Executive Summary
UNIT9 is a multidisciplinary registered small-medium enterprise (SME) film production company in the United Kingdom. Established in the last twenty years, the company has evolved technology models used by popular media, such as television business production firms, Hollywood studios as well as gaming production studios, to build personalised, integrated solutions to promotion deadlines and standards. The company embraces collaboration among its talents, including writers, directors, and technologies, in advertising, gaming utility and content. With its headquarters in London, 10 Orange Street Haymarket, UNIT9 has subsidiaries in the United States, Poland, Stockholm, and Italy. The company has been recognised by leading local and global award schemes for effectiveness and creativity. Despite having been in operation for years and established a target market, the company sees the need to do more to reach out to the communities through social responsibility. Therefore, it sought the services of marketing consulting to help with the adoption of a few sustainable development goals (SDGs). The focus on SMEs is central to sustainability since SDGs and businesses work together. Besides, it is recommended to start small and grow progressively.
Preparation of a marketing plan will help UNIT9 with a guideline on identifying and achieving the SDGs and the business objectives. First, the plan will identify the relevant SDGs that would align with the company’s current mission. An assessment of its external environment and internal resources will be discussed, especially the micro and macro environment. In addition, it will briefly identify the marketing decisions to be made. Also, it will explore expected objectives and provide strategies on how to achieve them. Lastly, it will recommend an action plan. Most significantly, the marketing consultant will identify a development strategy, find ways to improve the existing products, increase sales, attract a new client market and increase the company’s profits.
Section 1: Introduction
1.1 Marketing Plan
All businesses need a marketing plan. It is what makes the company to be known to its potential clients. UNIT9 is a registered small and medium enterprise (SME) in the media, entertainment, and art sector. It is located in Haymarket London (GOV.UK, n.d; UNIT9, 2022). The company has 10 employees at its London location and 50 – 200 in its other branches. It generates about 12 million dollars in sales annually (duna & bradsheet, 2022). Its studio is a nurturing foundation of disciplines with the main vision to accomplish a groundbreaking marketing experience as well as establish new audiences. Its list of talents comprises technologists, film directors, software engineers, product designers, writers, and creative architects, who partner to produce content, deliver installations, social films, advertising, digital and games campaigns, and VR content experiences expanses interaction boundaries. UNIT9 (2022) explains that its process of production combines open sources with a lean startup philosophy, made to allow collaborations across production, feasibility, and creativity.
The company is doing well both locally and globally; however, it needs to increase its target market in its London location. It faces many competitors, such as Jinn, Hungryhouse, and foodfox, which provide similar services (dun & bradsheet, 2022). An excellent marketing plan will allow the company to have healthy competition with these competitors. The company plans to expand its services in its London headquarters, attract more clients and make more sales. Also, it needs to gain a competitive edge in the technology and digital domain by incorporating sustainable development goals. Therefore, I was consulted to prepare a marketing plan that includes sustainable development goals (SDGs) to impact the community through corporate social responsibility. Most significantly, UNIT9 wants a guideline it can follow, to assess its business progress. The marketing plan will help it to implement different strategies successfully. However, it must stay updated with the current business trends and competition.
1.2 Relevant SDGs
SDGs are essential for companies since they help to attract capital, manage risk, focus on its purpose and drive growth. UNIT9’s the relevant SDGs are:
SDG 8: Promote inclusive and sustainable economic growth, employment, and decent work for all.
SDG 9: Built resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation.
SDG 16: Promote just, peaceful and inclusive societies.
SDG 17: Strengthen the means of implementation and revitalise the global partnerships for sustainable development.
17.6: Knowledge sharing and cooperation for access to science, technology, and innovation.
1.3 Strategic marketing decisions
Strategic marketing decisions are of significance for SMEs in terms of financial and business performance, lasting survival, as well as their major impacts on all of the business’s functional areas (Jocumsen, 2004). UNIT9 will make strategic marketing decisions on the resource allocations at the corporate level, differentiation, and focus of its services at the generic level. For example, since the company has different professionals working on different innovations, it may give its subsidiaries focus areas, such as gaming or advertising, to ensure efficiency. Ano ther decision is how to address its competitors. Utilising research concerning its competitors’ prices, benefits, features, payment plans, channels of distribution, social media strategy, advertising, and additional advertising efforts are essential marketing decision-making elements. The last decision is at the marketing level, which includes widening its target market and positioning strategies.
