Project Reviewing Techniques of a Television Commercial - Example

Project reviewing techniques of a Television commercial Contents Introduction 3 Discussion 3 Stakeholder Management 4 Risk Management 6 Industry BestPractices 9 Final Analysis 10 Actual cost 11 Total Completion time 11 Project Life Cycle 12 Gantt chart 13 Conclusion 13 Reference List 15 Introduction Television commercials are a form of advertisements where services and goods for particular companies are displayed in television. It is one of the oldest forms of commercials, after print. Making a television commercial is a long process including critical stages such as, identifying target audience, complimenting the proposal with target market demands, creative representation of the service or product as well as negotiation with agencies and time factors like, duration of advertisement and span of television advertisement campaign. The overall expenditure for making and implementing an advertisement campaign is huge and as a consequence, marketers need to understand and evaluate efficiency of these advertisement commercials. Critical review of a project after its completion and implementation is one of the most vital steps towards realizing effectiveness of the project. In the present report, two of the most relevant techniques for project review have been applied. These two techniques are risk management and stakeholder management. These two techniques are suitable for the current project because of various factors such as, volatile market dynamics and increasing economic turbulence (Carton, Adam and Sammon, 2008). As a result, managing risk and understanding customers have become two important aspects for achieving success in any project. The objective of the current project is to evaluate of a completed television commercial project, identify the factors responsible for success and failures at different stages of the project and recommend critical solutions for future. While this is not prepared to blame or praise any particular strategy or technique, the underling purpose is to recognize positive and negative aspects of the project management strategy or technique used in the report (Kerzner, 2006). Discussion For successful completion of the project, a television commercial will be evaluated where iron triangle approach has been implemented. Chanel, a leading perfume brand, signed Hollywood actress, Nicole Kidman for 3.7 million dollars in order to create a television commercial. The total budget for marketing campaign of the television commercial was 33 million dollars (Bidness Entertainment, 2014). The budget included production of the commercial, marketing as well as product distribution. The television commercial was a 180 second advertisement, contrary to the normal 20-50 seconds given. The commercial was launched in 2004, when Nicole Kidman was a leading Hollywood actress because of her successful movies and performance (Bidness Entertainment, 2014). The advertisement was critical both in terms of its budget and expected revenue. As overall budget spent on this advertisement was huge, the company was expecting a positive return on investment. Chanel is a high value brand where every 30 ml bottle is sold at 350 dollars (Bidness Entertainment, 2014). Also, it is available only in exclusive stores across America and other nations. However, high brand value of the perfume, combined with a popular celebrity and extensive promotion, resulted in successful initial outcome (Cooke-Davies, 2000). In the following sections, an in-depth evaluation of the television commercial has been conducted with the help of risk management and stakeholder management aspects. Stakeholder Management Stakeholder engagement is a significant element of any project’s strategic initiatives. In general, stakeholders are those groups or individuals who are involved indirectly or directly with the project. These individuals or groups have a significant influence over overall strategies, activities, performance and success of a project. So, it is important to understand and engage stakeholders in order to ensure that the project addresses issues relevant to these stakeholders (Hillman and Keim, 2001) Stakeholders are critical as they can either help or hinder execution of the project at any stage. It can be before conduction of the project, during implementation process as well as after rolling out of the commercial. Hence, it is extremely essential for managers and marketers to understand their stakeholders at every stage of the project, which in this case is the television commercial (Winch, 2001). During critical reflection of the television commercial project, various stakeholders and their influences were identified; Opinion formers: Opinion formers are generally those people or groups with sound knowledge or strong expertise on particular subjects. For the present television commercial project, opinion formers were customers for pilot project as well focus groups before and after the interview (Meredith and Mantel, 2006). The strategy for them was to select only professional focus group participants and regular buyers of the perfume. Customers: Customers are one of the most important stakeholders in a television commercial project. The major objective of any commercial is increase in overall sales and brand value and this can be achieved only through an effective commercial. For engaging target customers, the company chose Nicole Kidman as the brand ambassador. After successful launch of the campaign, regular online and offline surveys were conducted to gather feedback from customers (Wanyama, Burton and Helliar, 2013). Policy makers: The influence of policy makers is very strong in any project. Policy makers expect companies to not only engage, but also create a long-term relationship with them. The policy makers in the current project are local and national advertisement bureaus, governments regulating the advertisements and other regulatory bodies in the advertisement and commercials business (Foster and Jonker, 2005). Media and critics: