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Explore the comprehensive research areas, resources, and strategic analyses of the CTHE Research Department and its role in the entertainment industry.
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Research Department Brady Darvin, Research Manager
CTHE Organizational Structure 2 CTHE Research Dept.
CTHE Research Personnel • Brady Darvin • Oversee all domestic research needs of CTHE • Primary contact with all CTHE senior executives & outside research vendors • Liaise with other SPE & SCA divisions • Manage 2 analysts, 2 Nielsen on-site consultants • Paul Jones • Quantitative analyses • Interpretation of data, trendspotting 3 CTHE Research Dept.
Secondary Research: Major Resources • Nielsen VideoScan (retail POS data) • VidTrac (rental POS data) • Nielsen Entertainment Marketing Solutions (MarketNavigator geodemographic system) • Understanding & Solutions (International) • Industry Estimates & Trends (Domestic) • Alexander & Associates • Adams Media Research • Nielsen Entertainment Index • Consumer Electronics Association 4 CTHE Research Dept.
Secondary Research:Databases/Subscriptions • Lexis-Nexis • for due diligence, industry & title-specific news monitoring • IMDB Pro • Subscription version of the Internet Movie Database (BO revenues & production info) • Publications • Video Store, Video Business, Variety, Discount Store News, The DVD Release Report, others 5 CTHE Research Dept.
Major Research Areas:Volumetric/POS Sales Projections • Title-level volumetric projections for DVD & VHS releases • Title-specific projections of DVD & VHS sales (both before and after theatrical release) • Use regression models based on estimated BO, genre, past competitive titles, type of release, date of release • Field intent-to-purchase surveys for key titles • Category-level projections for total home video industry • Tracking of competitive title sales & pricing by channel of distribution • Due diligence for potential acquisitions 6 CTHE Research Dept.
Major Research Areas:Product Development/Strategy • Franchise/line extensions & new franchise development • Television series on DVD • DVD product configuration (e.g., aspect ratios, number of discs, added value) • Release date scheduling strategy 7 CTHE Research Dept.
Major Research Areas:Retail/Industry Trends • Merchandising, placement, fixtures • Pricing, retail promotions • Tracking of competitive sales & marketing promotions • Monitoring wide range of news sources & distributing to relevant CTHE executives 8 CTHE Research Dept.
Major Research Areas:Primary Consumer Research • Intent-to-Purchases (telephone): for very big titles and others with special circumstances (6-10 per year) • Package testing (online): for key titles, when alternative to theatrical key art is being considered • Brand awareness/feedback, e.g. Superbit DVDs, Spanish packaging, children’s franchises (telephone & online) 9 9 CTHE Research Dept.
CTHE Primary Research Resources • Nielsen Entertainment Marketing Solutions • ePoll • Nielsen ReelResearch • Harris Interactive • Lieberman Worldwide 10 CTHE Research Dept.
CTHE Databases & Tools Developed In-House • Competitive release database • POS projection models • Revenue projection models • Reports repository • Product allocation modeling for VMI accounts 11 CTHE Research Dept.
Projects in Development • DVD Attitude & Usage Survey • Competitive Pricing Analysis • Micro-analysis of CTHE catalog product • Next-generation home video products 12 CTHE Research Dept.
Research Wants • More qualitative analysis: focus groups, copy testing, mall intercepts, etc. • International territories: • POS tracking • DVD hardware penetration • Pricing & distribution • Advanced statistical techniques • Factor analysis, perceptual mapping • Logit/probit models • Conjoint & discrete choice analysis 13 CTHE Research Dept.
Strategic Analyses: Examples • Pricing & promotion of catalog titles vs. new releases • Growth of DVD in the grocery channel • Effect of advertising on consumer sales • Widescreen vs. Pan & Scan DVDs • Effect of VHS decline on DVD sales • Effect of theatrical sequels on video sales of original 14 CTHE Research Dept.
