THE INTERNATIONAL JOURNAL OF MANAGEMENT

AN EMPHIRICAL STUDY ON
SURROGATE ADVERTISEMENTS: A PIONEERING TREND

ISSN 2277-5846

ISSN 2277 – 5846I

Varalakshmi .T

ISSN Assistant
2277Professor,
- 5846
Don Bosco Institute of Biosciences & Management

2277 -Studies,
5846
Kumbalagodu, Bangalore
Karnataka, India.

Abstract

‗Many a small thing has been made large by the right kind of advertising‘. Yes,
advertisements have a strong influence in our life as they are informative and hence
create awareness among the consumers. But some ads are accused of misleading &
unhealthy products restoring themselves to prohibition from the media. But the
massive investment of the companies has made them to reinstate to a new trend
called "Surrogate Advertisements" emerging itself as a loophole challenge to the
Government's action. This trend gathered momentum due to prohibition of such
products (alcohol beverages, cigarettes & tobacco products) by law.
The current study was undertaken to explore the positive dimensions of surrogate
advertisements & to investigate its influence on consumer buying decision thereby
its impact on company‘s brands. Hence with this inspection the required data was
collected from 108 respondents using a comprehensive open – ended questionnaire
undergoing a judgmental sampling. Besides, to test the objectivity of the data
collected Weighted Factor Method coupled with Ranking Method & Karl Pearson‘s
Chi Squared test was used to arrive at possible suggestions required for the study.
Consequently, what seems relevant by the study is – ―How the surrogate
advertisements have become a pioneering trend in the current scenario?‖ &‖How it
has proven to be a boon for the marketers?‖ is the question what makes this study
furthermore interesting.

Keywords: Surrogate Advertising, Brand Image, Awareness, Tobacco & Alcoholic

beverages, Familiarity.

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1. Introduction

Surrogate advertisements are those which are used to publicize those products banned by law as they
are injurious to health. Different products witnessing such advertisements are alcohol beverages,
tobacco products & Gutka advertising themselves as pan masalas.

There are a numerous reasons for companies to restore themselves to such advertisements. One of
the most common among them is to circumvent a prohibition by law in several countries on direct
advertisements of particular products besides its unhealthy.

Hence different techniques used to promote such brands might include, endorsing their products
using public service announcements, advertising well established brand embedding such surrogate
products or duplicating the brand image of one product extensively to promote another product of the
same brand or if not the case, endorsing themselves as discharging some social obligation towards
the society (Ex: Officers Choice – Alcohol).

Whereas the primary objective of the companies behind such prohibition is to compensate the losses
occurred due to such prohibition.

“Sales of these surrogate items are not banned, yet advertising on the same has strictly been
prohibited!”

2. Objectives Of The Study

The present research study was undertaken to fulfill the following objectives:

1. To know the consumer‘s familiarity & awareness towards surrogate advertisements.

2. To understand the impact of surrogate advertisements on the company‘s brands.
3. To find out the influence of surrogate ads on consumer buying decision.
4. To know the consumer perception towards surrogate ads & its products.

3. Significance Of The Study

The present research study is highly significant as it enables the companies to find the new ways to
successfully promote their banned products.

Moreover the study also spotlights as to how the companies can use such new trend of surrogate
advertisements as a successful marketing strategy to sell their prohibited products.

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4. Research Gap

The research was undertaken to know that even the government has imposed a ban on the products
which are probably not good in the interest of the community at large. How they are emerging
themselves with a new dimension i.e., Surrogate Advertising?

The study also attempts to analyze the positive dimension of surrogate advertising even though such
ads are against to advertising ethics.

5. Literature Review

Dr. Abhijeet Agashe, Ms. Harleen Vij in his article ―Ethical Issues in Surrogate Advertisement & its
Impact on Brand Building‖ indicated that ---- ―Direct marketing of surrogate products are totally
unethical and hence been prohibited by the government. But it‘s the companies are now following
the newest trend called the ‗surrogate advertisements‘ i.e., marketing unethical products ethically‖

Cable TV Act, 1995 - As a result, Zee and STAR stopped telecasting the advertisements. Aaj Tak and
Sony soon followed suit. In addition, I&B Ministry hired a private monitoring agency to keep a
watch on all advertisements for violations of the Act.