Media and critics are other important stakeholders, following the policy makers. Media and critics such as, television commercial analysts and various print magazines and newspapers, have a critical influence on overall perception of customers towards television commercials (Ahmed, Kayis and Amornsawadwatana, 2007). Thus, it is important to consider the perception of media and critics, particularly in target market or region where the television commercial is aired. The television commercial project identified its stakeholders according to their influence on the current television commercial and prepared strategies for evaluation as follows; Key Players- These are the most important stakeholders. For the current commercial, these include customers or potential buyers of the perfume. The objective was to maintain regular interaction and constantly engage them (Keane, 2006). Important Stakeholders- Here, important stakeholders include media critics, advertisement bureaus and benchmarking agencies. The objective here was to keep them satisfied and provide them with regular updates. Affected Stakeholders- Affected stakeholders in this commercial project will include suppliers and storerooms. It is important to keep them updated and informed about any changes in distribution or supply of the products (Meredith and Mantel, 2006). Risk Management Risk management helps in analyzing the opportunities and risk associated with a project. These risks and opportunities have been analyzed on basis of the extent to which the project has been able to capitalize on the opportunity or mitigated risks (Kendrick, 2004). While stakeholder impact is an important factor to consider while reviewing a risk, it is also important analysing various risks associated with a project. In this particular report, the risks associated with a television commercial have been studied. A positive reaction from the risk assessment will indicate successful accomplishment of the advertisement objectives, while a negative reaction will mean dissatisfied customers and revaluation of advertisement objectives and strategies (Kerzner, 2006). Critical reflection of the above television commercial project can be undertaken using the risk management process. Risk management involves four critical steps; 1. Risk Identification 2. Risk Quantification 3. Risk Response 4. Risk Control and Monitoring 1. Risk identification The present television commercial is associated with various external and internal risks. These external and internal risks have been identified as follows; a. Unpredictable risks include natural disasters occurring in the target region influencing day-to-day activities of people living in that area. This can hamper average viewership (Meredith and Mantel, 2006). b. Social risks can be acceptance or rejection of the particular commercial. It was found that viewers as well as television media critics questioned overall theme of the commercial and relevancy of message that is conveyed (Kendrick, 2004). c. Technological risks include proper airing of the commercial as well as availability of proper channels among the target audience. The television commercial for Channel was predominantly targeted for American customers who have high access to technology. d. Legal risks include violating the trademarks, copying from already launched commercials and breaching of contract between the agency and company (Colle, 2005). 2. Risk Quantification The next step for critical reflection of the television commercial project is quantification of risks. On the basis of probability and impact, risks can be high, low, medium or critical (Carton, Adam and Sammon, 2008). Probability Impact (Source: Author’s Creation) While low risks associated with the television commercial were media critics, environmental disasters and technological interruption, high risks involved with the commercial were customer perception regarding the advertisement and customer acceptance (Tusler, 1996). 3. Risk response Proper response to predictable and unpredictable risks is an important factor in the risk management process. A quick and accurate response to any risk will not only help in mitigating the risk, but also increasing overall understanding of future risks and providing ways to overcome them (Tsai, et al., 2009). Proper response for the commercial was generated through various strategies. First, press conference was released at proper intervals. The commercial also passed through all legal policies and guidelines for launch (Sanchez, et al., 2009). 4. Risk control and monitoring Risks can be monitored and controlled by continuous assessment and making alterations wherever required. This is possible be keeping a constant tract on the various phases of a project, which in this particular case is the television commercial (Elliott, 2012). Various steps were taken by the company for accessing, monitoring and controlling the television commercial project. a. Assessments of ratings were done on a continuous basis. It is important to know exact number of viewers watching the television commercial. The commercial agency contacted numerous regional and national advertisement tracking companies for information such as, socio-economic segments and age groups of people watching the commercial, while it is being aired. Understanding quality of advertisement and proper placement are two important factors affecting overall ratings of a television commercial. Both these factors were properly monitored during and after launch of the commercial (Tusler, 1996). b. Second important assessment technique is monitoring the traffic. For a television commercial to be successful, it is important that right customers see the commercial at the right time. As a result, the commercial was aired mostly during the prime time and in-between shows, which were targeted towards young and middle aged female customers. c. Interviewing potential customers is also a critical technique for evaluating success or failure of a television commercial project. This involved showing the advertisement