K E N T U C K Y C E N T E R F O R T H E P E R F O R M I N G A R T S

MARKETING RESEARCH ANALYSIS

Sarah Grindle & Miranda Martin

AAD 310

G r i n d l e / M a r t i n 2

T a b l e o f C o n t e n t s

M A R K E T I N G R E S E A R C H A N A L Y S I S

O R G A N I Z A T I O N P R O F I L E A N D O V E R V I E W 3 - 7

C O M M U N I T Y P R O F I L E 8 - 9

C O M P E T A T I V E A N A L Y S I S 1 0 - 1 2

S . W . O . T . A N A L Y S I S 1 3 - 1 4

M A R K E T I T I N G I N T E R V I E W 1 5 - 1 6

R E S O U R C E S 1 7

G r i n d l e / M a r t i n 3

ORGANIZATION PROFILE AND OVERVIEW

“MISSION STATEMENT”:

“Provide artistically diverse performances of the highest quality. The Center serves Kentucky through education and initiatives, which expand and diversify audiences while enhancing their understanding, appreciation, and support for the arts. The Center strives to challenge, stimulate, and entertain while operating in a fiscally responsible manner and acting as an economic and cultural catalyst for the commonwealth.”

“A HISTORY SNAPSHOT”:

Founded in 1980, the Kentucky Center for the Performing Arts has been host to many impressive events and exhibitions from around the nation. In 1984 it was host to the Presidential Debates for Ronald Reagan and Walter Mondale, as well as in 2005 President George W. Bush held the Town Hall Forum on Social Security Reform from inside Whitney Hall.

It has been the recipient of the VSA/MetLife Foundation award of Excellence in Art for two consecutive years in 2004 and 2005. In 2007 they received the John F. Kennedy Center for the Performing Arts Excellence in Accessibility Leadership Award.

It is home to many remarkable and well-established programs such as the Governor’s School for the Arts, founded in 1986 for students with interests in creative writing, dance, visual arts, music, drama, and vocal performance. In 1990 the ArtsReach program was created to promote art in the surrounding communities of Louisville.

The Center is comprised of four ideal concert and performance halls. The Boyd Martin Experimental Theater, also dubbed the “ MeX” theater, was created in 1987 for a more intimate experience. In 2000, with support of the federal government, a 4.5 billion renovation was approved, which lead to the extensive renovation of the W.L. Lyons Brown Theater in 2008, known for being the home of the Louisville Opera. A year later in 2009, thanks to the Kentucky Legislature, The Kentucky Center embarked on an even more elaborate, $8.9 million renovation project. This addressed the new state-of-the-art floor installed on the Whitney Hall stage, making it safer and more responsive for dancers while still sturdy and reliable for Broadway productions. A new lighting and dimming systems were also installed into Whitney Hall, Bomhard Theatre and the “MeX”.

The Kentucky Center for the Preforming Arts is an idol and trophy for Louisville, the great State of Kentucky, and continues to “challenge, stimulate, and entertain” the loyal arts patrons.

G r i n d l e / M a r t i n 4

Organizational Structure:

1. Board, Administrative Staff, Artistic Leadershipa. Board of Directors (19)

Madeline M. Abramson, Chair b. Directors Emeriti (6)c. Foundation Board (22)

R.K. Guillaume, Chaird. Executive Staff

Kim Baker, President Heather Weston Bell, Senor V.P Education and Community Arts Joe Massey, Senior V.P. Facility Service Christopher L. Roberts, C.F.O. & Senior V.P. Business Affairs Tracy Simonsen, Senior V.P. Development Michelle Veit, Senior V.P., Human Resources Abby Shue V.P.

e. Volunteers

2. Marketing Teama. Director of Marketing and Communications- Rob Thomas b. Senior Marketing Manager Christianc. Graphic Designer – Robbyn McClain d. Graphic Designer and Marketing Specialist- Laura S.

Educational Programming:

1. Education Initiativesa. Partners with schools, teachers, community centers, colleges and universities, health care

facilities, and artists throughout the Commonwealth, to provide on-site immersive arts experiences and resources to audiences of all ages and backgrounds.

