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Indian Institute of Management


Ahmedabad IIMA/MAR0483(C)

Revised on June 2, 2018

ABC Films: Marketing Research on


Product Placement (C)
CONDUCTING THE EXPLORATORY STUDY

A group of second year MBA students of Indian Institute of Management Ahmedabad had
undertaken a marketing research on product placement. They had been approached by ABC
Films, a leading Mumbai-based film producing company, for help in studying the
effectiveness of product placement, in Indian context.

The group was looking at the findings of the focus groups conducted by them. Unhappy
with the results before them, one member raised serious questions about the way they had
conducted the study. He was sceptical about whether they had adopted the right research
design for answering the research questions. He was also unconvinced about the use of
project techniques in the form of a word association test. He also expressed concerns about
sample selection and the model of product placement used in their study.

Method Selection

While selecting the research design, the group members had three options to choose from.
They did not have any testable hypothesis – a preliminary requirement for the survey
method. Thus, the quantitative survey option was rejected. Further, they wished to show
product placement clips to the interviewees and gauge their response. They felt that
conducting in-depth interviews with clips being shown to each individual would be too
time-consuming. They also felt that in-depth interviews would take much more time than
focus groups for collecting similar amount of data. The group therefore decided to use the
focus group method. They felt that a group setting would encourage stimulation of new
ideas and lead to testable hypothesis – which could be tested later in the conclusive research
phase.

Sampling

Once the group decided to use the technique of focus groups for data collection, it was
confronted with a next question: who should participate in the focus group? The group
agreed that the focus group should not comprise of fellow business school students. They
felt that the opinions of the management students may differ from a sample drawn from a
population, with more diverse backgrounds. Further, there were other questions such as

Prepared by Professor Anand Kumar Jaiswal and Varun Sunku, PGP student (2009-11), Indian
Institute of Management, Ahmedabad.
This case is based on marketing research project done by Varun Sunku, Deepak Basumatary, K N
Karthikeyan, K Subrahmanya Hanuman, Manam Sandeep, Shubhashish Biswas, and Sreejith
Hrishikesh, as a part of the Marketing Research and Information Systems course. The case setting is
created to facilitate class room discussion.
Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for class
discussion. They are not designed to present illustrations of either correct or incorrect handling of
administrative problems.
© 2016 by the Indian Institute of Management, Ahmedabad.
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what would be the venue for focus groups and where would the participants meet?
Conducting the session in a mall, eating outlets or in public places was an option, but the
group felt that these would be noisy and not conducive for uninterrupted discussions. In
addition, they also needed a projector to show the video clips to the participants. Finally, it
was decided to go to various colleges, select candidates and then either conduct the focus
group at the auditorium of that college or invite them to one of the classrooms on IIM
Ahmedabad campus. The group defined their target segment to consist of college students
in the age group of 15-30 and selected them using non-probabilistic convenience sampling.

Screening Questionnaire and Protocol

In order to ensure a representative sample set, the group created a simple screening
questionnaire (Exhibit 1), to collect varied information such as the interests, socio-economic
status and movie-watching behaviour of the participants. The focus groups comprised of an
equal mix of frequent movie-watchers and viewers watching movies less regularly to ensure
an unbiased discussion.

The group made a focus group protocol – an unstructured questionnaire designed to guide
the focus group moderator and help him/her direct the flow of the discussion. The protocol
consisted of five categories and arranged in such a way that open subjects could be
discussed first and rapport could be built before talking about product placements (Exhibit
2).

Product Placement Model

The next task before the group members was to decide on the product placement model, to
help them structure the data collection. They thought through the different types of product
placement, conducted extensive literature review and talked to subject-matter experts. They
finally decided to use the model that had been developed by Shapiro (1993)1. The model is
given below:

Type of product Description Illustration


placement
Implicit The product/brand is clearly visible in the A bottle of Bournvita on a table.
scene. There is no mention of either the Example: In the movie Krrish
product or the brand.
Used in the scene The product is used in the scene. Similar to Actor/Actress drinks Bournvita
the implicit type, it is not formally but does not talk about it.
mentioned. Example: In the movie Krrish
Auditory The product and its benefits are explicitly Actor/Actress says, “I would like
mentioned in the scene. However, the Bournvita”. Example: In the
product itself is not seen. movie Koi Mil Gaya
Integrated explicit The product/brand and its benefits are Actor/Actress mentions the
explicitly mentioned while being used in the benefits of Bournvita while
scene. drinking it. Example: In the
movie Krrish