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.

Dr. S. G. Khawas Patil, Laxmikant S. Hurne in their article ―Surrogate Advertising: A Successful
Marketing Strategy for Liquor, Whisky products‖ indicates that – ―Most of the companies
experiencing the ban of their products are restoring themselves to the new concept called ―Surrogate
advertising. He also indicate that co‘s are making huge profits by using such ads as a new weapon
now-a-days‖

Pradeep S. Mehta in his article ―Surrogate advertising — Needed, a spirited attack‖ tell that – ―The
companies whose products are subjected to the prohibition are following a different way of
promoting their products like `old wine‘ in a `new bottle,‘ or with a soft-drink label somehow they
are duplicating the image of well established brand.‖

Rima Bharadwaj in her article ―Surrogate Advertisements: A New Judicial Concern” analysis that –
Indian government has always endeavored to curb or atleast restrict rampant advertisements of such
products by appropriate legislations, orders and directives.

6. Usage Of Surrogates For Endorsing Diverse Brands

Considering the ill effects of cigarette, alcohol and tobacco products, the government has prohibited
the advertisements of these products in the media. But sarcastically, brands have been promoted
using surrogates thereby overcoming such proscription.

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Here are a few examples:

Product
Brands Surrogates
Category
Rajnighanda Kesar Pan Masala
Goa Gutka Pan Masala
Tobacco
Pan Parag Pan Masala
Manikchand Filmfare Awards
Red & white Cigarettes bravery award ceremony
Gold Flake Tennis Tournaments
India Fashion Week, Lifestyle (textiles)
Wills Lifestyle showrooms, Indian Cricket
Team/Matches
Cigarettes
Charms Audiocassettes and CDs.
Four Square white water rafting& Gliding
India Fashion Week, Lifestyle (textiles)
Wills Lifestyle showrooms, Indian Cricket
Team/Matches
Seagram‘s Music
Mc Dowells Water and Soda
Bagpiper Water, Soda, and Music – cassettes & CDs
Red and White Bravery Awards
Bacardi Music
Kingfisher Mineral Water and Calendars
Alcohol
Beverages Wills Lifestyle Apparels, Accessories
White Mischief Holidays
Imperial Blue Cassettes & CDs
Smirnoff Vodka Fruit Juices
Royal Challenge Golf Tournaments
Aristrocrat Apple Juice
Officer‘s Choice Social Obligation towards Society

Table 1: Brand promotion via Surrogates

(Source: Article ‗what is surrogate Advertising‘ posted by Arvind Ravikumar on Nov 28th, 2011 on
Marketing faq)

7. Sampling Plan

Sampling Technique: Judgmental Sampling.

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Sampling Type: Target audience comprises those respondents who were either literate or
semi – illiterate & who are above the age group of 16 yrs.

Sampling Size: 108 Respondents

Sampling Area: Bangalore City

8. Research Methodology

The required data was captured and appropriately analysed by divided it into
three different parts –

Part – A – Percentage Analysis was done to analyse the demographic profile of the respondents.

Part – B - Weighted Factor Method coupled with Ranking Method was used to know the factor
having highest weightage thereby resulting in affirmative stance of the respondents towards
surrogate ads.

Part – C – Karl Pearson‘s Chi squared test was used to test the objectivity of the Hypothesis framed
& the statistical associations between the co‘s usage of new marketing strategy (i.e., surrogate ads) &
its reported exposure with the positive outlook of the respondents towards this trend.

