Return to Previous Page

Film Merchandizing in India: Dhoom 3’s Boom

CASE FLYER, MARKETING MANAGEMENT
ET Cases, 5 pages
AUTHOR(S) : Syed Abdul Samad and Dr. Nagendra V Chowdary

Case Preview

Film Merchandizing in India: Dhoom 3’s Boom

 

Expected Learning Outcomes

• Difference between the business and revenue models of Hollywood and Bollywood and the respective revenue sources and trends
• When should a film opt for merchandizing and the factors that contribute towards its success
• Reasons for Indian film industry’s lagging trend in terms of merchandizing and debate the best strategies that could be taken up to improve the state of film merchandizing in India

.............................

..............................

Bollywood: The Business and Revenue Model

1. The accompanying article states that, “The way Bollywood makes its money is vastly different from the way Hollywood does. Further, the way Bollywood rakes in the moolah today is also very different from the way it did five years back”. What do you think are the differences between the way a Hollywood movie makes money and a Bollywood movie makes money? Can you analyze the same from the point of view of the parameters cited in Exhibit I.

2. In Hollywood it’s the studios that rule the roost, while in India it’s the producers and actors (at least in the case of reigning heroes) who call the shots. Does this difference have any impact on the way the movies are made and money is being made thereof?

3..................

Film Merchandizing: The Global Best Practices

1. It all started with George Lucas (Lucas), during the late 1980s. Famously, Lucas, the creator of Star Wars, was said to have earned close to US$ 1 billion from merchandizing and sequel to the Star Wars films. The 20th Century Fox producers chose to sign away the merchandizing rights rather than give away Lucas a pay rise. Lucas benefited from 20th Century Fox’s lack of belief in merchandizing and thus the spinoffs or memorabilia was born to be an alternative source of revenue for films. Since then L&M (Licencing and Merchandizing) has steadily been growing as a revenue stream for Hollywood. What factors do you think have contributed to this meteoric growth?

2. The film merchandizing has been made popular with the likes of Mickey Mouse, Harry Potter, Spider-man, Iron Man, James Bond, Godzilla, Star Wars, Cinderella, etc. Analyze the factors that can contribute to film merchandizing.

3. ............

Film Merchandizing in India: Will Dhoom 3 ’s Boom Last?

1. India has the distinction of producing the highest number of films in a year (for instance, 1,602 films in 2012). But Indians don’t seem to want to take movies home in the form of licenced merchandise or memorabilia. What do you think can be the possible reasons for this aversion?

2. Shahrukh Khan was quoted to have said (when Ra.One ’s merchandise (G-One) was launched by Red Chillies Entertainment), “I have always loved collecting memorabilia of my favourite films and I am hoping that for our films too, if people like them, they should have the option of collecting good quality merchandise”. What kind of memorabilia – toys, games, bags, gadgets, caps, pens, key chains, balloons, upholstery, windscreens, etc., – do you think the Indian audience would like?

3. ............


Exhibits

Exhibit I: Hollywood vs Bollywood

Exhibit II: Film Merchandizing Potential

Teaching Note Preview

Film Merchandizing in India: Dhoom 3’s Boom

 

Synopsis

The case flyer discusses about the evolving trends of film merchandizing in India and the factors that restrains the Indian audience from buying. The accompanying article highlights about two Indian films – Krrish 3 and Dhoom 3 – that have pursued the sales of their merchandize in a significant way. The makers are seeing this as a new revenue stream. However, Hollywood earns 5% of its revenue from film merchandizing; but the Indian film merchandizing market is still in a nascent stage. This case flyer enables a discussion on the revenue sources of the Indian film industry and that of film merchandizing in particular. It also brings in a debate on the factors that are keeping this source of revenue from growing and what practices should the Indian film production houses adopt to popularize Licensing and Merchandizing (L&M) in the country.

