Marketing Mix Of Bollywood and 7Ps (Updated 2024)

The Marketing mix of Bollywood analyses the 7Ps of Bollywood which includes the Product, Price, Place, Promotion, people, physical evidence and process of Bollywood. The film industry in India is associated with Hindi films, popularly known as Bollywood. It is not a physical place but is referred to denote the whole package. Bollywood is the largest producer of films in India and one of the largest production centers in the world. It has become the most significant industry for employing people and producing films. In 2014, a total of 1969 films were produced in India, and 252 were from Bollywood. Some of its competitors in the Indian film industry in India are-

• Tamil Cinema
• Telugu Cinema
• Tollywood or Bengali Cinema

About Bollywood

• Type: Film industry
• Industry: Entertainment
• Founded: 1913
• Founder: Dadasaheb Phalke
• Headquarters: Mumbai, India

Bollywood Product Strategy

Bollywood is globally popular because of its movies, which can be divided into mainstream or commercial cinema and parallel or art cinema. The main product of Bollywood is the whole cinema experience it provides its viewers. Most films are entertainment for relaxation, but many reflect and present the changing times and current societal events.

Curiosity about the product is the film industry’s unique way of attracting customers; hence, even the names of movies reflect its feel, spirit, and genre. Besides films, its other products include songs, which help create significant revenues for a movie. Many brands are also promoted through cinema. For example, in the film Koi Mil Gaya, the main protagonist is drinking Bournvita, a health drink, and this helps the drink create further awareness about its brand.

The new Product Mix of Bollywood in 2024 is as follows (Source).

1. Product Width: Bollywood offers various genres to cater to different tastes and preferences. This includes drama, romance, action, comedy, horror, thriller, biographies, historical films, and, more recently, sports dramas and science fiction.
2. Product Length: This refers to the total number of items in the product mix. For Bollywood, this translates to the number of films produced annually. Bollywood is one of the world’s largest centers of film production, with hundreds of movies released yearly.
3. Product Depth: This involves variations of each product (film) offered. In Bollywood, depth can be seen in the different versions of movies, such as director’s cuts, extended editions, or movies dubbed in other languages. It also includes films on various budgets, from low-budget indie films to big-budget blockbusters.
4. Product Consistency: This is related to how closely related the various products are regarding production quality, target audience, and use. Bollywood films are generally consistent in their lavish production values, strongly emphasizing music and dance, a hallmark of the industry. However, there is also variety to cater to niche audiences, such as art films and films focusing more on storytelling without the typical song and dance routines.

Bollywood Place Strategy

Bollywood movies have a worldwide audience, and India has a vast market in nearly ninety foreign countries. Indian movies have generated a cross-cultural appeal that has been felt in places like Russia, Africa, Sri Lanka, Pakistan, Nepal, Bangladesh, Afghanistan, Uzbekistan, South Korea, Japan, China, Egypt, Dubai, the United Kingdom, United States, Brazil etc. In India, Hindi films are distributed to nearly 22 states, with innumerable theatres and screens to display its product as it has a mass appeal in every nook and corner. These halls are either single-screen or multiplexes with added benefits and comfortable settings.

Here’s Bollywood’s place strategy.

1. Domestic Market Focus: Bollywood primarily targets the Indian market, with a significant emphasis on culturally resonant themes that appeal to various linguistic, religious, and regional demographics within India. This strategy ensures a broad and diverse audience base within the country.
2. International Distribution Networks: Bollywood has established extensive distribution networks globally, targeting the Indian diaspora and international audiences interested in Indian culture. Countries with significant Indian populations, such as the USA, UK, Canada, Australia, and the Gulf, are vital international markets.
3. Film Festivals and Awards: Participation in international film festivals and awards is a strategic approach to gaining global recognition and credibility. Such platforms serve as a launchpad for Bollywood films to capture the interest of international audiences and critics alike.
4. Digital Streaming Platforms: Collaborations with digital streaming services like Netflix, Amazon Prime Video, and Disney+ Hotstar have widened Bollywood’s reach, making its content accessible worldwide. This strategy caters to the growing preference for digital consumption of entertainment.
5. Localized Content for Global Markets: Bollywood occasionally produces films or collaborates on projects that incorporate elements appealing to non-Indian audiences, including international casts and shooting locations. This approach helps make Bollywood films more relatable to global audiences, thus expanding its market presence.

