Product placement in films

Product Placement in Films A contemporary study on product placement in Hollywood, Bollywood & Dhallywood movies Product placement is now-a-days considered to be one of the most effective marketing tools to reach the target customers. This study is done to get an indepth idea about product placement, its use in different movie industries, its pattern, present and future business trend Prepared by: Md. Mainul Islam Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 1 Product Placement in Films Industry LETTER OF SUBMISSION To, Mr. Shanta Banik Assistant Professo, Department of Department of Marketing Studies & International Marketing, University of Chittagong. Prayer to accept my term paper report. Dear Sir, With due respect and obedience, I am submitting my term paper report on “ Product Placement in Film Industry” attached to the letter for your kind consideration. A methodological research was conducted to prepare the report to achieve the study objectives. This report has been prepared on the basis of the findings out of which includes collection of secondary data, study on the relevant books and publications. I have studied on relevant issues and tried to highlight the overall scenario of product placement in film industry and its future. I have also tried to reflect all the findings of my study in this report in order to make it a rich one. I would like to express my gratitude for your kind guidance in completion of the report assigned on me. I sincerely hope that this report will meet your expectation and will serve its purpose. Sincerely yours, Md. Mainul Islam ID No.: 07304104 Session: 2006-07 Department of Marketing Studies & International Marketing University of Chittagong Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 2 Product Placement in Films Industry ACKNOWLEDGEMENT First of all gratitude goes to Almighty God who blessed me to accomplish the term paper report, which is an essential part of B. B. A. Program. It is the utmost respect and gratitude that I wish to thank the following individuals for their underlying support and encouragement during the creation of this report. I extend my heartiest thanks to my instructor, mentor and guide Mr. Shanto Banik, Assistant Lecturer, Department of Marketing Studies & International Marketing, University of Chittagong for imparting his relentless endeavor and excellence for completing the report. His guidance was absolutely helpful and impactful to the completion of the Term-paper. I would also like to thank my group members who heartily co-operated me and rendered help in every instance when I faced problems in completing the paper. Lastly, I cannot but express my gratitude to the teachers of my department who helped me different time in researching different or collecting data on various topics. And I am very pleased with my friends and family for their love and support and for understanding the situation of completing this kind of critical report on contemporary marketing issue. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 3 Product Placement in Films Industry Abstract The concept of product placement is not new. It has been widely practiced since the 1980s. The area is; however, experiencing a significant growth due to the difficulties to reach the target customers with traditional advertising tools. The on-going discussions and debate concerning product placement, traditional theories and academic articles provided the foundation for this study. This study is an analysis of product placement in Hollywood, Bollywood and Dhallywood movies, customer perceptions about product placement and the future of it. Statistic showed that there were an importantly higher number of product placements in Hollywood movies that were integrated into the storylines, verbally referred to by characters in the movies than product placements in Bollywood movies. But the amount and number of product placement in Dhallywood movies is very much trivial. There are many similarities between Hollywood and Bollywood movies but Dhallywood. Transpiration is mostly used product category followed by Hollywood and Bollywood movies. Brands from both the industries were primarily presented in a positive context and were mainly associated with the primary movie characters. Almost all the products were featured in such a way that their brand names or logos were shown as well their other functional or aesthetic qualities. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 4 Product Placement in Films Industry Table of Content Page 5 7 8 9 12 14 15 17 19 20 Topic Introduction Objectives of the Study Methodology of the study Literature Review History of Product Placement Different Types of Product Placement Short List of Product Placement in Hollywood Film (1880-2012) Findings and Analysis Conclusion References Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 5 Product Placement in Films Industry Introduction Product placement has been an integral part of all forms commercialization of mass media that have been in existence since the nineteenth century. There is no better way to reach the audience directly than to place a product in the hands of stars, who the audience views with dreamy eyes and who possess an incredible power to influence consumer behavior. The concept of product placement in the movies has been an engaging and exciting research topic for scholars and researchers for many years. Especially for Hollywood filmmakers and U. S. marketers, the practice of product placement is an established concept. Although product placement is in its peak position in Hollywood movies, it is still a developing practice in the mainstream Hindi and other countries film industry. This