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Need help with my writing homework on Opera house public environment. Write a 250 word paper answering;
Need help with my writing homework on Opera house public environment. Write a 250 word paper answering; Overview My company is an opera company located in the New Jersey around Princeton .We have own opera house which including a operahall around 1000 seats, a big &bright foyer and delicate dining halls. I aim to do 2020~2021 opera season for my opera house. It will include five productions and they are respectively Madam Butterfly, Don Giovanni, Don Carlo, Carmen, and Andrea Chenier. Our company will produce Madam Butterfly, Don Givani and Don Carlo by ourself because these three are relative small productions according to their scenery, lighting and amount of crew .which means we could save some money on scenery making and lighting. We will invest 1000 million for each production. We will co-produce Andrea Chenier with Royal Opera House. We will share 30% production fee with Royal Opera House. The first performance will in Royal Opera House and will last one month. Then the scenery, lighting and crew will directly travel to our opera house. We will share 30% our ticket sales with Royal Opera House for every performance until meet their total 30% production costs. The last one is Carmen, it will provide a chance to students around Princeton area whose major is related opera to produce this production by themselves. We will offer our opera hall, all facilities and promotion to them but we don’t pay for director, cast. Also we will take 75% ticket sales. The reason why we opt these five productions is our opera festival aim to bring operas to younger age audience which means we will chose the most representative for every period and will include as much as features as that period meanwhile We’re not only to provide these shows but also have arrange of classes and activities to make opera get close to people.
Environment analysis
Internal Environment
Strengths
Weakness
1.Clear goal
2.Our mission is focused on the audience.
3.Planning much earlier than other opera house.
4.Focus on build relationship with our audience.
1.Intensive competition
2.Limited money
3.At introduction stage of business life cycle.
4.Weak brand image.
Opportunities
Threats
1.The increasing popularity of the diversified tastes of music
2.Ticket’s price is relative lower than others
3.More interaction with audience
4.Young working team and flexible organization structure.
1.Not mature working process.
2.Not stable ticket sales and cash flow.
3.Easy to influenced by external factors.
Strengths
Our mission is to enable people to get enriched by operas which means we will do many things to let people who never watch operas feel associated with operas.According to the mission, the present goal is to attract more people.We have an agreement over that young people are more malleable so our specific goal is to attract young audience as much as possible.During the following part I will detailed analysis our target audience, here I want to emphasis that we have a clear goal of what kind of audience we’re going to focus.We do everything to make sure achieve the goal and also this goal will help us to check if we’re on the right path.
Basically, when opera house plans to do the opera season, they will book conductor and principle cast first because for opera that high artistic value sighers are on the central stage for making production.Most opera house usually two years in advance to book cast that we will take five years in advance instead of two years.Our opera house will much earlier than two years which means we have more choices in relative low price.
Weakness
Our opera house located at New York city.For a start up opera company, there’re full of competition.Metropolitan Opera House which is the benchmark in opera company industry is near us.We can’t compete with it in art resource, investment and many other things.There are a lot of substitute products like Broadway musical shows.
As we know, making an opera production needs tons of money but there’re many risks to have good ticket sales.For us we need to try hard to let others see we have potential to become strong in the future so that we could get investment.
According to business life cycle, we’re in the start-up stage during this period the company has limited revenue while the product is being introduced to the market.Production equipment should be selected and the process determined.A field support system should be designed and product features demonstrated.In this stage also needs to establish market relationships.conduct and analysis limited sales.survey customers and fine-tune marketing plan.The last one is secure first-stage financing .hire staff and execute contracts.( Finance course Power Point). However, for our company, we just know these theory and trying to achieve these.
Because of start-up stage, we even don’t have any brand image to impress our audience.We don’t have firm relationship with our opera company.
Because we’re new, we know that make mistakes may not avoid but we’ll do our best to reduce risks.
Opportunities
As I mentioned before, that we will have five productions during this session.Andrea Chenier will co-product with Royal Opera House and Carmen will directly use all package from Royal Opera House which means we could devote less money so that we don’t need to sale high price tickets.People are price sensitive and we hope we could use low price strategy to attract audience.I do think this is our opportunity to differentiate with other traditional opera house.
We aim to do a number of activities with audience including online and offline activities.To give audience that they’re part of our company.I will list some specific activities as our additional products.
Our staff are young that means we’re full of energy.The people working here are have passion to opera and have the same goal to let more people know more about operas.We will employ some people who are vey experienced in this industry.Like our stage management team’s leader is Simon who used to work on Royal Opera House over 30 years as senior stage manager.He gave us a lot of suggestion to help us grow up quickly on stage management part.We also provide chance for students to have internship in our company.In this way to make sure we have sufficient people but in lower price.
The ownership structure plays a pivotal role for the ventures to build strategic decisions regarding the strategic, managerial as well as operational functions along with formulating a sustainable position within the target market. For the new venture, it is highly essential to maintain strong ownership structure maximum benefits of the market opportunities could be ensured. Correspondingly, the ownership structure of our opera house venture would be based on a sole proprietorship formation, in which the owner of the venture would be responsible of making investments along with enjoying maximum percentage of the profit.
In the context of company structure, our opera house business would initially focus on an informal orientation due to the less number of workforce appointed at the start-up stage of the venture. After obtaining a feasible growth in the New York market, the venture would require to implement a hierarchal structure in order to obtain better control and management of the workforce. In the initial stage, the workforce structure of the venture would focus on including highly experienced artists with competent skills in executing opera operations. Moreover, initially the management individuals for the venture would be recruited as per their managing, controlling and communication skills in order to maintain a balance between the operational and managerial staff members within the organization.
Threats
Opera house is a complex organization, the working process is complex, the management process is not easy and marketing is also complex. Communication with different departments needs to find more efficient way.We need more time to overcome our internal threats.To make sure every department is on the same page.
We’re start-up company and we’re on the way to search precisely target audience.We need to as accuracy as possible otherwise we’ll be threaten by ourself because the ticket sales will directly tell that the audience we targeted is not right.
