Marketing Plan Assignment

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1.0 Executive Summary 2.0 Situation Analysis o Market Summary  Target Markets  Market Analysis  Market Demographics  Market Needs  Market Trends  Market Growth o SWOT Analysis  Strengths  Weaknesses  Opportunities  Threats o Alternative Providers o Service Offering o Keys to Success o Critical Issues • 3.0 Marketing Strategy o Mission o Marketing Objectives o Financial Objectives o Target Markets o Positioning o Strategy Pyramid • 4.0 Financials o Break-even Analysis  Break-even Analysis  Break-even Analysis o Funding Forecast  Funding Monthly  Funding Forecast o Expense Forecast  Monthly Expense Budget  Marketing Expense Budget • 5.0 Controls o Implementation  Milestones o Marketing Organization o Contingency Planning

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1.0 Executive Summary The value of live theatre is immeasurable. The Players Theatre Company offers self-growth and education to all of its audiences. Our classes for students are focused on building self-confidence through theatre games and performance. Our classes for educators offer new and interesting ways in how to approach traditional

academic subjects, such as math and social studies. We also teach new ways in how to relate to students and how to optimize the learning time in the classroom. Moreover, The Players rework traditional pieces and create new pieces to fit in with the fast-paced times of the end at the 20th century. Our performances are always a new experience for audiences even if it is a new rendition of Romeo and Juliet. We try to relate as performers to our contemporary audience and offer new insights on our society. 2.0 Situation Analysis The Players Theatre Company has just emerged in the press as a reputable, quality theatre company. There has been an increased interest in the community in our classes and productions. Currently, traditional theatre is available to the public, but there has been a call for educational performances. We want to take advantage of this current popularity to grow in funding and in audience (both quantitatively and geographically).

2.1 Market Summary We are experiencing growth in interest in theatre from the community and the current trend in education and entertainment. Also our demographics are widening, encompassing more and more people from different walks of life. There is definitely an opportunity here to be seized.

Target Markets

Market Analysis Market Analysis 2001 Potential Customers

2002

2003

2004

2005

Growth

CAGR

General Audience

30%

130,000

169,000

219,700

285,610

371,293

30.00%

Educators

50%

25,000

37,500

56,250

84,375

126,563

50.00%

Parents

20%

50,000

60,000

72,000

86,400

103,680

20.00%

30.88%

205,000

266,500

347,950

456,385

601,536

30.88%

Total

2.1.1 Market Demographics Market Geographics As a theatre company (as opposed to an established theatre), we have the flexibility to move from region to region giving us greater access to a wider audience. Currently we are restricted to our county because of our limited contacts, but we are focusing on growing to eventually encompass the entire West Coast and possibly the rest of the country. Market Demographics Most people who go to the theatre go to see live theatre. Since movies, home video rentals and TV are prevalent, a theatregoer is not a hard sell. They want to be there. They have made a conscious choice about how they wish to be entertained. These people can be of any age, any nationality, and any gender. We have low ticket prices so we can include all levels of economic status, but most theatregoers are of middle economic status since most theatres tend to have high ticket prices ($15-$20). The common factors, however, are the following:

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Value the arts. Usually a high level of education. Background of exposure to the arts, or even an education in the arts. Ages vary from young adults to the elderly.

Market Behaviors Theatregoers are loyal consumers. If they like a show, they will come back for other performances. However, the frequency with which the average audience member goes to a show is most likely once a month, oftentimes less. Teachers and students, however, want more and more live performances to energize their curriculum and the call for theatre is frequent.

2.1.2 Market Needs The value of live theatre is immeasurable. The Players Theatre Company offers self-growth and education to all of its audiences. Our classes for students are focused on building self-confidence through theatre games and performance. Our classes for educators offer new and interesting ways on how to approach traditional academic subjects such as math and social studies. We also teach new ways on how to relate to students and how to optimize the learning time in the classroom. Moreover, The Players rework traditional pieces and create new pieces to fit in with the fast-paced times of the end at the 20th century. Our performances are always a new experience for audiences even if it is a new rendition of Romeo and Juliet. We try to relate as performers to our contemporary audience and offer new insights on our society.