1 Shapiro, M. (1993). Product Placements in Motion Pictures. Working Paper, North Western University, NY
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Conducting Focus Groups

A total of four focus groups were conducted – two at IIM Ahmedabad, one each at the
Nirma University campus and 1 at Gujarat University campus. At the start of the session,
the moderator asked the group to introduce themselves. They were then asked open-ended
questions. In the two focus groups conducted at IIM Ahmedabad, in the middle of the
session, participants were shown 10-minute-long movie clips. In the clips, product
placement scenes of 2-3 minutes from four out of six movies were included. This was done
with an intention to replicate the movie-watching experience.

In order to control the movie genre factor, all scenes were shown from family movies.
Further, the product placement scenes were shown in a different order to control the order
bias. The details of the clips shown are mentioned in Exhibit 3. Subsequently, the
participants were asked to recall the brands/products that had been shown in the movie.
The participants were then asked to discuss the effectiveness of the product placement. All
the focus groups were recorded and transcribed. In the first focus group conducted at IIM
Ahmedabad, after the movie clips were shown, a word association test was conducted to
determine the effect of the product placement on the viewer. A sample response is provided
in Exhibit 4.

Data Analysis and Findings

After the focus groups concluded, the typed transcripts of the focus groups were analysed.
Analysis of the participants’ answers in various focus group discussions led to a set of
common themes and ideas. These themes and ideas were repeated frequently during the
discussions. The group identified the following recurrent themes:

 Brands and products were noticed and recalled effectively only when portrayed
sufficiently and appropriately. The real-time spent on it, subtle yet relevant
highlighting by the mention of brand name or quality, portrayal of usage by
celebrities, the brand value of celebrities resulted in a significant positive outcome.

 The duration of the product placement was more important than the frequency of the
product placement. Further, the magnitude of the product placement duration was
critical in affecting brand salience and recall.

 There was a potential hazard of underemphasising the brand name during product
placement, as it often led to a disguised promotion of the competitor’s product. This
was especially true for products that were not familiar or could not be visually
differentiated. For example, most of the participants confused the Flyte scooter,
which was a new brand with other well-established brands such as Scooty Pep. At
the same time, product placement had to be done in a manner that was subtle and
did not strike the consumer as being blatant or intentional advertising.

 Product placement should use a certain level of spontaneity. Overtly direct and
integrated product placement (e.g., direct promotion of product by the protagonist)
led to a feeling of enforcement and artificiality. This could actually hamper the
creation of positive feelings for the brand in certain product categories.

 The same method of product placement would not work, equally well, across all
product categories.
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 Apparel and fast-moving consumer goods (FMCG) products placed in movies had a
direct and favourable effect on the customers. Durables and automobiles shown
without explicit feature explanation, in the movies excited the customer and created
an urge to know more about it, but did not translate to direct purchase behaviour.
Thus, product placements were better for FMCG, apparel and other utilitarian
products.
 Product attributes could be mentioned along with the brand name to make a larger
impact on the consumers’ minds.

 Implicit product placement was not useful for products that did not have significant
visual differentiation.

Exhibits 5a to 5d provide the key findings and observations from each of the four focus
groups along with the supporting verbatim. The factors that could impact the effectiveness
of product placement that were also discussed are given in the same exhibits.

The word association test revealed that less than 33% of the participants had realised that
there was a product placement. For instance, when participants were shown the clip from
the movie “3 idiots” and the word association test was administered, only two out of nine
participants recognised Fortis brand of hospitals and none of the participants recognised the
Flyte scooter.

The findings of the study were summarised in the following two points

1. The various factors that drive the effectiveness of the product placement were

 Type of product placement


 Suitability of the movie to the brand
 Movie likeability
 Celebrity likeability
 Viewer age and gender
 Entertainment value of the movie
 The fit between the product and the scene
 Attitude towards product placement
 Advertisement effectiveness in creating brand awareness

2. The effectiveness of product placement depends on the nature and category of the item or
brand being advertised. For instance, two product placements involving an established
brand and a newly introduced brand would not result in the same level of effectiveness.

