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Research on Warner Bros.’s Consumer Behavior and
Marketing Strategy
Zhiyuan Niu
1,* ,†
, Zhiqi Yang
2,†
1
Beijing 21st Century International High School, Beijing, 100089, China
2
Luoyang WenXing high school, Luoyang, 471000, China
*Corresponding author. Email: 15000640143@xs.hnit.edu.cn
†
These authors contributed equally.
Abstract.
Warner Bros. is now one of the most well-known entertainment companies worldwide.
They should perform on and off-screen to provide consumers with spiritual and emotional pleasure.
Nowadays Warner Bros are competing with many successful entertainment companies for market
occupancy. To win, they need to win the consumers’ preference. In order to better satisfy consumers’
needs, Warner Bros Should change consumer’s behavior and set proper marketing strategy.
Keywords:
Warner Bros., Consumer Behavior, Marketing Strategy.
1.
Introduction
1.1
Research backgrounds
Warner Bros. Pictures’ famous works include the “Batman” series “Superman” series. The
intercepted “Harry Potter” series of movies has exceeded 7.4 billion U.S. dollars in the global box
office revenue, ranking among the world’s most profitable film series. In 2018, the world’s only real-
validation room brand of laboratories, Warner Bros and other entertainment product. The most
competitive competitors are Disney and 20th-century fox.
Focusing on film production, it is also involved in home entertainment and other industries.
Diversification of the center is a reasonable and effective investment, enabling enterprises to diversify
risks while developing the core business.
1.2
Literature review
1.2.1. What is Consumer Behavior in Marketing?
Understanding consumer behavior has become crucial for organizations in marketing. Consumer
behavior is the study of how customers choose between wants or other actions in relation to a given
good, service, or company. Understanding consumer behavior is essential for analyzing how potential
customers would behave when presented with a new good or service. Finding untapped business
prospects is also incredibly helpful for businesses [1].
1.2.2. Definition and Examples of Consumer Behavior
Consumer behavior is the study of people's psychological, physical, and social responses to the
acquisition and behaviors. In other words, consumer behavior researches how consumers will decide
what to buy and what influences or supports those choices.
The shift in eating patterns that dramatically raised the demand for gluten-free goods is an
illustration of consumer behavior. Businesses that saw this market gap created gluten-free goods and
took advantage of this market opportunity.
1.3
Research framework
This paper will first give an abstract of the whole content, and display Warner Bros.’ background
and ability. Then this paper explains why is the topic of the paper important and worth the research.
Next there will be the methods used in during the research. After that there will be a discussion that
will point out how exactly can Warner Bros. solve the problems and make progress. And there will
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also be a conclusion that has three sections to clarify the key finding, research significance, and
limitations. Finally there will be details on the originals of the references.
2.
Method
The ultimate goal of researching consumer behavior and marketing strategies is to give the
audience the best feeling so that the company can catch long-term consumers. By learning consumer
behavior, we can design marketing strategies efficiently. It helps enterprises organize production and
business activities according to changes in consumer demand and enhance market competitiveness.
2.1
Survey method
The terms "investigation and research method" and "relevant materials directly through
investigation and comprehending the actual situation and analysis of these materials" are used to
describe different research approaches. Through the examination of Warner Bros. films in this
paragraph. We will find out the kinds of movies that audiences most want to watch, which can also
fulfill most consumers’ desires, and how to reduce the cost of film-making. There are also some
changes to their products to attract more consumers and maximize the economic benefits.
2.2
Comparative analysis
A form of analysis called comparative analysis examines two or more things or objects to
determine their similarities and differences. This essay contrasts two situations. Prior to and following
the plan. Consumer, financial, and user satisfaction surveys have changed.
3.
Result
3.1
Warner Bros Marketing Strategy
3.1.1. Warner Bros Product strategy
Warner Bros is in the leading position of global entertainment organization, movie makers, and
distribution company. Warner Bros. distributes theatrical motion pictures and television
programming. Warner Bros. is also active in distributing T.V. series. One of the most inventive
producers of movies and video games is Warner Bros. It is regarded as the first to offer home
entertainment and has one of the biggest studios in the world. Time Warner's Warner Bros. Publishing
branch produces books and periodicals. It has acquired a number of film libraries as a result of
mergers and acquisitions, including some of the most well-known ones including The Lego Movie
and several others. The films that Warner Bros. produces in Hollywood, which have a global audience,
are its main product.
