Business Description
First, the business is a life-long dream to start a film production company and the vision is to produce several motion picture projects specializing in mostly psychological suspense thriller action films. The mission statement for the company will be to put ethics first and foremost in marketing research, preparation, writing, interviewing, presenting, development and production of the product. The brand structure will be creating a logo and name that the public can relate to called Gilt Entertainment Corporation as the parent company. Hence, the word Gilt relating to gold, prestige, money and a solid company that is in the eyes of investors and stakeholders on a solid foundation. The hierarchy will consist of the film products that are made under the parent company and each will have their own production name and company under the parent company. Still further, this is to save the parent company from losing all its assets in case one of the films should fail.
The organizational structure that the business will take is to keep to the company’s mission statement of social responsibility to the community. Plus, to use a decentralized structure, so everyone in the company will be able to contribute to its growth by providing input and ideas. The company will consist of a Chief Executive Officer, Chief Financial Officer, President, Vice-President, Treasurer and Secretary of the corporation to keep track of corporate books to prevent piercing of the corporate company and divisions. The President, Treasurer and Secretary will be one person and in the State of Nevada, because Nevada does not have State tax saving the company considerable amount of money.
Equally important, the organizational structure needs to be functional, and leadership should be managed so all employees can contribute to the creativity by generating ideas, collaboration, and innovation and increase the future value of the company and to receive optional performance.
In addition, with all divisions there will be cross-functional teams in order to collaborate effectively. The need to coordinate efforts throughout the company is also called “differentiation”. Finally, we will have an outside reputable accounting firm to audit the books done in-house to help alleviate error.
Moreover, the company plans to be competitive by first doing extensive research and writing, because the script is the key element that will give success to the company. It is imperative to have the best writing talent and direction. The cast will be A and B level key casting done by top casting agencies with the director and sale’s agent input, because he will also be the creative talent involved in each project. Again, the key brand is the parent company, while the hierarchy brand will be the sub-divisions for each film project. Hence, the focus is growth in revenue sales from the distribution companies by Gilt Entertainment Corporation division doing their own advertisement and promotion.
Finally, the market for our films will be young adult to mature audiences which will satisfy their needs and wants of entertainment. Furthermore, the core value must always maintain the highest ethical standards and maintaining that image throughout the existence of the company. Hence, the brand will be differentiated by providing entertainment for most audiences by teaching part of history, along with drama, action, adventure, culture and a film that does not insult other cultures so the films will have worldwide appeal. In addition, it is critical to do extensive marketing research.
In the same way, licensing and merchandising is a key way to bring in extra revenue to the company. Add to this, product placement is a unique way that vendors can add their product appeal to the marketplace and bring is extra revenue to the company at the same time. Product placement can sometimes bring in millions of dollars in revenue to the company.
In conclusion, the short-term objective is to finish the planning by setting up the policies and procedures of the company and bring in seed money to assist with the development (research and writing) which may include travel. The long-term objectives are to have continuous flow of scripts and products coming into the company, to provide a continuous flow of revenue. Productions can continue for years to come, provided the company is ethical by negotiating with vendors, investors, stakeholders and caring about the employees by providing good benefits and so everyone shares in the excitement and revenue from making a film.
Code of Conduct
The business as stakeholder code of conduct will be to honor the four areas of corporate social responsibility in economic, legal, ethical and philanthropic. All individuals affiliated with Gilt Entertainment Corporation are stakeholders including governments, stockholders, community, schools, customers, board members, general public, related industries, environmental groups, environment, competitors, vendors, employees and their families. The company will create jobs to the communities around them and give technological advances to society by hiring high technical personnel, builders, etc. in building the set designs and providing safety for the stunt men and all employees. Finally, the company will volunteer to help philanthropic causes without the sole motive of increasing its sales, but the motive solely to give back to society.
Furthermore, the company will abide by all legal standards when hiring and providing workers overseas plus the corporation cannot make their own rules above the law which is the ethical concept of moral rights. It is understood that a corporation is just as responsible as an individual in following the law, meaning the law does provide a basis for any ethical decisions on all issues. Equally important is to provide proper documentation to investors and stakeholders when required and to bring “continued profitability and corporate harmony.”
Finally, the company as stakeholder interests should be that they are all working together and coming to mutual agreements so that the community is safe by the company providing the proper guidance and technical expertise in film production services. Since the environment is also a stakeholder, the company needs to provide a safety for the environment as well. To this end, the company will reduce liability and prevent lawsuits given by the community even if there are no laws in effect overseas to protect the community around it.