It’s normal that company influenced by market.Some influences are good which may help us get more market share but some influences are bad like not stable economy environment and other external factors.We are just beginning and we rely on external environment very much to supply that means we’re easier to get influenced by external threats.
Market Environment
Music industry environment
I would like to analyze the music industry by using Porter’s five forces and then I will put Porter’s five forces into different catalogues of SWOT analysis.I mix these two analysis tool to analyze music industry.Porter five forces analysis is a framework to analyze level of competition within an industry and business strategy development.It draws upon industrial organization economics to derive five forces that determine the competitive intensity and therefor attractiveness of an industry. Attractiveness in this context refers to the overall industry profitability.(Wikipedia) I will analysis music industry from threat of substitute products or services, the threat of established rivals, and the threat of new entrants, the bargaining power of suppliers and the bargaining power of customers.
Threat of substitute products or services
We listen to music for many different purposes. Some people may want to be relax, someone may want to be cheer up and someone may want to share with friends.There are so many substitute products and services could make you achieve these purposes.You could go to watch a movie which is cheap and entertainment.You could go to see a basketball game which is exciting.You could read book, watch TV, surfer the internet etc.In a word, there are plenty of substitute products or services for music industry.The amount of people is certain which means music industry is facing huge threat of substitute products or services so that we must make sure this industry is always attractive in order to attract people use our products, music. We need to provide cheap and good quality products and services to make us look attractive.
Threat of established rivals
Music industry is an intensive competition industry because there are so many established rivals.First of all, there are plenty of music genres.People may have their preferences of music genres but almost these genres have expectation to have more and more listeners.Here is a link for music genres list http://www.musicgenreslist.com.We could see it is a quite long list.Second, let us analysis music industry by parsing its definition which is music industry consists of the companies and individuals that make money by creating and selling music.Among the many individuals and organizations that operate within the industry are the musicians, the companies and professionals who creat and sell recorded music such as music publishers, producers, recording studios, record labels etc.From this definition, we could see music industry is huge and fascinating so the established rivals between different labels, genres, musicians etc. are definitely intensive.
Threat of new entrants
The barriers to entry are created by the following factors, level of expertise required for successful operation, access to resources& distribution network and industry contacts ( Porter’s five forces analysis http://assignmenthelpseries9.blogspot.com) The music industry is highly specialized sector.There’re already plenty of huge and mature companies and individuals.It will difficult for a new entrant to the music industry to undertake a lot of activities to develop itself and beat the competitors in a short time.Therefore it can be said that the threat of new entrants is very low when considering the music industry.
Bargaining power of suppliers
To analysis the bargaining power of suppliers, we need to figure out who are suppliers for music industry.I think the suppliers for music industry are artists, composers, live shows producers etc.According to Porter’s five force analysis that bargaining power for supplier becomes high if there are less substitutes for the products or services they are supplying. the amount which can be supplied is limited, which increases the demand for their products. there are high switching costs of changing from one supplier to another.So for music industry, some extremely talented artists who have music talented that no one could replace are definitely have high bargaining power but for others who are just love music and devoted themselves into music industry and don’t create great art value works are have low bargaining power.It’s hard for me to say the whole music industry has high or low bargaining power of suppliers.I read an article said that the ability for artists to promote & sell their albums over their own web pages had eradicated the need for most services provided by record labels. In these cases, the record label serves only to provide studios and music support rather than the full services including promotion, distribution and sales. Therefore the internet has increased the bargaining power of suppliers although the success of self-promotion is less.(Porter’s five forces analyze for music industry).Based on this article, I think for music industry, the bargaining power of suppliers are becoming over and over time.
Bargaining power of customer
According to the Porter’s five force that he buyer power is high if the buyers has many different alternatives (Wikipedia). For music industry, it is obvious for customers to have different alternatives.They could like or purchase any kinds of music based on their preference and they also get music from different access like streaming music, buy a CD or go to a music concert so the bargaining power of customer is high.That is why companies or individuals in this industry to try their best to provide best works.
SWOT analysis for music industry
Strengths
Weakness
1.No one hates music.
2.It’s easy to get associated with music.
3.Powerful industry.
Too many substitute products and services.
Bargaining power for customers are high.
Not easy to be profitable .
Opportunities
Threats
1The revenue for whole music industry is increasing .
2.Technology is an ever-changing driver of how music is consumed.
Threat of substitute products or services
Threat of new entrants .
Threat of established rival.
Music piracy
Strengths
No matter where are you from, how old are you, what is your gender, what do you do, you have your own preference of music.The only different is we prefer different music genre.You listen to music at home, in the car, at restaurant etc.You listen to music no matter you are happy, sad, excited.Music is so close to our life and it’s obvious that no one hates to listen to music.
We could listen to music by all kinds of streaming service, by radio and by downloading music.You can also buy CD or go to music concert to appreciate music.You could get music in a free way or you could pay for high quality acoustic music.No matter what kind of methods you opt, getting music is easy and convenient.
One the Youtube the most searched for topic for 2014 is “Music” , percentage of YouTube video views that are music videos which account 38.4% and also there is a report called U.S-music-year-end- report-2013 from Nielsen.In this report said that the teen consumer listens most often and spend the most time listening to music ( approximately 5.8 hours per week.). Teens have the most music apps on their smartphones-approximately seven on their primary smartphone-more than any other age group.It also said that black Friday/cyber Monday consumption which are 29% of the year’s CD sales occurred between the first week of November and the last week of December, making it an important time for mass merchants and there are a 62% increase in album sales over the prior week on week ending 12/1/13.There are a lot of numbers could show that music industry is a powerful industry.For example, in this report it segment consumers into the Hispanic consumer, the African-American consumer, and the LGBT consumer.For the Hispanic consumer part showed that this consumer has a projected buying power of $1.5 trillion by 2017.They are 15% more likely than the average adult internet user to pay for streaming music subscription.Latin track downloads have been rising over the past three years ( 31.1million in 2010, to 33.7 million in 2011, to 35.3 million in 2012).( Nielsen) All these figures could indicate that music industry is powerful and it keep increasing.
