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A STUDY ON HOW TO PROVIDE A COMPETITIVE EDGE TO INVESTORS THROUGH MARKETING & BRAND POSITIONING IN THE INDUSTRY OF ENTERTAINMENT
Submitted to: Name of the Guide (Department) Submitted by: Name of the Candidate Enrollment No. Session Years
NAME OF THE INSTITUTE & UNIVERSITY
The present work is an effort to throw some light on “A Study on how to Provide a Competitive Edge to Investors Through Marketing & Brand Positioning In The Industry Of Entertainment”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledged the encouragement and guidance received by my organizational guide xxxxxx (Professor) and other staff. I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.
Name of the Candidate Enrollment No. Session Years
Many of life’s failures are
did not realize how
close they were to Success”
Marketing is the most dynamic and challenging function of modern business. In the ultimate analysis it is marketing, which determines a firm’s success and ability to prosper in a tough competitive environment. With the integration of the global media economy, rapid pace of
competition, discriminating customer markets and massive changes in distribution, business enterprise in India have started realizing the significance of entertainment industry. Corporate success is today synonymous with Product Placement. With the liberalization of the economy privatization and entry of MNC’s, the Indian business firms have become conscious about their brand placement. The focus is on the complex and dynamic nature of marketing with emphasis on creative problem solving for brands. Many business firms, their top executives and marketing managers gave their valuable time and materials for preparing my thesis.
TABLE OF CONTENTS
CHAPTER- 1 SYNOPSIS ENTERTAINMENT INDUSTRY 1) NTRODUCTION: i) RESEARCH MODEL ii) TELEVISION SHOWS: 2) BRAND LOYALTY VERSUS PERCEIVED VALUE LOYALTY: i) Jassi Jaissi Koi Nahin… 3) MOVIE MANIA i) "Film Industry" ii) 'Hollywood' iii) An Overview: 4) MARKET HIGHLIGHTS & BEST PROSPECTS i) Market Profile ii) Statistical Data in USD Millions iii) Best Sales Prospect iv) B. COMPETITIVE ANALYSIS v) U.S. Market Position: vi) C. END-USER ANALYSIS: vii) D. MARKET ACCESS viii)Import Climate
5) Distribution/Business practices i) BRAND WARFARE ii) Venture capital: iii) Overseas experience: iv) Main Study: 6) FINDINGS OF THE CONCLUSIVE RESEARCH i) Koi Mil Gava ii) Baghban iii) Hum Turn iv) Average Recall 7) Percentage of Respondents remembering atleast one Brand Name i) STATISTICAL ANALYSIS ii) CALCULATIONS: 8) CONCLUSIONS OF THE RESEARCH 9) ANNEXURES’ 10)QUESTIONNAIRE
Every generation has its own buzzword or in fact, sometimes a couple of them. The 21st century is no such exemption that is ubiquitously filled with the buzzword of ‘entertainment’ in every context. This particular term has given a different sight or an angle to the industry. Every event, function, market, product or any business proposition is somewhere or the other related or getting close to the industry of entertainment.
Media and entertainment industry is arguably going through a fast growth phase; it is a golden opportunity for the various brands to latch on to the chance to take the charge of positioning their brand in the right way. Understanding the mindset and motivations of this emerging section “The New Age Indian Consumer” is the key to success. The amateur film market has seen an encouraging growth of about 10% in the recent times.
Definition: Creating and implementing advertising and promotional efforts designed to make a film stand out in a competitive market environment, film marketing typically uses the same methods. Movie marketing could take months of planning and organizing and its success can make or break a film. Movie marketing can be costly and usually considered in the whole cost of the movie.
Topic Of the Study:
Market Potential of entertainment industry for various consumer products.
Objective of Study:
The primary objective of this thesis is to exhibit the market potential for the investors through extensive marketing and brand positioning in the entertainment industry. It could also be referred as publicity and various image-building actions.
Other objects are as follows:
To analyze and examine all aspects of film marketing.
To do an intensive research about the entertainment spending
habits of the new age Indian consumer with special reference to cinema viewing.
Also to identify countries providing the incentives for the production.
This study would give some crucial guidelines to corporate houses and the film fraternity that would help them in business decisions. How can the film fraternity use these findings to market their films more effectively? How can the corporate get maximum visibilities in the mass media?
I would try and answer these questions to add value to anyone who reads the thesis. Here I list down few possible groups that can gain help out of this report:
• • •
Current players in the entertainment industry Potential entrants in this industry Global brands looking towards identification in the Indian market.
I believe that no one source of information would suffice to support the findings and recommendations. Thus, a combination of primary and secondary sources would serve the purpose. At some stages of research and analysis, the justification of sources might face the secrecy code through the company, in such a case the data would be supported by the summary of the depth interview or a tentative questionnaire report.
A. Primary Research:
The following sources have been identified to provide primary information regarding the existing business dynamics.
Discussion Guidelines/ Questionnaire’s Depth Interviews Industry Experts Industry specific consultants
B. Secondary Research:
This is required before I can proceed and conduct the market research. There are various sources of secondary data available, viz. Magazines Newspapers The Internet Industry reports of private firms White Papers & Fact sheets.
Every generation has its own buzzword or in fact, sometimes a couple of them. The 21st century is no such exemption that is ubiquitously filled with the buzzword of ‘entertainment’ in every context. Every event, function, market, product or any business proposition is somewhere or the other related or getting close to the industry of entertainment. This particular term (entertainment) has given a different sight or an angle to the industry but leaves one question completely unanswered i.e. Are there any guts to think beyond advertising? The latest trend in advertising is to make it, well, less advertorial. The tendency is to move away from in-your-face ads, where the product is the star, to mini movies or quasi-documentary vignettes that feature “real life scenarios” with the product(s) hovering in the background. Some would argue it’s a sort of “art imitating life”
scenario- - where ads imitating the practice of product placement.
Have you ever watched a T.V. show or movie and felt like you were watching a really long commercial? If so, then you have been the
victim of bad product placement. There is a very thin line between being visible and overly visible or you can say overly exposed. When done correctly product placement can add a sense of realism to a movie or a television show.
Product Placement is the process that integrates that integrates an advertiser’s product into T.V shows and movies for clear on screen visibility. It is the part of rapidly expanding entertainment industry reaching millions of people through movies, television and videos.
Brands and popular Indian cinema have aligned quiet famously, and the trend of in-film advertising is gaining ground as producers and advertisers see long-term benefits. Now, advertising agencies also see film advertising as a big revenue-earner and a way to build big brands.
Media and entertainment industry is arguably going through a fast growth phase; it is a golden opportunity for the various brands to latch on to the chance to take the charge of positioning their brand in the right way. Understanding the mindset and motivations of this emerging section “The New Age Indian Consumer” is the key to success. The amateur film market has seen an encouraging growth
of about 10% in the recent times and is looking far more promising and lucrative, than expected. It just depends on the new age marketers to position their brands competently and nattily. The new generation is no such an exception, but its different and very much alert about the happenings around.
Positioning of the brand would exorbitantly depend upon the purchasing power and entertainment spending habits of the
consumer as well.
The particular research model focuses on the two main aspects of entertainment industry, i.e. Television Soaps and Movies. The chart below would give a better understanding: -
Game Shows Ad
Bollyw ood Hollyw ood
Commerc ials Celebrity
In recent times the winds of
change seen in Indian market place times brought a in recent have clear
shift in consumer behaviour. misconceptions loyalty of that the product have The of basic everlasting consumers and service have
finally ended. However the Indian market has completely
transformed and consumers are now loyal to ‘perceived value’ and not necessarily to brand.