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9. Data Analysis & Interpretation

PART – A

Demographic
Category No. of Respondents Percentage (%)
Factors
Gender1 Male 108 100

16 - 25 yrs 46 42.59
26 - 35 yrs 38 35.18
Age 36 - 45 yrs 14 12.96
46 yrs & Above 10 9.25
Total 108 100
Illiterate 19 17.59
SSLC 12 11.11
Educational PUC 21 19.44
Qualification
Under Graduate 33 30.55
Post Graduate 23 21.29
Total 108 100
Less than 5,000 08 7.40
6,000 to 15,000 61 56.48

Income (p.m) 16,000 to 30,000 17 15.74

31,000 to 50,000 7 6.48
Above 50,000 15 13.88
Total 108 100
Table 2 - Demographic profile of the Respondents

Table 2 indicates that –

(i) All 100% of the respondents are male.

(ii) Majority of the respondents i.e., 42.59% are between the age group of 18 - 25 yrs, where as
35.18% fall into the category of 26 - 35 yrs, remaining are above the age group of 36 yrs.

(iii) 30.55% of respondents are Under Graduates, 21.29% are Post Graduates where as 17.59%,
11.11% & 19.44% of respondents fall into the category of Illiterate, SSLC & PUC
respectively.

1
Only the male respondents were considered as samples for the study.

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(iv) Among the 108 respondents, Majority of them i.e., 56.48% are earning their income between
6,000 to 15,000 pm, 15.74% between 16,000 to 30,000 whereas only minimal no. of
respondents i.e. 7.40% earn less than 5,000 of income pm.

PART - B

The different variables are analysed on the basis of the factors attributed within the statement.
Further the Weighted Factor Method is used to find the factor having highest loading / weightage in
the insight of the consumers.

Ranking
depending
Sl Name of the Observed Weights Total upon the
Factors
no. Variables Values Assigned Score factors with
highest
loading
Familiar & aware of the concept
35 0.3 10.5 II
of surrogate ads
Unfamiliar with the name but
1 Awareness 52 0.5 26 I
aware of the concept
Unfamiliar & Unaware of the 0.2 4.2
21 III
concept 1 40.7
To promote the co‘s banned
Reasons to 22 0.2 4.4 III
product
restore to the
2 To build up the brand image 36 0.3 10.8 II
newest trend of
0.5 25
surrogate ads To earn profit 50 I
1 40.2
Usage of Celebrities /
44 0.3 13.2 II
Different ways Personalities
to make Brand Endorsement with Hi Fi
49 0.4 19.6 I
surrogate ads Music
3
attractive to Event Sponsorship 11 0.2 2.2 III
viewers Ads inclusive of Hazardous note 0.1 0.4
(consumers) i.e., (Cigarette smoking is 04 IV
injurious to Health) 1 35.4
Television 45 0.3 13.5 I
Appropriate Radio 02 0.1 0.2 IV
media to Newspaper 11 0.2 2.2 II
4
telecast the Magazines 05 0.1 0.5 III
surrogate ads 0.3 13.5
Movies 45 I
1 29.9
Apt time to During News 05 0.1 0.5 IV
5
broadcast the During Serials 21 0.2 4.2 III

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surrogate ads At the time of live cricket

58 0.4 23.2 I
matches
0.3 7.2
During Reality Shows 24 II
1 35.1
Entertaining 37 0.4 13.6 I
Viewers
Misguiding 19 0.1 1.9 IV
perception
Harmful to health 10 0.1 1 V
6 towards
Informative 23 0.2 4.6 II
Surrogate
Provokes to result in higher 0.2 4.4
advertisements 22 III
consumption rate 1 25.5
Impact of Increases consumption rate 88 0.8 70.4 I
surrogate ads on
7 0.2 4
the rate of Decreases consumption rate 20 II
consumption 1 74.4
Table 3 - Evaluation Of The Factors

Table 3: Analysis of the diverse factors having more weightage / loading using Weighted Factor
Method in the insight of the Respondents.

Above table indicates that –

1. Majority of the respondents are familiar with the concept of surrogate advertisements &
hence show high level of awareness towards it.

2. Concealed ideas of the co‘s to make higher profits with the improvement in the brand image
have made them to restore to the newest trend of surrogate ads.