to potential buyers and deriving crucial feedback. The television commercial conducted pilot surveys both before and after launch of the commercial so as to gain a firsthand feedback of the commercial (Meredith and Mantel, 2006). d. Tracking sales and handling initial enquiries related to the commercial helps in evaluating perception of customers regarding the advertisement. These enquiries can be from customers, and media. The last stage of a risk management process includes developing a contingency plan. A contingency plan is a back-up plan, in case the current process fails to achieve desired objective. However, the television commercial channel did not have any contingency plan. This can be identified from the fact that apart from the commercial, no other form of advertisement was launched to support the television commercial. Also, a huge budget was allocated for advertisement and promotion, which reduced budget for other advertisements to a minimum (Globerson and Zwikael, 2002). Industry Best Practices Industry best practices include implementing those reviewing techniques and measures, which help in assessing exact revenues and sales earned though a particular advertisement. Essentially, advertisement results are measured by comparing advertisement with sales. Sales and revenue generation depends mostly on customer response and for this, stakeholder management becomes an important criteria for successful evaluation of advertisements and commercials. Similarly, proper placement of advertisement is critical or maximum viewership. This can be achieved by proper risk management strategies while designing the advertisement, during the launch and implementation process. Below are few of the industry practices that can also be recommended for minimizing problems encountered during the evaluation process. 1. Determining the objective of a television commercial It is extremely crucial to determine the objective of a television commercial. While some advertisements are launched for generating immediate and quick response, others aim at building long-term brand equity and brand awareness (Andersen and Jessen, 2000; West and Prendergast, 2009). The evaluation criteria for both types of advertisements are also different. For advertisements with quick results, response from customers and increase in sales should be evaluated on a daily or bi-weekly basis. In addition, follow up of these advertisements can be done by inspecting stores, outlets and other markets and calculating rise in sales. Immediate responses can also be evaluated by tracking customer’s requests regarding the service or products (Grundy, 1982). These requests can come from various sources such as, online surveys, phone calls and website traffic. For advertisements with long-term brand awareness objective, regular feedback from the media and customers can be obtained from surveys and testimonials. 2. Advertisement testing Advertisement testing or pilot testing is an important aspect of the risk management process in any project. Advertisement testing can be conducted in two manners. In one method, two similar advertisements with different strategies can be shown to a group of target customers (Dinsmore, 1999). This is a risk assessment stage where risk is minimised by testing the most appropriate advertisement for target customers. Majority of advertisement agencies make sure that this stage is conducted so that any error or mismatch between customer expectations and advertisement commercial is minimised (Colle, 2005). 3. Analysing store traffic Analysing the store traffic is critical not only during early stage of the launch of a television commercial, but also during later stages for understanding overall impact of commercials on customer’s buying behaviour. It is also a stage of stakeholder management where impact of stakeholders such as, customers, on sales and revenues or services and products are evaluated over time (Garland, 2009). For instance, if the customer traffic at various stores has reduced in six months period, the advertisement agency can increase frequency of television commercials for improving store traffic and creating positive brand awareness. 4. Frequency of advertisement commercials It has been seen that even popular advertisements lose effectiveness when frequency of commercials declines (Olson, 2005). So, it is essential to remind customers of the advertisement for enhanced knowledge as well as interest regarding the service or product. Successful advertisements such as, McDonalds, Apple and Microsoft, rely on both creativity and frequency of advertisements for facilitating greater customer penetration (Elliott, 2012). Final Analysis The above television commercial clearly shows that three aspects of the iron triangle approach were properly implemented. The advertisement evaluated overall aspects of the classic iron triangle and applied these aspects while implementation of the advertisement commercial process. Every project is inhibited by cost goals, time goals as well as quality goals and to achieve success, all three aforementioned factors need to be aligned and balanced. This is because a change in one of the factors will lead to drastic change in the other. From the above analysis of risk management and stakeholder management approaches, it was found that Chanel successfully launched its product and implemented the television commercial project successfully. The overall sales generated from the television commercial were around 5.9 billion dollars in 2011, which was higher than forecasted return on investment (Bidness Entertainment, 2014). Hence, by effectively managing the three aspects described above, Chanel was able to achieve positive return on investment for its advertisement commercial. Project S curve Actual cost Earned Value Planned Value Total Completion time (Source: Author’s Creation) The Project S curve is an analysis of the planned value and the actual earned value. The above diagram explains the estimated and actual costs of the advertisement. According to industry