BRAND LOYALTY PERCEIVED LOYALTY:
‘perceived value’ than to ‘brands’. If a product without fail delivers ‘perceived value’ over a phase of years, it may arrive at brand loyalty. But this cannot happen before Perceived Value Loyalty. Perceived Value Loyalty is,
therefore, more important index in today’s context. There are six reasons why
consumers make decisions in the branded ‘perceived sector value’ based and not on just
price. In fact ‘perceived value’ wars work in brands for the
reason that they are fought for the mind and heart of consumers. Price wars do not work in the branded division because they are fought mainly in the short-term trade and pocket level.
been a through thing in the
west but, as with quite a few other innovations in the media, Indian television is just about waking up to the thought of
plugging brands in small screen programs in a big way. In the age of clutter and meager recall, can a brand name meet the expense to hang around in the sidelines for its twenty seconds of fame? Advertising did try to hop out of the well - there are instances to sustain that - but is it showing? If yes, where? If not, why? It appears that, either the concept is a non-starter or, possibly, it is happening but away from the
media defiant stares. Then again, there are layers underneath the first coat. All the same, the core rules of the game are pretty
simple - like they always are. In television, as in films, brand
placement is a function of a very fundamental question: What's the big idea?
“Show me honey!”
‘It is always about the money and big money is all about the big idea. A big idea can command up to 100 per cent premium over regular ad rates applicable to
commercial breaks.’ Now, that it is fairly clear that the perceived value loyalty has scored over the brand loyalty, let us look into the following case studies in support of the above statement.
Brand positioning in the game shows
Koi Nahin! Indian Idol
The case studies discussed further has become topics the at educational maximum ‘B
schools’, mainly because of the products placed in the
programmes, shows and the ads aired during breaks are
anticipated of having maximum brand recall among the
KHULJA SIM SIM
Talking about KBC and talk not talk about Mr. Subhash Chandra would be injustice. Subhash
Chandra was an undisputed king of T.V. till late nineties. He had a deal with Star Network that
prohibited channel to
programs. Star was free from
created is still
unfolding. A laggard behind the market leader and hugely
successful Sony, Star had become a channel that housewives used to watch surfing only when they of were sheer
boredom. Then came and along Ekta Amitabh Kapoor of
Balaji Telefilms catapulted Star into unheard of success in
cluttered market. From out of the blue, Peter Mukherjea and
Sammer Nair of Star unleashed a double whammy on prime time viewers that had been dominated by Zee and Sony. At 9PM it was Mr. Bachchan in a new avatar that simply wowed India with a phrase like ‘Lock kar diya jaye’ in KBC. This was followed by what is now
when ‘Kyunki saas bhi kabhi bahu thi’ and ‘Kahani ghar ghar ki’ hooked viewers like never before. Marketers also soon realized the importance of the shows being aired on different channels and were able to place their brands not during the commercial breaks, but very much inside the show where they could achieve 80% of the targeted customers. Well, all we can say that it was just the start of another
beginning, a start of war among the channels, a beginning of a confrontation among the brands. On conducting the conclusive
research with the different age group consumers the brand recall for the ICICI bank in KBC topped the list among the other game
shows on television. Principally, there are two factors in play that decide how remunerative the
placement is - the involvement of the brand in the TV show and the ratings that the program
commands. A brand that is actively talked about or visually positioned by the actors commands better rat Big ideas seen on television in the recent and not so recent past have been the positioning of ICICI bank in ‘KBC’. There were cheques to be signed by one bank or the other and ICICI, perhaps, found the right opportunity at the right time.
That's a big idea and as bright as it gets. Besides ICICI, the brands endorsed by the host of the game show, our very own Mr. Amitabh Bachchan are bombarded during
the commercial break. Being high on TRP ratings of other brands celebrity
endorsements, pitch and shell out high price to get the utmost
Brand positioning may look like a tempting there's pie in to television the pie but than
meets the eye.
In quick span of time, Star Plus has gained immense popularity and viewer ship among the
competitors. An in-program placement definitely has
audiences begin surfing. But the concept has to be very carefully built-in, in order to maintain the dominance over the competitors. If not done with in the norms, it could just be an added liability, e.g. ‘Khulja Sim Sim’, for an
placement but bigger clients like automobile disinclined products preferred to as to maker position rewards. stick to were their They the
commercial breaks. The not-soregular advertising clients like Hi Design were the ones that came up with gift hampers and such.
Jassi Jaissi Koi Nahin…!
The Indian has television seen an ever rise
since satellite television first came to India.
On consulting Nina Jaipuri -
Assistant VP, Marketing SET India Private Limited
Today, though cable access is only about 50 per cent (according to various industry educated guess), this category of people is defined as the “consuming class” in India. By 2002, the share of cable & satellite television was 86.9 per cent of total television advertising as against a too little 31.3 per cent in 1994. The count has
reached over 90 percent till date,
crediting the expansions of media in recent past.
television is the energy for growth in the television business with a 62.8 per cent share of total
viewership and an even higher 74.6 per cent share of total
Sony Entertainment Television is a key player in this space and has been a constant and strong
number two behind Star Plus. The other contenders are Zee TV,
Sahara TV and SAB TV. Star Plus had established a clear dominance over Sony (Star Entertainment Plus average
range of Television Ratings (TVRs) approx 13.2 TVRs, as compared to Sony Entertainment Television’s 1.3 TVRs). Besides, Sony
Entertainment Television was now perceived as a “me-too” to Star Plus.
Understanding Women: Sony Entertainment Television
specially made research among women, the chief target audience for the channel. The the research woman”
conducted in seven cities across India helped provided insights, define which its tactic,
which is, “To provide intelligent and innovative entertainment to its viewers”.
These women were looking for something routine dissimilar from the that
dominated programming. The
therefore was to generate and sell a different past viewing the alternative, family
The Marketing Challenge: Traditionally, television advertising has always been about huge, bold poster advertising depicting
glossy lead actors shouting down at you from billboards. In this case, the protagonist “Jassi” was less than ordinary to look at yet was truly beautiful if you met her. The challenge therefore was how do we get viewers to sample the show?
Marketing Strategy: As in the old adage, we decided that we will not give the viewer an opportunity to judge a book by it’s cover — therefore never show Jassi in any pre- and post-launch promotional material and activity until we get a critical mass to sample the show. Also keeping in mind the Indian culture, a literal
translation of “ugly” was unlikely to cut ice with the viewers. Hence Betty was transformed into Jassi and her extraordinary qualities were played up. Like Jassi, her marketing was also unique.
The primary goal was to fuel inquisitiveness about Jassi and
build endearment for her as a personality, by giving the viewers different facets of her qualities. The desired response was, “I’ve heard so much about her, now I can’t wait to meet her.” In addition Jassi merchandise was now being made available - the ring tone download being the first in a series of items to be
launched. Sony Entertainment Television
share of the 9.30 pm slot is up from 8.2 per cent prior to the
December, within three months of launch, and still growing. Star Plus is down from 81.8 per cent share to 62.6 per cent share.
Along Came The Spider! The advertiser response has been so overwhelming driving slot rates up by 50 per cent. The show today has a full house of 12 sponsors as against the single one when it launched. Every brand wanted to get associated with show and the artist. But, different brands were selected matching the script and situation in order to avoid the clutter. Currently twenty five percent cost of the show has been earned from the
endorsements. To name few Satya Paul, Maruti Udyog Ltd., Tanishq Jewellery are some of the brands
associated with the show. Leaving the brands, the film fraternity was exorbitantly impressed, that the ultimate king Mr. Yash Raj Films promoted there film Hum-Tum on the episodes of the programme. If people can remember Saif Ali
Khan meeting Jassi in a well fitted role of two episodes of the show. Marketing a film on a show was itself a trend-setting step as the viewership shooted up
tremendously for the particular episodes and the show was one of the most talked about in daily gossips.
Hence it was proved that brands have certainly got an immense scope, whether be it a product, service or as a matter of fact a movie too in an attempt to
today’s cutthroat competition.
Indian idol hits ad revenues of Ekta Kapoor shows:
Backed by sky-scraping TRPs
reality talent hunt show 'Indian Idol,' aired on Sony Entertainment Television succeeded in hitting ad revenues of ‘saas bahu’ soaps aired daily on Star Plus channel of Star TV. The Rs 1,750-crore bazaar for
Hindi daily soaps has stooped by about five percent in the last few months.
