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Let’s shoot in chile


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Let’s shoot in chile

  1. 1. Let’s Shoot In ChileWestwood Starbucks TeamAlex ArciniegaFernando GasparettoUmut KaparFelipe Aichele
  2. 2. Table of content1. Introduction2. Stakeholder Analysis3. Marketing Mix4. Promotion Plan5. Budget6. Appendix7. Reference Notes + Bibliography 2
  3. 3. Introduction Our goal is to market Chile as an international hub within the production industry. Wewill market Chile as a country where you can successfully execute high-quality productions at afraction of the cost of filming in the US, while competing with other countries in theinternational marketplace. Los Angeles, California is the internationally known and recognized hub of the movieindustry. By focusing on directors and producers who live in Los Angeles, we will be able toexecute a successful and profitable integrated marketing campaign.Associations and Guilds, examples below:• PGA (Producers Guild of America)• SAG (Screen Actors Guild)• WGA (Writers Guild of America)• AICP (Association of Independent Commercial Producers)• DGA (Directors Guild of America)• FIND (Film Independent)• IDA (International Documentary Association)• IFTA (Independent Film and Television Alliance)• LMGA (Location Managers Guild of America)• NALIP (National Association of Latino Independent Producers)• NATPE (National Association of Television Program Executives)Specific Titles and Positions at Agencies:• Film & Commercial Directors• Film Producers• Location Manager/Scout• ProductionPlanPrimary StrategyThe Chilean Film Commission is our client. We have identified current efforts, marketinginitiatives and long-term goals. However, we have identified gaps due to language and culturalbarriers, as well as the lack of a Los Angeles presence.ResearchWe have conducted market research by speaking directly to producers and these are the mostrelevant findings: • Producers and decision makers are interested in knowing the economic incentives that every country is willing to provide when making films in other countries. This means that they are concerned about tax incentives, budgets, and overall cost of producing a film in a determinate location. Landscapes are a plus, but not the main reason why they go abroad when doing these types of projects. • The expertise of a crew is crucial. Producers need to know the crews´ level of expertise. The way they can measure this is by knowing the number of films and productions made in the country. 3
  4. 4. • The locations have to match the script’s needs and the cast should vary between ethnicities. • The country’s website should provide all the information in an easy and accurate way. Legal and economic affairs, contact information, weather forecast, production companies, and a 5 minute reel with the presentation of all the benefits and assets of the country are the basic information this website should have.Integration Our campaign will be integrated due to a bi-lateral approach to launching the Chileanfilm business. With the support of Chilean government incentives and a US based marketingcampaign, we will be able to have a greater impact with two teams working together. There willbe integrated qualities to our campaign, because we’ll create a multi-touch plan using onlineand offline media to pursue our target market.GoalsBrand Goals: • Establish and Increase awareness of the Chilean film industry. • Integrate the Chilean film industry as a player in the global film community. • Become Chile top of mind when creating films abroad, particularly in Latin America.Buzz Goals: • Create discussion centered around Chile at agencies and production studios. • Mobilize the influencer community to reverberate messaging.Behavioral Goals: • Mobilize key decision makers to produce in Chile. • Increase direct traffic to website. • Increase the number of films shot in Chile by 30%. • Create a database by which to manage leads.BudgetBudgeting and Integration:Website • Front-end design • Back end programming changesTrade marketing • 3 tradeshows targeting film industry professionals • Event sponsorshipLead and Sales Management • Data acquisition • Data MiningInfluencer Outreach • Promotional fly away of 12 industry influencers with large social media followings.Public Relations 4