reports, the overall earned value or return on investment was higher compared to the total budget spent on the television commercial project. However, after cutting all expenditures and campaign costs, the actual profits were lower compared to the planned value. Project Life Cycle Figure 1 Life cycle of a project (Source: New Opportunities Fund Partner, n.d) Similar to any product or service, projects also have a project life cycle. In the first phase customers, investors and clients are identified and the idea and proposal in put forward. This phase is known as initiation. The initial phase of television commercial project included determining the need for the commercial, target customers and feasibility of the commercial. The second stage is agreement stage where a proposed solution is developed. Here decisions such as design of commercial, message and celebrity were taken. Third stage is project performance where the television commercial was aired. The last stage is project termination. The campaign for the television was schedule for six months and after then the overall frequency decreased subsequently. As a whole, the television commercial project was successful in generating awareness and brand equity. Gantt chart The following Gantt chart will explain the review and reflection stages during project evaluation Activities Jan Feb March April Preliminary Investigation Initial project performance evaluation Interviews and surveys Draft Report Final Evaluation Final Report Submission Conclusion The objective of the current report was to analyse and critically reflect a television commercial project. The wider purpose of the project was to utilize the opportunity of reviewing a project, understanding the success rate and elements of success in a comprehensive manner; to identify shortcomings; and to provide recommendations for better project management practices in future. Two major approaches that were implemented for the review process were stakeholder management and risk management. Various lessons were learned during course of the project. Firstly, it is not possible to entirely eliminate risks associated with any project. However, these risks can be minimised by proper inspection at every stage of the project. The success of a television commercial project hugely depends on overall acceptance by customers. Therefore, it is crucial that advertisements and commercial projects are designed keeping in mind customer demands and perception regarding the product. Reference List Ahmed, A., Kayis, B. and Amornsawadwatana, S., 2007. A review of techniques for risk management in projects. Benchmarking: An International Journal, 14(1), pp. 22 – 36. Andersen, E.S. and Jessen, S.A., 2000. Project evaluation scheme. Project Management, 6(1), pp. 61-69. Bidness Entertainment, 2014. Three of most expensive television commercials. [online] Available at: http://www.bidnessetc.com/business/3-of-the-most-expensive-television-commercials/ [Accessed 5 May 2014]. Carton, F., Adam, F. and Sammon D., 2008. Project management: A case study of a successful ERP implementation. International Journal of Managing Projects in Business, 1 (1), pp.106 – 124. Colle, S. D., 2005. A stakeholder management model for ethical decision-making. Int. J. Business Governance and Ethics, 6(3/4), pp. 299-314. Cooke-Davies, T. J., 2000. Towards improved project management practice. Leeds: Leeds Metropolitan University. Dinsmore, P., 1999. Winning in business through enterprise project management. New York: American Management Association. Elliott, S., 2012. Marketing Risk Management, to Both Client and Provider. [online] Available at: http://www.nytimes.com/2012/02/09/business/media/marketing-financial-risk-management-to-clients-and-providers.html?_r=0 [Accessed 5 May 2014]. Foster, D. and Jonker, J., 2005. Stakeholder relationships: The dialogue of engagement. Corporate Governance, 5(5), pp.51 – 57. Garland, R., 2009. Project Governance - A practical guide to effective project decision making. London: Kogan Page. Globerson, S. and Zwikael, O., 2002. Impact of the project manager on project management planning processes. Project Management Journal, 33(3), pp. 58-64. Grundy, S., 1982. Three modes of action research. Geelong, Australia: Deakin University Press. Hillman, A. and Keim, G., 2001. Shareholder value, stakeholder management, and social issues: what the bottom line? Strategic Management Journal, 5(2), pp. 44-55. Keane, T.P., 2006. Exploring stakeholder emotional intelligence. Management Research News, 29(3), pp.128 – 138. Kendrick, T., 2004. Strategic risk: am I doing ok? Corporate Governance, 4(4), pp.69 – 77. Kerzner, H., 2006. Project Management: A Systems Approach to Planning, Scheduling and Controlling. New York, NY: Wiley. Meredith, J.R. and Mantel, S.J., 2006. Project Management – A Managerial Approach. New York, NY: Wiley. New Opportunities Fund Partner, n.d. Project Management. [online]. Available at: < http://www.ukoln.ac.uk/nof/support/manual/project-management/index.html#Project%20life%20cycle> [Accessed 7 May 2014]. Olson, E.G., 2005. Strategically managing risk in the information age: A holistic approach. Journal of Business Strategy, 26(6), pp.45 – 54 Sanchez, H., Robert, B., Bourgault, M. and Pellerin, R., 2009. Risk management applied to projects, programs, and portfolios. International Journal of Managing Projects in Business, 2(1), pp.14 – 35. Tusler, R., 1996. Project Risk Management Principles. [online] Available at: < http://www.netcomuk.co.uk/~rtusler/project/principl.html> [Accessed 5 May 2014]. Wanyama, S., Burton, B and Helliar, C., 2013. Stakeholders, accountability and the theory-practice gap in developing nations corporate governance systems: evidence from Uganda. Corporate Governance, 13(1), pp.18 – 38. West, D. and Prendergast, G., 2009. Advertising and promotions budgeting and the role of risk. European Journal of Marketing, 43(11/12), pp.1457 – 1476. Winch, G.M., 2001. Governing the project process: a conceptual framework. Construction Management and Economics, 19, pp. 799-808. Read More