Weakness
For weakness part, I highlight in green means I put Porter’s five forces into SWOT analysis so I will focus on that music industry is not easy to be profitable .
In 2014, for the first time ever, music streaming services generated more revenue than CDs in the United States. Having been the most important source of income for the music industry since the early 1990s, the CD was dethroned by digital downloads as recently as 2012, the same year download revenues hit their peak ( U.S. streaming revenues surpassed CD sales in 2014).As we know, Spotify is one of the streaming music service leader, but there another evidence that Spotify is not yet profitable so we could conduct that music industry is not yet profitable either as the following graphs show.
Opportunities
As for technology development, music industry has changed a lot.People’s relationship with music also changed.We could use more methods to promote our products and customers have more access to get associated with different genre of music.
Threats
As mentioned above on Porter’s five forces that there are threats of substitutes, new entrants, established, rivals and also music piracy .Music theft is a real, ongoing and evolving challenge.Both the volume of music acquired illegally without paying for it and the resulting drop in revenues are staggering.Digital sales, while on the rise, are not making up difference.(RIAA-what is online privacy)
Opera market analysis
opera market size
I did the Metropolitan opera market analysis in which it includes the whole opera market analysis and I will use those information to take into my consideration to do our opera house marketing plan.I’d like to define how big the market size by knowing how many “sellers” and“ buyers ” for opera part. I need to explain these section by answering five questions.(1) How many opera companies in U.S? (2) How many people have gotten involved in opera?I mean the audience to buy the tickets.(3)What’s the average and total revenue for opera companies in U.S?
(1) How many opera companies in U.S.?
The total number of opera company is three hundreds and three. We know that there are fifty states in the United States except South Dakota and West Virginia has no opera companies at all , the rest of states are at least have one or more and New York state has the most opera companies which is fifty-two. It seems only indicate that almost everywhere has opera company and unbalanced development besides theses two seems not can prove anything else and there is a graph shows percentage of U.S. adults who attended a live performing arts events in 2012,performing arts attendance involves going to one or more of the following types of event: classical music, Latin or Spanish/salsa music, or jazzperformances. opera, musical theater, or non-musical plays. ballet or other dance performances. From this graph, we could see our opera house located area is relatively high attendance.
outdoor performing arts festivals.
(2) How many people have gotten involved in opera?
Thesecond question that I want to figure out is that how many audience have gotten involved in? We can see from the following form two which is apercent of U.S. Adults Who Attended a Musical Play or Opera in 2012. There are 235 millions adults in the U.S and the average attendance is 16.1% that means there were approximately 38 millions adults went to watch performances.As for comparing, I also attached other figures like Percent of U.S. Adults Who Attended a Jazz Concert in 2012 which attendance rate is 8.1%, Percent of U.S. Adults Who Attended a Classical Music Concert in 2012 which is 8.8%, Percent of U.S. Adults Who Attended a Latin Concert in 2012 which is 5.1%, Adults Who Attended a Non-Musical Play in 2012 which is 8.3%, Percent of U.S. Adults Who Attended a Dance Performance in 2012 which is 7.4% and percent of U.S. Adults Who Attended an Outdoor Performing Arts Festival in 2012 which is 20.8%.Although the form of percent of U.S. adults who attended a musical play or opera includes musical play and opera , we can still tell the attendance rate is not low comparing with others which can also prove that is pretty dynamic in opera market.( State and Metropolitan area art participation table)
(3) What’s the average and total revenue for opera companies in U.S?
Let’s jump to the revenue of opera companies.We use Metropolitan Opera as an example the operating revenues include box office revenues from the New York season, tour revenue, media revenues, revenues from outside presentations, and amounts drawn from the Association’s endowment which in Fiscal Year 2012 totaled $170.2 million, compared to 184.0 million in Fiscal Year 2011.
Market Environment conclusion
For this part, I analyzed music industry and opera market.Opera market is a small portion of music industry market so it definitely has much in common with whole music market. From Porter’s five forces analysis of music industry I could know that there are many substitute products and service to for music industry.That
Public environment
Opera houses are largely influenced by the public environment. They are designed for the more of public and hence the public control the business. The public environment includes the politics, culture and the decision making of the industry in opera house. It also combines the economic -social data with program and financial data of key opera firms and how they influence in programming decisions.
For instance, opera houses are mainly non-profits, but nevertheless, they need to further their development. Recent debate in Congress, America has highlighted the need of government involvement in the art just like most of the democratic states such as Japan handles arts. The discussion was taking the direction of political goodwill and funding in promoting art. This is a public environment that has profound influence on the performance of opera.
Economic and social standards such as level of income and culture of the society determine the effectiveness of opera houses. A case in point would be New York where there are almost 52 opera houses. The level of income and civilization is different from that of Florida. People appreciate art and their standard of living is also supportive. They can afford to visit opera houses and enjoy the musical art for their leisure or career purposes.
People are also more aware and educated in the urban areas as compared to less developed states. An educated mass appreciate art and hence influence how the business is conducted. The county government also encourages the business through program risk taking. It is part of the work delegated to individuals who are willing to initiate to further their goals. County government involvement reduces the risk associated with such business.
Competition Environment
Main competition
We are located around Princeton University in New Jersey, U.S so based on our location the first competitor is Metropolitan Opera.They will mainly compete with us in attracting loyalty opera production fans. Normally, arts venues will draw 80% of their audience from a 30 minute drive time around an art venue and suggest that this holds true for existing opera interest(Understanding the audience for opera).It takes around 40 minutes drive from Princeton area to Metropolitan Opera House which means if the audiences are really a big fan of opera, they won’t mind to drive extra 10 minutes to New York city.Meanwhile this part of audiences are very loyalty with opera productions.They are regular buy tickets to appreciate opera productions and do donation to support them.What more that Met is the benchmark in opera market, it is a very strong brand means they could provide high quality opera productions, state-of-the-art electronic sound and lighting systems.They also world-class cast, directors and conductors.For big fans of opera, the first choice must be Met.
