SUMMER TRAINING PROJECT REPORT
ON
“impact of surrogate advertisment on liquor sales”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE MASTER’S DEGREE IN INTERNATIONAL BUSINESS (MIB)
OF
H. N. B. GARHWAL UNIVERSITY, DEHRADUN
SUBMITTED TO:
INTERNAL GUIDE EXTERNAL GUIDERicha sinha ranvijay singhAsst. professorIMS ub groupDehradun dehradun
SUBMITTED BY:
Chunan kumar
(MIB 11A20)
INSTITUTE OF MANAGEMENT STUDIES, DEHRADUN
BATCH 2011-13
ACKNOWLEDGEMENT
The completion of a project is never a unilateral effort. Through this
sentence I wish to make a modest effort to thank and express my
gratitude to all those who extended their co-operation and assistance
for this project.
I am highly indebted to professor richa sinha, our internal guide ims
dehradun, for her inspiration, guidance and encouragement during the
course of this Research work assigned to me. She was our guiding
force right from the inception of the research till its completion.
Chunan kumar
MIB 11A20 (2011-2013)
Ims dehradun
2
CERTIFICATE
I have the pleasure in certifying that Mr. /Ms. ...…………..
…………………………..is a bonafide student of IInd Semester of the Master’s
Degree in International Business (MIB), Batch 2011-13, of Institute of
Management Studies, Dehradun under H.N.B.Garhwal University Roll No.
………..……. .
He/She has completed his/her project work entitled
……………………………………
…………………………………………………………….. under my guidance.
I certify that this is his/her original effort & has not been copied from any other
source. This project has also not been submitted in any other Institute /
University for the purpose of award of any Degree.
This project fulfils the requirement of the curriculum prescribed by this
Institute for the said course. I recommend this project work for evaluation &
consideration for the award of Degree to the student.
3
Signature : ……………………………………
Name of the Guide : ……………………………………
Designation : ……………………………………
Date : ……………………………………
4
(To be made on Company Letter Head)
CERTIFICATE
This is to certify that Mr. / Ms. ________________________ (Mention your ID),
S/o. / D/o. Shri ______________________________, student of Master’s Degree
in International Business (MIB), Batch 2011-13, at Institute of Management
Studies, Dehradun has successfully completed his / her compulsory Summer
Training with us, as part of his / her Course Curriculum.
The duration of his / her training was from _____________ to _____________
on the project _______________________________________________________
________________________________________________________________
*under the supervision of Mr. / Ms.………………………, Designation …………….
During the training we found him / her quite sincere, hard working and his / her
conduct & behavior was good.
We wish him / her all success in his / her academic endeavours and in life.
Signature : ____________________
** (HR Manager)
Name : ____________________
5
Designation : ____________________
*, ** : To be used only when the certificate is given by HR Department.
6
Contents
Topic Page No
Rationale of the study ----------------------------------------------------6
Introduction-----------------------------------------------------------------7
Industry Structure and developments----------------------------------8
Opportunities and Threats -----------------------------------------------10
Future Outlook ------------------------------------------------------------ 12
DEFINING SURROGATE ADVERTISING ---------------------------13
LIQUOR ADS ON TV -----------------------------------------------------16
-KABHI WHISKY, KABHI RUM---------------------------------------20
Allowing socially responsible ads by Liquor Company------------------ 22
Advertising in the Liquor category on Televisio-------------------------23
Surrogate advertising — Needed, a spirited attack -------------------26
Liquor Company’s uses overseas series to Circumvent ad ban: -----------30
Kingfisher, Wills spared from surrogate ad ban: ---------------------- 32
Surrogate liquor ads flow into FM radio: -----------------------------------34
I & B Ministry’s Slashing of Surrogate Ads ------------------------------35
7
Foul Cry by Major Liquor------------------------------------------------------39
Bacardi origins ------------------------------------------------------------------40
BACARDI’S WAY OF SURROGATE ADVERTISING--------------------46
UB Group…………………………………………………………….…48
PROMOTIONAL MOVES OF UB GROUP FROM TIME
TO TIME……………………………………………………………….53
Methodology……………………………………………………………..59
Questionnaire……………………………………………………………60
Analysis and Graphs…………………………………………………….62
Conclusion………………………………………………………………..70
Bibliography -----------------------------------------------------------------------72
8
Rationale of the study
Liquor Industry has one of the fastest growing markets in India. The
liquor industry does make campaign to entire customer, therefore the
assurance of the customer are increasing day by day.
In an industry where change is the only constant, survival depends on
the quickest reaction time. When technology advances happen at the
blink of the eye, one has to keep pace or else get left behind. To
achieve this, the Co’s have to lay emphasis on total customer
satisfaction through improvements by their own capabilities and
teamwork, for this products should be backed by strong R & D,
9
continuous up gradation of technology, customer oriented marketing
and unique background integration process in manufacturing.
10
OBJECTIVES OF THE STUDY
My research objective is to find out that “How successful has
Surrogate Advertising been in promoting the liquor Brand”
Is surrogate advertising actually for launching a new product or is it
for manipulation of the existing liquor brands for sales? We get a
100% recall value for the actual liquor products even though
surrogate versions were being mentioned on T.V.
11
INTRODUCTION
Liquor Industry has one of the most lately growing market values in
India. The liquor industry does make about by campaign to entire
customer. Therefore the assurance of the customer is increasing day
by day this is mainly due to the advertising.
In an industry where change is the only constant, survival depends on
the quickest reaction time. When technology advances happen at the
blink of the eye, one has to keep pace or get left behind. To achieve
this, the companies have to lay emphasis on total consumer
satisfaction through continuous improvements by their own
capabilities and teamwork. For this products should be backed by
strong R & D, continuous up gradation of technology, customer
oriented marketing and unique background integration process in
manufacturing.
12
There is a surrogate approach towards liquor advertising in India.
There is not much that they can do except market themselves through
promotions with the latest celebrity. Hollywood films like “Scent of a
Woman” have helped in brand endorsement.
13
14
Industry Structure and developments
The Indian Made Foreign Liquor (IMFL) market consists of Whisky,
gin, rum and vodka. The all important whisky market is further
segmented into low priced, regular, and deluxe, semi premium,
premium and Scotch. The most competitive segment in the IMFL
category is the regular segment whisky. This segment has more than
30 brands competing with each other.
The size of the organized IMFL industry stands close to Rs.200
billion and comprises of approximately 25 IMFL manufactures. The
low price IMFL and country liquor segment accounts for approx.
Rs.120billion. Now low priced IMFL is a distinct category as opposed
to country liquor, with products in the latter category typically sold at
lower prices.
The total IMFL market today’s stands at around 70 million cases per
annum which is been growing at a rate of 10% to 12% over the past 5
years. India is one of the very few liquor markets in the world where
the growth rates are positive. Particularly, the cheap liquor segment
has shown a growth of more than 25% over the past 5 years. Also,
15
which is estimated to be more than the size of the IMFL market? The
market is heavily skewed in favor of whisky, accounting for around
60% - 65% of the IMFL market.
There also exists a huge unorganized sector (estimated to be as large
as the organized sector) involved in the production and safe of cheap
liquor (which is distinctly different from excise duty paid country
liquor). This trend is witnessed most in the rural areas of the country.
The Indian Liquor industry is also characterized by the presence of
immense competition amongst the major domestic liquor companies.
Regulation
The liquor business is among the last few industries that are still
under the licensing policies of the Central Government and will likely
see the most significant growth over the next 2/3 years on account of
more progressive regulation.
Liquor, in India, is a state subject, not a central one, in that each state
controls the excise duty structure and also the distribution of liquor.
