1

PRODUCT LIFE CYCLE

KANA: DID THE MANGA BALLOON BURST?1

FRANCK CELHAY

Enseignant-chercheur

Groupe Sup de Co Montpellier Business School

Montpellier Recherche Management

Tel. +33 (0)4 67 10 27 02

f.celhay@supco-montpellier.fr

CEDRINE JOLY

Enseignant-chercheur

Groupe Sup de Co Montpellier Business School

Montpellier Recherche Management

Tel. +33 (0)4 67 10 25 28

c.joly@supco-montpellier.fr

RESUME : En 2009, Kana est leader sur le marché français de l’édition de manga. Mais, après

des années de croissance spectaculaire, le secteur rentre en 2009 dans une phase de

stagnation. Par ailleurs, l’entreprise observe que les ventes de ses séries chutent très

rapidement dès lors qu’elles ne sortent plus de nouveaux tomes. Face à ce double constat -

ralentissement de la croissance et cycle de vie très éphémère des séries - l’entreprise

s’interroge sur les orientations stratégiques et actions à mettre en œuvre.

MOTS CLES : Cycle de vie du produit, analyse externe, secteur de l’édition, manga

ABSTRACT: In 2009, Kana was the French leader in manga publishing. However, after several

years of spectacular increase, manga sales in that same year entered a period of stagnation.

Moreover, the company observed that sales always dropped sharply after the last issue of a

series. Given the general slowdown in growth and the short life cycle of manga series, Kana is

currently thinking about which strategic orientations and actions to take next.

KEY WORDS: Product life cycle, external analysis, publishing industry, manga

1 The authors thank les éditions Kana and the GfK Group for their assistance in preparing this case study. The

complete version of this case study (including the correction) has been published in French in La Revue des Cas

en Gestion.

2

The word manga is attributed to the Japanese artist Hokusai, who used it in the 19th century

to publish a series of sketches under the title of “Hokusai Manga.” In French, this word means

“images dérisoires”2 (or “trivial pictures” in English) and it is broadly used today to refer to

Japanese comics and cartoons. It is difficult to make general statements about manga as

manga production is primarily characterized by its diversity. However, some common

features can be noted. Manga usually take the form of series with many issues (sometimes

lasting for many years). Unlike French-Belgian comics, most are published in black and white

as small books. They run from 200 to 300 pages and are read from right to left (Japanese

reading direction). They are published at a very fast pace: the most successful series often

have three new issues of 250 pages every year. In Japan, manga are a product of mass

consumption: they are read by the entire population and sell millions of copies.3 The Dragon

Ball series, for instance, is the best-selling comic in the world. It exceeded the sales of Tintin

with 250 million copies.4

Manga production is divided into several consumer segments. The main manga categories are:

- The “Shonen” series target young boys (with series like Dragon Ball Z, Naruto, One

Piece, etc.).

- The “Shojo” target young girls (with series like Nana).

- The “Seinen” target adults and teenagers (with series like 20th Century Boys). These

three categories make up the major part of the market. However, niche categories also

exist for more precise segments of readers or particular types of stories (heroic

fantasy, gothic, etc.).

Development of the French manga market

Manga first appeared in France on television in the early 80s, with cartoons like Goldorak,

Dragon Ball and Saint Seiya (Knights of the Zodiac). The publishing house Glénat then

emerged as a pioneer in the French market with the publication of the Akira series in 1989,

followed by the Dragon Ball series in the early 90s. Thereafter, many other publishing

companies followed Glénat’s lead: French comics publishers like Casterman and Dargaud,

2 Peignot J. (2006), Représentations ? Manga ! Addictions…, Empa, 63, 3, 117-127.

3 The sociologist Lebas (2009) uses the word "ultra-consumption”: “all the social classes, ages, temperaments

have their own manga." Lebas F. (2009), Le manga, mode exploratoire des « mondes (fictionnels) flottants »,

Sociétés, 106, 4, 45-56. 4 Vincent F. (2009), La structure initiatique du manga. Une esquisse anthropologique du héros, Sociétés, 106, 4,

57-64.

