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A Thesis Submitted in Partial Fulfilment of the Requirements of the University of Hertfordshire for the Degree of Doctor of Philosophy

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A Thesis Submitted in Partial Fulfilment of the Requirements of the University of Hertfordshire for the Degree of Doctor of Philosophy Evaluating the impact of an integrated supply chain on the process of marketing European feature films Finola Kerrigan A thesis submitted in partial fulfilment of the requirements of the University of Hertfordshire for the degree of Doctor of Philosophy The programme of research was carried out in the Department of Marketing and Tourism, Business School, University of Hertfordshire June 2005 To myjamily, who have taught me never to give up, no matter how tough things get. Acknowledgments Many people have provided support and encouragementover the courseof this research. Firstly, I would like to think my supervisorsBen Fletcher, Nigel Culkin and Keith Randle for their advice and assistanceover the courseof this research. Their assistancewas particularly helpful in the closing stages. Thanks are also due to Jerry Forrester,my head of departmentwhile at the University of Hertfordshire and Susan Grey, AssociateDean Researchfor their assistanceand support which contributed to the completion of this thesis. The leaming and information servicesstaff at the University of Hertfordshire deserve acknowledgementfor their unstinting assistancein my effort to find relevant literature. Without the excellent servicesof the University of Hertfordshire Library, the researchprocess would have beenmuch more difficult. Thanks are due to the participants in this researchfor allowing me accessand giving their time to me. My researchhas also benefited from feedbackreceived through a number of venues;the Essex SummerSchool in Social Scienceand Data Analysis and Collection; the Dalyan Summer School and Academy of Marketing and British Academy of ManagementDoctoral Workshops. My gratitude goesto those who provided insight and assistanceat theseevents. Thanks of courseare due to my friends, family and colleaguesfor supporting me through my researchjourney. So many individuals have provided me with advice and encouragement,but a few deservespecial mention, Mustafa for giving me constructivefeedback and humorousbut helpful suggestionsand Mine for offering support in the lonely and frustrating writing process.Thanks are also due to Andrea for her much appreciatedattention to detail and assistancein proofreading my thesis. Jane,Olga and Nathan offered helpful commentsin the closing stagesfor which I am very grateful. Abstract The film industry in Europe is characterisedby a fragmentedsupply chain. The film market is historically dominatedby films from the United States,leaving little room for other national cinemas. In this context, film marketing suffers from the sameillness as the rest of the industry in that US companiesenjoy dominanceover the market. This thesis provides an historical analysisof the film industry and inherent marketing practicesin order to explore the interplay betweensupply chain managementand the film marketing mix. In particular, the thesis draws upon relational conceptsof trust and exchange relationships,bringing marketing approachesin the field from macro and micro levels to a multi level analysis involving micro, macro and meso level considerations. Drawing on an empirical casestudy, documentaryanalysis, policy analysis and participant observation,the thesis revealsthat supply chain managementis necessaryin order to createan environmentconducive to the formulation of an appropriatefilm marketing mix. It shows that there is interdependencybetween the market structureand the individual choiceswhich marketerscan make in formulating the mix. In responseto the constraintsof the current market structure, supply chain managementoffers independentfilm marketersa methodof improving the chancesof successfor their films in the market. Integratedsupply chainscan facilitate a developmentof relationshipsleading to enhancedtrust. The existenceof such trust has been shown to increaseunderstanding and the flow of information betweenthe membersof the supply chain which in turn ensuresconsistency in the marketing offering. This thesis contributes to the current film marketing literature by bridging the gap between the overtly contextual explanationsof the domination of the film industry by Hollywood with individualistic explanationsof marketing strategieswhich fail to recognisecontextual elements. This researchhas policy implications at regional, national and supranational levels. Namely, it would seembeneficial for policy makersto concentrateon building relationshipsbetween film industry professionalsin order to develop levels of trust and mutual understanding. In this way, virtual rather than vertical supply chains can be created within the film industry. List of publications