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Liquor majors rework marketing, brand promotion strategies 

Kavita K Bhaskaran  
New Delhi, Oct 4: Anticipating a steep fall in sales following ban on liquor advertising, major players such as United Breweries, Pernod Ricard, Bacardi, Seagram and Shaw Wallace are re-working their marketing and brand promotion strategies.

The Confederation of Indian Alchoholic Beverage Companies (CIABC) and the broadcasters are trying hard to convince the information and broadcasting ministry to lift the ban, despite the new minister Sushma Swaraj's known opposition to liquor advertising.

The biggest worry of the industry is a slump in sales, specially in case of brands which are new but were backed by large advertising budgets. According to Pernod Ricard's vice-president marketing, Namita Chaudhry, "We are relooking at our brand promotion strategy. Now that advertising on television is banned, we have to look at various other techniques of promoting our brand as a lack of brand awareness will effect our sales. It will have a very bad effect on sales specially of new brands like us."

According to Mrs Chaudhry, the CIABC has taken up the issue seriously and has asked the government to reconsider its decision. Hence companies have little choice but to revisit their marketing and communications plans because there is always the probability that this law is here for good, she added.

A senior official of United Breweries said, "We have already started working on an alternative marketing communication plan because we feel the chances of the law being revoked are bleak under the given circumstances." Agreeing that all other means of communication are slow, and would not have the same impact as a television advertisement, but right now the liquor manufacturers have to look at alternative methods of brand promotion before this ban starts hitting the sales very hard. Sources also informed that Seagrams and Shaw Wallace are also relooking at their brand promotion strategy.

Bacardi's managing director Jayant Kapoor also agreed that liquor companies will have to look at alternative means of brand communication in the current scenario, if the ban is not lifted. According to him, it is fact that this ban on liquor advertising is a law today and one does not know whether it will be revoked. Though the CIABC on its part has made a representation to the Government, the latter has still got to respond.

Mr Kapoor said that the liquor companies have a code of conduct for advertising that they have adhered too, hence this ban was uncalled for. He said in the representation to the I&B ministry, CIABC had asked the Government to reconsider its decision and come to the negotiating table to try and work out an amicable solution. He said, we have even offered the Government an option whereby it can have an I&B official on our panel, who can censor our advertisements before broadcast.

Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.

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