The possible future for my company product
To answer this question, first of all, I need to emphasize again what my product is. Based on my product and the basic internal& external environment to predict my possible future for my product.
My product is 2020~2021 opera season including five opera productions.Basic features about my product are they are the most popular opera productions in every opera house which meanssongful melody and also some aria applicate in movies, popular songs and TV shows so people may very familiar with their sound. Because of this feature, people won’t feel it is a barrier to come into opera house to see performance.Second feature is we co-product one productions with Royal Opera House and its brand is also very strong that will make an impression on people our opera house has good quality of opera productions.We are not a grand opera house but we are indeed delicate and has good quality.Third feature is we have a number of activities to promote our opera productions which are very close to audiences’s daily life such as Sunday family day and our derivative restaurant.I will talk about this more detailed on my following part.
As for the external environment, we located in Princeton University area where is between New York and Philadelphia, is a distinctive urban village. The town is located in southwestern New Jersey in Delaware plain, an area of about 7 square kilometers, East Carnegie lake, west of the Delaware river. Princeton beautiful scenery, surrounded by trees, green grass and trees, clear water surrounded the town quietly flowing. Princeton with a population of about 30000 people, mostly affluent life. small town traffic is convenient, from the New York and Philadelphia takes about 1 hours, and the town of quiet and serene life, under the shadow of thick cultural atmosphere the nobility, so that Princeton has become American upper class like to live ( Baidu).From this we could know that our audiences could possibly from New York City, Philadelphia but for us we will focus on the families and students around this area because we are in first stage in business life cycle which means we are seeking for awareness and in another word, people are not familiar with us .So we do think seldom people are willing to take almost two hours or more to see a uncertain production that is why we decided to focus on our local families and students.Meanwhile, generally some upper class people generated in this area.We have talked in class that people within each class share similar value, interests and behavior.And also we know from last class that social networking thing which is there are two types social groups opening social groups and close social groups.This area is not a close social group but is a relatively tight opening social group which means they could influenced by others.Based on this, we look forward to attracting local people by making good quality productions and also we provide a social activity for them.
I talked about our internal environment above.Although we have a lot of weakness and threatens, we do have our strengths and opportunities.
Sum up, we have good quality of productions and audience-friendly service, a certain amount target audience geographical around us so that we want to be optimistic about our product future.It will have a good impression on customer and customer will also feel like they are one part of our organization.We expect our opera house could buildthe relationship of mutual trust with our audience. We may not be the benchmark in entire opera market but we want to be the best opera company in Princeton area by offering best service and productions.
Macro Environment
Political
The political, environmental factors are vital aspects for consideration in when setting up an Opera house. Federal and state laws are some of the fundamental components of the political environment. This section presents a comprehensive analysis of the political environment that may affect the operation of an Opera house business operating in US state of New Jersey.
The state of the New Jersey applies taxes to every business that operates in its localities. An Opera House being a business firm, its management will have to comply with applicable tax rates of the region. Every organization carrying out any income generating activity has the obligation to pay taxes depending the existing rates and the amount of income(Christensen 1). For the company to maintain good political relations with the Internal Revenue Service (IRS), it must pay tax promptly as applicable and fill tax return.
Second, the company faces the task to adhere to the rules governing the intellectual property laws. Business ideas, logos, names or inventions need protection by the above law. Therefore, any emerging business such as the Opera House must adhere to such rules to avoid future squabbles with anyone who may intend to steal their business ideas. Applying for a patent through the US patents and trademark office may be a bold step to take towards registration of the opera services (Kendall 441). Opera being a movie production business issue like copyrights records have to be set straight.
Third, the company will have to check with Environmental Protection Agency on which environmental rules and regulations apply to their and comply with them. Opera being an operator in the entertainment industry means some noise pollution regulations may apply to it (Tajtakova 365). There are also state environmental laws to meet with for example state of New Jersey has its particular environmental laws
Finally, the workplace safety and health law is also a significant regulation the company will have to comply. Workers’ safety and health are critical. Therefore, the company have to comply with the Occupational Safety and Health Act (OSHA). The company must identify the possible hazards to the employees and takes measures to minimize such accidents.
Economic ( macroµ)
Locating an opera hall with such high capacity could have a great micro and macro-economic influence not only within the university compound but also in the neighboring community. The first direct influence is the creation of employment opportunity for various stakeholders. These will include the performers, supplies of materials, employees, among others. However, the taxation levied on various products and services might affect the profit margin of the organization.
A good example is the music equipment, which are going to be very critical in almost all occasions. In addition, the opera business has been done for very long time (Affron and Mirella, 24). This means that the organization should have unique components in its ingredients so that it can have a competitive advantage. Further, most of the well-established opera specialists that might assist in the production and management will need to be paid handsomely (Royston, 45). As a startup opera business, this may cripple the profit margin of the company. It will call for proper accounting of all available resources. In the recent years, the advertising cost has been on the increase.
This has been due to increased interest on the opera business. Therefore, it will not be easy for this company, without enough resources, to brand itself in the shortest time possible. The established company in the industry might take this opportunity to directly or indirectly bring it down. This calls for strategic measures and techniques of analyzing the market trend and more so the position of competitors. On a positive note, the decrease in the price on oil will be of significant relief for those potential customers who will be willing to travel for long distances. Although these may not translate to direct increase in the markup, it will help to caution the economic crisis for the organization, but with proper management in place.
Socio-cultural
To establish an idea Opera especially near a legendary similar establishment can be an uphill task. Moreover, when the competitor is more endowed with resources and the new establishment does not have a way through to mobilize the resources it might get a bit tricky to sway the clients to your side. However, with enough expertise and making the new establishment more affordable and similarly adorable it is possible to command a mass flow of clients. The paper we will transcribe the various social-cultural factors of a newly established opera house located in New Jersey.