One group member was unhappy as he felt that the above results added little to what the
group already knew about product placement. He said, “I think we have made a
fundamental error in the way we have conducted the exploratory research!”
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Exhibit 1
Screening Questionnaire
Screening questionnaire
Hello! We are a group of students currently working on a research project. We would like to know your
opinions on some issues. In fact, we would like to get a group of you and other participants together,
to talk about a few of these issues. But first, please answer these questions so that we can get to
know you better. Thanks a lot!
1. Gender (Male/Female):
2. Age:
3. What do you do during your free time?
a. Play computer games b. See movies/TV c. Sports d. Reading
e. Other
4. How many movies do you watch per week?
a. 0-1 b. 1-2 c. 2-4 d. More than 4 movies
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Exhibit 2
Protocols for Focus Group
Attitude towards Entertainment/ Movies
1. What do you do in your free time?
2. Do you like watching movies? Who is your favourite actor? What is your favourite movie?
3. Do you like watching Hindi movies?
4. How many movies do you watch in a month?
5. Do you watch movies in a theatre or on TV? Where else can you watch movies from? Do you
rent out the CD?
6. If you really like a movie, would you watch it again? If so, how many times would you watch
your favourite movie?
7. What are your favourite TV shows?
Impressions of Advertising
1. What are the products that you use?
2. How did advertising impact you in making the decision to purchase them?
3. When you see an advertisement, do you persuade your parents to purchase it for you? Do
you ask them right then?
4. What are some of the good advertisements? What do you think makes them good?
5. Who are the celebrities/advertising spokespeople that you trust?
6. What is your opinion on advertising?
Product awareness
1. How do people learn about product X? (The product used in the product placement)
2. How do you learn their benefits?
3. How do you find out where to buy them?
4. What is the price range that you would be willing to pay for the product?
Motivation for product use
1. What does this product mean to you?
2. What do you think the brand stands for?
3. Why do you think that people use this product?
4. Are there any other products that you would consider if this product is out of stock in the
shop?
5. When did you start using this product? How did you get referred to it?
6. Why did you first start using this product?
Attitude towards product placement
1. Have you heard about product placement?
2. What do you think about this practice?
3. Do you think that it is effective?
4. Do you recall any products that you have seen being used or spoken about in movies?
5. Do you recall any products that have sponsored any of your favourite shows?
6. If you see a product that you like in a movie, have you ever asked your parents (decision-
maker) to buy it afterwards?
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7. When do you ask your parents about the product that you have seen in the TV/movie?
8. What do you think about the effectiveness of product placement vis-a-vis other traditional
modes of product advertising?
9. What do you think are the pros and cons of product placement?
10. What is your reaction to product placement?
11. When you saw your favourite actor/actress/superhero use a product in a movie, have you
ever wanted to purchase and try that product yourself? Can you give any instances?
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Exhibit 3

Product Placements Clips shown during the Focus Groups

Feature film/ Product (type of product Situation


TV show placement)
3 idiots (2009) Mahindra Flyte and Fortis Main star uses Mahindra Flyte to
Hospitals (used in scene, ferry his friend’s father to the Fortis
implicit) hospital, a hospital where the
heroine is working. The scooter is
shown as the protagonist’s vehicle
throughout the film. The protagonist
also mentions that the scooter is a
“life-saving” scooter without explicitly
mentioning the brand/name.
Saregama (2006) TVS (Non-integrated explicit TVS was the official sponsor of this
product placement) TV show. The brand name was
prominently displayed in opening
credits and subtly in closing credits
as well.
Krrish (2006) Bournvita (implicit, used in The brand is shown throughout the
scene, auditory product film. The hero claims it to be the
placement) secret behind his superpowers.
Runaway Bride (1999) FedEx (integrated explicit The actress runs away from the
product placement) church using a FedEx van. Further,
the other actors express the benefits
associated with the use of the FedEx
service.
Phir Hera Pheri (2006) Domino’s Pizza (implicit, The protagonist explicitly mentions
integrated explicit product the promotional offer of Domino’s.
placement) Further, the actors meet in a
Domino’s outlet at a later stage.
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Exhibit 4

Word Association Test with a sample response

Word / Question Association (Idea/Word/feeling)


Weather Atmosphere outside
Hero Salman Khan
3 idiots Any-time watch
Kareena Kapoor Size 0
Patient Emergency
Watch Time
Hospital A place where you get ok.
Name three hospitals that you can think of Jaslok hospital, C V Shah, -
Name three two-wheelers (scooter category) that you can Pulsar, Hero Honda , TVS
think of
College 3 years of enjoyment
Preferred gift from parents I don’t want anything.
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Exhibit 5a
Summary of First Focus Group Conducted At IIM Ahmedabad

The focus group consisted of seven Bachelor of Commerce students from H.L. College of Commerce,
Ahmedabad and an architecture student. There were five male and three female students. The group
was approached in their campus. They were selected through the screening questionnaire and then
requested to come down to IIM Ahmedabad campus for discussion. The group was formed to ensure
that there was an equitable mix of frequent movie-watchers and less-frequent viewers so that the
group was representative in its composition.

