Film-Based Merchandising - Taking the Movies Home

            
 
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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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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.

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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