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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

Vol-IV, No.-XI,I JUNE-2015 (ONLINE ISSN 2319-250X)

SURROGATE ADVERTISING ON SATELLITE TELEVISION: INDIAN EXPERIENCE DR. SASWATI GANGOPADHYAY Associate Professor Dept of Mass Communication University of Burdwan &

MR. SOUMYA DUTTA Assistant Professor Dept of Journalism & Mass Communication Loreto College, Kolkata

ABSTRACT Surrogate advertising has been an issue of concern worldwide because it successfully evades the rules which bar certain products to be advertised in television or other mass media. It is not a new phenomenon; it is in practice albeit skilfully from earlier times. Cigarette and liquor companies have been among the prime sponsors of sporting events worldwide. There has been debate over the extent of the ban on these types of advertisements with the liquor and tobacco producing companies criticising the move as hypocritical. However, while there can be enough of argument in favour of enforcing ban on such advertisements what came up as an interesting development in India was skilful use of surrogate advertisements to drive home the message. Starting with tobacco brands to liquor surrogate advertisements made their presence felt in television. Satellite television channels are governed by their own policies and are not under the direct control of the government; hence, surrogate advertisements use the flexible nature of these channels to good effect. Advertisers of these products are now using brand extension method for promotion. These advertisements glorify a lifestyle which is even worse. In many cases the media content covertly influence the media consumers to follow a particular trend or pattern. Artificial need for products is generated by juxtaposing commercial messages alongside media content. Teenagers are being targeted who are supposed to be a vulnerable group. There are loopholes in the laws regarding surrogating advertising in India which the companies are using to their advantage. This paper will try to understand the nature of surrogate advertising on satellite television in India. KEY WORDS:

ADVERTISING, SURROGATE ADVERTISING IN INDIA, SATELLITE TELEVISION, BRAND EXTENSION, BRAND PROMOTION www.jbmcr.org

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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

INTRODUCTION Advertising of goods and services over television has taken a new leap with the start of transnational transmissions. Corporate players in search of new markets across the world have found a powerful tool that can persuade audience on making new buying decisions and avail new services. Advertisements appearing in between news bulletins, favourite movies and serials are supposed to drive home the commercial message. Most of these advertisements are delightfully crafted for viewing pleasure. Painting a rosy picture and informing effectively as well, advertisements tend to increase the need for goods and services amongst individuals. There are advertisements which target different age groups, people in different income slabs and across gender. The same advertisement is hammered round the clock to increase its retentive value on audience mindscape. Advertisements require a lot of money with global brands advertising across television channels, the total expenditure is high. However, all these produce the desired results. Media scholars and social scientists working on television advertisements have dwelt on its impact on audience. Serious negative impacts have been discussed with far reaching ramifications. Those vociferously in favour of advertisement as an effective mass medium have pointed out the narrow approach in blaming advertisements for social ills and have instead advocated more viewer discretion and maturity. Different schools of thought have given contrasting opinions and widened the debate. Television advertisement has proved its capability of reaching and holding large audience belonging to different demographic groups. There is no denying the fact that advertisements to some extent lay guidelines of lifestyle from time to time. However, this does not mean that they dictate the taste of the consumer. Nevertheless, advertisements create the hype regarding a product or service which is then accepted by a sizeable population to be in tune with their time. Cut throat competition among advertisers to occupy space in viewers mind has led to innovative methods. Some of these methods are questionable to say the least and surrogate advertising is one such method. Surrogate advertising stands for substituting the brand image and advertising of one product to promote another product of the same brand which is usually forbidden from advertising. Generally liquor and tobacco products use surrogate advertising as law forbids the general advertising of these products. An essential function of surrogate advertising is brand recall and not necessarily an exercise in increasing sales (Panda, 2010). Techniques used in surrogate advertisement may include advertising another product with the same brand name, sponsoring community events, issuing public service announcements or sponsoring sports team (Patil & Hurne, 2011). Surrogate advertising and its use has raised some questions which warrant further study. Objectives of Research The present study is meant to ascertain the following: 1. The nature and extent of surrogate advertising in India 2. The role satellite television is playing in facilitating surrogate advertising 3. How surrogate advertising is used as a strategy of brand extension to overcome the legal hurdles Study Scope and Relevance This study has been limited to three brands. Two of them are major liquor brands and one is a major pan masala brand. The ambit of the study has been limited to television commercials as available on youtube. The websites have also been studied to analyse the advertisements uploaded there. A detailed study of all the satellite television channels for the occurrence of these advertisements was not done due to unavailability of a data bank of such commercials on television over a period of time. A number of other brands have also been left out to objectively assess the extent and nature of these advertisements in the chosen ones. The study is relevant to understand the nuances of surrogate advertising and how it is used as a brand in the present scenario. Also the relevance and importance of the mass medium in furthering the cause of surrogate advertising.

