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Spiderman

|CASE ANALYSIS- MARKETING MANAGEMENT II                           |
|CASE-                     MARVEL ENTERPRISE, INC.               |
|SUBMITTED BY:                             Section E   GROUP 11     |
|RISHI GARG (08FN081)                             SANDESH PAHUJA   |
|(08FN087)                   SANJAY DUBEY (08FN088)               |
|SAURABH PRAKASH (08FN090)                                       |

Q. To what extent is success of Marvel due to the success of Spiderman ?

Solution :The company was on the verge of bankruptcy before the advent of Spiderman with net losses of $ 899 million during 2000 and a profit of only 5.3 million during 2001. Spiderman through its first movie acted as a savior for Marvel and then continued to hold the audience’s attention, acted as a cash cow as well as attention magnet towards the concept of superheroes. It also generated an astounding record of revenues for Marvel through other mediums.

Direct benefits

  1) $25 million in royalty from Sony Pictures for Spiderman.

  2) $10 million in advance royalty for Spiderman 2

  3) Increased interest in comics, before special issues sold about 100,000 copies but now they regularly cross 200,000 copies

  4) Before the release of Spiderman movies, Spiderman accounted for a considerable 10% of toy sales but with the release of the movie, sales of Spiderman toys jumped, accounting for over 35% of toy sales with over 1.5 million units sold.

  5) Spiderman game sold over 6 million copies, becoming one of the most success full games ever. This would have generated a lot of royalties for Marvel and also kept the kids hooked to Spiderman.

Indirect benefits

  1) Box office gross of over $ 820 million worldwide and sale of 7 million DVDs. This reflects the colossal amount of publicity the movie would have garnered for Marvel as a whole and aroused the public’s interest in other marvel characters, offerings and products.

  2) Spiderman perceived to be Marvels...