Knock Knock P.R Management Project Company by Sean Baker, Tom Cleary, Patrick Jordan, Laura Plunkett, Gerry McQuillan.

Promoting a world of comedy talent

Team Members, Sean Baker, Tom Cleary, Patrick Jordan, Laura Plunkett, Gerry McQuillan.

“Knock Knock” was set up in Autumn 2011 and is based in Dublin, Ireland. Its clients are range from stand up comics to entertainers. “Knock Knock” is quickly recognized as a main competitor in the PR world of entertainment.

Mission Statement

•      To help clients achieve their comedy potential and introduce them to the entertainment industry, confident of our backing.

•      To deliver the highest levels of professionalism and experience.

To provide strategy with the client, creative solutions and responsive services

Company Objectives

·         To ascertain a 7.5% market share in the first year of operations.

·         To have profit turnover of 17.5% in year one

·         Client base should be 25 in our first year (Check numbers)

·         Client approval should be approx 90%

·         Focus on promotion to same extent as clients promotion

PEST ANALYSIS

Political:

For “Knock Knock” political factors do not have much sway on the running of our company. Political factors take into how stable the political environment is and if the government policy influences laws that regulate or tax our business.  The government’s policy on marketing ethics does not affect our decision making.                                                                                                     

Enviromental:

Interest rates, unemployment and inflation to not weigh strongly on the running of the business. From environmental factors we need to take in energy availability and costs and disposable income.

Energy availability and costs:

If costs for essentials such as oil, electricity and heat, this may put extra strain on a company’s profit as more money is going towards the keep of the company rather than the success. Wages and may be cut and this could reduce in an unhappy workforce which leads to bad industrial relations. Advertising costs may also be reduced and this could result in a reduction of productivity as the public may not be aware of the service.

Disposable Income:

Because of the loss of jobs in the economy today, many are suffering from a major reduction in their salaries and therefore have less disposable income to spend on non-essentials. This may be a problem for our company as clients may not have the money to pay us on time, and therefore could result in our company falling into debt. It could also cause a problem as fans may not have the disposable income to pay for tickets for shows and tours etc. This will lead to a reduction in profits which could damage our reputation.

Social:

Social analysis is based on lifestyle trends, demographics, consumer attitudes and opinions. DVD sales are in decline but comedian DVD sales have risen 38% from same time last year. This is even with 800 Woolworth and Zavvi stores being closed. Stand up comedy is a particular popular gift at Christmas with more than half of comedy DVDs sold being used as gifts compared to just 28% of all DVDs. They are more likely to be a planned purchase  with figures showing 62% of purchases have been decided on before the customer enters the store compared to 42% for all DVDs (Katie Allen, Guardian, December 2009). Michael McIntyre broke all barriers by selling out Wembley Stadium 6 times.

Technological:

Government spending on Research + Government and Industry Focus on Technological Effort

1.      Invest in talent scouts.

a.       Comedians who would benefit from PR representation.

2.      Invest in open mic nights in more populated areas.

a.       Renting of venue.

b.      Advertising (schools, shop windows, workplaces).

New Discoveries/ Developments

1.      Organise gigs for comedians to perform.

2.      Encourage to continuously write new material (More likely to increase popularity).

3.      As popularity grows, book radio interviews, have articles submitted to local newspapers.

Speed of Technology Transfer

1.      Organise unpaid gigs in bars/ restaurants.

a.       To establish fan base early on.

2.      Ensure that performance is aimed at right audience.

a.       So that jokes will be understood and will not be found offensive.

Rates of Obsolescence

1.      Material must be kept current/up to date.

a.       Encourage comedians to read news etc..

FIVE FORCES

The Five forces analysis is a model which forces a company to consider how their industry is affected by:           

·         The threat of new entrants to an industry

·         The power of the suppliers to an industry

·         The threat of substitutes to an industry

·         The power of the buyers of an industry

·         The competitive rivalry that exists within an industry

This report will focus on analysing how these five forces effect the Public Relations industry.

THE THREAT OF NEW ENTRANTS

The Threat of new entrants to our public relations company is quite high. With the main source of entrants to the industry coming from both indirect and Foreign competitors.

