Product Placement in Bollywood Movies

Bhawana Chawla
Research Scholar, IASE Deemed University, Gandhi Vidya Mandir, Sardarshahr, Rajasthan, India

Dr. Satyam Pincha

Assistant Professor Department of Management, IASE Deemed University, Gandhi Vidya Mandir,
Sardarshahr, Rajasthan, India

ABSTRACT
Product placement is a strong brand-building tool for the changing media landscape that furthers
existing marketing objectives. It is a cost effective means of gaining global media exposure with
unlimited viewer impressions also it is a unique way to familiarize consumer with brand and product
lines and connect to customers with the added benefit of association with blockbuster film, hit TV
show, and/or celebrity. The advertising and marketing industry worldwide is in the throes of a serious
problem. It is becoming increasingly difficult to grab eyeballs and break through the clutter. The
average consumer is bombarded with messages every second which has led to him becoming immune
to any sort of communication attempt being made by marketers. The resistance shown by the
consumers has forced advertisers and marketers to think beyond conventional means of advertising.
This is where product placement comes into the picture.

Product placement refers to the practice of including a brand name product, package, signage or other
trademark merchandise within a motion picture, television or other media vehicles for increasing the
memorability of the brand and for instant recognition at the point of purchase. Media planners and
brand marketers are looking for alternative media vehicles to reach at customers with a distinct
message so that the memorability of the message and hence the brand name increases. This is a
growing trend in Indian films for various reasons. This study looks at the relatively new practice of in-
film advertising in popular Hindi films. Acknowledging the impact of popular films and iconic stars
since the 1940s and 50s on styles, trends and ideology, the paper explores how this powerful medium
is now being used for product placement and brand endorsement in India.

KEYWORDS
Advertising, Brand Building, Brand Endorsement, In-film placements, Product Placement.

1. INTRODUCTION
As we all are aware that in today’s market, there is extensive brand proliferation and marketers need to
resolve to unique methods in order to reach to their target audience. Some of these methods are SMS
marketing, Internet activities blogging, Advergaming and the latest trend is that of hyper-
commercialization: broadcast media tied up with commercials, branding of various products by
placing them within films or television serials. They need to make that emotional connect with the
consumers in different ways; it has to be something wherein the customer can experience the brand
and yet not feel it to be obtrusive and in-your-face.

Appealing to the rising affluence of Indian audiences, branded goods are most likely to appear in films
such as high-end luxury consumer goods like mobile phones, cars and motorcycles. Realizing the
potential of celebrity endorsements and the advantages of in-film placements, the advertising industry
views movies as the optimum medium for building brands. Equally, the film industry is happy to
accommodate in-film advertising as it serves to defray production costs, as well as the costs of

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marketing and promoting films. This trend, which is likely to grow, encourages consumerism through
consumption in a growing market economy.

This research study highlights the basic reasons for placing products and brands in films with special
reference to Hindi films and the effectiveness of these placements as a tool for enhancing the recall
value of the brands in the long run. This paper proposes a category of placements that can be used by
brand marketers to put their brands in the films and identifies the caveat for putting the brands in the
films. This has implications for both academicians and practitioners who include the advertising
agency people, the media planners, and the brand managers, the film scriptwriters and producers for
developing strategies to increase the use of product placement as a tool for brand communications. The
paper also highlights the future research directions in this area for Indian brand managers and
academicians.

