Marketing – Cinevideo Analysis
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About Cine International
Cinevideo is a content and advertisement production company founded in 2004 in Brasília, Brazil The company is specialized in the audiovisual segment. Cinevideo develops TV Series, documentaries, institutional videos, advertisement films and interactive media. The company has a main office in Brasília-DF and three branches: two in Brazil (Rio de Janeiro-RJ and São Paulo-SP) and one in Mozambique (in the capital, Maputo). This analysis will focus on the branch of Cinevideo in Mozambique, called Cine International .
Cine International was established in Mozambique in 2008, but only on March 2009 opened a representative office in the country. The company goals in Mozambique were to produce content to the local televisions and tout funding of international sources, such as on American Embassy, PEPFARs funding or on Danish Embassy, Denmarks funding mostly for health programs. The project presented to the donators would consist of a series of educational videos or training videos used on capacity building workshops on one or more provinces in Mozambique. It wasnt a major concern to produce advertisement, since it was a market with few potential clients according to managers assumptions. Differently from Brazil, where the main source of income is based on ads production.
1.1 Contextualization about Mozambique and Mozambican audiovisual market
Mozambique is a relatively new country. It declared independence of Portugal in 1975 and a year later entered a civil war until 1992 when peace was restored to the country. It holds, according to the United Nations Development Program (UNDP 2010), the 165º position of Human Development Index, of a list of 169 countries. The last census (Mozambican Statistic Institute, INE 2007) showed that the country has over 20 million inhabitants.
One of the difficulties for the communication industry is that the main language used on households is not the official language, Portuguese (INE 2007). Only 6,5% of the population use it as the main language. The most spoken is Emakwa-Lomwe which corresponds to 34,2% of the population, followed by Xichangana (11,4%), Cisena (7%) and other national languages (33%).
Another major problem was highlighted the Audience Research Survey Mozambique (Steadman Group 2009) when it was measured that not even half of the Mozambican households own a television: 92% of the interviewed families have radio, while only 44% have a TV. When asked about the main source of information: 70% answered radio, 45% television, 8% newspaper and 2% internet. It also pointed out an infrastructural problem the country faces: only 70 of 128 Mozambican districts have access to electricity.
It is important to understand the difficulties the communication sector faces in order to understand the contextualization of the company in Mozambique. Funding is scarce. There is not a very competitive advertisement industry. The first law regarding advertisement was approved only in December 31st, 2004 (Mario et al 2010).
Hanlon and De Renzio (2007 cited in Mario et al 2010) explained that the dependency of Mozambique from external funding is very high: in 2004 the budget that came from donors reached 1.2 billion dollars – that corresponds to 23% of national income – and puts Mozambique as the 8th country in the world that depends mostly on international aid.
Cine International also faced the difficulties from this scenario, since the Government in Brazil is the major client of Cinevideo. In Mozambique, the main clients are also the major donors of the country: World Bank, European Union and Unites States with more than US$ 100 million per year, followed by Denmark, United Kingdom, Sweden, Norway, Netherlands and the Development African Bank, that ensures among US$ 50 to US$ 70 million per year (Hanlon and De Renzio 2007 cited in Mario et al 2010).
In Mozambique, the advertisement market income responds very little for the maintenance of TV stations. A viability study produced when the TV broadcaster TIM was founded showed that the potential of the local advertisement market funding is nearly US$ 7,5 million of budget per year. From 15% to 25% of the antenna time is occupied by advertisement. “However, this data about advertisement never have been confirmed by a specialized and independent entity” (Mario et al 2010, p. 100).
Analysis of Cine International Orientation
2.1 What is our business and what should it be?
Cine International states the mission of “a company in search of creative solutions, functional and innovative for each production with the goal of reaching excellence in their productions and satisfaction of the clients”.
According to Kotler and Keller (2009), the mission of a company is best when they reflect a vision and it is capable of providing employees with a shared sense of purpose, direction and opportunity. In Cine International, particularly, this doesnt act accordingly to management. It is not a set of shared views, it is more a conceptual quote that doesnt implicate in actual actions.
As David (1989, p.95) shares the mission of a company is “a declaration of an organizations reason for being”. Cine offers services to clients, majorly other companies searching to sell ideas to costumers through video, which is a very tailor-made product. In this sense, Cine Internationals mission states that these tailor-made products will be creative, functional and innovative. And assures the customer of the feedback it will achieve by “reaching excellence” on their productions.
According to Campbell and Yeung (1991, p. 12), missions are rarely given adequate though. The Ashridge mission model is presented showing four major elements a mission statement should identify: purpose, strategy, behavior standards and values. “A strong mission, we believe, exist when the four elements of mission link tightly together, resonating and reinforcing each other”.
It is possible to analyze Cinevideos mission through the concept presented above. On Cinevideo mission statement it is implied that the purpose is to satisfy the client and reach excellence in the productions. Using the strategy of making difference on the result of their services, which is the production of audiovisual products. When applying this concepts into action, using creative, functional and innovative solutions; this states the “behavior standards of the company”, what the company needs to reach strategy goals and its purpose. But what is not clear is the company value.
Campbell and Yeung (1991, p. 15) point out that “in many organizations corporate