Section 2: Marketing Environment and Internal Resources
2.1 Sustainable Development Goals and their Relationship to the SME
SDG 8: Decent work and economic growth, and SDG 9: Industries, innovation, and infrastructure
Sustainable and inclusive industrialisation, innovation, and infrastructure can produce competitive and dynamic forces that create income and employment opportunities. They contribute towards promoting and introducing modern technologies, supporting global trade as well as facilitating the effective utilisation of resources United Nations (UN). Technology and innovation are essential in finding permanent solutions to environmental and economic challenges, such as increased energy and resource efficiency. Additionally, they contribute to attaining SDG goals by enhancing the efficiency of new and more ways of sustainable development. Hence, it is essential to create technologies that encourage innovation and research. This can be enhanced by reinforcing sharing of knowledge and collaboration among stakeholders in local, national, and global contexts, as indicated in SDG 17.6 (United Nations, 2022). According to Berawi (2017), the advantages of digital technology for SDGs are also incorporated in the 2030 Agenda through Goal 9 and Technology Facilitation Mechanism and its Science and Technology and Innovations (STI) forum.
UNIT9 is a local SME that believes in talent and people to create; it puts more effort into human resources as well as quality. This gives the company the ability to drive economic growth since it creates employment opportunities and encourages innovation. As the name reads, it is “an innovative production studio.” According to the group’s chief executive officer (CEO) and founder, Piero Frescobaldi, the company uses creativity to leverage modern technologies (LSEG, 2018). As an SME, UNIT9 promotes entrepreneurship and competition; therefore, it has external gains on the economy’s comprehensive innovation, efficiency, as well as collective productivity. It is the main channel where new people in business provide economies with a constant flow of innovations, skills, and ideas (Belyaeva and Lopatkova, 2020). The company attributes its success to the relentless search for innovation and the readiness to spend money on innovations. SMEs contribute to economic development founded on a business’s fast growth and role in employment generation.
SDG 16: Promote just, peaceful and inclusive societies
Weak institutions, insecurity, limited access to justice, and conflict remain significant risks to achieving sustainable development (UN, 2022). Public awareness and information are essential tools in informing the public about the promotion of justice peace along with inclusive societies. Voci (2022) states that the media plays a significant role in providing practical significance to SDG 16 and its importance to everyday life. Through conventional media and the employment of information communication technologies (ICT), the media offers a means for discussion and communication between citizens, institutions, and experts (Wagh, 2019; Voci, 2022). The media helps with SDG achievement, improving multitudes’ lives through awareness.
UNIT9 uses electronic media and can reinforce information since it is fast and can share SDGs information with the support of its team of professionals, including broadcasters and industrialists (LSEG, 2018). Through its storytelling and live actions for channels, its interactive and film directors film content for the social web, television, installations, and mobile (UNIT9, 2022), the firm can use its platform to share peace messages through live-action films, documentaries, or development campaigns on SDGs. It can prepare modern content to appeal to all populations as well as classes to influence the masses to practice SDG Goals 16 and other goals.
SDG 17: Partnerships for the goals
Achievement of SDGs is possible with continuous solid cooperation and global partnerships. The United Nations (2022) explains that through working in alliance, nationally, regionally, globally, and locally, founded on a shared vision as well as shared goals putting individuals and the universe at the core; the business can expect to build a healthy and prosperous future.
UNIT9 is a global partner. In 2020, it partnered with DICE to develop more significant value promotion opportunities in the virtual events world. DICE, a ticketing and discovery platform for onscreen streams and events, formed an alliance with UNIT9 to start a generation of interactive live streams by joining the platform’s global leading infrastructure with the studio’s unmatched creative technological expertise, leveraging DICE’s experiences as a developer in great-quality live streaming, its worldwide music sector partners, fan’s community, and its sector-leading AI and UX-powered discovery platform. The UNIT9’s award-winning creative technology credentials and innovative approach, computer-generated events would be rich by integrating actual visual effects along with fan interactions to drive profound engagements. By drawing on UNIT9’s expertise in virtual avatars (VA), artificial intelligence (AI), visual effects, and augmented reality (AR), live streams will be amplified by changing conventional stage graphics into immersive 3D worlds where artists could take any innovative form while communicating with people online (Wainwright, 2020). Therefore, through this alliance, UNIT9 will have the opportunity to enhance innovation and transfer of knowledge in science and technology.
