Dishonesty in advertising has proved very unprofitable. – Leo Burnett
Table of Contents
The Rise of Unethical Surrogate Marketing: A Hidden Threat.
Understanding Surrogate Marketing and its Benefits for Companies.
3 Major Companies Employing Surrogate Marketing.
Legal Loopholes in India and the US that Enable Misused Surrogate Marketing.
Celebrity Endorsements: Fueling the Fire of Unethical Surrogate Marketing.
The Societal Impact of Unethical Surrogate Marketing.
Personal Anecdotes: Real-Life Consequences of Negative Surrogate Marketing Tactics.
Expert Insights and Recommendations for Combating Unethical Surrogate Marketing Practices.
6 Tips to Combat Unethical Surrogate Marketing: Policymakers, Law Enforcement, and Celebrities Unite.
Conclusion and Lessons: Taking a Stand Against the Misuse of Surrogate Marketing.
The Rise of Unethical Surrogate Marketing: A Hidden Threat
Unethical surrogate marketing has emerged as a deceptive practice used by companies to promote restricted products like tobacco, alcohol, and betting platforms, particularly in the Indian and US markets. By exploiting legal loopholes, these brands manage to advertise their products indirectly, thereby undermining regulations and endangering the well-being of society, especially young audiences.
This article aims to shed light on the hidden world of negative surrogate marketing, its legal aspects, the role of celebrity endorsements, and its societal impact, while offering guidance for parents to help their children avoid falling prey to such manipulative tactics.
Understanding Surrogate Marketing and its Benefits for Companies
Surrogate marketing is a tactic employed by companies to indirectly advertise and promote products that are legally restricted or banned from direct advertising. This is achieved by advertising a different, often related, product or service that shares the same brand name, logo, or visual elements as the restricted product. The primary objective of surrogate marketing is to create a strong association between the advertised product and the restricted one in the minds of consumers, thereby driving brand awareness and sales.
Surrogate marketing offers several benefits to companies that engage in it:
Brand Recognition: By advertising surrogate products, companies can maintain and enhance their brand recognition despite the restrictions on direct advertising of their core products.
Customer Loyalty: Surrogate marketing helps companies to stay connected with their customers and reinforce brand loyalty, as the surrogate ads keep their brand name visible and fresh in the minds of the audience.
Market Expansion: Through surrogate marketing, companies can explore new markets or product categories that can ultimately contribute to their overall growth and revenue generation.
Competitive Advantage: As some competitors might not engage in surrogate marketing due to ethical concerns or lack of resources, companies that do employ this strategy can gain a competitive edge in the market.
While surrogate marketing can be beneficial for companies, it is essential to recognize and address its negative and unethical applications, particularly when used to promote harmful products that pose risks to public health and well-being.
3 Major Companies Employing Surrogate Marketing
Surrogate marketing practices have grown over the years, as companies operating in restricted industries have sought innovative ways to circumvent advertising bans and maintain brand visibility. As legal regulations have become stricter, the creativity and complexity of surrogate marketing campaigns have increased to adapt and capitalize on the existing loopholes.
Some prominent companies that have employed surrogate marketing techniques include:
Diageo: The multinational alcoholic beverage company has engaged in surrogate marketing by promoting non-alcoholic products like mineral water, soda, and fruit juices under their well-known brand names. As a result, they have managed to maintain a strong brand presence and drive sales for their alcoholic beverages. In 2020, Diageo reported net sales of £11.8 billion and an operating profit of £2.4 billion. (Diageo)
Philip Morris International: The tobacco giant has used surrogate marketing to promote its products through advertising campaigns for seemingly unrelated items, such as lighters, apparel, and accessories. By leveraging their recognizable brand elements, Philip Morris has been able to maintain brand recognition and loyalty among consumers. In 2020, the company reported net revenues of $28.7 billion and a net income of $8.1 billion. (SEC)
United Breweries (Kingfisher): The Indian alcohol company has employed surrogate marketing to advertise its products through various non-alcoholic offerings, including packaged drinking water and airlines, as well as sponsoring major sports events like the Indian Premier League (IPL). This strategy has helped Kingfisher maintain its position as one of the leading alcohol brands in India. In the fiscal year 2019-2020, United Breweries reported consolidated net revenue of ₹14,123.8 crores (approximately $1.89 billion) and a net profit of ₹394.2 crores (approximately $52.7 million). (UB)
It is important to note that these revenue and profit figures are not solely attributable to surrogate marketing, as these companies have a diverse portfolio of products and a wide range of marketing strategies. However, surrogate marketing has undoubtedly played a role in maintaining brand visibility and driving sales for their restricted products.