study analyzed the practice of product placement in the films produced in different countries concentrating highly on Bollywood and Hollywood. We see from the study that the concept of placing a product in a film for payment is relatively new to Bollywood; it is certainly not an unheard of practice. Using celebrities’ image and acceptance to establish a brand or fashion can be traced back to Hindi movies from the 1950s. Bollywood along with its movies has always reflected Indian culture. The mainstream Hindi cinema is usually the result of own Indian presentation of colorful costumes and sets, exotic locations, song and dance sequences. During the past 96 years, numerous technicians, directors, actors, and actresses have come to the Hindi cinema industry from all corners of India. They have brought with them their regional culture and languages, which have blended perfectly to create the Bollywood cinema that exists today. Bollywood movies not only reflect the daily life of ordinary Indians, but, as in America, have also become a part of Indian life. As a result, the Indian audience, instead of thinking of a movie as a make-believe phenomenon, can relate to it and become emotionally involved with the actors working in it. They look to Bollywood to tell them how to dress fashionably, how to talk impressively, and how to behave in social settings (Dwyer & Patel, 2002). For a long time, screen stars have served as idols for Indian audiences. As a result, Bollywood has become a huge marketplace for promoting goods and services (Kripalani, 2006). Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 6 Product Placement in Films Industry There were a few Hindi films before the 1990s that featured identifiable brands in some of the scenes. However, those brand placements were on a very limited scale and generally went unnoticed by the audience. The first highly noticed product placement was Coca-Cola in the box office hit movie Taal (The Rhythm) in 1999. Coca-Cola appears more than once in Taal as a prominent drink accompanying the stars in various emotional situations such as love, friendship, and nostalgia (Kripalani, 2006). Since then, product placement has become common in Hindi films. Although advertisements and have been a part of Hollywood movies for a very long time, public consciousness about the practice of product placement came with the movie E. T., the Extra-Terrestrial (1982). Elliott, a character in the film, lays down Reese’s Pieces to invite the alien into his home (Kripalani, 2006; Newell, Salmon, & Chang, 2006). Since then, the audience has become used to these numerous brand insertions into films. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 7 Product Placement in Films Industry Objectives of the Study This study is basically done aiming at the following objectives: ï‚¡ Analyzing different modes and medias of product placement in movies ï‚¡ Presence of product placement in Hollywood, Bollywood and Dhallywood movies ï‚¡ Customer perception about product placement in movies ï‚¡ On-going business trend of product placement ï‚¡ Future of product place in Dhallywood movies Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 8 Product Placement in Films Industry Methodology of the study The purpose of this study was to determine the pattern and acceptability of product placement in films. The method used to answer the research questions was content analysis. The study includes studying of different articles along with using primary and secondary data from different sources. We basically rely on secondary data to do the study. We used many sources for collecting secondary data. Among them we have gone through many articles written by international writers on product placement and its various perspectives. We also have taken help from many research papers. We have visited many websites to gather contemporary knowledge about product placement, its usage in film, budget allocation for it. We also visited some Hollywood, Bollywood and Dhalllywood movies to get a basic idea about presence of product placement, its attraction to customers and customer’s perception about it. We also tried to figure the recentness of product placement, in which scenery and how perfectly product placement is used. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 9 Product Placement in Films Industry Literature Review It is essential to discuss the meaning of the term product placement to analyze the practice of product placement thoroughly. It is also very important to understand how advertisers and film producers have used this practice to their advantage in both the different film industries. This literature review starts with the definition and meaning of product placement. Later it provides a brief overview of the history of the practice of product placement in different movies in different times that we summarized from different articles earlier. Definition of Product Placement: ï‚· A general definition of product placement for movies is: ‘ product placement is a paid product message aimed at influencing movie or television audiences via the planned and unobtrusive entry of a branded product into a movie or television programme (Balasubramanian, 1994). ï‚· Product placement in popular mass media provides exposure to potential target consumers and shows brands being used or consumed in their natural settings (Stephen and Coote, 2005). ï‚· Product placement as a strategic marketing tactic, the process through which an advertiser pays to place a product in a movie (Maynard and Scala: 2006). Now we can go through the summary of some articles that were conducted to analyze the pointed objectives in this study. The article by Margaret Craig-Lees clearly defined the product placement from a sophistic view that differentiated product placement from other closely related terms. The discussion showed that product placement is related to advertainment, advergaming, branded entertainment and covert marketing, but slightly different from all of those terms. The expenditure on PPL has highly increased due to its newness and acceptability as an entertainment base communication method. The key facts in this article are to identify whether “ the advertisement is the entertainment or the entertainment is the advertisement”. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 10 Product Placement in Films Industry In his thesis paper Irene Roozen discussed on the product placement compared to 30 seconds TV commercials. The research results indicated that prominent product placements are significantly more effective than subtle product placements. Also the 30-second TV commercials are significant more effective than subtle product placements. However, the 30-second TV commercials are not always more effective than the prominent product placements. By taking the zapping behaviour of the consumers into account the prominent product placements are in all cases significantly more effective than the 30 second TV commercials. According to a recent article by M. Teresa Todd on product placement in film, marketer now-a-days are turning to product placement due to declining rating of TVC and emerging techniques. The trend of product placement puts great impacts on age limit 15-34 and men are highly affected by this policy. In the movie Minority Report, product placement has been very effective as it did not interfere the story line while placing a product. Here Nokia highlighted its future product development by using tagline “ Connect to the Future”. This placement highly attracted the consumers to think of future Nokia device. Another article by Gianluigi Guido on “ Acceptance of Product Placement in Italy” focused on viewers perception on ethics and thereby acceptance product placement in different movies. Here we see that the viewers’ attitude changes for different factors that also impacts on attitude towards the brand recall. The effect of product placement, attitude towards the placement and placement insertions help to analyze the attributes of brand recall. The consumers have great consideration on ethical charged products. Again, in the article “ The Product Placement Efficiency” Etienne Bressoud highlighted the result of relationship between a spectator and a movie in constraint to before, during and after viewing the movie. The increased numbers of product placement have created the opportunity to get a great number of SADR from the viewers. Brand placement can be formed by two ways in a movie- either be paid by the advertiser or providing logistics support as a barter deal. Kaylene Williams in the research paper “ Product Placement Effectiveness: revisited and renewed” illustrated the product placement as renewed tools of advertising. Product placement has become an increasingly popular way of reaching potential customers who are able to zap past commercials and non-users as well. Product placement is the process of advertise product in a movie or program without having any break. The audience can inform about the product as a part of story line while viewing the movie. The result of the article shows that product placement can achieve higher audience exposure, increases the brand Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 11 Product Placement in Films Industry awareness among the viewers and brings more recall than TV Commercials. As a result product placement is now highly appreciated in film industries. This paper focuses on the product placement in film in different countries. But the tradition of product placement in film is not highly and regularly practiced in other countries except USA and Indian film industries. Bangladesh is yet to introduce this feature in film as the standard of movie is not up to mark here. For the past three decades, product placement has become an important part of the marketing strategies of companies. Marketers find it useful, especially now, because of the flood of media advertisements, to use product placement to help break through advertising clutter (Olson, 2004). With every film featuring several products in it and, with some companies making product placement their central marketing strategy, it may seem that the next step in product placement will be even more product placement. This study shows some little impacts of product placement in branding of a product and having customers’ mind set. However, more comprehensive and analytical research needs to be conducted to understand the impact of product placement from consumers’ perspective. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 12 Product Placement in Films Industry History of Product Placement Product placement has been around for a while and has appeared in books in some cases. The radio and newspaper were also involved with product placement in the earlier years. When times changed and evolved so came the development of film, and as well as the takeoff of the new brand of product placement. Product placement started in early silent films, and short 2 minute skits even before it became what we see in movies today. These short clips would feature brands in the background or close ups that allowed you to read the brand name. The first product placement was used in a silent film starring Roscoe Fatty Arbuckle in 1919. The 1900’s is when product placement really boomed with companies being able to better implant their product in the movies and television shows. When big movie titles