  5. 5. • Press releases of any productions shot in Chile • Promotion of fly away program • Creative copy for website and press releasesSocial Media Marketing • Instragram to highlight locales • Facebook to illustrate imagery and maintain communication • Creative visual contentThe total cost of this campaign is 300,000.00 US$Stakeholders AnalysisProChile, the Trade Commission of Chile is part of the General Directorate of InternationalEconomic Affairs of Chile’s Ministry of Foreign Affairs. It is responsible for implementing andenhancing Chile’s trade policy. ProChile’s mission is to provide support to small and medium-sized enterprises, helping to encourage and diversify exports of Chilean products and servicesby increasing the number of export markets and companies. It does so by providing thenecessary tools to aid Chile’s economy in its process of going international. ProChile’s 56 tradeoffices and agencies are located in 43 countries, covering 90% of the destination markets forChilean exports.Website: http://www.prochile.usThe National Council of Culture and the Arts is the consulting organism for the state whileformulating public politics concerned to the needs of the film industry. The participants of thiscommittee are both government and private representatives involved in the film production.Website: http://www.cultura.gob.clThe Production Development Corporation (CORFO) is a Chilean governmental organizationthat promotes economic growth in Chile. Since its inception CORFO has played a significantrole in expanding the country’s economic development by promoting investment, innovation,business and cluster development, coupled with a focus on quality and productivity.Website: http://www.corfo.clThe Direction of cultural affairs (DIRAC) is an organism, which major duties are to spread,promote, and increase the Chilean cultural performance to the world through Chilean movies.The Chilean embassies and cultural managers established all over the world are in charge ofpromoting these productions.Website: Advertising Film Production Companies Association (APCP) is nonprofit union for theChilean advertising industry. This organization represents the 70% of the whole film productioncompanies involved in the creation of TV commercials. Both, Individuals and companiesinvolved in the film industry are members of this organization.Website: http://www.apcp.clThe Chilean Film CommissionThe Chilean Film Commission is responsible for promoting Chile as potential location for filmproduction. This commission is the result of a joint effort between the National Council ofCulture and the Arts and ProChile, whose goal is to make Chile a recognized center for filmingbecause of its world-class services and the strong support provided by its institutions. 5
  6. 6. Chile has almost every existing climate as well as excellent connectivity and a wide variety oflocations, all of which can be complemented with its thriving film industry. It also has a robustsocial platform in terms of its reliability and commercial viability, which translates intoachieving excellent results after a sound shooting experience with the highest degree ofeffectiveness and safety. It facilitates the work of international productions in Chile, providinglocal support such as information for obtaining permits to film in specific locations, assistingproduction companies when entering the country, supplying all necessary contacts within ourindustry that a foreign production may require and informing on the economic incentives andtax benefits applicable to a given kind of production.Needs:1. Awareness. This commission was created in 2009, which is recent in comparison to other commissions in the world. The commission has to establish itself in the film location market as representative of Chile within this industry.2. Link with other governmental initiatives. Currently, this commission is in a silo not connected with other activities promoted by the Chilean government, specially, those related with the international commerce, tourism, and business.3. Presence in Social Media and representation within the local and international film industry. It has a Facebook page, but it is not updated and the content is not relevant for the potential followers or fans. In addition, this organization has the potential for being the hub for all the small communities within the Chilean territory, where they can show to the world their work and places.4. Website. The commission has a website with info about the benefits of Chile when shooting film productions in the country’s territory. The information is precise, but not attractive for the potential visitors. There are many ways of fixing this by taking into consideration the target market needs and technologies.Potential impact: • Insert to Chile as prime territory for film productions. • Direct influence in the country’s GDP. • New investors for the Chilean film industry. • More jobs for Chileans. • Global recognition. • Fix certain problems regarding internal communications. Gather information from different areas (north, center, south) in order to promote the locations of the whole country by using one integrated communication system.THE BRAND: CHILEChile is situated in the southwestern tip of South America between the Andes and the PacificOcean. Its extensive length (4,200 kilometers, similar to a tour of Europe from Lisbon toMoscow) offers a huge variety of landscapes and climates throughout its territory, from theAtacama Desert -the driest in the world - in the far north to Patagonia’s millennia-old glaciers inthe south.Chile has a population of 16.1 millions, the main language is Spanish, and the currency is the 6
