CASE STUDY – Movie Merchandising: Is there a market for it?
Bollywood industry is exploring new vistas of revenue. From overseas distribution, ramp shows to selling merchandise related to movies are used to mobilize the collections. This phenomenon is not new to the film industry. Holly wood movie like star wars was able to sell $9 billion worth of merchandise Indian films are not behind the competition. They just adopted the success formula of Hollywood. The recent movie “Ghajini” sold its merchandise and had its own gaming software.
What is movie merchandising?
Selling the dolls, masks, key chains, kid’s bags, and apparels bearing a movie name to the public is known as movie merchandising. Fans of a particular actor or actress buy this merchandise. Move merchandise helps a film maker in many ways. First, it helps company to recover production costs by giving merchandising license. These days’ bollywood movies are giving merchandise license well before its release. This will ensure guaranteed revenue for the production house irrespective of success or failure of the movie. ‘Sawariya’ though a flop in the box office, was able to recover their cost through selling merchandise. Secondly, Movie merchandise provides word of mouth communication to film before and after its release.
The Indian movie merchandising industry is in a nascent stage. The industry observers feel that there is a great potential for movie merchandising. Many consulting firms, distributors and manufacturers stepped into this arena to tap the opportunity. “Drona” merchandise rights bought by Zapak. It made growth of retail industry has fuelled the potential available for movie merchandising. Retail giant future group holds license with Percept Company and star group to sell the merchandise in its retail stores. Another retail company shopper’s stop boosted their revenue by selling Shahrukh Khan starrer movie “Om Shanti Om” merchandise.
All that is not well
Movie merchandise may be attractive and have great potential but it suffers form certain limitations. Movie merchandise sales are directly linked to its success in the box office. Cartoon network had brought out a range of retail products of Hary Baweja’s “love story 2050”. It experienced drop in sales after lack luster performance. UTV motion also suffers from piracy problems. Companies that bought merchandising rights saw pirated versions are sold in black market form day 1 itself. Rajshri Films had brought our a limited range merchandise of their supper hit movie “Hum Aapke Hain Kaun”, but pirated copies arrived in the market soon affecting the sale of the original products.
Question 1 Do you think that people will buy merchandise related to movies? It yes please mentions the reasons.
Question 2:- Suggest ways to overcome from piracy problems in movie merchandising?
Question 3:- Suggest new type of merchandise that film producers can bring it to the market?
Question 4:- Are you aware of Hollywood movie merchandise? If yes specify how they are different from bollywood merchandise. Do you think that Indian consumer buy Hollywood merchandise?
CASE STUDY 2 — Virtual Retailing – Home Shop 18
Network 18 one of the larges t media power houses in India. It has varied interests in television, print internet, filmed entertainment, and mobile content and allied businesses. Network 18 has significant market share in the broadcasting industry through its channels CNBC awaaz and CNBC TV 18. The company has its fine prints in the internet media through web 18. It is also planning to launch business magazine in collaboration with Forbes. Network 18 recently acquired ‘Informedia’ a well known B2B print and publishing house. It operates in general news and entertainment space with its two premier channels CNN-IBN and IBN-7. The success of new san entertainment channels made the company to come out with regional news channel in Marathi in joint venture with lokmat group.
Virtual Retailing – Home Shop 18
Network 18 in alliance with SAIF (South Asian Infrastructure Funds) is venturing into virtual shopping channel ‘Home shop 18’. The channel is India’s First comprehensive virtual retail business, operating in a multimedia environment including television, web, catalogue other media to reach customers across the country directly. It has merchandise from leading companies and offering at excellent value propositions. To cater to the channel requirement company established logistics centers in 1600 cities and well connected contact enter. The content is prepared in such a way that even lay man can understand the product details given on the TV and web.
New Product Development: strategy
The new product development of home shop is based on the ideas like providing the quality products with no questions asked money back guarantee, free home delivery and customer’ ease in paying for the products. The mode of payment included interest free EMI, Cheque / DD pick up and cash on delivery. Home shop offers products in electronics, health and beauty, home décor and kitchen, kids and toys, jewelry, gifts, services etc. Utmost importance is given to quality assurance and assessment of products. It is also committed to providing cost effective and innovative products to distinguishing consumers across India.
Home shop is commercializing its new product as 24 hour free home shopping channel. It is planning to reach 700 cities with a population of over one lakh. Company is targeting to modern house wife who is pressed for shopping and seeks the pleasure of a convenient and reliable shopping alternative. Company’s Unique selling proposition is to deliver quality products at reasonable prices delivered at one’s doorstep. To cater to the youth segment company offers latest gadgets, cosmetics, apparels and much more. Through this strategy the company is making home shop a shopping platform for the entire family
Question 1:- Do you think that virtual retailing channel will have consumer confidence?
Question 2:- How the company should attract the modern house wife who addict to serials to watch home shop?
Question 3:- Discuss the new product development strategies used in the case?
Question 4:- Do you think Network 18’s segmentation is proper? Comment.
CASE STUDY 3
Café Coffee Day: Drivers of Pricing Strategy
Café Coffee Day is part of India’s largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Ltd (ABCTCL), a Rs. 250- core ISO 9002 certified company and the first to roll out the ‘coffee bar’ concept in India with its first café in Bangalore. Café Coffee Day is India’s only vertically integrated coffee company. Café Coffee Day’s menu ranges from hot and cold coffees to several exotic international coffees, food items, desserts, and pastries. The coffee is attractively priced between Rs. 16/- and Rs. 657 – while food items and desserts are priced between Rs. 151- and Rs. 60/-.
This is attributed to two factors:
a)To make in roads in this emerging market and
b) To more effectively target their market segment of college students and young professionals who have limited spending capacity. This is distinct from Barista whose market segment is more mature with high paying capacity. This explains the more premium price of Barista products.
- Analyze the pricing strategies adopted by café coffee day to establish its own identity amongst its competitors
CASE STUDY 4
Mr. Sharma started the Mriganaini boutique; one –stop ladies wear shop, in 2001. Mriganaini houses an extensive range of ladies wear including ready-to-wear, dress materials, night dresses, etc. All these are available in the latest forms, patterns, styles, and colors .Mriganaini provides stitching facilities to its customers interested in made-to –order apprasel as per their specific preference. This work is done from the latest fashion and embroidery. They also offer machine and hand embroidered clothes. Dress materials bought from here can be stitched at their in-house tailoring and embroidery facility. .Costume, jewellery , and hair accessories are also available to complement the attire. The store also carries cosmetics (Indian and imported), nail enamels, lipsticks and perfumes of all quality companies. Shoppers are provided with personal attention and proper product guidance. Prompt service and the informal atmosphere make shopping at Mriganaini an experience in it. One can get ones dress stitched on the same day, at a very little extra cost, which is of excellent quality.
- Analyze the marketing strategies adopted by Sharma to promote his boutique-Mriganani.
- What steps should Mr. Sharma take to promote the sales