Apart from the grand finale, when it was the second most watched show on television after Star Plus' Kyunkii Saas Bhi Kabhi Bahu Thi, the programme has been has
been consistently achieving high TRPs since the first show was telecast.
Delhi, Kolkata, Gujarat, Punjab, Maharashtra, Madhya Pradesh,
Uttar Pradesh and West Bengal. Figures revealed by V.P. Marketing on Sony said, that 53 per cent of the total TV audience in North, West and East India watched the final episode of Indian Idol. The show saw a consistent rise in the ratings and viewership, resulting in raining sponsors for Sony
With the success of Indian Idol, market analyst say daily soaps may be losing their esteem as viewer fatigue has set in. The broad invention categories that are advertised in daily soaps are FMCG, banking, automobiles, food & beverage, telecom and lifestyle. It was said to be the highest viewership time at the time of Indian idol and the bidding for the spot went in crores for the
On the day of the finale of the Indian Idol programme TRPs of other entertainment also took a hit. The channels that lost the maximum entertainment viewers channels were (Star
Plus) movie channels (Star Gold, Zee Cinema) and news channels (Aaj Tak, Star News, Zee News).
Now it remains to be seen if Sony can sustain these TRPs with the second coming of the Indian Idol.
Zee TV has number 2 position in prime time band, with 5 out of 10 programmes. It is at number 1 position in 7.30 p.m. to 9.30 p.m. band and has a very strong
presence in 8.30 p.m. to 9.30 p.m. band. Overall, during 8.00 -9.00 p.m. slot, Zee TV is at number 1 position, followed by Star and Sony at Number 2 and 3 respectively.
The network share of the various channels is as under
2004 Zee Sony
19% 23% 22%
Market share details
Channel Market Share Zee Cinema Zee News Zee Music Star SET
(Source: Sony Television)
62% 33% 11% 24% 21%
Revenue Break Up Advertising Subscription 2003 74% 21% 2004 78% 20%
Others (mainly Education) Total
(Source: Sony Television)
Advertising revenue continues to be main source of income for network, which earned Rs. 722 crore in FY 2004 (Rs. 642 crore in FY 2003). Though competitive environment had impact on viewership of network, advertising revenue demonstrated
positive growth of 24%.
Though the companies has increased advertising rate in prime band slot. But, still it is getting more
advertisements mainly due to higher reach and viewership has constantly increased the sales of the products. The credit cannot be taken away from the marketers for placing their
product or brand at the right time and spot efficiently and consistently.
IN A NUTSHELL:
discussion and analysis that small screen viewership and exposure has not only opened the doors for the marketers to showcase their brands but also given them a fair chance to get noticed and hit the consumers with heavy impact of brand reconciliation time and
again. Placement of brand still remains the top priority in order to have an effect of recall on consumers, in order to match the fierce competitors in the market.
marketers, it was noted that more than selection of a show or a soap
consumers are more perceived by the characters endorsing the
particular brand. Taking character Tulsi (Smriti Irani) of soap Kyunki saas bhi kabhi bahu thi, since the time the actor has endorsed the brand not only it has increased the brand recall, but also has become a household product,
simply because of the positive influence of the character on the viewers of the No. 1 show on star plus.
This indicates the importance of, first the popularity of the show for the purpose of getting the
particular brand noticed, second convincing the consumers about the credibility of the brand by their favourite star on television. This is just one example for
understanding, but as we know
the commercial breaks are loaded with stars, sports icons,
celebrities etc. at times making the whole area and of advertising for the
customers to make an ultimate choice. Hence it makes it all the more important to for place the brand by
analyzing all the prospects of the show.
Taking perspective industry
international the concept Television entirely
differs from the Indian market, from programmes The to star to of
perception of the consumers also varies, and it’s nothing to do with the language. The key role is played by the system of pay
channel that is incorporated in
West. All the viewers have to pay a stipulated fee for watching a particular show on a channel,
whereas there is no such fee or if there is, its just a nominal fare paid to the cable operators. This makes a huge difference on the viewership on both parts of the world.
For instance a show like ‘Friends’ that carried on for years in the west, had no takers, no sponsors or brand promoters in the the
same situation or same kind of show in India the show would have been loaded with brands from the attire of the characters to the each and every accessory or products used in the serial. The basic difference and comes risk, in the
promoters would have faced in West and in India, as the
probability of seeing the show in West is phenomenally to India or low as in a
matter of fact in Asia. Therefore, as the market differs the
automatically gets an alteration.
difference when we take the film industry as the area for promoting the brand or a product, which is discussed in detail in the project.
The film industry is one of the most competitive industries in the world, ruled by public opinion and susceptible to popular whim.
Whether it be Hollywood or be it Bollywood, entertainment remains the fuel for driving any industry. Today both world cinema have come a very long way, and has improved as each day has passed by. Harry Davis opened the first
nickelodeon, a small storefront theater or dance hall converted to view films, in Pittsburgh in June of 1905, showing The great train robbery. Urban, foreign-born, immigrant
audiences loved the cheap form of entertainment and were the
predominant cinemagoers. Onereel shorts, silent films,
melodramas, comedies, or novelty pieces were usually accompanied with piano playing, sing-along
songs, illustrated lectures, other kinds of 'magic lantern' slide
shows, skits, penny arcades, or vaudeville-type acts. Standing-
room only shows lasted between ten minutes and an hour. The demand for more and more films increased the volume of films
being produced and raised profits for their producers.
Knowing the age of the industry, it has certainly come a very long way since 1930. With 21st century initiating innumerable brand new
innovations all round the globe, film fraternity has also moved into the new and hi-tech world of cinema with hi-fi technology.
Talking about anything relating to business, West has always been ahead from Asia or as a matter of fact been a world leader. Movies are also no exception in this case, it has been extremely superior and quick in its growth and expansion. It has always
been a complete entertainment for the audiences and the number has always increased with time. The film production has always been one of the most bloodthirsty industries in the humankind, ruled by community outlook and
vulnerable to popular whim. The idiosyncratic style of American
films repeatedly ranks ahead of European productions, which
often are deficient in the panache of their American counterparts. Despite some critics claiming that American films have
oversimplified plots aimed at the mass indiscriminating audience,
American films have a proven worldwide petition. The European film market is
comparable in size to that of the U.S. domestic market. The
number of films produced in most European climbing countries and an is increase now in
demand benefits the U.S. film industry. For the past ten years, the film industry in France has established itself as the largest, most
successful film market in Europe, with France as the leading film producer (134 films were
produced in 1996, up from 124 in 1995). France is also Europe's largest film-viewer market with a total of 4,419 movie theaters. In 1997, total sales amounted to nearly USD 800 million. French films represented 37.5 percent of all revenues, up 11 percent from the previous year. U.S. films were seen by 70.3 a million steady people, market
share at 52 percent. 51 million people viewed French films.
MARKET HIGHLIGHTS BEST PROSPECTS * Market Profile
Despite across severe Europe
unemployment and recent
economic difficulties, the French movie market continues to grow. In 2000, box-office reaching USD sales 51.5
million as a result of 9.1 million new movie admissions. The
French movie market is at its strongest since 1987. This can be in part accredited to the success of huge American productions
such as "Independence Day," as well as to increasingly profitable French comedies. French market information can easily be
accessed through the state-run Centre Nationale de
Cinematographie which receipts, monitors assures
(CNC)(source), box office
accurate box office revenue, and reports on market trends. As is the case in the United States, the French film industry enjoys financial and infrastructure support from to other other media. In
countries, the French film industry has greatly profited with from its
relationship pay-per-view television.
and In 1995,
television networks (including the pay-TV channel, Canal Plus)
showed well over 1000 feature films. Since the late 80's,
television stations have become an important source of financial support for the French film
industry. In 1995 for example, 9 percent of total sales by Canal Plus went to support the industry, not including other significant
production projects financed by the pay-channel's subsidiary,
Studio Canal Plus. In addition, the four major national television
stations (TF1, France2, France3, and M6) are required by law to invest a minimum of 3 percent of their total sales to in the film a
minimum of 60 percent European films. These stations spend over USD 70 million each year on purchasing the rights to American regulations films. and
attempts to limit the number of foreign films entering the French film and television markets,
interest in satellite-TV is growing and should offset sustaining these high
demand for American films.
