Banning Liquor Surrogate Advertising



Themes : Advertising and Promotion
Period : 1999-2002
Organization : Archies Greetings
Pub Date : 2002
Countries : India
Industry : Advertising

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Case Code : MKTG024
Case Length : 13 Pages
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Banning Liquor Surrogate Advertising | Case Study

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About Surrogate Brands Contd...

In the mean time, some liquor producers entered new segments under the liquor brand or advertised these products under the liquor brand. Most of liquor producers entered into the packaged water segment, such as Kingfisher Mineral water. Some companies seemed to be using the ban to their advantage. McDowell's mineral water and soda brands served as surrogates for their liquor brand and also generated additional revenues for the company. To expand this segment, the company franchised its bottling and sale of purified drinking water and soda and made them available in more than 75 cities in the country.

In early 2001, SWC started marketing its range of golf accessories under the liquor brand Royal Challenge. It also launched a new range of golf accessories, including graphite shafted golf sets (with lifetime warranty), golf bags, caps, and gloves. SWC also started a quarterly golf publication that which provided information on the latest happenings on golf.

The company also entered into agreements with the Indian Golf Union and the International Management Group to promote the game in India. It also announced that India's flagship Golfing Event - the Indian Open - would be sponsored by the company till 2006. In late 2001, SWC announced its decision to enter the packaged water market, under its well-known beer brands Hi-Five and Lal Toofan.

In 2002, it named it soda water Royal Challenge Premium Sparkling Water6 to leverage the company's flagship liquor brand Royal Challenge. According to industry watchers, SWC was launching Sparkling Water to use it as a surrogate for its liquor brand.

They were of the view that, following the ban on advertising, liquor companies were forced to look at innovative ways of building their brands. The number and range of surrogate advertisements increased as liquor producers started sponsoring movies, music shows, and other programs attracting youth. For instance, Seagram's Royal Stag was promoted by sponsoring movie-related activities and Indian pop music under the banners Royal Stag Mega Movies and Royal Stag Mega Music.

It promoted its 100 Pipers brand by sponsoring a series of performances by fusion music artists under the name 100 Pipers Pure Music. Blenders' Pride sponsored a series of performances by troop dancers and artists under the banner of Blenders' Pride Magical Nites. Seagram also sponsored events such as the Chivas Regal Polo Championships and the Chivas Regal Invitational Golf Challenge for corporates.

In late 2001, television broadcasters began airing socially responsible advertisements sponsored by liquor companies, even though the government had not issued any notification permitting the airing of socially responsible ads on TV. Star TV and Sony were among the leading broadcasters telecasting such advertisements included STAR TV and Sony. The advertisements were telecast during Christmas and New Year's Eve. One of these ads by Seagram wished the viewers with 'Season's Greetings.'

Another advertisement of Seagram read, "Tonight, when it's one for the road, it's got to be coffee." L.S.Nayak, Vice President (Sales and Marketing), STAR TV said, "It's not a liquor advertisement at all. It's just another corporate advertisement through a social message. It cannot be classified as a liquor advertisement because Seagram is not a liquor brand. One must see the spirit behind an advertisement to find out whether it's promoting liquor or not."

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6] Sparkling water is a milder form of soda.