DiverCity 2013 Case Package

7/29/2019 DiverCity 2013 Case Package

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Case Prepared by:

Zach Witte

Staff Accountant, KPMG Canada

Michelle Cherny

Staff Accountant, Deloitte Canada

Special Thanks to:Diana KhongMarketing and Education Coordinator, Inside Out LGBT Film Festival

Andrs TilcsikAssistant Professor of Strategic Management, Rotman School of ManagementUniversity of Toronto

Presents

Reel Growth Potential

Brought to You By:


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Inside Out: Reel Growth PotentialBy: Zach Witte and Michelle Cherny

As you walk down King Street in downtown Toronto, you come across a beautiful skyscraperseeming to touch the sky itself. You are standing in front of the Bell Tiff Lightbox, the greatmovie shrine of Toronto. You venture inside to grab a coffee and check out the XMen Master:

Gordon Smith exhibit in the lobby. While in the lobby you overhear an argument between twopeople over the Inside Out festival. Curious, you pull out your iPhone and Google it(www.insideout.ca). You listen to the heated conversation and learn that the two individuals,both of whom board members of Inside Out, are discussing the need for a strategic consultantto help ensure the growth and sustainability of the organization.

Being the enterprising intermediate consultant you are, you quickly jot down a few specifics ofthe conversation to report back to your manager at ZM Consulting. You rush over to the officeand inform your manager of the engagement opportunity. Your manager, Laila Jenkins,congratulates you on taking the initiative and expresses her excitement over this excellentopportunity.

Laila contacts Inside Out and offers ZMs services in developing a growth and sustainabilitystrategy for the organization. She speaks with Diana and discusses what the engagementwould entail. Diana mentions that Inside Out is looking to address two main strategicchallenges. Laila takes a few notes, hangs up the phone and calls you into her office. She letsyou know that she has arranged for a tender presentation on February 8thto Inside Outsmanagers. Laila has asked you to prove that ZM Consulting is the clear choice to help InsideOut achieve its goals. Laila notes that due to the large number of tender proposals, Inside Outhas requested that you prepare a ten-minute presentation with a five-minute question andanswer period.

Laila adds that Inside Out is known for its creativity and innovativeness, and that she expectsyour tender presentation to go beyond a simple slide deck. She has recently learned that arival consulting firm will be including multimedia in their presentation and expects that ZMstender presentation to be competitive. Laila explains that she will be providing you with thespecifics of her conversation with Diana, as well as the Inside Out deliverables. She asks thatin the meantime you develop an understanding of the entity and its environment. Youimmediately assemble your team to prepare your presentation for Inside Out.

One of your team members provides you with the following background information:

Inside Out is a non-profit registered charity dedicated to showcasing film and video created by

and about lesbian, gay, bisexual and trans (LGBT) people. Inside Out exists to challengeattitudes and change lives through the promotion, production and exhibition of film and video 1.Bringing the LGBT community together for over two decades, Inside Out is best known for itsannual film festivals, filmmaker initiative and year-round screenings. Inside Out is the host tointernational queer cultural events that engage, celebrate and nurture communities of diversesexual and gender identities through the exhibition, promotion and production of film and videoart.

1http://www.insideout.ca/about-us/overview
http://www.insideout.ca/http://www.insideout.ca/http://www.insideout.ca/http://www.insideout.ca/


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Inside Out began as a transgressive arts organization at the tail end of the 1980s, a decademarked by the AIDS epidemic and institutional discrimination. In 2010, the Canadiangovernment withdrew funding from Torontos Pride celebration, sending shockwaves throughthe LGBT community. Despite the funding crunch in Toronto, Inside Out has developed from avolunteer collective into a fully staffed not-for-profit organization with corporate sponsorship.

Since its inception in 1991, the Inside Out Film and Video Festival has become the largestLGBT film festival in Canada and the third largest in the world, with multi-day festivalsoccurring in Toronto and Ottawa annually. Inside Out currently trails behind the TorontoInternational Film Festival (TIFF) and Hot Docs, an international documentary festival, asTorontos third largest film festival of any kind, whether queer or heteronormative.

With major sponsors such as the Royal Bank of Canada, Xtra!, Toronto Starand OUTtv, InsideOut has drawn 35,000 people to their screenings, artist talks, panel discussions, installationsand parties.

