Product Placement Strategy in Pakistan –

A Novel Approach

By

XXXXXXX (123456)

Submitted to:

Zaki Rashidi
Course Instructor

Term Paper
ARMT Course

Fall 2010

Shaheed Zulfiqar Ali Bhutto Institute of Science & Technology (SZABIST)

90 Clifton, Karachi

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 Table of Contents
1. Introduction ........................................................................................................................... 3
1.1 Preamble ......................................................................................................................... 3
1.1.1 Historical Development of Product Placement ........................................................ 4
1.1.2 Advantages of Product Placement ........................................................................... 5
1.1.3 Ethical Issues of Product Placement ........................................................................ 5
1.2. Research Problem .......................................................................................................... 6
1.3. Objectives of the Study .................................................................................................. 6
1.4. Justification .................................................................................................................... 7
1.5. Limitations ..................................................................................................................... 7
1.6. Scope .............................................................................................................................. 8
1.7. Assumptions................................................................................................................... 8
1.8. Definition of Keywords ................................................................................................. 8
1.9 Acronyms ........................................................................................................................ 8
2 Research Methodology .......................................................................................................... 9
2.1. Research Design............................................................................................................. 9
2.2. Procedure ....................................................................................................................... 9
2.3. Population ...................................................................................................................... 9
2.3.1 Frame of reference ................................................................................................... 9
2.4. Sample and Sampling Methods ................................................................................... 10
2.5. Instrument selection ..................................................................................................... 10
2.6. Variables ...................................................................................................................... 10
2.7. Propositions.................................................................................................................. 10
2.8 Plan of Analysis ............................................................................................................ 10
2.9. Research Schedule ....................................................................................................... 11
2.10 Software Employed ..................................................................................................... 11
2.11 Required Resources .................................................................................................... 11
References ............................................................................................................................... 12
Appendices .............................................................................................................................. 13

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1. Introduction

1.1 Preamble
The concept of product placement is widely practiced in the western part of the world. To
define product placement, it is one of the marketing strategies used to promote a company’s
brand or service. Product placement or otherwise also known as ‘embedded marketing’ is a
type of advertisement where branded products or services are not placed in television ads,
rather they are subtly displayed or presented in movies, television shows or news shows.
Product placement is a new form of marketing technique that enables the companies to
increase their brand awareness and popularity amongst the masses effectively. Product
placement is done when there is an agreement between the company making the brand and
the chosen media channel to display their product in popular shows for a fee. The company
in turn hopes that the use of product placement will have significant impact on increasing
brand awareness, recognition and sales. Product placement is of different types namely,
classic placement, corporate placement, evocative placement and stealth placement (Karrh
2003).

Though the concept have been mostly saturated in many western markets it is still relatively
new in the eastern markets, where this concept have not yet gained momentum. Product
placement gave a new hope to marketers with its evolution. The marketers are always on a
lookout for a new and improved ways and techniques to pull over consumers by attracting
them with respective branded products or services. The consumers are in turn always in need
of something exciting that would capture and retain their attention. This is where the concept
of product placement grabs the major proportion of a company’s marketing strategy. The
mode of advertising through commercial ads on television between shows and movies have
lead to a certain level of frustration amongst consumers and they mostly tend to tune out the
ads. The marketers who are spending millions of money on the creation and broadcasting of
ads have nothing left but to cry over spilled milk. The advent of technology like personal
video recorders has facilitated consumers to totally skip ads and continue to change channels
by ignoring them. So, in order to keep the consumers attracted the marketers need to improve

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their communication mix strategy that may inculcate the use of new and unique channels of
communication (Beginner’s guide 2006)

1.1.1 Historical Development of Product Placement

The concept of product placement has evolved greatly over the decades and now its usage
has somewhat toned down. Product placement has been present in movies and television
shows over the years. Though, always it has been subjected to several rules and regulations
that have kept a strict check over it. The concept of product placement was not common in
Hollywood until the 1970’s era, when marketers realized that they could achieve cost
efficiency and practicality by displaying the brands in movies and shows. However, it was
the early 1980’s when fully the importance of product placement over the consumers was
grasped by the marketers and advertisers both. The initial most successful product placement
was of the product Reese’s Pieces displayed in the movie ET: The Extra-Terrestrial, which
contributed to humungous increase in its sales. Many other brands following their placement
in shows and movies also enjoyed fruits of success. In 1983, Tom Cruise was showed
wearing Ray-Ban sunglasses in the movie Risky Business, which caused its sales to go up by
55%.