3

specialized manga publishers like Tonkam, and big generalist publishers like Le Seuil and

Editis also began to publish their own manga collections (Appendix 1).

From the second half of the 90s until 2009, print sales for manga grew dramatically and

became a veritable engine for growth in the book industry in general and the field of comics

in particular (Appendix 2). The tremendous rise in manga sales led to ever more publications

(Appendix 3), with the market share of manga reaching 40% of comics sales in France5, and

increasingly greater visibility in book stores and other retailers (specialized or not).

Cultural recognition of manga

This enthusiasm for manga was reflected in the press, among intellectual elites and in French

opinion in general. Initially criticized for their content, which is at times violent or

pornographic and presented as a degrading subculture, manga are now recognized as a distinct

form of cultural expression. This change seems to be related to the recent awareness of the

diversity and richness of manga production following the success of authors such as Hayao

Miyazaki (Princess Mononoke, My Neighbor Totoro, Castle in the Sky, etc.) and Jiro

Taniguchi (A Distant Neighborhood, The Summit of the Gods, The Walking Man, etc.) in the

French market. It is also explained by the exchanges now observed between manga and

contemporary art, haute couture and contemporary dance. Indeed, many artists—such as

Takashi Murakami, Marc Jacobs and Nurten Aka—have acknowledged being inspired by the

manga universe. Two events that reflect this new legitimacy: the Beaux Arts magazine and

the television channel Arte respectively devoted a special issue and a special program in 2008

and 2010 to this part of Japanese culture.

2009: a year of changes?

A turning point for the manga industry seems to have been reached in France in 2009. After

ten years of continuous growth, sales declined for the first time (Appendix 2). Moreover,

whereas manga had been marketed by French publishers buying the licenses of the most

promising series from Japanese publishers, the Japanese began to sell directly in the French

market. Thus, the two main Japanese publishers (Shogakukan and Shueisha) settled in France

by creating a joint venture called Viz Media Europe and acquiring Kaze Editions. French

publishers also had to face an environment profoundly changed by the development of new

5 Sabre C. (2009), Etre vendeur et être fan : une cohabitation difficile. L’exemple d’une boutique spécialisée

dans le manga, Réseaux, 153, 1, 129-156.

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technologies, the dematerialization of books, the growth in electronic commerce, and the

appearance of new ways of reading6. Thus, even though digital book sales have remained

underdeveloped for the moment, the recent launches of the Apple I-Pad and Amazon Kindle

has been a bombshell in the publishing industry.

Kana Editions

Kana is a publishing house specialized in manga. It is a subsidiary of Media Participation,

which also owns comics publishers like Dargaud (Blueberry, Blake and Mortimer, Boule et

Bill, The Rabbi's Cat, Thirteen), Dupuis (Gaston Lagaffe, Largo Winch, The Smurfs, Lucky

Luke, Spirou) and Le Lombard (Thorgal, Yakari). The group is a leader in the French comics

market, with 30.5% of the market share in 20097.

Kana was founded in 1996 by Yves Schlirf, a bookseller in Brussels and a fan of manga. The

company started by publishing two Manhwa (Korean manga): Angel Dick and Armageddon,

which were not very successful. A few months later, however, Kana had its first success with

Shonen titles like Saint Seiya (Knights of the Zodiac) and Detective Conan. With the

promotional support and distribution power of Media Participation, Kana quickly became the

leading publisher of manga in the French market and diversified its catalog of titles by

publishing Shojo and Seinen. Its most recent successes include the Naruto and Yu-Gi-Oh!

series in the Shonen category and the Death Note, The Summit of the Gods, and Monster

series in the Seinen category.

The publishing house has a website offering previews, trailers, goodies, a readers’ forum,

online purchasing and the opportunity to read selected manga in digital format. It is also

active on Facebook and Twitter and websites like manga-news.com or manga-sanctuary.com.

Not least, it contributes to major events in the manga universe like the Japan Expo and

communicates via TV on channels like Game One or Manga.

