Post on 11-Jan-2016
description
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DSO Marketing Plan
MARK 5340Marketing Strategy Class
Summer 2005
Presenters: Michelle Corley & Scott Trout
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Objectives
To understand why the Dallas Symphony Orchestra is experiencing declining ticket sales
To develop a Marketing Plan that will help the DSO reverse the decline and position itself to achieve its goal of becoming a top-5 orchestra within the next 10 years
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Methodology
Research performed by MSMR & MBA students of UTA, led by Dr. John Bassler
Secondary Research• Industry Analysis – Knight Foundation
• Competitor Analysis
• External Environment Analysis
Primary Research• Internal Environment Analysis
• Prior Research on DSO Customers
• Impromptu Online Survey
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Agenda
SWOT Analysis Target Markets Positioning Marketing Plan
• Product Impromptu
• Distribution• Pricing• Promotion
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Executive Summary
RESEARCH, COMMUNICATE, INNOVATE, EDUCATE, CONTROL(1 of 2)
Establish clear and specific marketing goals for the next few years Create open communication within all departments Conduct research to find out who is, and who could be a DSO patron Collect as much information as possible about the DSO patrons and design
strategies based on that Focus not only on the past buyers but also try to expand the patron base Hire a conductor who is not only musically talented, but also is an innovative
and charismatic leader
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Executive Summary
RESEARCH, COMMUNICATE, INNOVATE, EDUCATE, CONTROL(2 of 2)
Experiment with new programming and monitor patron perceptions closely Seek out and utilize strategic partnerships both corporate as well as
community Educate patrons to understand music and not just enjoy performances Research and monitor patron price sensitivities and thus price packages
and performances accordingly Leverage the website, which is often the first touch-point to the community Initiate consistent, creative, and original promotional campaigns, and
monitor successes and failures
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SWOT AnalysisStrengths
Weaknesses
Opportunities
Threats
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Strengths
Emotive experience upon attendance
Talented musicians and conductors
Patron Service Center
Meyerson Symphony Center
Favorable endowment to budget ratio
Good fiscal responsibility
Core of dedicated patrons
Experienced and passionate staff
Good labor relations
Commitment to the mission statement
New ticketing system
Volunteers
Education Programs
Perceived as “A really good orchestra that plays classical music in a great hall”
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Weaknesses
Declining attendance
Lack of detailed information about patrons
Exclusive focus on past and current customers
Assumption of musically educated patrons
Inadequate measures of marketing effectiveness
Lack of signage and DSO awareness
Small budget
Conservative programming
Marketing leadership in flux
Risks associated with Music Director change
Balancing artistic integrity and marketing goals
Poor communication among marketing sub-units
Soft sales of season subscription packages
Website
Lack of volunteer and patron diversity
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Opportunities
24% of the adult population is interested in classical music, but do not attend regularly
Strategic alliances/corporate sponsorships
New music director
Collaboration with sporting events
Programs to attract Initiators
Technological advances for attracting patrons
High school and college markets
Innovative marketing mix opportunities
Benchmarking to successful orchestras
Proximity to downtown Dallas workforce and residents
Dallas tourism
Growing Hispanic market
Capitalize on wealthy Collin and Denton county residents
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Threats
Competition for consumer leisure time
Competition from other local presenters of classical music
Lack of interest among younger patrons
Dependence on City of Dallas for key customer touch points
Competition for patrons and donors
Parking
Population growth occurring in remote areas
Instability in Dallas political arena
Piracy
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Target Markets
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Suggested Market Segments
Initiators Culturally active, culturally
knowledgeable people who actively scan the media for cultural activities
Trigger of attendance for a large portion of the attendees
Responders People who usually need an external
social stimulus to cause them to engage in cultural activities
Large and potentially powerful constituency for the DSO
†Source: Knight Foundation Study
Initiators Responders
Segment 1
Sophisticated Active Audience
Segment 2
Casually Involved Active
Audience
Segment 3
Sophisticated Low-Freq
Alumni
Segment 4
Interested Single-Ticket Buyers and
Ghosts
Cur
rent
Pot
entia
l
PRIMARY TARGETS SECONDARY TARGETS
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Repositioning
“Premier Cultural Experience Worth Sharing”
WHY?• Grab patron attention by claiming to offer the BEST cultural
experience in the DFW Metroplex• Capitalize on the social aspects of high-level entertainment; offer
what the living room can’t
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Product Conductor & Musicians
Programming
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Traditional• Classical Series
Non-Traditional• Pops• Family • Christmas• Distinguished Artists • Gala• Summer• Nasher Chamber• Parks• Festivals
Classical (Traditional)
53%
Total Non-Traditional
47%
Current Program Mix
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Traditional & Non-Traditional Strategy
Traditional Strategy• Leverage DSO as a source for musical excellence and competitive
advantage
• Do not dilute quality of performances or perceptions by trying to appeal to everyone (i.e. casual clothing)
Non-Traditional Strategy• Re-use aspects of concerts that have been successful• Apply enhancements to all Non-Traditional concerts
Dramatization: Narration, Dance Visual Enhancements: Scenery, Lighting Multimedia: Videos, Laser Lights Education: Informational, Technology
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Non-Traditional Product Mix (cont.)