Product placement on television evolved differently than in movies. It was a common

practice of sponsoring the entire shows and for the advertising agencies to play the main
roles initially on television. The practice became somewhat regulated in the 1950’s when the
FCC introduced new rules regarding product placement (Hinsliff 2009). The television
producers were now liable to reveal their main sponsors. Currently the product placement has
contributed to high revenue positions for branded products and services. Numerous popular
brands like Burger King, Dove Body Wash, Sony PlayStation, Verizon Wireless and Visa,
etc has said to be paid more than $2 million per episode for product integration (Kiley 2005).
The concept of product placement though not new has an attractive quality of systematically
integrating brands with entertainment shows. It helps fulfill the requirements of both the
company and advertiser. The company marketer’s are always on lookout for someone to
finance their strategies. They also with the help of product placement want to achieve
increased brand awareness and benefits from the relationship of consumer and show

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character when they identify themselves with what their favorite character or celebrity wears
or uses. Advertisers on the other hand want an effective medium to connect with the
consumers and influence them.

1.1.2 Advantages of Product Placement

The concept of product placement contributes advantageously for the company. The
advantages of this strategy can be ascertained through the analysis of past successful product
placements. Following are some of the advantages which companies have through product
placements. Firstly it is cost efficient as it saves money from thousands of reruns of
television shows or movie telecasting. Secondly, there is no display of competition in the
same show. Thirdly, the shows can be chosen beforehand according to specific target
consumers of the product and the show as well. The dilemma for the companies and
advertisers of the growing advertising-avoidance attitude is overcome through product
placement that consciously or subconsciously influence the consumer. It generates high level
of mass exposure for the brand resulting in increased brand awareness and recognition.
Product placement effectively communicates the desired marketing message to target
audiences, educate them about the product’s various features and help create a relationship
amongst the show characters, brand and consumer (Waldt 2007). Product placement is a
means of capturing the attention of the audience when their resistance is low and so they are
not mindful of the fact that brands are being displayed in shows and movies. Rather, they
find it to be amusing. Product placement is a means for effectively communicating the brand
on shows and movies while appearing to be from an independent and credible source. So this
in turn increases consumer trustworthiness and favor (Saladino 2008).

1.1.3 Ethical Issues of Product Placement

The practice of product placement has not been free of a few criticisms. It is felt by many
people that some the practice is ethically challenged as it should abide by the rules of right
and wrong. Michael Jacobson, the Executive Director of The Center for Science in the Public
Interest, defined product placement as, “product placement is a subtle means of promoting
a brand or service which caters to one’s subconscious thinking. The audience is not aware
of the fact that a product or service is being advertised to them” (Yu 2006).This definition
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may render product placement practice in a negative light as it is said to be an art of violating
and manipulating a person’s choice rather than persuading them. One of the main ethical
concerns regarding this practice is the placement of mostly alcohol, tobacco and junk food,
etc; as it is the only means of communication for them. Another issue is of showing
deceptive or incomplete information about a product or service on a show. This leads to
misinformed consumers as they are cheated of their right of information. All these issues
should be considered in light of strict rules and there should be a stringent check over the
product placement practices.

1.2. Research Problem

Product placement has gained a lot of popularity amongst the West where it is commonly
practiced in T.V shows, reality shows and movies. The Pakistani market is catching up on
this as well. Companies place their products in various T.V shows in order to increase the
presence of their brands in the minds of consumers subconsciously. “The aim of this
research is to explore product placement strategies, its benefits and marketers perceptions
regarding product placement status in Pakistan.”

Research Questions
Through this research, the answers of the following questions will be answered:
1) Is product placement considered as an advantageous option for companies?
2) What kinds of products are most commonly placed in T.V serials, reality shows, etc
in Pakistan?
3) Do marketers feel that product placement should be increased in Pakistani
Television?

1.3. Objectives of the Study

 To determine whether marketers consider product placement as a viable strategy
presently and in the future for the Pakistani market.
 To find out importance of product placement strategy.
 To find out the reasons why marketers adopted product placement strategy to market
their products in western markets

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  To find out what kind of products are widely used for product placement.
 To find out what products are most frequently used for certain shows for product
placement in Pakistan and the reasons as to why.
 To determine to what extent is product placement practiced in Pakistan and whether
or not it is advantageous to companies in terms of brand recognition amongst the
consumers.