2. LITERATURE REVIEW
Salmans (1981) in his paper “Selling via the Movies” stated that the specialized firm has the toughest
job of carefully reviewing the script and the scenes to be posturized to locate the appropriate context
for placing a specific product.
Marshall (1998) in his study “Product Placement Worth More than Its Weight” found out that product
placement was utilised as a part of overall advertising mix by approximately 1000 brand marketers in
1998. This finding seemed to be a colossal number in 1998, however, further estimations by various
authors reveal that even more number of companies have been starting to implement product
placement as their marketing strategy since that time.
Brennan et al. (1999) in their study “The influence of product-placement type and exposure time on
product-placement recognition” explained that the whole idea of the product placement in movies was
originated due to producer’s effort to increase the reality of movies by adding to them real brands and
products. However, once products started appearing in movies it was followed by increase in sales for
that particular product and it caught marketers’ attention as a new promotional channel.
Panda (2001) in his paper “Effectiveness of Product Placements in Indian Films and its Effects on
Brand Memory and Attitude with Special Reference to Hindi Films” highlights the basic reasons for
placing products and brands in films with special reference to hindi films and the effectiveness of these
placements as a tool for enhancing the recall value of the brands in the long run. This paper proposes a
category of placements that can be used by brand marketers to put their brands in the films and
identifies the caveat for putting the brands in the films.
Nelson et al (2006) in their study “Brand placements Bollywood style” stated that the globalization of
media allows brand placements subtle ways to reach local and international consumers. This study
examines Indians’ responses to brand placements in a Bollywood film. Film involvement showed an
adverse effect on brand recall, while brand consciousness had a positive effect.
Kripalani (2007) in her study “Trendsetting and product placement in Bollywood film: Consumerism
through consumption” stated that the film industry is happy to accommodate in-film advertising as it
serves to defray production costs, as well as the costs of marketing and promoting films. This trend,
which is likely to grow, encourages consumerism through consumption in a growing market economy.
Neijens et al (2007) in their study “Effects of television brand placement on brand image” analyzed
that the effects of television brand placement on brand image. As people watched more episodes, the
brand image became more in agreement with the program image. These results confirm the
applicability of learning and human associative memory theories to brand placement.
Yang et al (2007) in their study “The Effectiveness of Brand Placements in the Movies: Levels of
Placements, Explicit and Implicit Memory, and Brand-Choice Behavior” stated that the Product
placements within a movie are often treated as a binary variable: either they are present or absent. The
influence of 3 different levels of brand placements on explicit and implicit memory for the brand,

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implicit choice behavior, and attitudes toward the brand were examined. The results confirmed that
levels of brand placements influence recognition of the target brand and attitudes toward the brand.
Williams et al (2008) in their study “Product placement effectiveness: revisited and renewed”
examined product placement in terms of definition, use, purposes of product placement, specific media
vehicles, variables that impact the effectiveness of product placement, the downside of using product
placement, and the ethics of product placement.
Homer (2009) in his study, “The impact of placement type and repetition on attitude” suggested that
the type of placement (subtle/prominent) and repetition (low/moderate) interact to impact brand- and
placement-related judgments. Specifically, repetition of prominent placements for known brands has a
negative impact on brand attitude. For subtle cases of product placement, however, consumer attitudes
are relatively positive and moderate levels of repetition have little incremental impact. In addition,
findings suggest that studios ought to evaluate placement options carefully, as repetition of prominent
placements may lead to reduced affect for their productions, thereby fueling a decline in their
audiences. Theoretical and practical implications are offered.
Wiles and Danielova (2009) in their paper “The worth of product placement in successful films: an
event study analysis” found that the implicit endorsement by an important movie character through
touching, holding, consuming or mentioning a brand increased the likelihood of abnormal stock
market returns for the placed brand.
Bressoud et al (2010) in their study "The Product Well Placed: The Relative Impact of Placement and
Audience Characteristics on Placement Recall" dealt with a similar topic, discovering products that
were integrated within the plot of a movie were shown to be better remembered than those that are not
well integrated with the plot of a movie. However, this study also found that this does not hold true if
there are more than one product placements shown at a time. Furthering this, they discovered that
product placements connected to the storyline were recognized most often by the viewer, compared to
products that were used by the main character were remembered second most, and products in the
background were remembered least often.
3. TYPES OF PRODUCT PLACEMENT
Product Placement can be categorized in under two types. These are as follows
1. Active placement- means the product is actually used and talked about by the film
stars in the movie. In the movie Chalte Chalte actor Shahrukh Khan acts as a truck driver, he
uses Castrol GRB engine oil for his trucks.

2. Passive placement- means the product or signage is visually placed in the

background in some scenes or song sequence of the movies. ICICI bank is featured in the
movie Baghban.

