CPAI Group's Company Character and Marketing Strategy - Case Study Example

Global Marketing Plan Marketing 560: International Marketing. CPAI Group is a company that produces movies and markets them internationally. The company is located on the West Coast of the United States and focuses on making movies that are both educational and entertaining. The company has been trying to take advantage of the continual complaints from many people around the world regarding the prevalence of violence and sex in movies and has been trying to provide an alternative to people who want to watch material that is free of such elements. Even within the United States there is a small market of people who are fed up with what they see as lack of concern for morality. Rather than continuing to cater to the lowest common denominator, CPAI Group has been putting out movies that are rich in plot and character but without much of the gratuitous violence and sex that has come to characterize movies made in America and other Western nations. The company also sees a certain sense of global convergence in consumption. Just as people in Jakarta, Beijing, and Istanbul, are becoming used to having Kentucky Fried Chickens, it is clear that movies can be packaged in such a way that they will appeal to people from vastly different backgrounds. Company Character: Mission Statement: To produce movies that are highly entertaining and that can be enjoyed by families, including small children. Objectives: Making movies that appeal to a wide range of people, including people from developing countries and cultures other than that of the United States. Resources: CPAI has a talented team of producers, directors, technicians, cameramen and women, editors, and studios that allow for the production of a vast array of movies. Most of the movies that the company makes, however, rely on simple settings such as the home, gardens, school, and many of these can be shot at the studio. When necessary, however, the company’s productions are shot outside of the studios. Such scenes help to lend believability to certain scenes and are therefore increasingly necessary as movie viewers have come to expect very high standards. Management style: CPAI makes sure that it hires people who have proven themselves capable in their particular fields. The company also hires people with a great deal of potential but who may not have had the opportunity to express their capabilities. The company does not use coercion or threats in getting people to act. Also, workers are not pressured into doing things that may be unethical. After all, this company wants to be a beacon of light in a world that many perceive as having lost its way as far as respect, morality, and cooperation, are concerned. It is important for CPAI’s managers to find out what the motivations of employees are. Managers do not set themselves up as knowing everything and thus stifling employees from expressing themselves. Rather, managers put a great deal of trust in employees and actively seek out the ideas and contributions of these workers. Knowing what the interests of employees are is critical in helping the company and the workers move in a direction that can yield profit for both. When employees feel that they are not really doing the job they would like to do within a company, their morale falls. The idea of moving with the flow of the workers’ energy is not as radical as it might appear. This view gets a measure of support from Mark Murphy, a leadership trainer, who writes in the article “What Great Mangers Do,” noting, “The greatest managers effectively diagnose their people’s motivations and interests, and frame their directives in terms their people understand. By aligning their expectations with their employees’ interests, they influence people into taking the correct actions. The “kick in the rear” approach only delivers a backlash of resentment, resistance, and resignations” (Murphy 2006 16). Managers are also aware that within the entertainment industry there are people with varying temperaments. Knowing when to respond with empathy and when to communicate with facts are important. This requires that managers become attuned to the different personality types working within the company and be prepared to interact with people on the basis of their knowledge of such personalities and the realities of the moment. Managers are highly adaptable. As noted above, the company takes great care in hiring people. The company recognizes that mere technical skill can be obtained very easily or imparted through training. Attitude, however, can be very difficult to acquire or develop. While in many companies managers focus on finding people with high technical skills, CPAI seeks people who have the right attitude and are coachable. People with the right temperament make for a working environment that is comfortable for all. Managers try to find out what characteristics distinguish the high performers from the also-rans and seek to hire more of those who fit the profile of the high achievers already within the company. The company’s managers do not seek clones of themselves or people who always say “yes.” Rather, the company welcomes divergent views and managers consider such views very carefully. Even when ideas are not