Marketing Plan
First, in focusing on the marketing strategy and marketing research ethics still has to be maintained throughout the process. For example, if the principals were to do primary research investigating an individual by interviews for the film or documentary, they would have to use proper protocol in approaching individuals to interview. In this case, for the film project to interview for the documentary we will have to interview friends, enemies, acquaintances, family members of anyone that is associated with certain royals for the documentary.
Furthermore, marketing consists of the four P’s which are product, price, place and promotion. In addition, the principals of Gilt Entertainment Corporation will look at the micro and macro marketing environment. The product is the film script that will be marketed to investors for investment and then once the film is made the product will be the finished film product. In addition, the price is the cost it will take to make the film, which will be given in the financial section of the business plan. Add to this, the place is which markets the film will be distribution and the distribution channels that will be used to distribute the film. Finally, the promotion is the various techniques used to promote the film.
In fact, when the budget is tight it will not be a problem to advertise, because the company can do co-op advertising where they share in the costs of advertisement for the company. In addition, attending trade shows in Hollywood or film festivals where the owners will meet key distributors. The first goal is to increase the company brand name by getting out there in the marketplace and visiting as many film entities as possible, then to promote the film project afterwards.
In conclusion, the macro environment is branching out to Global markets by having film distribution systems worldwide. “The macro environment situation will show the trends including the demographics, economic, technological (research), political/legal, socio/cultural—the can hurt or help the film productions in the future”. The demographics will be young adults on up in worldwide market and economic is a tentative film budget plus company start-up costs to be given in finance section of the business plan.
Finally, ideas to increase marketing in promoting the business that is economical and of no cost except for time involved is using twitter, facebook, different multiple blogging accounts and by joining the local community Chamber of Commerce. Also, is in film industry directories and marketing groups.
SWOT Analysis
Listed here is the analysis of the marketing plan SWOT pertaining to the company’s strengths, weaknesses, opportunities and threats and the benefits of marketing research to come to the conclusion of this analysis. Third, are the costs of these research activities itemized and included in this section of the proposal and marked “Exhibit A”. Finally, the focus of the main strategy is to bring in profits to the company, by providing sales and marketing services to help other producers or consumers while waiting on films to get financed. To this end the benefits of proper research is the right SWOT analysis to save the company from downfall in the long-term.
Opportunity and Issue Analysis
Opportunities (Internally)
We have support of the entertainment industry celebrities to come on board to help market our services once financing is in place. In addition, we will have integrated marketing communications network cross-functionally through every department. Furthermore, the company can add heath benefits and 401K profit sharing to their key employees that are with the company year round, to give incentives and less chance of turnover.
Opportunities (Externally)
There will be partnerships of several film projects using cross-promotion of studio theatrical and home video divisions in the U.S. and abroad. For example, with Warner Bros. and Warner Home Video Company there will be shared joint opportunities in interactive games, home video, merchandising, including music and product placement with other entities like Mattel, car dealerships, elite or luxury enterprises. Still further, because there is licensing there will be new products via The Cartoon Networks and animation or TV series.
Strengths and Weaknesses
Strengths (Internally)
The consumers will be familiar with the film’s brand image because the plan is to promote the film(s) extensively. In addition, the sales and distribution will be done internally, if at all possible, to save of most of the money going to outside distributors. The company may need to sacrifice domestic distribution to a major distributor. However, foreign distribution can be done by smaller distribution companies. Add to this, the internal distribution arm will consist of inside sales persons to attend major film festivals worldwide to negotiate deals with outside distribution companies. Finally, marketing channels will be improved.
Strengths (Externally)
The distribution channels will be throughout the world specifically in Europe (especially Germany and Monaco), China, Philippines, Middle East (except war stricken or Terrorists areas), Canada (especially Toronto and Vancouver where they have tax incentives) and Brazil. In fact, China Film Co-Production Corporation (CFCC) was founded in 1979 administers assistance to producers from abroad to get permits, examines finished products, handles regulatory issues, communication with partners overseas.
Weaknesses (Internally)
The weaknesses are being able to portray the right communication to the writers and directors, because they need to work together to create the right vision of the film. Oftentimes, the writer will be the consultant on the film so he can give his thoughts to the story line and the director can see that the vision was followed through. However, the project will be weak if they do not work together as a team. In addition, it can have the same affect with the crew and the production manager. The people working on the film should all work as a team, otherwise there will be arguments on the set and it will cost the company money if they go overtime and over budget.