Access to distribution channels:

The Threat of new entrants who can access the distribution channels in which we are focusing on is high. Although almost all of domestic  talent in the comic industry, who are earning a substantial amount of money to hire a Public relations company, are under contracts with other Public Relations companiess. Because of this our firm will focus on recruiting comedians who are emerging. Indirect competitors may find this to be a strategy in which the may want to pursue. While Indirect competitors may only be involved in Public relations for different industries  such as Sport stars or politicians they may decide to Branch out into Comedians and are more likely to attract clients if the already posses big name clients and experience in the industry in which the specialise. Foreign competitors may also decide to access our distribution channel by setting up in Ireland or By recruiting clients and developing them in a different country.

Economies of scale:

In order for a competitor to pose a significant threat on entry to the market the must compose a significant amount of staff with certain expertise and reputations to handle clients demands. The only competitors who have significant economies of scale to pose a threat and enter the market are Indirect and foreign competitors as thease are already established comapanys who have the staff and expertise to enter the market. However new entrants also structure a minor threat of entry despite having less then a sufficent amount of staff and expertise by recruiting and "Nabbing" some of our high earning Current and potential clients.

Differentiation:

Although the threat of new entrants into the market is mainly from Indirect and Foreign competitors there is aslo a threat from new entrants through differentiation. Differentiation is Key in Public relations and quite sparse, With Public relations almost relating to everything we do in today’s world, Whether it is a PR firm for Musicians, Sports stars or Politicians. The Threat of new entrants is high as the maybe able to enter the market differentiating from other PR firms and focusing solely on a certain Industry of clients.

Summary:

Because the threat of new entrants is high the industry will experience a flattening off of profits in order not to attract competitors whether the it is new, Indirect or Foreign.

Exit Barriers:

Exit barriers are the strongest uncertainty for comedians hoping to exit out of their roles. To go from stand up comic, to salesperson or any secondary job or worker, or contract worker.  position creates a struggle as you can subconsciously employers can not take them seriously.

Strategies

Core Product/ Service

·         “Knock Knock” provides top class publicising for our clients.

·         “Knock Knock” advise comedians on how best to deal with media or fans in way which allows them to have full control over their own careers.

·         If requested, our clients will be tutored on dealing with the media and shown how to reach their own comedic potential.

Expertise

·         All staff should have degrees in Media and Public Relations, have experience dealing with the press and have expertise in Public Relations, Crisis PR, researching, Communications and event management.

Personalisation

·         Knock Knock’s clients will have the undivided attention of each senior member of staff.

·         Clients are not specific to any agent or publicist. This way, our clients deal personally with a large number of staff.

Brand Image

·         Knock Knock’s staff are passionate, friendly and knowledgeable. Knock Knock puts its clients first and will be available to them at all times.

·         The staff ‘sharing’ of clients allows work to be done while always having someone available to deal with any problems.

Structure

Project Based Structure

 A project based structure will mean that Knock Knock will organise itself around a project, then on completion of a project the directors of Knock Knock will move to different projects.  There are many advantages for Knock Knock and its clients by using a project based structure for example.

·         Easy to control quality: While working on a project it is hugely important that the quality of the work is monitored at all times. It is important for the client and Knock Knock that the work produced is of the highest possible standard. 

·         Exchange of Knowledge: Knock Knock will be in a position to combine all it’s knowledge of the entertainment industry.  We believe this will have the advantage of increasing the quality of work carried out by Knock Knock, which ultimately benefit the client and the company.

·         Responsibilities: With this kind of structure the roles and responsibilities are clearly set out.  Every director will then know the roles and responsibilities they have for every project that Knock Knock is working on.  We also believe that this will have the effect of reducing the risk of fallout among the directors of Knock Knock.  A project based structure will also show the client what roles and responsibilities the directors of Knock Knock have for each project. 

·         Very Motivational: A project based structure will create goals and deadlines that Knock Knock will have to meet in order to achieve success on behalf of the client.  This will prove to be a great source of motivation for the directors of Knock Knock while working towards a deadline.  It is also hugely important for the client to see that Knock Knock is motivated about their success in the entertainment industry.

·         Everyone is treated as equal:  A project based structure will ensure every member if the team is treated equally.  It is also hugely important that there is no one individual within the company dictating terms to others. The project based structure reduces the possibility from this taking place. The fact that everyone is treated as equal will lead to greater project accountability.  It is hugely important that every director of Knock Knock can stand over the work that they produce for each client.  It is also important that the client is aware that each member of the Knock Knock team is accountable for the work they produce.  Project accountability is also vital if Knock Knock runs into difficulties with the client. 

How will we compete?

In order for Knock Knock to compete against our rivals in the industry, we will aim to provide a good quality service to all potential clients.