The event, liquor manufactured in one state is sold in another state,
the incidence of import duty and export duty results in high product
16
prices at the consumer end. It is this non uniformity of the duty
structure coupled with different types of distribution arrangements
dictated by the state governments that makes manufacturing and
marketing of liquor a very challenging task for Indian companies.
Distribution while unregulated in some states such as Maharashtra
and West Bengal is regulated in some others such as through auctions
(Haryana & Rajasthan, Bihar, Jharkhand) or through government
controlled procurement agencies (such as Tamil Nadu and Andhra
Pradesh). There are around 100,000-110,000 licensed liquor outlets in
India, with another 10, 0000 outlets such as bars and restaurants.
Advertising is also regulated by the Central government and liquor
players are not freely allowed to advertise on electronic and print
media.
Market Size (IMFL)
17
o Market: 95 million cases
o Past growth 15 % @ per annum
o Brown spirits - particularly whisky, rum & brandy account
for over 75 % of this market
o South and North share 60% of market
Industry Structure
o Industry in the organized sector - an industrial license is
required to start manufacture
Major brands (manufacturers): Signature, Blue Riband (UB Group),
Aristocrat (Jagjit Industries), Smirnoff, Gilbeys Green Label, Malibu,
Archer’s Peach Schnapps (International Distilleries India), Passport
(Seagrams), VAT 69, Black & White, Black Dog (United Distillers
India)
18
19
Opportunities and Threats
On April 1, 2001, India, under commitment to the WTO, removed
quantitative restrictions (QR) on bottled in origin (BIO) liquor
imports and placed them under the OGL (Open General License)
category. Further, it is expected that the important duty of foreign
liquor would also be brought down to a committed level of 150%, the
WTO bound rate over the next 2/3 years.
This would lead to the entry of large Liquor Multinationals companies
in the country. These Multinationals will make strong inroads in the
higher priced categories of the market such as super premium and
premium end of the whisky market consisting of price levels of
Rs.450 and above per bottle of 750 ml. It is believed that these
segments are those where the Indian liquor industry will face
maximum competition over the next 3 to 4 years. Already, domestic
brands are losing substantial market share top India specific brands of
Multi nationals companies. The competition in this segment is bound
to intensify still further.
20
With duties coming down over a period of time and imported liquor
coming under the purview of OGL, there have emerged excellent
opportunities for their trading in the domestic market products like
imported, wines, beer, breezers and coolers etc. should have good
opportunities for an aggressive player.
Taking advantage of this opportunity, Radico has already entered into
exclusive marketing distribution arrangements with earnest and Julio
Gallo, California, USA, the owners of the largest winery in the world
distribution of their wines in India and also with Interbrew, of
Germany for the distribution of Beck’s beer in India.
The company is also planning to introduce Ready to drink products
like Bacardi breezers and coolers through a tie up with major foreign
players. This segment is likely to see good growth in future as
consumers get acquainted with the product gradually.
Future Outlook
It is believed that the Indian liquor industry is set to grow
exponentially over the next 4 to 5 years on the back of a major
21
unshackling of the regulatory structure governing it. In the last 2
years, at the State level, the Delhi Government has thrown open retail
distribution to private parties, the Uttar Pradesh government’s new
excise policy has substantially increased the contribution per case of
country liquor for most distillers in the state, the Tamil Nadu
Government’s decision to allow 100 ml packs of IMFL to wean
indications towards this direction. At the central government level,
there is a proposal to charge a uniform excise duty as opposed to state
specific excise duties.
22
DEFINING SURROGATE ADVERTISING
Surrogate advertising can be defined as advertisement of a brand
extension in such a way that brings clear recalled of the core product
in the mind of the consumer. The concept of surrogate advertising in
India emerged due to certain regulations enforced on the promotion of
certain products mainly liquor and tobacco (products). Here the
companies are producing these products in order to avoid legal
complications, and also in order to remain in the minds of the
consumers, use reminder adverting by way of resorting to surrogate
advertising. These companies advertise their brand extensions for the
promotion of the core brand.
An advertisement of any thing whether it is product, service
or event in the name of core brand by which the actual product is
recalled is surrogate advertisement. Cigarette companies have used
the vehicle of surrogate advertising to reach the minds of consumers
from time to time giving for example Gold Flake which produces gold
Flake expression greeting cards, Red and White which sponsors
bravery awards, and wills which advertises wills cigarettes on the
sports wear which we have witnessed time and again on the T-shorts
23
worn by the Indian cricket team. Wills lifestyle is also an example of
surrogate advertising.
Moving ahead the liquor companies have successfully used the name
of the core brand with some other products like Royal Challenge.
Similarly, Bacardi extends its brand name by producing Bacardi
cassettes, Teacher’s advertises in the name of Teacher’s Achievement
Awards, McDowell’s in the name of the Soda, Aristocrat, 8 PM,
Contessa and AC Black go ahead in the name apple juice, and Gilbeys
and Kingfisher in the name of water etc.
He also talked of an advertisement (surrogate in nature) in which a
small line of 6-/8 front size statement reading CDs and Cassettes of
the 100pipers pure music series are available in select outlets whereas
no CD, cassette or music system is shown. Above all, a Seagrams 100
piper (which is a wine) is written in a manner that it is creating an
image of bottle sticker, i.e. round folded sticker.
In INDIA there are no specific laws to control the activities relating
to surrogate advertisement. However the government issues certain
directives from time to time which are based on various laws and
codes like the Code for commercial Advertising on Doordarshan and
24
The cable Television networks (Regulation) Act, 1995, Press Council
of India Act 1978 and the Cinematography Act 1952.
However the regulation is not going to affect surrogate advertising
because TV channels are free to air ads of kingfishers mineral water
and other products like Aristocrat apple juice though it is clear that
these products have been produced by the liquor companies only for
surrogate advertising. Secondly, the consumers of liquor and tobacco
companies are mostly habitual of their brands and they are not
much affected by the advertisement.
25
26
LIQUOR ADS ON TV
Scenario 1: The handsome young guy celebrates his corporate victory in his office. Pulls out a bottle of Aristocrat from one of his desk drawers and savors the brownish looking fluid. Cut to the next scene: in the hazy background which looks like a poolside party going on, our hero again is shown dancing with a pretty girl. Drinking Aristrocrat APPLE juice.
Scenario 2: A few young men out on a trek. They finally reach their destination to celebrate while their adventure gear is prominently displayed beside them. The adventure gear is from Four Square, a brand of cigarettes.
Scenario 3: A gang of boys and girls is seen dancing in the rain. Obviously they are having a good time, courtesy MINERAL WATER, from the `King of Good Times' aka as Kingfisher
27
Such TV commercials have been flowing like beer on tap on various
television channels despite the Indian government frowning down
upon the practice though informally. No more. The authorities have
started talking tough and ordered in no uncertain terms that satellite
channels stop airing surrogate advertising involving liquor.
Some channels have complied while others are likely to follow suit.
Figures about how much television advertising spends by the booze
go glug-glug courtesy the governments are hard to come by one
estimate placed it at a giddying Rs 2700-3000 million. Phew! Enough
to make even a teetotaler hit the bottle.
But media planners and buyers believe they won't have to do that.
Liquor advertisers will find an out. Already Bacardi has invested in
Bacardi blast night parties, which serve as a very effective branding
vehicle.
"With the government cracking the whip on surrogate advertising on
TV, the liquor companies will move to intensify ground events and
explore other such below-the-line avenues for promotion. Outdoors is
also an option.
28
A lot of that was already happening with booze cash backing musical
concerts, exhibitions and seminars. Royal Challenge, for example,
sponsors golf events.
A clutch of media planners and advertising personalities fells that
there is a going to be a rise in the number of liquor and tobacco
sponsored events in the near future in the effort to neutralize the ban
on ads on TV channels.