The opera house will have five intended festival productions namely Aida, Butterfly, Don Giovann, Andrea Chenier Carmen and Madam. The reason of the various productions is to attract young people as well as arrange activities and classes that intend to bring opera closer to people. People will enjoy the music for various purposes the first class of people listens so that they can relax. another category listens to music so as cheer up while others want to share it with friends. However, there have been so many substitutes’ products and services that have made it possible to achieve the purpose. Examples of these substitutes include watching TV, watching basketball reading books, etc.
Apart from the social perspective, there is the cultural part where in music we have various genres of music, and they are well established. In addition to well-established genres of music, we also have exorbitant companies and individuals in the industry. However, despite having gurus in the industry trends are changing where artists are promoting and selling their albums through their website page thus reducing the functions of record labels. The other new aspect that has come with dynamism in the music industry is the bargaining power of the customer has increased because music can be accessed in different ways such as buying of a CD, streaming the music live and attending concerts.
In conclusion, demographics, fashion and various trends have been exhibited in the music industry, and while establishing a successful opera house it is important to consider the various socio-cultures factors in the market in order to thrive.
Technological
From my previous analysis about Metropolitan Opera, I think technological changes have brought great changes in opera industry such like distribution, the relationship with audience and development strategy.For opera house that these technological changes are both opportunities and challenges.
For distribution part, we used to think that we need to go to opera house to see opera performances but from December 30, 2006, Met started it Metropolitan Opera Live in HD also known as The Met: Live in HD is a series of live opera performances transmitted in high-definition video via satellite from the Metropolitan Opera in New York City to select venues, primarily movie theaters, in the United States and other parts of the world. The first transmission was of a condensed English-language version of Mozarts The Magic Flute on December 30, 2006 ( Wikipedia Metropolitan Opera Live in HD) .As for this what the effect of this technological change, I would like to illustrate this effect by showing the revenue changes.Movie and radio broadcast revenue increased for the Met from about $5 million in 2006, Live in HDs first year, to $22 million in 2008, with Live in HD contributing the bulk of the growth.For the 2009-2010 season, the Met spent about $12 million in production and received about half of the $47 million box-office gross. After paying royalties to its cast and crew, the Met earned a $8 million profit.The Mets Live in HD revenue for the 2012-2013 season was $34.5 million.( Wikipedia Metropolitan Opera Live in HD).
Because of technological changes, he relationship with audience has become more close.Audiences could email or online talk with Met.Met also has its Facebook official set, Twitter, Youtube channel so that people know what is going on in Met, it is a convenient way for audience to get information about Met.On the other hand, Met could know audiences need by interacting with them.It is also good for Met to directly know their audience.
Based on above two, distributions and relationship with audience, that Met adjust their development strategy.Generally speaking, they spent more time and pay more attention on their audience’s need.
From Met’s experience, our opera house also needs to make use of technology in promotion strategy for our opera season.I will detailed talk about this on my promotion part.
Marketing Objectives, goals&marketing strategies
Targeted goal
Ourcompany’s mission is to enable people to get enriched by operas which means we will try our best to provide products to meet their need.We will always keep this mission in mind.That mission lead to our targeted goal which is let people in Princeton area feel like they are part of our organization.
How the company will sustain its position in the market
To answer this question, I need to tell what our company’s position is.In Princeton area our position is the only one opera house but in whole market, our company is just a new start-up company.There are six opera houses which are Boheme Opera New Jersey, Eastern Opera of New Jersey, Garden State Philharmonic, The little opera company of New Jersey and New Jersey concert opera in New Jersey area from Wikipedia information but no one is actually exist any more so from this aspect, our company is a main entertainment place for this area’s people.We know that new entrants could show up at any moment, so if we want to keep our position, we need to provide good quality productions and friendly service to foster audience.And our 2020~2021 opera season shows our determination which we spent tons of money on our production.
For whole U.S market, our company and product are on the first stage of product life cycle.Products, like people have been viewed as having a life cycle.The concept of the product life cycle describes the stages a new product goes through in the marketplace which are introduction, growth, maturity and decline( Finance class notes).We considered our product on introduction stage and the basic strategy for us is infiltrate. Specifically, we plan to do the following four things.
Build relationships with reliable suppliers.(Finance class notes)
We will try to build relationship with some good artists who are also new but very professional.We could find these people from some singing competition, conservatories of music like Juilliard School of Music and Manhattan School of Music, etc.Meanwhile, we will build relationship with several older opera houses.As we know, the scenery, costume and other props cost a lot but we only use for one show for several times.We want to borrow these stuff from other opera houses which will be cheaper and also can save storage space for us.
Plan financing for negative cash flow.(Finance class notes)
We are new company so our ticket sales is not stable. We need to have a detailed financing plan for emerge situation.
Scale up production and marketing operations.
Producing five productions for a new company is our way to continue attract audience’s attention.Also we have a lot classes, derivative product, activities for audience to keep our relationship.
Anticipate competition
As we talked about in marketing class that competition naturally exists in free-market systems.We will differ on price, production quality and marketing variable.Price, that we will much lower than Metropolitan Opera whose are $40~$440. Quality,we couldn’t have as high quality productions as Met but we will provide higher quality productions than other opera houses which are on the same develop stage with us that means we will produce relative small but exquisite productions. Marketing variable, we will have series promotion to promote our opera season using multiple media tools, many interesting topics to attract our audience.That the basic idea about how we will differentiate ourself in the market to take advantage in competition environment .
Target Market
Demographic Profile
Our opera house located in Princeton University are.I will show by the following table form Census Bureau.It is a very comprehensive form including New Jersey area figures but our company aim to focus on Princeton area so I will make a form direct at this area and I will also attach the original one in my appendix.I also cut out some figures which I think that won’t influence our company very much.I highlight in yellow means the catalogues, and highlight in green means theses figures I concern are important to our company.
