gap inhouse production agency proposal
TRANSCRIPT
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GAP
GAP
Proposal In-House TVC Production Services
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Discussion Guide
§ TVC Making Procedure (Current) • Film Department • Quotations • Value Adds • Creative wish lists • Monetary Considerations
§ TVC Making Procedure (Proposed) • Structure • Promise and Benefit • Monetary Considerations
§ About GAP
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GAP
Current TVC Making Procedure
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Film Eco System : Inflationary
Agency
Producer 1
Producer 2
Producer 3 Director
Line Producer Client
Costs increases at each stage of the chain. Agency 15%, Producer 25-35%, Director at a percent of base cost. Line Producer with margins from vendors
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Motivations : System Demystified
§ TVC Considerations • Script Suited • Budget Considerations • Creative Preferences • Agency Revenue
“Creative and Budget considerations paramount so little room for revenue”
§ Film Departments role • Extension of Account Management • Operations Pre and Post approval • Limited Production Knowledge • Film Department Preferences
“Extracting real value from smart production usually an issue. Again Revenue potential not achieved”
TVC Consideration : Best Creative output with maximum revenue for all. Film Department : Add the might of Production and the ability to gradually produce TVC’s inhouse.
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Motivations : System Demystified
§ Business Role • Profitability Maximization • Client Satisfaction • Creative Output
“Usually compromised on all fronts”
§ Process • 3 quotes • Treatment Notes • Negotiations • Selection
“The mark up in any outcome would range between 30%-40%, which is the starting point. Royalties, Edits, Adaptations pile on the outflow.”
Business : Keep Client & Creative happy while pushing up revenue for the agency. A key KRA but limited success keeping all parties happy. Process : Has its lethargy but the real money is being made outside the agency. Can we change this fact particularly?
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Imperatives
§ Deliver Stellar Work • True to Brief • Creative Output • Business Success • Best Directors and Superior Production Values
§ ROI from a Clients Perspective • Cost Reduction • Creative that is Recognized by Sales and Awards •
§ Agency Revenue • Maximization
The key driving factor are these three objectives
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GAP
Proposal
Don't change anything from an agency point of view. Look at production seriously to Maximize Revenue. Build an agency production extension without incurring any costs.
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TVC System : Proposed
Agency
Producer 1
Producer 2
Producer 3
GAP In-House
Producer 4
Director
Client Line Producer
Reduce the percentage from Producer, Line producer to In-house Producer thus saving min 25-30%. Can be done for most project while older system is still in place with big Producer-Director arrangements.
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Proposal Highlights
§ Some things remain the same : • Creative gets to select their wish list of suitable Directors • Creative Focus (infact additional firepower by way of Directors)
• Film Department (increases service and quality control quotient)
• Business (commissions remain the same)
§ While there are changes : • Production ability enhanced dramatically • Production benchmarking to enhance accurate estimation and improve profitability
substantially • Production money comes to the agency (added revenue)
• Ability to source and reach to specific Directors, in sink with the Films department • With GAP providing in-house agency production, negotiation ability dramatically improves • Film making expertise (bring in a lot of work in-house that is going out to Production Houses)
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Tangible Deliverables
§ Concrete Value adds • Around 30% production money saved as working on actual cost • Creative Reach – Agency gets and interact directly with the Director of their choice • Speed and Efficiency : Roster of unlimited International Directors and 50+ Indian directors • World best Directors from across the globe and category specialists at the agencies doorstep • Production Cost identification and accurate benchmarking for client review • Sourcing facility to contact Directors selected from agency directly without middle men that
take 15% for their use of Google • Transparency – Costs laid out threadbare and quality check by creative's at every level • IPR of the TVC with the Agency, so post Master delivery every other job too at actual cost to
the agency + rights and royalties free (billed to client at rates decided by the Agency)
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Monetary Consideration
§ TVC production at a Actual Cost + Arrangement
§ GAP would work at a per project fixed fee of 10% over cost of production, saving the Agency a minimum of 20-30% which is straight additional revenue
§ The actual production expense of the TVC can be paid to GAP or Agency can even pay to the vendors directly
§ GAP takes up productions that could maximize agency revenue • Directors of Agencies choice • Agency gets 3 quotes from producers for client satisfaction • GAP will deliver value to the client and supreme value to the agency by way of