2. Programsa. Students/Educators:

Arts Reach Governors School for the Arts Curtains Up! Stage One

b. Families & Community Arts in Healing Curtains Up! Community Events Kentucky Show

G r i n d l e / M a r t i n 5

Events:

1. Season Productions or Concertsa. 2014-2015 Season

Louisville Orchestra - Cirque de la Symphony Louisville Orchestra- “Gershwin & Copland” Louisville Orchestra (Pop’s Series)- Jason Alexander Louisville Ballet-“Giselle” KY Opera- “Fidelio”

b. Concertsi. Pentatonix

ii. Jazz at Lincoln Center Orchestra with Wynton Marsalis

2. Resident Companiesa. PNC Broadway Across Americab. Kentucky Operac. Louisville balletd. Louisville Orchestrae. Stage One Family Theater

3. Exhibitionsa. Open micb. Idea Festival 2014c. Taste of innovations and Bourbon

4. Permanent Collectionsa. Online Galleryb. Diverse collection on in house 20th century works by:

i. Alexander Calderii. John Chamberlain

iii. Jean Dubuffetiv. Louise Nevelsonv. Joan Miro

vi. Malcolm Morleyvii. Tony Smith

G r i n d l e / M a r t i n 6

Financial Situation (2012-2013 Fiscal year):

(The data gathered below can be found at guidestar.org)

1. Revenue/Expensesa. $366,586.00b. $924,841.00

2. Assetsa. Total = $22,989,424.00b. Net assets = $18, 416,314.00

3. Grantsa. $735,966.00b. Contributions and grants = $37, 099.00c. Total = $22,989,424.00d. Net assets = $18, 416,314.00

*Above table is the Financial Trend Analysis from the 990 forms filed by the Kentucky Center for the performing Arts for the years 2008-2011, and then shows the percentage change from these years to better explain the different fluctuations through out these four years. (2012 was not available)

Box Office:

1. Membership(s)/Subscription(s)a. Kentucky Center Memberb. Memberships for certain resident organizations

G r i n d l e / M a r t i n 7

2. Performance Hallsa. Whitney Hall (2, 377 seats)b. Bomhard Theater (619 seats)c. Brown Theater (1,400 seats)d. “MeX” Theater Black Box (139 seats)

3. Single Ticketsa. Purchase by Phone/In Person/Onlineb. Monday-Saturday 10am-6pm Sunday 12pm-5pmc. Student Rush: Tickets sold 2 hours prior for half off and always 10 Louisville Orchestra

Membersd. Ticket Sales are Finale. No Refunds or Exchanges

Audience:

1. I. Patron Demographics: The Greater Community and Beyond!

Marketing Strategies and Techniques (Promotion):

1. Public Relationa. Kentuckycenter.org

2. Social Mediaa. Facebookb. Twitterc. YouTube

SUMMARY:

The Arts community in Louisville has vastly expanded from artistic alliances and collaborations with the Kentucky Center for the Performing Arts. Those within the community have tremendous praise for what has been accomplished recently in the arts. One such reviewer exclaimed

“ The arts are one of the many ways that makes this city stand out and edges it past some of the bigger cities I've visited. The Kentucky Center is definitely on the top of the list of incredible venues in Louisville.” –Brittany H. (Yelp reviewer)

The easily accessed list of shows and performances include many different genres to appease various audiences. As a patron of the arts you have the option of seeing a ballet, Broadway in Louisville, the Kentucky Opera or a Louisville pops concert all within a month. This venue strives to reach its community in creative ways. It will showcase the works of world-renowned artists like Alexander Calder, John Chamberlain, Jean Dubuffet, Louise Nevelson, Joan Miro, Malcolm Morley, and Tony

G r i n d l e / M a r t i n 8

Smith, along with local artists. With a combination of creative performers and performances, the Kentucky Center is putting Louisville as a major displayer of the Arts.

COMMUNITY PROFILE

1. Overview

“Louisville has been described as the gateway to the north... and to the south; an entry to the west...or in the middle of it all. We are within an eclectic hub of 26 surrounding counties in Kentucky including Indiana.” “Louisvillians have access to community amenities that reach beyond the city line. Whether it’s by road or by runway, Louisville's transportation system brings out-of-town attractions within reach.”

