5.

Market Analysis Summary

“Grudge Reality” will direct its efforts to the production of family-oriented television
programming and live events, procuring sponsorships, television advertising, and
merchandising deals all designed to firmly carve our niche as a competitive player in
the industry, both domestically and worldwide.

“Grudge Reality” management believes its decisions to use established name talent in
a family- oriented format will ensure maximum mass appeal, maximum ratings, and
maximum profits, all designed to firmly entrench it into a solid position within the
industry.

Reality Shows are the hottest entertainment available on television and at live events
throughout the country. TV Guide estimates that 35 million people watch reality
shows from the starting from MTV Roadies to Indian Idol to Big Brother and many
more.

With the proper financial backing to sustain the production and distribution of
“Grudge Reality” television programming, it is a well-founded conclusion, based on
our market research, that a competitive market position within the industry is a
realistic and achievable goal for us.

5.1 Market Segmentation

Reality Shows are a true family entertainment. The following chart and table contain
interesting
facts about Reality Show fans, based on Research:

Market nalysis

2004 2005 2006 2007 2008

Potential Customers Growth
Family 20 6880 8256 9907 11888 14266
Elderly 25 9820 12275 15343 19179 23974
Youth 30 13000 16900 21970 28561 37129
Children 23 5,460 6715 8260 10160 12497
Total 25.7 35,160 44146 55481 69789 87867

5.2 Target Market Segment Strategy

As previously mentioned, the “Grudge Realities” plans to approach the marketplace

primarily through family-oriented programming and live events riding the wave of the
popularity of reality shows today. The key target is the nationwide and international
distribution of our weekly, one- hour television program.

The increase in the popularity of reality shows continues despite the fact that the top
current organizations have little or no regard for family values. Thus, it is the “Grudge
Realities” belief that they are minimizing their potential success by comparison with
the “Grudge Realities” plan to appeal directly to family values, family-oriented
programming, and live events and, thus, a greater majority of the population.
It is only logical that if we succeed in our target market strategy our product and
services will be even more widely accepted and received than that of our competitors
over a period of time. The exact amount of time involved is directly related to the
extent of our television exposure domestically and internationally. We anticipate a
maximum of 3 years to find the “Grudge Realities” well established with the target
market and firmly entrenched as the lead reality show organization in the industry.

5.3 Service Business Analysis

As previously stated, the popularity of reality shows is at an all-time high with the top
two organizations in the industry currently dominating the weekly cable television
ratings and grossing almost $1 billion between them in annual revenues. This trend is
likely to sustain itself due to the fact that 35 million people watch it every week on
television.

We, the founder of the “Grudge Realities” has a clear and realistic vision of what it
will take to achieve our goals and ambitions to become the lead reality show
organization in the world. We have the experience, expertise, and the contacts to
make it reality.

5.4 Competition and Strategies

The reality show market at present is full with many players. As mentioned before
there are players like MTVRoadies, Indian Idol etc. which compete each other to win
a major portion of the market share. So to compete with the established players it is
essential for us to select the right marketing mix to excel in this competition.

As per the promotion of the reality shows the research done shows that a majority of
the existing players advertise either on Television or does it in some road shows. So
as per our show we will not only cover the trends followed by the existing players but
also extensive newspaper coverage to penetrate the general masses. This will ensure
that we get more TRPs as we will get a greater number of viewers. Thus our
promotion plans will ensure that we get a very competitive edge in the field of reality
shows.

Similarly the distribution system is an important factor that will give us an edge in
this field. Our “Grudge Realities” are seeking variety and new experiences.
Distribution is thus clearly important, but so is atmosphere and distinctiveness. Our
marketing challenge is thus to stand out from our competitors, not only as the "new"
reality show, but as one that offers consistently high quality entertainment and a
unique show pattern. Maintaining our edge will depend partly on marketing ourselves
to the global viewers along with the national viewers.