Jul 042012
 

Using a CRM strategy is probably one of the best solutions for the problem in the following case study. Your task in this activity is to develop a strategy to increase attendance for this organization’s main event.

Please note that there is an updated version of this activity now available, which also includes an interactive spreadsheet.

ACTIVITY/TASK

You’ve been called in as a consultant to help the organizers of a “religious music festival”. This festival is held each year over an October weekend in a small country town about 2-hour drive from a major city. The festival has been held for 7 years with moderate success. However, the organizers believe that it has far greater potential.

Recent Attendee Survey Results

Attended before?

Yes = 21%

No = 79%

Age Group

Under 15 = 12%

15-19 = 30%

20-24 = 38%

Over 24 = 20%

Awareness of event

52% family/friend

18% church

15% brochure

12% web site

3% other

Attend with a group?

Yes = 74%

No = 26%

Are you religious?

Yes = 59%

No = 41%

General Background Information

 Promotion Methods Used

  • Web site
  • Brochures sent to major church youth groups

Pricing

  • Adult = $15 per day or $30 for 3 days
  • Students = $10 per day or $20 for 3 days

Facilities

  • Basic food/drink outlets
  • No alcohol
  • Some security/medical
  • Portable toilets

Accommodation/Transport

  • Caravans and camping within 15mins
  • No transport

 

FINANCIAL OVERVIEW

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Attendance

700

1,200

1,900

2,500

2,800

3,000

3,200

Avg Entry Fee

25

25

25

25

25

25

25

Total Entry Fee

$   17,500

$   30,000

$   47,500

$   62,500

$   70,000

$   75,000

$   80,000

Food/Drink Sales

$   21,000

$   36,000

$   57,000

$   75,000

$   84,000

$   90,000

$   96,000

TOTAL INCOME

$   38,500

$   66,000

$ 104,500

$ 137,500

$ 154,000

$ 165,000

$ 176,000

Web Site

0

0

0

$     5,000

$     5,000

$     5,000

$     5,000

Brochures/Posters

$   20,000

$   20,000

$   20,000

$   20,000

$   20,000

$   20,000

$   20,000

Security/Facilities

$   10,000

$   10,000

$   10,000

$   10,000

$   20,000

$   20,000

$   30,000

Administration

$   15,000

$   15,000

$   15,000

$   15,000

$   15,000

$   15,000

$   15,000

Cost of Food/Drink

$   10,500

$   18,000

$   28,500

$   37,500

$   42,000

$   45,000

$   48,000

Equipment hire

$   30,000

$   30,000

$   30,000

$   30,000

$   30,000

$   30,000

$   30,000

TOTAL COSTS

$   85,500

$   93,000

$ 103,500

$ 117,500

$ 132,000

$ 135,000

$ 148,000

GROSS PROFIT

$  (47,000)

$  (27,000)

$     1,000

$   20,000

$   22,000

$   30,000

$   28,000


Environmental Analysis

Corporation

  • It is important that the event maintains a religious message.
  • Looking for the event to earn a profit of $100,000 plus in coming years.
  • Limited/no funds to contribute now – needs to be self-supporting.

Competitors

  • Other concert events are growing in popularity – likely to clash on some weekends.
  • Non-music (e.g. sporting events) are competitors as well
  • Increasing numbers of ‘no alcohol’ events for teenagers/young adults.

Customers

  • Focus groups indicate that participants are generally satisfied.
  • Travel is a concern – and need to organize their own group travel.
  • Word-of-mouth recommendation appears to be the strongest reason to go.

Social

  • More emphasis/acceptability of more diverse events
  • More affluent teens and young adults.
  • Decreasing church attendance levels.

Technology

  • Virtually all teens and young adults have access to internet.
  • Quality of music and sound is expected to be very high.

Economic

  • Continued economic growth expected.
  • Youth unemployment still expected to remain at high levels.

Political

  • Big problems with public liability – will need $30,000 insurance policy next year.
  • Likely to be increasing requirements on health (e.g. food), security and safety.

 

QUESTIONS

  1. What is their financial/profit forecast without a strategy change?
  2. Therefore, how much extra profit will a strategy change need to generate?
  3. Outline a relationship-based marketing strategy to recover this profit shortfall.

 

 

 

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