Louisville, Kentucky is home to various arts, which is celebrated by the colorful Kentucky Center for the Performing Arts, a center with a mission to challenge, stimulate and entertain the greater community and beyond. The center provides artistically diverse performances of the highest quality, and does not stop enhancing, and exploring new and creative ideas.

2.    Geography

Based in the heart of downtown the Kentucky Center for the Performing Arts is surrounded Louisville’s infamous Galt house, Louisville Bats Baseball Stadium, Fourth Street Live and is close to the recently unveiled walking bridge to Indiana. Near multiple restaurants reflecting Louisville’s historical background and a short distance from many local communities, the Center is part of the downtown charm. With the multi-cultural establishments surrounding The Performing Arts Center, a nice family outing or a quite date night is in the foreseeable future as Louisville continues to grow.

3. Population/Populations Trends

G r i n d l e / M a r t i n 9

The estimated population in the Louisville/ Jefferson County area is 609,893 out of the approximately 4.5 million people in all of Kentucky. This population number has been on an upward trend for the past 5 years. Along with this trend, the arts center has compensated by expanding their venue to accommodate the larger populace. The most recent renovation was in 2009 when the Kentucky Legislature funded an 8.9 million dollar project. Yet in 2000 the Kentucky Center put 4.5 million dollars in renovation towards the aesthetic appeal that stands today.

4. Economy

The downtown area has been built up to support a massive community and to give back to Kentucky’s biggest city and arguably, the largest supporter of the arts having the advantage of the Kentucky Center. According to the Metro Chamber of Commerce for the Louisville area, “Amid growing optimism, Louisville’s economic fundamentals are moving in a positive direction. Louisville’s housing sector is seen an increase as well as the job market since the 2011 recession.” The Average household income is $66,487.00, which leaves the potential for a larger sum to be used in exploring the many artistic fields provided by the Center.

5. Community Issues: Being close to many hospitals and extreme construction creates many barriers for travel, downtown Louisville suffers from noise and air pollution at this current time. Lower socio-economic neighborhoods nearby with higher crime rates also create safety concerns for the frequent arts patrons. Although there may be issues the metro police department does well to make sure the downtown area is a constant safe place for the arts.

6. Summary

The Kentucky Center for the Preforming arts shines through as a bright beacon of wonder and hope. This creates optimism of a brighter tomorrow for the local arts community, and is a representation of the arts within Kentucky. Art is unbounded by every day problems, the Center provides artistic entertainment for all. Louisville’s Kentucky Center for the Performing Arts is a leader in today’s drive for vivid, strong, and passionate art.

G r i n d l e / M a r t i n 1 0

COMPETITAVE ANALYSIS

As one of the leading arts venues in Louisville, the Kentucky Center for the Performing Arts creates opportunities and challenges audiences with captivating concerts and performances. There is always a concern over ticket sales, for any arts organization, as it competes for its audience members. The Center is no exception. Louisville is a large and fast growing city and is full of entertainment venues, which can prove to be difficult when trying to continually captivate an audience and maintain a high attendance measure at the Center.

There are three categories of competition to think about when analyzing marketing information for a place like the Kentucky Center for the Performing Arts; Enterprise Competition, regarding the places that are selling or providing a similar product to your organizations; Form, observing other organizations beyond the main scope provided by your organization; and the Non-Arts Competition, everything else that is considered entertainment. For the Kentucky Center those that follow prove to be the main obstacles in contest.

Enterprise Competition:

1. Louisville Palace Theater A historic landmark in downtown Louisville that was opened to the public eye in 1928. The

theatre provides live entertainment, movies, musicals, and shows.

G r i n d l e / M a r t i n 1 1

Tickets are available online by calling 1-800-745-3000 or at the ticket office located at 625 Fourth St. VIP Membership available with specialty VIP seating. Subscription based ticketing not available because of vast variety of performances. Tickets are based solely on per performance.

All performances are at the main stage of the Palace Theater located at 625 S 4th St, Louisville, KY 40202.