Some have even taken the cable TV route working closely with cable
operators to insert ads or "crawlers" during movies that are aired on
home video channels. Some liquor companies going to cable
operators to have their ads aired on the home video channel on which
the government's attention has not been drawn till now is also been
banned. The advantages were two-fold on advertising on cables: cable
operators' charges for ads are just a fraction of what satellite channels
charge and in the short-term this can be an alternative to
Outdoors and direct advertising. What could spoil the party however
is the fact that in some places like Delhi the state government has
banned hoardings?
Below-the-line advertising will increase and hog a bigger share of the
media budget of liquor and tobacco companies.
29
Of late TV channels have seen a sufficient of commercials pegging
aerated water, mineral water, bar accessories by liquor companies. 8
PM Apple juice, Bagpiper soda, Kingfisher water, Aristocrat
Premium apple juice, Hayward’s 5000 dart boards are just a few of
the examples. Johnnie Walker Scotch whisky promotes a series of
successful stories on CNBC India through sound bytes from
prominent Indians like Amitabh Bachchan. Almost every channel has
been party to the surrogate commercial brigade, with the sole
exception being Doordarshan, which by mandate did not carry such
fare.
"What are advertisements for?" It is a method to communicate to and
come in contact with the consumer. TV channels may have been one
such contact point. Whenever and wherever there is an opportunity to
come in contact with the consumer it can be exploited it can be
through his mouse pad or the club he frequents. So, the liquor
companies have options and will go in for that marketing too.
Though liquor companies did not seem to be worried, as the ad
expenditure of liquor companies have not come down with the ban on
TV ads.
Annual revenues from surrogate advertising for the television
industry as a whole is about 4 per cent of total ad spends - between
Rs2000 million and Rs2250 million.
30
According to one TV channel executive it was niche channels that
would be affected more than general entertainment ones. In the first
place the categories of advertisers were limited as the viewer profile
was either up market or youth-specific. Movie, sports, news and
music channels were the channels that he felt would be impacted
most.
Looking abroad for parallels though, India seems to be working in
reverse direction. In the US for instance, while beer ads have been a
regular feature of the TV advertising milieu, when it comes to hard
liquor, the spirits industry has lived under a voluntary ban on the
placement of ads on TV for the past 50 years. But with declining
revenues over the past two increasingly health-conscious decades, the
industry has begun cautiously testing the regulatory climate by
placing ads on some local TV or cable stations. There is a heated
debate going on in the US over the wisdom of this reversal, especially
after NBC announced towards the end of last year that they would
allow liquor commercials to run during late-evening programming,
making them the first national network to do so.
Coming back to India, as the government tightens the screws and
takes the fizz out of the liquor companies' blast, the affected ones are
re-drawing their strategies. The restriction put by the government can
be termed a non-option because it applies to the competition too.
Hence, all the constituents affected by the liquor crackdown have to
31
take cognizance of the fact that the tipplers' party is over. If they don't
fall in line they may end up with a hangover. That's if the government
acts on its threat putting its weight behind the liquor ad ban move, it is
quite likely that it is dry days for television channels even for
surrogate ads.
KABHI WHISKY , KABHI RUM
Law prohibits liquor advertisements, however, such restrictions are
circumvented by ads purported to be for products outside the banned
category. All liquor licensees include bars, pubs, restaurants, licensee
retail stores, wineries, breweries and distilleries - are allowed to
advertise their products, but they must comply with Liquor Control
and Licensing regulations.
For example, licensees may put up signs to advertise their
establishments or products. These signs and advertisements may
include liquor prices (including specials), hours of sale and the names
of liquor manufacturers or brands. But they could not place
advertisements in newspapers, magazines and periodicals, or on
television, radio or the Internet, and publish pamphlets and brochures.
They should also not:
32
Encourage people to drink liquor or to drink irresponsibly (ads
that mention price must take this into account; if a licensee's
price advertising encourages or results in drinking excess, the
Liquor Control and Licensing Branch can prevent the licensee
from including liquor prices in future advertising)
Show people drinking liquor, or anyone who is either
intoxicated or behaving irresponsibly or illegally
Associate liquor with driving
Be directed at minors or placed in locations used or visited
mostly by minors, such as theaters and playgrounds
Depict liquor as:
o One of life's necessities
o Key to social acceptance or personal success
o Central to the enjoyment of an activity, or
o A status symbol.
In addition:
Ads for bars and winery lounges may not use
pictures of minors (in BC, that's anyone under the age of 18)
Ads for restaurants must make clear that serving food
is the restaurant's primary purpose
Ads for companies that make beer, wine or spirits
may name a liquor store, bar or restaurant where the product is
sold, and
33
Ads for companies that make beer, wine or spirits are
not to be shown on a theatre screen before a movie.
So, we have Club soda as a stand in for bagpiper whisky, or mineral
water for kingfisher beer. Keeping pace with the I.T. mode, there are
websites for Seagram whisky and Bacardi rum.
A few sips of AC Apple juice in a TV commercial drop the neckline
of a nubile woman by several inches (as imagined by the imbiber).
Guess what would happen if AC juice ferments to Aristocrat whisky
for which the former is surrogate?
Brand stretching has become a lifesaver of the liquor advertising
industry, besieged by regulations, which can be breached with
impunity.
Cheers to soda water with spirit
34
The latest proposal: allow socially responsible ads by liquor
companies
Faced with a 7 to 11 percent loss in revenues after the ban on direct
and indirect liquor advertising, a group of TV broadcasters has
submitted a proposal to the government to allow them to use socially
responsible ads sponsored by liquor companies.
A committee of broadcasters headed by I&B special secretary Mr.
R.R. Shah, which was set up the government recently to find out what
constitutes surrogate ads, has recommended to the government that
socially useful advertisements sponsored by liquor companies should
be allowed on TV channels according to a top official in a private TV
channel.
Socially useful ads sponsored by liquor companies are a very popular
concept in the US and the UK, and are likely to be well accepted in
India as well, as a member of the committee on surrogate ads. Since
public service endorsement does not lead to promotion of liquor ads,
these cannot be clubbed with direct/indirect or even surrogate
advertising of liquor. The socially useful ads or public service
endorsements, which this committee is referring to, may not
necessarily talk about drunken driving as some liquor companies have
been doing so far. Although the government hasn’t decided whether
to allow liquor whether to allow liquor companies to advertise
35
socially responsible ads on. TV channels there are feelers that the
government is warm to the idea. In fact, broadcasters are even open to
the idea of the government is warm to the messages can be allowed on
TV channels. For instance, if the government feels that only
medically helpful or crime prevention messages must be beamed on
channels, broadcasters are ready to abide.
Advertising in the Liquor category on Television registers a negligible
dip of 2% in 2011 as compared to 2010
Key Findings:
Advertising in the Liquor category marks a negligible dip of 2%
in 2011 compared to 2010.
Liquor advertising spends on Television varies across the years
2000-11.
Feature Films are the most preferred program genre for Liquor
Advertising in 2011.
A look at the trend of TV advertising in the Liquor category in year 2011 compared to
2010.
36
We can see that Advertising shows a negligible dip of 2% in year
2011 compared to year 2010. The graph shows the indexed spends of
the Liquor category on Television Advertising since 2010.
Advertising in the Liquor category is expected to be quite seasonal.
Let's check out whether that's actually the case.
37
The graph shows that Liquor advertising spends on
Television varies every year across 2010-200.
Where do we see ads for Liquor?
The graph show that almost 29% of the total advisement on Liquor is on Feature Films. The other program genres, which are favored by Liquor category, are Drama/Soap, News Bulletin, Cricket, Music Shows/songs, and Comedies and so on.