Weaknesses (Externally)
The weakness can be bad scripts that are picked by producers in house that can have an effect on worldwide appeal. For example, movies may have to be edited to be suitable for certain countries like India or the Middle East, because there are certain cultural differences that can give insult to the country even though it is authorized to be shown there. Sometimes a production company will not know the effect until the audience sees it.
Finally, competitors may have high-technical advances in their information technology systems in-house that can be their advantage over the production company. In addition, regulations of foreign companies similar to what was mentioned above can deter certain films from being shot in those countries. To this end, it is critical for producers to research the countries they plan on shooting the films and not always base it on the external environment vendors helping them out. Their own researchers should go over there and do scouting, etc.
Threats (Internally)
Financing may be hard to achieve due to having limited resources in startup of the corporation. Therefore, to achieve that objective the goal is to setup a co-production entity with another producer that will bring in funding. For example, postproduction services and equipment would be the equivalent of cash, because it will get the film completed. Although that is the end result in making a film, it can be the beginning of negotiations with other firms to bring in the startup capital.
Information technology is necessary to protect the computer systems and maintain proper records for budgeting the films, making scheduling, scouting, setting up the production teams, etc. Most importantly, to protect the internal environment from terrorist or hacker threats, which can destroy everything the company has built up to this point.
Threats (Externally)
Companies overseas have increased their regulations due to threats inside their countries from foreigners and our services will be able to compete after the startup stage and after the development stage. However, now there is the external competitive environment raising their costs due to new regulations and cost-of-living increase worldwide. The company needs to use truthful advertisements in promoting our services and films worldwide that do not insult other cultures.
In addition, terror threats are on the rise since 9-11 and the production company in a major city, local city or abroad needs to be prepared and on alert. For example, there are high profile stars on locations and on stage overseas, plus the production personnel needs to be heavily insured in case of disaster by terrorists, earthquakes, floods, or a star becomes ill or deceased due to injury on the set. It is important to have high-profile protection because prevention is better than the cure.
Operations
First, in focusing on the strategic mission of operations is to provide quality services to the customers who are the outside production companies that outsource to the company to assist them with their film productions. Next, to provide entertainment to the customers who are the people that go to the movies? In addition, the operations of the organization is to maintain the concepts of best practices by providing proper communications via internet protocol, security protection and disaster recovery integrated throughout the organization.
Operation’s is one of the key main factors in the business besides marketing and finance. Marketing gets the information from the public to fill the consumer’s needs, while finance provides the cash. Then, there are the business systems that fall under them such as Human Resources, Accounting and Information Systems. The main thing that Operations does is to make decisions on the process, quality, capacity and the inventory. All the Department Heads (including lower level Managers and Assistant Managers) have to be carefully integrated with one another so that there’s cross-functional decision making.
Distinctive Competence: Distinctive competence is having the competitive advantage in the marketplace. That is done by doing something that is unique in the marketplace that beats the competitors and that is Gilt Entertainment goal by providing films that are market driven to all age groups. By first having talented and skilled production staff, excellent equipment that is checked by quality control, a good location of the facilities, enough inventories such as cameras and equipment needed to do the job, to provide the needs of the consumer. Plus, there has to be good relationships with the company’s customers and suppliers.
The producers are the key principals in the company and they are the ones that option the film projects and make the major decisions along with the director. The director is usually also a major contributor because the director is the one that makes the key decisions based on the financing and budget of the film, location and casting. The unit production manager is the person that handles the day-to-day operations of the film.
The major principals will consist of the following principals: Producer
Director
Unit Production Manager
1st Assistant Director
2nd Assistant Director
Production Accountant
Production Supervisor
Production Coordinator
The Process and stage of a film project:
- Development
- Pre-Production
- Production
- Post-production
The first stage of development is the optioning of the first film project called “Dead in the Water” which is for the young adult and older audience. The scripts are already written. The second stage is the pre-production process which is casting and music composition and working with the director to find the best suitable stars for the film. Third, is production of the film projects and the film is finished and ready for sales and distribution (“Filmmaking, 2010”).
Development
Gilt Entertainment will start with acquiring the two films above, but the plan is to acquire several film projects to come up with a slate of forty million dollars which will include funding to acquire a twenty million dollar studio deal in a studio/production deal. The film projects will be as follows:
Movies for 2012-2013-2014
Don’t Stand So Close To Me $2.2
Logline: Fatal Attraction meets the classroom based on the 1980 classic Police song which finds Junior Honors English teacher David English the obsession of one of his students.