Product-Specific Analyses: Examples • Length of time between releases of regular edition & “special edition” versions of a DVD title • How to price a multi-disc DVD set of a TV series’ complete season • How many episodes per title & titles per wave to release of a kids’ series • Various studies on pricing, product lifecycles, etc. 15 CTHE Research Dept.
Nielsen VideoScan • VideoScan and ACNielsen (a partnership since January 2000, and sister companies under the VNU banner since 2001) collect and integrate point-of-sale (POS) data. • Reporting retailers transmit scanned purchase data weekly to either VideoScan or ACNielsen to provide a comprehensive view of the VHS and DVD sell-through business. • Data reports are delivered to subscribing customers within the entertainment industry through the Nielsen VideoScan web sites and the ACNielsen NITRO data delivery system. 16 CTHE Research Dept.
Nielsen VideoScan • Sales data is captured from traditional channels of video distribution, which include mass merchants, audio/video and video specialty retailers, electronics outlets, grocery and drug channels, and some Internet sites. • Reporting retailers include: • Specialty Retail (i.e. Blockbuster, Tower, Wherehouse) • Discount Mass (i.e. Kmart, Target) • Drug & Grocery (i.e., Walgreen’s, Ralph’s, Kroger) • Other Mass (i.e. Best Buy, Circuit City) • Able to project to estimate 100% of domestic market 17 CTHE Research Dept.
Sample Data from Nielsen VideoScan 18 CTHE Research Dept.
Sample Data from Nielsen VideoScan 19 CTHE Research Dept.
Nielsen MarketNavigator • SQL server-based software platform complete with applications designed specifically for the home entertainment industry • Provides unique view of the retail and marketing landscape • MarketNavigator is a data/information repository containing thousands of consumer purchase potential and behavioral profiles as well as demographic information on thousands of retail stores. • System allows for extensive analysis of proprietary client sales and survey data. • Built-in databases include: • Demographic data and PRIZM lifestyle information from Claritas • National consumer data from Simmons Market Research Bureau • Local market consumer data from Scarborough Research • Store lists with gravity model trade areas from Spectra 20 CTHE Research Dept.
Nielsen MarketNavigator • Purchase potential for DVD/VHS releases (new and catalog) • Retailer insight (e.g. detail about consumers in store trade areas) • Store cluster development (e.g. Hispanic clusters, Art House clusters, etc.) • Targeting applications (e.g, selection of the best markets, retailers, and consumer segments for specific products) • Product allocation models that enable clients to optimize their product distribution at the individual store level • Marketing/co-promotion partner identification and ranking (e.g. beverages, consumer packaged goods, electronics, etc.) • Media mix optimization (e.g. print, television, radio, etc.) • Data warehousing (storage and retrieval of sales data by title, store, and week) 21 CTHE Research Dept.
Movie Satisfaction: xXx • 67% of DVD buyers and 44% of VHS buyers surveyed considered xXx to be “very good” or “excellent” Note: “Excellent/Very Good” percentages are the sums of those who answered “Excellent” and those who answered “Very Good,” thus columns do not add to 100%. 22 CTHE Research Dept.
Buyer Demographics: MIB II • Men in Black II has a relatively balanced appeal for both males & females aged 18-54 (for both formats) • Of the DVD & VHS buyers with positive purchase intent for MIB II, the film appeals most strongly to males aged 18-34 Note: An index above 100 indicates an above-average representation of a particular demographic group (e.g. with an index of 154, a male VHS buyer aged 18-34 is 1.54 times more likely to be a Men in Black II buyer than the average US individual). 23 CTHE Research Dept.
Purchase Timing: Stuart Little 2 • 56% of DVD buyers with positive purchase intent for Stuart Little II on DVD said they would purchase it by the 4th week after release • 43% of VHS buyers with positive purchase intent for Stuart Little II on VHS said they would purchase it by the 4th week after release 24 CTHE Research Dept.
Thank you! • Contact information: Brady Darvin Research Manager Columbia TriStar Home Entertainment 10202 West Washington Blvd., SPP 2418 Culver City, CA 90232 PH: (310) 244-3896 E-mail: brady_darvin@spe.sony.com 25 CTHE Research Dept.