Personalised service:

Due to Knock Knocks size and the fact it is relatively new to the market, we believe that a personalised service will put us in a stronger position while competing against our bigger rivals.

·               As part of our personalised service we will provide one to one meetings with the client

·               Invite the client to action plan meetings     

·               Provide contact details to the clients

·               As part of our personalised service we believe it is vital for the client’s success that we give them 100% commitment regardless of their status. 

·               Give client access to the data base. 

Education

Each director of Knock Knock holds a B.A in Media and P.R. with one director also holding a degree in I.T; we also have experience with internships at P.R Company’s.  This will give the client the advantage of having a P.R consultant, who can,

·         Manage Publication requirements

·         Maintain a website

·         Prepare press releases

·         Organise publicity events (What the course is about)

As new graduates we will be able to provide the client with a fresh new approach to the world of Public Relations, while having capable experience. 

Database:

It is essential for Knock Knock to have a good client data base system in place if we are to compete against our rivals in the industry.  We in Knock Knock also believe that it is important that our clients can get access to their file on the data base, to facilitate this we will provide every client with a password.  This will give the client an opportunity to monitor their progress 

Staged payments:

It is important for the client that he or she does not have to face paying a bill at the end of the year; instead Knock Knock will set up a monthly payment system where the client will pay every month. This will have the effect of creating a level of trust between Knock Knock and its clients, and also have a consistant flow of income. 

Low cost fees:

Knock Knock will aim to charge the lowest possible fee to its clients.  Knock Knock will endeavour to cut overheads before raising the fee we charge to our clients. We hope this will have the effect of giving us the competitive advantage over our rivals and attracting more clients to the company.

Quality

We are each in charge of quality, but responsibility must be taken for our service if our quality starts to decline. The managing director will have control of the work database and will be in charge of regular meetings. It is the Managing Directors responsibility to monitor work being sent out and to in regular contact with the clients. The basis of quality control, which will be analysed on a monthly basis, will be whatever the client sees i.e. contracts, presentations, work on the database will all be kept to the highest standards.

To get an insight on our quality, we will benchmark against all service industries. An outsider from a soliciting firm, emergency services, bank managers, and advertisers. We choose these industries for the following reasons

·         We had a contact in the industries

·         Soliciting firm gives us ideas to present from a legal standpoint

·         Emergency services eg Ambulance Driver gives us a great idea on how to have better response times with the client.

·         Bank managers will see hundreds of presentations a year, we can perfect our sales pitch from this angle.

·         Advertisers will then give us different sales angles and how to sell the service to the client.

Communication

Internal:

·         Knock Knock will not have a set premises during the first year of operations. We shall run meetings from our household premises. This will cut the expense of rent.

·          A Business contract will be set up with Vodafone, because of the cost and quality of service

·         Smartphones will be used by Knock Knock members. This will create easy access to e-mail, Skype and access to our computer database.

External

·         A database will be set up and run from the Managing Directors house with all contact details for clients. All information on a clients work will be kept on this database. As we have a graduate with an IT degree, we can set up a program to let our clients view our work on their case. This will also allow us to see how much our client is accessing, and when they are accessing. We will then know what questions our client may pose to us at our next face to face meeting or phone conversation.

Culture
Stories

·           Knock Knock wishes to be known as a  reliable, professional, client friendly company in the world of public relations. In order to encourage stories from clients that will benefit Knock Knock, we will guarantee quality of service and will make our clients our number one priority. Our phones will be constantly switched on and we will be open to clients’ calls and questions with round the clock service should they need it. We wish to treat our clients’ careers with upmost professionalism as well as portraying a stress free environment during our meetings with clients

·           We also wish to ensure the clients  are in control of their own careers and not force any decisions on them. We will simply advise them on what we believe to be the best route to take. We will provide them with every piece of information and not hide anything from them. Basically we wish to be known as a truthful company.

Symbols

·         Knock Knock has its own logo which is shown on the cover page of this project.
The colour scheme of the venues we choose to meet with clients in is important. An interior designer will be brought in when we need a premises. In the future when Knock Knock possesses its own building, the colour scheme will mainly be light shades so to help the clients feel comfortable and at home.

·         Looking in to the future, Knock Knock hopes to have a successful client as the face of the company.

Verbal

·           Knock Knock will not use any form of jargon as this may lead to clients becoming confused. Knock Knock wishes to be as clear as possible, using simplistic language and layouts for invoicing.

