Michael's Video Service
Strategy and Implementation Summary
We plan to initially market our products and services as an alternative solution for television networks and video companies. These markets were selected because of their size, trends in technology, our experience with video production, our industry contacts, and an overall belief that they are most appropriate to initially target.
We aim to rapidly develop alliances with the major high schools to enable us to gain credibility as the best video production company. Our market strategy will be to advertise and capitalize on the products and services that our competitors do not have.
4.1 Market Analysis Summary
We expect to compete as a freelance video production company in the broadcasting industry. Companies in the industry are involved in the creation and delivery of various types of programming to consumers. Much of that programming is recorded on film, tape, or disk, so that it can be seen or heard repeatedly by both new audiences and those that are familiar with it. Many of the events that are broadcast live are likely to be recorded, with some or all of such events to be rebroadcast at future times.
Within this national market, Michael’s Video Service will initially focus on supplying its services to the high school market market. We intend to be the only freelance video company in the city and state to offer our services to companies of any size. Our goal is to be on the freelance list for all the major television networks for news and sports coverage in the southeast region of the United States.
4.1.1 Market Segmentation
Our customer is defined as any individual or organization that has need for one of the services we provide. Our target customers are as follows.
- Television stations
- Video production companies
- Movie directors and producers
- High schools
- Future brides and grooms
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Video production companies||10%||150||165||182||200||220||10.05%|
|Movie directors and producers||10%||500||550||605||666||733||10.04%|
|Future brides and grooms||20%||900||1,080||1,296||1,555||1,866||20.00%|
4.1.2 Competition and Buying Patterns
Customers are expected to use our services based on traditional factors:
4.1.3 Distribution Strategy
We plan to market our services through diverse channels including the radio, print advertising, and television. These channels are most appropriate initially because we are seeking to gain recognition in the industry. Another element of distribution is our plan to work with established video production companies. This will provide access to their distribution channels and reduce our marketing costs.
4.1.4 Service Business Analysis
The major companies that compete in the market are:
- Synergy Productions
- Local Television Stations
- Video Production, Inc.
- Gene’s Video Productions
- Denton Video Service
- VIP Productions
All of our competitors specialize in one aspect of video production. We are a diversified company and we believe that there will be no down period for us. We are not seasonal based, our services are offered throughout the year. With our diversity, we will be able to attract the larger organizations that like to entrust one company to handle all of their affairs.
22.214.171.124 Possible Barriers to Entry
Michael’s Video Service will benefit from several significant barriers to entry which include:
- Strategic Alliances
- Experience in the field
4.1.5 Strategic Alliances
The company plans to form strategic alliances with clients who require a freelancer to cover various events for them. Michael’s Video Service will also develop strategic alliances with video production companies and work with them as a sub-contractor.
4.1.6 Value Proposition
By using Michael’s Video Service to cover various events for them, companies will be able to save time. They can then use this time saved to focus on their core competencies and the things that they do best. We are in business to provide a service that is second to none. As such, we guarantee that our customers will receive first class service and a final product that is well worth the money invested. To that end, we guarantee a full refund in the event that a customer is not satisfied. At Michael’s Video Service, we take pride in our work and it is our aim to be the best at what we do. We will conduct our business in a professional manner from our methods and character to our standards and ethics.
4.2 Sales Forecast
The following table and chart show our planned sales.
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$4,800||$5,700||$6,600|
Sales, Distribution, and Marketing Channels
In marketing our products and services, we will rely on a combination of the following channels:
- Direct approach
- Yellow pages
- Radio and television
- Mail order
- Word of mouth
- Trade shows
Alliances with video companies that have industry credibility, presence, and distribution are key to our strategy. In monitoring our services and market position, we will rely on feedback from customers with whom we have relationships. This will be done through direct sales. The message associated with our products and services is high quality for less money. Our promotional plan is diverse and will include a range of marketing communications.
4.2.2 Pricing Strategy
We plan to set our pricing based on market value. Our actual price will be based on whether our services are required on a daily or an hourly basis. It is anticipated that we will charge $300 per hour and $1,000 per day. For out of town travel, additional charges will be added for expenses.