Edited Books Kerrigan, F; Fraser,P. J. and Ozbilgin, M. F. (eds.) (2004) Arts Marketing, Elsevier, Oxford. Journal Articles Kerrigan, F Ozbilgin, M (2004) and "Film Marketing in Europe - Bridging the gap betweenpolicy and practice" International Journal of Non-profit and Voluntary Sector Marketing. August, vol. 9(3):229-237(9) Kerrigan, F and Ozbilgin, M. (2002) "Art for the Massesor Art for the Few? Ethical issuesin film marketing in the UK" International Jour'nal of Non-profit and Voluntary Sector Marketing 7(3), pp. 195-203. Ozbilgin, Kerrigan, F and M. (2002), "The Last Picture Show", Royal Society of Arts Journal, 3(6), pp. 12-3 Book Chapters Kerrigan, F (2004), "Marketing in the Film Industry" in Kerrigan, F, Fraser,P. and Ozbilgin, M. (eds.) (2004) Arts Marketing, Elsevier, Oxford. Fraser,P; Kerrigan, F and Ozbilgin, M, "Current Issuesin Arts Marketing" in Kerrigan, F, Fraser,P. and Ozbilgin, M. (eds.) (2004) Arts Marketing, Elsevier, Oxford. Blair, H. and Kerrigan, F (2002), "A New Era or a Recurring Pattern?An analysisof current trends in Europeanand British film making" in Advances in Communication and Media Research, Volume 1. New York, Nova SciencePublishers Inc. Conference Papers Published in Proceedings Kerrigan, F (2004) "Issues of Trust in the Marketing of Films", British Academy of Management Conference, St Andrews University. Schafer,A and Kerrigan, F (2004) "The Social Responsibility of Industries", 20th EGOS Colloquium, Ljubljana University, Slovenia. Kerrigan, F and Ozbilgin, M (2003) "Film Marketing in Europe- Policy and Practice", Competitive Paper,AIMAC Conference, Bocconi University Milan. Kerrigan, F and Ozbilgin, M (2003) "Marketing of film: an ethical and social overview", British Academy of Management Conference, Harrogate. Kerrigan, F (2002) "Does structurematter? An analysisof the interplay between company structure and the marketing processin the film industry" Competitive Paper, Academy of Marketing Conference, Nottingham. Kerrigan, F and Ozbilgin, M. (2002) "Educating Rita or Freeing Willy" (2002) Competitive Paper, Academy of Marketing Conference, Nottingham. Summary of Abbreviations BFI British Film Institute EAO European Audiovisual Observatory EMDA European Media Development Agency EU European Union FPRG Film Policy Review Group GATT General Agreement on Tariffs and Trades GFC General Film Council MEDIA M6sures pour encourager le development de Vindustrie audiovisueIle MMC Mergers and Monopolies Commission MPPC Motion Picture Patents Company, also known as The Trust MPAA Motion Picture Association of America NAACP National Association for the Advancement of Colored People NFFC National Film Finance Corporation NPD New Product Development PACT Producers Association for Cinema and Television P&A Publicity and Advertising RAS Recruited Audience Survey SPI) Sequential Product Development UK United Kingdom UKFC United Kingdom Film Council us United States USP Unique Selling Proposition Table of Contents Dedication Acknowledgements Abstract List of publications Summary of Abbreviations Table of contents List of figures List of tables Prologue Wv Chapter One: Introduction 1 1.0 Introduction 2 1.1 Why this Journey? 2 1.2 The ResearchProblem 8 1.3 The Aim of the Thesis 8 1.4 Setting the Scene 9 1.5 Remit of Study 10 1.6 Methodology 12 1.6.1 The CaseStudy Company- VertiCo 14 1.7 Outline of the Thesis 16 1.8 Summary 20 Chapter Two: The Development of the Film Industry 22 2.0 Introduction 23 2.1 Hollywood's Domination of the Global Box Office 24 2.2 Edison, Technical Developmentsand their Effect on the Infant Industry 34 2.3 The Formation of the Trust 35 2.4 Aims of The Trust and Economic Background 36 2.5 The Opposition and their Dependenceon Europe 38 2.6 The Growth of the Independents 38 2.7 The Rising Importanceof Market Awareness 40 2.8 The Trust and Antitrust 42 2.9 World War 1 43 2.10 Product Differentiation 44 2.11 The Birth of Hollywood 46 2.12 United StatesConquers Europe 49 2.13 The Majors are Born 50 2.14 Spiralling Costs 51 2.14.1 The Big Budget Feature 52 2.15 Why Does America still Dominate? 54 2.15.1 The Commercial Element 54 2.15.2 Marketing and Distribution 56 2.15.3 EuropeanSuspicion of Distributors 57 2.15.4 Structural Considerations 58 2.15.5 Lack of Strong EuropeanFilm Industry Lobby 60 2.16 Common Featuresof Film Collectives 61 2.17 Summary 64 Chapter Three: Review of the Film Marketing Literature 67 3.0 Introduction 68 3.1 Definitions of Marketing 69 3.2 The Origins of Market Researchin the Film Industry 74 3.3 Current Perceptionof Market Researchin the Film Industry 77 3.4 Frameworksto identify the marketing tools involved in the film industry 78 3.4.1 The Role of the Star- Actor, Director, Producer 79 3.4.2 The Creative Sphere 81 3.4.3 Genre 82 3.4.4 Target Audience 83 3.4.5 Word of Mouth 84 3.4.6 Critics and Avids 85 3.4.7 Production Values 86 3.4.8 Development 86 3.4.9 Distribution- Schedulingand Release 88 3.4.10
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