Power Structure

·           Knock Knock will use a project based structure so there will be no single most senior member of staff. The firm will reflect the beliefs of the founding members of Knock Knock; these members will discuss what the firms’ core beliefs will be.

Rituals and Routines

Routines

·           Knock Knock will go with a traditional approach of having a client’s own representative from within the firm greet them at the door of the venue where the meeting will take place. Any food or drinks during the meetings will be paid for by the company.

·           We at Knock Knock wish to make our clients as comfortable as possible during meetings so small amounts of alcohol may be consumed during meetings in order to achieve this. However the firm representative will only drink if the client is too.

·           Members of Knock Knock are encouraged to start their everyday routine by checking the firm website to check if any clients have left messages and to see what parts of the website clients have viewed. This helps employees find out what the clients are most interested in.

·           At 2pm on workdays. All members of the firm conference through Skype to discuss ideas and any progression on the current project.
      

Rituals

·           When Knock Knock gets a client we like to celebrate by opening a bottle of champagne with the new client.

·           When Knock Knock receives an annual gross profit, all members of staff will be given an end of year bonus.

·           Every six months Knock Knock will have a small party. We do not wish to take our survival for granted.

Organisational Structure

·           Knock Knock will use a project based structure.

·           This structure means that Knock Knock’s structure will not be as hierarchical as other firms. There will be no single senior member of staff. Instead there will be a team of people with equal shares in the firm. However there will be just one member who will be CEO but just as a title. This will not give this person any extra power over their colleagues.

·           Knock Knock  aims to be as informal as possible in order to portray a relaxed, stress-free work environment.

·           The project based structure will encourage collaboration rather than competition. All members of a team will be working together on a project before moving on to a new one.

Paradigm

·         Knock Knock believe in survival through the difficult early stage of Knock Knock’s life. Prepared to suffer a loss in the early stages.

·         Knock Knock’s clients are top priority. Our team will do everything in its power to help the client in any way we can in a way that will suit the client best.

·         Knock Knock believes that a work environment needs to be enjoyable so work can be completed more efficiently and stress levels can be reduced.

·         Knock Knock believe that expansion of Knock Knock all around the UK in Ireland after a few years in the industry is very achievable.

Leadership

This is the ability to influence people to follow a particular path or direction. It is the ability to achieve results through people.

The type of leadership ‘Knock-Knock’ has decided to implicate is a “democratic” style of leadership. A democratic leader involves all members of his/her team when making a decision. He/she listens to all employees inputs and then makes an overall decision if a decision can’t be made together. The managing director has to do this in order to be successful.  We have chosen this style of leadership because we at Knock-Knock believe teamwork is vital for the success of a company and that it will be the style that is most effective.

There are two key areas that accompany this style of leadership, direction and delegation.

Direction

The leader will set the tasks and objectives for the firm and will ensure that these are communicated effectively to the other shareholders. In order to achieve this aim we have introduced a mission statement.

“To help clients achieve their potential and introduce them to the entertainment industry.”

 

Delegation

 Our leader at Knock Knock promotions delegates work  by passing on responsibility and authority to all workers to achieve clearly communicated goals. Workers will be given time and space to work but will also be held accountable for the success of the task. We believe that without delegation we will find growth or expansion extremely hard to achieve.

Upon enforcing this specific leadership style we found the following benefits

·         Decision-making is more informed.

·         Communication is improved therefore allowing the employees to feel motivated and recognised.

·         The atmosphere is improved.

·         Intrapreneurship is encouraged therefore allowing more ideas to be introduced

How could Knock Knock Fail

There are many different ways Knock Knock could fail.  These reasons fall into two categories Internal and External. Research has shown that internal factors could be more influential in a business failure. (Fitzpatrick’s consultants 2001).

Internal: (factors that are unique to the company) ( Fitzpatricks consultants, 2001)

Run out of Money: is the main source of failure for most start-up companies.  It is vital for the success of any company that there is an adequate cash flow.  Since the recession, Financial Institutions are very reluctant to lend money to small businesses,  this together with giving too much credit to clients, and  poor accounting processes could not only result in Knock Knock running out of money but failing altogether. 

Dispute between partners: a dispute between directors of Knock Knock could also be fundamental to the company’s failure.  One possible reason for a dispute could be a director ripping off a client.  This would certainly cause friction among the directors owing to the huge financial and personal commitment that has been given to the company.  It is not viable to call in a solicitor every time there is a dispute between directors.  I believe it is also important to note that an inadequate dispute procedure might also result in Knock Knocks failure. 

