1

PRODUCT PLACEMENT IN MOVIES

PROJECT BY

Chitra K (08AA04)

Kirthiga T (08AA18)

Kirthiga Sekar (08AA19)

Nivetha Grace R (08AA28)

Sneha N Doss (08AA37)

PSG INSTITUTE OF MANAGEMENT

COIMBATORE

2

1. INTRODUCTION

1.1. WHAT IS PRODUCT PLACEMENT?

A product placement is the inclusion of a product, brand name or the name of the firm in

a movie for increasing memorability of the brand and instant recognition at the point of

purchase. It is an advertising technique in which the companies pay a fee or provide

service in exchange for a prominent display of their product.

Product placement appears in plays, film, television series, music videos, video games

and books. Product placement occurs with the inclusion of a brand's logo in shot, or a

favorable mention or appearance of a product in shot. This is done without disclosure,

and under the premise that it is a natural part of the work. Most major movie releases

today contain product placements. The most common form is movie and television

placements and more recently computer and video games.

1.2. BRIEF HISTORY

The first film to feature product placement was Wings (released in 1927), the first film to

win the Oscar for Best Picture. It contained a plug for Hershey's chocolate. In other early

media, e.g. radio in the 1930s and 1940s and early television in the 1950s, programs were

often underwritten by companies. "Soap operas" are called such because they were

initially underwritten by consumer packaged goods companies such as Procter & Gamble

or Unilever. Sponsorship still exists today with programs being sponsored by major

vendors such as Hallmark. Incorporation of products into the actual plot of a TV show is

generally called "brand integration".

The earliest example of product placement in a computer or video game occurs in the

1984 game Action Biker for KP's Skips crisps. Video games, such as Crazy Taxi feature

real retail stores as game destinations. However, sometimes the economics are reversed

3

and video game makers pay for the rights to use real sports teams and players. Today,

product placement in online-video is also becoming common. Online agencies are

specializing in connecting online-video producers, which are usually individuals, with

brands and advertisers.

1.3. EXAMPLES

Certain products are featured more than others. Commonly seen are automobiles,

consumer electronics and computers, and tobacco products.

Automobiles

The most common products to be promoted in this way are automobiles.. For example,

The X-Files used Fords, as do leading characters on 24. The James Bond films pioneered

such placement. The 1974 film The Man with the Golden Gun featured extensive use of

AMC cars, even in scenes in Thailand, where AMC cars weren't sold. The last two Bond

films had used vehicles from Ford or its subsidiaries. In Bad Boys 2 and The Matrix

Reloaded, almost every car was made by General Motors, the only exception being the

Ferrari in Bad Boys 2.

Nissan cars also feature prominently in the 'Heroes' TV show, the logos often zoomed

in/out of or whole cars shown for a few seconds at the beginning of a new scene. In The

Matrix Reloaded, a key chase scene is conducted between a brand new Cadillac CTS and

a Cadillac Escalade EXT. The chase scene also features a Ducati motorcycle in the

getaway. Three of the James Bond films starring Pierce Brosnan featured a BMW car

before fan outcry pressured the producers to return to using the traditional Aston Martin,

which was owned by Ford Motor Company at the time and thus brought in more product

placement. In addition, a Shelby GT500 is used extensively at the beginning of I Am

Legend. In the 2008 movie Taken Liam Neeson drives AUDI cars, first an A3 and a S8.

4

Consumer electronics and computers

The 2006 film Casino Royale features many Sony product placements throughout, all

characters use VAIO laptops, Sony Ericsson cell phones and GPSs, BRAVIA televisions,

and Bond uses a Cyber-shot to take photos.

Apple's products frequently appear in films and on television. In video games, products

that most often appear are placements for processors or graphics cards. For example in

EA's Battlefield 2142, ads for Intel Core 2 processors appear on map billboards.

In the video game F.E.A.R all of the laptops have a dell screensaver on them.

Tobacco

The James Bond film License to Kill featured use of the Lark brand of cigarette and the

producers accepted payment for that product placement. The studio's executives

apparently believed that the placement triggered the American warning notice

requirement for cigarette advertisements and thus the movie carried the Surgeon

General's Warning at the end credits of the film.