3. Endorsement of surrogate products by the well-known celebs coupled with Hi Fi music

inculcates impulsive behaviour in the consumer decision making process.

4. Manufacturers of surrogate products can use television as a suitable media to broadcast the
surrogate ads; whereas it‘s during the live cricket matches or the reality shows that have
proved to be the appropriate time to make their consumers watch such advertisements.

5. Viewers (consumers) have positive insight toward such ads as they perceive them to be
highly entertaining & informative in nature.

6. Finally consumers feel that the trend of surrogate advertisements have positive impact on
company sales resulting in increased consumption rate of their prohibited products.

PART – C
H0 = Respondents are totally unfamiliar and unaware of the concept of surrogate advertisements.

H1 = Respondents are familiar and are aware about the concept of surrogate advertisements.

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Parameters Factors O E (O – E) (O – E)2 (O – E)2 / E

Familiar & Aware of

35 36 -1 1 0.027
the concept
Familiarity &
Awareness Unfamiliar with the
towards name but aware of the 52 36 16 256 7.111
surrogate concept
advertisements
Unfamiliar & Unaware
21 36 -15 225 6.25
of the concept

∑O = ∑E =
Total = 13.388
108 108 cal

Table 4: Respondents level of awareness towards surrogate advertisements

The above table shows that respondents are familiar & hence show high level of awareness towards
the concept of surrogate advertisements.

as (i.e., 13.388 > 5.991)

Hence, H0 is rejected at 2 degree of freedom & 5% of level of significance.

H0 = There is no such significant reasons for the companies to restore themselves to the trend of
surrogate advertisements.

H1 = There are some significant reasons for the companies to restore themselves to the trend of
surrogate advertisements.

Parameters Factors O E (O – E) (O – E)2 (O – E)2 / E

Reasons to To promote the banned

22 36 -14 169 5.444
restore products
themselves
To build up the brand
surrogate 36 36 0 0 0
image
advertisements.
To earn huge profit 50 36 14 196 5.444

∑O = ∑E =
Total = 10.888
108 108 cal

Table 5: Reasons as to why the companies restore themselves to such surrogate advertisements

The above table shows that, companies have good no. of reasons as to why they restore to the trend
of surrogate advertisements.

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as (i.e., 10.888 > 5.991)

Hence, H1 is accepted at 2 degree of freedom & 5% of level of significance.

H0 = Consumers doesn‘t have any kind of inclination towards surrogate ads irrespective of the way
of endorsement.

H1 = Consumers are highly inclined towards surrogate ads provided ads are endorsed by well-
known celebrities with Hi Fi music.

Parameters Factors O E (O – E) (O – E)2 (O – E)2 / E

Usage of celebrities /
44 27 17 289 10.703
Personalities

Brand Endorsement
Ways to make 49 27 22 484 17.925
with Hi Fi music
the surrogate
ads attractive Event Sponsorship 11 27 -16 256 9.481
to the
consumers Ads inclusive of
Hazardous note i.e.,
04 27 -23 529 9.592
(Cigarette smoking is
injurious to Health)

∑O = ∑E =
Total = 47.701
108 108 cal

Table 6: Different ways to make the surrogate advertisements attractive to the viewers (consumers)

The above table shows that, Consumers are highly inclined towards surrogate ads provided such
ads are endorsed by well-known celebrities coupled with Hi Fi music.

as (i.e., 47.701 > 7.815)

Hence, H0 is rejected at 3 degree of freedom & 5% of level of significance.

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H0 = There is no positive correlation between the surrogate ads & the media used for its
broadcasting.

H1 = There is a positive correlation between the surrogate ads & the media used for its
broadcasting.