  7. 7. Chilean peso.The Chilean economyDespite the disastrous earthquake in February 2010, which caused serious damages at a total ofabout US $29.7 billion to the country’s key industries such as cooper, wine, fish and paper pulp,the Chilean economy posted a 5.2% growth last year.Looking ahead, reviving domestic demand and investment in the energy and mining sectors,plus the country’s pro-business administrative regime, will continue to boost consumer andinvestor confidence, leading to further growth of the Chilean economy in 2012. However, theunassuming recovery of the global economy, as well as slower demand for commodities such ascopper, will weigh on Chile’s industrial and external sectors, despite the continued boost fromthe reconstruction work for the disastrous earthquake. Taken together, the Chilean economy isforecast to expand by a slower pace of 4,7% in 2012.The Chilean culture and society The Chilean society has been changing its taste and view related to cultural issues sincethe past 5 years. Big part of this change is because the Chilean economy has been growing veryfast and regularly every year. In addition, the government and private world are enhancingcultural activities such as art interventions, music concert, and film productions. Therefore,Chilean citizens are worry and aware of this type of activities, which mean that people arewilling to spend more time and money in these needs. This is a tangible indicator that proves thewellness and rising of a country and the increasing level of education of its citizens. Eventhough Chile is far from being a first world country, this country has the strengths and thecapability to reach the first positions within South America.CustomersSegmentation StrategyAFCI Location Show is one of the most important trade shows in the film location business;therefore, we use the attendants who participate from this event to be our target market. Thepeople who attend this trade show vary from film association and guilds members toindependent film professionals.Population:5,000 peopleDemography:25 – 60 years oldPrimarily Male but some female presenceLos Angeles AreaIncome:Higher Income Brackets (wide variety in income)Needs:Film business savvy.World visionDecision makerCompetitorsIn order to define our competitors, we have to differentiate them between direct and indirectcompetitors. On one hand, the direct competitors are the United States, especially Los Angeles,and Mexico which has been growing in influence. These locations are most convenient placesfor a producer when scouting locations. First, Los Angeles has all the equipment and human 7
  8. 8. resources for making film productions; therefore, producers will prefer to stay here most of thetime. Nevertheless, the high cost of making film productions in this location is sometimes tooexpensive for clients, so this is one of the reasons why they start looking other options inforeign countries. As a consequence of this and because of the huge influence of the Hispanicculture in Los Angeles, Mexico is the place where producers focus on when looking forpotential locations. In addition, geographically, this country is very convenient for them becauseit is very close to Los Angeles. However, this country is unsafe, which could be an importantcon when checking the overall cost of the production due to insurance requirements. On theother hand, the indirect competitors are Argentina, Uruguay, Australia, South Africa, and NewZealand because they have a similar weather, time zone, and landscapes. In addition to thecountries mentioned above, we have to mention that all film studios’ sets are big competitorsbecause they can recreate a location either building it has a real set or creating it digitally byusing chrome technology.LOS ANGELES Strengths Weaknesses 1. The most important film industry in 1. High cost of the film production. the world. 2. Saturated of film productions, which 2. Many options for making films in makes people annoyed. terms of landscapes, equipment, and 3. High taxes human resources. 4. Unions are relevant and very strict 3. Good weather conditions during the year. 4. City of the US, which is the most important economy in the world.CommunityGovernment: • Ministry of Economy: If more film productions and commercials are made in Chile, the GDP of the country increase. Also it creates more jobs for Chileans. • Ministry of Foreign Affairs: Films are one way of showing the country’s assets and culture, so when Chilean films are presented in recognized festivals or venues they represent the country to the world’s view. • Ministry of Culture: Films represent the culture of a country.Influencers: • Directors: We want to use film directors and producers who have already made films or commercials in Chile to present the country’s benefits to our target market. The influencer’s profile we are looking for is the following: - Presence in the social media - Good networking - Experience in the film industry, especially in Los Angeles. - 30 – 50 years old - Preference for malesCollaborators: • Film festivals 8