In 2009, Kana was the leader in the French manga market, with 25.2% of market share. Its

main competitor Glénat followed with 24.9%, followed by Pika (13.3% of market share),

Kurokawa (7.8% of market share) and Delcourt (6% of market share)8.

6 Walter A.L. (2010), Manga : Le temps de la maturité, Livres Hebdo, 0826.

7 Ratier G. (2011), Rapport 2010 de l’ACBD (Association des Critiques et journalistes de Bandes Dessinées).

8 Ratier G. (2011), op. cit.

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What challenges and opportunities for Kana?

Despite its leading position, the company must respond to changes in its environment. Thus,

as the market enters a phase of maturity and competition continues to intensify, the company

has to choose the right strategic orientations. In addition, the publisher has observed a

phenomenon that seems to be specific to manga publishing. Although the French-Belgian

comics market in general has many "cash cows" (series that continue to sell years after the

last issue was published), manga series seem subject to fads and sales drop very quickly when

new issues do not come out (Appendix 5). Therefore, Kana has to find solutions to sustain the

sales of its series when the titles are no longer "active."

QUESTIONS

1) Analyze the environment of Kana in the 2011 manga market. Based on this analysis,

identify the key factors of success in this market.

2) Discuss the life cycle curve of the manga publishing industry presented in Appendix 2.

Make recommendations to develop this sector.

3) Discuss the life cycles of the two series presented in Appendix 5. Explain the potential

problems with this type of life cycle and make recommendations to address these

problems.

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Appendix 1: Dates of entry into the French manga market for the main publishers

1987 Glénat publishes Akira and Dragon Ball in the French market

1994 Creation of Tonkam, a publishing house specialized in manga

1996 The comics publisher Dargaud creates the manga label Kana

The generalist publisher J’ai lu begins to publish manga. J’ai lu will stop publication of manga in 2006

2000 Creation of Pika, a publishing house specialized in manga

2002 The comics publisher Delcourt creates the manga label Akata

2003 The comics publisher Soleil begins to publish manga through the acquisition of Vegetal manga

Creation of Ki-oon, a publishing house specialized in manga

Creation of Imho, a publishing house specialized in manga

2004 The comics publisher SEEBD (société d'édition et d'exploitation de BD) creates the manga label Akiko (Shojo) and Kabuto (Shonen and Seinen)

Creation of Taifu comics, a publishing house specialized in manga

Creation of Asuka, a publishing house specialized in manga

The comics publisher Casterman creates the manga label Sakka in 2004, and the labels Hanguk (Korean comics) and Hua Shu (Chinese comics) in 2006 and 2007

2005 The generalist publisher Univers Poche creates the manga label Kurokawa

The generalist publisher Tournon creates the manga label Kami

The generalist publisher Albin Michel begins to publish manga

The Ankama company (video games) creates Ankama Editions to publish manga adaptations of their video games

2006 The generalist publisher Milan creates the manga label Kanko (manga for adults) and the label Dragons (Korean comics) in 2007

The comics publisher Bamboo creates the manga label Doki Doki

The generalist publisher Le Seuil creates the manga label Mangaelf

Creation of Iku Comics, a publishing house specialized in erotic manga

2007 The generalist publisher Hachette buys the manga publisher Pika

The manga publisher Kaze buys the manga publisher Azuka

2009 The Japanese publishers Shogakukan and Shueisha settle in France through the acquisition of Kaze Editions

In 2005, Charollois observed that "the enthusiasm of readers (...) stirs envy. Twenty to twenty-

five publishers have discovered a vocation for publishing manga in the last three or four

years. This run will continue... ."9 According to ACBD and Livres Hebdo estimations, the

number of French publishers offering manga in their catalogs increased from 22 in 2004 to 41

in 2008 and remained stable over 2009, 2010 and 2011.

9 Charollois P. (2005), Tous mangagas, Livres Hebdo, 0602.

7

Appendix 2: Evolution in manga sales (volume) from 2003 to 2010 10

Appendix 3: Evolution in the number of manga publications from 2000 to 201011

10

GFK data, retail book panel. 11

Ratier G. (2011), op.cit.