Subject
Princeton, New Jersey
Estimate
Percentage
Households by Type
Total households
9,345
9,345
Family households (families)
5,909
63.2%
With own children under 18 years
2,650
28.4%
Married-couple family
5,134
54.9%
With own children under 18 years
2,377
25.4%
Female householder, no husband present, family
595
6.4%
With own children under 18 years
236
2.5%
Non family households
3,436
36.8%
Householder living alone
2,681
28.7%
65 years and over
980
10.5%
Households with one or more people under 18 years
2,772
29.7%
Households with one or more people 65 years and over
2,809
30.1%
Average household size
2.43
(X)
Average family size
3.01
(X)
Relationship
Population in households
22,682
22,682
Householder
9,345
41.2%
Spouse
5,142
22.7%
Child
5,910
26.15
Other relatives
841
3.7%
Non relatives
1,444
6.4%
Unmarried partner
363
1.6%
Marital status
Males 15 years and over
11,778
11,778
Never married
5,638
47.8%
Now married, except separated
5,475
46.4%
Separated
148
1.3%
Widowed
188
1.6%
Divorced
339
2.9%
Females 15 years and over
12,882
12,882
Never married
5,519
42.9%
Now married, except separated
5,555
43.2%
Separated
47
0.4%
Widowed
798
6.2%
Divorced
933
7.3%
School enrollment
Population 3 years and over enrolled in school
12,638
12,638
Nursery school, preschool
570
4.5%
Kindergarten
343
2.7%
Elementary school (1-8)
2,072
16.4%
High school (grades 9-12)
1,174
9.3%
College or graduate school
8,479
67.1%
Educational Attainment
Population 25 years and over
16,716
16,716
Less than 9th grade
384
2.3%
9th to 12th grade, no diploma
304
1.8%
High school graduate(includes equivalency)
1,172
7.0%
Some college, no degree
1,244
7.4%
Associate’s degree
294
1.8%
Bachelor’s degree
4,658
27.9%
Graduate or professional degree
8,660
51.8%
Percent high school graduate or higher
95.9%
Percent bachelor’s degree or higher
79.7%
U.S citizenship status
Foreign-born population
6,990
6,990
Naturalized U.S citizen
3,317
47.5%
Not a U.S citizen
3,673
52.5%
World region of birth of foreign born
Foreign-born population, excluding population born at sea
6,990
6,990
Europe
2,378
34%
Asia
3,239
46.3%
Language spoken at home
Population 5 years and over
27,238
27,238
English only
18,928
69.5%
Language other than English
8,301
30.5%
Other Indo-European languages
3,654
13.4
ANCESTRY
Total population
28,621
28,621
American
1,055
3.7%
French (except Basque)
636
2.2%
German
3,648
12.7%
Italian
2,644
9.2%
http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk
I analyzed Met’s target audience which the main target audience has been composed of the older adults aged 65 and above making up 60% of the audience (Shugoll Report, 2009). In terms of gender, there is a balance as more people are likely to come as couples. From the report we can also know for education part that opera events are attracting educated people, mainly to degree level.For household income part that opera events are attracting those in the higher income brackets.Wealth & Wisdom and Better Off Families show considerably higher than average likelihoods of having household incomes of £50,000 or more a year. ( Understanding the audience for opera events in Northern Ireland) .I considered those are basic features about opera audience.Although our company intend to differentiate in opera market by attracting another group rather than directly compete with Met, I still think the core audiences have above those basic features.We couldn’t strictly switch to teenager group because they don’t have background to appreciate opera productions so in order to reduce our risk, we need to service the core audiences first and gradually expand other group of audiences.
Geographic Profile
Princeton was founded before the American Revolution and is best known as the location of Princeton University, located in the community since 1756. Although its association with the university is primarily what makes Princeton a college town, other important institutions in the area include the Institute for Advanced Study, Westminster Choir College, Princeton Plasma Physics Laboratory, Princeton Theological Seminary, Opinion Research Corporation, Siemens Corporate Research, SRI International, FMC Corporation, The Robert Wood Johnson Foundation, Amrep, Church and Dwight, Berlitz International, and Dow Jones & Company.(Wikipedia, Princeton, New Jersey)
Climate
Like most of the Northeastern United States, Princeton has a humid continental climate, and generally sees cold winters and hot, humid summers. According to Weather.com, the lowest recorded temperature in Princeton was −16 .°F (−27 .°C) on January 28, 1935, and the highest record temperature was 105 .°F (41 .°C) on July 9, 1936
Princeton is roughly equidistant from New York City and Philadelphia. Princeton is close to many major highways that serve both cities, and receives all major TV and radio broadcasts from each.(Wikipedia, Princeton, New Jersey)
Transportation
As I mentioned before, normally arts venues will draw 80% of their audience from 30 minute drive time around an arts venue so I concern that transportation is very important for us for the further development.Although our current strategy focus on local people, it is not enough.Good transportation is concerned one of our development potential in the future.I get some basic information about Princeton area to evaluate how good or bad it is.
Trains
Since the 19th century, it has been connected by rail to both of these cities by the Princeton Branch rail line to the nearby Princeton Junction Station on Amtraks Northeast Corridor. The Princeton train station was moved from under Blair Hall to a more southerly location on University Place in 1918, and was moved further southeast in 2013.Commuting to New York from Princeton became commonplace after the Second World War. While the Amtrak ride time is similar to New York and to Philadelphia, the commuter-train ride to New York — via New Jersey Transits Northeast Corridor Line — is generally much faster than the equivalent train ride to Philadelphia, which involves a transfer to SEPTA trains in Trenton. New Jersey Transit provides shuttle service between the Princeton and Princeton Junction stations. the train is locally called the “Dinky”,and has also been known as the “PJ&B” (for “Princeton Junction and Back”).Two train cars, or sometimes just one, are used.
Buses
NJ Transit provides bus service to Trenton on the 606 route and local service on routes 605 and 655. Coach USA Suburban Transit operates frequent daily service to midtown NYC on the 100 route, and weekday rush-hour service to downtown NYC on the 600 route.Princeton and Princeton University provide the FreeB and Tiger Transit local bus services.