  9. 9. • Location Trade Shows • Film distributors • ExhibitorsMarketing MixUSP: Experienced, high-quality production with competitive incentives.BENEFITS: • World-class production at a fraction of the cost of doing business in Los Angeles. • Santiago is one of the safest cities in Latin America. • Nearby locations. Approximately two hours from Santiago you can find locations from snow-scopes to desert-scopes. Chile has mountains, beaches, drive coast roads, vineyards, modern and classical urban locations. • Fixed Exchange rate • Casting • Government support for film industry • Tax benefits • Languages spoken include English (bilingual) • Production companies already established in ChileShooting a commercial can be very costly. When producers don’t want to see their casting incompetitor’s Ads months later, they have to ask exclusivity contracts, which can be expensive.Not only actors, but locations are also an issue in Los Angeles. Getting a license to close a streetis complicated, high-priced, and tumultuous. In Chile you can have all that and more for at afraction of cost and more easily. • The demand of using Chilean actors’ images in U.S is low; getting an exclusivity contract is much simpler and less expensive. Caucasian, Hispanics, and Indians actors can be easily hired in Chile. • The locations are less costly. The Chilean government supports the film industry and facilitates the most common arrangements needed. Chileans are not overwhelmed by film shoots everywhere and, unlike Los Angeles, tend to be more receptive to production staff. • Chile has production companies already established with good quality cameras, lighting, grip equipment and star wagons. These companies have experienced, skillful, and English speaking staff. Besides that, these production houses also work with fixed US Dollar rates, so the producers can worry only about the commercial and not the currency fluctuation. • Taxes in Chile are lower and producers can spend their budget in what really matters: the commercial. This way the money that once was spent on taxes can be saved to improve the ROI rate or even invested to produce better ads. • Moving from one location to another are often time consuming and inconvenient, but not in Chile. Not only the landscapes are close, but the highways are also in good condition. Getting around Chile by car is simple, fast, and easy. • Within two hours from Santiago you can find locations from snow-scopes to desert- 9
  10. 10. scopes. Chile has mountains, beaches, lakes, drive coast roads, vineyards, modern and classic urban locations. There is not a place on earth where you can find all those landscapes so close to each other.Promotion PlanAWARENESS - let people know Chile is a great destination to shoot film(Be noticeable and memorable)Promote and Increase traffic to website1. Site Improvements: • Add a toll free number for information • Add widget for weather • Create Youtube channel for Chile and have buttons on the Website • Create a section for reels (variety of content) • Information gathering on website for conversion and database • Mention physical awareness of location where you can gather more information2. Create Infrastructure of links: • Have film commission be linked from govt. website • Social Media Campaign • Instragram Location • Feature Chile’s original content on production and film forums by seeding.3. Raise Awareness Through Film Industry Media Outlets:Flyaway Program • Key Influencers flown to Chile • Seed stories with trade pubs and blogs • PR campaign to supplement with press releases (print and social media) • Print Campaigns First, then online bloggers • Exclusives to big trade publicationsFilm Festival Sponsorships • Official Sponsor • Non-official - branding sideINTEREST - People who want additional information(Entertain, intrigue, and advise)Business To Business:1. Public Relations 10
  11. 11. • Packets for Industry with relevant information • Direct mail campaigns • Work with studios to cross-promote movies shot in Chile2. Database Mining • Send more information to people who have submitted requests3. Film Festival Sponsorships • Official Sponsor • Non-official - branding sideDESIRE - (Differentiate, Emphasize relevant benefits)Infographics • Create information regarding tax breaks - pdf of jpg kitsLocation Scouting • Create assistance when foreign film industry visits (could be private or public)Tradeshows • Attend 3 global film tradeshows o AFCI Location Show (June 15-16) o 2 other TBDACTION - (Create leads)Our goal is lead generation - not closing1. Highlight Tax Breaks • offer competitive pricing options to rival US tax breaks • offer competitive pricing options to rival South American neighbors2. Be able to set up appointments with producers through ProChile (locations: CA, NY, WA).3. Use the Tradeshow databases as lead generator • Use the mining as qualified leadINTEGRATIONB2B at Tradeshows• AFCI Locations show (June 15-June 16)Infographics • Conversion table • Maps for production managersSocial Media • Instagram locations • Facebook Campaign with imagery • Linkedin to source influential people in movie industryVideo Content Create a production reel for Chile Create videos to live on YOUTUBE 11