2. River Front, Indiana

Originally a Cincinnati floating restaurant brought to the Southern Indiana bank to provide an eclectic entertainment space in the summer and as weather permits. With the walking bridge now available from Kentucky to Indiana and vice versa audiences are drawn from other entertainment sectors in the downtown area

“RiverStage” is a floating performance venue anchored along the majestic banks of the Ohio River in downtown Jeffersonville, Indiana.

The summer series concert events are all FREE. Which is why this outdoor festive venue poses as a competitor towards other arts entertainment spaces.

Moored at the foot of the Terraced Lawn on Jeffersonville’s bank of the Ohio River, “RiverStage” provides a unique atmosphere – including breathtaking views of the river and of Louisville’s skyline.

The community is this venues patrons, those who are looking for a fun free concert series close to home and friends.

Form Competition:

1. Speed Art Museum Originally known as the J. B Speed Memorial Museum, Hattie Speed founded it in 1925 for her

husband. It is the oldest and largest art museum in Louisville. The museum is supported entirely by donations, endowments, grants, ticket sales, and

memberships. The focus of the collection is Western art, from antiquity to the present day. Holdings of paintings from the Netherlands, French and Italian works, and contemporary art are particularly strong, with sculpture prominent throughout.

Family and Art enthusiast friendly location Location is currently under renovation

2. Louisville Slugger Museum and Factory

A family owned company since 1884, the Museum is a main attraction for Louisville. The Location is well marked by the world’s biggest baseball bat that is seen leaning against the side of the building, on W. Main Street downtown.

Home of the official bat of the Major League Baseball- the Louisville Slugger. Over three million people have enjoyed the museum and factory tour experience and enriching atmosphere.

Admissions are $12 and under, depending on age. Hours are all week long varying on Sundays. The target market is every one of all age and size!

Non-Art Competition:

G r i n d l e / M a r t i n 1 2

1. KFC Yum! Center A multipurpose arena, the famed “Yum!” center is a colossal gem to the entertainment

community of Louisville and beyond. The center is able to bring in high profile events such as top recording artist Elton John, Carrie Underwood, Justin Bieber, The Eagles, Lady Gaga, KISS, Taylor Swift, Jimmy Buffett and many more.

The Center is able to hold a capacity of over 20, 000, it quickly rises above the town as a main focal point of entertainment

Organization Collaborations

1. Side-by-side with Louisville Symphony Orchestra and Louisville Youth Orchestra

This long running tradition combines the cities professional orchestra and the sensational Youth Orchestra. This event places students side-by-side to these professional orchestra members and teaches students what it might be like in their future. Performed on one of the biggest stages in Louisville students are partnered to learn and experience music on a whole new level occasionally even among their own mentor. This long-standing program going on for nearly a decade has enriched young musicians lives and provided a unique and exciting performance for the Louisville community to see.

The Kentucky Center may have its competitors in this uniquely rich community but provides services and an artistic experience that is almost unparalleled. The Center strives to reach its community by enhancing both students and professionals’ lives and creating an artistic experience enriched for us all.

G r i n d l e / M a r t i n 1 3

S.W.O.T. ANALYSIS

1. Strengths:

a. Venue/Location

The Kentucky Center for the Preforming Arts is located in downtown Louisville, Kentucky just along the river. The venue is a very artistic design inside and out. It welcomes you with big windows lining the entrance and along the back of the lobby in the direction of the river. With it being down town it is close proximity to many dining options.

b. Scope of Product

The Kentucky Center for the Performing Arts is a venue that presents art from ballet to orchestral music, plays and operas, and brings it all under one roof, for your entertainment purposes.

c. Staff/Mission

The Staff at the Center works very diligently to bring you new and exciting works and performances, and they do a fantastic job at it. This has to be one of the most hard working and dedicated groups of people you might encounter. They bring all of their creative genius to work with them everyday and don’t stop until the mission is fulfilled.