Following the lead of the United States, France has seen of huge
considerable megacomplex multi-screen centers with
entertainment more than 1500
seats and often housing cafes, video games, bars and
restaurants, in addition to the traditional movie theater set-up. Since 1993, Gaumont, UGC and Pathe have built approximately 30 megacomplexes here. This panEuropean trend, in part
responsible for a relatively recent partial renaissance is in movie to
continue in the future as these megacomplexes considerable French market. As megacomplexes helped potential in have the
redefine and reinvigorate French
moviegoers' behavior, so has the renovation of older, existing
theaters over the last four years. Many movie theaters in France had become dilapidated, thereby discouraging moviegoers. As a
result of renovation efforts and the construction of mainly
concentrated in urban areas, the French film market has curbed a decline in movie attendance and regained some of its lost strength, particularly context. Paris proper area is in the highestfor in the European
centers such as Lyon, Bordeaux and Marseille show an interest in American films, but follow Paris at a distance.
France grossed USD 616.7 million, according to the Video Publishers Association 80 percent (SEV), of all representing publishers.
Nearly two-thirds of SEV member turnover came from direct video sales, representing more than 90 percent of total turnover.
* Statistical Millions
Avg. Annua 2001 2002* 2003* Growth Rat For following 2 years Import Market Local Production Exports Total Market U.S. Imports 468.9 501 355.6 362 70 407 72 443 6.1 754.5 791 523 373 74 823 452 6.5 4% 4% 4% 4% 4%
Exchange Rate used: 6.0
* Estimates Inflation Rate Assumed: 2.5% Estimated 2001 Import Shares: (in percent) United States: 88.4 U.K. Italy Germany Belgium Others 3.6 3.1 2.4 1.1 1.4 Market
Receptivity code (1-5): 5 Range: 5 (extremely receptive) to 1 (not receptive) The popularity of American films is firmly rooted in French culture. Market demand for U.S. films
promises to remain constant into the next century.
* Best Sales Prospect
American action films, animated films, and adventures continue to
be the three most popular genres among French moviegoers. Large budget American action movies such as "Independence Day" have traditionally been very successful in the French market. The biggest film successes in the U.S. are also moneymakers in France. Having followed, national ratings of U.S. movies, media, usually French through moviegoers the are
often already aware of American films before their release in
France. Co-productions partners can be with an French effective
method for U.S. companies to increase their market share.
Employing this method would be particularly suitable for who do
not have the resources to carry out the necessary marketing
French audience. In addition, coproductions can be used to evade French claims regarding American domination of the European film market. considers The CNC officially to be
French films. It must be noted, however, that co-productions, in any country, are often logistically difficult. The French market for American independent developed. films is meagerly and
marketing efforts of major U.S. film companies for have lower American created budget film
independent producers. In addition to
significant needed to
moviegoers sometimes view U.S. films as being too "action-based" and as "lacking dialogue." Despite these obstacles, independent U.S. films may be able to tap into a relatively unexploited art cinema market, primarily in and around Paris and in other important urban centers in Southern France, such as Marseille and Lyon.
Particularly in Paris, theaters are the beneficiaries of government and municipal subsidies designed to preserve and revive the French film industry, thereby providing a good environment for
independent films. U.S. companies have been able to establish themselves firmly in the French video publishing sector,
valued at approximately USD 700
million. American video publishers are expected to continue to
dominate this market as the next century draws near. U.S. video companies should be particularly aware of high market demand for special-interest videos, which
represent a significant turnover in France. The rental video market, however, has showed only modest gains over the last 8 years and remains underdeveloped. France offers an untapped companies sector. market for U.S.
in the rental video such as
Blockbuster Video and Hollywood Video have been able to penetrate other European markets, but have seen little success in France.
regulations and U.S.
governing store video
companies entering and
French video rental market.
B. COMPETITIVE ANALYSIS
* Domestic Production French movie market flourished with more than 51 million
admissions and proved to be a record year. With the success of films like "Pedale Douce", "Le
Jaguar", "Les Trois Freres" and "Le Bonheur est dans le Pre.” the French movie industry enjoyed a market share of 39.5 percent. This represents a slight increase from previous years, but does not signify a reduction in U.S. market share or dominance. French film production remained at a high level with 134 films on
an investment base of USD 550 million, a slight drop from 1995. French investment stayed
relatively stable, whereas foreign investment percent. produced Of in declined the 78 by 134 percent 19.1 films were
French-initiative films, totally or principally productions. On the other hand, French coproduction films represent a French-financed
marginal 15.5 percent of boxoffice receipts. Co-productions
have continued to increase over the last 15 years, but have not fared as well as single-country financing projects. Co-productions have typically been plagued by prohibitively logistical from high costs and arising
cultural and legal difficulties. * 3rd Country Imports Third country imports constitute a negligible portion of the French film market. British, Italian and German films figure most
predominantly in this market with a 9.1 percent market share,
generating USD 1.3 million from admissions.
U.S. Market Position:
The U.S. film industry plays the most dominant role in the French market. U.S. films represented 54.3 percent of all box-office
admissions. A fiscal and financial
environment conducive to rapid and effective film production, strong an
technological domestic established
production network buttress U.S. market dominance. U.S. films have consistently held about 55 percent of French
market. This trend promises to continue into the next century. On average, Americans watch 4.7 films per capita in a movie theater each year, compared to 2.2 films per capita in France. In addition to heavy demand in terms of boxoffice admissions, the U.S. film industry benefits from well-
developed home video, pay-perview and cable TV markets.
C. END-USER ANALYSIS:
seats) showed a 5 percent gain in admissions reaching 136.24
million. While Paris is home to less than 4 percent (2.2 million) of the French population (58.5 million), the city 20 attracted percent with of 26.2
million admissions. Other urban centers with more than 100,000 inhabitants, university towns and the Southeast of France also
enjoyed high movie attendance rates. Cities with more than
100,000 inhabitants represent 11 percent of France's population. Admissions to French movie
theaters can be divided into three main time periods, but remain relatively through high April. from The October of
October-December generally see the highest admission rates, with an average of 14 million tickets sold per month. (June movie only During the
summer September), drops to
through attendance 8.5 million
admissions. Moviegoers can be divided into two categories: regular and
occasional moviegoers movie
moviegoers. see at
occasional moviegoers generally see no more than one per month. Regular moviegoers represented only 33.6 percent of audience market share, but accounted for 73.1 percent of all movie
admissions in France. Eighty five percent of moviegoers are aged 6-24, representing 26
percent of the French population. But accounting for 40 percent of movie admissions. The 20-24-age group accounts for more than 18 percent of admissions but only 7 percent of the population. The 2550 age group constitutes nearly 40 percent of France's population and also represents 40 percent of attendance. Education plays a significant role in the behavior of the average French moviegoer. In 2002, 80 percent of all moviegoers had some form of higher education and saw an average of 7.5 movies per year, compared to a 4.6
national average. Conversely, only 40 percent of agricultural and blue-collar workers go to the
movies each year in France.
D. MARKET ACCESS
* Import Climate Industry experts predict that
public demand for American films will continue to grow despite
significant French market barriers. The general sentiment within the French government appears set against the massive influx of
foreign films, mainly American. As a defensive measure, the
government has created special funds to finance production of French films. movies and television
The 1989 EU Broadcast Directive requiring a "majority proportion" of TV programming to be of
European origin was incorporated into French legislation in 1992.
programming (60 percent) and French programming (40
percent). These broadcast quotas were less stringent than France's previous quota provisions, which required that 60 percent of all broadcasts be of EU origin and that 50 percent in be originally The 60
produced percent French
applicable throughout the day, as well as during prime times slots. The prime time rules go beyond the requirements Directive of the and EU limit
access of U.S. programs to the French market. Nevertheless, the market remains share high. of U.S. films
players in France emphasize that
the development of the business side of films & videos will do more to revive the industry than any system of quotas.
