1. BUS 348, Professor Lori Pack, Fall 2012
Youn Jung Chung – Marketing Plan – Shanghai Calling
Contents
I. Company Description............................................................................................................... 2
II. Business Mission..................................................................................................................... 2
III. Situation Analysis ..................................................................................................................... 3
Industry Analysis......................................................................................................................... 3
SWOT Analysis........................................................................................................................... 5
Strengths .................................................................................................................................. 5
Weakness ................................................................................................................................. 6
Opportunities ........................................................................................................................... 6
Threats ..................................................................................................................................... 7
III. Marketing Objective............................................................................................................... 7
IV. Marketing Strategy................................................................................................................. 8
Target Marketing Strategy .......................................................................................................... 8
Marketing Mix............................................................................................................................. 8
Product..................................................................................................................................... 8
Place/Distribution .................................................................................................................... 8
Promotion ................................................................................................................................ 9
Price ....................................................................................................................................... 10
V. Implementation, Evaluation, and Control ............................................................................. 10
Organizational Structure and Plan............................................................................................. 10
Financial Projections................................................................................................................. 10
Implementation Timetable ........................................................................................................ 11
VI. Summary .............................................................................................................................. 11
Bibliography.................................................................................................................................. 12
2. I. Company Description
Americatown, LLC is an independent production company behind the feature film Shanghai
Calling.
Shanghai Calling is an American romantic-comedy about modern day American immigrants
in China. Sam, a New York attorney gets sent to Shanghai on business and finds himself in a
legislative disaster. However, with the help of his friends and a romantic interest, Sam is able to
learn and appreciate Shanghai.
Shanghai Calling is a Sino-American co-production made possible by China Film Group
Corporation (China Film Co., Ltd.), Americatown, LLC, and Manifest Films. The film is
directed by Daniel Hsia, produced by Janet Yang, and features an international star-studded cast
including Daniel Henney, Eliza Coupe, Geng Le, Zhu Zhu, Alan Ruck, and Bill Paxton.
While Shanghai Calling has had a successful theatrical run in China, it also performed
internationally with sold out screenings at many film festivals despite cultural differences
between continents. Shanghai Calling has recently been picked up by a distributor and is set to
open theatrically in the United States and on digital, video on demand, platforms in early 2013.
II. Business Mission
Americatown, LLC is a production company dedicated to producing unique stories in the
film industry. While Shanghai Calling is its first feature film there are more films slated for
production, including one that is currently in pre-production.
Shanghai Calling is a film dedicated to telling a unique story that has remained fairly
unknown to the American and Chinese public until now. The film, a cultural exchange between
China and the United States, delivers a fresh perspective that has been rarely seen in the
American film industry. Americatown, LLC is committed to bringing its films and especially
3. Shanghai Calling to the widest international audience, promoting cultural understanding through
comedy.
III. Situation Analysis
Industry Analysis
Trends
The American film industry consists not only of major production studios but also
independent film. Regardless, both are flourishing despite flagging theatrical attendance due to
digital delivery options. Specifically in independent film, now there are companies like Tugg,
where audiences can demand film screenings guaranteeing an audience, in addition to video on
demand platforms not only on cable but also through the Internet such as Netflix, iTunes,
Amazon, and others.
Revenue from digital delivery options has replaced DVDs as a source of long-term
revenue as the industry recognizes and develops its focus on digital, especially now due to the
proliferation of mobile devices like smartphones and tablets.
Competitors
Independent films while a vast market with fierce competition is a small market with a
limited number of interested and dedicated customers.
Competition within the independent film industry is high and can be seen through the
number of film festivals and received submissions. Even when independent films succeed at
festivals, films struggle to get the support needed to succeed in the mass market. Most
independent films never find distribution and are quickly forgotten due to the quick pacing of the
industry.
4. However, independent films that do find distribution are still in competition with films
from major studios in addition to television.
Customer Profile
Customers of independent film are a minority opposed to customers that regularly watch
television and mainstream, large-budget studio films. However, independent films work best
catering to a specific customer profile and niche within the market.