38
(Analysis from AdEx India-A Division of TAM Media Research)
Surrogate advertising — Needed, a spirited attack
In India, the trend of surrogate advertisement gathered momentum with the Cable TV
Network Regulation Act, which prohibits tobacco and liquor advertisements on TV
channels. The liquor industry has intentionally blurred the line between products,
advertising `old wine' in a `new bottle,' only this time with a soft-drink label.
"MEIN, AAP AUR Bagpiper". This Bagpiper club soda advertisement, featuring cine
celebrities, is similar to the earlier one for Bagpiper whisky. The advertisement comes
with the same music and punch line as the one for the popular liquor brand telecast
before the ban on liquor advertisements. This phenomenon, known as "surrogate
advertising" (duplicating the brand image of one product extensively to promote
another product of the same brand), has become commonplace.
Surrogate advertisements took off not long ago in the UK, where British housewives
protested strongly against liquor advertisements "luring" away their husbands. The
liquor industry found a way around the ban: Surrogate advertisements for cocktail
mixers, fruit juices and soda water using the brand names of the popular liquors.
In India, the trend of surrogate advertisement gathered momentum with the Cable TV
Network Regulation Act, which prohibits tobacco and liquor advertisements on TV
channels. The liquor industry has intentionally blurred the line between products,
advertising `old wine' in a `new bottle,' only this time with a soft-drink label.
39
A market survey in 2005 revealed that advertising has a direct influence on the
consumption habits of 481 million people in India and an indirect impact on 300 million
`aspirants' from the lower income group. Considering this and realizing that nearly 50
per cent of the television owners have access to cable channels, there is no doubt that the
hidden call for alcohol consumption behind the surrogate advertisements is not escaping
the eyes of viewers in the world's fourth highest liquor-consuming country. Surrogate
advertising defeats the very purpose of banning liquor advertisements.
Sociological studies have shown that, in India, a significant share of income of a large
section of the population is spent on liquor, potentially leading to financial distress and
health hazards. According to the International Wine and Spirit Board, a liquor industry
publication, there will be a jump in the number of people reaching the legal drinking
age of 25 within the next few years. The implication is that the problem is going to grow.
The motivations of firms look even more suspect when they advertise products that
cannot be bought. In 2010, for example, Jagjit Industries, the maker of Aristrocrat
Whisky, advertised a product called `Aristrocrat Apple Juice.' The company reportedly
confirmed availability of the fruit juice in Delhi, Haryana, Punjab and Rajasthan, yet,
no reputed shop in Delhi had ever seen it, let alone sells it. However you can find it now.
Understanding the gravity of the situation, the Indian Broadcasting Foundation (IBF)
has started to take on the surrogate liquor advertisements. The IBF decided that Jagjit
Industries and other liquor-manufacturing units must get production of the
advertisement approved both at the `storyboard stage' and after the production of the
commercial.
It also ruled that that if liquor companies promote any juice, mineral water or soda,
these should be shown in a proper manner and not as trimmings to liquor
advertisement.
These are welcome steps, but the key point lies in enforcement. If, in a free society,
producers have a legitimate right to let consumers know about their products through
advertisements, consumers have the right to information in adverts that are clear and
honest.
40
Surrogate advertisements are not only misleading, but also false and dishonest in many
cases. With surrogate advertising so widespread, this is the moment to tackle the
problem head-on.
There should be stringent regulatory measures to curb the practice, such as:
Making transparent laws banning surrogate advertisements for different
products under a single brand names, by amending the Trade Marks Act, for
instance;
Providing teeth to the Advertising Standards Council of India to enable it take
action against false and misleading advertisements, and keep a close vigil over
clever evasion of the law;
Asking the electronic and print media to adhere to the advertisement codes and
not to encourage surrogate advertisements;
Consumer awareness programme could be created to help people understand the
negative impact of surrogate advertisements;
Adopting strict laws to penalize those companies featuring surrogate
advertisements without any real existence of the product; and
Requiring advertising agencies to have full knowledge of the products under the
same brand for which they are promoting advertisements, and taking legal
actions against those agencies which design surrogate advertisements.
41
This is not cricket! - Liquor Company’s uses overseas series to circumvent ad ban:
WITH the Government trying to clamp down on surrogate advertising, liquor
companies seem keen to bat out the ban. Even as liquor brands have traditionally been
associated with up market sporting activities like golf, polo, derby and yachting,
companies are now turning towards the game of the masses - cricket. After the
triangular series at Zimbabwe in 2011 (of which Royal Stag was the associate sponsor),
the India and Zimbabwe Test series will be called the Royal Stag Cup.
Till date Royal Stag has used several international cricketers as brand endorsers. This
is the first time the company has forayed into tournament sponsorship. Similarly, the
ICC World XI Vs Australia series to be held Down Under will be called the Johnnie
Walker Super Series.
As both the series were being held outside India it would be difficult for the
Government to blip out the liquor brands. Since the matches will be beamed into Indian
drawing rooms live, the brands will enjoy good visibility.
Internationally beer brands such as Fosters and Lion have supported cricket in
Australia and Sri Lanka respectively. Meanwhile, Royal Stag has roped in Zimbabwean
Vice-Captain, Heath Streak as their new Royal Stag brand ambassador. Other celebrity
42
Royal Stag cricket endorsers include Australian Cricket captain Ricky Ponting, and
India's ace off spinner Harbhajan Singh.
The Information and Broadcasting (I&B) Ministry's efforts to ban surrogate
advertising of liquor brands has reached a naught. A few months ago, it had sent out
notices to various television channels to withdraw advertisements by liquor companies.
But within a few weeks of the notices being issued, surrogate advertising made a
comeback on television. In fact, a few liquor companies have been advertising during
the ongoing cricket series as well between ENGLAND AND INDIA. However channels
were categorically told that there is a complete ban on advertising by liquor companies.
The Government is also handicapped by procedure wherein it can take action against
channels only after receipt of complaints. "The Government cannot suo motu issue
show-cause notices. It has to first receive complaints," said official sources.
Liquor companies on their part state that their advertising is self-regulated and comply
with the Indian Broadcasting Foundation and the Advertising Standards Council of
India code.
Kingfisher, Wills spared from surrogate ad ban:
43
In a significant policy shift, the government has in principle decided to permit non-
liquor and non-tobacco advertisements of Kingfisher and Wills brands on TV channels.
This is despite the fact that the Cable TV Act prohibits advertising of liquor and
tobacco.
According to I&B ministry sources, the government will, however, consider granting
similar exemptions on a case-by-case basis to such “genuine” businesses. The Cable TV
Act is also likely to be amended on these lines later.
A committee, comprising representatives from home, health, law, women empowerment
and information & broadcasting ministries, is still examining the objection raised by the
UB Group (Kingfisher water, soda and airline) and ITC (Wills Lifestyle) over the ban.
A government however gave both Kingfisher and Wills a green signal soon. The UB
group and ITC have been successful in convincing the government that they have
“genuine” non-liquor, non-tobacco businesses, though with the same brand names.
According to industry estimates, liquor advertising (surrogate) is worth Rs 250 crore to
300 crore in India. Even as there are several liquor brands indulging in surrogate
advertising on TV, only Kingfisher is likely to be spared for now. ITC, a major tobacco
brand, too would be allowed to beam its Wills Lifestyle ads. For other liquor companies,
decisions will be taken on a case-to-case basis, till the policy is fine tuned, the source
said.
Before tobacco advertising was banned, ITC alone had an ad budget, on both television
and print, of Rs 100 crore, as per Lintas Media estimates for 2011. Of this, Rs 76 crore
was only for print. As for Kingfisher, its airline ad budget alone is around Rs 10 crore.
