duke case competition
TRANSCRIPT
Initial Analysis and Strategy for Upcoming Entertainment Co.
Diana Ye, Andrew Cho, Courtney Arena, and Ankit Kayastha
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Agenda01
02
03
04
05
Location Recommendation
Overall Market Size Over Three Years
Ticket Pricing Strategy to Maximize Profits
Creative Marketing Strategy
Conclusion and Future Recommendations
Duke Case CompetitionCopyright © 2016 Deloitte Development LLC. All rights reserved. 3Copyright © 2016 Deloitte Development LLC. All rights reserved.
Location: Los Angeles
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Overall 2016 US Population Breakdown by Geography
Targeted Geographic Location
Total US Population Breakdown
California 31.611MArizona 2.3387MNevada 5.4998MRest 217.5505M
State Proportion of US Population
California 0.123 MNevada 0.0091MArizona 0.0214MTotal: 0.1535M
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Estimated General Concert Attendants fromTarget States and Remaining U.S.
Age % of Potential Concert Attendees
16-17 36,90018-26 369,00027-35 177,12036-45 98,40046-55 55,35056+ 61,500Total 798,270
California
Age % of Potential Concert Attendees
16-17 6,42018-26 64,20027-35 30,81636-45 17,12046-55 9,63056+ 10,700Total 138,886
Age % of Potential Concert Attendees
16-17 2,73018-26 27,30027-35 13,10436-45 7,28046-55 4,09556+ 4,550Total 59,059
Age % of Potential Concert Attendees
16-17 253,95018-26 2,539,50027-35 1,218,96036-45 677,20046-55 380,92556+ 423,250Total 5,493,785
Nevada Arizona Remaining
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Forecasted Growth Over 3 Years
Year 1
Year 2
Year 3
0 50 100 150 200 250 300 350 400
Forecasted Growth Rate
Conc
ert A
ttend
ees
California(p=0.25) 199,568
Nevada(p=0.25) 34722
Arizona(p=0.25) 14,764
Other USA(p=0.01) 54,938
Annual Growth Rate: 10%
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Revenue
1 2 30
20
40
60
80
100
120
140
Revenue Streams
1-Day Pass3-Day Normal3-Day GroupVIP PassFood & Bev-erage
Year Number
Reve
nue
(M)
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Costs
Costs
Venue $2MArtists $1.8MEquipment Rental $1MAdvertising $500,000Labor $1.4MTotal $6.7M
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Pricing Strategy
Individual
1-Day Pass $150
3-Day Pass $400
VIP 3-Day Pass $800
GroupStudent Package 5 person 3-Day Pass
$350/person
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Marketing Strategy
1. Fanatic fan2. Three-day fan3. Headliner fan
Audience targetingNew channels
Proprietary appExciting native
creatives
Selling an experience