INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD

Term-5 Project Proposal

Effectiveness of Product Placement in Indian Cinema
Name of the project course guides: Prof. Kandaswamy Bharathan Prof Piyush Kumar Sinha

Name of the Students: Abhilash S Dube Akshay Suresh S G Shrinivas Sagili Shan Mohan

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TWO YEAR POST-GRADUATE PROGRAMME IN MANAGEMENT REGISTRATION FORM FOR PROJECT COURSE SLOT IX & X ACADEMIC YEAR 2012-2013

Abhilash S
Name of the Student(s)

S G Shrinivas Sagili Shan Mohan

Dube Akshay Suresh

Title of the Project

Effectiveness of Product Placement in Indian Cinema

Nos. of Credits Evaluation Graded For each student: 1.00 CP- (Credits) Type of the Project (Tick the approp. Box) CIS (Credits) IP (Credits) IP (Non Credit) * Hrs of Project Area to which the Project belongs Name of the Project Guides __ IP (Credits) i.e. Project course (Credits)

80 classes (100 hours) Marketing Prof Kandaswamy Bharathan Prof Piyush Kumar Sinha

I am interested in studying the above mentioned project course during slot IX & X. The Area approved project proposal(s) is/are posted electronically to Faculty and Student Notice Boards on: The hard copy of the area approved project proposal in the appropriate format is enclosed.

Signature of the student(s)

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Title of the Project Course

Effectiveness of Product Placement in Indian Cinema: To study and analyse the effectiveness of product placement in Indian Cinema (Regional and Bollywood) on various parameters. As a result, we expect to find if buying behaviours is affected through product placement and conclude if this is a viable alternative of advertising. Area to which the project course belongs: Marketing (MKT) Term in which the project course is to be credited: Term 5 (PGP-2) Weightage of the project course: 1 credit Name of the project course guides: Prof. Kandaswamy Bharathan Prof Piyush Kumar Sinha

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Evaluation Criteria

Component 1. Review of Literature 2. Collection of Primary and Secondary Data 3. Analysis and Inference 4. Final Report

Weightage 15 % 20 % 25 % 40 %

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Table of Contents
Title of the Project Course .........................................................................................................ii Evaluation Criteria ................................................................................................................... iii 1. Introduction ............................................................................................................................ 2 2. Aim and objective .................................................................................................................. 2 3. Proposed Study ...................................................................................................................... 3 4. Methodology .......................................................................................................................... 5 5. Research Matrix ..................................................................................................................... 6 6. Deliverables ........................................................................................................................... 7 7. Brief Profiles .......................................................................................................................... 8 8. References .............................................................................................................................. 9

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1. Introduction
Indian Cinema, popularly known as Bollywood, is a vibrant and one of the most active movie industries across the world. With 1255 releases in over 16 languages, Indian Cinema reaches almost the entire population of the country of about 1.2 billion people. The market size of Indias filmed entertainment industry was estimated at Rs 97 billion in 2010 and is projected to grow at a CAGR of 9.2 per cent from 2010 to 2014 to reach Rs 125 billion by 2013. (Filmed entertainment segment in India, Ernst and Young) Cinema as a medium has been a preferred choice for advertisers ever since its advent through advertising in theatres screening movies, advertising outside theatres etc. This is due to the sheer volume of eye-balls that can be reached through a movie and the popularity of Indian film starts. Since the early 2000s, product placement has fast emerged as an alternative to other modes of advertising. Product placement or embedded marketing is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, music videos, the story line of television shows, or news programs. It is an advertising technique where the brands pay a fee or provide symbiotic advertising for the medium; for a prominent display of their product in the medium. The objective of such brand communication is to expose the audience to a brand, whereby the effect can be maximized in terms of increased awareness & higher recall.

2. Aim and objective

The objective of the project is to understand the following: a) To analyse if people have noticed previous instances of brand placement in Movies and the impact for the brands/movies b) To analyse if buying behaviour is affected due to product placement c) To analyse if this is a viable alternate mode of advertising.