Tag line: “When education becomes an obsession”
Don't Stand So Close To Me. Based on the 1980 classic Police song, the script finds Junior Honors English teacher David English, the obsession of one of his students. As the school year progresses, Hazel’s fixation with Mr. English grows and a Junior Class Trip to New York City only strengthens her desires. Best friends become obstacles in Hazel’s attempt to covet her prize, as irrational jealousy leads to the disappearance and subsequent deaths of female students around campus. Fear of abandonment and rejection come to fruition when Mr. English learns of Hazel’s plans and threatens to have her removed from his class. Hazel however, will not let go of him, and she will stop at nothing to have him for herself. Just how far will she go to get what she wants? Find out as Hazel sets out on a classic romantic tragedy pathway to self-destruction in this psychological thriller.
Blinded By Sight $2.2M
The Shining meets the Silence of the Lambs in this nail biting supernatural thriller. An advertising executive left blind after a tragic skiing accident is now left with the power to see through the eyes of the first hand he touches each morning. Trapped within the vision of a serial killing, he must fight for his innocence as well as his life. And just as all the pieces of the puzzle seem to fall into place, you’re thrown a curve you never expected.
This suspense thriller will leave you WOWED!
Night of the Witches: The beginnings $2.2M
The Beginnings was the first book in the series, which chronicles the life of a young girl and how she becomes an enchantress of the dark ways. Faced with certain death or the opportunity of eternal life, Damiana is about to perform the most important sacrifice of her life. Captured and chained to an altar, Damiana’s most important victim is forced to listen to the tale of her life while he waits to be offered. In The Beginnings we were introduced to Damiana Novella, a sixteen-year-old child from Spain, who was conceived through rape. As the truth to her past was revealed, she was forced to flee for her life. Stowed away aboard a ship heading for Hispaniola, Damiana was soon caged like an animal. Her aversion towards life began. Upon her arrival at the island, Damiana found herself befriended by a group of slaves. She was then introduced to the practice of Voodoo, which she would eventually fashion into her magic.
The Big Wow $2.2M
Syd & Bret, born on the same day but to different worlds, grow up as best buds in a shady Arizona border town. Deceit and betrayal comes between them causing them to take different paths after high school.
Thirteen years later, Syd a dynamic, street-wise smart ass goes home. His baggage follows, as he gets duped in double-crossings with a “Godfather” of the Mexican Mafia for past favors.
Bret married Syd's first and only love, Thea, a strong woman with regrets. They have a temptress thirteen-year-old daughter, marriage and money issues.
Intimate lies and distant desire dance as one as Syd's choices entangle Bret and Thea into a web of past debts, blood ties, suppressed feelings and cutthroat criminals to fight for their family’s survival in this sexy, thrilling story with a controversial setting of whites, Latinos; Catholicism and erotic deviations.
DIEHARD meets CAPE FEAR (The remake)
Preproduction
The company has acquired two models so far to date that plan on acting in the first two films. The director and co-producer will be already on board with the company when it starts. The producer is responsible for hire the crew and the production team. The director is responsible with telling the story and making the creative decisions. During this stage the casting director will work with casting agencies to acquire casting.
Next, the location manager will scout locations matching the scripts financed. In addition, the production manager will take care of the production schedule and budgeting. Add to this, there are an audio director, production sound mixer, sound designer, composer, production designer, art director, costume designer, make-up and hair designer, storyboard artist, and choreographer to coordinate the dance.
Production
The film is shot and the crew may be outsourced from another country if the film is to be shot in Maui and in Louisiana. There will be human resource management’s job to be sure the right visas are in place for the production team, cast, etc. after scouting and their job is to be sure the company meets external regulations. There are cultural, ethical and political issues to be aware of that will need to be addressed by the research and development team. The opportunity with outsourcing is it is more economical and saves the companies time, because production management will be done in another state for this particular production only.
Postproduction
The film editor is in charge of postproduction and this is the finishing touches of the film including sound, with “two workflow variants: one using entirely film, and the other using a mixture of film and video”.
Distribution and Exhibition
The sales team will be in-house to approach domestic and foreign distributors. The focus will be film festivals world-wide and promotions using casting for television programs promoting the films before they hit the screen. To this end, the value creation from a global context plan is to reach minimum 5000 screens, which could run the cost up in promotional costs. However, the sales could double then if it was done on only 1000 screens.