2. Weaknesses:a. Venue/location

Being located downtown is an advantage as well as a disadvantage. Parking can be a problem for art enthusiasts who have come out to see a show for an evening. Along with parking there is always construction somewhere that will create a barrier between the Center and you. Inside the Center seating is limited in the lobby area, which can present problems especially for the older generations that attend events. Everything is easy to deal with just so long as you prepare ahead of time, luckily there is valet parking.

b. Advertising

G r i n d l e / M a r t i n 1 4

When you are working for an Arts Center one of the biggest weaknesses is the fact that there is so much to do and so much to see that Advertising to the public can become a challenge. The center offers four main events; ballet, music/vocal, theatre, and opera, along with other special events. This is such a wide variety to choose out of when thinking about what to do about marketing.

c. Seating

Seating in the Lobby of the Center has been a controversy only because too much is clutter and too little is not courteous to your guests. You want to have a feel of balance and right now it is unbalanced in the way that there are too few seats available. Since the location can be a problem, people like to arrive early so as to kill time sitting and conversing among your party is encouraged.

3. Opportunities:a. Community (i.e. schools, surrounding businesses)

The Kentucky Center is in the middle of downtown Louisville that means it is a resource for school outreach and advertisement for other businesses. The center helps surrounding restaurants with business and in return they advertise about upcoming events. This all goes toward growing a better community and as well as helps with the economy of the city.

b. Funding

When the community helps out then funding becomes a huge opportunity.

c. Growing Population

The constant rise in population creates new business for the Center, along with more funding opportunities.

4. Threats:a. Location

Louisville is big city, and like all big cities there is always a lot of entertainment opportunities. A Saturday night in downtown Louisville can be crowed and loud, traffic everywhere and parking is impossible at times, which is a down side to the location.

b. Competition

With a growing population and economy this puts pressure on the Center in the form of competition. The Yum center, and the various sporting events that take place near the Center is all competition, and for Arts Administrators it ads to the need for creative ideas to try and capture the audience.

G r i n d l e / M a r t i n 1 5

c. Community (i.e. growing population, funding)

A Growing community is just one less tick that can be sold because of the capacity that is allowed in the various concert hall the Center houses. Funding can also be tricky thing in the light of trying not to use from the same pool tice. If you constantly receive funding from the same source the money will eventually run out or stop that is where it presents an issue.

INTERVIEW WITH MARKETING DIRECTOR

Interview with, Rob Thomas, Marketing Director of the Kentucky Center for the Performing Arts Conducted by Sarah Grindle and Miranda Martina via E-Mail October 6th, 2014

Q: What is your allocated budget for a fiscal year? What is the most costly marketing project?

Q: How do you incorporate your mission statement when marketing to your audience?

Q: What difficulties do you face in marketing for a Performing Arts Center?

Q: What are some the important features in your community and how do you use them to your advantage?

Q: How do you contend with the growing competition around you?

G r i n d l e / M a r t i n 1 6

R E S O U R C E S

"The Kentucky Center for the Performing Arts." The Kentucky Center: OFFICIAL Site for The Kentucky Center. Web. 1 Oct. 2014.

"KFC Yum! Center :: Home." KFC Yum! Center :: Home. Web. 1 Oct. 2014.

"Louisville Metro Government Official Website - Louisville, Kentucky (USA) - Www.louisvilleky.gov - LouisvilleKy.gov." Louisville Metro Government Official Website - Louisville, Kentucky (USA) - Www.louisvilleky.gov - LouisvilleKy.gov. Web. 1 Oct. 2014.

Kotler, Neil G., and Philip Kotler. Museum Marketing and Strategy: Designing Missions, Building Audiences, Generating Revenue and Resources. 2nd ed. San Francisco: Jossey-Bass, 2008. 450-454. Print. "City of Jeffersonville, IN Riverstage." RiverStage Outdoor Entertainment Venue. Web. 7 Oct. 2014.

"The Louisville Palace Theater." The Louisville Palace Theater. Web. 7 Oct. 2014.

"LSMF Opens "A Century of Supporting the Troops"" Louisville Slugger Museum. Web. 7 Oct. 2014.

"SPEED MUSEUM." SPEED MUSEUM. Web. 7 Oct. 2014

Interview with, Rob Thomas, Marketing Director of the Kentucky Center for the Performing Arts Conducted by Sarah Grindle and Miranda Martina via E-Mail October 6th, 2014

http://www.guidestar.org/organizations/31-0999046/kentucky-center-arts-foundation.aspx