In a recent interview, UB chairman Vijay Mallya had in an interview that I&B minister
S Jaipal Reddy had assured him the ministry couldn’t take a view that Kingfisher ads
are surrogate. “Certainly not with an airline. We already have a very significant
mineral water business Mr. Mallya had said.
The government clampdown on surrogate liquor and tobacco ads had begun during the
National Democratic Alliance (NDA) regime. In fact, former information &
broadcasting minister Sushma Swaraj was in the process of formulating a norm on
brand extension and surrogate advertising based on the volume of non-liquor or non-
tobacco business.
The reasoning, at that point, was that if there’s a standalone genuine business owned by
a liquor/tobacco company, the brand could be advertised.
44
However, last month, the UPA government issued notices to liquor/tobacco companies
and television channels, stating that there’s a blanket ban on advertising liquor.
Surrogate liquor ads flow into FM radio:
Even as the Information and Broadcasting (I&B) Ministry is clamping down on
surrogate liquor ads appearing on various television channels, these ads seem to have
crept into the various private FM radio channels.
Recently Guinness UDV's Gilbey's Green Label and UB Group's Romanov have been
advertising on some private FM channels in Mumbai and Delhi.
But just as liquor ads are not permitted to advertise on TV, they cannot be heard on
radio. Officials in the Ministry said FM channels would also have to follow the
Broadcasting Code framed for the All India Radio (AIR) and the Doordarshan.
Despite this, FM companies seem to be accepting surrogate liquor ads. The officials at
radio networks refused to comment on the issue calling it "a touchy one". They merely
said that the same guidelines applicable to surrogate advertising on television is
45
applicable to radio. Also, advertising by liquor companies on radio has been miniscule
compared to television.
B Ministry&I have been looking at the issue of surrogate liquor advertisements and
have been sending out notices to various television channels. "It has been a cat and
mouse game. Once notices are issued the ads go out, but reappear after a while," said
the Ministry official.
And with the revival of radio through FM, the debate over surrogate advertising on TV
is being carried over to radio as well.
I & B Ministry’s Slashing of Surrogate Ads
IBF Flays surrogate liquor ads
The Indian Broadcasting Foundation (IBF) has come down heavily on surrogate
liquor ads. While asking channels to withdraw commercials of close to a dozen
products, it has also sought changes in several other ads.
The ones that have been seen as inappropriate are ads for 8 P.M. Apple Juice
where two generals are seen exchanging drinks, Bagpiper Hero, Bacardi
46
Breezers, Johnnie Walker, McDowell’s Signature and Whitehall Party, among
others.
In some other ads such as the one for Mc Dowell’s Mera No. 1, it has said that
the term spirit should be removed. The words ‘Rare Spirit’ should be removed
from the Royal Channel Golf Accessories while it has suggested a brand new
commercial for Aristocrat Premium Apple Juice.
Recent at a meeting of the IBF sub committee on surrogate advertising, the
apex body comprising all the major broadcasters has categorically said that
members of the Confederation of Indian Alcoholic Beverage Companies
(CIABC). Seagram, Jagjit Industries and all other alcohol companies must get
product of their commercials approved both at the storyboard stage and after
production of the commercial. It also said that liquor companies must provide
authentic data in the form of a letter from the Chairman or Member of the Board
or the auditors giving details of the surrogate products’ manufacturing facilities,
launch date, distribution networks and details of the product category
registration.
The sub committee said that if the commercial promotes an apple juice, mineral
water or soda, it should be presented in a suitable manner and not shown as an
accessory to alcohol drinking. The recent clampdown on surrogate ads will
affect the television channels as the industry spends over Rs. 300 crore on
advertising. According to medial planners, huge amounts of money are spent on
regional channels such as Alpha Punjabi, Marathi and Bangla or ETC Punjabi,
the expenditure is not very high. The rates for spots on these channels are very
low, said a Delhi based media planner.
Meanwhile, the liquor companies continue to claim that these ads were for
genuine products that are available in the market. The companies had, in fact,
some months back, placed samples and other proofs before the Government to
defend their case.
47
The government, meanwhile, said that the
channels would have to adhere to the
Advertisement Code, which is part of the
Cable Television Networks (Regulation)
Act, 1995 as they can take action against channels violating the code by asking
cable operators to black out the channel.
According to the IBF’s code, if a liquor company does not have an adequate
number of the product that it was trying to project on television available in the
market through sufficient distribution outlets, TV channels do not accept the ads
of that company.
The case of Hayward’s was cited as an example and how the ads were taken off
the air by TV channels when it was found out the market did not have an
adequate number of dart boards the company was advertising on TV, the IBF
source said. Apart from the government, the IBF was in the process of finalizing
its own advertising and programming code, which was an attempt towards
voluntary self-regulation, “he added.
Still, government sources indicate that the I & B ministry list of objectionable
television commercials includes ACP Apple Juice Kuch Bhi Ho Sakta Hai
campaign, Royal Stag (that incidentally features two cricketers), Aristocrat,
Smirnoff, Bagpiper, McDowell’s Gilbey’s Green Label, Whitehall, Imperial
Blue, Macintosh Apple Juice, Royal Challenge and Smirnoff.
48
49
Surrogate liquor ads that have gone off air
Advertisements for Hayward’s 5000, ACP Black apple juice and Radico
Khaitan’s 8 pm apple juice was pulled out from all major TV channels
immediately, after the Indian Broadcasters Foundation (IBF) has objected in an
act of self discipline regarding surrogate advertising.
The broadcasters, henceforth, will seek details of products, which they believe
promote non – existent products added an IBF official. They met I & B Ministry
officials to convince them of their efforts at self-regulation.
While a decision has been taken to affect this ban immediately, the
implementation is likely to take at least a couple of days since most of the
advertisements are inserted in advance.
After the I & B Ministry banned liquor ads in 2000, most liquor manufacturers
devised ingenious ways of remaining visible even while observing the legalities.
Mostly, the hard liquor ads were replaced with more socially acceptable options
such as apple juice, even if such products did not exist within their portfolio.
Regarding the ACP black apple juiced ad where a woman sheds her clothes as
the drink is consumed, the IBF official said, “While it might be a genuine ad,
the IBF committee has decided to remove it in its present format.”
Foul Cry by Major Liquor
50
Even as the Government gets cracking on surrogate advertising by
liquor firm, Jagjit Industries, whose ad for AC Black apple juice has
been pulled off air from TV channels, alleges that the competition is
obfuscating the entire issue to suit their commercial interests.
Jagjit’s spokesperson said the competition through the Confederation
of Indian Alcoholic beverage Companies (CIABC) has been
canvassing against this ad with the Information and Broadcasting
Ministry and the TV channels.
“There is need for regulation of this sector, but I am against arbitrary
regulation. If the ACP Black ad is surrogate sexist below the line
advertising, so are many others. At least, this product actually exists,”
says Jagjit director Deepankar Barat.
CIABC chairman Vijay Rekhi, on the other hand says we are only
ensuring that the industry behaves responsible in collaboration with
the media and the ministry. He reckons that the TV channels that are
signatories to the voluntary CIABC marketing code need to enforce it
their end.
Many a times though ad may be genuine its content violates all
norms of decency, and hence the ad should be pulled out.
Worldwide, the liquor industry is regulated by a code of conduct,
which includes the hours when such ads can be aired, the content and
a compulsory statutory warning. In India, the Government has been
trying to bring in a sense of regulation.
51
Bacardi origins (A)
The most famous of light and Puerto Rican rums is Bacardi. Bacardi
was originally made in Cuba, and notably the first light rum. They
also opened plants in Mexico and Puerto Rico in the 1930’s. The
Puerto Rican plant allowed importation to the US without the import
duty imposed. When Castro took over Cuba and nationalized the rum
industry, Bacardi stopped production there and Puerto Rico became
their main distillery. Though Bacardi is most famous for its light rum,
they also produce other variations. Ron Rico and Don Q are Puerto
Rican rum also.
