Friday, January 29, 2016

CashBack from Film Producers-Unexplored market

In the last couple of years, Indian eCommerce buyers have been bombarded with ‘CashBack’, offers from all Online shopping sites.

             CashBack is normally of the following types:-

  • Straight Discount over MRP – given by the seller or the online shopping site
  • CashBack Credit – This is given by the online shopping site. The CashBack amount is credited to the buyer’s account within a specified time period and the buyer’s can redeem in future.
  • CashBack Credit – This is given by the Digital Wallet companies. The CashBack amount is credited to the buyer’s digital wallet and the buyer’s can redeem this amount in any participating online sites.
CashBack or Discount is offered for almost all categories of goods.

Major eCommerce companies announce the amount of CashBack budget through which they plan to attract shoppers to their sites.

              @ Flipkart, Amazon and Snapdeal expected to burn Rs 2,000 crore in months leading to Diwali

              The first recorded history of CashBack is the program run by credit card companies wherein a percentage of the amount spent is paid back to the card holder in terms of points, airline points, or straight monetary amount.

              The CashBack is treated as normal marketing expenses.

              However, till date no CashBack has been offered on movie tickets.

              The marketing budgets for recently released Indian movies(Hindi,Telugu,Tamil etc) are sky-rocketing.

              Movie makers are unveiling innovative ideas to grab the viewers’ eyeballs. The trick is to get as many as viewers into the movie theatres.

              ‘Saala Khadoos’ publicity budget is INR9 crores. The majority of the budget is being spent on nationwide tours by the main cast.

              ‘Airlift’, publicity budget is INR15 crores give plus or minus a couple of crores.

              However, no movie producer is offering CashBack to the movie-goers. Technically this is feasible.

              Which eCommerce Site/Digital Wallet will be the first in world to offer CashBack to movie goers.