would drop it was a perfect opportunity for companies to expose their product to the public. Some early movies such as Wings which advertises Hersey chocolate in one scene, and in another early movie Horse feathers that features Life Savours in a small clip of the film. These were the start of the type of product placement in today’s society, and uses similar techniques that companies and film makers use now. The most familiar example of product placement and how it has developed is the film E. T when they feature Reese’s pieces. Reese’s saw a drastic increase in the purchase of their product because of this movie, and other companies saw this success as well. This event caused more companies to try for the same success as Reese’s, and film makers were more inclined to accept more product placement offers. Many different companies such as McDonald began to adapt the new product placement techniques, and soon product placement could be found in almost every modern day movie. The way that films incorporated the products in movies ranged from the product being featured directly in the film to maybe just being referenced verbally in a positive way. Product placement still continues to involve now along with the creation of the internet. Product placement in the media today are using the internet and sites such as YouTube to advertise to a wider audience. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 13 Product Placement in Films Industry Now a days, and I’m sure many can agree, there are not a place you can go in our society that have not been taken over by advertisements. There is a video on YouTube that shows a brief history on product placement to acquire a better understanding on how it developed over the years ” Brief History of Product Placement. ” The history is basically written on the basis of a Youtube video edited by Oliber Noble. Here is the Youtube link – http://www. youtube. com/watch? v= wACBAu9coUU/ Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 14 Product Placement in Films Industry Different Types of Product Placement Product placement exists in different mode. These include visual, audio, and a combination of the two (audio-visual). Visual Product Placement: It is the method of including a visual representation of a brand on film. This includes strategically positioning a brand in the background of a scene, displaying a billboard or some other form of visual advertisement in a scene, and any other visual representation of a brand-name product “ without any relevant message or sounds on the audio track which draw attention to the product”. An example of this is Reese Witherspoon’s character in Legally Blonde (2001) using an Apple Mac laptop computer in a “ PC-laden” classroom. Audio Placement: Another mode of product placement is audio placement. This includes any verbal mention of a particular brand, including its inclusion in the screenplay or on an audio track. In this form, the brand is not shown on screen. An example of this is in the movie Wall Street (1987), in which Martin Sheen’s character says to a server, “ Get this kid a Molson Light”. Visual and Audio Product Placement: It is a combination of the two aforementioned types. Gupta and Lord define audio-visual placement as the visual appearance of a brand with a verbal mention of the brand name or a “ brand-relevant message” (such as a slogan) as a form of support. A recent example of this is in the film Cast Away (2000). In it, Tom Hanks’s character befriends Wilson brand volleyball. Aside from displaying the ball on screen, Hanks’s character appropriately calls the ball Wilson. In the latter example, “ Wilson” holds what seems to be a supporting role in Cast Away. Subtle Placement: While prominent placement is used to classify brands that are blatantly displayed on screen, those brands that are often seen in the background and fail to capture the audience’s full attention are known as subtle placements or “ creative placements”. These placements include brands that are used in less-than-obtrusive means, including advertisements (i. e. billboards, sides of buses, etc.) that appear in a film’s scenery. Such forms of placement blend in with the scene’s landscape and may be easily overlooked by members of the audience. Some argue, however, that this form of brand inclusion benefits a film by adding realism to the text. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 15 Product Placement in Films Industry Short List of Product Placement in Hollywood Film (1880-2012) Film: Superman II (1980) Product: Marlboro, Jvc, Coca Cola… (etc.) Film: E. T. the Extra-Terrestrial (1982) Product: Reese’s Pieces Film: I, Robot (2004) Product: Audi, Converse All Star Film: Back to the Future Part II (1989) Product: Nike Film: You’ve Got Mail (1998) Product: AOL, StarBucks Film: Click (2006) Product: Bed Bath & Beyond Film: Fight Club (1999) Product: BMW Film: The Island (2005) Product: Cadillac, Msn, Nokia, Puma, X-Box 360 (etc.) Film: Transformers: Revenge of the Fallen (2009) Product: Cisco, General Motors, LG, Mountain Dew, Southwest Airlines (etc.) Film: Cast Away (2000) Product: FedEx, Wilson Film: I Am Legend (2007) Product: Apple, Ford Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 16 Product Placement in Films Industry Film: Zoolander (2001) Product: Apple Film: Yes Man (2008) Product: RedBull Film: The Color of Money (1986) Product: Cadillac Film: Radio Days (1987) Product; Pepsi Film: Transformers (2007) Product; Apple, Chevrolet, Cisco, General Motors, HP, Nokia, Porche (etc.) Film: Days of Summer (2009) Product: IKEA Film: Bowfinger (1999) Product: FedEx Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 17 Product Placement in Films Industry Findings