France imports a lot of Rum from the French West Indies. Once
imported to France, they are often aged. Martinique is the largest
producer. Many of these rums are produced with the addition of
dunder. Dunder is the residue left from the previous batch and can be
compared to the making of sour mash in the States. Haiti also
52
produces fine sipping Rums. Cachucha is made in Brazil from
sugarcane and often heavily sweetened, as it is naturally dry, this is
the main ingredient in Caiparnha. A clock cousin, Caha is made in
Pragnay, and other South American countries. In Mexico rum is more
popular than tequila. Here it fees by the name of aguardiente.
Flavored runs are gaining in popularity; Capitan more a spiced rum
and Malilum coconut flavor are two examples.
BACARDI’S MARKET SHARE SCENARIO AND
CURRENT MARKET STRATEGY
Bacardi picks up local consumer insights to infuse new spirit into stagnating
sales.
Chilling out on a beach in the middle of the day has a universal appeal. Or does
it not, it appears, In India. Which is why Bacardi is on the verge of releasing a
brand new campaign for the Indian market, which replaces the earlier trademark
global TV commercial?
Sure, the fun, colours and passion are all there because the target group of
tipplers between the ages of 25 and 45 years hasn’t changed. Only, in place of
53
sun, sea and sand in the afternoon, the setting is an evening bash after a tiring
day’s work. That marks a radical for the Cuban rum maker. This is the first time
any where in its worldwide markets that Bacardi Martini has had to leave its
global communication to local taste. What made Bacardi Martini take such a
significant step?
The answer lays in the way the market for white spirits, and white rum in
particular, has evolved over the last few years. Today, the white spirits market
accounts for less than 5 percent of total liquor sales in India and is dominated by
gin. White rum and vodka make up less than 2 per cent of the total liquor sales.
International Distillers and Vintners (IDV), which launched its Smirnoff Vodka
eight years ago, was joined by Bacardi in 1998 when the latter introduced white
rum, Carta Blanca. The two were expected to expand the market for white
spirits through their marketing blitz. Even today, the segment is a drop in the
Indian liquor ocean.
To be sure, Bacardi had a great start. In the first year, Carta Blanca sold 20,000,
the next year (1999-2000), it achieved the targets of 40,000 cases and the
following year sales surged to peak at a little less than 1,00,000 cases.
What worried the company was that after that, sales leveled off. In fiscal 2010,
Bacardi failed to reach last year’s sales.
Considering many global brands have thought twice about bringing their
international campaign into the. So Bacardi began with its world wide Indian
54
market, how is it that Bacardi chose this option? Part of the explanation lays in
the fact that Bacardi faced a major challenge in defining consumers in the first
place.
Although rum as a category, primarily dark rum, accounted for 13 to 14 per cent
of the total market in 1998, consumer loyalty was extremely high and hard to
break. So the task before Bacardi was a formidable one.
Price was another barrier since Bacardi came at a premium of over 250 per cent
to local rums and whiskies. Research at the time showed that, at best, Bacardi
could possible pick up rum drinkers on the fringes, who were open to trying out
other types of rum.
But this number was too small and uncertain. Bacardi could hope to draw in
these consumers long as it preserved the strong, macho properties of dark rum.
Most rum drinkers chose the product to make a statement about them and stand
out in the crowd.
“The change we are making in India, while subtle, recognizes the need to
balance the playfulness of Bacardi with more of a work ethic if we are to
connect even more with the Indian consumer” Jeff Macdonald Marketing
director, Bacardi Martini India Limited. Research also should that up market
consumers were more concerned with how a drink enhanced their image rather
than with taste positioning of freedom and passion to get consumer to associate
the drink with youthfulness.
55
The communication was followed up with elaborate below the line activities.
Such as promos (free glasses with a bottle of Bacardi). To increase trials,
Bacardi launched a miniature 60 ml bottle at Rs. 35 and then a 375 ml print
bottle for Rs. 180. The idea was to rope in consumers who found the drink
expensive.
The last few years saw Bacardi (in common with other liquor companies) hit by
the blanket ban on advertising in the electronic media. In the absence of direct
product advertising, the company was left with no option but to rely on below
the line activities, such as a dance parties and promotions. The standard of
surrogated advertising was taking time since the parent company wasn’t used to
this form of advertising.
Late last year Bacardi kicked off a study to find out what would push sales. The
answer lay in making its surrogate communication more relevant for the Indian
target audience. While Bacardi targeted a wider consumer segment, young
executives dominated its consumption.
The company discovered these people are serious about their careers, which
have higher priority than having fun. Fun follows after work, while its previous
communication was all about fun.
Based on the findings, the company roped in filmmaker Prasoon Pandey to
create a new film under the aegis of its advertising agency McCann – Erickson.
56
The new advertising is crafted on simple though of transformation that is how
the Bacardi spirit charges up a lazy evening after a hard days work.
Bacardi’s new advertising may have taken a cue from what most other liquor
brand are doing McDowell’s No. 1 Aristocrat and Gilbey’s Green have all tried
to associate themselves with professional success at the work place.
Bacardi is confined that its new initiatives will help bring about a change in
consumer habits, although it admits the process may take time. Its assumptions
are based on its observation in the US and UK which have been showing a clear
move from whisky to white spirits among young up market people driven by a
combination of strong image based marketing initiatives and the fact that white
spirit have a wider potential as cocktail base.
In the US, more than 50 per cent of the market is already white spirits; India
tends to follow global trends, “says Macdonald. So we are very confident we
can grow this segment and take a leading position.
The company is introducing a new pack design that will highlight the brand’s
heritage established in 1862 in Cuba and product quality the world’s smoothest
rum. The company plans to be more aggressive with its Bacardi Blast music
event which attracted over 150, 000 consumers across nine metros, in the year
2004.
57
“This year BACARDI objective is to make it even bigger and even hotter, with
innovative venues the hottest international DJs and hot, new Bacardi cocktail”
said Mr. Macdonald.
Bacardi Blast compact discs (CDs) will be another thrust area for brand
building. The company is all set to launch the ninth CD in the series, having
already sold over 300,000 copies with four releases reaching number one in the
charts. “We plan to have Bacardi Nightshift events in even more big way,”
says Macdonald. And a new on trade promotion concept that will become the
hottest post work party in town.
Most of these initiatives are in line with Bacardi Martini’s objective to garner
quick volume in the Indian market. Last year, the company acquired a 51 per
cent stakes in erstwhile white and Mackay (now Whytehall India) and spreading
its presence in IMFL whiskies as well.
Apart from this, the company is distributing William Grant’s Scotch whisky
brands and Bacardi Martini’s affiliate John Dewar & Sons Dewars Scotch
Whisky in India. But its experience with white liquor will test whether it’s truly
understood the spirit of the Indian Market.
BACARDI’S WAY OF SURROGATE
ADVERTISING
58
The, General Manager, marketing BACARDI put it: “any alternative brand has
to fit the original proposition. Both our product and the parties and music we are
promoting allow consumers to release the super – me.
Music can get you in the party mood, just like a peg or two, but apple juice is
just apple juice, despite Aristocrat’s assurances to the contrary on the small
screen.
That could be the difference between alternative brand advertising and surrogate
ads that the committee will be looking for.
The committee, we are told, will look into whether the brands advertised are
legitimate products it may also look into the amount of revenue invested into
promotion of a brand vis a vis the percentage of revenue it brings into a
company. Said Ramesh Narayan, experiment, Advertising Agencies Association
of India.
Though it remains unclear how fat the surrogate ad ban will go, the ASCI
already has a basic guideline.