As a result of their position in the film festival industry on a local, national and internationallevel, Inside Out has leveraged important partnerships to launch new initiatives such as cross-

promotion with Hot Docs and the Feminist Porn Awards.

The organizations marketing initiatives to promote its film festivals and local initiatives includeits website, e-newsletter, social media efforts, print and online advertisements as well astelevision broadcast and outdoor advertising in places such as the TTC subway cars. See

Appendix I for an excerpt of the 2012 Inside Out Marketing Plan.

After you read your team members initial report, Laila sends you an email confirming thedetails of the strategic challenges facing Inside Out. She mentions that as per her discussionwith Diana, Inside Out is looking to establish themselves as Torontos second largest filmfestival within the next 5 to 10 years. Inside Out is looking to accomplish this growth via

targeted audience segments and increased presence and prestige on a local, provincial,national and international scale. The details of their objectives are presented on the followingpage.


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Issue One: Targeted Growth

Inside Out presents itself as An international queercultural event that engages, celebratesand nurtures communities of diverse sexual and gender identities through the exhibition,promotion and production of film and video art.

Audience Information:

Captive Base

This segment comprises primarily of members of the LGBT community in Ontario. Theysee the Festival as a showcase for the best Canadian and international LGBT film; acelebration of diverse sexual and gender identities; an exciting venue that brings theircommunity together, and as an educational forum. These audience members are mostengaged and will attend the Festival as long as queer content is represented on film.Marketing efforts do not have to focus on the Captive Base but must always beconscious of potentially offending or alienating this key group. There is a strong focuson converting this group into members.

Torontos Film Lovers (Growth Focus)

This segment includes anyone in Toronto who has ever attended any film festival. Forthe sake of simplicity and a sense of focus, crossover marketing efforts in 2012 willfocus on the TIFF and Hot Docs devotees. This group is engaged, knowledgeable andpassionate about film. The intent is to communicate that the quality of programming isnot lacking. These Film Lovers will see the same titles at TIFF or Hot Docs, but will notcommit to the same films at Inside Out.

Youth (17-25) (Growth Focus)

The Youth demographic represents a relatively small segment of the current audiencebase. The general consensus among Inside Out managers is that there is very littleawareness of the Festival. Fortunately, there is a strong demand among the Youth forqueer cinema. Since this segment is very receptive, marketing efforts toward youngeraudiences will focus on increased visibility in social media, student organizations andcampus newspapers.

Women and Trans People (Growth Focus)

Festival patrons have historically comprised of many more men than women. The

perception from the female community is that there are too few films that resonate withwomen. It is imperative that all communications stress Inside Outs directive of bringingthe best films from around the world. If it were a particularly strong year for women infilms, marketing would then focus on the strength of films as a package and position itas a spotlight. Otherwise, the selling point would be on overall quality of programming.Excellence has universal appeal.


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The Inside Out Festivals organizers would like to see robust growth in attendance by out-of-town patrons. Inside Out sees particular opportunity with out-of-town patrons as they representa key value proposition of the festival when applying for government grants. The wider InsideOuts patronage, the more culturally significant the festival appears to the government and thusestablishes Inside Out as a strong candidate for funding.

The organizers would also like to see considerable growth in non-LGBT patrons as theyrepresent a fairly untapped market. Inside Out currently has limited patronage cross-overbetween TIFF and Hot Docs despite the cross-promotion currently employed. Inside Out isseeking new and creative methods to attract non-LGBT patrons, including those who do notregularly partake in TIFF and Hot Docs.

To attract new patrons, Inside Out must weigh the growth potential against associated costs.ZM was provided with a sample budget (Appendix II) for the current year, which illustrates a$23,000 surplus at the moment, giving you very little budget flexibility to enact new initiatives.Thus each growth opportunity you identify must result in a nearly 100% return or beaccompanied with additional funding via corporate partners or the government. To aid in thedevelopment of funding sources, the budget outlines the government grants from which Inside

Out currently benefits. Laila also provided you with the Inside Out Sponsorship package. Yourrecommendations can include new sponsor targets or possible changes to what the sponsorsreceive in order to increase Inside Outs value proposition.

Laila mentioned that in order to increase any dollar value of sponsorship, the additionalservices the sponsor receives would have to be highly innovative, helping the sponsor tosecure strong brand presence, access to future customers, or a positive feedback effect fromthe association with the organization and its initiatives.