Quantification methods track brand integrations, with both basic quantitative and more

demonstrative qualitative systems used to determine the cost and effective media value of

a placement. Rating systems measure the type of placement and on-screen exposure is

gauged by audience recall rates. Products might be featured but hardly identifiable,

clearly identifiable, long or recurrent in exposure, associated with a main character,

verbally mentioned and/or they may play a key role in the storyline. Media values are

also weighed over time, depending on a specific product's degree of presence in the

market.

5

2. LITERATURE REVIEW

2.1. As a form of covert marketing communication tool, the practice of placing

branded products within films for commercial purposes has gained popularity

among marketers and brand managers. At the same time, the popularity of this

practice increases concerns and discussions of public well-being from various

groups such as public policy makers, consumer interest groups, regulatory

agencies, and consumers. By employing a survey with a sample of 3,340 non-

students, the current study provides a more accurate picture of attitudes towards

product placement in films. Overall findings suggest that consumers are overall

positively disposed toward product placement, do not see a need for regulation,

and have a tendency towards neutrality regarding several of the practice’s facets.

-Association for Education in Journalism and Mass Communication

2.2 "One of the most important benefits a corporation can gain is by having a

star imply endorsement of their product by using it in a film. Most specifically,

big name stars almost never appear in U.S. television advertisements but if they

are seen using a company's product in a "reality like" situation in a film,

Turcotte notes that it has been shown that the audience is more likely to believe

that this action might imply the star's endorsement of the product than if the star

were to do a paid advertisement."

- Benefits to corporate America

6

3. METHODOLOGY 3.1 RESEARCH DESIGN 3.1.1 Purpose of the study The research purpose indicates that this study is primarily descriptive. A descriptive

study is undertaken in order to ascertain and be able to describe the characteristics of the

variables of interest in a situation. The research draws some conclusions from the data

collected which makes it descriptive.

3.1.2 Extent of researcher interference The extent of researcher interference is minimal in this study. Respondents were made

aware of the topic “product placement”. Oral examples like the brand Nokia which is

displayed on Tom Cruise's phone in the movie Minority Report, the use of Cadillac cars

in the movie Matrix Reloaded and the brand Motorola used by Kamal Hasan in the movie

Vettaiyadu Villayadu. The events were studied as they normally occur.

3.1.3 Data collection method

Questionnaire

Since the respondents were English speakers, the statements were set only in English in a

simplified style. The questionnaire was primarily adopted and based on the works by

students from Sheffield Hallam University, UK and some questions were framed by the

researchers through brainstorming. A five point Likert-type scale was used, with

‘strongly agree’ at point one; ‘agree’ at point two; ‘neither agree nor disagree’ at point

three; ‘disagree’ at point four; and ‘strongly disagree’ at point five. Another five point

scale with points like “always, mostly, sometimes, rarely and never” was used. Certain

direct questions were given only two options “yes” or “no”

7

3.1.4 Time horizon Data were collected from students for a period of two days. The data has been collected

just once and will not be collected again from them for this research. This makes the

study purely cross sectional.

3.1.5 Data analysis This data was entered into SPSS, and the required computations had been completed in

SPSS itself. Descriptive statistics like mean, median and standard deviation. Also

graphical representations like pie charts, bar graphs and histograms were used. Cross

tabulation was executed.

3.1.6 Study setting The research was carried out in a natural environment with minimal interference of the

researcher which shows that it is a field study in a noncontrived setting.

3.2 SAMPLING TECHNIQUE

Our population consists of graduates from PSGIM and PSG College of Technology .For

the purpose of this research, the sampling method used was a non-probability convenient

sampling approach. The elements in the population do not have any probabilities attached

to their being chosen as the sample subjects. The findings from the study of the sample

alone cannot be generalized to the population.

8

4. SAMPLE

Our sample consists of 50 students, 25 male and 25 female students from PSGIM and

PSG College of Technology. The motivation for this selection was that respondents were

thought to be an appropriate sample since young adults (18 to 24 years of age) are avid

film attendees. Respondents also possess the disposable income to attend films. Product

placement in films is therefore an effective way to target young, affluent and well-

educated consumers.