Suggest addition of two new categories: Contemporary Classics
• New spin on Traditional Classics Visual/sensory enhancements
• Strategy for reaching younger audiences Don’t market to “traditional” target market
• Carve out % of Traditional Classics and replace with this programming
Generation X/Y Pop Culture• Strategy for reaching younger audiences
• Movie Themes, Video Game Themes
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Impromptu
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Impromptu Primary Research
Major Findings: Flexibility is the most frequently cited positive aspect of
Impromptu Cost concerns are the major deterrent to purchase The average number of concerts that respondents
predict they would attend under the Impromptu program is only between 1 and 2 per month
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Impromptu Primary Research
Major Findings: Few have joined or plan to join Impromptu as it is
currently offered Additional membership benefits may increase likelihood
to enroll 90% of respondents perceive the DSO as “a premier
cultural experience worth sharing”
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Impromptu Primary Research
Recommendations: Lower the monthly membership fee to between $27 and $35 (assuming a setup of $100)
Price Sensitivity - Impromptu
0%
20%
40%
60%
80%
100%
120%
$10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80
Monthly Fee
Too Inexp Inexp Exp Too Exp
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Impromptu Primary Research
Recommendations: Offer discounted monthly fees for couples and families Impromptu promotions should stress unlimited access
to a variety of programs Alleviate concerns regarding seat quality Add “Impromptu member only” special events to
membership benefits
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Impromptu Program Changes Changing the enrollment fee to a “handling fee” and
lowering the fee• Clarifies the purpose of the fee and justifies its existence• Reduces the perceived risk of trying the program
Lowering the membership fee and offering a discount for multiple membership purchases• Encourages multiple membership purchase• Increases the value of the program• Lowering monthly fee by $1 could have a significant
psychological impact
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Impromptu Program Changes
Launch a viral email campaign to increase enrollment• Cost effective way to reach potential enrollees• Substantial discount will likely generate stronger interest• Increased appeal for Initiators
Substitute a cancellation fee for an enrollment fee• Not recommended due to the negative psychological impact• Detracts from Impromptu’s flexibility, its key benefit• Actively highlights the risk associated with trial
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Pricing
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Price Adaptation
Use Tessitura to find current occupancy & seat preferences• In full occupancy, 85% of ticket revenue Orchestra &
Orchestra terrace, Loge boxes, Dress circle and Grand Tier
• Adjust prices between seating levels based on demand
Increase revenue through:• Price adjustments• Increasing perceived value
Psychological pricing Product innovation Marketing messages Brand enhancements
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Price Adaptation - Subscribers
Flexible, smaller packages Student packages (build long-term audience) Explicitly state and offer benefits
• Discounts for subscription renewals, gift vouchers• Refer-a-Friend program• Group discounts for 6 or more• Ticket insurance• Subscriber-only concerts• ‘Thank-you’ discounts to loyal patrons
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Price Adaptation – Single Tickets
‘Take a Friend to the Orchestra’ Frequent-buyer discounts
• Discounts on a flexible subscription package• 50% discount on a future concert• Seat upgrades
Limited ‘rush-hour’ discounts Student discounts, discounts for children Offers similar to the “2 for the Badge” program Price bundling with other arts organizations
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Distribution
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Improving Inputs of the Supply Chain
Musicians and the Musician Union Maintain positive relationships with competitive wages Request the best musicians Bidirectional communications with the union and DSO
• Programming• Formats• Finding a new conductor
Open to contemporary formats Open communication
– DSO– Musicians– Patrons
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Improving Outputs of the Supply Chain
The Patrons Feedback and satisfaction Traditional methods
• Customer response survey• Comment section on season tickets
Newer methods• Online review• Quick survey• Patron and employee interaction
– Operations– Bronstein
Patron Service Center
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Improving Outputs of the Supply Chain
CD Producer and Distributor Hyperion Records
• Financial trouble
• Poor distribution
Harmonia Mundi and Warner Classics Stronger financial positions etailer partnerships
Amazon.com
Online statistics (outputs)
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Long-term Potential Distribution Strategies
Public television – KERA 13 was pursued in the past Own record label; e.g., SFS Media (San Francisco
Symphony) Multi-media project; e.g., Keeping Score: MTT on Music
San Francisco Symphony and Michael Tilson Thomas Tchaikovsky’s Symphony No. 4