Bacardi kicked off the “Blast concept around six years ago which dates
surrogate advertising with music events in the metros in conjunction with
Channel V.
The ad jingle that made Bacardi a household name was switched from sipping
on Bacardi Rum to swinging to Bacardi Blast.
59
But any one old enough to drink will also surely recalled the old words as soon
as the tune comes on the telly. That is the brand recall and value advertisers will
sorely miss, if the clampdown is complete.
60
UB Group
One of the leading liquor companies of the country. The UB group has been
successful in maintaining its pole position. Dr. Vijay Mallya, is the face of the
$2 billion UB Group 51 year-old Dr. Mallya took over the reins of the United
Breweries Group in 1983 at the tender age of 28 and has, since then, steered the
UB Group to a multinational conglomerate. Instrumental in shaping the
Kingfisher brand as one of the most popular beers across the globe, Dr. Mallya
has received several awards both in India and overseas. He was conferred a
Doctorate in Philosophy in Business Administration (honoris causa) by the
University of Southern California and nominated as a Global Leader for
Tomorrow by the Geneva-based World Economic Forum (WEF).
In recognition of Dr. Vijay Mallya's contribution to the development of Trade
and Industry in Karnataka, the Federation of Karnataka Chambers of Commerce
and Industry conferred upon him "Sir M. Visvesvaraya Memorial Award" for
the year 2001.
UB Group is 3rd largest spirits marketer in the world. With the sales of over 50
million the spirits business of the group is the 3rd largest spirits marketer of the
world.
61
The UB Group, with acquisition of Shaw Wallace & Company Limited, offers
140 brands at varying price points - attracting consumers of every taste- and
combined with its unparalleled reach has become an object of envy for the
competition.
Spirits
McDowell & Company Limited
Herbertsons Limited
Shaw Wallace & Company Ltd.
Is the 3rd largest spirits marketer in the world with sales of approx. 50
million cases
The 'Millionaire' Brands belonging to United Spirits has increased to 15
McDowell's No.1 Brandy is the largest selling brandy in the world
McDowell's No. 1 Whisky is one of the fastest growing whisky brands in
the world with sales of over 5.52 million cases
McDowell's No.1 Celebration Rum is one of the fastest growing rum
brands in the world with sales of over 5.04 million cases
62
McDowell's No.1 Whisky is the 5th largest non-scotch whisky and 8th
largest whisky (including Scotch) in the world.
Offers 140 brands
Bagpiper Whisky is India's Largest selling whisky with sales of 10
million cases last year
McDowell & Company Limited (McD)
McDowell is the major player in the spirits business. The Group's spirits
business sold over 50 million cases .The Division has scaled unprecedented
global heights and now occupies the position of the 3rd largest spirits marketer
in the world .It offers 140 brands at varying price points - attracting consumers
of every taste- and combined with its unparalleled reach has become an object
of envy for the competition. Some of its brands like McDowell's No.1 Whisky,
No.1 Celebration Rum and No.1 Brandy occupy the top rungs in India in terms
of volume. McDowell No.1 Brandy is the largest selling brandy in the world.
McDowell has always powered ahead riding on innovations. A series of
packaging innovations have added value and assurance for the customer. These
include holograms, non-refillable 'guala' caps, and tamper proof tear off caps
63
based on German technology. Not surprisingly, McDowell occupies the pride of
place in UB Group, contributing to a major chunk of the Group's turnover.
Beer
United Breweries Limited (UBL)
Upon demerger of the beer business from the erstwhile United Breweries
Limited, the newly constituted UBL has become the main brewing company of
the UB Group. The latter has now been renamed as United Breweries
(Holdings) Limited. UBL has been associated with brewing for over five
decades and and commands a domestic market share in excess of 50%. Its
leading brands readily brings cheer all over India and abroad - that include
Kingfisher, UB Export, London Pilsner, Premium Ice and Kalyani Black Label.
The Kingfisher towers over every beer brand not only in India but on foreign
shores too. While Kingfisher Premium has raced to sales of 18.8 million cases,
Kingfisher Strong became the fastest growing brand. Its sales crossed the 10
million cases mark within 5 years of introduction. The brand has also
comfortably outpaced the industry average growth- notching up 29 % growth as
against 3% for the industry.
64
Relentless innovation has played a major part in these achievements. For non-
stop partying, a 5-liter keg of Kingfisher draught beer has been introduced that
blends versatility with economy. A four pack has also been introduced by
London Pilsner -another brand within the fold. An attractive new value pack has
also been introduced for the traditional markets.
To build upon its leadership position, UBL has broken new grounds with a
multi-faceted strategic alliance with Scottish & Newcastle Plc. (S&N). While
allowing UBL to market S&N's international brands in India, it will also
leverage S&N's global network while further globalization the Kingfisher brand.
Commands a domestic market share of over 50%
Leading brands are Kingfisher, UB Export, London Pilsner, Premium Ice
and Kalyani Black Label.
Kingfisher to bring in "international good times" with S & N's brands.
And Kingfisher will also bring cheer abroad.
Kingfisher is the only Indian Beer brand available in 52 countries and
also on international flights.
Every third beer sold in India is Kingfisher.
65
PROMOTIONAL MOVES OF UB GROUP
FROM TIME TO TIME
KINGFISHER CORPORATE CRICKET
The third kingfisher Corporate Cricket was played from August to November in
the year 2011. Twenty-four corporate participated in this event.
The matches were played over weekends at the indoor stadium at Karnataka
State Cricket Association.
The finalists were Infosys and Max Health Scribe. Infosys emerged the
winner at the end of the highly competitive match.
The prize distribution function was held at the Karnataka Cricket
Association.
Mr. Jawagal Srinath, the pace bowler of Indian Cricket team at that time
was the Chief Guest and Mr. Raghavanda gave away the prizes.
From the board’s room to the pitch, team spirit reigned.
The third kingfisher Cricket concluded with all involved looking forward
for the next cricketing season.
66
KINGFISHER MAKES A SPASH AT AD-
ASIA IN JAIPUR
The much talked about ad-Asia event was held at Jaipur in the third week
of November 2010.
The seminars, held at the Birla Auditorium, saw participation of nearly
1500 people from all around Asia. Gala dinners were organized at exotic
locales like the City Palace, the ram Bagh Palace, the Jai Mahal Hotel, the
Polo Club and the Gold Palace Resort.
Kingfisher was the exclusive beer brand at this event. Besides having
exclusive bars at each of these venues, it was the most visible brand
through out the event.
All the delegates admired Kingfisher’s ‘Enter the World of Kingfisher’
campaign with Speed Style and Fun.
Kingfisher stole the show in style once again.
KINGFISHER “NO RULES” NIGHT
Pub nights in Delhi on may 6th December just get better with KINGFISHER
BRIGADE adding to the fun. They were nights of interactive fun where the
kingfisher brigade, attractively dressed up in Kingfisher attire entered the
selected pubs in style The Dj’s welcomed the team with the Kingfisher oo-la-la-
67
jingle. The Kingfisher brigade had its own version of Eric Clapton unplugged,
who obliged the guests with request songs. There were lots of games and
attractive prizes as well.
The event was well supported with regular RJ mentions on RED FM. ‘NO
RULES’ were nights full of fun, frolic, live guitar and Kingfisher.
KINGFISHER COORG TRINGULAR GOLF
TOURNAMENT
The Kingfisher Coorg Triangular Golf Tournament was held at Coorg
from November 15 to 17, 2004.
The USP of the tournament is that it was played at three different
courses-Bittangal, Polibetta and Mercara Downs on three different days.
Over the years this tournament has caught attention of golfers from all
centers of South India.
