ALTERNATIVE DISPUTE RESOLUTION COMMITTEE

NATIONAL LAW UNIVERSITY, JODHPUR

SAMPLE MEDIATION PLAN

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STRATEGIC STRONG POINTS
Icon Entertainment Pty Ltd [“Icon Entertainment”]

• Strong Affiliation: Icon Entertainment’s is the subsidiary of Holding Company Icon Ltd.
[“Icon”], which has an established real-estate practice in major Australian cities.

• Pool of Assets: The Icon Group owns and operated many companies and has a large pool
of assets, including Shell. It cements reputation and can be used as collateral for loans,
etc.

• Organisational Experience: Icon Entertainment has successfully run many entertainment

events in the past, and thus, has the necessary experience required to make the joint
venture a success. Blue Lion Pty Ltd [“Blue Lion”]

• Dominant Position: Blue Lion is a market leader in energy drinks in Australia. It has also
acquired a global reputation since it sold over 6 billion cans in 2016, and has seen a year
on year increase.

• Strong Brand Image & Extensive Marketing- Blue Lion has a “young, cool image that
resonates with investors”, which it has developed through its marketing endeavours.

• Product Diversification: Blue Lion undertook product diversification by launching soft

drinks and also owns the Blue Lion TV, a streaming service which may be monetised for
profits.
STRATEGIC WEAK POINTS
Icon Entertainment Pty Ltd

• Capital Requirements: Icon may be required to invest more money in marketing activities
in order promote the Shell as a leading music and entertainment venue.

• Shell’s Relative Position in the Market: Since Shell is a new entrant, it has a weak
competitive position compared to other large scale music venues in Melbourne.
Blue Lion Pty Ltd

• Perceived as an Energy Drink Company: Blue Lion is majorly perceived as an energy

drink company. Thus, its experience in entertainment shows is limited.

• Lack of Popularity for Other Products: Blue Lion has released a new soft drink range,
which has not proven itself in the market.

• Capital Commitment: It is reluctant in committing to the 50:50 stake that has been asked.
GOALS & OBJECTIVES
Icon Entertainment Pty Ltd

• To invest in new properties across the city, since the property prices are relatively flat.
• To reduce costs and free up capital to generate funds for the acquisition of new
properties.
• To enter into a joint venture agreement for investment into and management of the Shell.
• To use the publicity of the joint venture to increase the interest and popularity of the
Shell.

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Blue Lion Pty Ltd

• To use the association with Icon to cement its position in the Energy Drinks market.
• To improve sales of its new soft drinks and to create a position in the soft drinks market.
• To diversify its business so as to positively impact brand perception.
NEEDS & INTERESTS
Icon Entertainment Pty Ltd

• Raising Capital: To discuss the financial contributions of both Icon and Blue Lion to the
joint venture, a 50:50 partnership on the Shell project, as well as capital injections in the
future.

• Public Perception: To change the public perception of the Shell into a leading music and
entertainment venue.

• Development of the Shell: In order to compete in the market, there is a need to develop
the venue as well as the adjacent property to attract the attention of more people.
Blue Lion Pty Ltd

• Degree of Control: Blue Lion hopes to have substantial control over the joint venture in
the form of type of events hosted, yearly goals, streaming events on Blue Lion TV and
naming rights.
• Capital Contribution: To contribute less than 50% to the joint venture, however, retain
control over major decisions such as events, plot development and major supplier
contacts.

• Maintenance of Brand Image: In order to maintain its brand image, it needs to have
complete discretion and veto rights over the events that are undertaken.

BEST ALTERNATIVE TO NEGOTIATED AGREEMENT (BATNA)

Icon Entertainment Pty Ltd
Should negotiations fail, Icon Entertainment can agree to invest a larger proportion of capital
into the venture, in return for a percentage profit from the sale of Blue Lion products during
events.

Blue Lion Pty Ltd

Should negotiations fail, Blue Lion can attempt to extend its sponsorship agreements to
include promotion of Shell/the Shell’s events on Blue Lion TV, to retain control, while
contributing a smaller percentage to the total capital expenditure of the project.

WORST ALTERNATIVE TO NEGOTIATED AGREEMENT (WATNA)

Icon Entertainment Pty Ltd
Should negotiations fail, Icon Group can look at short-term investments in properties in
Melbourne and use the profits from such properties to independently develop Shell in the
future.

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Blue Lion Pty Ltd.
Blue Lion will have to acquire an entertainment venue on its own without assistance from an
experienced entertainment partner. This will lead to it losing out on the iconic venue — Shell.

NEGOTIATION STRATEGY
Icon Entertainment Pty Ltd:
Icon Entertainment will start by expressing their appreciation for Blue Lion's position and
expertise in the global and Australian industry for caffeinated beverages. Icon Entertainment
will also explain how cooperation may promote goodwill, alignment, and economic parity as
they rise to new positions in their own niche industries. Firstly, Icon Entertainment will pitch
the idea of a joint venture on an equal basis to run the Shell. Herein, they will emphasize on
the significant benefits this offers to Blue Lion, who are wanting to enter a market that
requires the assets and experience Icon possesses. Secondly, it will seek to leverage its
uniquely structured venue and experience with live music venues to obtain the necessary
initial capital contribution, future funding and marketing without having to rely on Icon Ltd
for any/no contributions. Lastly, affording flexibility in other arenas, they will convey that
other considerations, like exclusive supplier agreements, the type of events, plans for the side
plot, and naming rights will remain negotiable, so as long as there is agreement on the
finances.

Blue Lion Pty Ltd:

Blue Lion will start by stating their want to collaborate with Icon on the ownership and
operation of the legendary Shell venue. They will place further emphasis on the benefits that
joining forces in such a partnership would provide to both parties in terms of market position
and consumer base. Firstly, Blue Lion shall emphasize of their position in the market and the
their image as a young, cool brand that resonates with consumers and helps create a strong
affiliation with its products. Leading with this, they will express their desire for expansion
and entering into a joint venture to manage and run a music venue. Secondly, they shall share
that they are not looking to own the Shell on a 50-50 basis, but a higher threshold, and want
lower contributions, but with significant control over aspects such as naming rights, the type
of events held, streaming of their events via Blue Lion TV and plans for the side plot.
Thirdly, they shall emphasise that their contribution to the venture is therefore, not just
capital, but intangibles like their modern and cool brand image, their young consumer
demographic, their experience in running events and their ability to generate buzz for the
same.
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