2.1.3 Market Trends The trend in education is towards breaking traditions and discovering new ways in how to teach and how to relate to students. For example, teachers are going to seminars about the different ways people learn: visual, aural, etc. The call for something new is where our theatre company steps in. Not only do we offer

classes but also performances that draw from history, social issues, and literature, and we present them in a new non-traditional format. As theatre becomes more and more commercial, and with the burst of touring Broadway shows, more and more people are becoming interested and aware of the value that live theatre has for our communities. Even non-traditional shows are selling out to audiences who just five years ago would have never stepped inside a theatre.

Market Forecast

2.1.4 Market Growth The market trends discussed in the previous topic point toward a market growth currently estimated at 30% for the next two years. We would like to take advantage of this and try to create growth in our audience by at least 50% by expanding our tours beyond our home county and then outside of the state, and so on.

Target Market Growth

2.2 SWOT Analysis The following is an outline of The Players Theatre Company's strengths, weaknesses, opportunities, and threats. Currently our strengths and opportunities outweigh our weaknesses; however, our weaknesses punctuate our need for more of the following resources: time, employees, and funding.

2.2.1 Strengths

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Dedication of volunteers and management. Creative company members. A cooperative work environment. Members are well-educated in areas of expertise. Efficient in use of materials. Low overhead and designed to adapt to the market's needs. Offering an affordable theatre experience.

2.2.2 Weaknesses

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Limited employees. Limited time because of employees. Limited financial resources.

2.2.3 Opportunities

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Excellent reviews of current productions. Letter of recommendation from local school district head. Possible interview with American Theatre magazine. Need for live theatre in our market. Diminishing experiences offered through schools and other publicly supported performance activities.

2.2.4 Threats

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Loss of government grants. Bad reviews. Change in audience attendance (most hurtful). Competitive experiences, including dinner theatre. Challenges securing performance facilities.

2.3 Alternative Providers

Other local theatre companies offer performances of lesser quality compared to ours, which has been stated repeatedly in newspaper and theatre magazine reviews. Also, our tickets are priced from $3-$8 less than other companies, making us more accessible to a wider audience. Two companies: the Shakespearean, and the Downtown, have opened classes to students at, however, a higher price, and in a limited venue. We take our classes to the schools and offer a sliding fee scale, so that any student can attend. What is most unique about The Players, is that we take our performances on tour to regional school districts and will sometimes, depending on our financial situation, offer these free to poorer communities. Also we must keep in mind, that there are other forms of entertainment, such as movie theaters, video rentals, and the option of theatregoers travelling to other markets with live theatre, i.e.. New York. However, we are focusing on offering services that none of these provide, such as educational seminars. Film entertainment is very different from a live theatre experience so just in that aspect, we offer something unique. Travelling to view live theatre is often not an option for many people, and our tours fill this gap in the market.

2.4 Service Offering

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Live theatrical performances cost us $1,000 for a four week run for a general audience.

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Theatre seminars cost us $50 per class. School/Tour performances cost us $1,000 per show (sometimes already accounted for with an established show) plus travel expenses ($500-$1,000) for educators and students, and occasionally a general audience in a small community, ie. Warm Springs Reservation.

2.5 Keys to Success The following we consider to be our keys to success:

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Interns and dedicated volunteers. Re-use of previous sets, costumes, and props to save money. Market awareness. Funding to support the organization.

2.6 Critical Issues Our major issue to face is lack of audience. We have a solid foundation of dedicated, creative workers that make things happen, but our business depends on there being an audience--a good-sized audience at that. If our following decreases even to 500, that is not enough for us to grow or even sustain our business. However, with the combined experience, education, dedication, and innovation of our company, we can implement plans and strategies that will not only guarantee a growth in audience but in our business as well. 3.0 Marketing Strategy In our company, we have a pool of resources in our staff to draw from. We plan to use our combined effort to establish a stronger relationship with our local community and regional communities by performing and teaching seminars at the surrounding schools.

Our strategy is based on the concept that:

1. Awareness precedes ticket sales. 2. Quality performances generate repeat purchases. 3.1 Mission The Players Theatre Company was created to bring a higher level of entertainment to people from all walks of life. We are dedicated to bringing quality education, self-growth, self-confidence and social issues to our public schools by establishing relationships with communities and their educational institutions.

3.2 Marketing Objectives Our objective is to increase our audience by at least 50%, to expand it geographically into other regions of the state, and to gain more recognition among the public school districts and other educational institutions.

