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HSN Initiates Product Placement With Kraft

30 Sep, 2009 Response This Week

ST. PETERSBURG, Fla. – The Home Shopping Network (HSN) will expand its role as a television retailer of clothing, kitchen appliances and jewelry and more to also include promotion of products in its programming.

Starting in October, the network will air a three-minute segment in which an HSN chef will show how to create a recipe from Kraft’s Food & Family magazine using Kraft products. Kraft will be the first of several companies making deals with HSN to showcase products on the network. Previously, the network was known for prohibiting branded entertainment.

Also as part of the deal, Kraft was allowed to display packaging and a list of attributes of Barilla pasta in a cookware sales demonstration. In addition, the network placed the Kraft product in its Web site and featured it in Twitter messages.

For HSN, this is an opportunity for the network to show investors that it can expand beyond its traditional role, especially as sales were down 8 percent in the June quarter to $640 million.

Adding these product placements into segments may help promote the merchandise that HSN is already selling. For instance, putting Kraft foods into programming which sells pots and pants or plates and utensils would actually benefit consumers watching who are looking for a bargain, as well as HSN.

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