2.2 External Environment
Environmental factors may be classified as macro-environment, which affects all businesses in the sector, and micro-environment, which involves a specific business alone (see Figure 1 (Indris and Primiana, 2015). Also, the environment can be internal comprising factors that work in the company (history and corporate culture, employee attitude and behaviour, and the company’s capabilities), and the external environment comprising the elements that work outside the company (customers, government, and competition) (Camilleri, 2018).
Figure 1: External business environment (Blythe, 2009)
The macro-environments comprise factors common to every business. These include:
Political
The rules on media ownership are industry-specific. The UK’s electronic media is regulated by the 2003 Communication Act. The Office of Communications, the new super-regulatory body established in 2003 administers this regulation. The European Union influences the UK regulatory policy and communications regime. For example, the UK policy and communication and media law (Noam, 2016).
Economic environment
The UK’s economy is recovering and expected to attain pre-crisis levels this year. Output was estimated to increase by 6.9 per cent in 2021, with an increase moderating to 4.7 per cent in 2022 as well as 2.3 per cent next year. Consumptions is the growth’s’ main drive in the projected period. Business ventures will grow but remains to be disadvantaged by uncertainty (Organisation for Economic Co-operation and Development, 2021).
Social factors
The consumer behaviour has significantly changed; most people are using the internet for entertainment and other reasons. Video gaming is the entertainment sector’s biggest revenue generator, rising by almost 18 per cent annually, increasing to 4.43 billion pounds in 2020 (Higginbotham, 2021).Also, Virtual Reality (VR) is the latest development in advertising. Clients can engage their senses into an encounter (Diek, 2020). When popular brands use this technology, it significantly affects their brand memory.
Technology
The present technology is altering the ways of communications and how firms conduct business. Technology sectors are growing fast in the UK (Newman, 2021). In the entertainment domain, Newman (2021) and Higginbotham (2021) explain that media companies should consider personal preference, which will significantly influence the success of its services and products in the market.
Legal environment
The regulatory and legal environment may affect an industry’s procedures and policies and may control safety and regulations. UNIT9 is a registered small and medium enterprise in the UK’s Companies House, an executive body of the Department for Business, Energy & Industrial Strategy (GOV.UK, n.d.). The company adheres to the legal and regulatory conditions of its operations in the UK, including submission of tax regimes, employment protection, intellectual property and data protection in compliance with the general data protection regulations (GDPR) (Hogan Lovells, 2020).
Environmental factors
UNIT9 plans to reduce carbon emissions by using renewable energy, such as wind power and solar. Besides, the company will invest in electricity generated by renewable energy sources. This will reduce over 80 per cent of the carbon footprint (Marks et al., 2020). Ericsson (n.d.) explains that current ICT solutions, such as machine learning, have a projected ability to decrease global carbon footprints and emissions by almost 15%. In terms of decarbonisation, Ericsson (n.d.) states that this equals about a third of the sharing of the releases deemed essential by 2030.
The micro-environment includes environmental elements that affect a company as well as its sector. The Porter’s five forces strategy analysis is used to assess UNIT9’s microenvironment.
Bargaining power of buyers
In the media and entertainment sector, the client bargaining power is high. The economy partly causes bargaining power; most families may settle for them if low substitute costs are present. The substitute’s availability makes the consumers bargaining power as the ultimate buyer of media and entertainment services and goods (Karagiannopoulos, Georgopoulos and Nikolopoulos, 2005). UNIT9 UK clients have various products to select online or from other sources. Besides, globalisation increased the client’s power.
Bargaining power of suppliers
The suppliers bargaining power is low for UNIT9. Its chain value of UNIT9 is mainly addressed in-house, but other companies outsource to reduce the cost to achieve entertainment and media competitive gain. This approach reduces the UK suppliers’ bargaining power because overseas suppliers will offer similar services at a reasonable cost, with different levels of quality. Bunyan (2022) explains that the sector has also experienced a rise in suppliers due to increased outsourcing, which leads to reduced suppliers’ bargaining power.
Threats of new entrants (Low)
The threat of entrants in the media and entertainment sector is quite low. The sector has established conglomerates and companies with a large media presence in filmmaking and media networks, creating major entry barriers (Bruijl, 2018). The new entrants are low, and the insiders in the sector are becoming concerned that independent and new producers are hindered from sharing their concerns and marketing their innovative and unique market services and products. The introduction of the internet channels of distribution makes this an accessible area, yet it has massive distribution channels (Peng, 2021).