  12. 12. Creative Create collateral with many faces - the many faces of Chile • use it as a multicultural book for casting Print Advertisements • Trade publicationsPROJECT / FACET COST PER UNIT DURATION / SCHEDULE TOTAL COSTWebsite Changes/Back End $50/h 40h $2,000Website Changes/Front End $20/h 80h $1.600Social Media $17.50/h 20hx24weeks $8,400Tradeshows $10,000/x 3x $30,000Event-Festival Sponsorships $20,000/x 3x $60,000Public Relations $80,000/year 6months $40,000Creative Content Film & Editing $5,000/x 1x $5,000Creative Copy/Copywriter $40/h 20hx24weeks $19,200Direct Mail $7,000Data Gathering Resources $1,000Data Mining $20,000Fly Away Promo $5,000/person (4days) 12 people $60,000Email Lists $1,200Sponsored Content $5,000Marketing Collateral $7,000Translator $10,000Networking Costs – sales support 22,600TOTAL $300,000.00 GOALS & METRICS • Increase awareness for production industry • Increase warm leads • Overall see increase in films produced in Chile • Measure website traffic • Measure conversions COST TIMING 12
  13. 13. PREP MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6PROJECT/FACETWebsite Changes/BackEndWebsite Changes/FrontEndSocial MediaTradeshowsEvent - FestivalSponsorshipsPublic RelationsCreative Content FilmCreative CopyDirect MailData GatheringData MinningFly Away PromoEmail ListsSponsored Content 5. Budget Projected ROI However our goal is to lead generation and for long-term success, we are expecting that these leads bring Chile additional foreign currency in short term. Nowadays, the average film production in Chile is 10 films per year. With our 150 leads expectation, we estimate %4 film production return in first year. As we consider that 1 film production in Chile costs at average $ 1.2 Million and 2/3 of the total amount spend in Chile, this information lead us to the following conclusions: Before “The faces of Chile” Marketing Campaign: • No marketing cost ($0 cost)= 12 films x $ 1.2 Million= $14.4 Million • 2/3 stays in Chile: 2/3 x $14.4 Millions= $9.6 Millions After “The faces of Chile” Marketing Campaign: • Marketing ($300.000)= 18 films x $1.2 Millions= $21.6 Millions • 2/3 stays in Chile: 2/3 x $21.6 Millions= $14.4 Millions Incremental gain of marketing: $14.4 Millions - $9.6 Millions= $4.8 Millions Incremental ROI= $4.8 Millions/$300.000= 16:1 6. Apendix 13
  14. 14. S.W.O.T. Analysis: Chile Strengths Weaknesses1. Variety of Landscape 1. Distance from Los Angeles2. Variety of Casting 2. Lack of endorsement3. Increasing number of film production service 3. Low rate of english speakers. companies 4. Not established film market4. Government support 5. Lack of Chilean famous directors5. Production Costs6. Safety/ Low crime rate7. Nearby locations8. Technical equipment9. (ATA Carnet) Opportunities Threats1. High taxes in U.S. 1. Global economic instability.2. Social Media usage for promoting and 2. Cheaper extras in Mexico. creating awareness 3. Strong competitors (describe more)3. Growing Hispanic Market in U.S.4. Increasing consideration for shooting abroad.5. Chileans are not exhausted by high traffic filming6. When it’s winter in the northern hemisphere, it’s summer in Chile, so shooting sessions stay on schedule 7. Reference Notes + Bibliography Interviews 1. Sean McKittrick, Producer, Donnie Darko Pricing • Cost of producing film is the most important • Preference for shooting in the US, however, will weigh costs if international incentives can rival US costs. Experienced Crew • No one is as experienced as LA Crew. If website doesn’t highlight experience it’s due to a lack of experience. • Would consider flying with his own crews if there is a tax incentive. • He flies department heads with him when shooting abroad Script • The goal is to have the destination match the script 2. Chay Carter, Assistant to Ben Affleck, Producer Credits on The Town Pricing 14
  15. 15. • Pricing has to be on target.Experienced Crew • Crew has to know what they are doing. • There are talented production companies abroad. • Companies in the respective countries handle all the logistics.Script • Has to match script. • Has to be a good substitute if you can’t match script. • With an upcoming film, Turkey was a stand in for Iran.Feedback From Group Review1. Esther – current copywriter, former advertising producer • “Schmoozing” is a large part of the film industry • Consider having a budget for networking expenses • Our solution is to put “The Builder” in place as to grow relationships within this industryPapers • “Panorama Audiovisual”, Universidad Católica de Chile, (Universidad Católica de Chile , 2011) Communications Faculty. Santiago, 2011.Websites: • • • and articles: • film.html • studio/ • • • movie-industry/News.aspxFilm Commissions: • • • 15
  16. 16. • • • • possible creative ideas and headlines: • “Shoot the unexpected” • “All the faces of Chile” 16