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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

Methodology This study is based on analysis of secondary data (literature) available on the subject and case studies of advertisements of three brands: Royal Stag, United Spirits and Kamala Pasand. The first two are associated with liquor and the last one is associated with pan masala. The television commercials uploaded on youtube have been studied. In case of Royal Stag as well as United Spirits, the websites have also been accessed to study their own claims as well as the television commercials posted in their websites. Literature Review on Surrogate Advertising Surrogate advertising has been an issue of concern worldwide because it successfully evades the rules which bar certain products to be advertised in television or other mass media. In India liquor brands have been advertised in guise of ice cream soda and music compact discs. Bollywood megastars have been roped in for such surrogate advertisements of big liquor brands. This has provided a much needed relief to these companies because they could convey their message to the intended audience and also escape the rigours of law which prohibits such advertisements. Different television events are being co-sponsored by these companies. Brands like Pan Parag and Rajnigandha freely air their advertisements without differentiating much between their tobacco (gutka) and non tobacco (aromatic betel nut) versions (Fernando, 2009). Public get reminded of the tobacco brand names through advertisements. Advertisements of tobacco and alcoholic beverages through surrogate means are a controversial issue and government has failed to control the promotion of surrogate advertisements involving these products. These kinds of advertisements are done in the name of Soda, Mineral Water, CD & Cassette, Golf Accessories, Awards Fashion show and sponsorships (Dayal & Saini, 2011). Innovative means are being devised to reach the objective. Specific merchandise are now being promoted through celebrities by making them use or wear products in public appearances or through promotion of the products by them in media interviews without making it clear to the audience that these are paid endorsements (Bajpai, 2006). Surrogate Advertising in Television: The Global Scenario Surrogate advertising is not a new phenomenon; it is in practice albeit skilfully from earlier times. Cigarette and liquor companies have been among the prime sponsors of sporting events worldwide. Marlboro and Rothmans prominently featured in the world of motor sport, especially Formula One. Ferrari racing cars, the outfit of the drivers and the team personnel sport the Marlboro lettering. Due to harsh anti tobacco restrictions in the European Union and the West, the logo is masked however; it is in full view in countries like Malaysia and China (Philar, 2008). In USA though national television networks did not accept liquor advertising however, independent stations and cable networks have been telecasting advertisements of one liquor producer. According to 1998 estimates done by "USA Today" Budweiser Lizard commercials topped the charts among the most liked advertisements (Sailaja, 2007). As a country of origin, surrogate advertising started in U.K with advertisements for cocktail mixers, soda water and fruit juices using the names of well known popular brands (Mehta, 2003). Surrogate Advertising in India In India the Cable TV Regulation Act 1995, prohibits the advertisement of liquor and tobacco products on TV channels (Mehta, 2003). Rule 7(2) (viii) (a) of the Cable TV Regulation Act 1995 (CTNA) states that “No advertisement shall be permitted which promotes directly or indirectly production, sale or consumption of cigarettes, tobacco products, wine, alcohol, liquor or other intoxicants”. By August 2002, Information & Broadcasting Ministry, Government of India has banned twelve advertisements. Major satellite television channels like Sony, Zee, Aajtak and Star were issued show-cause notices asking them to give reasons for airing surrogate liquor advertisements. As a result all these four channels stopped showing such advertisements. Government of India ordered them to strictly abide by the Cable TV Regulation Act of 1995. To make matters stringent a private monitoring agency was hired to keep a watch on all advertisements and look into violations of the regulation (Sirisha, 2002). There has been debate over the extent of the ban on these types of www.jbmcr.org

