The Spectacle of Excess: A Marketing-Cum-Financial Analysis of WWE Inc

IntroductionPro-Wrestling is a combination of athletics and entertainment. Here, the performers put up a display of their athletic abilities, but in a planned or orchestrated manner. This brings in the entertainment aspect into the business of pro-wrestling. Thus, the two (or more) performers are really not competing with each other, rather they are complementing and supporting each other to put up a marvellous display, leading to a predetermined outcome. The performances are planned and executed in such a way that would ensure the safety of the performers, without sacrificing the thrill of the performance.An important jargon in this case is 'kayfabe'. This implies that performers would be required to maintain their characters outside the arena (in public) as well. This would intensify the belief of the audience in the coordinated performances. This is the reason why performers who are engaged in an in-ring feud during a particular period of time must not be seen together in public during such period.For decades, this reality of the business was kept hidden from the audience so as to make the performances all the more interesting and exciting. However, with time as the secrets started becoming public, the giants of the industry (including World Wrestling Entertainment (WWE) mogul Vince McMahon) publicly acknowledged the entertainment aspects. Notwithstanding the same, the industry has retained its charm and loyalty among the target audience.The primary objective of this paper is to analyze WWE from marketing and financial perspectives. This will help to evaluate the business strategies and the underlying business model on which the pro-wrestling promoter is based. Here, marketing analysis serves as the primary tool of assessment, and financial analysis is used as the secondary tool of assessment.Along with the above, another objective of this study is to serve as an input for the Pro Wrestling League (PWL), which will be held in India during the month of November this year. The PWL will be based on six city-based franchises battling it out among themselves for the inaugural PWL title. At 11 wrestlers per team, the League will bring together 66 wrestlers from all over the world, including 'eight world champions'. India's two-time Olympic medalist in wresting, Sushil Kumar, and Olympic bronze medalist in wrestling, Yogeshwar Dutt, will also feature in the PWL. Considering the above, we understand that the PWL will be launched at an international scale. In such a scenario, there can be no better reference point for the PWL than WWE.Marketing Analysis: WWE - A Marketing SpectacleThe first part of the analysis is marketing based. Here, the objective is to analyze WWE as a marketing spectacle. For this purpose, we consider two broad areas-the transition of WWE from wrestling/sport to entertainment, and analysis of various WWE characters. In case of the latter, we consider three of the best performing products of WWE-John Cena, Daniel Bryan and The Undertaker-and analyze how these products/characters have been marketed by WWE, so as to achieve the desired popularity among the target audience.In addition, we take into consideration some deals struck by WWE with its talent, and analyze the same from a marketing perspective. We also apply the concepts of consumer behavior, to interpret WWE's decision to sever its ties with Hulk Hogan.Transition from Sport to EntertainmentWWE has slowly and steadily transformed itself from a company promoting sport to a company promoting entertainment. This is best analyzed by tracking the changes in the brand name. Earlier, it was called the World Wide Wrestling Federation (WWWF) or the World Wrestling Federation (WWF). Eventually, the word 'federation' gave way to the term 'entertainment' which provided a significant hint regarding the proposed transition. Thereafter, the brand moved from 'World Wrestling Entertainment' to simply its abbreviation 'WWE'. …