4. REALISM AND PRODUCT PLACEMENTS IN FILMS

Film producers argue that the use of a brand name product in a film enhances the realism, due to the
fact that it lends a natural everyday touch to its settings. To depict a film character entering a
restaurant, a store or petrol station with no names attached to them would be meaningless. Product
placements strengthen a film’s link to real life. Product placements therefore add realism and
authenticity to scenes in films. It is further argued that the use of products that consumers are already
familiar with, increases the credibility and power of the film as something the audience can identify
with. It is argued that real life products placed in films have a higher credibility than that of paid
advertisements due to their perceived realism. Placing a brand name product within a film gives
products an intensified sense of realism. The use of generic products in a film can draw attention
away from the film’s message. It makes sense for films to use branded items.
Due to the fact that the audience eats, drinks, wears and drives brand name products, the use of these
items can assist the film by invoking a certain time period or creating the feel of a specific location.
Another reason product placements are useful is that they often reinforce a film character’s
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personality or history. Unlike traditional advertising messages, product placement also provides a
venue where products can be realistically portrayed, and possibly demonstrated in the context of a
film scene.
5. CONSUMER RECOGNITION OF PRODUCT PLACEMENTS IN FILM
Product recognition can be seen as a person’s ability to identify a product name in a film. For a
product to be effectively recognised in a film, it should have a reasonable length of exposure time as
well as having a well-integrated placement such as audio, visual or audio-visual. Product recognition
depends significantly on the objective and subjective nature of product placements in media such as
film. Berglund and Spets state that research has established product placements as an effective
marketing communication tool that has the ability to enhance brand recognition by consumers.
Recognition is an advertising effectiveness test that involves showing a respondent an advertisement
to determine if he or she has seen it. Recognition tests measure consumer recognition of an individual
advertisement. Recognition tests are typically used to measure the effectiveness of the advertisement.
If an advertisement is considered to have high recognition, it is assumed that the advertisement is
effective. A research by Gupta and Lord has shown that recognition will be higher when a product
placement includes both an audio and a visual compared to that of only a subtle visual usage. A
prominent visual product placement is where a product is easily identified by its position and size and
when it is included in a major scene within a film. A subtle visual product placement has a limited
time of exposure and is often used as a background prop without audio reinforcement. This research
attempted to evaluate the recognition a film viewer had when viewing a product that is placed more
prominently.

6. PURPOSES OF PRODUCT PLACEMENT

Product placement can be very useful. Ultimately, product placements among entertainment firms,
corporate brands, and agencies are all monetarily driven, either directly or indirectly. At the very
least, entertainment firms and independent production companies are hoping to reduce their budgets
so that more money can be invested elsewhere.
Its purposes include achieving prominent audience exposure, visibility, attention, and interest;
increasing brand awareness; increasing consumer memory and recall; creating instant recognition in
the media vehicle and at the point of purchase; changing consumers' attitudes or overall evaluations
of the brand; changing the audiences' purchase behaviors and intent; creating favorable practitioners'
views on brand placement; and promoting consumers' attitudes towards the practice of brand
placement and the various product placement vehicles. As noted by van Reijmersdal, Neijens, and
Smit, a substantial part of the effects and interactions of product placement is still unknown.
Purposes of the product placement can be summed as below
1. To achieve prominent audience exposure, visibility, attention, and interest Product placements can
have a significant effect on message receptivity.

2. The sponsor of product placements is likely to gain goodwill by associating itself with a popular
program targeted to a specific audience. The more successful the program, the longer shelf life of the
product placement. More frequent viewers and viewers who enjoy the program pay more attention to
product placements. Brands need to be visible just long enough to attract attention, but not too long to
annoy the audience.

3. To increase brand awareness. Nielsen Media Research has shown that product placement in
television shows can raise brand awareness by 20%. Tsai, Liang, and Liu found that higher brand
awareness results in a greater recall rate, more positive attitudes, and a stronger intention of buying.
When brand awareness is high, a positive attitude toward the script leads to a higher recall rate. Also,
when a brand gains a certain level of awareness, the more positive the attitude towards product
placement, the stronger its effect on recall rate, attitude, and intention of buying. However, when

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product/brand awareness is not high enough, consumers typically fail even to remember the names of
the advertised products.