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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

advertisements with the liquor and tobacco producing companies criticising the move as hypocritical. However, while there can be enough of argument in favour of enforcing ban on such advertisements what came up as an interesting development in India was skilful use of surrogate advertisements to drive home the message. Starting with tobacco brands to liquor surrogate advertisements made their presence felt in television. Satellite television channels are governed by their own policies and are not under the direct control of the government; hence, surrogate advertisements use the flexible nature of these channels to good effect. Advertisers of these products are now using brand extension method for promotion. Brand extension is the process of extending the same brand name for new products launched by the company. While there is no wrong in extending an already established brand name for establishing new products from the same fold but problem arises when this method is applied for products banned by the Government. This helps companies to dodge the law and project their surrogate advertisements effectively (Srivastav & Kochar, 2010). Branding decision for new products is important because it has to consider the appropriateness of fit between the product and the trademark in terms of association, attribution and connotation. Brand extension across products can be permitted except when the intension is to encourage consumption of products whose promotion is prohibited by law (Bhardwaj, 2009).The use of similar or identical brand names create confusion and incite youth sections to try out such products (Deccan Herald, 2012). The surrogate depiction of products like alcohol cause further damage when they are made a part of the content in television shows. It is well known that big screen films influnce the small screen shows and many TV actors are shown performing under the influence of alcohol. In a bid to create humour, stand-up comedians use alcoholic acts (Ray&Chugh, 2008). The Prohibition of Publication or Telecast of Vulgar, Obscene and Surrogate Advertisements and Remix songs by Print and Electronic Media Bill, 2004(6) unfortunately did not see the light of the day but broad guidelines were formulated by the legislature and handed over to the executive to frame the details under delegated legislation. For the first time an attempt was made for a legal definition of surrogate advertising through section 2(d) which states: ‘an advertisement which shows a substitute product in the guise of the real one which otherwise cannot be legally advertised through the print and electronic media.’ Section 3 of the said act prohibits the publication and telecast of surrogate advertisements and provides for punishment for those who violate the norms (Bhardwaj, 2009). Impact of surrogate advertisements on children, women and youth Children are always a vulnerable group because of their impressionable minds. It is alarming to know that each day 55,000 children in India start using tobacco. Gutkha, a harmful chewable tobacco is targeted towards the youth section of the country. In the recent past Bollywood had the dubious distinction of being one of the biggest markets for surrogate advertisement. In 2004 and 2005 89% of the released movies had smoking scenes. There is an increased level of awareness now and dangers associated with tobacco consumption are shown in the form of the warning before the start of a movie but the surreal depiction of characters consuming alcohol and tobacco on screen is not helping the cause. A research done by Salaam Bombay Foundation on 3260 children between age group of 12 and 17 years from municipal and private schools revealed a disturbing trend. Asked to recall the slogan of any tobacco product or brand, 71% recalled the slogan of Manikchand(guthka)Oonche log, oonchi pasand, 12 % recalled the slogan of Goa (guthka brand), 2 % recalled Sanket, 0.4% recalled Shimla while 15 % recalled other brands. 63 % could associate product with brand while 37 % could not. Children in that age group could clearly disassociate Manikchand Water (surrogate advertising) from Mankichand Gutkha (Impact of Surrogate Advertisements, 2009). In the wake of an alarming situation Maharashtra government banned the sale of gutkha and pan masala in the state, a move lauded by the children of Salaam Bombay Foundation for their healthy future(Roy, 2012). However, it should be noted that in spite of an assurance on the part of Information and Broadcasting Ministry that surrogate advertisements would be barred from appearing in any form of www.jbmcr.org