The data thus collected is primary in nature. It was entered into SPSS, and the required

computations were completed in SPSS itself. But prior to this a secondary research was

done through available online resources.

9

5. ANALYSIS

5.1 DESCRIPTIVE STATISTICS

Item N Maximum Minimum Mean Standard

deviation

Noticing product

placement in

movies

50 4(rarely) 1(always) 2.58(sometimes) 0.906

Knowing product

placement as a

method of

advertising

50 2(mostly) 1(always) 1.16(always) 0.370

Disruption in the

flow of movie

50 5(never) 1(always) 3.8(rarely) 1.043

Ability to recall

brands

50 5(never) 1(always) 3.34(sometimes) 0.939

Preference for

real brands

50 5(never) 1(always) 2.40(mostly) 1.278

Influence against

will

50 4(strongly

disagree)

1(strongly

agree)

2.64(disagree) 0.722

Attention

grabbing

products

50 6(others) 1(electronic

goods)

2.50(FMCG) 1.165

Curiosity in

products

50 5(never) 1(always) 3.12(sometimes) 0.982

Discussion with

others

50 5(never) 1(always) 3(sometimes) 1.161

Probability of 50 5(never) 1(always) 3.72(sometimes) 1.179

10

purchase

Products

purchased

50 5(others) 1(electronic

goods)

3.18(FMCG) 1.57

After product

trial

50 3(revert to

original

preference)

1(continue

using it)

1.88(switch brands

after sometime)

0.689

Sympathy

towards the

brand

50 5(never) 2(mostly) 3.28(sometimes) 0.991

Item – questions surveyed

N – number of respondents

Maximum – mostly opted choice

Minimum – least opted choice

Mean – average choice

Standard deviation – measure of dispersion for interval

5.2 GRAPHICAL STATISTICS

5.2.1

11

Maximum respondents are of the age 21.

12

5.2.2

Do you notice products placed in a movie?

Frequen

cy Percent Valid

Percent Cumulative Percent

Always 5 10.0 10.0 10.0 Mostly 20 40.0 40.0 50.0 Sometimes 16 32.0 32.0 82.0

Rarely 9 18.0 18.0 100.0

Valid

Total 50 100.0 100.0

Most of the respondents notice the products placed in the movie.

13

Most of the respondents feel that product placement rarely hinders the flow of the movie.

14

5.2.3

Almost all respondents are aware of product placement as a method of advertising.

15

5.2.4

16

5.2.5

.

17

18

19

20

The respondents have ranked talk shows to be the most influencing medium. The next

influential media are movies and music videos. Soaps and theatre plays are the least

influential.

21

5.2.6

It is inferred that 83.3% females always discuss products after watching movies which is

very high compared to 16.7% males who rarely discuss the products.

22

5.2.7

23

24

The respondents give primary importance to the product and then the brand followed by the celebrity.

25

5.2.8

It is seen that females mostly have purchased FMCG products whereas men have

purchased electronic goods.

26

6. FINDINGS AND SUGGESTIONS

6.1 FINDINGS

• All most all the respondents notice the products placed in the movie.

• Most of the respondents feel that product placement rarely hinders the flow of the

movie.

• Almost all respondents are aware of product placement as a method of

advertising.

• The respondents have ranked talk shows to be the most influencing medium. The

next influential media are movies and music videos. Soaps and theatre plays are

the least influential.

• It is inferred that 83.3% females always discuss products after watching movies

which is very high compared to 16.7% males who rarely discuss the products.

• The respondents give primary importance to the product and then the brand

followed by the celebrity.

• It is seen that females mostly have purchased FMCG products whereas men have

purchased electronic goods.

6.2 SUGGESTIONS

This research has only investigated a small part of this area of research. Investigating a

large sample through a quantitative research could shed a better light on some of the

points revealed through this research. With regards to strategic action that needs to be

taken in the future, the following recommendations are put forward:

• Further in-depth studies can be conducted into the nature of consumers’

recognition of product placements.

27

• It can be analyzed in future whether the cost associated with product placements

should be determined prior to the implementation thereof to establish the

feasibility with regard to the cost per viewer and the reach of the target market

• Like other promotion tools, managers must actively assess product placement

opportunities to ensure the product’s appearance works in synergy with its image

and competitive positioning in the market.

