Week 2 Project: Business Plan – Part II

Industry Analysis and Trends

Industry Overview – Companies in this industry produce and distribute media on the lines of motion pictures, documentaries, promotional videos, music videos, broadcast commercials, short films and corporate videos. Examples of top ranking production companies in the U.S are Disney, Fox, MGM, Paramount, Sony Pictures, Universal and Warner Bros.

Market Opportunity – Sonder productions will have the opportunity of providing its high-quality, creative and affordable video services within the production industry around the state of New Jersey.

Barriers to Entry – Setting up a studio infrastructure could be challenging if the funds are not acquired in time. Establishing a strong network to receive a consistent flow of clientele could take a while so that will be the company’s first area of focus.

Long-Term Opportunities – Once the company gains its strong foundation in the state of New Jersey, it plans on expanding into the New York area, considering its level of exposure and attention in relation to the production industry. Once the company gains popularity among the industry, it will begin expanding on a global scale. The company also plans on creating a decent sized production studio with multiple sets for serving several clients at once. In the future, the company plans on investing in industry standard equipment for all its production endeavors.

 

 

Target Market

Market Description – Sonder Productions is entering into the video services/production market. The company will initially target the city of Newark, New Jersey and gradually expand into the neighboring cities. However, the company plans on accomplishing the state wide network expansion within the first year of service.

Market Size and Trends – The initial target market would be Newark city, whose population estimate from the 2013 statistic is 278,427. The industrial sector in Newark is prominent and therefore turns out to be a great opportunity to provide video services to corporate companies in the area. The creative side of production will also be put to good use in Newark considering that the big production companies are based in the neighboring cities like Jersey City, Morristown, Edison and Montclair.

Target Customers – Customers are government, companies, organizations, NPO’s and individuals looking for high-quality video services in the area of Newark. The customer profile would be large and small business looking to establish a brand identity through means of visual media. Another characteristic would be companies looking to send an impactful message to their audience through the means of visual media based on viewer psychology and anthropology. The customer profile would also fit companies looking to promote themselves on the Internet as well as television.

Market Readiness – Like I said earlier, I will be focusing on providing corporate video services initially. The corporate sector in Newark is constantly looking for video production services to either promote a new product or promote the company’s brand. They are mainly looking for value-added corporate video production. This basically means that the value today is in how you apply video to the market, not in how you make the video.

Strategic Opportunities – Sonder Productions will have the advantage of gaining a strong network within the corporate industry in Newark. This will provide the company with the needed exposure to venture into the rest of the state.

 

  

The Competition

Competitors – Blackburst, Perlow Productions and NG production films.

Advantages – Blackburst is a team of creative artists and skilled technicians effective since 2001. They are producers, directors, actors, engineers, operators, stylists, editors and writers. Blackburst creates videos, broadcast television, film, television advertising, film, and web video content. They are an Orlando based video production company. Their clients range from government agencies, big businesses and ad agencies to independent producers. NG production films are an Orlando video production company that has the capacity to handle client’s television, corporate and faith-based video production needs. They hold over 15 years of experience in many facets of video production including commercial production, live concerts and events, corporate training videos, camera crews, television shows and so much more. They are passionate about creating and delivering high-quality, full HD production that fits with their client’s particular budget and time frame. Perlow productions are a Philadelphia based production company whose reach of service is throughout the Philly area, NYC and New Jersey. They specialize in video production services such as corporate productions, local business videos, aerial videography, infomercials, product videos, television commercials and motion graphics. Their founder and President is Mike Perlow who basically oversees every client production.

Barriers to Entry – Sonder productions would be facing a difficult competition of video quality considering the high-end video equipment these well-established production companies use. The other factor of competiton would be production crew size and studio infrastructure. Since this business is still its in initial stage, it will take sometime to establish a strong network among its local clientele.

Strategic Opportunities – Sonder Productions will not fail to meets its clients needs in terms of creating, planning and executing. Once the ground rules and foundation are set, the company will focus on partnering with local production crews to create and collaborate independent projects.

Sources:

Production Companies – Film in New Jersey. (n.d.). Retrieved March 16, 2015, from http://www.productionhub.com/directory/profiles/production-companies-film/us/new-jersey

United States Census Bureau. (n.d.). Retrieved March 16, 2015, from http://quickfacts.census.gov/qfd/states/34/3451000.html

The changing face of the corporate video production industry. (2011, July 2). Retrieved March 16, 2015, from http://www.onemarketmedia.com/2011/07/02/the-changing-face-of-the-corporate-video-production-industry/

Video Production Trends A Look Back And To The Future | Crews Control Inc. (2012, July 4). Retrieved March 16, 2015, from http://crewscontrol.com/blog-central/video-productions-trends-a-look-back-and-to-the-future/

Summary. (n.d.). Retrieved March 16, 2015, from http://www.bls.gov/ooh/entertainment-and-sports/producers-and-directors.htm

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