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SWOT Analysis of Product Placement in China:

2011/5/6 SWOT Analysis of Product Placement in China By 张艳艳 罗喻


2 Agenda 1. Introduction 2. Research on product placement 3. SWOT analysis of PP in China 4. Conclusion

1. Introduction: What is product placement?:

3 1. Introduction: What is product placement? P oduct placement is a form of advertisement , where branded goods or services are placed in a context usually devoid of a ds, such as movie s , television show s , video game or music video . -----Wikipedia Coke machine in Brokeback Mountain

Development of product placement:

4 Development of product placement Product placement enjoys a history of more than eighty years in western countries and less than twenty years in China. Over one hundred specialized advertising agencies are devoted to product placement (Schor, 2004). Worldwide trend in advertising : over 5.6 billion dollars were spent on product placement in 2010. eg. Transformer: 400million dollars

Why is it so popular?:

5 Why is it so popular? ☺ Audiences' attitudes: audiences become resistent to traditional hard-sell approach psychologically, product placement marketing possesses the power to deliver the message of products and brand information to audiences unobstrusively.

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6 ☺ Economical consideration : P roduction costs for commercials far exceed placements ☺Last-lasting performance: A placement is forever, including the DVD release e.g. E.T. & Reese’s Pieces Reese’s sales increased 65% after the movie’s release

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Types of product placement:

8 Types of product placement Visual: a branded product serves as a prop in the scenery or background Audible: A character refers to a brand by name Use: A character uses a product Integrated: the brand is integrated into the story line. Integrated placements are the most effective

The motivation of the research::

9 The motivation of the research: Product placement is like a double-edged sword. If inappropriatly used, it may result in adverse result. ☺ Focus on the study of product placement in China with the tool of SWOT analysis model.

2. Studies on placements:

10 2. Studies on placements Brand placement had a significant effect on brand image (Reijmeersdal, Neijens, & Smit, 2007) Placements can be effective even if they are not consciously recalled (Reijmeersdal, Neijens, & Smit, 2007) Example: Pontiac sold 1,000 Solstices within an hour after the car was featured on an episode of The Apprentice in April 2005. Pope Benedict XVI wearing Prada shoes

Placements may be overrated:

11 Placements may be overrated “ a lot of the placements are just going to pass people by” Romaniuk, 2008) About 70% of visual exposures were less than five seconds 41% of brand placements in reality shows were ``slightly obscured''

Reactions to placements:

12 Reactions to placements Sheth & Sisodia (2005) 60% of consumers believe that marketing and advertising is “out of control.” However, consumers (69%) report they don’t particularly mind product placements, unless they are disruptive Placements may add to realism, verisimilitude

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13 Strength 2 mandatory acceptance Strength 3 Rapid promotion and spread Strength 4 long-lasting and wide-ranging quality Strength 1 implicit nature Strength 5 stars' demonstrative effect Strengths 3. SWOT ANALYSIS

Strength 1:

14 Strength 1 the most prominent feature an indirect and roundabout way slip into audiences' memory, and get acceptance with positive attitude.

Strength 3:

15 Strength 3 an active, in-depth, flexible, and penetrating marketing approach rapidly promote brand awareness and brand value and spread the core function and new information of the products

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16 Weakness 2 effect can not be predicted precisely Weakness 3 Difficult to measure the effect Weakness 4 inappropriately used may yield negative effect Weakness 1 instability Weaknesses SWOT ANALYSIS

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17 Opportunity 2 growing cost and decreasing effect of traditional direct-selling ads Opportunity 3 possibility of win-win deal between entertaining product producers and merchants Opportunity 4 growing development of movie and TV dramas Opportunity 1 regulative restriction on the time of commercial breaks Opportunities SWOT ANALYSIS

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18 Threat 1 regulative risks Threat 2 threat from new media advertising Threats SWOT ANALYSIS

4. Conclusion::

19 4. Conclusion: Product placement, this kind of n ew marketing model has both strengths and weaknesses and are encountered with big opportunities as well as external threats . Accompanied with its widespread application is potential problems of regulation and evaluation . Especially in China, short history and lack of theories hinder scientific development of product placement.


20 Suggestions: ☺ First is to integrate the content and scenes of the carrier with advertisement appropriately and seamlessly. ☺ Second is to establish impeccable operating institutes and mechanism . ☺ Third is to establish effective assessment system .

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21 Thank you