The discussion was conducted in one of the classrooms. The participants were informed that the
research team was interested in their views on a range of topics. The discussion was guided by
moderators and probing questions were asked to ensure that the group did not deviate from the topic.
At certain moments during the focus group, the participants were shown movie clips for about 10
minutes, to ensure that the viewers were sufficiently immersed in the movie-watching experience. The
focus group then deliberated about the effectiveness of the product placement.
The following is the summary of the focus group discussion:
1. Movies are highly-involving forms of entertainment, hence product placements can leave
an impact
“I do not miss any good movies; I manage to take out time on holidays somehow.”
“In Dhoom 2, Hrithik pulled the coke can with his gadget; that was very stylish.”
“In our family, my bhabhi gives examples of Krrish to make her kids drink milk-and-Bournvita.”
2. Product placements can make an impact only to a certain extent, beyond which other
product factors will be taken into consideration by the consumers. However, the recall is
improved by promotion/display in movies.
“I will not buy a bike just because Hrithik Roshan drives it.”
“I will ask my friends and parents before buying a mobile.”
“I remember Shah Rukh Khan’s shoes in Chak De! India, but I will not just look at the style, but
also the price.”
“I cannot use any product which Rakhi Sawant endorses, however good it be. (laughs)”
3. During product placement, a significant focus on the brand name and owner group should
be there, or else there would be a strong chance of audience mistakenly associating it with
another brand.
“Why would I pay any attention to which brand of scooter Kareena is driving? One would be too
busy noticing how she looks instead. The scooter in the clip was an obvious miss.”
“I actually felt it was an Activa or Scooty in the movie (3 idiots). Even if you had told me during the
movie that it is Mahindra, I may have refuted it.”
“These products look similar to each other. I cannot differentiate the product just by viewing it. At
such times, I may believe that it is a product which I have come across initially or a product which
may be the industry leader ... for instance, Scooty Pep is the leader when it comes to scooters.”
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Exhibit 5b

Summary of Focus Group Conducted at Nirma University

A focus group discussion was conducted at Nirma University campus in Ahmedabad. A total of 7
students participated in the focus group discussion. Five of them were female and two of them were
male students.
The group was not informed about the purpose of the discussion. The group was asked by the
moderator to discuss on certain topics from the interview protocol. The moderator also interrupted the
group and asked them new questions whenever the discussion digressed from the main topic for a
longer duration.

The group was given no prior information on what the moderator was actually doing. It was merely
mentioned as project work. No introduction about marketing, product placement or advertisement was
imparted to the group. Also, no videos were shown to the group.
The following is the summary of the focus group discussion:
1. People are aware of the advertisement/product placement being done in the movies
“In the movie, Badmaash Company, the actors stepping out of Prada.”
“Ranbir wears Provogue in Wake up Sid.”
“Airtel in 3 Idiots.”

2. Buying decisions are more influenced in product categories like FMCGs and apparel. The
transition from Awareness to Trial stage in the Hierarchy-of-Effects model was more rapid
in the above-mentioned categories
“All the people wanted to buy the same clothes from Prada like the ones that Priyanka Chopra
wore.”
“Ranbir’s clothes in Wake up Sid was a craze.”
“You wouldn’t buy an automobile if you see it on movies. I would do more research if I want to buy
an automobile.”
“Bournvita in Krrish may influence the kids more.”

3. The amount of post-movie discussion was more for apparel/interior design/locales than
durables
“After movies, we do discuss about what dress the actress was wearing.”
“The bracelet worn by Salman in Tere Naam was a talking point.”
“The haircut of Salman in Tere Naam. Everyone wanted to have that kind of hair-cut.”