Parameters Factors O E (O – E) (O – E)2 (O – E)2 / E

Television 45 21.6 23.4 547.56 25.35

Appropriate
Radio 02 21.6 -19.6 384.16 17.78
media to
telecast the
Newspaper 11 21.6 -10.6 112.36 5.201
surrogate
advertisements
Magazines 05 21.6 -16.6 275.56 12.75

Movies 45 21.6 23.4 547.56 25.35

∑O = ∑E =
Total = 86.449
108 108 cal

Table 7: Appropriate media to telecast the surrogate advertisements

The above table shows that, there is a positive correlation between the surrogate ads & the media
used for its broadcasting.

as (i.e., 86.449 > 9.488)

Hence, H0 is rejected at 4 degree of freedom & 5% of level of significance.

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H0 = There is no positive correlation between the time and the broadcasting the surrogate ads.

H1 = There is a positive correlation between the time and the broadcasting the surrogate ads.

Parameters Factors O E (O – E) (O – E)2 (O – E)2 / E

During News 05 27 -22 484 17.925

Apt time to 21 27 -6 36 1.333

During Serials
broadcast the
surrogate At the time of live 58 27 31 961 35.59
advertisements cricket matches

During Reality Shows 24 27 -3 9 0.333

∑O = ∑E =
Total = 55.181
108 108 cal

Table 8: Pertinent time to broadcast the surrogate advertisements

The above table shows that, there is a positive correlation between the time and the broadcasting
the surrogate ads.

as (i.e., 55.181 > 7.815)

Hence, Accept H1 at 3 degree of freedom & 5% of level of significance.

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H0 = Viewers have negative perception towards surrogate ads i.e., they perceive that such ads are
harmful in nature.

H1 = Viewers have positive perception towards surrogate ads i.e., they perceive that such ads as
entertaining, informative in nature.

Parameters Factors O E (O – E) (O – E)2 (O – E)2 / E

Entertaining 34 21.6 12.4 153.76 7.118

Viewers
Misguiding 19 21.6 -2.6 6.76 0.312
perception
towards
Harmful to health 10 21.6 -11.6 134.56 6.229
Surrogate
Advertisements
Informative 23 21.6 1.4 1.96 0.090

Stimulate higher 21.6 0.4 0.16 0.007

22
consumption rate
∑O = ∑E =
Total = 13.756
108 108 cal

Table 9: Viewers perception towards Surrogate Advertisements

The above table shows that, viewers have positive perception towards surrogate ads & hence
perceive such ads as entertaining, informative in nature.

as (i.e., 13.756 > 9.488)

Hence, H0 is rejected at 4 degree of freedom & 5% of level of significance.

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H0 = Surrogate advertisements doesn‘t result in increased consumption of banned products.

H1 = Surrogate advertisements have a positive impact on the sale & rate of consumption of banned
products.

Parameters Factors O E (O – E) (O – E)2 (O – E)2 / E

Impact of
Increases consumption 54 34 1156 21.407
surrogate ads 88
rate
on the rate of
consumption of
banned Decreases 54 -34 1156 21.407
20
products consumption rate

∑O = ∑E =
Total = 42.814
108 108 cal

Table 10: Impact of surrogate ads on the rate of consumption of banned products

The above table shows that, Surrogate advertisements have a positive impact on the sale &
consumption of banned products.

as (i.e., 42.814 > 3.841)

Hence, H1 is accepted at 1 degree of freedom & 5% of level of significance.

10. Findings

Surrogate advertisements are not only misleading, but also prove to be a successful marketing
strategy for the marketers in today‘s economic scenario. In the light of this fact, the following
observations were made:

I. Surrogate ads on television are equally unconscionable, as they have been telecasted
indirectly with the help of products, events or other sponsorship programmes.

II. Even though the consumers lack the level of awareness they have high level of familiarity
with the concept of surrogate advertisements.

III. Concealed ideas of the co‘s to make higher profits with the improvement in the brand image
have made them to restore to the newest trend of surrogate ads.

IV. Endorsement of surrogate products by the well-known celebs coupled with Hi Fi music
inculcates impulsive behaviour in the consumer decision making process.

V. Manufacturers of surrogate products can use television as a suitable media to broadcast the
surrogate ads; whereas it‘s during the live cricket matches or the reality shows that have
proved to be the appropriate time to make their consumers watch such advertisements.