7,81

10,64

13,18 13,89

14,63 15,01 14,93

14,10

0

2

4

6

8

10

12

14

16

2003 2004 2005 2006 2007 2008 2009 2010

Sales evolution (millions of books)

Seinen

Shojo

Shonen

Total

227 269

377 521

754

1142

1418 1428 1453 1460 1522

0

200

400

600

800

1000

1200

1400

1600

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Mangas Edition alternative gros éditeurs comics

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Appendix 4: Press reviews

- Les Echos (2005) – "Directive TSF : diversité culturelle protégée dans les nouveaux

médias », Karl de Meyer. This article explains that the European Directive,

"Television Without Frontiers," which was adopted in 1989 to ensure the promotion of

European works, has been modernized and should satisfy the advocates of cultural

diversity. It observes that France will be able to adopt specific measures to promote

European productions and that the current quotas on traditional media (at least 50% of

European productions) will not change.

- Les Echos (2008) - « Projet de loi audiovisuel : les ultimes arbitrages de l’Elysée »,

Grégoire Poussielgue. In the context of discussions on an audiovisual bill, the

journalist reports that "The president has approved the strong inflection of the

editorial line of France Télévisions. That’s to say: a program grid more oriented

toward culture (...) and increased quotas for European and French productions

(respectively, 70% and 50%).”

- Livres Hebdo (2008) - « BD, jeunesse et tourisme sont les rares annonceurs du livre

sur le câble » Hervé Hugueny.

- La Tribune (2011) - « Autoriser la publicité pour le livre à la télévision », Arash

Derambarsch. After 35 years of resistance in the name of French cultural exception,

in 2004 book publishers were finally allowed to advertise on cable channels. However,

Hervé Hugueny notes that "although the purchase of advertising space on TV by

publishers reached almost 4.6 million in the first year of advertising campaigns, this

figure collapsed in the following year to 1.6 million, according to the TNS. The first

advertisers do not seem to have been convinced by the experience (...) This medium

seems to attract very specialized publishers segments of (comics, manga, tourism,

youth)." Arash Derambarsch laments the fact that book advertising remains prohibited

on the major public channels. This prohibition has been justified as a means to prevent

the perverse effect of "best sellerization": "the price of TV spots being so high, it

would be impossible to promote books other than bestsellers. Book advertising would

therefore benefit those books that don’t really need it: bestsellers."

- La Croix (2011) - « Trente ans d’une loi du prix unique pour le livre », Sabine

Audrerie. In August 1981, the "Lang law" on book prices was voted in: each book has

a price set by the publisher and this price is imposed on all retailers. A single price

means that the same book will be sold at the same price by all retailers (any discount

cannot exceed 5%). This law was recently extended to digital books. In this article,

9

Sabine Audrerie explains that, 30 years later, the "Lang law" seems "unanimously

appreciated" by the book industry. By preventing price wars between retailers, it

allows "small booksellers" to continue to exist alongside the superstores. At the same

time, it helps to maintain diversity in the book offers, whereas price competition and

the concentration of distribution channels would have led to the gradual disappearance

of “niche” books in favor of bestsellers.

- Livres Hebdo (2011) - « Le SNE envisage de rejoindre l’Hadopi », Hervé

Hugueny.

We learn in this article that the SNE (National Syndicate of Publishers) recently

expressed its willingness to join forces with the High Authority for the Dissemination

of Works and Protection of Rights on the Internet (Hadopi). The Hadopi law came into

force in 2009. The Hadopi oversees the warning and prosecution of internet users who

download copyrighted works or make them available via peer to peer websites.

Although Hadopi was previously concerned with pirated music and movies, the SNE

has observed the piracy of printed works including manga on specific websites called

"scantrad websites."

Appendix 5: Life cycle of two manga series published by Kana12

12

Kana internal data. The name of the series has been masked to protect confidentiality.

