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Hindi Films  &  Business Predictability ??? Shashin Devsare Mumbai May 2004
Disclaimer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Aim….to arrive at predictable success factors for Hindi Films …..using simple analytical tools, practicable sales & marketing methods/approaches. Basis: Secondary Data + Personal Interviews
Historical Data ,[object Object],[object Object],Period: 2000 – 2004 (5 years) Selection: Top 50 Hindi Films (Revenue Earned Basis)  Data Source: IBOS Network ,[object Object],[object Object],[object Object],Period: 2000 – 2004 (5 years) Selection: 33 Hindi Films (Out of the 50 for  which Budget Figs were available)  Represent 70% of total biz volume i.e. INR 761 crs or US$ 1.7bil http://www.ibosnetwork.com
Key Findings ,[object Object],[object Object],[object Object],Healthy Profitability Trend Predicting  Correct Success Factors = Very High  Profitability INR
Product Segmentation Action/Thriller Romance Drama Comedy Based on predominant factors behind success. Film Plot Based Segmentation Film Treatment Excluded 38% 12% 36% 8% 6% Offbeat Key Plot Idea
Budget (Pricing)  Does Not Give A Clear Idea Budget Based Segmentation Of All 33 Films Up to 10crs is the ideal budget Budget Based Segmentation Of Profit Making Films
Key Product Feature (Hero) ,[object Object],[object Object],[object Object],[object Object]
Key Product Feature (Hero) Clearly Hrithik is No.1 followed by  Aamir, Shahrukh & Amitabh
Distribution (Territories) There are major territories and minor territories depending on the market-size  of the audience for Hindi films there. For the purposes of enumeration, all  territories are rated as a  percentage  of an arbitrary major territory.  Mumbai Territory – 100%   Mumbai Gujrat Western Maharashtra North Karnatka Delhi/UP – 100%   Delhi Uttar Pradesh North India/ East Punjab  – 45%  Punjab Haryana Himachal Pradesh Kashmir Central Circuit – 90%   CP Berar – 40% CI – 20% Rajasthan – 30% Eastern Circuit – 90%   West Bengal – 30% Bihar – 40% Orissa – 15%, Assam – 10% Southern Circuit – 45%   Nizam – 25% Andhra – 7.5% Mysore – 15% T.N. & Kerala – 5% Major Territories Minor Territories Overseas – 100% Simultaneous Release Across All Territories To Enjoy 1 st  Week Benefits !
Launch Timing Not much difference between  releasing the film in Q2 – Q4 period Q1 however is least favored April, June & August are most favored months.
Marketing Plan Three Pronged Marketing Plan  Exhibitors = Cinema Hall Owners Distributor Gains  (Best Price From Exhibitors) Exhibitor Gains (Film runs full house) Producer Gains (Best Price Per Territory  From Distributors) HIT FILM !!!  Generate High Walk-ins Create Value  For Distributors Create Value  For Exhibitors
Marketing Plan 1. Conduct Test film previews with select audience. 2. Share results of test previews & positive audience reactions with distributor. 3. Use historical data to establish plot choice, launch  timing, budget, hero’s selection etc. 4. Offer a profit & risk sharing proposal if necessary. 1. Share film promo plans & budgets. 2. Share increasing walk-ins strategy. 3. In cinema hall promotions. 4. Localized promotional support – news paper inserts. 1. More focus on PR than mass media advertising. 2. Conduct movie based quiz contest/lucky dips in  cinema hall during interval & award lucky winners  “ on stage” in front of the entire audience. 3. Intriguing teaser promos & film’s theme based cross promo tie ups with FMCGs &/or durable companies. Generate High Walk-ins Create Value  For  Distributors Create Value  For  Exhibitors
Successful Film Mix Romantic & Action Oriented Film Made With A budget Of ~10crs Starring Hrithik Distributed & Released Across All Territories  Simultaneously Released  During April,  June or  August Backed with Innovative  & not necessarily High budget Marketing plan Successful & Profit Making Hindi FILM!! =
End

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Bollywood & Business

  • 1. Hindi Films & Business Predictability ??? Shashin Devsare Mumbai May 2004
  • 2.
  • 3. Aim….to arrive at predictable success factors for Hindi Films …..using simple analytical tools, practicable sales & marketing methods/approaches. Basis: Secondary Data + Personal Interviews
  • 4.
  • 5.
  • 6. Product Segmentation Action/Thriller Romance Drama Comedy Based on predominant factors behind success. Film Plot Based Segmentation Film Treatment Excluded 38% 12% 36% 8% 6% Offbeat Key Plot Idea
  • 7. Budget (Pricing) Does Not Give A Clear Idea Budget Based Segmentation Of All 33 Films Up to 10crs is the ideal budget Budget Based Segmentation Of Profit Making Films
  • 8.
  • 9. Key Product Feature (Hero) Clearly Hrithik is No.1 followed by Aamir, Shahrukh & Amitabh
  • 10. Distribution (Territories) There are major territories and minor territories depending on the market-size of the audience for Hindi films there. For the purposes of enumeration, all territories are rated as a percentage of an arbitrary major territory. Mumbai Territory – 100% Mumbai Gujrat Western Maharashtra North Karnatka Delhi/UP – 100% Delhi Uttar Pradesh North India/ East Punjab – 45% Punjab Haryana Himachal Pradesh Kashmir Central Circuit – 90% CP Berar – 40% CI – 20% Rajasthan – 30% Eastern Circuit – 90% West Bengal – 30% Bihar – 40% Orissa – 15%, Assam – 10% Southern Circuit – 45% Nizam – 25% Andhra – 7.5% Mysore – 15% T.N. & Kerala – 5% Major Territories Minor Territories Overseas – 100% Simultaneous Release Across All Territories To Enjoy 1 st Week Benefits !
  • 11. Launch Timing Not much difference between releasing the film in Q2 – Q4 period Q1 however is least favored April, June & August are most favored months.
  • 12. Marketing Plan Three Pronged Marketing Plan Exhibitors = Cinema Hall Owners Distributor Gains (Best Price From Exhibitors) Exhibitor Gains (Film runs full house) Producer Gains (Best Price Per Territory From Distributors) HIT FILM !!! Generate High Walk-ins Create Value For Distributors Create Value For Exhibitors
  • 13. Marketing Plan 1. Conduct Test film previews with select audience. 2. Share results of test previews & positive audience reactions with distributor. 3. Use historical data to establish plot choice, launch timing, budget, hero’s selection etc. 4. Offer a profit & risk sharing proposal if necessary. 1. Share film promo plans & budgets. 2. Share increasing walk-ins strategy. 3. In cinema hall promotions. 4. Localized promotional support – news paper inserts. 1. More focus on PR than mass media advertising. 2. Conduct movie based quiz contest/lucky dips in cinema hall during interval & award lucky winners “ on stage” in front of the entire audience. 3. Intriguing teaser promos & film’s theme based cross promo tie ups with FMCGs &/or durable companies. Generate High Walk-ins Create Value For Distributors Create Value For Exhibitors
  • 14. Successful Film Mix Romantic & Action Oriented Film Made With A budget Of ~10crs Starring Hrithik Distributed & Released Across All Territories Simultaneously Released During April, June or August Backed with Innovative & not necessarily High budget Marketing plan Successful & Profit Making Hindi FILM!! =
  • 15. End