DVD Versus VHS 1.A Quandary for Movie Studios 2.Changes in Movie Pricing 1.VHS Tape: two-tier pricing & revenue sharing 2.DVD: one mass-market pricing ($14.99) 3.Marketing Channel Changes 1.From Blockbuster to Wal-Mart 2.Who has more power over movie studios? 3. Power struggle between W-B and Blockbuster 4. Timing between rental and sale: Different interests

DVD versus VHS 4. Buyer Behavior for Movies 1. When would you “ buy ” instead of “ rent ” ? 2. How much are you willing pay to buy? 3. When would you “ rent ” instead of “ buy ” ? 4. Where would you go to “ buy ” or “ rent ” ? 5. “ People can be conditioned to buy just about any movie they want to see if it is priced low enough. ”  Do you agree?

DVD Versus VHS (Part II) 1.A Problem for Blockbuster 2.Changes in Movie Pricing 1.Past: revenue sharing ($65  $25 + royalty) 2.DVD: one mass-market pricing ($14.99) 3.Marketing Channel changes 1.Power shift from Blockbuster to Wal-Mart 2.Power struggle between W-B and Blockbuster 4. Pros and Cons of selling DVD for BB - Pros: - Cons: Margin

DVD versus VHS (Part II) 5. Can BB compete against Wal-Mart in selling DVDs? 6. New Competition: - Mail Order: Netflix and Wal-Mart*  Hybrid Strategy by BB - TiVo

DVD Versus Cable (Part III) 1.Traditional Way of Movie Distribution 2.Major Change 3.Driving Forces for Simultaneous Release 1.Generic Competition 2.Capitalize on Buzz 3.Efficiency of Cable 4.Detractors for Simultaneous Release 1.Fear of Cannibalization 2.Channel Power issue 3.Piracy Issue 5.What Studios are doing: Test Market*

DVD to Digital (Part IV) 1.Established Business Model of Movie Studios 2.Recent Developments 1.DVD market is saturating 2.Movies are not profitable 3.Confusion about HD-DVD  recent development 3.Responses by Movie Studios 1.Lean Operations 2.More targeted production 3.Migration to Digital Distribution of Movies* 1.Promises: Portability and Easiness to play movie  Efficiency 2.Perils: Piracy 4. Legitimizing Online Downloading 1.Increased Portability by New Devices 2.Downloading on Conventional DVD Players

Indie Movie Distribution (circa 2009): part V 1.In the Past: If you make a great movie, distributors will line up. 2.Now: Distribute it yourself  Play directly to the friendly audience  Direct distribution through pull marketing 3.Why? Economic downturn and tight credit 4.Goal: Prime the pump ex) Anvil! The Story of Anvil 5.Divide up the pie: You pay for distribution, you keep the profit 6.Two websites for doing research on movie industry

Pop-ups are taking over the kitchen 1.What is a pop-up? 2.What are the benefits of a pop-up? -Test new product concept -Market new brands -Engage with customers -Prove your worth -For existing restaurants 3.Meaning of a pop-up as a marketing channel 1.+ Product 2.+ Communication

Vertical Integration (WSJ) 1.Mantra for the last thirty years: Outsource = Vertical disintegration 2.The pendulum has swung back recently 3.Vertical Integration in the past and now 1.Past: Total integration 2.Now: Partial integration or Virtual Integration 4.Why Vertically Integrate? 1.More Control 2.More Adaptability 3.Information and Learning

Vendor-Retailer Relationships at Reebok Sales Organization for Reebok – Customer-based – Region-based Account Management at Reebok – Headquarter-level effort: sell in – Field-level effort: sell through Key for successful relationship: Trust and confidence Channel function issue: sales and negotiation (Push)  face to face