Roads and highways
As of May 2010, the borough had a total of 126.95 miles (204.31 .km) of roadways, of which 118.36 miles (190.48 .km) were maintained by the municipality, 3.93 miles (6.32 .km) by Mercer County, and 8.66 miles (13.94 .km) by the New Jersey Department of Transportation.
U.S. Route 206and New Jersey Route 27 pass through Princeton, along with County Routes 583, 571 (commonly known as Washington Road) and 533.Other major roads that are accessible outside the municipality include U.S. Route 1 (in Lawrence, West Windsor & South Brunswick), Interstate 95 (the section north of Trenton) and Interstate 295 (both in Lawrence), and the New Jersey Turnpike (also designated as Interstate 95, east of Trenton). The closest Turnpike exits are Exit 8A in Monroe Township, Exit 8 in East Windsor, and Exit 7A in Robbinsville.
A number of proposed highways around Princeton have been canceled. The Somerset Freeway (Interstate 95) was to pass just outside the municipality before ending in Hopewell (to the south) and Franklin (to the north). This project was canceled in 1980. Route 92 was supposed to remedy the lack of limited-access highways to the greater Princeton area. The road would have started at Route 1 near Ridge Road in South Brunswick and ended at Exit 8A of the Turnpike. However, that project was killed in 2006.
I don’t have any experience live in this area so it is a little bit hard for me to say how convenient it is.From my common sense, these trains, buses, roads and high ways are seemed convenient enough.We will assume that our opera house will have a promising future based on good transportation so that more people out of town could possibly come to us.
Geodemographic Profile
Geodemographic segmentation or clustering inthe marketing context involves classifying small geographic areas – for example, block groups, census tracts, or neighborhoods – into relatively homogeneous market segments.(Geodemographic segmentation: New methods, new results)
From Census Princeton Quick facts.
I have talked about geographic profile and demographic profile above and these two captured pictures from census are general quick facts about this area.Following I will focus on economic characteristics and housing characteristics about Princeton area.
Subject
Princeton city,Illinois
Estimate
Percetage
EMPLOYMENT STATUS
Population 16 years and over
6,386
6,386
In labor force
4,062
63.6%
Civilian labor force
4,062
63.6%
Employed
3,675
57.5%
Unemplyed
387
6.1%
Not in labor force
2,324
36.4%
Civilian labor force
4,062
4,062
Percent Unemployed
9.5%
Females 16 years and over
3,523
3,523
In labor force
2,055
58.3%
Civilian labor force
2055
58.3%
Employed
1,873
53.2%
Own children under 6 years
381
381
All parents in family in labor force
345
90.6%
Own children 6 to 17 years
1,223
1,223
All parents in family in labor force
1,002
81.9%
COMMUTING TO WORK
Workers 16 years and over
3,657
3,657
Car, truck, or van — drove alone
3,034
80.7%
Car, truck, or van — carpooled
286
7.8%
Public transportation (excluding taxicab)
63
1.7%
Walked
82
2.2%
Other means
63
1.7%
Worked at home
129
3.5%
Mean travel time to work (minutes)
17.4
OCCUPATION
Civilian employed population 16 years and over
3,675
3,675
Management, business, science, and arts occupations
859
23.4%
Service occupations
776
21.1%
Sales and office occupations
1,001
27.2%
Natural resources, construction, and maintenance occupations
368
10.0%
Production, transportation, and material moving occupations
671
18.3%
Industry
Civilian employed population 16 years and over
3,675
3,675
Agriculture, forestry, fishing and hunting, and mining
82
2.2%
Construction
263
7.2%
Manufacturing
590
19.1%
Wholesale trade
95
2.6%
Retail trade
560
15.2%
Transportation and warehousing, and utilities
203
5.5%
Information
63
1.7%
Finance and insurance, and real estate and rental and leasing
247
6.7%
Professional, scientific, and management, and administrative and waste management services
208
5.7%
Educational services, and health care and social assistance
660
18.0%
Arts, entertainment, and recreation, and accommodation and food services
322
8.8%
Other services, except public administration
232
6.3%
Public administration
150
4.1%
CLASS OF WORKER
Civilian employed population 16 years and over
3,675
3,675
Private wage and salary workers
2,954
80.4%
Government workers
501
13.6%
Self-employed in own not incorporated business workers
220
6.0%
Unpaid family workers
0
0%
INCOME AND BENEFITS (IN 2013 INFLATION-ADJUSTED DOLLARS)
Total households
3,466
3,466
Less than $10,000
185
5.3%
$10,000 to $14,999
264
7.6%
$15,000 to $24,999
578
16.7%
$25,000 to $34,999
325
9.4%
$35,000 to $49,999
578
16.7%
$50,000 to $74,999
598
17.3%
$75,000 to $99,999
348
10.0%
$100,000 to $149,999
421
12.1%
$150,000 to $199,999
39
1.1%
$200,000 or more
130
3.8%
Median household income (dollars)
43,725
Mean household income (dollars)
63,786
Families
2,050
2,050
Less than $10,000
144
7.0%
$10,000 to $14,999
41
2.0%
$15,000 to $24,999
232
11.3%
$25,000 to $34,999
152
7.4%
$35,000 to $49,999
347
16.9%
$50,000 to $74,999
385
18.8%
$75,000 to $99,999
276
13.5%
$100,000 to $149,999
344
16.8%
$150,000 to $199,999
39
1.9%
$200,000 or more
90
4.4%
Median family income (dollars)
56.528
Mean family income (dollars)
77,074
Per capita income (dollars)
28,486
Nonfamily households
1,416
Median nonfamily income (dollars)
29,637
Mean nonfamily income (dollars)
42,978
Median earnings for workers (dollars)
26,258
Median earnings for male full-time, year-round workers (dollars)
42,309
Median earnings for female full-time, year-round workers (dollars)
32,364
PERCENTAGE OF FAMILIES AND PEOPLE WHOSE INCOME IN THE PAST 12 MONTHS IS BELOW THE POVERTY LEVEL
All families
14.1%
With related children under 18 years
28.8%
With related children under 5 years only
28.1%
Married couple families
With related children under 18 years
6.4%
With related children under 5 years only
13.0%
Families with female householder, no husband present
48.7%
With related children under 18 years
57.7%
With related children under 5 years only
100%
These figures will be used for setting the price for my after part.I will explain them in the following part to see how much for the ticket price is appropriate. From these figures, roughly we could conduct that this is a pretty wealthy places.
