DSO Final Presentation_v10a

transcript

DSO Marketing Plan

MARK 5340Marketing Strategy Class

Summer 2005

Presenters: Michelle Corley & Scott Trout

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

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

Agenda

SWOT Analysis Target Markets Positioning Marketing Plan

• Product Impromptu

• Distribution• Pricing• Promotion

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

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

SWOT AnalysisStrengths

Weaknesses

Opportunities

Threats

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”

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

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

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

Target Markets

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

PRIMARY TARGETS SECONDARY TARGETS

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

Product Conductor & Musicians

Programming

Traditional• Classical Series

Non-Traditional• Pops• Family • Christmas• Distinguished Artists • Gala• Summer• Nasher Chamber• Parks• Festivals

Classical (Traditional)

Total Non-Traditional

Current Program Mix

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

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

Impromptu

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

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”

Recommendations: Lower the monthly membership fee to between $27 and $35 (assuming a setup of $100)

Price Sensitivity - Impromptu

$10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70 $75 $80

Monthly Fee

Too Inexp Inexp Exp Too Exp

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

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

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

Pricing

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

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

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

Distribution

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

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

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)

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

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

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

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

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

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

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

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

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

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

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

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

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

Thank You!

DSO Final Presentation_v10a

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