Expected Learning Outcomes

  • • Difference between the business and revenue models of Hollywood and Bollywood and the respective revenue sources and trends
  • • When should a film opt for merchandizing and the factors that contribute towards its success
  • • Reasons for Indian film industry’s lagging trend in terms of merchandizing and debate the best strategies that could be taken up to improve the state of film merchandizing in India

 

Positioning and Setting

The case flyer can be used in the following courses:

  • a) Business Strategy
  • b) Business Model
  • c) Advertising and Promotion

 ......................................

Suggested Orchestration

Before the Case Flyer Discussion in the Classroom

a) Students/participants were asked to read Mark Litwak’s article Movie Merchandizing. Reading this article would give them an idea about product placement in films and film merchandizing and how these business models help film studios and film makers in generating revenue.

b) Most importantly, the students were encouraged to analyze all the questions given in the case flyer (either individually or in learning teams or in appropriate discussion forums) to enable them to participate effectively and enrich the learning outcomes.

During the Case Flyer Discussion in the Classroom

This case flyer can effectively be discussed in the classroom under three broad topics.

............

The flow of questions to be discussed in the classroom has been elaborated in Annexure (TN)-I: The Board Plan

I. Bollywood: The Business and Revenue Model

• The class was initiated by asking the students to describe the business model of Hollywood and Bollywood, and the differences between both the models was also discussed. Hollywood follows the studio-based contract model, while Bollywood has individual film-based contracts and is dominated by famous stars and producers.

• Then the class discussed about the revenue models and revenue generating sources in both Hollywood and Bollywood – Domestic Theatre sales, Overseas releases, Home videos, Cable and Satellite rights, Music rights, Merchandize, Digital rights and Mobile companies (from ringtones to video clips). However, ‘domestic theatre sales’ is the dominant revenue stream in Bollywood and others contribute negligibly to the overall revenue.

• The class then analyzed the reasons for Bollywood lacking global penetration and low performance of other revenue streams like DVD or merchandize sale. Bollywood movies are watched mostly by the Indians living abroad and do not attract other global audience. In the domestic market, people like to watch movies in theatres and watching movies online is also on a rising trend rather than on DVDs/CDs. They suggested ways in which Bollywood could enhance revenue generating capabilities of other revenue streams and perform better in these areas.

• The class then applied Michael Porter’s five forces framework, and assessed Bollywood’s industry attractiveness.

...................

Exhibit

Exhibit (TN)-I: Film Merchandizing Potential

Annexure

Annexure (TN)-I: Board Plan

$3.66
Rs 0
Product code: MKTG-4-0010, MKTG-4-0010A

Abstract


This case flyer based on an article1 from The Economic Times, can be used to explore the evolving concept of film merchandizing in India. Film merchandizing is still in a nascent stage in India, while Hollywood earns 5% of its revenue through merchandizing. How does the Indian film industry earn its revenue? How is its business and revenue model different from that of Hollywood? What is the merchandizing potential of Indian films? What would be the challenges for the Indian film industry to succeed in film merchandizing?
The case flyer provides scope for comparing the business and revenue models of Hollywood and Bollywood. It also allows a debate on the factors that contribute towards the making and success of film merchandize. Finally, it focuses on the Indian scenario and offers the scope to debate the factors that restrain the success of film merchandizing in India. This case flyer is suitable for teaching concepts on Business Strategy, Business Model and Advertising and Promotion.



Pedagogical Objectives

  • To understand the difference between the business and revenue models of Hollywood and Bollywood and the respective revenue sources and trends
  • To debate when a film should opt for merchandizing and the factors that contribute towards its success
  • To analyze the reasons for Indian film industry's lagging trend in terms of merchandizing and debate the best strategies that could be taken up to improve the state of film merchandizing in India


1 Malini Goyal, 'Merchandising's Dhoom Moment, but There's No Boom Yet', The Economic Times, December 22nd 2013



This Case Pack Includes:
- Abstract
- Case Flyer
- Analysis


**Electronic downloadable links (PDFs, PPTs, Supplements etc.) are available immediately after purchase. Please use Indian Currency Option (INR) when you are Making Payment within India. "No. of Copies" reflects the number of permissions you intend to use in Classroom Discussions / Corporate Trainings.

No. of Copies
$3.66
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)