The top ten distribution
companies in France accounted for nearly 89 percent of with claiming
first place at 19.8 percent. All of the major U.S. film companies have staffed offices in France, often
responsible for negotiating with French movie must theaters. take care The of
production, marketing and actual distribution. Distributors have first
claim to box-office receipts, which can be as high as 39 percent.
* Financing In France, the CNC (Centre
National de la Cinematographie) is responsible for allocation of
government subsidies to the film and television industries, as well as for coordinating grants from the Ministry of Culture. There is generally a two or threeweek lapse between the time
accounts are rendered at each movie theater and payment is made to the distributor. The U.S. Export-Import Bank offers a
credit-plan through the Foreign Credit Insurance Association,
which allows foreign buyers to
delay payment and pay off the original investment.
When translate lash
multiple into film
tie-ins clutter, to the
marketers seek other ways to themselves product. Cross promotions have become a staple in movies, particularly in summer blockbusters, but no one has devised a system to
determine what, if any, return on investment they provide.
Marketers recently have learned what doesn't work, though, so they are rethinking their
strategies when partnering with films.
"When you get it right and match up a film property that has
current cultural significance with a product that has brand equities that relate to that property, as a general matter, you get increased presence increased Cooper, interactive in stores and says see Frank
volume," V.P. and
marketing at PepsiCo Inc. "You can see by the sheer number of films we've associated with that, for us, it works."
When co-branded film promotions are executed well, everyday
products can take on a hip aura. Packaged-goods companies create exciting retail presences that can drive up sales, and other types of companies like car manufacturers are able to track sales increases to their movie tie-ins. Realizing this, advertisers generally are
willing to spend tens of millions of dollars on movie their tie-ins, own
expenditures many times over by riding the media wave created by studios that often are spending upward of $50 million on their own marketing campaigns.
But success is a hit-or-miss affair -some tie-ins well, go while over others
disappear into the ether -- and recently, marketers have devised their own benchmark for success. Marketers minimum say of that while a
partners is needed to turn a film opening into a big event, anything over 10 partners is excessive. Tom Meyer, president marketing of firm
Davie-Brown, says three to five partners on a tent pole film are ideal.
"Over the last five years, the studios have gotten greedy and brought on many partners,"
Meyer notes. "It becomes hard for them to manage and overkill in the marketplace. Studios should be looking at these opportunities as a way to go deeper in their relationship with a brand, rather
than go broader with a whole bunch of brands."
The Coca-Cola Co. recently has scaled back the numbers of its film promotions dollars to ensure are not
getting lost. "It needs to link to the dead center of what our brand positioning is; if it doesn't, we're not going to do it.
A souped-up Wrangler Rubicon also co-starred with Angelina Jolie in 2003's "Lara Croft Tomb
Raider: The Cradle of Life." After the film's release, the automaker saw a 15% increase in sales. It was done because it helps the Jeep brand build pride by being a natural part of popular culture,"
Packaged goods, however, often are difficult to incorporate into story current lines. So, despite over the brand look for
integration, other ways
Vader won't be seen chomping candy onscreen, but M&M's has a tie-in with "Revenge of the Sith," daring consumers to go to the Dark Side with the first-ever darkchocolate M&M's and creating a parallel universe of animated and toy M&M's dressed up as
characters from all six "Star Wars" films. "Our goal is an integrated
consumer experience, and that doesn't necessarily have to come with product placement.
creating promotions that tap into the essence of the movie and its characters, says it though for Coca-Cola integration
whenever possible. The company adds that it has made it clear to the studios that it won't do a movie tie-in if a competitor is featured in the film.
But while brands such as CocaCola and Pepsi are becoming
more demanding and selective in their movie tie-ins, one thing is certain: Film promotions remain a popular and effective marketing tactic, even when an advertiser fails to win a much-coveted role in the movie.
Language barriers: Is only one hurdle in selling foreign films to American audiences
The strategy was simple: Screen the picture at three major film festivals, target younger
audiences with a zest for life as well as older audiences with a nostalgia for it, and buy spots on Latino television. Those were some of the principles Focus Features put into play after acquiring domestic rights to "The Motorcycle Diaries" at last year's Sundance Film Festival. They
worked: "Diaries" hauled in $16.8 million at the domestic box-office,
language takes in U.S. history.
Releasing foreign-language films is a risky business, especially in North America where they usually account for only about 1% of theatrical business. Marketing
such pictures requires precise and particular skills, but Focus
marketing president David Brooks understands that a crossover
market for such pictures is likely growing. "There are certain special movies that will cross over into a wider audience," he says.
audience, you have to use your old-fashioned traditional mediums such as (major newspapers) and
then you have to look at (local) cable.
"Targeted" usually means limited to the biggest cities, where a run of 50 commercials on a carrier like Time Warner Cable can cost $30,000-$50,000.
The Indian film industry is turning more optimistic. It is looking at touching new horizons and scale new heights. Most players are aiming at widening their
operations and straddling across the entire value chain. For veteran filmmaker Yash
Chopra, it could mean making more films in a year. For Subhash Ghai's Mukta Arts, it could mean setting up an integrated studio complex-cum-training upgrading its studio center, Adeus,
implementing its portal and web casting plans and setting up
overseas distribution networks.
All these grandiose plans require money and muscle. Where does the moolah come from? Had it been the old studio system,
finance would not have been a problem. would Internal have generation With and
exhibition under one umbrella, the system allowed ploughing back of money generated by the captive distribution units into production and related activities. However, in the new film industry economy that emerged after the collapse of the studio system, such funding failed to work to perfection. happened. So, the inevitable who
understood the dynamics of the industry, sprang up in scores. And they charged a premium for that. Says noted film maker Mahesh
Bhat: "The Sindhi and Marwari financiers had a field day because they had the ability to understand and negotiate the chaos of the industry, which the guys wearing ties in the bank could not." Therein lies an irony. Such
financing has worked quite well despite the usurious interest rates of the lenders. Says R Ravimohan, managing director of the Mumbaibased Credit Rating of and India
(Crisil): "People have paid such a price and have still survived
because the speculative nature of the business needed such people who could put up capital upfront." All this is changing now. The Indian film industry is biting the bait of corporatisation and
itself. Says Ravimohan of Crisil: "Globalisation is one major trend the Indian film industry has to contend with today. It is both a necessity and an opportunity." To be sure, has to the Indian film by itself.
There is greater recognition of the need to corporatise to be able to streamline operations and be an entity everybody would like to do business with, including the
financial institutions and capital markets. Growing opportunities, including overseas audience,
needs to be tapped. All these imperatives are placing fresh
financial demands on Indian film companies.
financial has to
come from formal sources. The informal channels of finance,
including the underworld, which the industry has relied on ever since the collapse of the old studio system, would continue to be far too expensive. Technically, entertainment film companies and have
now quite a few financing options available to them: equity (selling stock to financial and nondebt,
venture capital funds and foreign funds, among others. Companies such as Mukta Arts have already gone public with initial public offering (IPO). "The fact that these companies are going public proves that there is a
certain section of the investing public which is interested in
putting their money into these ventures." But this interest might wane.
A movie-making company is a riskier proposition from a debt perspective. There is a mismatch here: a certain part of the
borrowed money has to be paid back on a definite date, but
neither the quantum not the time of the cash flow is at certain. various
levels, at the distributor's, at the exhibitor's and everywhere.
which is going from one project to another, does not lend itself to the traditional ways of trend analysis or track record. There is an
element of uncertainty associated with the success of a particular project. There is no scientific
method of evaluating either the quantum nor the timing of cash flows." Yes, the project may be a great success in terms of overall cash flow it generates, but even the promoter is in no position to tell up-front what will his monthly cash flow be.
principles such as what exposures to have and what debt-equity
ratios to have do not apply to film companies. You need to develop principles companies. of financing film
At the same time, studios outside India have been able to raise debt because they are corporations and have steady cash flow streams from projects, properties and
several other ventures. So, the solution for the stand-alone
Indian film companies with standalone projects (read films) lies in diversifying their activities across the value chain, having a base cash flow and tangible assets, and so on. If one goes by its offer document, Mukta Arts is trying to do exactly that. By raising equity funds from public, it is trying to boost its net worth and thus offer a margin of safety to institutional lenders. Corporates such as Zee Telefilms are better equipped to raise debt if they are to get into film
production. "They have the equity, the net worth, tangible assets, advertisement support, the base cash flow and the necessary width of activities to cover the risk. However, what needs to be looked at is this: whether such steady cash flows are adequate to cover debt servicing. There might be some doubts over project-related debt, which is not dependent on the overall cash flows.