Issue Two: Presence and Prestige

With strong corporate partnerships allowing the organization to divert its focus from sustainingoperations and concurrently reducing their reliance on the Canadian government for funding,Inside Out is looking to enhance its presence in Toronto and the world.

Inside Outs presence peaks during its ten-day long film festivals in both Toronto and Ottawa.After the festival, members of both the LGBT and heterosexual communities are less engaged.Inside Out competes with film festivals such as Hot Docs, which has established themselvesas a year-round host of documentary films through their partnership with Bloor Hot DocsCinema, located in the heart of Toronto. The main point of competition is for the attention ofmovie-goers. Despite having a clear focus on the LGBT community, Inside Out is lacking an

awareness of its festivals and bi-monthly screenings with such key demographics as youth,women, trans people, and out-of-town patrons.

Inside Out directors and volunteers have continuously worked toward ensuring that Inside Outremains at the top of mind for Toronto residents as well as a tourist attraction for visitors.Despite the popularity achieved during the hype of film festival season from May through June,Inside Out struggles to maintain the queer cinema buzz year-round.


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Inside Out initiatives in the past had included a queer video mentorship project, launched in1998, and a scholarship for queer studies in film and video, inaugurated in 2002. Inside Outcurrently hosts a regular screening series whereby the organization screens a queer film in theTIFF Bell Lightbox. The marketing strategy for this bi-monthly initiative is primarily throughsocial media and grassroots marketing.

Inside Out is continuously working towards presenting itself as a premier film festival andreassuring patrons and potential patrons of the unmatched quality of the programmingpresented.

With all of the information you have gathered in-hand, you begin to develop yourrecommendations and proposed initiatives for the tender presentation.


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Appendix I: 2012 Inside Out Marketing Plan Excerpt

Marketing Objectives

Highlight mainstream appeal Preserving the appeal of existing core audience

Increase womens attendance by 25% Increase youth attendance by 10% Increase out-of-town Festival patrons by 10% Maintain Inside Outs general awareness beyond Festival

Key Messages

Largest LGBT film festival in Canada and the third largest in the world Third largest film festival in Toronto world-class cinema, queer or otherwise 22nd year as a showcase of the best in queer cinema films that celebrate our shared

stories, challenge attitudes, change lives, and champion the voice and vision of LGBT

filmmakers An international queer cultural event that engages, celebrates and nurtures communities of

diverse sexual and gender identities through the exhibition, promotion and production offilm and video art

Inside Out is a non-profit charity with year-round initiatives that engage and support theLGBT community with bi-monthly film screenings, workshops, awards, grants, andscholarships

Inside Out is committed to providing a high-profile forum for underrepresented groupswhich includes inaugural initiatives targeted toward women and youth

Presenting Sponsor RBC

Value Propositions

Open, inviting space to celebrate queer films and talent Unique environment to unite all film lovers with bold, daring and groundbreaking cinema Second-largest concentration of LGBT focused events in the city Premier venue for world-class cinema that is often underrepresented and overlooked

Key Differentiators

VS. Other film festivals:1. Exclusively queer hidden gems that are often overlooked by heteronormative

standards2. Celebration of LGBT talent numerous events featuring film, video art, music and

dance3. Unique environment that is inclusive to all something for everyone

VS. Other LGBT and cultural activities in the city: 1. Use of film as a unifying element universal; minimal barriers to entry2. Reflects diversity of LGBT community3. Engages broad range of LGBT community4. Appeals to cinephiles


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Key considerations

Themed campaignConsistency in the Festivals image is essential to delivering strong,focused cues to attend screenings/events. Pique the interest of the curious film lover.

Program Guide The most important marketing tool. Most likely to convert the curious intopatrons. Ensure the content is clear, comprehensive and enticing.

Distribution Guide distribution will be restructured. Outposts in the city will be moreaccessible outside of the downtown core (west of Dufferin and east of Pape). Approachpopular neighbourhood outlets to join our network (Preferred Local Businesses). Establishmore meaningful, generative relationships with local businesses. Window display and guidepickup in exchange for Fest site listing and guide acknowledgment.

Metrics of Success

Festival post-mortem to evaluate the effectiveness of our strategy. Factors under review todetermine this will include: Attendance/Box Office figures Compared to other years?

