Banning Surrogate Liquor Advertising

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Case Details:

Case Code : MKTG024
Case Length : 13 Pages
Period : 1999 - 2002
Pub Date : 2002
Teaching Note : Available
Organization : Archies Greetings
Industry : Advertising
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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About Surrogate Brands

Even after the ban, liquor companies continued to advertise their drinks in the form of surrogate advertisements. In this type of advertisement, a product other than the banned one is promoted using an already established brand name.

Such advertisements or sponsorships help in brand building and contribute to brand recall. The product shown in the advertisement is called the 'surrogate.' The surrogate 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 using a liquor brand name also falls in the category of surrogate advertising. In late 2000, a group of broadcasters, who were members of the Indian Broadcasting Foundation (IBF), submitted their recommendations on surrogate advertising to the I&B Ministry...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

The Debate

The banning of surrogate advertisements for liquor brands became a very controversial and sensitive issue. Liquor producers felt that while the government allowed them to do business, it did not allow them to do so in a profitable manner. Liquor companies argued that the ban would severely affect the sales...

What Lies Ahead?

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)...


Exhibit I A: Sales of Wines, Spirits & Liquor Companies
Exhibit I B: Marketshares of Wines, Spirits & Liquor Companies
Exhibit II A: Sales of Beer Companies
Exhibit II B: Marketshares of Beer Companies
Exhibit III: Cable TV Act 1995: 2000 Amendments Related To Liquor Ads
Exhibit IV: Surrogate Television Advertisements - I
(Apple Juice Using The Aristocrat Brand)
Exhibit V: Surrogate Television Advertisements - II
(Mineral Water Using The Green Label Brand)

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