4. To increase consumer memory and recall of the brand or product placements. For example,
memory improves when visual/auditory modality and plot connection are congruent. It is found that
viewers can correctly recognize and recall placed brands in movies, using aided recall measures and
free recall measures. Also, brands placed prominently in a movie scene enjoy higher brand recall than
those that are not. Verbal and visual brand placements are better recalled than placements having one
or the other. In addition, showing the brand early and often with at least one verbal mention enhances
brand recall. Also, sitcoms rather than reality shows tend to spark better recall for product
placements. Product placement upholds brand salience or the order in which brands come to mind. It
was noted that to build brand salience, product placement strategies should focus on how a product
can explicitly convey the product’s superiority, durability, performance, and specification. That is,
marketers should focus on how a product can be noticed, even if it is perceived as artificially inserted
for commercial purpose. As such, marketers need to give as much attention to product placements as
they do to the insertion of commercials into a television program.
5. To achieve higher brand salience, it was found that products should be placed more in negative-
context programming than in positive ones and should not excessively interfere with the plot. In
addition, Gupta and Gould found that greater recall can be obtained by smart placement of product
placements in game shows, in particular, placements that appear at the beginning of a game show
command higher recall. Brand recall is typically no higher than 30%. Or, as summarized by van
Reijmersdal, “Prominent brand placement affects memory positively, but affects attitudes negatively
when audiences are involved with the medium vehicle, when they like the medium vehicle, or when
they become aware of the deliberate brand placement.”

6. To create instant recognition of the product/brand in the media vehicle and at the point of purchase
Product placement can have a significant effect on recognition. Familiar brands achieve higher levels
of recognition than unfamiliar brands. In addition, product or brand placement recognition levels
received from audio-visual prominent placements exceed the recognition rates achieved by visual-
only. Some 57.5% of viewers recognized a brand in a placement when the brand also was advertised
during the show. That number is higher than the 46.6% of viewers who recognized the brand from
watching only a television spot for the brand. While prominence of the placement leads to increased
recognition, if the placement is too long or too prominently placed, viewers might become suspicious,
elaborate on the commercial purpose of the placement, counter-argue, and form negative attitudes. In
addition, star liking, cognitive effect, and pleasure affect recognition for product placements.
Specifically, brand recognition due to product placements increased 29% during highly enjoyable
programs.

7. To bring desired change in consumers' attitudes or overall evaluations of the brand. The influence
of product placement on attitudes, preferences, and emotions toward a product or brand has not been
researched very much. With this in mind, however, no differences have been found in viewers'
attitudes toward a product or brand. On the other hand, initial evidence suggests that consumers align
their attitudes toward products with the characters' attitudes to the products. In addition, this process
is driven by the consumers' attachment to the characters. Argan, Velioglu, and Argan suggest that the
audience pays attention to and accepts brand placement in movies and takes celebrities as references
when shopping. However, the movie should not be over commercialized. At the same time, initial
studies find that attitudes toward product placements do not differ based on gender, age, income, or
education. However, as discussed later, more recent studies have found differences. Authors van
Reijmersdal, Neijens, and Smith have found that as consumers watch more episodes, the brand image
becomes more in agreement with the program image. This confirms that learning and human

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association memory are important to brand placement. It also has been noted that product placements
on emotionally engaging programs were recognized by 43% more viewers.
8. To bring a change in the audiences' purchase behaviors and intent. Product placements are
associated with increased purchase intent and sales, particularly when products appear in sitcoms, for
example, Ally McBeal in Nick and Nora pajamas, Frasier and Friends in Starbucks and New World
Coffee, and Cosmopolitan martinis in Sex and the City. In one example, Dairy Queen was featured on
The Apprentice. The contestants needed to create a promotional campaign for the Blizzard. During
the week of the broadcast, Blizzard sales were up more than 30%. Website hits also were up
significantly on the corporate and Blizzard Fan Club sites as well as the Blizzard promotional site.

9. To create favorable practitioners' views on brand placement. Practitioners' views on product

placement generally are favorable or else the product placement market would not continue to
increase. Practitioners remain positive about product placements as long as no harm is done, sales and
brand image go up, and consumers are positive about the product and brand. Also, product
placements help the practitioner make up for an increasingly fragmented broadcast market due to
technology such as TiVo and DVD recorders.