For the housing characteristics, it determined our advertisements
Subject
Princeton area
Estimate
Percent
Housing occupancy
Total housing units
3,926
3,926
Occupied housing units
3,466
88.3%
Vacant housing units
460
11.7%
UNITS IN STRUCTURE
Total housing units
3,926
3,926
1-unit, detached
2,856
72.7%
1-unit, attached
112
2.9%
2 units
147
3.7%
3 or 4 units
281
7.2%
5 to 9 units
226
5.8%
10 to 19 units
107
2.7%
20 or more units
159
4.0%
Mobile home
38
1.0%
Boat, RV, van, etc.
0
0%
Value
Owner-occupied units
2,378
2,378
Less than $50,000
168
7.1%
$50,000 to $99,999
727
30.6%
$100,000 to $149,999
822
34.6%
$150,000 to $199,999
429
18.0%
$200,000 to $299,999
196
8.2%
$300,000 to $499,999
36
1.5%
$500,000 to $999,999
0
0
SELECTED MONTHLY OWNER COSTS AS A PERCENTAGE OF HOUSEHOLD INCOME (SMOCAPI)
Housing units with a mortgage (excluding units where SMOCAPI cannot be computed)
1,487
1,487
Less than 20.0 percent
691
46.5%
20.0 to 24.9 percent
218
14.7%
25.0 to 29.9 percent
150
10.1%
30.0 to 34.9 percent
70
4.7%
35.0 percent or more
358
24.1%
Housing unit without a mortgage (excluding units where SMOCAPI cannot be computed)
Less than 10.0 percent
356
40.4%
10.0 to 14.9 percent
214
24.3%
15.0 to 19.9 percent
97
11.0%
20.0 to 24.9 percent
59
6.7%
25.0 to 29.9 percent
31
3.5%
30.0 to 34.9 percent
63
7.1%
35.0 percent or more
62
7.0%
Psychographic Profile
Understanding the personal attributes such as personality, attitude and lifestyle is important in knowing the necessary variations that are needed in opening an opera house in the particular area. People are likely to be drawn to the opera house if they believe that they will be entertained. The attitude of the people is likely to be positive if they feel that the place will provide relaxation from their busy day activities. Moreover, opera house may offer classical music which is new in the area. According to Nina Ruggiero, an editor with Ammy.com, the house such a Lincoln Center should be in a position to give the visitors a new feeling when they visit. Such has been used to hold iconic events in the region. An example of an Opera House that has been successful over time is the Sydney Opera House that has been active for over 40 years (ABC News).
Linking personality to promote the opera house is important. People who are mostly open, conscientiousness and extroverted are more willing to offer clientele. In the area, people like meeting up, the opera would provide the meeting point. The opera house will be a place to exchange ideas among the people. The people may perceive opera houses to be places for rich people. This may influence the high income earners to go to the opera house.
The desire of the people in the region to go to the opera house will be driven by curiosity to seek entertainment from the new establishment in the area. Moreover, more people can be coerced to the opera by their peers since most of the population in the region consists of young adults to middle aged person. In this regard, the psychographic data is important in establishing the market for the opera house. According to Kane, an editor with the Irish Times, a good example is the Wexford Opera house where in 2014 reported to have sold almost 90% of the 21 500 tickets put for sale for the different performances.
Behavioral Profile
In my marketing analysis said that people’s motivationgoing to isthat they love art and they find the experience at the opera as a place for relaxation and enjoyment away from common social events such as concerts and sports. The Met Opera fits their lifestyle by giving them an opportunity to enjoy art through the staging of the plays, the lifelike experience produced in the sets, and the music with perfect acoustics.
For our company, on the one hand, we want to people benefited from enjoy high quality opera productions.On the other hand, which we concerned more important is to provide a place for family to get close to art.
We have five opera productions in this season, we want to feel enjoyable by watching them and we also want to them feel like they are part of our organization after they joining our activities.
Conclusion
Our product is on introduction stage of life cycle so what the most thing we valued for this period is gaining awareness which means we want to reach more potential audiences as much as possible.Meanwhile, because of our mission which is enable people to get enriched by operas so another thing we valued to make people around us feel like we are everywhere but in a pleasant way.We want to people feel like we are a good neighborhood.
From all all above analysis, basically we focus on two groups. One is communities around Princeton area.The more detailed features for community group are married-couple families, with own children under 18 years, all parents in family in labor force, families income between 35,000~200,000 or more , has bachelor degree or higher.The reason why we target these people basically because they are huge amount, so it could meet our value which is reach more potential audience as much as possible.Another reason is they seems like the similar lifestyle which is parents are well-educated people with good salary and needs to work.We conduct these people valued relax and convenient, also as normal customer they valued low price.We have a number of activities to provide families could attend together,and also we have five productions although they are operas, they are very popular, not hard to understand with songful melody.Meanwhile we are near to them so they are definitely our target market.
Another group is university students, we know that not much students at this age will knee to opera productions, so we target students whose major is related theater or opera no matter acting, director because opera productions are kinds of related their major, they suppose to have sense of them.For these students, we considered them valued first of all low price tickets as students status .Also because they are professional, they may want to get experience by attending to produce real productions.We will provide activities aim to them to show how we are working, and have practical training courses to them.
Marketing Mix
Product
a.The products
The main products are five opera productions which areMadam Butterfly, Don Giovanni, Aida, Carmen, and Andrea Cheni