Bollywood Pricing Strategy

In India, Bollywood accounts for nearly 43% of the net revenues at the box office. Movies are made with a budget from a few lakhs to a billion rupees. Movies are made with more special effects and professional help as times change. Advertising costs are also very high for a film, which significantly impacts its cost. Still, most movies recover the total cost of money relatively quickly because of the high demand for Hindi movies. The pricing policy of a Bollywood movie is value-added, as the better the movie, the more its income.

Prices of a movie ticket are now also dependent on theatres. A single-screen theatre where audiences are in the lower or middle section keeps the economical prices of its tickets. In contrast, if a movie is shown at a known multiplex, its ticket prices are marginally higher. Low rates or high prices at the end of the day are affordable so that a viewer can quickly come and watch that movie. The higher the sales of movie tickets, the higher the revenues.

Bollywood employs a multifaceted pricing strategy that reflects its market’s dynamic and diverse nature, aiming to maximize revenue while catering to a broad spectrum of consumers and audience preferences. Here are the critical components of Bollywood’s pricing strategy.

1. Dynamic Ticket Pricing: Theatrical releases in Bollywood often utilize dynamic pricing strategies, where ticket prices vary based on factors such as movie popularity, star cast, release timing (weekend or weekday), and type of cinema experience (IMAX, 3D, luxury seating). This approach allows theaters to capitalize on high demand during the initial release period and offer lower-priced options during off-peak times to maintain steady audience turnout.
2. Premium Pricing for Blockbusters: Big-budget films featuring famous stars or high-profile directors often command premium pricing, especially during the first few weeks of release. This strategy leverages the star power and anticipation surrounding such films to maximize initial box office revenue.
3. Tiered Pricing for Digital and Satellite Rights: Bollywood studios adopt a tiered pricing model to sell digital streaming and satellite broadcast rights. High-demand content, such as significant blockbusters or featuring famous stars, is sold at a premium, reflecting its potential to attract a large viewer base on digital and television platforms.
4. Regional Variation in Pricing: Recognizing India’s diverse economic landscape, Bollywood film pricing varies regionally. Ticket prices are often adjusted to match the local purchasing power, ensuring broader accessibility while optimizing revenue. This regional pricing strategy also extends to the distribution of digital and satellite rights, with prices tailored to the specific market dynamics of each region.
5. Value-based Pricing for Overseas Markets: In international markets, Bollywood employs a value-based pricing strategy that considers the local audience’s willingness to pay, which can be influenced by factors such as the size of the Indian diaspora and the local popularity of Indian films. This approach allows Bollywood to price its products competitively, ensuring optimal penetration and revenue in overseas markets.

Bollywood Promotion Strategy

Promotional activities are necessary for Bollywood products as breathing is to the human body. A special team is deployed so that it can undertake the responsibility of marketing that movie. Promotion is a severe issue for every movie. In earlier times, hand-painted posters and billboards were essential marketing tools, but with time, the posters remain, but they are computer prints. Releasing music from the film is also a necessary aspect of Hollywood advertising, where singers, music directors, and others advertise their products for maximum coverage.

Product placement and celebrity endorsement have also found a place in its marketing strategy. Stars, directors, and other prominent artists travel from one place to another to advertise their films. Currently, movie stars popularise their films through several programs on television as the small screen has a more comprehensive recognition presence. Publicists have started using the internet as a medium of advertisement by creating their websites and providing trailers, information, and juicy tidbits about movies.

Some Recent Video ads and Print ads for Bollywood are:

Bollywood People Strategy

The “People” aspect of the service marketing mix in Bollywood plays a crucial role in delivering the entertainment experience and can significantly influence audience perceptions and industry success. This dimension of film marketing includes the visible faces on screen and the extensive network of professionals behind the scenes. Here’s an insight into the “People” component.

1. Talent Diversity: Bollywood is known for its diverse talent pool, including actors, directors, musicians, dancers, and scriptwriters, among others. This diversity is a strength, enabling the creation of a wide range of content that appeals to different audience segments, both domestically and internationally.
2. Skill and Expertise: The industry thrives on the skill and expertise of its workforce, from veteran actors with decades of experience to innovative directors and technicians who bring fresh perspectives and technologies into filmmaking. The constant influx of new talent ensures Bollywood stays current with global cinematic trends while preserving its unique cultural identity.
3. Training and Development: Recognizing the importance of skilled professionals, Bollywood invests in training and development through acting schools, film institutes, and on-the-job training for technical staff. This focus on professional development helps maintain high production standards and fosters innovation in storytelling and film production.
4. Customer Service: The interaction between Bollywood’s professionals and its audience extends to promotional events, film festivals, and social media engagement. Actors, directors, and producers often engage directly with their audience through various platforms, enhancing the overall service experience. The professionalism and demeanor of these interactions can significantly impact audience loyalty and brand perception.
5. Collaborative Culture: The collaborative culture in Bollywood, involving teamwork across different departments, such as production, direction, acting, music, and choreography, is pivotal. This collaboration ensures that every aspect of a film or service provided by the industry is well-coordinated and of high quality, contributing to the overall success of Bollywood films.

