Background

Formed in 1952 at Los Angeles, California, D’Facto Corp is an American motion pictures producer. It is one of the world’s largest studios with over a thousand movies and television shows produced annually which are showcased in nearly 200 countries leading to annual revenues of over $10 billion globally.

India is emerging as an exceedingly attractive market for D’Facto Corp, having annual revenues in excess of $500 million. Year on year, the Indian arm has seen a considerable increase in the customer base. However the competition in the industry is intense and D’Facto Corp faces a lot of competition from the local movies houses in terms of visibility of its movies.

Apart from the regular revenue channels, one of the major revenue channels is through the D’Facto’s online store where the customer can buy/rent the movies. The portal allows customers to download movies over the internet to their registered devices and has strong mechanisms in order to prevent piracy. The online store generates nearly $1 billion globally through this medium. However in India, this channel is still under-utilized and needs to be further developed. D’Facto Corp feels this channel has a lot of potential and has come up with a strategic roadmap and has identified increase in penetration as the first focus area. The marketing strategy followed thus far by D’facto Corp was not focussed towards the online store since India was observed as a low potential geography for online sales. Based on a recent boom in the Indian e-commerce industry, the firm wants to implement focussed marketing strategy for its online store by identifying high potential customers/areas. The company feels that improvement in the marketing strategy would allow D’Facto to focus in areas with high potential while keeping in control the total marketing spend.

The regional CMO of the company, Mr. Bala Singhania, has hired PwC-Diamond to identify the areas which should be focussed upon in the immediate future as well as a marketing strategy for these areas.

 
 
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For any D'Facto related queries or clarifications, please mail your queries along with your contact details to: DFacto@us.pwc.com