- •Introduction
- •Terms of reference
- •Prioritization
- •3.1 Top priority – Proposal to expand into corporate advertising videos
- •3.2 Second priority - Fee negotiation for new children’s programme
- •3.3 Third priority – Re-commissioned drama series
- •Variant 1
- •Variant 2
- •Variant 3
- •1.Sutability of the market
- •3.4 Fourth priority – “Banks – friend or foe?” – a new documentary by vyp
- •4.0 Discussion
- •4.1 Proposal to expand into corporate advertising videos
- •2. Acceptability
- •3. Feasibility
- •4.2 Fee negotiation for new children’s programme
- •4.4 “Banks – friends or foe?”
- •5. 0 Ethical issues and recommendations on ethical issues
- •Recommendations
- •6.1 Proposal to expand into corporate advertising videos
- •6.1.1 Recommendations
- •1) Short-term recommendations
- •2) Long – term recommendations
- •6.1.2 Justification
- •6.1.3 Actions to be taken
- •6.2 Fee negotiation for new children’s programme
- •6.2.1 Recommendations
- •1) Short-term recommendations
- •2) Long-term recommendations
- •6.2.2 Justification
- •1) Short-term recommendations
- •2) Long-term recommendations
- •6.2.3 Actions to be taken
- •6.3.1 Recommendation
- •6.3.2 Justification
- •6.3.3 Actions to be taken
- •6.4.1 Recommendation
- •6.4.2 Justification
- •6.4.3 Actions to be taken
- •Conclusion
- •Appendices
- •Appendix 3. Porter 5 forces analysis. Independent tv production industry
- •Bargain power of customers: High
- •4. Threat of substitute products: Medium
- •If programme ideas are innovative, then there is no threat
- •5. Intensity of competitive rivalry: High
- •Appendix 4.The market growth potential - pest analysis
- •Appendix 5. Industrial and financial analysis.
- •Appendix 6. Profit and Margin for 3 variants of actor’s salary. Номер!!!)
- •Appendix 7.
Recommendations
6.1 Proposal to expand into corporate advertising videos
6.1.1 Recommendations
1) Short-term recommendations
In short-term we don’t recommend VYP to make advertising videos as the company doesn’t have sufficient funds and experience in such sphere of activity.
2) Long – term recommendations
In the long-term term corporate advertising video production can be profitable enough, but advertising and film production are two distinct types of businesses which need different approach. So in-long term period entering corporate advertising market will be worthwhile only if company has strong necessity to change sphere of activity. We also recommend VYP to retain profit, not to pay dividends, so that the company has enough cash to have its own studio and studio crew, which will help to be more cost effective.
Moreover, we suggest an idea of showing Zubinos advertising videos on the BBC channel. This will be a mutually beneficial agreement as, first, Zubinos will be able to promote his coffee shops more efficiently than on the YouTube or any local TV channel in order to increase sales and second, there will be a possibility for VYP to demand more money from Zubinos, spread to a new market and get to show its adverts on BBC on prime-time between its drama series (see below).
6.1.2 Justification
In the UK the level of competition among corporate advertising production companies is high. In order to enter the market, the company needs high capital requirements. As VYP is quite successful profitable company (Appendix 5), which has good reputation it isn’t needed to enter a new market as it will be risky enough. So it would be better for the company to concentrate on drama series which made a major contribution to the sales in 2011.
As for the idea of involving BBC in this issue, here the advertising time on the BBC channel replaces the certain amount of money to be additionally paid by BBC for the VYP to be able to re-commission the drama series (since the revenue has been cut – see below) on a high quality level. VYP could offer a mutually beneficial agreement to BBC: instead of the money having to be paid for the drama series, BBC would spare some of its advertising time during the broadcasting of the drama for the Zubinos corporate advertising video to fit in there. Therefore, VYP will be able to demand more money from Zubinos since it intends to show his videos on so decent a channel as BBC. So, in the long term, there is a high extent of probability that the margins on the new for VYP market of advertising videos will increase considerably, and it may be Zubinos coffee shops to make a vital contribution to that.
6.1.3 Actions to be taken
The company should focus on traditional sphere of activity in short term and only if the is a strong necessity, it can enter the market of corporate advertising video in long-term period and pay actors £4,000.
VYP should start negotiations with the BBC about showing Zubinos coffee shops video on their channel instead of the fee increase.
VYP should renegotiate the fee for making advertising videos for Zubinos motivating it by the possibility of his videos being shown on the BBC channel.