0

10

20

30

40

50

60

70

Series 1: Sales volume (thousands of units) per month

Last volume

10

Appendix 6: Life cycle of a product, presentation of the model and its applications.13

The concept of life cycle can be applied to a type of product in general (e.g., manga books) or

a brand or particular product (e.g., the Naruto series). It assumes that any product experiences

four phases: (1) a launch phase, (2) a growth phase, (3) a phase of maturity and (4) a phase of

decline. Therefore, product sales should follow the following curve:

According to this model, each phase corresponds to a different economic and competitive

environment. Thus, the objectives of the company must be redefined and the marketing

program be adapted.

13

This appendix was prepared thanks to the following references:

(1) Vandaele M. (1986), Le cycle de vie du produit : concept, modèle et évolution, Recherche et Applications en

Marketing, 1, 2, 75-87.

(2) Lambin J.J., Chumpitaz R., de Moerloose C. (2005), Marketing stratégique et opérationnel, du marketing à

l’orientation marché, Dunod, 6ème

édition, 267-301

(3) Kotler P., Keller K., Manceau D., Dubois P. (2009), Marketing management, Pearson, 13ème

édition, 358-

374.

0

20

40

60

80

100

Series 2: Sales volume (thousands of units) per month

Last volume

Penultimate volume

Kotler et Al., 2009

11

During the launch phase, the model predicts the slow development of product sales due to

the reluctance of the distribution channel and the need to become familiar with the new

product. Potential buyers also need time to change their habits and embrace the innovation.

The marketing objectives during this phase are to inform and educate the market.

The growth phase is characterized by rapid growth in demand because the first satisfied

customers positively influence other potential customers. The product is available for

distribution and is more visible. The massive entry of new competitors increases the

marketing pressure and therefore expands the demand for the product. The marketing

objectives are to increase demand and the market share of the company, to build a strong

brand with clear positioning, and to create brand loyalty.

The maturity period is characterized by a slowdown in sales and then stagnation. Weaker

competitors exit the market, and the industry restructures and becomes more concentrated.

The objective is no longer to develop the market but to maximize market share.

The decline phase is characterized by a structural decline in demand due either to the

appearance of more efficient products or to changes in consumption patterns or social,

economic and/or political changes. Therefore, companies divest and leave the market.

Several criticisms have been leveled at this theory. First, various researchers have shown that

it is difficult to empirically verify the existence of a standard curve that conforms to the steps

described in the theory. For instance, Cox (1967) studied 258 brands of pharmaceutical

products and identified six different types of curves14

. In a similar study, Dhalla and Yuspeh

(1976) concluded that a true model of a product life cycle is never actually observed, except

as a random phenomenon15

.

14

Cox W. (1967), Product life cycle as marketing models, Journal of Business, 40, 375-384. 15

Dhalla N. et Yuspek S. (1976), Forget the product life cycle concept !, Harvard Review, 102-212.

12

In addition, these authors observed that the concept of product life cycle tends to produce self-

fulfilling prophecies: "Suppose that a brand is well accepted in the market but runs into a few

difficult years; for example, due to inadequate advertising or loss of referencing. Instead of

reacting, the company may assume that the brand has reached the stage of decline and so it

then reduces its investment ... and it is in fact this decision that actually produces the decline

phase of the product." According to Kotler et al. (2009)16

, the decline phase should not be

considered as inevitable, but rather attempts should be made to boost demand with adequate

measures. These authors identified two types of strategies: (1) a change in the market and (2)

a modification in the marketing mix. Regarding a change in the market, Kotler et al. assumed

that "Market = number of consumers * rate of utilization." Therefore, demand can be revived

by increasing the number of consumers or increasing the frequency of consumption.

Regarding the change in the marketing mix, Kotler et al. argue that marketing managers can

also raise sales by introducing modifications to the product, the price, the distribution or the

promotion. Quite often, the two types of strategies are linked. If we take the case of wine, a

change in packaging can facilitate more frequent product consumption (e.g., Bag In Box) or

help recruit new consumer segments (e.g., screw cap).

16

Kotler et Al. (2009), op.cit.

Kotler et Al., 2009