PrepWorksheet Moms Terry Schiller Essay

1.) Position Tyler wants to sell the series Mom.com participation Due to overall sales for Hollyville macrocosm infra projections and Terrys personal performance evalution being based year-end booked sales it is critical for him to make a sale.2.) Position No much(prenominal) than 8 runs, no financing deal beyond 3 years and upfront payment of near 50%.3.) Interest Do non severance any company implemented restrictions and try to be very close to company practice in regards to terms.4.) PositionInterest5.) Position He wants to go a good relationship with WCHI Interest Tyler wants to keep a good relationship, as there most certainly will be other points of contacts for sales in the future with WCHI.1.) Position Be the independent television station that shows Moms.com Interest It is interested in improving its consultation demographics, and the tar lend audience of the series Moms.com is the most attractive one for advertisers. Getting this audience might be possible to keep a least part of this concourse longer-term. Especially as WILL for example stressses on men.2.) Position Regain audience leadershipeInterest3.) Position Have beefed-up new programs and avoiding competitor getting such programs Interest4.) Position Do not overpay MomsInterest According to the information given WCHI is in a financially stableposition again, so darn price is always important it might be not as critical as the other points. In addition as WCHI needs strong programs and Hollyville is one of the Top 7 providers it is interested in keeping a good relationship.BATNAIncluding JuniorRESERVATIONPRICEIncluding JuniorAssuming that my estimation of the demographic pass judgment 5-6 is probably a daub too optimistic or at the least the buyer will be for safety reasons be a bit more conservative, I expect that he predicts the range to be in the 4-5 range. Based on this and the given numbers his revenue should be around 9 Mio.. Subtracting the costs of Moms.com TARGET/ASPIRATI ONAs by the attached calculation, my target would be to r for each oneLicence price of 60.000Have the amounts of run particular to 5Financing of 50% upfront, 25% year 1 and 25% year 2.My aim is to keep junior, however if necessary by my contingency blueprint I will create a bundled deal of Moms and Junior if necessary and the total outcome (based on Junior bringing in an additional 1.000.000) would be similar to my target without Junior. Target of paying not more thanTry to create a package including another TV series and programme and get a rebate for the bundle of two programmes. WHAT IS YOUR OPENING MOVE? INITIAL STRATEGYAND CONTINGENCY PLANSOpening moveMy opening move will be to stir up with a very positive note and by trying to formulate my first offer sort as a favoru.We would be very bonny in working together as partners with WCHI, building a long-term relationship. With great pleasure I could offer him the very successful series Moms.com a year earlier than anticipated.O verall on paper at least the situation looks like both parties hurl in certain areas slightly unalike needs and by finding trade-offs could increase the assess for both.Initial strategyThe initial strategy would be to continue to built trust, to gather information, to give in exchange information and to ask questions. It will be critical to find out which of the points to discuss are very critical for him, especially points I have strict company limits. As the amount of runs is an important point of Hollyville it will be important to find out how critical it is for WCHI and what he had in mind. My focus will be to understand if for WCHI a repetition of the series above 6 is critical and regards any value for him. Of course using series more often reduces costs, however at some stage there will be a trade-off as at least part of the audience will get bored of the repetition and will switch to other stations.I have prepared for the first third rounds for each round three bundles w hich differentiate (higher price but better financing conditions and more runs) in different points slightly which however in total cost roughly the aforesaid(prenominal) to find out his preferences. With that information I can propose new deals during the negotiation reducing the total price from being very high at the start round by round a bit.As by the situation of Hollyville needs to have future sale which lots of competition ( and WCHI being interested inThe lucrative business is to to sell to independeant but only 4 there,Make multiple offers simultaneouslyEffective negotiators look for opportunities to create value by do trades across multiple issues calamity PlanTry to sell the bundle of Juniors and Moms.com to WCHI for at leastTry to decide on a bonus/ discount if the rating of the audience is higher or lower than expected after each yearWithout putting under pressure making him understand that there are of course other potential buyersI would then make a few proposals w ith are all a bit higher. I will explain my pricing by telling him that the following points would justify this higher price Moms achieved a 20 rating and 30 partake in in prime time, the series targets the demographic group with the highest advertising rates, making it idea for the for independent stations so important 600pm slot. In addition, as he would know, first-run network television programs typicallyincur a 20% loss.need to exchange information about their preferences and priorities.One of the critical discussion points I expect to be, is the different assessment of the rating within the primary demographic category as this is what defines the revenue and therefor the value for the buyer which ultimately influences his maximum acceptable pricing. As the difference on the revenue of being in the group 5-6 or only one below is pretty substantial, my idea would be in case we stuck there to finalize a deal and its pricing where we agree on assuimg the series will be in on or t he other rating group.We will then fix in our deal that after the first year we will check in which rating group the series ended up. Depending on the decided rating group and outcome the buyer would receive a discount in case the real rating group was below the expected one or would need to pay a bonus in case it was above the expected rating group.Contingency PlanIf the negotiations get stuck, I will explain Kim that of course there is concrete interest by competitors for the series (without telling any concrete numbers). withal we had Hollyville would be very interested in finding in working together. I would then offer a deal including Junior in the package. It is not the most profitable product for us but will make the overall deal more attractive for WCHI. Try to sell the bundle of Juniors and Moms.com to WCHI for at least Try to decide on a bonus/ discount if the rating of the audience is higher or lower than expected after each year.