Bollywood Process Strategy

The “Process” component of the service marketing mix in Bollywood encompasses the systematic steps and methodologies involved in delivering its entertainment products to the audience. This includes everything from content creation to distribution and feedback mechanisms. Understanding these processes is crucial for evaluating how Bollywood maintains its service quality, product differentiation, and customer satisfaction. Here’s a look at the critical processes in Bollywood.

1. Content Development and Production: The process begins with content development, which involves scriptwriting, casting, location scouting, and setting up production schedules. Production is a complex process that includes pre-production (planning and preparation), production (filming), and post-production (editing, visual effects, and sound design). Each stage requires meticulous planning and coordination to ensure the final product meets the creative vision and quality standards.
2. Marketing and Promotions: Once a film is in its post-production phase, marketing and promotional activities commence. This includes the creation of trailers, posters, social media campaigns, press conferences, and sometimes innovative promotional strategies unique to the film’s theme. The effectiveness of these promotional efforts directly impacts the film’s opening and overall success.
3. Distribution: The distribution process involves determining the most effective way to bring the film to its audience, whether through theatrical release, digital streaming platforms, or satellite rights for television broadcasts. Decisions regarding release dates, geographical reach, and platform selection are critical to maximizing audience reach and revenue.
4. Customer Engagement and Feedback: Bollywood emphasizes engaging with its audience through social media, fan meets, premieres, and interactive sessions. Feedback mechanisms also allow the industry to gauge audience reactions through reviews, ratings, and box office performance. This feedback loop is essential for continuous improvement and adapting to changing audience preferences.
5. Innovation and Adaptation: The Bollywood industry continually evolves, integrating new technologies and storytelling techniques to enhance cinematic experiences. Processes are regularly updated to incorporate advancements in CGI (Computer-Generated Imagery), sound engineering, and digital marketing strategies. Adapting to global cinema trends while retaining its unique cultural elements is a constant process to meet both domestic and international audience expectations.

Bollywood Physical Evidence Strategy

The “Physical Evidence” component of the service marketing mix in Bollywood encompasses all the tangible aspects that customers interact with or experience as part of the entertainment service. This element is crucial in the entertainment industry as it shapes perceptions, enhances the customer experience, and provides a direct tangible connection to the intangible service of storytelling and film production. Here’s how physical evidence plays a role in Bollywood:

1. Movie Theaters and Ambiance: The design, comfort, and ambiance of movie theaters where Bollywood films are screened significantly affect the viewing experience. Luxurious seating, high-quality sound systems, and advanced projection technologies are physical evidence of the quality of Bollywood’s entertainment service. The cinema’s visual appeal and comfort level contribute to the audience’s satisfaction and willingness to return.
2. Merchandising: Bollywood films often extend their presence through merchandise such as clothing, accessories, posters, and collectibles inspired by the movies or their characters. This merchandise is physical evidence of the film and allows fans to own a piece of their favorite cinema experience, strengthening their emotional connection to the film.
3. Promotional Materials: Physical promotional materials, including posters, standees, and flyers, serve as tangible representations of Bollywood films. These materials are crucial for creating visual appeal and generating interest among potential viewers. High-quality, creative promotional materials can significantly impact the film’s perceived value and anticipation.
4. Online and Digital Platforms: While inherently digital, the design and user experience of online platforms like official movie websites, streaming services, and social media pages also contribute to physical evidence in a broader sense. The professionalism and quality of these digital touchpoints reflect on the Bollywood brand and influence audience engagement and perceptions.
5. Event Venues: The venues for film premieres, promotional events, and award shows associated with Bollywood also constitute physical evidence. The grandeur and scale of these events contribute to the industry’s image, showcasing its capability to deliver high-quality entertainment experiences not just on screen but in real-life interactions.
6. Customer Reviews and Social Proof: Tangible feedback in the form of customer reviews, ratings on film websites, and social media buzz is physical evidence of a film’s reception and popularity. Positive reviews and high ratings can enhance a film’s credibility and attract more viewers, serving as a testament to the quality of Bollywood’s entertainment services.

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