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