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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

media and a stricter surveillance mechanism should be implemented in 2008 (Sinha, 2008) the problem persists. According to some experts government has not defined properly what they consider as surrogate brands. There are lot of grey areas which needs to be clarified (Anand, 2009). Surrogate advertisement of liquor brands and tobacco products are mainly associated with the aspiration of a better lifestyle. Leading film actors feature in advertisements of Seagram’s Royalstag brand with the tag line “Its Your Life. MAKE IT LARGE”(Bhatt, 2012). The make it large segment is deliberately written in bold to harp on the desire for more material accomplishment in life. Though the advertisements promote Music CDs, Seagram is too well known a liquor brand to deceive. Pan masala companies are targeting women as well by advertising their tobacco free versions. A major pan masala company Rajnigandha produced an advertisement for television showing a young female Indian teacher in a foreign university taking out a pack of Rajnigandha from her bag at the end of the class (Rajnigandha, 2006). Rajnigandha has targeted the young and upwardly mobile population of India through their surrogate advertisements. A leading female model/actor of the country was showcased in the television commercials of Chaini Chaini Pan masala (Passion Film, 2010) which is a surrogate advertisement for Chaini Khaini, the tobacco variant. An assessment of the advertisement storyboard for Bagpiper Club Soda elucidates the problem. In the advertisement young teenagers out on a picnic are shown who are bored. Suddenly a leading actor of Bollywood pops out of the copy of an entertainment magazine and show them how to have fun. Soon girls of another group who were partying nearby join them and gradually the boys also follow. The actor then takes out a bottle of Bagpiper Club Soda and adds, “Khoob jamega rang jab mil baithenge teen yaar. Aap, main aur Bagpiper Club Soda."(Bagpiper Storyboard, n.d.).Apart from the obvious fact that it is a surrogate advertisement for Bagpiper Whisky, the idea conveyed raise questions. Teenagers are being targeted who are supposed to be a vulnerable group. Apart from boys the appeal is towards young girls as well. CASE STUDY - I Royal Stag Seagram’s Royal Stag is a premium liquor brand of Pernod Ricard India. Its target audience are young, confident and progressive male audience of the country. The brand has a tagline-'It's your life, make it large'. Since laws have been tightened regarding advertisements on television by liquor and tobacco brands, Royal Stag have innovated ways to drive home its intended message. The brand has been sponsoring games and other entertainment related events in India as well as abroad. A look at any of its advertisements will reveal that the campaign has been designed across music cds while giving maximum exposure to the brand, its main objective and the target audience. There have been a number of advertisements featuring cricketers and movie stars to make them alluring to the youth sections. A study of the company’s website will reveal advertisements where ideas have been camouflaged. In the website www.pernod-ricard-india.com there are pictures of events where royal stag is a sponsor. There is image of an event-Amit Trivedi Live where the tag line reads Music sounds perfect with no artificial flavours. The sponsor is royal stag barrel select mega music, a clear allusion to royal stag barrel select whisky. 1 As information provided by the company itself they have forays into movie, music, cricket as well as television commercials. Royal Stag Large Short Films is a web portal that acts as a commonplace to showcase short films made by established directors of the industry as well as budding directors who want to “make it large”. Royal Stag Mega Music is a platform to promote music and is associated with television music events like Royal Stag MTV unplugged and Royal Stag Mirchi Music Award. Royal Stag Mega Cricket sponsors a number of cricketing events in the country and leading cricketers feature in their advertisements. Beneath the veil of their promotion of talent in various fields there is endorsement of their liquor business. The target audience is vulnerable. CASE STUDY - II 1

www.pernod-ricard-india.com/Brand.aspx?ID=24 as accessed on 21.07.2015

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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