3.1.2. Warner Bros Price Strategy
Warner Bros. meticulously arranges its investment in films and distributes pictures after
considering numerous possibilities because the film industry is unpredictable and competitive. Cash
is raised for the creation of television programming through the licensing of TV shows and programs
to network and premium pay television providers. Warner Bros' Blu-ray and DVD releases are
reasonably priced and include making-of content. With the intention of distributing the movie in a
few countries around the world, Warner Bros strikes a deal with the filmmakers. According to the
budget allotted and the region to be disseminated, the pricing decisions made by its marketing mix
for film distribution [2].
3.1.3. Warner Bros Place & Distribution Strategy
Warner Bros. has a vast audience because to its well-liked films and superior global distribution.
Amazon Video and W.B. Shop all offer access to movies and television shows produced by Warner
Bros. Users can rent movies from Amazon Video at a low cost, and they have 24 hours to watch them.
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They can purchase the film by selecting either the S.D. or H.D. configuration. Customers can also
buy via the iTunes store, however only iOS devices or the iTunes Player is required for playback.
Customers can buy books and movies in 4K and DVD formats at the Warner Bros. W.B. Shop.
Additionally, it offers items and accessories on W.B. Shop where fans may buy accessories from their
preferred movie characters. The TV shows are shown on numerous international channels with
exclusive telecast rights in association with Warner Bros [2-3].
3.1.4. Warner Bros Promotion & Advertising Strategy
In order to build anticipation for its films, Warner Bros. first releases movie posters, which are
then followed by theatrical teasers and trailers. As Warner Bros gradually releases different
promotional posters throughout the course of the time, movie fans become increasingly curious.
Afterward, character posters bearing the figure's name and a brief history are made public. The core
narrative of the film is introduced in the announcement trailer, which is then followed by a teaser
trailer that is made public around occasions like the comic con or movie award season. Regarding
online and social media platforms, its website works with the cast, displays behind-the-scenes photos,
and provides a lot more information about the movie. In order to increase the popularity of the movie
among followers, Warner Bros. also airs TV advertisements and uses Twitter hashtags for promotion.
They conduct Q&A sessions. With the film cast on platforms like Comic-Con. It also sells
merchandise online on its website W.B. Shop [4].
3.2
Consumer behavior analysis of Warner Bros
First, through revenue analysis, we know that television and theatrical products are the most
popular. Consumers often go through five stages when making a buy: verify the necessity and post
purchase. The 4P marketing strategy recommends that businesses focus more on the product and its
pricing than the place and promotion in order to make a successful sale. Finally, the consumer
behavior of Warner Bros. is quite important as a benchmark. Warner Bros. is permitted to modify its
output in accordance with the number of consumers who choose a different product. Warner Bros.
has done a great job finding out their consumers’ behavior.
Warner Bros. understands how to keep up with the times. Their products from different periods
always reflect the historical backgrounds. For example, war movies and feminist movies were
massively made during and after the 2nd world war. Superhero movies and video game series have
appeared since the 21st century. Warner Bros. has been making progress all the time, and its
development is based on successful movies that fit the appetites of many different groups of
consumers. They did lots of work creating original classic characters and story lines to make such
movies. They researched social and cultural backgrounds to understand people’s needs and desires
for movies to achieve their future success. They made products that draw people’s attention and give
them reasons to make purchases. This needs creativity. Warner Bros. can put more emphasis on D.C.
products to attract consumers. D.C. products have a solid fan base that looks forward to seeing new
stuff on the screen whether it’s to integrate story lines behind each hero or create new heroes.
Changing consumers’ behavior also include improving their buying experience, like transaction
process and purchase motives. [6]
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Figure 1 Consumer product revenue of Warner Bros. from 2018 to 2020 (in a million US dollars)
In 2002, Warner Bros. generated 12.15 billion dollars in sales from consumer goods, of which
$4.39 billion came from the production of motion pictures. In June 2018, AT&T purchased Time
Warner and Warner Bros. were added to their new Warner Media section [5].
From Figure 1, the current status of Warner Bros. can be known. Warner Bros. has been making
tons of products especially in 2021; 14 big movies were made in a year. There were 17 movies in
2021, and they are still planning on making more.
3.3
A possible problem of marketing strategies from Warner bros
Movies based on the cartoon from Warner Bros are not universality. These movies cannot meet
some religious requirements; to be specific, different religious organizations have many limitations.
For example, there is a dilemma called The Harry Potter Dilemma. Thousands of good Christian
home schooling moms worldwide forbade their children from reading J.K. Rowling’s Harry Potter
books because they contain magic and wizards, even though Harry Potter has already been popular
worldwide. This limitation caused Warner Bros cannot to gain all of the consumers because of their
movies’ sensitive elements. As people all know, the religious population accounts for a large
proportion of the world; they are also important consumers and audiences.
4.