1.4. Justification
This study is conducted to gauge whether product placement is considered as a viable
strategy by the companies in Pakistan. Furthermore, it will discover to what extent is product
placement practiced in the country and is this practice increasing or not.
Following are the stakeholders of this research:
1) Companies who are operating in Pakistan or wish to do so would benefit from the
study as they would come to know what the overall viewpoint of the industry is
towards product placement. Companies who do follow or do not practice product
placement can make a decision after reading the findings of the study.
2) Students and teachers will gain knowledge from the research about the product
placement activities that the Pakistani market practices and if there is potential in the
market.
3) Customers will indirectly benefit from this research in the sense that if the findings of
the study conclude that product placement is a viable option for the Pakistani market;
the bombardment of advertisements, hoardings etc that customers have to face every
day will be lessened as marketers would have another option to make their brand
prominent.

1.5. Limitations
1) This study will only take into account the Pakistani market due to the limited time
period of the research; and the recommendations and conclusions will be beneficial to
existing and potential marketers in Pakistan.
2) Interviews will be conducted with only the relevant marketers in Karachi because of
limited contacts.

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 3) In order to remain focused, this study will only consider the marketers perspective
about product placement and not the customers.

1.6. Scope
1) This study will take into account the Pakistani market and the recommendations and
conclusions will be beneficial to existing and potential marketers in Pakistan.
2) The research will take into account the companies’ perspective; as to how they carry
out product placement, whether or not it is a beneficial option etc.

1.7. Assumptions
1) The economic and political factors will remain constant in Karachi (where we will
conduct our study) throughout the duration of our research.
2) The information that we will gather from certain companies will be considered as
truthful and will reflect the actions of majority of the players belonging to similar
sectors of the market.

1.8. Definition of Keywords

1) Marketing strategies: strategic plan of the organization to inculcate its resources to
achieve increased sales and competitive advantage over the competition
2) Embedded marketing: another name for product placement, which is the promotion
of brands in shows and movies
3) Brand Awareness: Marketing terminology measuring consumer knowledge about a
brand’s being
4) Communication Mix Strategy: a marketing promotional strategy of effectively
promoting a brand using all mediums of communication like, television, radio,
internet, etc.
5) Product Integration: use of products in television shows or movies, meanwhile
achieving a set of objectives to benefit the business
6) Advertising-avoidance Attitude: the act of ignoring the advertisements by skipping
channels or merely zapping it through digital voice recorders.

1.9 Acronyms
FCC: Federal Communication Commission

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2 Research Methodology

2.1. Research Design

This research will be qualitative in nature and will be done through gathering non-numerical
data with a focus on gathering of verbal data. Since, the topic requires exploring the potential
of product placement strategy in Pakistan; hence the study will be conducted by using in-
depth-interviews with the companies and will try to find the lay of the land for the topic
“product placement in Pakistan”.

2.2. Procedure
1) Find out the reason as to why companies shifted from normal advertisement towards
product placement strategy in global market. (Secondary research)
2) Find out the reasons behind the viability and success of Product Placement strategy in
international market. (Secondary research)
3) By knowing the reasons, next to ask the local expertise whether product placement
can be as effective strategy in Pakistan just like in the international market or not.
(Primary research – Interviews)
4) Finally to find out the marketers’ and companies’ attitude towards product placement
strategy in local market. (Primary research – Interviews)

2.3. Population

2.3.1 Frame of reference

The population of this study consists of marketers, communication agents and corporate
marketing executives who are involved in marketing the type of products relevant to the ones
who have the potential to be used in product placement field. The reason of choosing them is
that probably they have the exposure and knowledge about the product placement field and
its strategy. Also they will be able to provide the relevant information about its viability in
the present and its expected growth/decline in the near future. Secondly, since product
placement is believed to be relatively not a very old phenomenon in Pakistan, it is justifiable
to focus on experts in the field rather than the masses.

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2.4. Sample and Sampling Methods
As this research study is purely qualitative in nature hence it restricts in defining proper
sample or sample size. However, it is planned to interview around 15 to 20 experts from the
fields discussed above in frame of reference. The reason of selecting this sample is
availability of the experts in the field in time limitations during data collection process. Also
this will help to keep study focused.

2.5. Instrument selection

Both primary and secondary data will be collected. Secondary data will be extracted for
information of product placement in the international market by using the research articles
and literature provided online. Semi-structured interviews will be conducted by using
specialized and developed through the experts an interview questions list. The questions of
interview will be validated through different experts in the field before conducting actual
interviews.

2.6. Variables
The variables in this study will be explored through the analysis, hence they cannot be
defined explicitly at this stage.

