There is surrogate advertising — the advertising pertains to alcoholic drink Kingfisher, but what is advertised is Kingfisher mineral water, club glasses are advertised to promote Carlsberg, music CDs are advertised to promote Seagram’s Imperial Blue. ASCI guidelines distinguish between surrogate advertising (prohibited by law) and brand extension advertising (legally permitted). ASCI reports the cases of surrogate advertising to various authorities for appropriate action. There are loopholes here. If a brand extension product is available in at least 10 per cent of the stores as does the leading product in that category or if its sales reach Rs.5 crore annually or Rs.1 crore in the state it is sold, they are deemed to be in order. The well-funded liquor and tobacco lobbies take advantage of this provision.
The government intends to bring new regulation that will outlaw advertising for non-alcoholic items (mineral water, club glasses, soda, music CDs) if they display the same logo or branding as does the alcoholic brand. The violation of the rule would entail fines of up to Rs.50 lac, while the celebrity ambassadors promoting such brands could face an endorsement ban of up to three years. Thus, both the celebrity and the marketer will be held accountable.
Brands will have to take customized and targeted approach to reach the customers. Digital platforms will be crucial to enable campaigns to engage with targeted audience. There will be personalized ads. Thus, digital media will be the unintended beneficiary of all this. Companies can take social responsibility initiatives and community engagement to build brand loyalty.