PRODUCT PLACEMENT INDUSTRY The net worth of the overall product placement market in 2004 was $3,460 million as compared to $2,400 million in 2003 ie an increase of 30.5 %. This is as per a study published by PQ Media. Product placement market – compound annual growth rate of 16.3% from 1999-2004. The value of television product placements increased to $1,870 million in 2004. ( increase of 46.4 %). It grew at an annual compound rate of 21.5% from 1999-2004. In films the value of product placements rose to $1,260 million in 2004, (increase of 14.6%)
SOFT BRANDING Product placement is the practice of including a brand name, product, package, sign or other trademark merchandise within a motion picture, television or other media vehicles for increasing the memorability of the brand and for instant recognition at the point of purchase. Product Placement technique is a very effective technique for getting a message through. So it can be effectively used for positioning and repositioning. Movies have been used as the most popular platform for product placement.
ADVANTAGES OF PRODUCT PLACEMENT • The viewer can’t ignore the placement without missing the plot in films. • Films reach a global audience; more people are going to the cinema and renting or buying videotapes and DVDs (Digital Video Disks), thus increasing the audience. • People can also see the product in use, usually by a celebrity, giving the product some sort of status and an endorsement. • More and more companies are using product placement because "traditional" advertising is becoming less and less effective. • With new technology such as digital video recorders, viewers now do not have to sit through commercials. • Product placement is a way for advertisers to break down the wall between television shows and commercials and to become part of the environment of the show.
3 WAYS OF PRODUCT PLACEMENT • The placement simply happens This placement occurs without any type of formal contractual agreement to place a particular product or brand. Though the product itself may not be seen or presented in a favorable light. • The placement is arranged and some of the product serves as compensation. This type of placement a particular product is shown in the Movie/ Serial and no extra amount is paid for that. The product itself serves as compensation. • The placement is arranged and there is financial compensation. In this type of product placement the company has to pay for the placement apart from the product.
PRODUCT PLACEMENT STRATEGY Implicit Product placement An implicit Product placement is not expressed formally. The brand name or the name of the firm appears without a clear demonstration of product benefits. For Eg., in a game show like KBC computers of Lenovo are used. In a movie, some scenes are shot in Pizza Hut. Integrated explicit Product Placement In this type of Product placement, the attributes and benefits of the product are clearly demonstrated: it plays an active role. For instance, a Pizza Hut pizza is delivered in a scene where everybody is hungry. Non integrated explicit Product Placement In a non integrated product placement the product or the brand is not integrated in the program or movie. The company/brand name may appear in the beginning of the program (this program is brought to you by) or the brand or company name appears on the screen. For instance when ever a cricket match is in progress, some products are displayed on the screen which has got some relevance to the match situation.
Types of Product Placement Corporate placement To improve company reputation. Ex Taj Hotels used for grand parties in movies, Lenovo used in game shows like KBC. Generic Placement To demonstrate the characteristics of a product without a particular brand name. Ex. Sunglasses and Shades used in Men in Black. Service placement To present public or private institution. Ex. Showing a particular Bank (like ICICI in KBC) or a particular restaurant in a particular movie Idea placement To include facts, opinions or statements in a plot. Discussing a movie like ‘KuchTohHai’ in a television serial like ‘KyunkiSaasBhiKabhiBahuThi’ is an Indirect promotion for the movie.
Continued.. Historic placement To illustrate the long tradition of a brand. For instance using the Indian postal services in a movie or using AIR INDIA as a traditional players in the field of mails and aviation respectively. Negative placement To present a competitor’s product in a negative context. It is generally not intentional. For instance if a particular flight crashes in a particular plot in the movie, it is not intentional. Innovation placement To introduce a new product. Ex. Swift Car was introduced in the movie ‘BuntyAurBabli’.