This year, the tournament showcased 110 participants from Coorg,
Bangalore Mysore, Coimbatore, etc. Each participant enjoyed the game
and had a good time with chilled Kingfisher after the tough game.
In the evening, the prize distribution function was packed with live music
by a Bangalore band, just 4 you.
The golfers enjoyed the music and danced to the tunes till the wee hours.
68
“CHIKKA BOTTLE KICK TOTAL”
In the spirit of UB’s consistent effort give value to the customer, another
product donned the limelight with the launch of KINGFISHER MINI 250 ml at
Rs.19.
For the first time, strong beer is being made available at this price point.
KINGFISHER MINI is expected to sweep the small strong beer market in
Bangalore before taking on the rest of Karnataka.
The brand was launched with much fanfare and a well planned marketing mix
in terms of both visibility and reach. POP material, Press ads and Hoarding
were provided in order to create mind share for the product. Baichung Bhutia
endorses the brand.
The punch line” CHIKKA BOTTLE KICK TOTAL” was created so that
potential consumers would be able to relate to the brand. Mr. Ramesh
Vishwananthan addressed the press meet at the Taj West End. This launch was
in congruence with UB’s policy of consistently trying to evolve the market in
the wake of its reputation as an industry leader. KFS MINI is well on its way to
break sales records in Bangalore, after which, it will be rolled out into the other
markers of Karnataka.
69
DJ-KINGFISHER STRONG REMIX NITE AT
AGRA AND LUCKNOW
Kingfisher believes in having fun and doing it in style. So Kingfisher Strong co
produced the Dj-Kingfisher Strong Remix Nite with Dainik Jagran.
The Remix Nite was a series of two events held on December 12, 2004 at
Lucknow and on December 13,2004 at Agra. Dj’s Jack and Harsh turned tables
with style as the crowd thronged the dance floor.
Beautiful Pooja Mishra (of Zee Music fame) mesmerized the crowd with her
cute.
One-liners. Remix numbers were belted out and Kingfisher pint beer was on the
media partner for this event.
KINGFISHER MAGIC AT CONGO
The magical anticipation was finally over on December 6, 2011. Dr. Vijay
Mallya, kicked off the first Congo season in Goa. Spread over an acre of Goa’s
Candolim strip (opposite Kingfisher Villa), Congo promises to be an
adventurous dining experience. Ace designer, Malini Ramani, put together a
special collection for the event based on “The Elements” fire, air and water.
70
With all the elements in place, Dr. Vijay Mallya, Congo, Kingfisher, Malini
Ramani, India’s top models, choreographers, dancer and performers; it was a
magical night with a charm that will not be forgotten.
Flamboyant Mallya launches Kingfisher airlines
Few Indian industrialists can compete with flamboyant liquor baron Vijay
Mallya when it comes to throwing flashy parties and the launch of his new
airline division Kingfisher Airlines was no exception.
With foot-tapping music, a laser show, food and drinks, Mallya - hailed as
India's own Richard Branson - announced Saturday night his foray into the
country's rapidly growing aviation sector on a day when his only son Siddhartha
turned 18.
It may have been billed as a birthday gift from a doting father to his London-
based son but the head of the diversified UB Group is rearing to make his mark
in the Indian sky after carving out a niche for himself in the liquor business.
After unveiling the red and white Airbus 320-200 amid the bursting of crackers
and loud music, Mallya, 49, said Kingfisher Airlines would begin commercial
operations from Monday.
"Its to the new India that we offer Kingfisher Airlines," said Mallya, chairman
of the Bangalore-headquartered UB Group that makes the largest-selling
Kingfisher beer.
71
Methodology
1. Primary Data: This data is the data of collected in the form
of market survey which was done with the help of
questionnaire’s
a) Questionnaire: I interviewed 30 people for the purpose of
my questionnaires under the guidance of my guide.
2. Secondary Data: Secondary data was collected by going
through various websites which were:
www.yahoo.com
www.expressindia.com
www.hindustantimes.com
www.bacardi.com
72
Information about the U.B. Group was made qualitative
through the United Breweries Ltd Brochure.
3. Sampling Decisions
a) My sample size was 20
b) Sampling method
Random sampling method was used i.e. people were handpicked and no conscious
effort was made.
Questionnaire for Market Research
Name: _____________ Contact No: ________________
Gender: Male Female
Q1 How old are you? ………………………………….
Q2 Which of these best describes your job?Managerial.......................................................Professional......................................................Clerical..............................................................Skilled Trades..................................................Manual worker................................................Student..............................................................Other PLEASE WRITE IN _______________
Q3. Do you buy, drink liquor or visit any liquor outlet at all?Yes.....................................................................No......................................................................
73
Q4. Have you ever seen advertisement of liquor? Yes.................................................................... No……………………………………………
Yes…………………………………………….No……………………………………………..
Q8. Which liquor advertisement do you see frequently? Please Rank accordingly?Beer...................................................................Whisky..............................................................Rum...................................................................Vodka................................................................Jinn....................................................................Breezers............................................................None of these....................................................
Q9. Which products, are these ads actually promoting? Liquor………………………………………… Beer...................................................................Music CDs........................................................Adventure Holidays.........................................Mineral Water.................................................Sports Accessories...........................................Musical Nights.................................................
Yes…………………………………………….
No……………………………………………..
Q11. Where have you seen these ads?Pubs and Bars……………………………………Shopping malls………………………………….Social Gathering…………………………………Five Star Hotels…………………………………T.V………………………………………………Magazines……………………………………….Sports Kit…………………………………….…
74
Other (PLEASE WRITE IN)_________....... Does surrogate ads stimulate your purchase decision for the alone mentioned
brands?Yes………………………………………………No……………………………………………….
ANALYSIS AND GRAPHS
Population: 50 PeopleSample Size: 30 People
Q1. Do you buy, drink liquor or visit any liquor outlet at all?
75
Q2 Have you ever seen advertisement of liquor?
Q3 Do you frequently see the liquor advertisement?
76
Q4 Which one of them you recall the most? Please Specify
77
Q5 Do you know advertising of liquor is banned in India?
78
Q6 Which products, are these ads actually promoting?
79
Q7 Have you seen the advertisement of other product like cigarette, which Is also banned?
Q8 where have you seen these ads?
80
81
Conclusion
According to the survey conducted;
a) 50% of the peopled consume liquor
b) 35% did not consume liquor
c) 15% occasionally as rarely consume liquor
2. Most recall liquor ads were of kingfisher, royal stag and
Bacardi cd.
3. 60% of the people have noticed the Bacardi CD ad more than
Mc Dowell’s club soda and mineral water.
4. There was a 100% recall value for the actual liquor product
looking at the surrogate versions.
5. 60% of people agreed that surrogate adjust stimulates their
purchase decision.
6. More than 90% of the people that liquor advertising are
banned in India.
7.More than 50% of the people have seen the ads on T.V. followed
by magazines, shopping malls and bars and pubs.
8.More than 70% of the people said the ads are actually
promoting liquor.
My research objective was to find out that “how successful has
surrogate adverting been in promoting the liquor brand” 60% of
the people have agreed acc to the alone mentioned data that
82
surrogate advertising has been successful in promoting the liquor
brand.
To second objective is surrogate advertising actually launching a
new product or is it were manipulation of the existing liquor
brands for sales? We get a 100% recall value for the actual liquor
products even though surrogate versions were being mentioned
on T.V.
Hence, I can conclude by saying that surrogate advertising
stimulates of liquor brand is more of a less than a negative aspect
used.
83
BIBLIOGRAPHY
U B Group Brochure, Jan 2011, Issue No. 5
Links
www.bacardi.com,
www.yahoo.com
www.expressindia.com
www.hindustantimes.com, June 2011
www.theubgroup.com
84