As surrogate marketing practices continue to evolve and grow, it is crucial for policymakers and regulators to address the negative consequences of this strategy, particularly when it comes to promoting harmful products that pose risks to public health and well-being.
Legal Loopholes in India and the US that Enable Misused Surrogate Marketing
In India, regulations like Section 2(28) of the Consumer Protection Act, 2019, the Cigarette and Other Tobacco Products Act, 2003, and the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, have been enacted to prevent misleading advertisements and the promotion of restricted products. However, creative brands have managed to find loopholes that allow them to continue their negative surrogate marketing practices. (MoHFW)
For example, they may advertise a product with a similar name or logo to their restricted offering, subtly creating a connection in the consumer's mind. In the US, although the legal landscape differs, companies still manage to skirt regulations, utilizing similar tactics to promote their restricted products through indirect means.
India has three layers of prohibition on tobacco and liquor product advertisements: (CIS)
The Cable Television Networks (Regulation) Act, 1995.
The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003.
The Advertising Standards Council of India (ASCI) Code.
Despite these regulations, companies have found ways to continue surrogate marketing practices through subtle advertising or advertising of products with similar names or logos.
Celebrity Endorsements: Fueling the Fire of Unethical Surrogate Marketing
Celebrities have played a significant role in the success of negative surrogate marketing campaigns, lending their credibility and influence to promote products that would otherwise be restricted from advertising. In India, events like the Indian Premier League (IPL) have been sponsored by alcohol companies such as Kingfisher, which have used surrogate ads to bypass legal restrictions. Additionally, Bollywood celebrities have endorsed tobacco products through misleading advertisements, further encouraging the public to consume these harmful products.
In the late nineties, movies and popular culture also played a significant role in normalizing the use of tobacco products, leading to social conformity among young people who saw their favorite actors using and endorsing these products on-screen. This widespread acceptance made it easier for companies to continue their unethical surrogate marketing efforts, capitalizing on the vulnerability of impressionable audiences.
The Societal Impact of Unethical Surrogate Marketing
The consequences of unethical surrogate marketing on society are profound, particularly for parents and young audiences who may not be fully aware of the manipulative tactics used by companies to promote restricted products. These subtle advertisements and endorsements can have a lasting impact on impressionable minds, leading to increased curiosity and consumption of potentially harmful products. The prevalence of misused surrogate marketing can also contribute to the normalization of risky behaviors, making it even more challenging for parents to educate their children about the potential dangers associated with using these products.
The rise of betting platforms that disguise themselves as fantasy sports leagues, such as Dream11 , MPL and 1XBet, are another examples of negative surrogate marketing that has significant consequences for young people. These platforms lure users with the promise of easy money and excitement, often leading to financial losses and addiction. It is essential for parents to be aware of these platforms and their potential risks, in order to guide their children in making informed decisions.
Personal Anecdotes: Real-Life Consequences of Negative Surrogate Marketing Tactics
As I reflect on the negative effects of unethical surrogate marketing, I recall the story of a close friend who suffered significant financial losses due to betting apps disguised as fantasy leagues. This experience serves as a stark reminder of the deceptive nature of negative surrogate marketing and the risks it poses for young people who may not recognize the underlying agenda of such platforms.
Similarly, I remember the social conformity surrounding tobacco usage in the late nineties, driven by the influence of movies and celebrity endorsements. At that time, many of us were swayed by the glamour associated with these products, not realizing the long-term consequences they would have on our health and well-being. Looking back, I can see how the manipulative tactics used by tobacco companies and their surrogates played a significant role in shaping our perceptions and behaviors.