and Analysis Celebrity product placement, now-a-days, is getting more popularity over time. Celebrity product placement is different from celebrity endorsement. Celebrity endorsement means general people are seeing an advertisement in which the celebrity is compensated. In case of celebrity product placement, they are provided with free products with the expectation that they will use the products so that customers feel interest to use that certain product or brand. Product placement has also got virtual form. Now companies are showing more interest in virtual product placement like placing ad in video games. There are many free video games for iPhone. At the time of playing games, the target customers see the advertisement. With increasing popularity, product placement also raises questions about its ethics. How much attention does the consumer pay to the identification of paid product placement if companies were forced to comply as a form of legal regulation? A recently conducted study by Yankelovich states that a city dweller sees over 5000 marketing messages per day (Story, 2007). Do all messages provide true or accurate information to customers? Are customers attracted to all advertisements? Can they understand all messages? These questions suggest the marketing people to be more cautious, accurate, true and tactful about their advertisement and product placement. The research has many findings about product placement in the UK market. UK respondents displayed favorable attitude toward product placement, and especially toward Explicit, nonintegrated product placement. Most respondents are much conscious about ethically charged products especially weapons, drugs, smoking, and so on. Another important finding is that, recalling a brand name does not depend on the popularity of a program in which the product placement is made but on the direct or indirect attachment of the program to the viewers. The realism of product placement is a subject of controversy. However, most respondents of the survey believe that product placement is much better than direct interval for advertisement. Even though this research has covered many areas of product placement, there are still many areas to explore for future researcher on product placement. Now, there are many Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 18 Product Placement in Films Industry new ways for product placement like computer and video games, website, music videos which might be taken into account. Finally, qualitative and quantitative studies have a role to play in the development of new knowledge in this burgeoning area of marketing communication. In the UK, office of communication (Ofcom) specified three principles about product placement. They are — broadcasters must maintain full control over brand editing content, editorial and advertising must be separated, and product placement is prohibited. These principles clarify the stand of UK government about product placement which is clearly negative. The ethical perceptions of consumers about product placement are of two types- general ethical concerns about practice and specific concerns about particular product categories. Most people are basically concerned about general ethical issues. The study makes analysis on both PP and conventional marketing ethics. It also shows a research on utilitarian, Deontology, and virtue ethics which show a positive relationship among PP and them. From utilitarian perspective, the researchers find that successful PP results in high sales volume. And virtue ethics result in cultural resonance. Comparatively, the use of product placement in Dhallywood movies is very much little. Only a few movies produced by some young producers seem to have a little of product placement. But there are many drama in our country in which the use product placement is mentionable. Among them, Bhalobashar Golpo is one those which is sponsored by Airtel. But the traditional commercial films in Bangladesh does not use a little bit of the product placement idea. Even though, the use of product placement in Bangladesh is very much trivial, the increasing use raises a hope of positive something about it in the near future. Prepared by: Md. Mainul Islam & Md. Nur Hossain Both are the students of the Department of Marketing Studies & International Marketing, University of Chittagong 19 Product Placement in Films Industry Conclusion The use of product placement in both Hollywood and Bollywood is very much old but the concept is still unused or a bit used in Dhallywood. In today’s world, most marketers are rushing to product placement in films because it is bringing a very good return for their business. Even though product placement is thought to be unethical for its misuse in some perspectives, most young movie viewers in the USA and Australia welcome the product placement. Many viewers of these countries also believe that product placement is a part of a movie. They prefer product placement to traditional advertising because the former one makes no interruption in watching. Even though, the concept of product placement is still under the cover in Bangladesh, international movies are reforming our daily activities and movie pattern also. So, it’s believed that the concept of product placement will get popularity within next- years. This study has many limitations. The most important limitation is it’s totally done based on secondary data. As the primary data could not be collected from local market, so many real things cannot be introduced in this study. New researcher can focus on these issues to bring more in-depth information about product placement in Dhallywood movies. 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