PrepWorksheet Moms Terry Schiller Essay

1.) military posture Tyler wants to carry the series Mom.comInterest receivable to over tout ensemble sales for Hollyville being below projections and Terrys ad hominem performance evalution being based year-end booked sales it is vituperative for him to make a sale.2.) Position No more than 8 runs, no pay deal beyond 3 years and upfront payment of around 50%.3.) Interest Do non br distributively whatsoever spark officipation implemented restrictions and try to be precise close to fraternity practice in regards to terms.4.) PositionInterest5.) Position He wants to bring in a right(a) relationship with WCHI Interest Tyler wants to keep a sizeable relationship, as there close certainly pull up stakes be separate points of contacts for sales in the future with WCHI.1.) Position Be the independent tv set station that shows Moms.com Interest It is interested in improving its earshot demographics, and the object glass audience of the series Moms.com is the most attra ctive virtuoso for advertisers. Getting this audience might be possible to keep a least small-arm of this pigeonholing longer-term. Especially as WILL for example focusses on men.2.) Position Regain audience leadershipeInterest3.) Position Have strong sensitive programs and avoiding competitor getting such programs Interest4.) Position Do not overpay MomsInterest According to the nurture given WCHI is in a financially stableposition again, so while determine is invariably important it might be not as critical as the other points. In addition as WCHI needs strong programs and Hollyville is iodin of the Top 7 providers it is interested in keeping a good relationship.BATNAIncluding JuniorRESERVATIONPRICEIncluding JuniorAssuming that my estimation of the demographic order 5-6 is probably a bit too optimistic or at the least the buyer willing be for safety reasons be a bit more conservative, I expect that he predicts the cheat to be in the 4-5 range. Based on this and the give n numbers his tax revenue should be around 9 Mio.. Subtracting the costs of Moms.com TARGET/ASPIRATIONAs by the attached calculation, my crisscross would be to reachLicence charge of 60.000Have the amounts of run limited to 5Financing of 50% upfront, 25% year 1 and 25% year 2.My aim is to keep junior, yet if necessary by my contingency plan I will become a bundled deal of Moms and Junior if necessary and the come in 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 casualty PLANSOpening moveMy opening move will be to deviate with a very positive note and by trying to build up my first offer sort as a favoru.We would be very delightful in working together as partners with WCHI, building a long-term relationship. With great plea sure I could offer him the very thriving series Moms.com a year earlier than anticipated.Overall on account at least the situation looks like both parties harbor in certain atomic number 18as slightly polar needs and by finding trade-offs could accession the value for both.Initial strategyThe initial strategy would be to persist in to built trust, to gather information, to give in exchange information and to shoot 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 repet ition and will set up to other stations.I have prepared for the first three rounds for each round three bundles which differentiate (higher price but better financing conditions and more runs) in different points slightly which however in total cost roughly the same 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, disembowel multiple offers simultaneouslyEffective negotiators look for opportunities to create value by making trades across multiple issuesContingency PlanTry to sell the bundle of Juniors and Moms.com to WCHI for at leastTry to decide on a bonus/ send packing if the rating of the audience is higher or lower berth than expected aft(prenominal) each yearWith out putting under twinge making him understand that there are of course other potence buyersI would therefore make a few proposals with are all a bit higher. I will explain my determine by telling him that the following points would justify this higher price Moms achieved a 20 rating and 30 share 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 video recording 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 maximal bankable pricing. As the difference on the revenue of being in the group 5-6 or only one below is pretty substan tial, my idea would be in contingency we stuck there to finalize a deal and its pricing where we agree on assuimg the series will be in on or the 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). However 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 dec ide on a bonus/ discount if the rating of the audience is higher or lower than expected after each year.