GAP

GAP

Proposal In-House TVC Production Services

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GAP

GAP ENTERTAINMENT

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

GAP

Current TVC Making Procedure

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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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

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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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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

GAP

Gautam at helm About GAP

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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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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GAP ENTERTAINMENT

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

GAP

How GAP is different

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GAP

GAP ENTERTAINMENT

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

GAP

How GAP will do it

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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

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)

GAP

What do we want from the Agency

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GAP

GAP ENTERTAINMENT

§  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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GAP

GAP ENTERTAINMENT

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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GAP

GAP ENTERTAINMENT

THANKING YOU