Customers of Shanghai Calling will be attracted to specific factors of the film whether
genre (romantic-comedy), setting (Shanghai), themes, actors, as well as a number of other factors
continued in depth under Strengths.
Taking that into consideration, the target market for Shanghai Calling is Asian or Asian
American, middle class women who like romance between the ages of 13 and 49.
Technology
Technology in the independent film industry includes changes in production like cameras
but for Shanghai Calling, the most important technological improvements are in distribution.
The Internet is best for finding customers like search engine optimization and social media is
best for gaining and developing an Internet fan base. Last but not least, online distribution
services like iTunes and Netflix allow anyone to purchase and watch an independent film in the
country whether on their smart phone, television, or computer and Tugg, allows independent
films and customers to organize movie screenings at their local theater.
5. SWOT Analysis
Strengths
Shanghai Calling is unique in that it reaches the Asian-American market with an Asian
American coming-of-age and love story that was written, directed, and produced by
Asian Americans.
Not only is Shanghai Calling an Asian-American film, it also has the large production
value of a Hollywood film.
Starring Hollywood actors like Daniel Henney, Eliza Coupe, Bill Paxton, and Alan Ruck.
o Hollywood actors have appeal for different audiences.
Daniel Henney is a known star in Hollywood films like X-Men Origins:
Wolverine (2009) and also famous in the Asian market for his role in the
hit Korean-drama My Lovely Sam-Soon. He has many Asian fans not only
in the Asian-American market but also the Asian market including China
and Korea.
Eliza Coupe from Scrubs (2009) and the current popular television sitcom
Happy Endings (2011).
Bill Paxton is a famous Hollywood actor who has starred in films such as
Titanic (1997), Apollo 13 (1995), and Aliens (1986). He appeals to the
older American demographic.
Alan Ruck, most well known as playing Cameron in Ferris Bueller’s Day
Off (1986) a beloved John Hughes classic.
Starring Chinese actors and celebrities like Geng Le and Zhu Zhu and thus appealing to
the Chinese both Asian and Asian American.
6. Sold out at film festivals in the United States and in China.
The film was written with the cultural differences of China and United States in mind.
Thus, the film is accessible not only to Americans and Asian Americans, but also the
Chinese-American market.
o Comedy is culturally sensitive and both American and Chinese audiences will get
certain jokes or the same joke at slightly different times.
Asian-American family film with PG-13 rating.
Weakness
Average IMDB score
o IMDB, Rotten Tomatoes, and critical reviews are sources that potential customers
check before deciding to watch a film.
Not much human resources or capital dedicated to marketing, but will hire marketing
services.
Average Hollywood B movie despite million-dollar production value due to length and
story, a typical weakness of directorial debuts.
o There are better films in general and other lesser-known Asian or Asian American
themed films that may be better overall in terms of filmmaking.
Opportunities
“The Asian American buying power, currently at $718 billion, is estimated to reach $1
trillion by 2017” (The Nielsen Company).
o The Asian-American market has been an untapped market not only in regular
business but also the film industry and Shanghai Calling has the advantage of
7. being one of the only major film productions set to be released that deals with
Asian Americans.
The American community has always held a fascination for Eastern culture and China.
This can still be seen in recent films with oriental themes like the newest Bond film that
showcases Macau and the new Red Dawn film. Shanghai Calling however, gives a more
human and culturally meaningful educational experience about Chinese culture and
current events in Shanghai.
Threats
Mainstream Hollywood films
Popular foreign films
Piracy
Bad critical reviews
Unpredictable controversial foreign events in China but highly unlikely
III. Marketing Objective
To have a successful theatrical run of a $1,000,000 box office in the top ten
Designated Marketing Areas (DMAs) of Los Angeles, New York, San Francisco,
Honolulu, Chicago, Washington DC, Seattle-Tacoma, Sacramento, Houston, and
Philadelphia within one month. To have a successful digital run with at least 1,000,000
digital purchases of the film within three months.
8. IV. Marketing Strategy
Target Marketing Strategy
To target the Asian American market in the most efficient manner by utilizing popular
Asian American media outlets in the top ten DMAs and taking advantage of Internet marketing
technology to only target the best potential customers while also utilizing an intense social media
campaign.