Culture: The culture will influence how the firm acts and ultimately whether the firm succeeds or not.  It is hugely important that Knock Knock encourages a culture of reliability friendliness and success, because these show the true beliefs of the company.  If Knock Knock fails to encourage positive beliefs and good staff attitudes it will certainly contribute to the company’s failure.  It is also important for the companies’ success that the language used when communicating to the client is free of jargon and easy to understand.  Clients will not stay with a company if they do not understand what is happening.  It is also important when avoiding failure that there is no one individual holding all the power, this could lead to difficulties  

Leadership: this is the ability to influence and follow a particular path or direction it is also the ability to achieve results through people.  It is hugely important that the C.E.O of Knock Knock holds this ability because if he does not the business will most certainly end in failure.  It is also hugely important for the leader of a company to have a management style that suits the company and the workforce.  An authoritarian leadership is when you have high concern for production and a low concern for people; this could lead to friction among the directors of Knock Knock and significantly raise the chances of failure.  It is hugely important that the C.E.O of Knock Knock has the ability to give direction. If the C.E.O is unable to do this the company will not be successful in the future. It is vital that the C.E.O holds all the directors to account; failing to do this could lead to clients leaving the company and subsequent failure.

External (Factors within the trading environment in which the company operated) ( Fitzpatricks consultants, 2001)

Decline of Market: Knock Knock is a company that represents individuals involved in the entertainment industry.  If for example ticket sales for various productions are down, it could become difficult for Knock Knock to get paid.  If Knock Knock has clients that are unable to pay the risk of failure would be substantially raised. D.V.D and C.Ds sales are an important part of an entertainers income.  A decline in this market would be one of the fundamental reasons for Knock Knocks failure. 

Changes in taxation ( Fitzpatricks consultants, 2001): The raising of taxes on entertainers would have an effect on Knock Knocks profit margins and therefore increases the chances of failure.  A rise in V.A.T would also put additional costs on both Knock Knocks and its clients.  In the current system any individual who produces a work that has an artistic or cultural merit is exempt from income tax up to a limit of €40,000 per annum. (Taxation Summary 2011) The abolishment would have a negative effect not only on the client but also on Knock Knock as the chances of failure would have significantly increased.  It is also important for the future viability of the company that the corporation tax rate remains at its current level of 12.5%.  (Taxation Summary 2011)

Market competition (Fitzpatricks consultants, 2001): Knock Knock will have to try and compete against bigger more established companies in the world of Public Relations.  If the market is flooded with P.R firms who specialise in representing entertainers it would prove very difficult for Knock Knock to compete, against an established P.R agency that has a proven track record in the entertainment industry. Such circumstances would lead to Knock Knocks failure. 

Economic Recession: In a recession there is a greater chance of Knock Knock failing.  A recession also means banks are very reluctant to give Start-up Companies like Knock Knock any credit or extension on any existing credit.   This lack of credit will lead to Knock Knocks failure. In a recession it could become increasingly difficult for Knock Knock to receive payment for services provided.  This could have the effect of causing a cash flow shortage which will most certainly lead to the companies failure.  In a recession the chances of failure unfortunately far outweigh the chances of success. 

Combination of External and Internal reasons for company failure

Running out of Money and Decline of market: are two of the most likely combination of external and internal reasons for company failure.  A financial institution would be very reluctant to lend money to Knock Knock if the entertainment industry was in decline.  If Knock Knock runs short of capital it would no longer be a viable business and failure would be the most likely outcome.  In order for Knock Knock to become successful and avoid failure it needs both sufficient capital and a viable market. 

Market Competition and Culture: For Knock Knock to compete against its rival in the industry it must promote positive stories about itself. If Knock Knock is unable to do this then the most likely outcome will be company failure because no client would want to be associated with an unsuccessful P.R company. If Knock Knock is to compete in a crowded market place it must be totally jargon free when dealing with the clients.  Clients will not stay with the company if they do not understand what is being said, this will lead to clients subsequently leaving the company and the companies failure.

 

 

 

 

 

 

References

Institute of technology Carlow. What is the Course about,(online) available :http://www.carlow.ie.(accessed date 14/2/12)

Fitzpatrick associates Economic consultants. (2001). Small business failure in Ireland. Report to the department of Enterprise Trade and employment.

Martyn, J., Reck, P., and Cooney, T. (2011) Taxation summary. Finance act 2011, Irish Taxation Institute