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VYP VYP Producing our Prosperity. VYP Contents Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Comprehensive Analysis.

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Presentation on theme: "VYP VYP Producing our Prosperity. VYP Contents Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Comprehensive Analysis."— Presentation transcript:

1 VYP VYP Producing our Prosperity

2 VYP Contents Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Comprehensive Analysis

3 Problem Proposal Overview A New Documentary of VYP Expand into Corporate Videos The New Children’s Programme Accident at Studio Re-commissioned Drama Series Successful Programmes Favorable Profit Corporate Social Responsibility ISSUESAIM OF VYPRECOMMENDATION Strategic Penetrate Corporate Videos Accept a lower commission price and sell the merchandise Operational Reinforce cost control by: - Improve the IT system - Incentive programmes Negotiate on contracts

4 VYP Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Comprehensive Analysis Contents

5 Reputation (0.4x) Programme qualityBrand recognitionCorporate social responsibility Financial Performance (0.4x) ProfitabilityLiquidity Identification and prioritization of issues Identification and ClassificationPrioritization Urgency (0.2x)

6 VYP Overview Prioritization and Identification Discussion and Recommendation Expand into Corporate Advertising Videos Fee Negotiation for New Children’s Programme Accident at Studio “Banks – friend or foe?” – A New Documentary of VYP Re-commissioned Drama Series Ethical Issue Comprehensive Analysis Contents

7 Corporate Advertising Videos Market is strategically suitable … Market situationCompetitors situation Weakness of competitors High Cost Expensive studios & equipments Complex management and admin layers Unacceptable Revenue Sharply Declining rates due to high competition Strength of VYP Traditional Video production companies are being squeezed from both end, facing tremendous price pressure Rich experience & prestige directors Low equipments margin cost Effective management Promising market Benefits of Corporate Videos Drive higher sales, even a 100% conversion lift Raise Google rankings of official website Keep customers stay longer on the websites Huge and expanding market Video types grow from l0- to 50+ Frequency of production has increased tenfold Videos delivered on-line increase 41% in 2007

8 …financially acceptable and operationally feasible. Neutralism1st video/ £subsequent Revenue17,000 Actors4,0003,600 Studio hire5,0004,500 Film crew6,0005,400 Scripting & Music2,7002,430 Total costs17,70015,930 Margin(700)1,070 Margin %-4.12%6.29% Pessimism1st video/ £subsequent Revenue17,000 Actors4,8004,560 Studio hire5,0004,750 Film crew6,0005,700 Scripting & Music2,7002,565 Total costs18,50017,575 Margin(1,500)(575) Margin %-8.82%-3.38% Optimism1st video/ £subsequent Revenue17,000 Actors2,8002,380 Studio hire5,0004,250 Film crew6,0005,100 Scripting & Music2,7002,295 Total costs16,50014,025 Margin5002,975 Margin %2.94%17.50% AssumptionsOptimismPessimismNeutralism Revenue decline for subsequent0% Cost of actors for the first video2,8004,8004,000 Cost decline for subsequent15%5%10% Proposal is acceptable as long as subsequent video is commissioned Rich video producing experience Prestige directors Numerous potential clients Necessary equipments Operating Advantages Enhance pre-production communication with clients Hire corporate video producing expert Develop new clients Operating Improvements

9 VYP Contents Overview Prioritization and Identification Discussion and Recommendation Expand into Corporate Advertising Videos Fee Negotiation for New Children’s Programme Accident at Studio “Banks – friend or foe?” – A New Documentary of VYP Re-commissioned Drama Series Ethical Issue Comprehensive Analysis

10 GenreEpisodesPublicityAge groupMerchandise ModelMerchandise sales Puppet TV Series countries, 100+ broad- casters 1~5 year oldMerchandising sales £125m in 1997 (first year) Cartoon Series; Movie 882 ~50 broad- casters All age group, mainly kids Manufacturing, distributing; leasing £10.33m (RMB 85m) Merchandising sales can generate more profits for VYP Merchandise generates large revenue Breakeven sales is attainable Expected £185m The 1 st year merchandising sales of Sammy Squirrels is comparable to the 1 st year merchandising sales of Teletubbies; The inflation rate of UK is 47.80% from 1997 to march of Breakeven £22.05m Accepting the original contract, VYP will earn a profit of 6,300,000 - cost; Lower program fee + merchandise right structure will generate a profit of 4,095,000 – cost + 0.1*m-sales. Merchandising sales burdens risks Re-commission Publicity Exposure VYP could lease Sammy Squirrels

11 VYP Overview Prioritization and Identification Discussion and Recommendation Expand into Corporate Advertising Videos Fee Negotiation for New Children’s Programme Accident at Studio “Banks – friend or foe?” – A New Documentary of VYP Re-commissioned Drama Series Ethical Issue Comprehensive Analysis Contents