Threat of substitutes (High)
A company faces the most detrimental effect when the threat of substitute services or products is high. Technology and innovation grow extremely fast (Bruijl, 2018). Therefore, the substitute threat for UNIT9 is exceptionally high because of the increasing number of upcoming media and entertainment companies online. The primary substitution threat within the media and entertainment sector is innovations. For example, Layton (2013) explains that Netflix (video store) is now an alternation for the expensive video streaming subscriptions leading to loss of proceeds in the media and entertainment sector. The introduction of 3D screens has affected entertainment, and movie lovers can spend more time watching.
Intensity of rivalry among competitors (High)
All businesses compete for clients’ spending power (Camirelli, 2018). Competition is high in the media, arts and entertainment sectors. For example, some of the UNIT9 competitors in the UK include Jinn, Hungryhouse, and foodfox (dun & bradsheet, 2022). To thrive, the company must provide excellent consumer value as well as a satisfaction to its competitors.
2.3 Internal Resources
The organisation’s internal resources will be analysed using Porter’s value chain model. According to McGee and Sammut-Bonnici (2014), activities performed by a company are included in the value added produced by raw materials to its ultimate use (See Figure 2). It demonstrates how the chain of supply creates the Five Forces analysis fundamental spine. It has all the activities required to ensure that the final service or product gets to the consumer. It aims to identify the most valuable activities (that is, differentiation advantage or cost source) to the company and those that would be improved to give a competitive edge (Simatupang, Piboonrungroj and Williams, 2017; Porter, 1985). The internal resources for UNIT9 include human resources, technology, procurement and firm infrastructure.
Figure 2: Internal resources (Simatupang, Piboonrungroj and Williams, 2017)
2.4 Performance Metrics
Performance metrics provide a company with helpful information on what is working to compel profit and growth. UNIT9 will use different performance metrics, including employee, sales and business performance (PRICEWATERHOUSECOOPER, 2007). Employee performance metrics will measure personnel’s effectiveness and productivity in achieving established benchmarks to contribute to the general business growth. The leading personnel performance metrics include efficiency, quality, productivity and quantity. Sales performance metrics will assess a team or individual’s sales performance in the business service or product. Primary performance metrics comprise lead generation, sales and activity. Lastly, business performance metrics will assess particular processes in the company, such as marketing, profitability and sales (PRICEWATERHOUSECOOPER, 2007). The key metrics in tracking business growth include productivity, return on investment and profitability.
Section 3: Marketing Objectives and Recommended Action Plan
3.1 SMART Objectives
Objectives
- Attain increasing growth in proceeds with a minimum of 60% in the 4 years.
- Create innovative products that may use 50% of their current source of information and technology in the next 24 months.
Strategy
Objective 1
UNIT9 will increase profits by implementing targets to assess progress.
UNIT9 will conduct frequent reviews of the objectives.
UNIT9 will advertise its products through networking, personal selling, public relations, and media promotions.
Objective 2
UNIT 9 will recruit young innovative talent from tertiary institutions.
3.2 Recommended Action Plan
UNIT9 will launch three to four products during the first year. The first quarter will be committed to marketing the products targeting clients 16 to 25 years. These are the most movie consumers. The other quarter will be committed to the companies and the mainstream media. These are also large consumers of its products. The company will also provide friendly prices for each new product. These products will be marketed using public relations, personal selling and networking. To measure the performance, UNIT9 will use the sales and business metrics. The first year’s progress will determine subsequent years’ plans.
3.3 Data Collection
Data collection is essential to obtain information on market research and performance metrics. Therefore, this marketing plan will collect data from face to face and online interviews with the current employees and existing clients. Rahman, Islam and Sutradhar (2018) explain that Interviews allow the business to collect sufficient information on client behaviour. Rather than knowing the number of clients that purchase products, the company will know their reasons for choosing the products or services.
Section 4: Conclusion
This marketing was to help UNIT9, an SME company, develops its competitive edge and achieves SDGs it intends to adopt in its business. The connection between companies and the attainment of SDGs is mutual. The company needed new marketing ideas that would positively contribute to its marketing strategy. Naturally, any business that has been functioning for over ten years with significant profits, as well as millions of annual turnover, already has created its client base and markets. Still, the management saw the need to consult a marketing manager to assist in exploring the current marketing practices and information to build a marketing plan. Therefore, I identified the external environment and internal resources, then developed marketing objectives and a recommended action plan to understand whether UNIT9 will achieve the SDGs mentioned above.
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