How are films financed
elsewhere in the world? Most houses large are US entertainment of huge offer
everything from movies to theme parks. Over there, traditional
entertainment increasingly expansion
are in new
initiatives such as Internet-related ventures and even in acquisitions. Most of these activities are part of publicly owned companies. These companies have sold their stocks to raise funds for expansion and reducing their debt levels. Going public has also allowed them to cash in on their entrepreneurial efforts and diversify their assets. Direct financing apart, the Indian film industry needs a national film finance corporation whose equity is jointly controlled by financial institutions. Such a corporation can go public and get itself listed on the nation's bourses. All said and done, new financing options are bound to emerge for
the Indian film industry. But, first of all corporatise and
professionalise the industry. That is a small but sure step.
Till about the 1970’s most people believed that the product
placement was unethical, but the realities of advertising and movie making has spurred Hollywood, and now Bollywood into product placement. Bollywood isn’t far behind.
Industry sources have it that Mr. Subhash Ghai made 20 percent of the ‘Taal’ production budget just from Coca-Cola.
Rumours also have that he shot two sets of scenes, one with Pepsi and the other with Coke, and waved the carrot before both the Cola giants.
But product placement in Indian movies is much older than
Mr.Ghai. In An Evening in Paris, Sharmila Tagore was seen sipping delicately from a 200 ml bottle of Coke, struggling to make sure the logo was visible. You might
remember the Mafatlal hoarding in the middle of a song in Maine Pyar Kiya.
If you remember Awwal Number, the Dev Anand flick starring Aamir Khan- every time our hero hit a four, the ball bounced off a poster saying Garware! Coincidence?
sequence with the then Ms Dixit was shot inside the famous
Benzer stores of Bombay. A lot of people unrelated to the story line are shown carrying Benzer bags. And a friend of mine swears
having seen a song sequence in some movie, with the heroine dancing round giant columns of guess what - Emami Naturally Fair Fairness Cream! In recent times, Mc Donalds India has been quite active on the PP front. In Love Ke Liye Kuch Bhi Karega, Mr. Hero strategically
holds a ball with the Mac ‘M’ on it, and just when you are about to overlook the Mac connection, you see all those girls in outfits that look suspiciously like Mac
uniforms. Quite subtle. It wasn't so under-stated in Kaho Na Pyar
Hrithik Roshan flexes biceps etc and asks irritably, “McDonald's ka burger laaon kya?” Another direct reference is in LKLKBK. declares Our finicky heroine
NOTHING but Domino's Pizza and Diet Coke. Eh? Products - brands actually - make a movie more realistic. It is that much more easier to bond with the stranded actors when Hrithik Roshan mentions McDonald’s
burger. Because that is probably what we’d say ourselves! Like Dil Chahta Hai, movies are getting as close to real life as possible. It would be unfair if we do not expose the other darker - greener - reasons. Producers need cold cash. If they are going to get it by
hoardings, they would. You can’t blame the poor
producers! Money eternally being in short supply, this is a great way to finance the film, minus the threatening phone calls
afterwards. And what do they lose? Mr. Hero would have been sipping some cold drink anyway would it hurt if it happened to be coke? At 3.5 crore, quite the contrary! Recently, Naseeruddin Shah
admitted to TOI that he's shelved most of his dream projects due to lack of finance.
industry as it
above-the-board funding is hard
placement is a golden opportunity. Some tie-ups also help in
promoting the movie. The average marketing budget for a Hollywood flick is about $25 million. Most of this is spent in the 3-4 weeks before the release of the movie. Tie-ups mean that the movie is getting that shot in the marketing arm that could probably make or break the movie. The marketers think that it's costefficient. reaping Pay the once, benefits and at keep every
show of the movie, or every time the kids get together and rent a CD, or the oldies celebrate their anniversary with a video, or a college movie club holds all-night movie shows. It also reaches a phenomenal number of people.
audience is about 1.42 billion. Another factor the marketers
bank on is the powerful influence of the medium. Movies have been typically blamed for most sins of society violence, sexual abuse, drugs, smoking - you name it, we have a politician who can link it to the movies. If they are so
powerful that they galvanize an entire generation into the angryyoung-man mode, then they can surely sell a few cans of Stroh's? (Remember the great Khan
talking at length about his plans to start a factory - Strohs - in DDLJ?) By subtly weaving a product into a scene, marketers hope,
audiences will connect their brand with the glamorous stars or story
they're seeing on the screen. It’s a commercial of sorts - without the obvious hard sell of a
commercial. It might not sound very nice - but quite obviously, the aim is to catch the consumer unawares, memory to in sneak her into her of
vulnerability. An in-film placement is a hugely lucrative business and is raking in anything between Rs 5 lakhs and Rs 5 crore for film producers. A film - viewer has a short attention span. The best way to deliver the message is to catch the viewer off-guard when his rational
defence is down. Appealing to viewers’ emotions is better than appealing thought. examines to The the their rational rational gate
benefits and features, and seeks
value for money; the emotional gate is all about and trust, belief. love, Films
operate at the emotional level. Placing a product in a film is catching emotional the level viewer when at he an can
connect with the brand. There can be synergies between brands and films. The successful integration of product placement within the film's storyline has
along history - the first example being the yellow Rajdhoot bike used in Raj Kapoor’s Bobby.
Hollywood also leveraged brands such as BMW (Bond movies),
Jaguar, Ford, Ray Ban (Tom Cruise in Risky Business and Mission Impossible), Starbucks coffee,
AOL and AT &T.
Right now, companies are willing to pay amounts ranging between Rs 50 lakh and Rs 5 crore for placing their brands in films, but it depends on the budget of the film. Big-budget films with big stars can expect more. The size of this advertising is expected to grow nearly 100 per cent in the next two to five years as more and more companies get attracted to this kind of advertising. In the recently placed ad for Castrol engine oil in film Chalte Chalte, the makers of the engine have reported tangibly increased sales of the oil after the film's release. The product seems to have connected on an emotional level with truck fleet drivers and owners. Ray Ban also benefited by its association with film Men in Black.
However it is also true that ads have to be carefully placed in a film and one bad placement can do more damage than 10 good placements. Artistic integrity is crucial for successful brand
placements and the operation has to be woven into the script.
Sometimes, unreasonable clients demand more footage although research has shown that a two-minute clip can effectively deliver a message in a credible manner. The placement should be woven into the fabric of the film and shouldn't unnatural. The factors taken during into the be contrived and
negotiation stage include cast and credits, size of the projects and the producers, brand timing of the and
number of screens during release and post-release phase; and
possibilities of brand associations through contests and promotions. Depending on the content of the film and its storyline, the agency can sketch a profile of viewers who would see the movie. Then the agency approaches all those brands that could appeal to the targeted viewers. This is followed by a 360-degree marketing plan for cross-promotions during the various stages of a film's release. Objections if at all could come up due to conflicts regarding a
certain star’s status as a brand ambassador. For instance Shah Rukh Khan could technically
object to being associated with Coca Cola, as he is Pepsi's brand ambassador. But Kaante was
associated with Thums Up and
Amitabh Bachchan is the brand ambassador of Pepsi but there was no conflict as Thums up was associated with the entire film and not one actor. Does it work? Well, now that's a tough question to answer. Research shows that 98% of the total audience
remembers at least one brand name after the movie. So Brand recall is definitely there. But does it actually boost sales? There were toys a whole featured host in of Toy
Story. One such toy company Slinky, which had folded, was
back in business and sold $27 million after the movie release. Sales of Red Stripe beer increased by 53%, after Tom Cruise was seen slugging it in The Firm.
advance sales alone, purely due to the Golden eye placement.