10. To promote consumers' attitudes towards the practice of brand placement and the various product
placement vehicles. In general, attitudes toward product placement are favorable across media types.
Additionally, viewers tend to like product placements as long as they add realism to the scene. It was
found that viewer enjoyment of product placements actually increased for media vehicle versions of
product placements where products were an integral part of the script. Also, product placements are
preferred to fictitious brands and are understood to be necessary for cost containment in the making
of programs and movies. People with more fashionable and extroverted lifestyles typically have more
positive attitudes toward product placement.
Sung and de Gregorio found that college students’ attitudes toward brand placement are positive
overall across media, but that brand placements in songs and video games are less acceptable than
within films and television programs. So, marketers need to take into account the appropriateness of
the specific genre of the particular media program into which they intend to place brands. Non-
students are more neutral toward the practice than students. In general, consumers are positively
disposed toward product placement, value the realism of the ad, and do not consider the ad to be
unethical or misleading as long as the product is not ethically charged, for example, alcohol. Also,
while there is a general positive perception of the practice overall, there are reservations regarding the
insertion of certain ethically charged products such as firearms, tobacco, and alcohol.
Also, if brand image is positive, then consumers' brand evaluations toward the product placement
seem to be more. Older consumers are more likely to dislike product placements and more likely to
consider the practice as manipulation. Overall, the managerial implications have been stated
eloquently and succinctly by van Reijmersdal, Neijens, and Smit. ‘To create brand placements that
are positively evaluated, they should be placed within programs, movies, games, or magazines that
are involving for the audience’. To increase brand memory, brands should be prominently placed and
be accompanied by an actor in films or television programs. Brand evaluations can become more
positive when the placement is more editorial instead of commercial and when non-users of the brand
are reached. Behavior and behavioral intentions are influenced best when the audience has positive
evaluations of brand placement, when placements are presented in editorial formats, and when
placements are repeated
FURTHER RESEARCH
No one objects to the placement of products in movies through the covert advertising route as
long as it helps the marketer to increase its sales volumes, the movie producer to reduce its
production cost and the movie viewer to take informed buying decisions concerning the product /
brand placed through the movie. However, product / brand placement through movies whether

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covert or overt has a flip side to it – the marketer and the movie producer may individually or
jointly use the film to promote ethically charged products like cigarette and alcohol. It is not
possible to promote such products in the usual manner because of the applicable laws.

However, by promoting the product / brand in films through the covert advertising, the marketer
and the movie producer manage to stay on the right side of the law even if they are violating it.
In other words, they violate the spirit of the law though not the letter of the law. The regulatory
regime has to be more vigilant to fix this loophole.

CONCLUSIONS
The study indicates that brand placement in Hindi films are effective. The high recall, recognition and
positive attitude scores suggest that brand managers are seriously looking at product placements in
movies as a new vehicle for reaching to consumers. As the Indian economy develops a global
perspective, Bollywood needs to follow suit. More importantly, as Indian audiences become
fragmented into class specific segments, marketers are faced with the more difficult task of
communicating their brand messages. Effective and well thought of product placement appears to be
some solution.

The research results indicate that consumers are aware about product placement being a method of
advertising. They are influenced by the placements and have bought products that had been placed in
movies and other media. Thus product placement seems to have gained acceptance as a form of
advertisement and can be continued to be used. Also, most do not feel that product placements are
irritating and interrupting the flow of the movie. People are generally expressing a positive attitude
toward product placement and are influenced by it. A conclusion drawn from the research was that
products placed prominently in films were better recognized than those placements placed subtly
within the context of the film. Another aspect closely considered in this research was the effect product
placements have on the realism of the film. However, several issues need to be kept in mind. The
brand managers’ needs to guard against the clutter in the scenes- other competing products of
product category should not be incorporated. The brand managers however, should pre-test the
placement to determine the exact level at which viewer irritation sets in.
As success of brand placement is dependent on the success of the movie and consequently, its reach,
it is not possible to evaluate placements from a sales generation perspective. More importantly, as
Indian audiences become fragmented into class specific segments, marketers are faced with the
more difficult task of communicating their brand messages. Effective and well thought of product
placement appears to be some solution.

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