Festival survey Who came out this year? How did they hear about us? Audience feedbackWhat did they like/dislike about this years festival? Other factors - Website hits and visits, # of contest entries, donations generated, etc


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Marketing and Communications Initiatives

1. Marketing and Communications Vehicles

Promotional MaterialsItem Details Cost

Program Guide 15-18K/distribution $20 000

Posters Quantity/distribution $1 000Postcards 3-5k; street team distribution $600

Print AdvertisingItem Details Cost

Metro

1/6 PageBanner1/6 Page1/8 Page

Run: Best-of basis $1 250$1 785ContraContra

Xtra!

70 CMYK Units70 Blk&Wte UnitsTicket Giveaway Contest

Ad sizeRun date details

Contra

NOW

Full Page1/3 Page1/4 PageContest

Run date details $5 000

Hot Docs Guide

Page Ad Swap

Excalibur (York)

Page Student discountFirst May issue

$300

Broadcast AdvertisingItem Details Cost

Global

2012 Trailer Run date details Sponsor

ProudFM

20-30 sec spots Throughout day Sponsor

OUTtv

2012 Trailer Run date details Sponsor

Outdoor Advertising

Item Details CostCBS Outdoor/ Pattinson

Mall Ad #1 Holt Renfrew Centre (Month of May) $750

Mall Ad #2 Gerrard Square (Month of May) $600

Street Ad Beer Store on Church (Month of May) $700

TTC Subway Ads Subway interior 75 units (Month of May) $3 000

CBS Outdoor/ Pattinson Holt Renfrew Centre (Month of May) $750


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2. Online and Interactive

Inside Out Website

YouTube player: Movie trailers, packaged commercials, Picks by staff/celebrities Add Share function on all movie pages, so users can share on Facebook, Twitter, etc. Programmer and Filmmaker blogs/Twitter

eNewsletter

When tickets go on sale, feature a YouTube player in the e-newsletter that will play trailersas well as a Picks section featuring recommendations by staff, volunteers and localcelebrities to build hype around select films

Personal Invites

Create printout (drink ticket). Ask committees, sponsors, town hall and members to sendout invites with printout attached. Personal appeal, no copy to accompany printout.

Two invites: a) Launch Party and b) Opening Night

Online Advertising-Xtra, Now, OMGBLOG, FB, blogTO

Item Details Cost

Xtra

Banner ads

E-blasts

120 x 240 px; May

2x Twitter; 1x FB

Contra

ContraNow

Banner ads? Eblasts? Ad size; Run date Contra

OMGBLOG

Banner 160x200 px

May 10 - 24

Swap

Facebook May 10 -24 Max. $50/day

$0.62 CPC~ $1 000

blogTO

Top banner

Events ad

May 10 - 24

Month of May

Contra

Contra

Social Media

Daily Facebook and Twitter updates after tickets go on sale to end of festival Youth Reporters: create and upload video content to YouTube


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3. Media and Public Relations

Comprehensive media pitch list and story pitches Very granular and targeted, includingstory leaks

Packaged film picks: e.g. Executive Directors Top 10 picks, Programming DirectorsFestival Gems, Films for romantics, Films for aspiring dads/moms, etc.

Designate spokesperson: Inside Out staff, filmmakers, 20th anniversary figures Focus on more meaningful features; less fluff articles; quality Is key Develop press kit

4. Partnerships

Ambassador Program

Mobilize Inside Out staff, volunteers, board members, friends and community partners as agrassroots team to help spread the word via in-person and online distribution

Preferred Network

Window displays and collateral distribution Inside Out signature drink or menu item at all bars and restaurants Recognition in program guide and/or Fest site; spotlight on FB and Twitter

Cross-promotion with other festivals and cultural initiatives:

Hot Docs Feminist Porn Awards

5. Community Outreach Target specific LGBT community groups including university student groups - and ask

them to help distribute our promotion materials

6. Merchandising The Festival is Inside Outs most visible time of the year. We will leverage this increased

exposure and connection with the public with merchandise. Buttons and tote bags will becreated to drive the membership campaign. A gift (tote bag) will be provided with everyminimum donation of $15. Buttons will be given out for any size donation.