Reese's Pieces – the Hershey’s candy featured in ET - saw a phenomenal sales growth of 66%.
But the same cannot be said for every product. Primarily because it hasn’t been researched well to date. Unless marketing majors
analyze the sales figures purely attributable to product placement, there's no saying if this works. There’s also, what we are going to term the Pass-Pass trap (Have you seen Yaadein? After seeing that movie - no, product-array is more like it - some have sworn they would never touch Pass-Pass again, even if it were the last
mouth-freshener left in the world, and they were on their dream date) an extreme case of
product placement that actually turns off the consumer. The idea that one would go out and buy a coke just because it is the object de l’amour on screen is quite funny, if not downright
ridiculous. Some experts agree, but they have more meat to their argument than personal opinion. They argue that given the
multitude of products seen in a movie, and the usual tying-upwith-the-storyline, audiences do not register the brands separately. That is, in their opinion, product placement does not push the
consumer from the awareness to the trial stage of the marketing life cycle.
But as with experts, there are others who disagree. They feel that certain age groups are and more of
segments to Like this
puller in the second row during the late night show of Yaadein, who might go out and buy PassPass out of some sense of loyalty (for want of a better word!) to Kareena! Placing captures the essence of a new kind of selfhood. The idea is that the era of Branding is passe. Now is the dawn of Placing.
People live with brands, brands that are a part of their day-to-day life. If they don’t, its up to you, the marketer to place your brand in their life... to twine it in so cleverly that they'll never know. To explain it better, we quote from
the site: “Just as most of us spend more time with our
coworkers than our families, it’s even more true that we spend more time with products than with people - and the relationships we build around these products are worthy of attention. It's the
interaction between the product and the person that we call
placing.” Ahem! No doubt it's a powerful idea. But powerful ideas are like stem cells. They need to be grown and
nurtured if you want to make something of them. Product
placement has to go beyond a mere 10-second shot or even a 5minute exposure on the silver screen. It is no longer enough to see a brand on 70mm. Marketers need to take it beyond that. Also, marketers would do well not to
shoot in the dark, and place their brand in some flick as a kind of me-too thing without a definite strategy and without knowing
what exactly the association can do for them. Coca-cola India is a case in point. The company’s market research apparently threw up a statistic that showed them the idea of family and bonding appeals to every Indian - no matter which market segment he/she belonged to. Now how do they go about appealing to the finer sensibilities of Indian youth, without mushing about it? Get someone else to do the mush - and who understands mush better This than has the masala the to
extensive tieups with Bollywood blockbusters of the family and
bonding variety. They tested the waters with Taal, and went the whole hog with Hum Saath Saath Hain. The association was not restricted placement. to It mere product to
promotion, sponsoring events etc. It helped that the company had a clear goal. The top promotion of 1995, as designated by the Promotional
Marketing Association of America, was BMW's tie-in with Golden eye. And one of the great strengths of this promotion was to involve and entice the company's retail
network to take part as much as was possible. BMW dealers have embraced the association with
Golden eye, and, more recently, Tomorrow Never Dies, helping
BMW to get maximum leverage from the deal. Again, note that
the company did not just stop with making.
FINDINGS OF THE CONCLUSIVE RESEARCH
1. Frequency movies.
No. Of Respondents Once a month Once a week Fortnightly Others Total 87 54 32 32 205
Percentage ('x) 42.4 16.4 15.6 15.6 100
42.4% of respondents watch movies once a month
2. Place of watching movies.
Rank 1 2 3 Total
Theatre 108 49 47 205
VCD/DVD 50 73 82 205
Cable 48 81 76 205
Rank Theatre VCD/DVD Cable 1 3 2
Majority of respondents usually watches movies in the theatres.
3. Usually watch movies with: -
No. of Respondents Friends Family Spouse/GF/BF Alone Total 112 64 20 9 205
Percentage (%) ' 54.6 31.2 7.8 4.4 100
Majority of respondents usually watches movies with their friends.
Koi Mil Gava
1. Which beverage does Hrithik Roshan ask for at Preity Zinta's house? Bournvita Recalled Did not recall Total No. of Respondents 120 60 180 66.66% of respondents recalled the brand name, so the product placement of Bournvita was done effectively. Percentage (%) 66.67 33.33 100
2. Which bicycle does Preity Zinta present to Hrithik Roshan? Avon Cycle Recalled Did not recall Total No. of Respondents 50 130 180 Only 27.27% of respondents recalled the brand name, so the product placement of Avon Cycle was not done effectively. 27.78 72.22 100 Percentage (%)
3. Which bike was awarded to the winners of the basketball game?
Hero Honda Recalled Did not recall Total
No. of Respondents 138 42 180
Percentage (%) 76.67 23.33 100
76.670/0 of respondents recalled the brand name, so the product placement of Hero Honda was done effectively.
4. Which T.V. Showroom was shown in the movie? Sansui No. of Respondents Recalled Did not recall Total 16 164 180 Brand recall in this case was very poor. 91.11 % of 8.89 91.11 100 Percentage (%)
respondents could not recall the brand name, so the product placement of Sansui was not done effectively.
1. Which tea does Hema Malini prepare for Amitabh Bachchan in the movie? Tata Tea No. of Respondents Recalled Did not recall Total 68 112 180 62.220/0 of respondents did not recall the brand name, so the product placement of Tata tea was not effective. 37.78 62.22 100 Percentage (%)
2. In which bank does Amitabh Bachchan work in the movie? ICICI No. Of Respondents Recalled Did not recall Total 137 43 180 76.11 % of respondents recalled the brand name, thus the product placement of ICICI Bank was effectively. 76.11 23.89 100 Percentage (%)
3. What was the name of Paresh Rawal’s Music Cafe? Archies No. Of Respondents Recalled Did not recall Total 63 117 180 35 65 100 Percentage (%)
Only 35% of respondents could recall the brand name, so the product placement of Archies was not done effectively.
Which car does Salman Khan present to Amitabh Bachchan?
FORD Recalled Did not recall Total
No. Of Respondents 70 110 180
Percentage (%) 38.89 61.11 100
Only 38.89% of respondents recalled the brand name, so the product placement of FORD was not effective.
In which newspaper was HUM TUM cartoon published?
Times Of India
No. of Respondents
Recalled Did not recall Total
162 18 180 76.11 % of respondents recalled the brand name, so the product placement of ICICI Bank was done effectively.
90 10 100
1. Which news channel covers the launch of Saif Ali Khan's book 'HUM TUM' in the movie?
No. of Respondents
Recalled Did not recall Total
54 126 180 Only 300/0 of respondents recalled the brand name, so the product placement
30 70 100
of NDTV India was not done effectively.
2. Which magazine does Saif Ali Khan read in the movie?
Vogue Recalled Did not recall Total
No. Of Respondents 68 112 180 .
Percentage (%) 37.78 62.22 100
Only 30% of respondents recalled the brand name, so the product placement of NDTV India was not done effectively.
Which brand of potato chips was the cartoon character' HUM' eating in the movie? No. of Respondents 157 23 180 Percentage (%) 87.22 12.78 100
Lays Recalled Did not recall Total
87.22% of respondents recalled the brand name, so the product placement of Lays is done effectively.
Koi Mil Gaya Once Twice 3 times or more Total
No. of Respondents 91 42 47 180
No. of right Answers 124 86 114 324
Average 1.36 2.05 2.43 1.8
Baghban Once Twice 3 times or more Total Hum Turn Once
No. of Respondents 106 44 30 180 No. of Respondents 119
No. of right Answers 193 81 64 338 No. of right Answers 281
Average 1.82 1.84 2.13 1.88 Average 2.36
Twice 3 times or more Total
40 21 180
106 54 441
2.65 2.57 2.45
The general trend shows that as people watch the movies more and more number of times, their brand recall increases.