production savings plus maintaining the optimum quality of the TVC
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GAP
Gautam at helm About GAP
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About GAP
§ Rich Experience • Gautam Ailawadi founded GAP Entertainment (Pvt.Ltd. Company) in 2008 • Produced 60+ TVC projects in 6 years on inception plus 40 channel promos
• 35 TVC done separately as executive producer with other production houses
• Same module of working at actual cost plus 10% fee implemented by GAP with Sony Entertainment, Saints and Warriors, Star India and Origin BeanStalk
(Empanelled as a fixed Producer & Produced around 50+ tvc’s/promos with the agencies/channels on the same arrangement)
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About Gautam
Gautam Ailawadi
• A Producer with over a decades experience working in Advertising Agencies
• Worked in Leo Burnett /creative dept for over 4 yrs in their New Delhi & Mumbai offices
• Moved to work as Production co-ordinator in White Feather films for Kaante - the movie
• Worked with Ogilvy & Mather/Films dept for over 2 years before finally deciding to take a plunge
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Showcase
§ GAP Entertainment P.Ltd Showreel as Producer gapentertainment.com / youtube.com/user/gapfco/videos
§ Gautam Ailawadi as Executive Producer for Morse Code Films morsecodefilms.com / youtube.com/watch?v=oPAO81tCH1Q
§ GAP as a Producer for various TV Channel Promos gapentertainment.com
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GAP
How GAP is different
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At GAP we believe in Bridging the GAP
§ Between Client - Agencies Demand and Finished product
§ Between Idea and Execution
§ Between the Creative Team and the Director
§ Between Client Budget and Actual Estimates
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GAP
How GAP will do it
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Creative's are hungry for Good Directors
§ We give them a selection based on the script idea from a large panel of Directors covering all the product categories
• Freelance Indian Advertising/Promo Directors
• Foreign Advertising Directors
• Bollywood /Hollywood Feature Film Directors • Internet / Viral Directors
Creative team is wanting to work with Best Directors, which we will give them. Hence if we maintain quality & the requirements of the Director, Creative does not interfere who does the production.
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Transparent Processes & Dealings
§ In devising breakup for each project on a actual cost basis thereby reducing cost mark-ups at various levels
• Production House mark-ups per head
• Production house margin
• Line Producers inflated costs
• Directors margin per project
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Production Knowledge and Experience
§ In creative understanding, as the founder himself has an Advertising background thus it helps in diminishing production expenses and uplifting creative issues at all levels
§ GAP allows a great quality product at the most optimum cost
§ With this approach GAP has been successful in hiring freelance Directors and producing around 50+ tvc’s / promos in-house directly for Sony Entertainment, Saints and Warriors, Star India, Origin BeanStalk which they earlier used to outsource to individual production houses.
§ Direct access to many Directors, DOP’s, technicians, equipment vendors and post houses (Indian and Foreign)
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GAP
What do we want from the Agency
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§ A opportunity to produce Agencies bulk TVC § Production House makes money on the creative talent (Director) for the TVC’s, with Agencies (creative and films dept) support, GAP can hire the same/equally
talented Director as freelancers and Produce the Commercials in-house.
§ Considering GAP as agencies In-House TVC production wing
§ GAP to quote for every script which agency shares with other 3 Production houses
Commitment
The advantage to the agency hiring GAP is that incase creative or client is hell bent on a specific Director/Production House and yet script is shared with GAP, Agency still gets to know the exact cost of the TVC & hence can further negotiate with the other production house on the cost
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How does Agency Benefit
§ A discounted cost over and above the regular costs (saving of at least 25%-35% from Production House margin)
§ Unbelievable bulk discount over the regular price once we fix our vendors & post studios directly, for all our TVC’s
§ A large list of Directors to choose from (including the ones who run their own Production Houses) § Low costs at all levels (billed at actual, supporting provided to agency) § Hassel free direct dealing between Agency - GAP - Director § Operational efficiencies at all levels of production § Client - Agencies relationship strengthens § Efforts to bring on board the same Directors who are already working with the agency, this time as freelancers so that the creative satisfaction is maintained § Films dept is involved in billing too and soon graduates to Line producers job § Creative supervision and transparency at all level of production § IPR of TVC given to agency at no extra cost
GAP will provide a great creative product, at actual cost
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THANKING YOU