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Promotion
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Promotion
Objectives: Inform Persuade Remind Reassure Differentiate
All components of promotion should be woven around the positioning of the DSO: “Premier Cultural Experience Worth
Sharing”- and communicate this message to its patrons through different media
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Sales Promotion
Use incentives to encourage potential and existing customers to try and, ultimately, purchase the product or service
Current Sales Promotion• Discounts • Vouchers • Group sales• Create your own package
Additional Recommendation• Continue current sales promotion but advertise these programs
in each promotion message• Price-Pack Deal
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Sales Promotion
Discounts• Promote in nearby universities and educational institutions• In partnership with student organizations, such as Mav Express
at UTA• Employees of the donor and sponsoring companies
Vouchers• Promote as Gift Certificates for individual sales
During holiday season use E-mails, print and direct mail • Promote in schools, corporate houses, community centers,
senior communities, travel & tour operators etc.• The DSO website
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Sales Promotion
Group Sales:• Better co-ordination between marketing and group sales• Clear and consistent definition of a group• Group sales promotion
The DSO website Direct mailing, Brochures Mention in all advertising messages B-B marketing to different organizations
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Sales Promotion
Create Your Own Package• Excellent program: A patron can choose any 4 concerts of their
choice and get one concert free. • Don’t restrict the choice--give the option of any programming,
classical, pops, or other Price-Pack
• Apart from group sales whoever buys more than 6 tickets (any concerts) offer 10% discount
Refer a friend program
Take a friend with you
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Personal Selling
Patron Service Center• Doing excellent job• Need to utilize Tessitura efficiently, utilize the information about
preferences and past behaviors• Ask where buyers heard about the DSO or the event--to study
the effectiveness of different media
Direct Mailing• Every visitor gets promotional material from the DSO• Do not focus on past buyers only
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Advertising Utilize the emotional appeal to position the DSO as a “Premier cultural
experience worth sharing”
In addition to current sources use different medium and sources based on different type of programming
Radio: Talk radio – WBAP, KRLD, Jack FM, KMKI – Radio Disney
Print: Wall Street Journal (Inserts), Star Telegram (Inserts), Dallas Business Journal, D Magazine, AAA Magazine
Online Advertising: The DSO web site, Partnering newspaper and radio websites, Sponsoring company website, Expedia, Orbitz, GuideLive.com, Dallas tourism website
Outdoor Advertising: Use Banners in and around Meyerson Symphony Center, In association with the DMA, Nasher Sculpture Center and other art organizations
Television: Network Television – Leverage partnership with KXAS
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Public Relations
Press Releases• Cover the DSO events & activities in press releases
The Meyerson• Mention the DSO wherever Meyerson Symphony Center is
featured• Clear instructions and signs in the Meyerson• Make visit to the Meyerson an experience
Arrival of the new conductor• Create a PR Event
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Public Relations
Online collaboration • Partner with ORBIT
• Partner with the Dallas Convention and Visitors Bureau Educational programs and community involvement
• Need more exposure and prominent promotional support• Scholarship program ($1000/year) for outstanding musical talent• Promote their talent search program as “Dallas Idol”• Promote local symphonic talent of local programs by having them
perform as an opening act
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The DSO Web site
Add the positioning, mission & vision statements
One web site for all the information (include site map & FAQs)
Bilingual Web site – English, Spanish
Audio and video clips, downloadable MP3s
Educate the customer about the product, the organization and its history
Collect click thru data
DSO in news
Create the DSO online community, weblog & discussion forums
Embrace new technology
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Promotional Partnerships
Collaborative partnership programs with other art organizations Partnership with Starbucks for advertising the music Partnership with local restaurants More creative partnerships:
• With hotel chains (Hilton/Radisson)- A Classical Evening• Partnership with Gaylord Texan Resort and Convention Center
Initiator Appreciation• Upgrade the ticket• Backstage pass• Lunch with musicians • A small ensemble before the concert
Musicians and Conductor communicating with the patrons
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Subscription Packages
Emphasize ‘best seats at the best possible rate’ as one of the subscriber incentives
Promotion medium• Patron service center
• Personalized emails to the targeted segment
• Vivaldi patron services
• WRR 101.0 FM
• Current print advertising
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Thank You!