IIM-A Sutra For Bollywood Hit Film Mantra
Bharathan Kandaswamy, who teaches ‘Contemporary film industry: A business perspective’ at the Indian Institute of Management, Ahmedabad (IIM-A), devised a set of mathematical and statistical models to figure out the correlation coefficient between a film’s marketing budget and its success in the first three days of its release.
The team studied 50 big-medium-small budget Hindi films released in the last 10 years, which included films like 3 Idiots, Cocktail, Ghajini, Gangs of Wasseypur, Vicky Donor, RA.One, Kahaani, Ek Tha Tiger and Bodyguard among others. Marketing spends for movie trailers on television, out-of-home advertising, promotion on websites and celebrity promotions were taken into account.
The findings of the study team are:
A typical Hindi film with a budget of Rs 35-40 crore should utilize stars more effectively in promoting a film
Any film with Rs 10 crore budget and no star should spend Rs 7-8 crore, as small budget films require more attention
A film with Rs 50-100 crore budget and a star can spend Rs 10-12 crore for promotion
Since around 250 Hindi films release every year, this Ad-spend model ensures housefull footfalls in the first weekend. However, unless the film crosses the second week successfully and goes beyond, it cannot be declared a hit.