Film-Based Merchandising - Taking the Movies Home
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : MKTG023
Case Length : 8 Pages
Period : 2002
Pub Date : 2002
Teaching Note : Available
Organization : Archies Greetings
Industry : Films
Countries : India
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Taking the Movies Home case study
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
Simply put, FBM is selling articles that are in some way or another, related to the movie's characters, events and places. They include a wide range of products such as posters, clothing, stationery, toys and other gift articles. The producers of the movie license merchandising rights to manufacturers (independent and/or own) called as licensees...
FBM - The Indian Journey
By 2001, India was undoubtedly the world'
s largest film producing country with over 27,000 feature films and thousands of documented short films (on an average, around 800 films were produced annually) in over 52 languages. As per a study conducted in March 2000 by FICCI-Arthur Andersen, the Indian film industry is expected to grow from Rs 84 billion in 2000 to Rs 340 billion by 20051. Even though Hollywood had been using FBM for a long time, a majority of Indian producers did not seem to be too keen on using it for Hindi and regional language movies...
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What Ails FBM in India?
FBM had not really caught the fancy of the Indian film industry. While most distributors agreed that there was definitely a large market in terms of volume, problems such as the licensing issues were yet to be dealt with.
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The only leading licensed merchandiser in India was Disney with about 40 licences including Weekender Kids, Timex, Cadbury, Parry'
s, Leo Mattel and Funskool, making a wide range of character based merchandise. Import restrictions added to the lack of large-scale adoption of FBM in the country. Apparel, one of the most lucrative categories of FBM does not require very high start-up costs and the entire range can be made and retailed at a nominal price range. A Disney T-shirt could easily be sold for Rs 150-300. However, since manufacturing was so cheap, a thriving grey market had emerged. There were virtually no checks on copyright infringement with apparel, caps, school bags, water bottles and pencil boxes all bearing registered brands... |
Exhibits
Exhibit I: Movie Merchandising in the US and India
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