4. The products are noticed depending on the portrayal, but consumers are confused about
the exact brand displayed. Celebrities talking about a product may be noticed more but not
clear whether it affects the buying process
“Yes we noticed Hrithik Roshan in Krrish pouring Bournvita.”
“Hrithik Roshan talking about Bournvita may influence the kids, not us.”
“Kareena used a Scooty in 3 Idiots.” (Did not recall which brand)
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Exhibit 5c

Summary of Focus Group Conducted at Gujarat University

A focus group discussion was held in the Gujarat University campus in Ahmedabad. The group of
students were approached by the research team members who decided to proceed after initial
screening regarding their relevance as focus group members. All the members were found to be
movie enthusiasts with keen interest in various products that are advertised through product
placement.

The discussion was initiated by the moderator and then all focus group members gave their views
without any inhibitions or interruptions. Whenever the focus group discussion stagnated or when it
went beyond the scope of the project, the moderator steered the discussion in a relevant direction
with one or two non-opinionated statements or posed questions.

Before the discussion started, the focus group members were given a brief regarding the new
marketing trends in Indian industry. Then they were briefed on product placement and its relevance
for the research.
The following is the summary of the focus group:
1. Brand value of the actor is important in making the product placement effective
“Hrithik Roshan riding a Karizma bike makes more impact than any other actor doing it.”
“The hero who is using the product should be popular.”
“The more popular the actor, more will be the people who notice him on screen.”

2. The popularity of the movie is important for effective product placement


“What is the point if not many watch the movie?”
“I feel like buying the product used in a famous movie.”
“I seldom remember any product seen in a flop movie.”

3. Product placement is more effective for the young viewers


“I don’t think people above 20 or 25 are influenced by it.”
“I have seen lots of kids getting attracted.”
“Who notices all these after getting so old?”

4. Very direct advertising through movies reduces the credibility of the idea conveyed
“The more subtle it is the more attracted you are.”
“If the actor is doing something else while using this product, then that is more effective than
blabbering about the benefits of the product.”
“It looks fake if the scene is just intended for advertising.”
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Exhibit 5d

Summary of the Second Focus Group Conducted at IIM Ahmedabad

A focus group consisted of seven Bachelors of Commerce (B.Com) students from H.L. College of
Commerce, Ahmedabad. They were selected using the screening questionnaire and then invited to
visit IIM Ahmedabad. The group was formed to ensure that there was a good mix of different types of
movie-watchers.

The students were informed that this discussion was part of a market research study, but no details
were given beforehand regarding the topic. Video clips were shown to the participants during the
discussion.
The following is the summary of the focus Group Discussion:
1. People are aware of product placements in movies. When probed about what products
they remember, respondents were able to cite many instances
“Shah Rukh Khan advertises i10 in Rab Ne Bana Di Jodi.”
“In Delhi-6, Abhishek Bachchan takes photos of Taj Mahal with his Motorola phone.”
“Many products are advertised in 3 idiots like Scooty Pep and Samsung phones.”
2. Product placements should be used only after the product is familiar and is recognisable
by the people. Also, sufficient care should be taken to see that the name is highlighted so
that it is not confused with other brands, especially if there is resemblance
“We thought Kareena Kapoor rode a Scooty Pep in 3 Idiots. We never realised it was a Mahindra
Flyte.”
“Motorola was already famous when they used it in Delhi-6. Therefore, we were able to identify it.
People know it even from the logo.”
“I am interested in cars, so was able to identify the Volvo car used in 3 Idiots.”
“I really liked the car used in 3 Idiots, but did not know what brand it was.”
3. Product placements will be more effective and will translate to purchasing intent for
utilitarian products like FMCG and not for hedonistic products like cars and mobiles
“You can buy FMCG stuff easily. You cannot buy mobiles easily. At least youngsters won’t be
influenced by mobile advertisements in movies and go and buy them blindly.”
“In general, we buy mobiles and other pricey stuff after talking to people who have used it.
Experience is the best thing we would rely on, not just advertisements.”
“I think small commodity will be better because everyone can go and take it. Very few people
would do that for a car - just buy it because you see it on television.”
4. The context of the product placement is very important. The consumer should be able to
relate to the context in the movie and the product placement should not look fake
“Bournvita advertisement in Krrish looks very fake. It looks as if the product was shown just for the
sake of showing it.”
“If a product is shown in a setting of youngsters sitting together and having fun, we will relate that
to our lives. Then that product can influence better.”
5. Consumers will recall a product from a movie if some good-quality product is highlighted
in the movie
“I liked the FedEx ad in Runaway Bride because they talk about the reliability of the brand also.”
“In 3 Idiots, the person on the Scooty is taken to the hospital. This is good for the brand as it is
shown doing a good thing.”

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