used, management makes sure that contributors are acknowledged. This makes sense because while a person’s ideas may not be on the mark today, they may have a brighter idea tomorrow that could make a difference from the company. Workers at all levels are made to feel confident about approaching those in the higher rungs. This also helps for any complaints or grievances to be solved quickly before they fester into something that is too difficult to deal with. Managers make sure that they have face time with all employees. This allows managers to discover what may be demotivating some employees and thus solve the problem before it gets worse. When the company needs to make changes, managers are adept at convincing employees of the urgency of the situation. This takes into consideration the simple reality that “The quickest way to get someone off a wooden platform is to set it on fire. Most changes fail because people just don’t feel enough urgency” (Murphy 2006 16). At CPAI, all workers recognize the urgency of now! Financial limitations: CPAI is an ambitious company but it does not have the deep pockets of such Hollywood staples as MGM or Columbia Pictures. This explains why the company relies to some extent on simple settings. The company is getting more and more backers from companies and individuals who recognize the value in what the company is achieving. Thus, even though at the moment the company operates with a budget that is continually under strain, this is likely to change in the near future, thus allowing the company to express itself even more and to tackle a wider range of subjects and also to deal with storylines that are truly global in nature. Products: CPAI makes full length movies, including those that very much resemble mainstream American movies such as thrillers and comedies. The main difference is that CPAI keeps its content clean. In addition to making movies that are released in regular theatres around the world, the company also makes documentaries that seek to find unique cultural elements around the world. This aims to bring the people of the world closer together by making people more aware of what their counterparts in other parts of the world do. The company has, for example, profiled Japanese archers, African Kente weavers, and Bali dancers but often by weaving a story around these elements rather than just presenting them as a straight documentary or feature. Thus, full length movies, documentaries, features, including the sale of their DVD versions represent the bulk of the company’s work. Environmental Analysis: Home Country Constraints 1. Political: The United States bills itself as the foremost defender of democracy in the world. The country is dominated by two main political parties, the Democrats and the Republicans. The current president, George W. Bush, won the presidency under the banner of the Republican Party. In September 2001, terrorists rammed several planes into various buildings in the United States, including the famed twin towers of the World Trade Center. Since then the United States has engaged in wars in Afghanistan and Iraq, both of which have generated a great deal of resentment around the world. Following the attacks, the country got a lot of sympathy from around the world. In fact, even when the U.S. attacked Afghanistan, this was seen as a legitimate action that would mete out justice to those who were behind the attacks against America. The attack against Iraq, and the subsequent conviction of its former president, Saddam Hussein, however, has called into question America’s right to be in that country. As the war has dragged on over several years, without any sign that America is going to win the war, even Iraqis who initially welcomed the American presence are increasingly showing skepticism about the wisdom of the invasion. Even within the United States itself there are major divisions regarding the issue of whether the war should continue or whether arrangements should be made to bring the troops back home. The bottom line is that America does not appear to have garnered more love from the international community; rather, there are increasing number of people around the world who do not see America as being respectful of other cultures and people. Presenting oneself as an American company, therefore, requires care in some parts of the world because of the resentment that continues to build against the country as the wars in Iraq and Afghanistan drag on. 2. Legal: America is a relatively free country, with few restrictions on business. This explains, in the first place, why many American movie companies are not afraid to depict gross violence or nudity. The movie industry always tries to push the limits of what is acceptable, and because viewers continue to see the worst imaginable, movie making companies are forced to always come up with something that is worse all the time. The government of the United States has tried to get the movie industry to police itself. Thus, a system of rating is routinely used such as PG13, indicating that parents can attend the movie with a child of at least 13 years. 