• In future it should also be attempted to recreate an authentic cinema experience in

order to see whether consumers remember product placements to the same extent

when they are in a normal cinema-viewing environment.

• Research in future should examine audience attitudes towards, or interest, in

brands and branded goods to gain a more thorough understanding of an

individual’s tendency to be influenced by branded images.

• In order to avoid the bias introduced by individual recognition, future research

should investigate utilizing a research design where association between

placement exposure and reported behavior is framed more definitely (for example

by the time period and event).

• The placements on Mobile Communication Media (MCM), with its physical

small size and clear images, reception of undistorted visuals, marketers and

advertisers should ensure prominently placed brand names.

Finally, product placement’s growing importance as a component of integrated marketing

communication requires that marketers strive to better understand its potential. This

knowledge is expected to help marketers better define their strategies for marketing and

brand integration.

28

7. CONCLUSION

The research results indicate that consumers are aware about product placement being a

method of advertising. They are influenced by the placements and have bought products

that had been placed in movies and other media. Thus product placement seems to have

gained acceptance as a form of advertisement and can be continued to be used. Also,

most do not feel that product placements are irritating and interrupting the flow of the

movie. People are generally expressing a positive attitude toward product placement and

are influenced by it.

A conclusion drawn from the research was that products placed prominently in films

were better recognized than those placements placed subtly within the context of the film.

Another aspect closely considered in this research was the effect product placements have

on the realism of the film.

The research shows that product placements in films are a viable alternative to traditional

forms of advertising. The reason for this is that product placement (especially prominent

product placements) is readily recognized by viewers. Product placements therefore offer

numerous benefits to the marketer in terms of reach and diminishing cost per viewer.

Product placement is an immense field of research within which much is yet to be

discovered.

29

REFERENCES Blonde, Kristin and Irene Roozen (2007), “An Explorative Study of Testing the

Effectiveness of Product Placement compared to 30-second TV-Commercials” for the 6th

International Marketing Trends Congress, Paris 26-27 January 2007

Cooper DR, Schindler PS (2006). Business Research Methods. 9th Edition. New York,

NY: McGraw-Hill.

D’Astous A & Chartier F,(2000). “A study of factor affecting consumer relations and

memory of product placement in movies”, Journal of current issues and research in

advertising, 22(2):31-40.

EBSCOHOST(2006).Available:http://0-ejournals.ebs-co.com.innopac.

up.ac.za/Home.asp.

Gough PJ (2003). Agencies Explore Product Placement, Find Consumers Receptive.

[Online] Available from: www.media-post.com- /dtls_dsp_news.cfm? NewsId=229914/

Gupta PB, Balasubramanian SK, Klassen ML (2000). “Viewers’ Evaluations of Product

Placement in Movies: Public Policy Issues and Managerial Implications”. Journal of

current issues research in advertising 22(2):41-52.

Karrh, J.A., K.B. Mckee en C. J. Pardun (2003), “Practitioners’ evolving views on

product placement effectiveness”, Journal of Advertising Research, 43, nr. 2, June, 138-

149

McMillan JH, Schumacher S (2001). Research in Education. 5th Ed. New York:

Longman.

30

Monkey Junction (2004). What is Product Placement? [Online] Available from:

http://monkeyjct.com/what.html [Accessed: 2004-04-09].

Morton C, Friedman M (2002). ““I Saw It In The Movies”: Exploring the Link Between

Product Placement Beliefs and Reported Usage Behavior”. Journal of current issues

research in advertising 24(2):33-39.

SABINET (2006) [Online]. Available: http://0-search.sabinet.co.za.innopac. up.ac.za/.

SCIENCE DIRECT (2006) [Online]. Available: http://0-www.sciencedirect.

com.innopac.up.ac.za

Uma Sekaran (2006). Research methods for business 4 th Ed. Wiley edition.

Van der Waldt, DLR (2005). “The role of product placement in feature films and

broadcast television programmes: an IMC perspective.” Communicare. 24 (2): 1-16.

December.

Xroads. 2004. The Industry of Product Placement. [Online] Available from:

http://www.xroads.virginia.edu~UG03/hamlin ppdeals.html