This document discusses the 2006 independent film Kidulthood and its production, marketing, and distribution. It was the first film produced by Stealth Films on a minimal budget of £600,000. It was advertised on Facebook and first released in independent cinemas, making £76,200. After the success of the sequel Adulthood, Kidulthood was re-released and distributed more widely, opening in America and profiting £400,000 its first weekend. The document also provides definitions and examples of concepts like horizontal and vertical integration, synergy, and above and below the line marketing.
In today’s business world company has in place a strategic plan.
The strategic plan is formalized road map that defines how the organization implements the selected strategy.
A plan spells out where an organization is going over the next year or more and how it’s going to get there.
Having and working with the right strategic tools can give a clear picture of the opportunities available and dangers to prepare for.
Case Analysis
Started out as a cartoon studio later became Disney Brothers studio which was a flat, non-hierarchical organisation.
After release of snow white, company grew 7 fold, and went public to finance their growth strategies
The decline caused by war slowed down growth and resulted in financial constraints
Diversified into WED, theme parks, cruise ships, in-house media, in-house travel company
Smart or Dumb ?
Disney has expanded domestically as well as globally through corporate integration. It has shifted its focus from show quality and content to distribution, marketing, licensing and merchandising arrangements to respond to industry changes and replace lost revenues.
Globalization: Disney products can be found all over the world in different forms and areas. As a global brand, Walt Disney international provides oversight of company’s activities outside US. The aim was to increase globalization to make it relevant to consumers world wide.
Horizontal Integration: Disney owns many studios, media networks and consumer product companies. It uses this strategy to increase its market awareness and presence through cross promotions.
Vertical Integration: The sub companies allow Disney to plan, produce, advertise and distribute all the products. It does not have to rely on anyone and hence has a better control on quality, content and costs.
Media Synergy: production and distribution of products can be done by the Disney owned companies. An important factor of its success is the integrated nature of its products.
Diversification: Disney has always focused on diversification. The variety of products and services ranging from movies, theme parks, shows, merchandise; all offer a range for the tastes and preferences of consumers of all ages.
Distribution: whenever Disney produces a new image or brand such as a movie character, its licensing, marketing and business outlets continue to capitalize on that character till it has left the box office. It releases a line of toys or products followed by DVD release and the character’s presence in theme parks.
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3. Independent film, directed by Menhaj Huda
First film from production company (Stealth Films) so the
company had no reputation.
The film received a minimal funding budget from the UK Film
Council.
Huda’s financial target was £800,000 (production, marketing,
distribution) but reached £600,000 due to a limited target
audience, unknown cast and ‘teen-film’ genre with controversial
themes.
Kidulthood (2006)
https://www.youtube.com/watch?v=mdoKD4gTQ2c
4. Was advertised specifically to a teenage target audience through
Facebook - limited merchandise options.
Distribution Company – Revolver
First released in independent cinemas (Stratford Picturehouse)
with 20 copies and made £76,200
After the successful sequel Adulthood, Kidulthood was re-
released and distributed around America resulting in a much
larger profit. Opening weekend profited £400,000.
Kidulthood (2006)
5. There are two types of media ownership. Independent films & Blockbusters
(multi-national).
These multi-national companies can be
Horizontally Integrated: ACROSS
OR
Vertically Integrated: DOWN
Integration
6. A production company expands into other areas of one industry. It is
shared ACROSS.
The company can develop in a particular area of production or they can
buy out another company that deals with these areas.
EXAMPLE – Casino Royale
Casino Royale was mostly made by Sony.
Sony owns companies such as Columbia pictures, however other companies
were involved in the production such as MGM.
This means that Casino Royale used horizontal integration because it expanded
into other companies during the making of the film.
Horizontal Integration
7. The production company has complete ownership of the production,
distribution and exhibition of the film.
It is all passed DOWN.
They receive all of the profit – Brand Identity
EXAMPLE - Walt Disney Studios Motion Pictures
Walt Disney Productions
Walt Disney Studios
Walt Disney Distribution (Buena Vista)
Walt Disney DVD/Bluray Walt Disney Toy Store Disney Land
Vertical Integration
8. Did Iron Man 3 use Horizontal or Vertical Integration?
Why? What are the advantages/disadvantages?
Think about the companies that produced, marketed,
promoted and distributed the film.
Iron Man 3
9. Synergy is the promotion and sale of a product within films –
Product Placement
Examples of this would be soundtracks, phones and laptops,
cars.
Iron Man 3 – Audi Cars, Verizon flat panel televisions,
James Bond Franchise – Watches, cars, laptops
There are many advantages to using synergy in films. It can
increase the profit made on the film enhances the company
image and influence public opinion.
synergy
10. ‘Above the line’ – trailers, TV/Poster
campaigns, materials released to cinemas.
This is the most direct way to reach an audience.
‘Below the line’ – marketing is more subtle. Indirect
forms of publicity such as press coverage,
merchandising.
This is valuable to films as they build social interaction.
Marketing