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3. Proposed Study
As part of the study, study of secondary data available on Product placement in Indian Cinema would be undertaken. In-depth interviews with Film Producers, Brand Managers and Advertising Agencies will also be carried out to gain an understanding of the needs and requirements of the stakeholders in the process the producer, the audience and the brand. Using primary research in form of questionnaires and in-depth interviews, we would analyse the following: 1. Effect of popularity of actor/director on the success of placement 2. Impact of hero/heroine promoting the product as against a backdrop advertisement or a camera pan-shot 3. Co-relation between box office success of the movie and brand visibility gained. 4. Impact of product placements in Multi-starrer vs Single hero movies 5. Analysis of different types of placements: a. Prominent placement vs. Subtle placement b. Plain visuals vs. Reiteration with dialogue c. Effect of number of repeat appearances of product or time of focus d. Placement in a Song vs. Placement in Normal Talkie portions 6. Impact of the number of products being placed in the same movie/shot/song 7. Impact on the consumer buying behaviour based on the type of product being promoted: Low involvement products like deodorants, cold drinks or costly products like cars 8. Impact of product placement based on the type of movie Mass Masala vs. Art and Classy Movies or movies targeted at the urban youth audience An analysis will also be conducted to estimate the brand equity gain for the movie and the brand by associating with each other. A study will be conducted from perspective of the brand and the movie to analyse: a) Willingness to place products in movies. b) Price for placement c) Expected returns from the product placement
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Secondary research will be carried out to study the impact of brand placement in three pioneering movies. i. Hollywood: POM Presents The greatest movie ever sold Hollywood

Figure 1: POM presents The Greatest Movie Ever Sold which was a pioneer in Hollywood for product placements

ii.

Bollywood: Bodyguard

Figure 2: Placement of Audi in Bodyguard

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iii.

Regional Cinema: Moonu (3)

Figure 3: Placement of Aircel, Supermax and Lawman in 3 - Kolaveri Song

4. Methodology

Step 1: Studying the historical instances of product placements in Hollywood and Indian Cinema

Step 2: To analyse the successes and failures in the same (by analysing a set of movies) in terms of visibility and brand reach, return on investment and impact on buying behaviour through secondary research

Step 3:To analyse the impact of recent instances of product placements in Indian Cinema through primary research - surveys of the target audience and in-depth interviews with Brand Managers, Advertising Agencies and Movie Producers

Step 4: Applying the best practices from various instances and enlisting the plausible issues as obtained from the study,to answer the deliverable questions

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5. Research Matrix
Managerial problem Decision problem Information Required Sources

Do people notice product placement in Indian Cinema? To analyse the effectiveness of Product Placement in Indian Cinema and conclude if this is a viable alternative mode of advertising Does consumer buying behaviour get affected by product placement in movies? Is subtle product placement or prominent placement the right way to go about it? What are the other factors such as hero/heroine, director, nature of movie, nature of placement etc that affect the success and failure of product placement. Is there a particular kind of product (high involvement/low involvement) that is more prone to success in product placement?

Consumer buying behaviour for products that are traditionally placed in movies Consumer acceptability of product placement Critical success factors for a product placement in a movie Market potential for product placement as an alternative mode of advertisement Previous instances of Product Placements in Indian Cinema and their success rate

Secondary Research about product placement in Hollywood (POM presents the Greatest Movie Ever Sold) Consulting reports on product placement in Movies or Television Programs. Data collection through questionnaires to understand the consumers buying processes Primary Research through questionnaires, indepth interviews of the target audience, brand managers, advertising agencies and movie producers Focus Group Discussions to understand consumer perception of Product Placement in Indian Cinema

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6. Deliverables
a) The level of impact for the brands & the movies in previous instances of product placement in Indian Cinema b) The extent of influence on buying behaviour due to product placement in Indian Cinema c) To conclude if this is a viable alternate mode of advertising.

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7. Brief Profiles
S G Shrinivas A civil engineer from NIT-Bhopal, Shrinivas is currently doing a project to suggest an optimal pricing strategy for Evam Entertainment, a popular theatre group in Chennai. He was a columnist on regional cinema for various websites like Behindwoods.com etc. Dube Akshay Suresh An Electronics and Communications Engineer from NIT Nagpur; Akshay has worked on indoor positioning systems using ultra-sound sensors. He was the editor of the college cultural fest magazine. Abhilash S An Electronics and Communications Engineer from BMS College of Engineering, Bangalore; Abhilash has worked for 9 months at Tata Consultancy Services providing support services to clients in United States and United Kingdom. Sagili Shan Mohan An Electrical and Electronics Engineer from BITS, Pilani specialising in Robotic and Communication Systems; Shan Mohan interned at Mercedes Benz Research and Development Centre for 6 months.

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8. References
1. Box Office India http://www.boxofficeindia.co.in/show-me-the-money/ 2. Filmed entertainment segment in India A report by Ernst & Young 3. IBEF Report on Entertainment in India http://www.ibef.org/download/Entertainment_270111.pdf 4. Indian Cinema, Wikipedia http://en.wikipedia.org/wiki/Cinema_of_India 5. Product Placement, Wikipedia http://en.wikipedia.org/wiki/Product_placement 6. Indiantelevision.com's interview with P9 Integrated CEO Navin Shah: http://www.indiantelevision.com/interviews/y2k6/executive/Navin_Shah.htm 7. Product Placements- Global Scan http://www.mediae2e.com/downloads/Product%20Placements%20Global%20Scan.pdf

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