REEL WORLD, REAL MONEY…

The Indian film industry is one of the biggest and highest revenue generating industries in India. The industry is even bigger than Hollywood, as over 800 films are made every year, with approximately 15 million people in India going to theaters every single day to catch a glimpse of their favourite stars. Ever since its inception, advertising in movies has evolved in leaps and bounces, and now it is a full-fledged business which requires management, planning and plotting and most of all understanding of the audience. Over a period of decades, the Indian movie industry has churned out movies, some of them even generating revenues of over Rs100 crores.

Product placement in films refers to the practice of including a brand name product, package or any other trademark merchandise within a motion picture for increasing the memorability of the brand and for instant recognition at the point of purchase. Product placements are commercial insertions within a particular media program intended to enhance the visibility of a brand. These insertions are not meant to be commercial break ups rather an integral part of the medium so that the visibility of the brand increases. Attempts are made for the viewer to read the product or the brand as a quality of the characters using and approving it. Researchers have shown that viewers like product placements (unless there are too many) because they enhance realism, aid in character development, create historical subtext, and provide a sense of familiarity. For marketers, the availability of a captive audience with greater reach than traditional advertisements, and the advantage of showing brands in their natural environment provide motivation for product placements. Brand placements are frequently been used in Hollywood films and have subtly, of late entered in to Indian films.

Well this form of advertising has two aspects to it. Firstly, what’s in their for the movie makers? And secondly, why are marketers and advertisers so interested in this form. Answering the first question, film producers these days do not have the leverage of time i.e the period for which a movie is screened in theatres. No matter how big the star cast of the movie is, it is bound to last in the multiplexes for a maximum of 3 weeks. Needless to say, with a depleting collection at the box office with every passing day. Hence the endeavor of a film maker is to achieve its breakeven as soon as possible. Advertising of brands in a movie provides the film producers an opportunity to earn their investment back even before the release of the movie. Of course it is also complimented by other revenue generating means like television broadcasting rights, music rights, distribution rights, video games and merchandising. A recent example being the blockbuster movie – Ra.One. The movie’s revenue through brands were approximately around INR 52 crores, television broadcasting rights were sold at INR 40 crores and the music and distribution rights were sold at INR 92 crores. When taken into consideration the budget of the movie which was approx. INR 175 crores, the revenue generated from advertising of brands in the movie was close to 30% of the investment. And it’s a vast return considering the fact that the movie hadn’t even released.

The other aspect of advertising in films is why does it interests the brand builders so much. Well this medium of advertising has a minimal distraction for the audience as compared to

other mediums like print, television or outdoor. Audience in the theatre gives their complete attention to the screen for approx. 3 hours. The advertisers leverage on this attention span to subtly incorporate their products into the viewer’s mind. This form of advertising also has a mass appeal. Depending on the movie and the products advertised in it, it appeals to both the literate and the illiterate people. Also the motion picture allows the advertisers to demonstrate the product along with its benefits. And the fact that it usually comes from the star celebrities in the movie, people do get hooked on to it. A movie also enables the marketing honchos to promote their product in the absence of their competitors, thus capturing a major part of their customer’s mind share.

But even this medium has its flip side to it. The biggest worry is its subtleness. As much as it is important for such an advertising to be subtle, there is also a possibility of the products or the brands to go unnoticed. Also it is essential that the product is well blend into the story and then served to customers. It must seem like the dog is waging its tail rather than the other way round. It’s vital as it doesn’t take time for the consumers to alienate themselves. A good example for such form of advertising would be the promotion of brands in Bond movies. From Sony Erricson, Omega to Aston Martin, the brands have remained associated with the character for years together.

The high recall, recognition and positive attitude suggest that brand managers seriously look at product placements in movies as a new vehicle for reaching to customers. However, a number of issues need to be kept in mind. Relevance of product to the situation needs to be created: this is possible by incorporating the placement planning at a script level, as practiced by Hollywood. Respondents expressed concern about the lack of good creative execution. The manager also needs to guard against clutter in scenes: other competing products in the product category should not be incorporated. Well the success of a product placement depends on the success of the movie. But still I believe the growing need for uncluttered advertising and the very existence of film viewing people in this country makes this medium one of the most sought after means in the times to come.

Convenience - A habit worth creating

As I pen my thoughts this time round, the buzz (more than a question) within me is - how essential is convenience becoming today. Is it a habit? If it is, whether it is a good or a bad one? We are no one to judge. But, do I see it as THE most important aspect towards making my product/ service successful? Yes. The word, the habit, the inclination, is so explicitly shown by us that it almost craves to be exploited by the marketers. And here begins the search for the answer to how do I make my offering convenient?

To me there are two aspects to convenience. One is obviously the actual easy of accessibility, something that is termed as Place in all of marketing scriptures and that marketers think that they achieve. I wonder how all the brands claim that they have the right portion of real estate/ digital space when placing their product in a retail outlet or showcasing it online. How much truth lies in it? Or is there place for every product in the market? Then I guess every product must have its own monopoly. That’s certainly not true. So there must be products in the wrong place.

The other aspect of convenience, the more important aspect according to me, is the perception in the customers mind. It is science that convenience is more psychological than actual. In this era of multiple choices, ever thought of how a preferred taste makes an ice cream parlor or a restaurant convenient than it actually is. Another factor that explains the same is how the fear of not getting the genuine product makes a particular druggist or a wine shop more convenient than it actually is.

To accentuate on both the aspects, one of the best example is the world’s most used search engine – www.google.com. When I think of the popular joke that goes around (If it isn’t on the first page of Google search, it doesn’t exist), I feel it is just apt to say that baring the database the major reason for its success has been its convenience. And I ain’t speaking of the convenience it has brought. It’s the convenience of reaching it. With placing it as a home page or being a part of the toolbar on most of the systems, accessing google search is the most convenient process for a person online. But how does google make one feel that it’s more convenient when every other search engine is also a click away? It sort of predicts what the individual wants to know. Not only does it reduce the effort on typing but the searcher has less application in terms of what exactly one wants to know. Google presents the probable options that one might want to know.

The convenience quotient of a product has become so vital that marketers are willing to give away some more shares of their margin to the retailers. And it’s not just the retail stalwarts who get the goods at a reduced price based on their huge purchases but also our local kirana stores. Marketers know that one of the oldest retail channels cannot be underestimated especially with the convenience it provides. HUL has started offering its key kirana outlets with a similar service pack as it does to any other retail giant. One could say that customer convenience has increased the bargaining power of the local retailer today. Hence a premium position in an outlet is of utmost importance for the marketers.

To end this endeavor of putting my thoughts on importance of convenience, it is eminent to every marketer that convenience is the key to succeed in a market where product differentiation is diaphanous and becoming more difficult by the day. It is the point of purchase visibility and the need to stay on top of the mind of the consumer (only then will a product be truly convenient) are the factors that would drive the marketers to reach the darkest of corners in practical and in the consumers mind.