EXAMPLES OF INDIAN PLACEMENTS ON TELEVISION ICICIcheques placed prominently in KBC- Active placement Sony’s DEAL YA NO DEAL featuring CHLORMINT – Active & Passive placement DIAL ONE AUR JEETO: Passive placement In this game there is a host of prizes in the form of household goods and jewellery. These brands get visibility throughout the 20-25 minutes episode. This includes brands like D’Damas, TCL television, LORD home appliances. INDIAN IDOL 1 and REJOICE SHAMPOO – Passive placement . INDIAN IDOL 2 and PEPSI CAFECHINO – Hyper Active placement
Continued.. L’OREAL on ‘JASSI JAISI KOI NAHI’ DAIRY MILK plugged across five Star Plus serials on New Year's Eve. The CDM pack was projected as a new year's gift idea with MrinalKulkarni of Sonpari and SmritiIrani (Tulsi) of KyunkiSaasBhiKabhiBahuThi being shown gifting CDM packs on the occasion. The brand notched a 10-25 second exposure per serial across all the Star Plus series'. KODAK moment on JeenaIsi Ka NaamHai –Passive placement MTV Roadies is the only program on the channel that shows the sponsor Hero Honda's bikes throughout the show.
EXAMPLES OF INDIAN FILM PLACEMENTS STROHS BEER APPEARANCE IN THE FILM DILWALE DULHANIA LE JAYENGE American beer company Stroh's is said to have paid Rs 15 lakh to the producers of DilwaleDulhania Le Jayenge for a 15-second scene in which Shah Rukh Khan mentions the brand name while downing a canned Stroh's. BRANDS LIKE ICICI, FORD IKON, ARCHIES CARD, TIDE AND TATA TEA APPEARED IN THE FILM BAGHBAN- Ravi Chopra, the director of Baghban, admitted that the total benefit to the producers from associating with the brands is in the range of Rs 3-4 crore. ZINGARO APPEARANCE IN JISM - Alcobev spent Rs 15 lakh on the in-film branding exercise of Zingaro Beer in Jism.
Continued… PASS PASS APPEARANCE IN THE FILM ‘YAADEIN’: Director SubhashGhai earned Rs 3.5 crore out of product placements in Yaadein. Other products featured included Hero cycles and Coca-Cola. D’ DAMAS APPEARANCE IN THE FILM ‘ANKAHEE’ – In the movie EshaDeol is shown modeling for the brand. For this placement the company paid the production house 50 lakhs. (source Bhatt production house ) COKE’s APPEARANCE IN THE FILM ‘AAP MUGHE ACHE LAG’NE LAGE’ – In this film there was a placement of Coke for which the production house received 30 lakhs. This amount was decided upon because HritikRoshan is already an ambassador for Coke and also Coke agreed to do promotions for the movie. BARISTA IN THE FILM ‘AITBAAR’ – Barista was shown very clearly in the movie but no payment was made for the same because the movie was financed by the Tata’s who own Barista.
Continued… TATA SUMO APPEARANCE IN THE FILM ‘ROAD’: A special promo for Tata Safari was also created and scripted by Ram GopalVarma Productions. Tata Sumo is featured in a big way in the film. COKE’S APPEARANCE IN THE FILM TAAL: Director SubhashGhai earned Rs 1 crore which is 20% of the production budget out of the product placement in Taal. SWIFT APPEARANCE IN THE FILM BUNTY AUR BABLI: One of the promotions of Swift was to be launched in the movie BuntyaurBabli. Just three months after it launched Swift, MarutiUdyog Limited has already sold over 8,000 units of the car.
TV PLACEMENT AS COMPARED TO MOVIE PLACEMENT Movies as against TV placements offer a greater scope for value additions. The product that is placed in films is high on reachability. First the product gets exposure in theatres, then through DVDs (home video) and at a later date it may gain a wider access when it is aired on satellite television. There is no point in doing a one-off placement, as all it gets is flitting attention. Television offers a relatively more 'controllable' medium than films.
Cont…. Placing brands in a certain television program allows the advertiser to know who he is targeting whereas in films the brand reaches relevant and non relevant target audiences and the returns are difficult to allocate. Apart from providing a fine focused audience to the advertiser, television also provides a cheaper option to the client. Since the deals are by and large a two-way negotiation between the channel and the advertiser, if brand positioning in one program does not work out, the client can be accommodated by the channel in another program.
Effectiveness of product placement Q ratio: “Q” ratio is a global measure for quality of product placements. Measured as a % of a 30 sec ad i.e. – 1. Decimal fraction of a 30 sec ad or 2. Number of commercials to which it is equivalent. Creates placement standards & parameters for broadcasters, agencies & advertisers. Hedges the risk in product placement deals.