United Spirits Royal Challenge is one of the premium whisky brands of United Spirits, a Diageo group company. Popular in India Royal Challenge has been associated with surrogate advertising to promote its main objective. In India the team Royal Challenger Bangalore is synonymous with the liquor brand-‘Royal Challenge’. Advertisements have also come up in television channels of after match parties being sponsored by “Signature” another well known liquor brand of United Spirits. A country like India where people are passionate about the game of cricket, surrogate advertisements of liquor brands can have damaging consequences. These advertisements glorify a lifestyle which can be debated. In the information provided in royal challenge brands web link: www.unitedspirits.in/royal-challenge-whisky2 they have been the proud partners of IPL teams like Royal Challenge Bangalore, Pune Warriors India, Delhi Daredevils and Kings XI Punjab. They also partner the Sahara Force India Formula 1 team, a competitive car racing team in the world circuit. Mcdowell’s No.1 another whisky brand from the same group is widely consumed in India and the brand uses surrogate advertising for television commercials. Macdowell No.1‘s television advertisement, ‘No.1 Yaari’3 shows the journey of three young friends through difficulties, fun and frolic. While celebrating the spirit of friendship the advertisement ends with the line-‘Asli yaari ka No.1 Ehsaas’ with McDowell’s No.1’s logo displayed prominently. McDowell sponsors a major football team of the country, Mohun Bagan. Focussing on youth, games and aspirations associated with them, McDowell is reaching its objective. CASE STUDY - III KAMLA PASAND PAN MASALA Kamla Pasand Pan Masala has come up with a surrogate advertisement of its product. The advertisement is titled, ‘Choti Choti Baatein’4. It revolves around an upwardly mobile successful and classy Indian young man who is travelling places and is known for his gentlemanly behaviour and taste. He finds success in things he does and loves to explore different hues of life. He takes pride in consuming Kamla Pasand Pan Masala which suits his lifestyle. There is a small statutory warning at the end that chewing of pan masala is injurious to health. However, this is too small in comparison to the alluring message that the beautifully crafted advertisement convey. Target audience, as observed earlier, the young people who love to experiment and are impressionable at times. The gloss of an elite lifestyle acts as the bait for undermining the larger health hazard which chewing of pan masala can lead to. CONCLUDING REMARKS In the case studies it is evident that surrogate advertising is broadcast across channels in Indian television. While such advertisements are difficult to come across in public broadcasters like Doordarshan, the trans-national nature of satellite channels makes regulations difficult. Surrogate advertisement of tobacco products, pan masala and liquor has far reaching consequences. The tones of these advertisements are alarming because they always appeal to aspirations for a better lifestyle. Indian law has certain guideline which does not allow advertisements of harmful products like alcohol and tobacco on television but surrogate advertisements have succeeded in manipulating the law. The successful implementation of the brand extension strategy by these companies has added a new dimension to the problem for the authorities. Punishments have to be stringent to deter companies as well as broadcasters from surrogate advertisements. Different television channels should be made accountable for accepting such advertisements. The alarming rate of alcohol consumption and intake of tobacco products at a young age is worrying for the nation. These 2

Website as accessed on 26.7.2015 Advertisement content as available on https://www.youtube.com/watch?v=kY51fOM-xZ4 accessed on 26.7.2015 4 Advertisement content as available on https://www.youtube.com/watch?v=ymCBZ6xXJkY accessed on 26.7.2015 3

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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

products are getting stereotyped as being the companion of good times and classy lifestyle. Making it mandatory to give statutory warning on sequences where alcohol intake and tobacco consumption is shown on television will not help if these surrogate advertisements are allowed to be aired. A greater awareness of the audience about these advertisements is the need of the hour along with the need for new legislations on surrogate advertisements.

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Journal of Business Management, Commerce & Research Vol-IV ,No.-XII, June.-2015 (ISSN 2319-250X)