First, the company will utilize technology to make the business more effective and efficient by focusing on the mission of satisfying the customer who is the moviegoer and/or other producers that the company will assist in production services plus to keep the vision of making a profit. Furthermore, in order to be more effective and efficient IT systems needs to make plans based on the budget allowed and to focus on a system for contacts which is Customer Relationship Management. In fact, it is the financial management job to give approval on IT services based on what the company can afford.
Next, IT should setup CRM around the types of services the company will offer. Before making its first film, the company will have in-house departments of marketing, finance and accounting. Once the film is made marketing will be handled by outside sales representatives that will approach distribution companies worldwide and this will take care of the external environment. Finally, the only need for supply chain management would be video, CD’s and sales of movie products that are not downloaded on line.
In fact, there are also business class products and services from Time Warner Cable including the phone, internet, Ethernet, cable TV and bundles. First, is chosen the communication services to help customers efficiently with flexibility and reliability.
Finance
Executive Summary
The mission of finance is to reach the goal of income revenue stream from the films to Gilt Entertainment investors and stakeholders. The goal is to secure global distribution, premier at Cannes and other worldwide film festivals in 2011, create ancillary merchandising opportunities and video games, franchise opportunities and profitability within the first year of release so investors will have a return on their investment. The producers are selling 100 investment units of $150,000.00 per unit in the first film “The Big Wow” film project “the movie, LLC”. The proceeds will be used for development, production, marketing, and release of the film “Dead in the Water” If a profit is generated each investor will receive the following:
In addition, the first film “The Big Wow” film project “the movie, LLC”. The proceeds will be used for development, production, marketing, and release of the film “The Big Wow” If a profit is generated each investor will receive the following:
· Recoup initial investment
· 20% of initial investment
· Share any profits generated
Cash Flow Analysis
First, is the mission of the cash flow is first to obtain seed money needed by small loans from private investors to keep the production company going, while pursuing the major film deals. The short-term focus is to keep at approximately fifty thousand liquid in cash flow reserves to pay expense outgoing while maintaining continuous cash flow incoming. Furthermore, this is done by doing Media Management, Production Management and other management jobs to keep the company afloat until the major funds come in.
Furthermore, a positive cash flow is important to raise the confidence level for all stakeholders, otherwise problems usually erode the confidence and it can hurt future investments of stockholders and lenders. Therefore, it is Gilt Entertainment Corporation’s goal to have two or three film projects going back-to-back so investors see constant activity but always going on within budget.
In summary, “the benefits of cash-flow analysis and any problems that could arise if it is not conducted” is that a business owner can increase their confidence in running their business if their income and expenses balance correctly and they see they will have enough money to cover the months ahead.
Management Summary
The mission of management of Gilt Entertainment is to collaborate with teams so the functions of management not only to be cross-functional internally but the resources externally go smoothly and show profitability along with integrity. Furthermore, below is the list of the “management team in the business (including advisors, consultants, accountants, etc.” Second, are the team concept, group dynamics, and the strengths and weaknesses of business teams? Third, is a description management philosophy concerning communication and organizational culture? Finally, is what leadership actions should be taken to adapt the business should manufacturing or distribution have a labor strike that may last to six months. Next, in the scenario if three more competitors emerge who are now in direct competition with the company in product quality and price? Furthermore, if there was a layoff of half the employees and the rest are disheartened as a result.
Equally important, is group dynamics in developing and enhancing the talent of the team, by encouraging strong principals as emotional intelligence, data mirroring, setting goals and introspection by providing the necessary skills executives and team leaders need. Furthermore, there needs to be constant feedback from the various departments so that issues can be taken care of before problems arise. Introspection means to evaluation oneself and gap analysis and emotional intelligence is by managing the emotions and actions of the teams. Finally, data mirroring is providing constant feedback and learning objectives to provide competent leaders.
In fact, the strengths of having the right business team are having the professionalism and expertise of everyone working together for one common goal. The management philosophy concerning communication and organizational culture is communication by effective listening in our leadership strategies, by avoiding non-listening techniques such as monopolizing, pseudo-listening, selective, defensive listening, ambushing and literal listening suppliers and regulators and of course it’s important to work in a team environment with one mission satisfying company goals
Finally, the organization is responsible for being sure film programs are monitored with ethical value by preventing fraudulent activities internally and externally. In addition, this also includes timesheets, scheduling of work tasks, accounting and finance, research and development, human resources, marketing techniques in doing survey analysis and through each department specifically in top management
(Business Plan is not to be copied in any form, it is the property of Marlene Mendoza)
(Business Plan is not to be copied in any form, it is the property of Marlene Mendoza)
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