Mindanao State University – Iligan Institute of Technology

School of Graduate Studies

The Greatest Movie Ever Sold

A Case Analysis

ARNADO, Celine Carissa T.

CLARABAL, Kathleen Gray T.
ENRIQUEZ, Vanessa May A.
MINDALANO, Bainarih M.
TAJONERA, Rona Shein T.

Social Responsibility & Good Governance

MGT 19

Mr. Anton Cabatingan Jr., MM

March 11, 2019
I. Perspective Held by the Group

Filmmakers play an important role in allowing the use of product placements in their films.
This advertising technique is being questioned regarding its ethicality. Since the film is about
branding, advertising, and product placement practices in the entertainment industry, the group
decided to assess it from the perspective of filmmakers in general, such as Morgan Spurlock.

II. Statement of the Problem

a. Main Problem

● Filmmakers are easily influenced by sponsors because they are being paid.

b. Sub-Problems

● Filmmakers would feel pressure on how they would insert a product in the film. In
some ways, the editorial integrity and creativity of a film may be compromised.

● Filmmakers would get sponsors without knowing the implications of the products
being advertised.

III. Objectives

● To attract viewers through film trailers and increase revenue

● To cover costs through product placement advertising

● To increase film visibility through partnerships with brands

IV. Analysis of Relevant Case Facts

SWOT Analysis

SWOT Analysis assesses both internal and external factors. It is used to identify and analyze
the strengths and weaknesses (internal factors), and the opportunities and threats (external
factors) of an entity (Kenton, 2019).

Strengths

a. Filmmaker

● The influence or impact they leave upon their viewers

 b. Brands

● Product placement allows a company to promote its products to the general public

Weaknesses

a. Filmmaker

● High operating and marketing costs

● The need to look for sources of financing, particularly from potential sponsors

b. Brands

● Product placement may not increase their sales

Opportunities

a. Filmmaker

● Product placement helps filmmakers pay for content creation

● Film companies increase their profit margin by allowing the product placements to
cover part of their expenses

● Continual development of new films and related productions

● A symbiotic relationship may be created with brands

b. Brands

● Product placement creates value to the brands associated with a good film

● Brands can be associated with a certain lifestyle through product placement

Threats

a. Filmmaker

● Product placement can interfere with the plot of the film or movie

b. Brands

● A film that performs poorly may have a negative impact on the brand
5C Analysis

5C Analysis is a framework used to understand and analyze the external and internal factors
that impact the operational capability of a company. It has 5 components: company, collaboration,
customers, competitors, and climate (Winn, 2012). Only components relevant to the case are
presented in this analysis.

Company

Filmmakers or movie production companies use product placement to get sponsorships

from different brands. It helps them raise funds to produce the film. The higher the brands are
willing to pay them, the more the product is visible throughout the film.

Customers

Product placement creates a sense of familiarity for the viewers when a brand is referenced
in a film. The viewers of the film are indirectly influenced by what is being shown, and thereby are
manipulated into buying the product.

Collaborators

In product placement, both the filmmakers and the sponsors are benefited. The filmmakers
can promote their film through the commercials and product packaging of the sponsors, and in
return, the sponsors can also promote their products through the film. An example of this is Amy’s
Kitchen being featured in the film and the film being featured in the company’s pizza boxes.

Climate

The climate surrounding the ethical issue is presented using the PESTLE Analysis which
stands for political, environmental, social, technological, legal and economic factors. Only factors
relevant to the case are being presented in this analysis.

Environmental

The “clean city law” of Sao Paulo does not only eliminates visual pollution but is also
minimizes environmental pollution. As mentioned in the film, the absence of outdoor advertising
has allowed people to see more of nature.
Technological

With the continuous advancement in technology, marketers are able to develop a new field
of marketing called neuromarketing which studies the consumers’ psychological responses to
certain marketing stimuli. It uses medical equipment such as functioning Magnetic Resonance
Imaging (fMRI) to measure changes in brain activities to better understand why consumers make
certain decisions.

Legal

In Sao Paulo, one of the largest cities in Southern Hemisphere, a bill was passed called the
“clean city law” banning outdoor advertising which means that no billboards, banners, and posters
are allowed to be posted within the city.

V. Statement of Strategies and Alternative Course of Actions

● To do research on a brand before considering it for product placement.

● By clearly defining the contracts to show how much power the brands have over the film.

VI. Decision Analysis

a. To research on the brand before considering it for product placement.

Advantages

● The promotion of unethical brands will be prevented.

● By featuring only ethical brands in their films, filmmakers will help raise awareness
of these brands.

● The brands considered for product placement may help create better films.

● Consumers’ perception of brands may improve after seeing it in the film.

● Product placement creates opportunities for lesser known brands to be recognized.

● Consumers may associate a brand to a certain lifestyle.

● The reputation of the filmmakers is protected.

 Disadvantages

● Reduces the list of sponsors after eliminating those that do not meet the criteria.

● May create misunderstanding with brands that have been declined.

b. By clearly defining the contracts to show how much power the brands have over the film.

Advantages

● Limits the brands’ influence on how their product is going to be inserted in the film.

● The filmmakers’ obligations towards the brand are clearly indicated.

● The filmmakers retain creative control of the film. Hence, editorial integrity and
creativity are not compromised.

Disadvantages

● Conditions may arise that may prevent the filmmakers’ to fulfill commitments
resulting to breach of contracts.
● Breach of contract may pose as an additional cost to the filmmakers, thus limiting
the sponsorship of the film.
● The process of creating clearly defined contracts is time-consuming.
VII. Conclusion

Filmmakers should consider discussing and reviewing all elements of the contracts
regarding product placement before agreeing to it. Through thorough discussion and review,
agreements between both parties can be clearly defined and each of their obligations can be clearly
indicated and understood. The process of creating a well-defined contract may be time-consuming
but this will lead to a well-planned and more thoughtful agreement.

Since filmmakers limit the influence of the brands over the film, the visibility of the products
enhances the overall quality of the film at the same time, maintaining its story. The false, misleading
and exaggerated portrayal of the product is minimized. Proper placement of products in the film,
improves the flow of the film, thus attracting more viewers and thereby increasing their profit.
VIII. Recommendations

Every filmmaker has a vision for each film they produce. This should not be compromised
for the sake of product placement. This section will provide clauses that may be added in a product
placement agreement to help clarify the boundaries in the film production.

At the minimum, a filmmaker should make sure to include in the contract the products to be
featured, the number of products, the agreed price to be paid by the sponsoring company, and the
payment terms. The agreement should also include how the product is to be featured in the film,
including other details such as absence or inclusion of close-ups, and product duration. The manner
of how the film producer will be able to credit the brand at the end of the film should also be clear,
and whether competitors’ products can be featured in the same film.

The filmmaker and the sponsoring brand must reach a consensus regarding the product's
exposure. Both parties must have a common goal in mind, and that is to preserve the creative
essence of the film. A film with positive feedback will reach a wider audience. This will not only
benefit the filmmaker, but also the sponsoring brand itself.

References

Kenton, W. (2019, February 27). ​SWOT Analysis​. Retrieved from Investopedia:

https://www.investopedia.com/terms/s/swot.asp

Legal Guidelines for Including Product Placement in Your Movie or Television Series | Law
On The Runway. Retrieved from
http://lawontherunway.com/blog/legal-guidelines-including-product-placement-m
ovie-television-series/

Winn, M. (2012, February 2). Situation Analysis Continued – The 5 C's. Retrieved from
Volusion: https://www.volusion.com/blog/situation-analysis-the-5-cs/