12 Offer training projects to production team Improve IT system Balance the profit interest and welfare Accident at Studio Accident at Studio Poor Planning Production Team IT system VYP’s Anti-social Hours Behaviors* Anti-social Hours Harm VYP’s social image and reputation Damage employees’ health, safety and working efficiency Violate local labour laws and The Working Time Regulations

13 VYP Overview Prioritization and Identification Discussion and Recommendation Expand into Corporate Advertising Videos Fee Negotiation for New Children’s Programme Accident at Studio “Banks – friend or foe?” – A New Documentary of VYP Re-commissioned Drama Series Ethical Issue Comprehensive Analysis Contents

14 “Banks – friend or foe?” – A new documentary of VYP– Short-term Causes of the Cost Over-run Solutions Raised by VPY No more interviews Cut back CGI Usage * A forecast margin of £32,000; A loss of £30,000 with full use of CGI and interviews Quality Concerns Other Cost Saving Methods Reduce the use of outside filming Avoid the use of actors and famous personalities Breakeven Saving up to £62,000* Investigations took longer than anticipated Repeated Interviews are required for further clarification of the inconsistency in the evidence gathered

15  Inaccurate anticipation  Poor cost control “Banks – friend or foe?” – A new documentary of VYP– Long-term Potential Solutions VYP’s Problems Influence VYP ’ s profitability Harm VYP ’ s reputation Trainings and instructions Performance related bonus Improve IT system Trainings and instructions Performance related bonus Equip VYP with its own premises Employ VT crews Enhance the producing and financing team Equipment & Employees Profit Margin Reduction % %

16 VYP Overview Prioritization and Identification Discussion and Recommendation Expand into Corporate Advertising Videos Fee Negotiation for New Children’s Programme Accident at Studio “Banks – friend or foe?” – A New Documentary of VYP Re-commissioned Drama Series Ethical Issue Comprehensive Analysis Contents

17 VYP should negotiate the re-commission fee and the actors’ contract Negotiation on the re-commission fee Built studio sets Reasons for lowered re-commission fee Mature research and ideas Not Applicable Outdoor scenes, new sites More research and new ideas Expertise from previous series Applicable Planning and arrangement John Strong’s contract problem AprMayJunJulyAugSepOctNovDecJanFebMar John Strong's contract Latest plan and shoot

18 VYP Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Comprehensive Analysis Contents

19 VYP Should Pay More Attention on Ethical Issues Employees High-quality TV Program Charity and Public-benefits Programmes Development of the Youth

20 VYP Overview Prioritization and Identification Discussion and Recommendation Ethical Issue Comprehensive Analysis Contents

21 Comprehensive Analysis of the strategy Action Plan Prioritized No.1 Prioritized No. 5 Penetrate the market of corporate video Initiate production meeting with clients Hire experienced corporate advertising staff Issues Accept a lower fee Sell the merchandise itself Consider leasing the merchandise rights Cut cost in every possible way while maintaining quality Improve the IT system and enhance the employees’ performance Negotiate with BBC on the re-commission fee Execute more strict cost control Negotiate with the actor and smooth the shooting plan Respond to the builder’s injury positively Improve the IT system and the production team Balance VYP’s profit and its corporate social responsibility Successful Programmes Favorable Profit Corporate Social Responsibility A new documentary of VYP Expand into Corporate Videos 1 The New Children’s Programme Accident at Studio Re- commissioned Drama Series VYP’s Aim

22 z Thank You! VYP

23 Prioritization and Identification Expand into Corporate Advertising Videos Fee Negotiation for New Children’s Programme Backups

24 Prioritization and Identification IssueReputationW1FinancialW2UrgencyW3CreditPriority Prioritization Chart

25 Expand into Corporate Advertising Videos The Changing Face of Corporate Video Industry in UK Traditional approachWhat works today BudgetLargeSmall – Medium Typical message delivery Actor, presenter or professional voice-over Real people saying real things Frequency of production1 or 2 videos a year10’s or even 100’s of videos Scope of video production Broad – a single video covered as much ground as possible Narrow – video focuses on a specific audience with a targeted message

26 Expand into Corporate Advertising Videos The Changing Face of Corporate Video Industry in UK Traditional Uses of Videos - TV Commercials -Sales Presentations - Homepage of your website. Uses of Videos Today - Customer Testimonials - Video Case studies - Product ‘explainer’ videos - Product FAQ - Event promotion - Recruiting - Viral Video - Content marketing - Infomercials - Interactive video - Video press releases - Community relations videos - etc.

27 Fee Negotiation for New Children’s Programme £ Revenue6,300,000 Program fee6,300,000 Revenue/h350,000 Total hours18 CostC Profit6,300,000-c £ Revenue4,095, s Program fee 4,095,000 Revenue/h 227,500 Total hours18 Merchandised sales0.4s Costa+0.3s Program costC Merchandised costb*0.75*0.4 Profit4,095,000-c+0.1s Breakeven sales 22,050,000 The Breakeven Sales of Merchandising Sales


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