3. Economic: The United States is the number one economy in the world. The Gross National Income per capita is US$43,740, according to 2006 World Bank figures. The country imports products from all over the world, including cars, clothing, and oil. On the other hand, “It is also a major source of entertainment: American TV, Hollywood films, jazz, blues, rock and rap music are primary ingredients of global popular culture” (Country profile: United States of America http://www.bbc.uk.co). Because of the recognition of the United States as an exporter of cultural products, CPAI is well positioned to take advantage of this image and to send quality products to foreign markets. 4. Technological: When it comes to movie making, the United States has no equal. Over the years, the country has produced some of the finest directors, actors, and other supporting staff in the movie industry. For example, various special effects companies exist in the Los Angeles area and provide backroom services for movie studios. Computers also offer opportunities for editing material and also in distributing them. In all of these counts, the United States is a leader, and CPAI has access to technology that allows the company to produce materials that are quite competitive with companies that have very big budgets. Host country(s) Constraints 1. Economic: One of the principal markets for the company’s products is Malaysia. “Malaysia’s economic prospects remain healthy, although it faces fierce competition from its neighbors, and from China and India. Free trade talks with the US are under way. The country is among the world’s biggest producers of computer disk drives, palm oil, rubber and timber” (Country profile: Malaysia http://www.bbc.uk.co). What this means, essentially, is that the people of Malaysia have good buying power. The middle class has expanded steadily over the past twenty years, to the point where many Malaysians have good disposable income. 2. Political/Legal: The country has been stable for more than twenty years, but there are wide differences in the country, much of it owing to differences in religion and ethnicity. Even so, the ruling government has been making efforts to maintain the stability that has become a hallmark of the country for more than two decades. 3. Competitive: Malaysia has a sizeable population of Chinese people and a minority of Tamils. Thus, there is some demand in the country for movies and other entertainment originating from China and India. In addition, the mainly Malay population are Muslim, which means that they adhere to some fundamental tenets of the Islamic faith. Not surprisingly, therefore, “Malaysia has some of the toughest censorship laws in the world. The authorities exert substantial control over the media and restrictions may be imposed in the name of national security. The government is keen to insulate the largely-Muslim population from what it considers harmful foreign influences on TV. Ness is subject to censorship, entertainment shows and music videos regularly fall foul of the censors, and scenes featuring swearing and kissing are routinely removed from TV programmes and films” (Country profile: Malaysia http://www.bbc.co.uk). It is this very stance of the Malaysian government that provides an opportunity for CPAI. The Malaysian people indeed love American entertainment but many of them worry about the elements of American entertainment that violate their religion. This means that a sanitized version of American entertainment can go down well with the population, and that is exactly what CPAI is about. Even though CPAI is not an Islam-affiliated organization, its founders share many of the values sought by the Malaysian government for the society, including entertainment that does not denigrate fathers, entertainment that does not cheapen women through their depiction as prostitutes or their presentation as sex objects. Furthermore, CPAI does not put violence in its movies simply because violence sells. Even in those scenes where violence appears to be backed by reason, the company does not make it graphic, relying on hints and suggestions. Such an approach also appeals to people who are concerned about the corruption of children. They also see such shows as CPAI’s as contributing to the mental development of children or viewers rather than doing everything for the viewer in a graphic way. 4. Level of technology: As noted above, Malaysia is home to many manufacturing companies that are technologically oriented. The country has been able to accommodate many technology companies because of the high level of education of its population. The country is continuing to make further investments in education. This is certainly likely to make the country continually appealing to multinationals that want to have a base in Southeast Asia. 5. Culture: Malaysia has a mix of ethnicities. The largest grouping encompasses Muslims but the Chinese are economically very powerful. The country has a mix of religions as well. The government has increasingly supported the Malay population by providing them with incentives to improve themselves. “Although since 1971 Malays have benefited from positive discrimination in business, education and the civil service, ethnic Chinese continue to hold economic power and are the wealthiest community. The Malays remain the dominant group in politics while the Indians are among the poorest” (Country profile: Malaysia http://www.bbc.uk.co). Ethnic Malays make up 60% of the population while their Chinese counterparts make up 60% and the Indians and indigenous people make up the rest. The races do not mix freely though they coexist without much friction. 