Marketing Mix
Product
The product is the film Shanghai Calling. However, the product can come in different
forms. The first is the theatrical run and the experience of seeing Shanghai Calling on the big
screen whether in the big three markets of LA, NY, and SF or at a designated TUGG screening
in one’s local community. The second is seeing Shanghai Calling on the smaller screen in the
comfort of your own home through the digital medium.
Place/Distribution
Luckily the Asian-American market is concentrated and easily geographically accessible
with almost 40% of all Asian American (out of an approximately 18.2 million Asian American
population) located in three Designated Market Areas (DMAs) of Los Angeles, New York, and
San Francisco. “In addition, 60% of Asian TV Households reside in the top 10 DMAs, and
nearly 85% of all Asian Americans live in 33 of Nielsen’s 212 media (television) markets” (The
Nielsen Company).
9. Digitally, “Asian Americans stream more videos on Hulu than any other demographic
segment and over index on Netflix and Youtube – streaming in total 72% more than the total
population” (The Nielson Company).
Theatrical distribution will be in the top 10 DMAs followed by online digital and cable
video-on-demand distribution that will be accessible everywhere in the United States with an
Internet connection.
Promotion
For the theatrical run, advertising efforts will include two weeks of print advertisements
in the Chinese newspaper with the largest distribution within the top ten Asian American DMA,
a trailer commercial also for two weeks in the Chinese television channel in the top Asian
American DMAs with the largest viewer base during prime-time, and two weeks of radio
advertisements in the Chinese radio station with the largest audience base within the top ten
DMAs. The Shanghai Calling trailer will be advertised on Youtube to targeted demographics
and in Google AdSense. There will also be a social media campaign and contest for fans on
10. Facebook and Twitter to arrange TUGG screenings where winners will be awarded with free
tickets to the screening.
Public relations will target Asian American media outlets in the period before and during
the release for movie reviews, interviews, and stories in relevant newspapers, television shows,
magazines, radio shows, and online shows.
For the digital run following the theatrical, there will be no print, television, or radio
advertising but there will still be advertising via social media and Google AdSense. However,
there will be an intense social media campaign where customers will be able to gift the film to
friends and family, win a free rental, a t-shirt, or etc.
Price
Theatrical prices within Los Angeles, New York, and San Francisco will be the typical ticket
price of $11.50 to $12 depending on theater. Ticket prices of on demand TUGG screenings will
alternate but as long as TUGG screening is possible, price is not as important as the promotional
power of having TUGG screenings in different segmented markets all over the country. Digital
price will be $15 to buy HD film to $5 to rent, which is lower than average ITunes movie prices.
V. Implementation, Evaluation, and Control
Organizational Structure and Plan
Shanghai Calling does not have a dedicated marketing professional but a producer,
director, assistants, and an intern. However, there are marketing and public relation agents and
relevant professionals will be brought in by the film or the distributor.
Financial Projections
Objective Metric:
11. $1,000,000 theatrical box office (83,333 tickets) within one month of theatrical release.
1,000,000 digital purchases within three months of digital release.
Implementation Timetable
Theatrical release is set for Chinese New Years or early February in 2013. Advertising and
public relations planning will begin late December and early January. Digital release is set for a
month later and will include another social media campaign.
VI. Summary
Shanghai Calling is a film that is unique due to its Asian American content in a largely
ignored Asian American market. By utilizing major Asian American media outlets for
advertising and public promotion, in addition to social media and targeted online advertising,
Shanghai Calling looks forwards to a successful theatrical and digital release despite threats due
to its overall strength not only in message but production value, star power, and cultural
advantage.
12. Bibliography
Hsia, Daniel, dir. Shanghai Calling. Prod. Janet Yang. 2012. Film. 5 Dec 2012.
<http://shanghaicalling.com/>.
The Nielsen Company, ed. "State of the Asian American Consumer: Growing Market, Growing
Impact, Quarter 3, 2012.”. The Nielsen Company, n.d. Web. 5 Dec 2012.
<http://www.nielsen.com/us/en/insights/reports-downloads/2012/state-of-the-asian
american-consumer-q3-2012.html>.