It's not all special
effects. Paramount Pictures Corp., which brought you Star Trek VI: The
Undiscovered Country is using more mundane technology to go where no
sales force has gone before. Given that the movie industry's 1991 ticket
sales fell 6.4% to $4.7 billion from 1990's $5.02 billion, and that
both the cost of, movies and the cost of marketing went up 10% last
year, Paramount has wisely decided to make sure it doesn't miss any
sales opportunities anywhere in the world.
The company is now
midway into an automation program for its international sales offices
in Los Angeles, London, Toronto, and Sydney, Australia. Paramount the
largest entity of the $2.3 billion entertainment unit of Paramount Communications
Inc., has only 10 salespeople in those four offices to manage 1,200
movies and television series in 212 TV markets around the world. With
retirements narrowing the knowledge base available to the sales force,
and the number of worldwide customers on the rise, Paramount felt the
urgent need to improve the delivery of information to those offices,
says Diana Nail, Paramount's West Coast systems development director.
The U.S. sales force
has been using a similar but less sophisticated system for three years;
the international offices will get an enhanced version of that system.
"Our people wanted to be able to see the worldwide marketing opportunities
for our MacCyveu episodes, or for Star Trek VI, "explains Gary
Naiman, VP for Paramount's West Coast IS group in Los Angeles.
To that end, Paramount
recently began installing a PC-based sales management system connected
via modem to a mainframe at the New York headquarters that has world-
wide sales data on Paramount's properties. The hookup enables sales
people to immediately check the availability of a TV series or film
for a specific market. They previousIy used a book that had to be updated
manually.
The system portrays
the world as a giant grid, showing each product and its availability
by market. The marketing opportunities for MacCyver episodes, for example,
can be easily identified; similar to a spreadsheet, it depicts rows
and columns with, for instance, one axis listing Cheers, Happy Days,
and Laverne and Shirley, and each market on the other.
A blank space at
a column intersection indicates that a particular product has not been
sold in that market. So salespeople focus on that niche. "It means
a lot to the sales force, because there's an awful lot of those rows
and columns - more than your administrative staff could ever cope with,"
says Naiman.
When negotiating
a sale with a customer, being able to confirm product availability on
the spot-and whether a particular film or TV series has been licensed
in that market can make the difference between making or losing a sale.
"If you can give the customer that information while he's on the
phone, you are more likely to make the sale," says Nail. "We've
been finding product that we didn't even know about." Adds Naiman,
"It gives us a major competitive advantage."
That could be important,
especially in the difficult environment Paramount and other major studios
now face. "The movie business suffered a pretty rough year in 2992,"
observes entertainment industry analyst Harold Vogel of Merrill Lynch
Co. Inc. in New York. He says Paramount's sales management system "will
help, but it's not a critical variable." Paramont's key to success,
he argues, is still making films with boffo box-office appeal. - Doug
Bartholomew -