6. Geography: Malaysia consist of two regions that are separated by 640 miles of the South China Sea (Country profile: Malaysia http://www.bbc.uk.co). The country is run on a federation basis and includes 13 states and three federal territories. The country boasts beautiful beaches and scenery and its dense rainforests in Sarawak and Borneo are attractions for tourists who want to connect with tribal traditions in that part of the world. Marketing Strategy: Target Market Strategy Marketing Mix 1. Product Adaptation: Rather than promoting the theatrical productions of the company’s products, the company is moving towards providing only video versions of its movies. This is increasingly more profitable for the company as the company lacks the budget needed to promote its products on the same scale as Hollywood movies. Thus, having the products in the form of DVDs that are easily available through local distributors is proving to be a strategy that works effectively. In addition, potential customers can order the product directly from the United States through the Internet or by mail or even by telephone. Brand name: Cocoon Capers is the brand name that the company has been promoting. The company does not want to make it appear that because its entertainment is free of violence and gratuitous sex, that they cannot be entertaining. The use of the word “capers” is meant to suggest a bit of mischief while “cocoon” is meant to crystallize for the viewer the idea that these movies are best enjoyed from the comfort of one’s home. Features: The company has been able to use the Internet to create some buzz about its products. People who have seen CPAI’s movies, including religious groups have been instrumental in spreading the word on behalf of the company. Even though the company is operated on a secular basis it has found a niche that seems ripe for exploiting. Also, Southeast Asian countries are increasingly coming together, if not politically, then at least socially. This means that products that catch on in Malaysia might catch on in Singapore, Thailand, and other Southeast Asian countries because of the interconnectedness of the media in these countries. Packaging: CPAI products make use of top notch artists and designers to design packaging that is attractive and highly appealing to potential viewers. The DVD jacket is made to be outstanding, one that gets the customer in a shop to take a second look, and with that, the possibility of purchasing the video. Service/Warranty: The company operates through distributors and gives them the permission to replace any defective videos. Price: CPAI positions its products as premium products and as such charges top dollar. At the moment, families that want good, clean fun, are hard-pressed to find such entertainment. CPAI’s products therefore can command high prices, which is why they sell at about twice what a Hollywood movie on DVD will sell for. Even so, the demand for the company’s products remain high; the reason is simple. Clean entertainment is not so easy to come by. Credit/ Discounts: The company does not operate on a credit basis. Distributors are requested to make purchases in bulk and thus benefit from discounts and price reductions meant for those who are reselling the DVDs. 2. Promotion Advertising: Promotion has mainly been through the Internet and word of mouth. The company has also been able to garner considerable press both in the United States and in Asia. As such, the company’s products have become well known in the Malaysian market and the demand for the videos continue to grow because of word of mouth. 3. Distribution: Because of the need for timeliness, products are shipped by air. Usually, they go to a central distributor/agent in Kuala Lumpur, who also redistributes the DVDs to domestic distributors and retail shops. The company routinely uses UPS and FEDEX both of which have extensive networks of distribution around the world. 4. Implementation, Evaluation and Control: Budget: Because the company not only produces, but also shoots, and packages the videos, a great deal of money is required. The company continues to seek investors rather than relying on its profits for making new movies. If the company is able to attract the right kind of investors, it is going to be even more ambitious and aim for selling its products in the Middle East. Action Programs: Seek more financial “angels.” Find potential investors in the business so that expansion can be a little swifter. Standards: The company is aware of the issue of differences in DVD and the possibility of being able to play a video. The company’s videos are made to Malaysian standard so there has never been a problem with respect to not being able to meet appropriate standards. Bibliography Country profile: Malaysia Country profile: United States of America http://www.bbc.uk.co (Retrieved: February 26, 2007) Country profile: United States of America http://www.bbc.uk.co (Retrieved: February 26, 2007) Murphy, Mark. “What Great Managers Do.” Sales & Service Excellence, Vol. 6 Issue 12 (Dec 2006): 6-16. Read More