However, some critics observed that while the government
imposed many restrictions on the liquor company; it also earned a
significant portion of its revenues (Rs 200 billion in 2000 for the whole
country) through levies on liquor sales.
The issue of surrogate advertising involved even media companies, as they
had to forego substantial revenues as a result of the ban. According to
broadcasters, the government should put in place a ‘reasonable'policy,
which somehow struck a balance between the social and monetary aspects of
the business of alcohol.
WHAT LIES AHEAD
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In August 2002, broadcasting industry sources revealed
plans to put in place measures for self-regulation and monitoring, even
before the I&B Ministry took concrete steps in this regard. The
broadcasters who were members of the IBF, announced that they would come
up with an advertising code specific to surrogate advertising. IBF set
up a sub-committee that included among others, with L. S. Nayak
(Executive Vice President, Star TV), G Krishnan (CEO, TV Today) and Manu
Sawhaney (MD, ESPN-Star Sports).
Apart from formulating the advertising
code, the committee would monitor the advertisements that appeared on
the TV channels. Bhuvan Lal said, “We would like to clear any such
advertisement with the committee and nip any offending advertisements at
the drawing table.” |
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Around the same time, apart from the 12 ads banned earlier, the I&B
Ministry was in the process of issuing show-cause notices to AXN and Zee
for two advertisements promoting Aristocrat Apple Juice and Whytehall.
The controversy surrounding debate surrounding surrogate
advertising was undoubtedly the result of the government's and liquor industry's
age-old tussle of revenues versus morality. Ashoke Bijapurkar, President, B-MRP
Communications[8] said, “This brings us to the question being debated: should
surrogate advertisements be banned? I feel the real question to be asked is:
should liquor and tobacco advertising be banned?”
Following the ban, most liquor companies again explored alternative promotional
activities. Industry watchers remarked that the ban would affect the channels
more than the liquor companies themselves. The companies might actively resort
to sponsorships of sports events, dance and music programs, and other fun-filled
activities. Some of the major domestic companies were considering the use of the
Internet as an effective marketing medium.
QUESTIONS FOR DISCUSSION:
1. ‘By banning advertisements for liquor, the government is trying to
disassociate itself from the social evils associated with alcohol consumption.'Critically comment on this statement in light of the ban on direct and surrogate
advertisements for liquor.
2. Do you think surrogate advertisements by liquor companies were banned because
of the criticism they received? Give reasons to support your answer. Also,
discuss the advantages and disadvantages of using surrogate advertisements (for
a liquor company in particular and also for any other type of company).
3. As a part of a team responsible for the marketing of a leading liquor brand,
what measures would you suggest to overcome the limitations imposed due to the
ban on surrogate advertising? Does the use of ‘socially responsible'advertisements go against the interests of a liquor company? Analyze.
EXHIBIT I SALES OF WINES, SPIRITS & LIQUOR COMPANIES
EXHIBIT II SALES OF BEER COMPANIES
EXHIBIT III CABLE TV ACT 1995: 2000 AMENDMENTS RELATED TO LIQUOR ADS
ADDITIONAL READINGS & REFERENCES:
[8] BRP is a high-end public relations company with expertise in reputation
and perception management.
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