Surrogate Advertising: Strategies and Indian Market Impact

What is Surrogate Advertising?

In advertising, not all products can be promoted openly due to legal, ethical, or social restrictions. To bypass these limitations, companies use a strategy known as Surrogate Advertising.

Meaning of Surrogate Advertising

Surrogate Advertising refers to promoting a banned or restricted product (like alcohol, cigarettes, or tobacco) under the guise of another product from the same brand.

It involves creating brand visibility by advertising a legally allowed product (like music CDs, soda, or bottled water) using the same brand name, logo, color scheme, and design as the restricted product.

Examples of Surrogate Advertising

• Bagpiper Club Soda → Promotes Bagpiper whisky

• Kingfisher Mineral Water / Calendar / Airlines → Surrogate for Kingfisher beer

• Royal Stag Music CDs or Mega Movies → Surrogate for Royal Stag whisky

• Bacardi Blast Music Events → Promotes Bacardi rum indirectly

Why Surrogate Advertising is Used

• To retain brand recall and visibility among consumers

• To bypass government regulations on alcohol and tobacco promotion

• To create associations with a lifestyle, emotion, or social value

Legal and Ethical Background in India

• The Cable Television Networks (Regulation) Act, 1995 prohibits direct advertisement of alcohol and tobacco products on Indian media.

• To circumvent this, companies advertise a related product under the same brand name.

While not illegal in itself, surrogate advertising often exists in a grey area and is monitored by the Advertising Standards Council of India (ASCI).

Benefits of Surrogate Advertising in India

1. Brand Visibility in a Regulated Environment

• Allows liquor and tobacco companies to maintain public presence despite strict advertising bans.

2. Consumer Recall and Loyalty

• Keeps the brand name prominent in consumer minds, influencing purchase decisions.

3. Competitive Advantage

• Enables brands to stand out from rivals who may not use surrogate strategies.

4. Brand Diversification Perception

• Creates an image of a multi-product brand, adding perceived value and credibility.

5. Emotional and Cultural Connect

• Use of events, sports sponsorships, or entertainment fosters strong emotional branding, highly effective in India’s diverse culture.

Criticism and Challenges

• Ethically questionable due to indirect promotion of harmful products.

• Can mislead consumers, particularly the youth.

• Authorities like ASCI are implementing stricter actions against overt surrogate advertising.

• Some consumers may fail to recognize the surrogate, rendering the strategy ineffective.

What are Marketing Organisations?

In today’s competitive business environment, effective marketing is essential for survival and growth. A marketing organisation refers to the structure or agency responsible for planning, executing, and managing marketing activities for a company or on behalf of clients. These organisations play a critical role in ensuring the right product reaches the right audience effectively.

Meaning of Marketing Organisation

A Marketing Organisation is a structured system—either internal to a company or an external agency—focused on developing strategies, managing campaigns, understanding market trends, and ensuring products or services reach their intended audience effectively.

It can be:

• An internal department within a business

• An independent marketing agency

• A digital marketing firm, or

• A market research company

Types of Marketing Organisations

A. Internal Marketing Department (In-House)

• Common in large companies

• Handles brand promotion, advertising, digital marketing, etc.

B. Marketing Agencies (External)

• Provide marketing services to multiple clients

• Include advertising firms, PR agencies, media buying houses

C. Functional Organisation

• Structured by functions like advertising, sales, research, PR

D. Product-Based Organisation

• Different teams manage different products or brands

E. Geographic-Based Organisation

• Divides marketing efforts by regions or markets

Functions of a Marketing Organisation

• Market Research – Analyzing customer needs and competitor trends

• Strategic Planning – Developing product positioning and pricing strategies

• Promotion – Creating advertising and sales promotion campaigns

• Sales Management – Managing distribution channels and retail support

• Customer Engagement – Building long-term relationships and loyalty

• Digital Marketing – Social media, SEO, PPC, and email campaigns

Importance of Marketing Organisations for Clients

1. Expert Strategy and Planning

• Clients benefit from the organisation’s expertise and experience in crafting effective campaigns tailored to their market.

2. Cost Efficiency

• Marketing organisations offer bulk media buying, ready creative teams, and data tools, reducing overall marketing costs.

3. Access to Latest Tools and Technologies

• Clients gain access to advanced analytics, AI tools, and automation platforms that might be costly to develop in-house.

4. Better Brand Positioning

• They help companies build a strong brand image through consistent messaging and visual identity.

5. Customer Insight and Research

• Marketing organisations conduct detailed market surveys, competitor analysis, and consumer behavior studies to inform client decisions.

6. Time-Saving for Clients

• Businesses can focus on core operations while experts manage marketing functions.

7. Global and Local Market Reach

• Agencies possess the resources to target both international and regional audiences effectively.

8. Performance Measurement

• Campaign results are measured, analyzed, and optimized to ensure maximum return on investment (ROI) for the client.

What is Publicity?

In marketing and communication, publicity is a powerful tool for creating awareness and building a public image. Unlike paid advertising, publicity is often unpaid and earned through media coverage, word-of-mouth, or third-party endorsements.

Meaning of Publicity

Publicity is the non-paid form of promotion where a business or its products/services gain public attention through media coverage, news stories, press releases, or public events.

It is a component of Public Relations (PR) and aims to build a favorable image of the company among the public and stakeholders.

Characteristics of Publicity

• Not directly paid by the company (unlike advertising)

• Not fully controlled by the business

• Can be positive or negative

• Possesses high credibility as it comes from independent sources like media

• More spontaneous and news-driven

Examples of Publicity

• News coverage of a product launch

• Media reports on CSR activities

• Viral social media posts about a brand

• Celebrity endorsements in interviews

• Government or NGO appreciation of a company’s work

Importance of Publicity

• Builds trust and credibility

• Provides wider reach at minimal or no cost

• Can enhance brand image and awareness

• Positively influences consumer perception

• Encourages word-of-mouth marketing

Factors to Consider for Publicity

1. Target Audience

• Identify who you want to reach—media coverage must appeal to the relevant demographic, geographic, and psychographic audience.

2. Nature of the Message

• The message must be newsworthy: unique achievements, innovations, social causes, or public interest stories are most effective.

3. Choice of Media

• Select the appropriate medium for coverage:

  • Print (newspapers, magazines)

  • Electronic (TV, radio)

  • Online (blogs, news portals, social media)

4. Timing and Relevance

• Publicity should be timely and relevant. For instance, a press release on eco-friendly packaging is best timed with World Environment Day.

5. Credibility of the Media Channel

• Use trusted and well-known media platforms to ensure your message carries more weight and authenticity.

6. Cost vs. Value

• While publicity is unpaid, companies may incur costs for press kits, PR agencies, or events. The return on publicity must justify these expenses.

7. Potential for Positive or Negative Outcome

• Since publicity is not fully controlled by the company, there is a risk of misinterpretation or negative coverage. Preparedness for all outcomes is essential.

8. Integration with Overall Marketing Strategy

• Publicity efforts must align with the company’s brand values and marketing goals for consistent messaging.

Difference Between Advertising and Publicity