Cases

Developing a Business Plan for an Advertising Agency

Challenge

The client, a Mumbai based advertising agency specialises in radio and television publicity services. The top management of the company is highly regarded in the film industry, and is known for their ethical work practices as well as their strong network of relationships in the industry. The who?s who of the film industry looks up to the top management for advice on film promotion on an on-going basis. However, the top management, knowing the potential of the business of professional advice on film promotion and marketing, wanted to formalise their services by offering end-to-end services, including naming movies, promotion of movies through allied media services including public relations, advertising, merchandising, music promos, etc. Thus, the top management requested UC to assist in the process of preparing a business plan for this new venture.

Our Approach

To develop a business plan for the agency, UC adopted the following approach:

  • Conducted secondary and primary research on the trends in film marketing and promotion in India
  • Prepared an activity chain of film marketing and promotion and mapped different players on the chain
  • Analysed and identified key issues and opportunities for each service segment like TV advertising, public relations, in-film advertising mechanisms, etc
  • Profiled key international players providing end-to-end film marketing and promotion services
  • Profiled key competitors in the following different service segments -
    • Public relations officer
    • Advertising agencies
    • Event management companies
    • Public relations companies
  • Shortlisted target customer groups and target segments for the new venture
  • Developed business concept and business model for the new venture. The business model included the following parameters -
    • Pin-house services versus outsourced services
    • Services offered
    • Mode of execution
    • Key success factors
    • Key risks
  • Defined a risk mitigation plan and priortised service offerings
  • Developed the following options for different business structures -
    • A joint venture with a strategic investment
    • Alliance with a financial investment
    • Fully owned
  • Developed a revenue model and a financial plan
  • Defined a promotion and a position plan
  • Defined an organisation plan, job descriptions and profiles of key people for the new venture

Results

The client received a detailed profile of the film marketing and promotion industry in India. It also received in-depth knowledge regarding competitors and the target segment for its business plan. A business model including the financials and the organisation structure was also delivered.