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VI. Viewers (consumers) have positive insight toward such ads as they perceive them to be
highly entertaining & informative in nature.

VII. Finally consumers feel that the trend of surrogate advertisements have positive impact on
company sales resulting in increased consumption rate of their prohibited products.

Manikchand Gutka products

Examples of well known brands who King, Gold Flake , Wills Cigarettes of ITC company
have attained success with the usage Limited
of surrogate advertisements Kingfisher beer of United Breweries Group
Royal challenge Whisky products etc.

VIII. Surprisingly, respondents are not against to the trend of surrogate ads, as they think that such
ads may increase the consumption rate of prohibited products but finally the decision to
consume such products lies in the hands of the consumers.

11. Suggestions

I. Indian government has always endeavored to curb or atleast restrict rampant advertisements
of such products by appropriate legislations, orders and directives, Hence marketers should
be cautious enough when they restore themselves to such trend of surrogate ads.

II. There is nothing illegal in the opening or promoting of such products in the society provided
the marketer doesn‘t violate the regulations of the govt. framed in the interest of the general
public.

III. Marketers should see that surrogate ads are more informative rather than they persuade the
consumers to result in high consumption i.e., their intension should be to promote their
banned products but not to harm the health of its consumers.

IV. Marketers can endorse their alcohol beverage as well as their cigarettes brands but not for the
Gukta products as the Cable Television Act, 1995 doesn‘t allow for that.

V. Measures may also be considered to ensure that brand names or logos of tobacco products &
alcohol beverages are not visible; as such brands support even international events also.

VI. Creating a consumer awareness programme to make them knowledgeable enough to

understand the marketing gimmicks of the well known brands.

VII. Marketers can improve the quality of their prohibited products so that they don‘t have a
severe impact on the health of its consumers.

Hence, everything is fair until they are done with the good intension.

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12. Conclusion

Pros & Cons of surrogate advertising are just like a two sides of a coin. The trend followed by such
ads could prove to be boon for big and established players as they result in higher brand recall value,
thereby helping them to push their banned products further. At the same time, smaller companies and
new entrants would find it difficult to establish themselves in the changed scenario.

Though this upcoming trend is not healthy for the young consumers & others in the interest of the
health of the community; Surrogate ads have proved themselves a strapping& successful marketing
strategy for the forbidden goods today. Surrogate marketing at best fetch huge profit to the
marketers, but leads customer to the water! Hence it‘s left to the customers whether to accept this or
not.

"Let's gear our advertising to sell goods, but let's recognize also that advertising
has a broad social responsibility." - Leo Burnett

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References

Journal Articles -

1. Dr. Abhijeet Agashe, Ms. Harleen Vij, ―Ethical Issues in Surrogate Advertisement & its
Impact on Brand Building‖, published by Pioneer Journal on 16 th March 2011.

2. ―Advertising and Alcohol‖ article published by Oppapers.com – an online website for

Research papers.

3. Prof. Jitendra K. Sharma,―Surrogate Advertisements: A Case of Proxy War‖, an online

publication by Indianmba.com

4. Dr. S. G. Khawas Patil, Laxmikant S. Hurne, ―Surrogate Advertising: A Successful

Marketing Strategy for Liquor, Whisky products‖, Vol - I, ISSUE - V [June 2011 ] :
Commerce

5. Pradeep S. Mehta, ―Surrogate advertising — Needed, a spirited attack‖ published on May 23,
2003 by Business Line internet Publication

6. Rima Bharadwaj ―Surrogate Advertisements: A New Judicial Concern‖ published by Legal

service India.com on 14th July 2009.

Books –

1. George E. Belch & Michael A. Belch (2010) – ―Advertising & Promotion – An Integrated
Marketing Communications Perspective‖, 7th Edition, pg 534 – 538

2. Wells, Moriarty & Burnett – “Advertising principles & practice”, 7th Edition, pg 59 - 88

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