7. Internal Communications Regular board, committee, donor and membership updates

8. Budget

Program Guide (design, printing and distribution) - $23 750 Trailer - $2 000 Graphic Design - $7 500 Advertising Expenses - $18 000 Festival Collateral (printing) - $7 000 Volunteer Shirts - $3 500


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Appendix II: 2012 Inside Out Budget

REVENUE

Box Office $103,611

Memberships $71,000

Donations - Individual $70,000Corporate Sponsor $72,750

Award Sponsorship $12,000

Community Sponsors $6,400

Consulate/Embassy Sponsors $0

Total: Sponsorship $91,150

Donations - Corporate $15,000

Advertising $14,735

Special Events $21,500

Ottawa Box Office $18,000

Ottawa Sponsorship $17,500

Ottawa Donations $3,000

Ottawa Grants $5,000

Touring - Ottawa $43,500

Endowment Interest $8,100

Equipment Rental $4,000

Submission Fees $1,459

Miscellaneous $0

Other Revenue $13,559

x Toronto Arts Council $32,000

x Ontario Arts Council $48,400

x Canada Council for the Arts $41,800

x Heritage - Arts Presentation $20,000

x Canada Council - Travel $1,050City of Toronto Lightbox Fund $20,000

x Ontario Investment Fund $10,100

Celebrate Ontario $72,500

x New Government - OTEMPP $14,375

Total: Government Grants $260,225

x LGCA $5,000

x Trillium $55,000

Total: Foundations $60,000

TOTAL REVENUES $764,280


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EXPENSES

FESTIVAL

Director of Programming

Programming Assistant

Misc. Honourariums

Panelist/Artist Speaker Fees

Total: Programming Salaries $64,165

Print Traffic $5,000Guest Relations $4,950

Front of House $6,400

Volunteer Coordinator $1,500

Tech Fees/Staff $8,500

Total: Festival Salaries $26,350

Screening Fees (Intern'l) $23,250

Screening Fees (Canadian) $2,700

Total: Screening Fees $25,950

Awards $10,900

Shipping & Brokerage $12,500

Venue Rental $40,000

Tech & Equipment Rental $3,500Total: Venue & EquipmentRental $43,500

Box Office Expenses $9,250

Comm Rlns/Volunteer Expenses $1,750

Festival Operations $5,500

Total: Festival Operations $7,250

Outreach Programming $0

Tape Dubbing $1,300

Misc. Programming Expenses $3,200

Travel - Programming $10,500

Total: ProgrammingExpenses $15,000Guest Services / ArtistTravel $24,000

Design/Layout $5,000

Printing $16,557

Poster - Guide Dist. $1,116

Total: Program Guide $22,673

Publicist $8,000

Festival Parties $18,000

Festival Trailer $2,248

Graphic Design $9,600

Advertising Expenses $18,000Printing - Festival Promo $7,000

T-Shirts $2,520

Website $13,950Total: Advertising,Promotion & Entertainment $79,318

Youth Project $16,500

Ottawa Festival / Touring $17,000TOTAL FESTIVALEXPENSES $374,356


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ADMINISTRATION

Executive Director

Manager of Operations

Director of Corp Sales

Director of Development

Marketing Coordinator

Festival Assistant

Grant WriterStaff Benefits

Payroll DeductionsTotal: AdministrativeFees/Salaries $266,600

Bookkeeper $5,500

Audit $4,800

Total: Professional Fees $10,300

Telephone $2,750

Internet Access $1,250

Technical Support $750

Total: Telephone & Internet $4,750

Rent $19,000

Courier $2,250

Postage $1,000Total: Distribution (postage& Courier) Costs $3,250Capital Expenditures(Computers) $3,000

Photocopy/Printing - Admin $4,500

Office Supplies $6,500

Travel Office $1,500

Meeting Expenses $1,500

Prof. Dev / Networking $2,500

Fundraising Exp $8,000

Repairs & Maintenance $0

Total: Office & General $24,500

Office Insurance $4,500

Bank Charges/Interest $4,750

VISA Fees $6,500Total: Bank Charges &Interest $11,250

Special Event Expenses $6,000

Scholarship $5,000

Depreciation $1,250

Bad Debt Expense $0

TOTAL ADMINISTRATIONEXPENSES $359,400

TOTAL EXPENSES $733,756

SURPLUS/(DEFICIT) $30,524

Contingency -$7,000

FINAL SURPLUS / (DEFICIT) $23,524

Documents

DiverCity 2013 Case Package