Discussion
From what have been listed above this paper finds that Warner Bros has many advantages that
keep them in the leading position in film making business. For example, successful series movies and
famous actors and directors. Considering the SO(strength and opportunity) analysis, there are several
key knowledge that we need to understand about Warner Bros. Their strength should include sources,
capabilities and skills. To find out how they can use their strength and take their opportunities, we
need to know what they can do particularly well relative to rivals and what What do analysts
consider to be your strengths. We know that Warner Bros has many strengths in the film making
industry that keep them in a dominant position. In the industry of film making, Warner Bros always
have the top technology and skills to decorate films Also they benefit from the US policy and politics
status which offer a free and comfortable environment for companies to take the opportunities to
create. Using these advantages can bring them a relatively prettier revenue with lower cost. Of
course, there are shortcomings too. For instance, they don’t win that many Oscar prizes as before and
actors are not being paid as much money as they used to. Other factors like foreign market growth
and increasing demand during the economical depression are stepping stones, too. So the WO analysis
for them will be developing their department to sale the peripheral products since sometimes the
movies’ peripheral products business are making even more money than the movies themselves and
has become one of the most important revenues of the company. Besides, it is a good idea to start
making movies that are cost lower but contain great thinking depth and spectacular storyline. This
will not only distribute the risk of film making, but also win prizes to increase the fame of the
company [6-7].
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This paper’s solutions for Warner Bros to solve the problem of winning market share by using
proper marketing strategy is to focus on their main purpose and main advantages. Specifically, there
are three things to do.
First, according to the image we see that Warner Bros’ core business is making and publishing
movies. It also developing peripheral industry like TV series and operas or DVDs. They have to put
the most energy into leading the film making industries and guarantee their revenue. It is the same
important to also keep their reputation, which can be done through proper communication with
consumers and programs of public welfare. Secondly, exploring a new market segment isn’t easy
since the film market are now mature. However, it is the most easy for Hollywood companies like
Warner Bro. to explore foreign film markets. Since Warner Bros always lead in areas of game
innovation and special effects in films(had over 1500 special effects in Superman), it can be a priority
for the market to attract the audience. Third product differentiation has globalized, the brand value
means a lot more to people nowadays. Making films that fit people’s appetites and provide kinds of
peripheral entertainment product that are quality-advanced to bring brand value that comes after
product differentiation [8]. the paper’s solution for Warner Bros to change consumers’ behaviors are
as below:
Increase Bros Films' market share - Marketing activities can be utilized to grow the company's
market share by promoting higher sales to both current and potential customers.
Increased sales of Bros Films - Marketing activities aim to increase sales of the current products.
The product may be positioned differently for the new market or a new target market may be selected.
Launch a product version that can appeal to a new customer niche or penetrate new markets to
bring in new customers for Bros Films [9-10].
Meanwhile, Warner Bros should also solve the problems of some potential threads. Common
troubles like pirated products are the potential threads.
The ST analysis is also useful here in this paper. It mainly suggest Warner Bros to use their brand
value to have better communication and cooperation with the upper-class companies. Also, they
should better keep it conservative when it comes to making films so that they can have solid box
office. Finally, the WT strategy encourages Warner Bros to pull out from places like South Asia
where the internet hasn’t developed into a mature phase.
5.
Conclusion
5.1
Findings
This paper’s key findings are as below:
First, the paper studies the SWOT analysis of the marketing strategy of Warner Bros. There are
details on how exactly they can make improvement in marketing. Separately, this paper displays SO
and WT analysis. Then, this paper adds the current situation and the bigger environment into
consideration to provide three possible solutions for Warner Bros to achieve the goal of a larger
market share. As a result, this paper finds that the most efficient way way for Warner Bros to stay in
the leading position in the film making business is to use all their irreplaceable advantages like the
brand value and film technology. And in order to avoid the risks of the film making process, this
paper suggests accessible solutions like making movies that are cost lower but contain great thinking
depth and spectacular storyline and provide all kinds of peripheral products.
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All these studies surely have business value since the main idea of this paper is to research on
Warner Bros’ marketing. For example, the 4 analysis used for marketing can increase Warner Bros’
revenue and decrease the cost of film making. And the suggestions listed above about movie making
and potential threads are crucial to the company’s future success. They play a crucial role in making
Warner Bros a leading figure.
5.2
Limitations
In this paper, we lack the newest data of audiences of Warner Bros, we mainly use the data of
years which are before nowadays. The old information may cannot reflect the real idea, and it’s also
hard to search for the information in 2021 because the COVID-19 made sorts of data is unauthentic.
The newest information could be collected from sending E-mail to the official of Warner Bros or
checking from their websites.
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