Brand recall also depends on how recently they have watched a movie.
Percentage of Respondents remembering atleast one Brand Name
Movie Atleast one Brand Name Koi Mil Gaya Baghban Hum Turn Total 160 158 173 491 No. of Respondents 180 180 180 540 Research shows that approx. 91 % of the total audience remembers at least one 88.89 87.78 96.11 90.93 Percentage (%)
brand name after watching the movie.
Product placement is not effective.
Alternate -Product effective.
LEVEL OF SIGNIFICANCE:
We will be testing at 5% Level of Significance.
TEST CRITERION USED:
This is a non-parametric test, as we are not dealing with any
values. It is also known as ChiSquare test of dependence.
Recalled Movie Koi Mil Gaya Baghban Hum Turn Column total
Recalled 324 338 441 1103
Did not Recall 396 382 279 1057
Row total 720 720 720 2160
Chi-Square = Σ [observed value (O) - Expected value (E)] Expected value (E)
Expected value = Row total * Column total Grand total
Koi Mil Gaya Recalled Did not Recall Baghban Hum Turn Koi Mil Gaya Baghban Hum Turn 324 338 441 396 382 279
367.67 367.67 367.67 352.33 352.33 352.33
1907.07 880.31 5377.29 1097.07 880.31 5377.29
(O-E) 2 E
5.19 2.39 14:6-3 5.41 2.50 15.26 45.33
Calculated Chi-Square = 45.33
Degree of freedom = (Rl)*(C-l) = (3-1)*(2-1) = 2
Critical Chi-Square d.f. (2) And level significance (50/0) 5.991
at of =
Rejection 45.53 5.991
As Calculated Chi- Square (45.33) > Critical Chi-
Square (5.991). Therefore we reject the Null hypothesis (Ho). And accept the Alternate hypothesis (Ha).
“Product placement is effective!”
CONCLUSIONS OF THE RESEARCH
1. From the Statistical
analysis we can conclude that product placement is effectively done in Indian movies.
3. As people watch the movies more and more number of times, their brand it recall also a increases they movie. have and
depends on how recently watched
4. Product placement is very effective on youngsters as
they get influenced easily by actors/actresses. They consider actors as their idols and would want to do what ever their idols do.
5. Very rarely does product placement purchase people. In affect decision most the of cases
people don't change their brands unless it has been endorsed by their favourite celebrity.
6. The number of times the product is shown in the movie also affects the brand recall, but it should not be overdone.
messages across to people who aren't forced to watch
middle of the show.
8. Product placement has the potential tremendous exposure comparatively expense. for to create product a small
9. Product exposure products public.
Placement and to the
effective strategy to gain promote general
10. Product placement is more effective in the rural market as compared to the urban market.
traditional product diversified,
placement is being more
imaginative, emotionally appealing.
12.In regards to the Studios and Production Companies, it offsets production costs. Products and / or services are provided f of charge to the Studios and Production Companies. The Departments of props, set decorations, wardrobe and transportation can save a sizeable amount of money by using Product Placement agencies. If there were no placement agencies, these departments items. would be forced to buy or rent these
short that of
Big stars at a fraction of the costs.
transcend class and
culture barriers. Clutterenvironment. Not subject to surfing, zipping or muting free
(unlike in TV and other media). Catches people in a
receptive mood. Revived and revisited
several times as a film's length always get
lengthened. Target specific. Opportunities for crosspromotions.
‘ANN EXUR ES’
1. How often do you watch a movie?
Once in a week Once in a month Once in fortnight Others (Please specify)
2. Where do you usually watch movies? Please rank the following according to your preference (1-Highest, 3-lowest) Theater ______ VCD/DVD ______ Cable ______
3. With whom do you usually watch movies? Friends
Family Spouse/Girlfriend/B oyfriend Alone 4. Which of the following movies have you seen and how many times? Koi Mil Gaya ________time(s) Baghban ________time(s) Hum Tum ________time(s) Viruddh ________time(s)
Please answer the following questions as per the movies marked.
“Koi Mil Gaya…”.
Hrithik Roshan ask for at Preity Zinta’s house?
Ans. ___________________________ ___________________________
2. Which Bi-cycle does Preity Zinta present to Hrithik?
Ans. ___________________________ ___________________________
3. Which bike was awarded to the winners of the basketball game?
Ans. ___________________________ ___________________________
4. Which T.V. Showroom was shown in the movie?
“Baghban” 1. Which tea does Hema Malini prepares for Big B? Ans. ________________________ ________________________ ___ 2. In which bank does Amitabh Bachchan work in the movie? Ans. ________________________ ________________________ ___
3. What was the name of Paresh Rawal’s music café? Ans. ________________________ ________________________ ___
4.Which car does Salman Khan gifts Amitabh Bachchan? Ans. ________________________ ________________________ ___
“HUM TUM” 1. In which newspaper did Hum Tum cartoons published? Ans. ________________________ _____________________
2. Which news channel covers Saif’s book launch in the movie? Ans. ________________________ _____________________ 3. Which magzine does Saif read in the movie?
Ans. ________________________ _____________________
4. Which brand of potato chips were the cartoon characters eating in the movie?
Ans. ________________________ _____________________
1. Which service money does transfer Amitabh
Bachchan use in the movie?
2. Which brand of automobile oil did Sanjay Dutt use in the movie? Ans. ___________________________ ________________________
(The above questions on the movies were included to get the unaided brand recall in some cases.)
RESPONSE SHEET NO. 1 Name: Puneet Sood ID Number: FW04722 Title Of Study: Marketing & Brand
Positioning In The Industry Of Entertainment.
Guide: August 2005 The Outcome of Discussion:
Being the first discussion about the thesis, I was able to clear out my vision regarding the study.
The Progress Of Thesis: The
thesis would be divided into 2 parts, Television and Movies. The main focus would be on the differentiation that exists in both the fields while placing the brand.
RESPONSE SHEET NO. 2 Name: Puneet Sood ID Number: FW04722 Title Of Study: Marketing & Brand
Positioning In The Industry Of Entertainment.
Guide: September 2005 The Outcome of Discussion: The
second discussion comprised of the detailed discussion about the market, which is expanding for the marketers in the entertainment industry. Detailed discussions were made about the small screen placements and a brief overview of the film market.
The Progress Of Thesis: I’ve
completed the study of the market prevailing in the small screen, mainly
comprising of game shows, reality shows etc. As, the market is huge and it is not possible to take all the shows as example, therefore short and crisp case studies on the most popular T.V. programmes are taken into consideration for research and analysis.
RESPONSE SHEET NO. 3 Name: Puneet Sood ID Number: FW04722 Title Of Study: Marketing & Brand
Positioning In The Industry Of Entertainment.
Guide: October 5, 2005’
The Outcome of Discussion: The
third discussion turned out to be very informative session with Viraj sir, as he pointed out key points that were not very visible in about the the research. marketer’s Discussions
preference depending on the price, viewership and repetitions, gave a base for better understanding and positioning strategy.
The Progress Of Thesis: I’ve
completed the study of the market prevailing in the small screen, mainly comprising of game shows, reality shows and an overview on daily soaps etc. As, the market is huge and it is not possible to take all the shows as example, therefore short and crisp case studies on the most popular T.V. programmes are taken into
consideration for research and analysis. An interview session with Nina
Jaipuria (V.P. Sony Set India Ltd.) turned out to be very informative and
enriching experience as she explained the whole business prospective
hovering around the T.V. soaps and other game shows.
RESPONSE SHEET NO. 4 Name: Puneet Sood ID Number: FW04722 Title Of Study: Marketing & Brand
Positioning In The Industry Of Entertainment.
Guide: October 5, 2005’ The Outcome of Discussion: The
fourth discussion was mere analysis of the job and researched conducted previously. It consisted of analyzing the
information received from the death interviews conducted last week.
The Progress Of Thesis: The
study is at an important stage, as it is
almost going to complete the first hurdle of television industry and its brand placements. It has reached the analytical part.
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