marvel enterprises
DESCRIPTION
Our solution to Marvel\'s increasing market power and expanding product portfolio centered around acquiring human and physical capital to vertically integrate the movie production process.TRANSCRIPT
Marvel Enterprises
A plan for sustained growth
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Based on Marvel’s current market position, it needs to
answer two key questions about its future position
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Marvel Enterprises is the number 1 comic book publisher and licenser in the US, ahead of closest competitor, DC Comics. There has been slow to virtually no growth in publishing.
Marvel has experienced an increase in sales and profitability, and now needs to position itself for future.
Should Marvel focus on its core heroes or introduce its lesser known heroes?
Should Marvel invest in more capital-intensive, but potentially more profitable projects?
1 2
We recommend Marvel focus on introducing other heroes
and investing in more capital-intensive projects
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Should Marvel focus on its core heroes or introduce its lesser known heroes?
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Should Marvel invest in more capital-intensive, but potentially more profitable projects?
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Profitability Brand Equity
Growth Potential
1. Build Marvel Universe by introducing new heroes with known heroes. 2. Invest in capital-intensive projects, specifically, movie production.
Licensing has led to Marvel’s rebound and
rapid growth
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1939 1990s 1998 2003
15% increase in market share
20x increase in stock price
Introduction of Licensing
Customers can be segmented by 3 main
product categories
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Publications • Males • 13-23 yrs
• Established
Readers
Toys • Boys • 4-12 yrs
• Collectors (20%)
Motion Pictures • Mass audience
• Beyond
publications
Competitors span across the different
businesses
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• DC Comics (35%) • Smaller industry
distributors (25%)
• Bandai • Hasbro • Mattel
• Warner Brothers • Pixar
• (Incredibles)
Publications Toys Movies
Business Model
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Marvel
Publishing
Licensing – Motion Films
Toys
Licensing – Other Products
Marvel owns Marvel does not own
Currently, the motion picture segment is growing the
fastest, but we only retain 7% of sales
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21.09% 24.51%
14.56%
22%
12%
97%
Publishing Toys Licensing - Movies
Breakdown of Revenue and CAGR (’01-03) by Business
7%
93%
Percentage of Total Revenue Marvel Retains from Box Office Sales
Marvel has to capitalize on the movie production and distribution process.
The Marvel Universe is our greatest strength
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Spider-man
X-men
Hulk
Deadpool
Fantastic Four
Elektra
Iron Man The Marvel Universe
Marvel needs to be a masterbrand, not a house of brands.
Marvel wants to seize the opportunity to
capitalize on Motion Films
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Marvel
Publishing
Motion Films for Core Heroes
Toys
Licensing – Other Products
Marvel owns Marvel does not own
Licensing – Motion Films for Non-core Heroes
Lesser known heroes who find success in movies will
become the future core heroes and be produced by Marvel
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Lesser known heroes
Licensing Phase
Core heroes
Production Phase
If successful
Marvel can leverage existing equity of core heroes
to introduce new content with lesser-known heroes
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Criteria Production Licensing
Gross sales > $250 m < $250 m
Characters Core heroes Team = Core + Lesser known
Audience Mass market Comic book fan base
Goal of movies Introduce audience to Marvel Universe
Discover potential core heroes
The toy market is highly competitive and
driven by volume
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19%
Percentage of Marvel Toy Sales vs Industry 19% Marvel Toys
35% Margins
Marvel is making high margins in a competitive market by licensing.
Publications are not growing at a sustainable rate, but can
contribute as R&D to rising demand for online products
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Marvel is making high margins in a competitive market by licensing.
Marvel Specialty
Stores Consumers
E-Comics
Based on the potential profits Marvel can retain by producing
and distributing films, it should produce
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4.76 21
6.65
57.54
7.28 28.5 16.94
0.07
68
221
95
683
104
296
122
1
Licensing Profits (millions)
Potential Production Profits(millions)
Projected Profit (‘04):
$1.1 b Projected Profit (‘04):
$0.5 b
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Low
M
ed
ium
H
igh
Time
Acquire studio and talent
Develop e-comics
Introduce lesser known heroes into core hero movies
Creation of new characters via publications
Own all movie productions
Develop toy production capability
Thank you! Questions?
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