Marvel Enterprises

A plan for sustained growth

Based on Marvels current market position, it needs to

answer two key questions about its future position
Marvel Enterprises is the
number 1 comic book publisher
and licenser in the US, ahead of
closest competitor, DC Comics.
There has been slow to virtually
no growth in publishing.

Marvel has experienced an

increase in sales and
profitability, and now needs to
position itself for future.

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Should Marvel focus on
its core heroes or
introduce its lesser
known heroes?

Should Marvel invest in

more capital-intensive,
but potentially more
profitable projects?

We recommend Marvel focus on introducing other heroes

and investing in more capital-intensive projects
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2
Should Marvel focus on
its core heroes or
introduce its lesser
known heroes?

Should Marvel invest in

more capital-intensive,
but potentially more
profitable projects?

Profitability
Brand Equity
Growth Potential

1. Build Marvel Universe by introducing new heroes with known heroes.

2. Invest in capital-intensive projects, specifically, movie production.
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Licensing has led to Marvels rebound and

rapid growth

1939

1990s

1998

2003

Introduction of Licensing

15% increase in
market share

20x increase in
stock price

Customers can be segmented by 3 main

product categories

Publications
Males
13-23 yrs
Established
Readers

Toys
Boys
4-12 yrs
Collectors (20%)

Motion Pictures
Mass audience

Beyond
publications

Competitors span across the different

businesses
Publications

DC Comics (35%)
Smaller industry
distributors
(25%)

Toys

Bandai
Hasbro
Mattel

Movies

Warner Brothers
Pixar
(Incredibles)

Business Model
Publishing

Toys
Marvel

Licensing Motion Films

Licensing Other Products

Marvel owns

Marvel does not own

Currently, the motion picture segment is growing the

fastest, but we only retain 7% of sales
Breakdown of Revenue
and CAGR (01-03) by Business

Percentage of Total Revenue

Marvel Retains from Box Office Sales
97%
7%

21.09% 22%

24.51%
12%

14.56%
93%

Publishing

Toys

Licensing - Movies

Marvel has to capitalize on the movie production and distribution process.

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The Marvel Universe is our greatest strength

Spider-man
Deadpool

Fantastic
Four

Hulk

Iron Man

X-men

The Marvel
Universe

Elektra

Marvel needs to be a masterbrand, not a house of brands.

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Marvel wants to seize the opportunity to

capitalize on Motion Films
Publishing

Toys
Marvel

Motion Films for Core

Heroes
Licensing Motion Films for Noncore Heroes

Licensing Other Products

Marvel owns

Marvel does not own

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Lesser known heroes who find success in movies will

become the future core heroes and be produced by Marvel

Lesser known heroes

Core heroes
If successful

Licensing Phase

Production Phase

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Marvel can leverage existing equity of core heroes

to introduce new content with lesser-known heroes
Criteria

Production

Licensing

Gross sales

> $250 m

< $250 m

Characters

Core heroes

Team = Core +
Lesser known

Audience

Mass market

Comic book fan

base

Goal of movies

Introduce audience Discover potential

to Marvel Universe core heroes
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The toy market is highly competitive and

driven by volume
Percentage of Marvel Toy Sales vs Industry
19%

19%
Marvel Toys
35%
Margins

Marvel is making high margins in a competitive market by licensing.

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Publications are not growing at a sustainable rate, but can

contribute as R&D to rising demand for online products

Marvel

Specialty
Stores

Consumers

E-Comics

Marvel is making high margins in a competitive market by licensing.

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Based on the potential profits Marvel can retain by producing

and distributing films, it should produce
683

Licensing Profits (millions)

296
Potential Production Profits
(millions)

221
68
4.76

122

104

95
57.54
21

6.65

7.28

28.5

16.94

0.07

Projected Profit (04):

Projected Profit (04):

$1.1 b

$0.5 b
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Medium

High

Acquire studio and talent

Introduce lesser known heroes into core hero movies

Develop e-comics

Creation of new characters via publications

Low

Own all movie productions

Develop toy production capability
Time

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Thank you! Questions?

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