2.7. Propositions
1. Product placement is a well established concept among Pakistani marketers and
practiced as well
2. The Viability of Product Placement strategy is positively associated with the
decreasing level of other communication mixes’ influence on Consumers.
3. The product placement is beneficial if practiced as per international standards

2.8 Plan of Analysis

The primary data collected through interviews will be analyzed through thematic analysis,
while the secondary data (quantitative in nature) will be used to describe the trends and
explaining the profile.

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2.9. Research Schedule

2.10 Software Employed

Nvivo7 will be used to analyze the qualitative data collected through interviews in this
research, while secondary data, quantitative in nature will be manipulated though Microsoft
Excel.

2.11 Required Resources

The resources required to conduct this research primarily will be contacts of the marketers
and experts in the field and secondly the permission to collect the data.

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References
Beginner’s Guide, 2006, Why use Product Placement, Available from Website:
http://www.beginnersguide.com/advertising-marketing/product-placement/why-use-product-
placement.php, Accessed 22nd August, 2010

Blondé.K, et al, 2007, An Explorative Study of Testing the Effectiveness of Product

Placement Compared to 30-Second Commercials, Vlekho-Business School, Belgium

Hinsliff.G, 2009, Rule change allows TV product placement, Available from Website:
www.guardian.co.uk/.../product-placement-british-television, Accessed 22nd August, 2010

Karrh.J, et al, 2003, Practitioners' Evolving Views on Product Placement Effectiveness,

Journal of Advertising Research, V 43, page 138-149, Cambridge University Press

Kiley.D, 2005, Product Placement Appearing in More Scripted Venues, Available from
Website:http://www.businessweek.com/the_thread/brandnewday/archives/2005/09/product_p
lacement_appearing_in_more_scripted_venues.html, Accessed 22nd August, 2010

Saladino.M, 2008, The Proliferation of Product Placement as a Means of Advertising

Communication, Journal of International Business Ethics, Vol.1, No.1, Seton Hall
University, USA

Waldt.D, et al, 2007 Does branded product placement in film enhance realism and product
recognition by consumers?, African Journal of Business Management, pp. 019-025,
University of Pretoria, Republic of South Africa.

Yu. C, 2006, Ethical Issues of Product Placement and Manipulation, Prateek Kanchan (Ed.)
In-film advertising: Brand positing strategy, pp. 90-100, ICFAI University Press, India

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Appendices
The links to the three base documents for the research are as follows:
Karrh.J, et al, 2003, Practitioners' Evolving Views on Product Placement Effectiveness,
Journal of Advertising Research, V 43, page 138-149, Cambridge University Press,
Retrieveed from website:

http://docs.google.com/viewer?a=v&q=cache:xGuLFET7agEJ:data.adic.co.kr/lit/publ
ication/tmp/A9001208/A9001208.pdf+1)+%E2%80%9CPractitioners+evolving+vie
ws+on+product+placement+effectiveness&hl=en&gl=pk&pid=bl&srcid=ADGEESi
RzEhzxxiIdee8GbtPE7wWzJg8ZLQ4UpIBFccYY0HvZEc1XcxkKpdNOZn43sN5rb
zATfjIW1BY_0HF1bgKJRlXUn7MBEld5Ce3nPHtt7lARkWRBaeXOBBuo_C6pwV
CEULcnj_P&sig=AHIEtbTFKGdBgWrp3xRlNEq2ss1YmcQJYQ, accessed August
22nd, 2010.

Sabour. N, 2008, Product Placement in Finland: A practitioner perspective, pg 183-243,

University of Jyvaskyla, Retrieved from website:
http://docs.google.com/viewer?a=v&q=cache:GSiNHpm-
fuoJ:lta.hse.fi/2008/2/lta_2008_02_a3.pdf+%E2%80%9CProduct+Placement+in+Fin
land:+A+practitioner+perspective%E2%80%9D.&hl=en&gl=pk&pid=bl&srcid=AD
GEESiedW9biFi3BeK-nvbTfKRrjbwvPsoKdFOCWkDy-
ozbCyF1V6OIz60D_RCQqSiUS3ljJ2lLjSXFmpikZH5Yiucf5-
3pLJybnCEBGQLWROCpSoPGBmqKkzN0lAtcD4l4AR1qMNeq&sig=AHIEtbQ9X
jJl5iqJTk6xcwQAOwBJe9rUSA, Accessed August 22nd, 2010.

Wiles. M, et al, 2009, The worth of product placement in successful films: An event Study
Analysis, Journal of Marketing, Vol.73, pp44-63, American Marketing Association.
Retrieved from website: www.wenku.baidu.com, Accessed August 22nd, 2010.

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Summary of Three Research Papers

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