Surrogate advertising on satellite television : Indian experience

REFERENCES 1) Panda, B. (2010). Surrogate Advertisements: India’s Response Towards International 2) Regulations. Retrieved from http://www.manupatra.com/roundup/330/Articles/barcelona.pdf 3) Patil, K.G.S, & Hurne, S.L. (2011). Surrogate Advertising : A Successful Marketing Strategy for Liquor,Whisky products. Indian Streams Research Journal 1(V), pp.1-6. Retrieved from http://www.isrj.net/UploadedData/221.pdf 4) Saini, N., & Dayal, M.(2011).Analytical Study of Alcohol and Tobacco Products' Advertisements:Outlook & Frontline Magazines (2006-10). Pragyaan : Journal of Mass Communication 9(1), pp 35-44. 5) Bajpai, P.(2006).Consumerism and advertising management: strategic challenges and social obligations. Retrieved from http://cloud2.gdnet.org/~research_papers/Consumerism%20and%20advertising%20management:%2 0strategic%20challenges%20and%20social%20obligations 6) Sailaja, U.P.(2007). Avenues Amid Advertising Regulations for socially 7) Unacceptable products with special focus on alcohol. Retrieved from http://dspace.iimk.ac.in/bitstream/2259/309/1/761-774.pdf 8) Mehta, S.P. (2003, May 23). Opinion: Surrogate advertising -Needed a spirited attack. 9) The Hindu Business Line. Retrieved from http://www.thehindubusinessline.in/2003/05/23/stories/2003052300090900.htm 10) Sirisha, D. (2002). Banning Liquor Surrogate Advertising. Retrieved from http://www.andhrauniversity.info/sde/case%20studies%20mba/024%20Banning%20LIquor%20Surro gate%20Advertising.pdf 11) Srivastav, K. M., & Kochar. B. (2010). Creativity and ethical dimensions: media space. SCMS Journal of Indian Management 7(3) 12) Bhardwaj, R. (2009). Surrogate Advertisements: A New Judicial Concern. Retrieved from http://www.123oye.com/job-articles/cyber-law/surrogate-advertising.htm 13) Ban surrogate advertisements of tobacco products (2012, June 20). Deccan Herald. Retrieved from http://www.deccanherald.com/content/258543/ban-surrogate-advertisements-tobaccoproducts.html 14) Ray, R.,& Chugh, G.(2008). PORTRAYAL OF ALCOHOL CONSUMPTION IN FILMS— DOES IT INFLUENCE? Addiction. 60(12) 1933-1934.doi : 10.1111/j.1360-0443.2008.02372.x 15) Impact of Surrogate Advertisements on Children [Web log post]. Retrieved from http://salaambombayfoundation.blogspot.in/2009/01/surrogate-tobacco-advertisementsimpact.html 16) Roy,D.S. (2012, July 12). Kids express gratitude for gutkha ban. The Times of India. Retrieved from http://articles.timesofindia.indiatimes.com/2012-07-12/mumbai/32647878_1_pan-masala-gutkhaban-sale 17) Sinha,K.(2008, March 8). Surrogate ads will be stopped, assures I&B. The Times of India. Retrieved from http://articles.timesofindia.indiatimes.com/2008-03-08/india/27765201_1_surrogate-ads-banon-liquor-products-accessories-and-mineral-water 18) Anand, T.(2009). Marketers in India Evade Alcohol Ad Ban by Promoting Surrogate Products. Retrieved from http://adage.com/article/global-news/advertising-india-s-marketers-evade-alcohol-adban/140509/ 19) Fernando,C.A.(2009). Business Ethics and Corporate Governance. Noida.India: Dorling Kindersley.pp5.11-5.12 20) Bagpiper Club Soda Storyboard.(n.d.).Retrieved from http://www.afaqs.com/advertising/storyboard/index.html?id=521 21) Philar, A. (2008, April 20).Nothing new about sporting surrogate ads. Deccan Herald. 22) Retrieved from http://archive.deccanherald.com/content/Apr202008/editpage2008041963621.asp 23) Rajnigandha TV Commercials.(2006). Montage 2005-2006 [video file].Retrieved from http://rajnigandha.com/rgc.aspx 24) Passion Film. (2010, May 3). Chaini Chaini. VOB [Video File]. Retrieved from http://www.youtube.com/watch?v=9ru-SJuLuZ0 25) Bhatt, S.(2012). Royal Stag brings Shahrukh and Saif together in new campaign. Retrieved from http://www.campaignindia.in/Video/319205,royal-stag-brings-shahrukh-and-saif-together-in-newcampaign.aspx

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