Expert Insights and Recommendations for Combating Unethical Surrogate Marketing Practices
To address the challenges posed by unethical surrogate marketing, experts recommend a multi-faceted approach that includes raising awareness among parents and young audiences, advocating for stronger regulations to close legal loopholes, and holding companies and celebrities accountable for their endorsements of restricted products.
Parents play a crucial role in educating their children about the truth behind surrogate ads and teaching them to question the intent of advertisements and celebrity endorsements. Open conversations about the potential risks associated with using restricted products can help young people make better choices and avoid falling victim to the deceptive tactics of unethical surrogate marketing. In addition, supporting organizations and initiatives that promote ethical advertising practices can contribute to a more responsible and transparent marketing landscape.
6 Tips to Combat Unethical Surrogate Marketing: Policymakers, Law Enforcement, and Celebrities Unite
To effectively address the issue of negative surrogate marketing, a united front of policymakers, law enforcement agencies, and celebrities is necessary. By working together, they can create a comprehensive strategy to prevent companies from exploiting legal loopholes and protect vulnerable audiences from the negative impact of surrogate advertising.
Here are some suggestions and advice for these stakeholders to consider:
Strengthening regulations: Policymakers should work towards updating existing laws and regulations to close loopholes that allow surrogate marketing to thrive. By ensuring that restrictions are comprehensive and clear, it will be more difficult for companies to evade the law and promote their restricted products.
Strict enforcement: Law enforcement agencies must be vigilant in identifying and penalizing companies that engage in surrogate marketing practices. This includes imposing fines and other punitive measures to deter businesses from continuing such deceptive tactics.
Encourage ethical endorsements: Celebrities have a powerful influence on their audiences, and they can play a crucial role in promoting ethical advertising practices. They should be mindful of the products and companies they endorse and strive to promote only those that align with their values and contribute positively to society.
Public awareness campaigns: Policymakers, law enforcement agencies, and celebrities can collaborate on public awareness campaigns to educate people about the dangers of surrogate marketing and the importance of making informed choices. Such campaigns can empower audiences to question the intent behind advertisements and endorsements, and make better decisions about the products they consume.
Industry self-regulation: Encouraging advertising and marketing industries to adopt self-regulation measures can contribute to a more responsible advertising environment. By promoting ethical guidelines and best practices, industry stakeholders can hold themselves and their peers accountable for the messages they disseminate.
Collaboration with NGOs and advocacy groups: Policymakers, lawmen, and celebrities can partner with NGOs and advocacy groups to amplify their efforts in combating surrogate marketing. These collaborations can help develop and implement effective strategies to raise awareness, enact change, and protect vulnerable audiences.
By working together, policymakers, law enforcement agencies, and celebrities can create a powerful alliance against misused surrogate marketing, ensuring that companies are held accountable for their actions and that society is better protected from the harmful effects of deceptive advertising practices.
Conclusion and Lessons: Taking a Stand Against the Misuse of Surrogate Marketing
It is essential to recognize the unethical use of surrogate marketing as a significant threat to public health and social well-being. By raising awareness, advocating for stronger regulations, and holding companies and celebrities accountable, we can work together to protect vulnerable audiences from the negative effects of deceptive advertising practices. As a society, we must take a stand against the misuse of surrogate marketing and strive to create a more responsible and transparent marketing landscape.
In conclusion, let's take a pledge to abolish the usage of harmful surrogate marketing tactics and boycott the companies that engage in them. We invite you to share your personal experiences and comments on this issue, and to visit www.sdlognation.in to subscribe for more thought-provoking articles. Together, we can make a difference.
Reference List
1) CIS.org
2) SEC
3) Diageo.com
4) UB
6) MoHFW
Surrogate advertising can have a negative impact on society by promoting unhealthy habits or behaviors. This can contribute to social issues such as addiction, obesity, and related health problems..