Marketing Management

Assignment – Film Distribution

WARNER BROS.

Submitted To: Submitted By:Sandeep Kumar Mohanty Sheetal Budhwar

Roll No: 15DM037

Introduction• Warner Bros. Entertainment Inc. is an American Company integrated

with production, Distribution, licensing and marketing all the forms of entertainment and their respective relative businesses.

• Most commonly known as Warner bros., Warner's or WB.• It is the subsidiary of TIME WARNER Company.

Warner Bros. have several subsidiary companies:

• Warner Bros. Pictures• New Line Cinema• Warner Bros. Animation• Warner Bros. Interactive Entertainment• Warner Home Video• Warner Bros. Television• Castle Rock Entertainment• DC Entertainment• WB Television Network• Kid’s WB

Products and Service offered: Motion Pictures Television Programs Video Games HISTORY• Founded in April 4, 1923 by for brothers Albert, Sam,

Harry and Jack L. Warner. • Legacy world-class quality entertainment and technological

foresight with creation of diversified entertainment .• Company foundation - stable management and long-term

relationships with stars and producers and stars .

Market Share Distribution

S.N0 Company Name No. of Movies Released

Market Share

1. Warner Bros. 619 11.14%

2. Walt Disney 510 10.64%

3. Sony Pictures 601 9.42%

4. Paramount Pictures 407 8.54%

5. 20th Century Fox 435 8.43%

6. Universal 398 8.32%

7. Liongate 299 2.56%

8. New LINE 206 2.50%

9. Dreamworks 75 1.65%

10. Miramax 376 1.55%

Company customer• Warner Bros. have created a Media Lab in the U.S. to study

consumer reactions.• They collect data from the consumer and retail panels to

understand it’s customer and needs.• Depending upon the needs, the target sample they want to

analyze traditional reporting methods such as questionnaires (online).

• They also do face to face studies depending upon the issues and needs, especially after a premier in a movie theatre.

• Company customers are the movie lovers, other company who wants to advertise/promote their products.

Company Analysis SWOT Analysis

STENGTHS1. Solid Financial Position (USD 12 Billion Revenue generated in the financial year 2012).S2.Knowledge and Experience regarding production and franchise.

WEAKNESSW1. Overdependence on the home market i.e. U.S.W2. Recent damage to the brand image for being used for infringing cat meme copyright.

OPPORTUNITYO1. Expansion of digital distribution capabilities.O2. Introducing new franchises installments as an attractive profit maximization opportunity.

THREATT1. Losing profits due to piracyT2. Declining in sales of DVDs because of maturization of DVD format of entertainment.

Company Competitor

Universal Studio’sHistory• Universal Studio’s was founded in 1912. It was a vertically

integrated company with movie production, distribution and exhibition venues which were all linked to the same corporate entity.

• Their oversea investments are into their citywalk, hotels, and the park (amusement park) worldwide.

• Their company logo is Creative Future ( Creativity, Innovation, Tomorrow).

Market Share• The overall gross of Film Distribution is $7.443 billion, and the

gross total of Universal Studios is $2,102.7 billion ( this data is according to the January 1- August 23, 2015).

Corporate Objectives Providing premier product facility, focus and attention with

integrity towards providing exemplary services. To support alliances and to exceed any and every expectation

of client.

Financial Analysis In January 2011, Comcast Corporation closed its transaction

( The Joint Venture Transaction) with General Electric Company (GE) to form a new company named NBC Universal and Universal Studios a subsidiary of NBC Universal.

SWOT Analysis

STRENGTHS1. Diversified portfolioS2. Strong brand name

WEAKNESSW1. Single market dependency i.e. USW2. Slow revenue growth

OPPORTUNITYO1. Reaching new audiencesO2. Partnership with online companies

THREATT1. PiracyT2. Fierce competition – cable and satellite stations for ownership and sales.

Recent Developments, Trends

• Their immersive technologically advanced entertainment offered by them in form of 3-D film.

In the summer of 2013, the interior focal point of the theme park profoundly changed with the installation of Universal Plaza i.e. a visually aesthetic 37,000 square foot art deco styled plaza.

• The evolution of Universal Studio’s Hollywood will include the addition of two newly constructed parking structures that combined will accommodate thousand of additional vehicles. Construction on the second parking structure will be completed in late 2015. Another is Multi screen and Mobile Devices, cord cutting and LA Carte Programming.

Company ClimateServing for more than 85 years and striving as a responsible and active corporate citizen. They seek to a positive impact on their employees, communities and audiences worldwide.

Their Corporate Social Responsibility comprises of four components as follows: Creativity Community Sustainability Workplace

Employee developmentCompany value their employees and provide:• Health Benefits• Health Support Programs• Financial Health• life., Accident, and Long Term Disability Insurance• Same Sex Spouse Tax Equalization• Collective Bargaining And Freedom Of Association

CASH COW

RELATIVE MARKET SHARE

CASH COW DOGS

QUESTION MARKSTAR

HIGHHI

GHLOW

LOW

MAR

KET

GRO

WTH

RAT

E

Film Production

Music

Cable TV

Magazine

BCG Matrix

Company Collaborator

• HBO and its sister channel cinemax is the world’s premium television and subscription video on demand.

• Their operating division Turner Broadcasting System Inc. has one of the world’s leading premier portfolio’s of advertising supported cale networks and their related brands while on the other hand Warner Bros. is the leading company producing television programs and film entertainment. Though they are separate businesses but they enthusiastically hold constructive collaboration.

Sector Analysis

• Film distribution is a risky business.• Distributors traditionally funds to bid on film

rights which are being paid to the producers in advance.

• When selecting movies, a strategy is always there to attract widest audience.

• Most big budget films are released in summer when students are out of school and during the winter holidays when families are together.

Scope of Study

The parameters in which company is thinking to operate are:-

• Creating strategy and framework for WB in UK.

• Advising on securing appropriate investment of resources for the implementation of strategy.

• Warner Bros. should distribute 15 to 20 rather than 40-50, including 4 to 6 big-budget films. • The release dates of these movies should be spread throughout the year.• China is the largest international market for box office sales but it’s government only allows 20 – 34 foreign films annually. •The distribution analysis was only available of 2417 movies on which this secondary research is based.

Conclusion

References• www.warnerbros.com• www.wikipedia.com• www.boxofficemojo.com• Articles.economicstimes.indiatimes.com• www.candeadvisory.com• www.universalstudios.com• www.ifsfilm.com• www.the-number.com• www.livemint.com• www.soke.duk.edu• www.radiance.org• www.closingslogos.com