1. Increase general audience by 50% (measured in ticket sales...currently we have the capacity to sell 1,200 tickets per month, but on average we are only selling 80% of that). 2. Set up a tour that includes at least one school from each district in the state which will start spring term of 2000 with two performances per school. 3.3 Financial Objectives Our financial objectives include the following:

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Increase funding by 50%. Increase public contribution (both corporate and individual) by 10%. Meet our financial obligations for the fiscal year of 1999.

3.4 Target Markets We are targeting a general audience that consists of adults, children, and the elderly with an interest in entertainment and the arts. We are also targeting parents of children from the ages of 5 to 17 for the theatre seminars we hold at the schools and at the after-school care programs. Another target market for us is educators from all levels of education. We offer a unique and valuable experience for their students and themselves with our performances and seminars.

3.5 Positioning For educators and parents alike who value education and positive experiences, The Players Theatre Company offers a self-esteem boosting, awareness-strengthening, and educational theatrical experience for

the children and the educators involved. Unlike the other companies in town, we focus our energies on education and self-growth for our pupils and audiences with innovative and informative productions and seminars.

3.6 Strategy Pyramid Strategy: Strengthen our relationship with school districts and other educational institutions that are our major supporters in funding and business. Tactics:

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Sample performances to gain notice. Connect with school administration. Contact and communication with audience members.

Programs to implement our tactics:

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Provide sample performances of popular texts for English and other Literature classes at local high

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schools during the months of September and October 1999. Free performances at the local folk festival in July 1999. Attend school board meetings for the rest of the school year. Introduce ourselves to the school district administration by performing at the fundraising gala in

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June. For every Sunday matinee, hold a seminar after the performance for interested audience members,

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beginning with the start of the next show in June 1999. Monthly mailings of informational brochures to area school districts and districts in other counties

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as well, starting June 1999. Opening night after-performance parties for cast and audience, inviting reviewers and other special audience members (ie. School representatives).

.0 Financials Right now, we perform three nights a week per a four-week run, which gives us a net sales (after production costs of approx. $1,000) of $7,400 per month. We expect to grow in audience by 50%, which will increase our sales by $4,200 per month.

4.1 Break-even Analysis The fixed costs are based on our monthly budget for a show, including production and promotional materials. The Average-Per-Unit revenue is based on what we receive per person, per month, i.e. ticket sales and seminar fees. The Average-Per-Unit Variable Cost is based on how much it costs us per person for each show and seminar.

Break-even Analysis

Break-even Analysis Break-even Analysis

Monthly Revenue Break-even

$1,017

Assumptions: Average Percent Variable Cost

13%

Estimated Monthly Fixed Cost

$1,000

4.2 Funding Forecast We are expecting sales of $94,500 for the year 2000 based on current earnings. With the expected growth of our audience, and in consequence our reputation, we expect to grow in audience by 50% and in individual and corporate sponsors by a total of 40%. The seminars are expected to grow 30%. The NEA government grant of $10,000 is budgeted over the year, and we are hoping to receive another grant for the following year.

Funding Monthly

Funding Forecast Funding Forecast FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

$94,500

$141,750

$153,090

$165,337

$178,564

$6,000

$7,200

$7,776

$8,398

$9,070

$100,500

$148,950

$160,866

$173,735

$187,634

Direct Cost of Funding

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

Ticket Sales

$12,000

$18,000

$27,000

$40,500

$60,750

$960

$1,152

$1,382

$1,659

$1,991

$12,960

$19,152

$28,382

$42,159

$62,741

Funding Ticket Sales Individual Sponsors Total Funding

Individual Sponsors Subtotal Cost of Funding 4.3 Expense Forecast

We have minimal fixed costs since a large part of our budget is based on cost per show. We are committed to spending $1,000 per show. This includes royalties, rent of performing space, printing of programs, posters and flyers, and production materials (wood, paint, costumes, etc.). Of that $1,000, we have allotted $80 for paper ads (newspaper, magazines and sometimes radio), and $50 for bulletins (posters and flyers). For our free performances, we usually have a production in progress so we already have a complete set, costumes and props to draw from. The only cost in this case is transportation for the company, rent of space (if necessary) and food. This is estimated at $100, taking into account that many of our free performances occur in parks with no fees or that we are invited to schools with no rental fees. The brochure mailings cost of $500 per month is probably a high estimation, but this program will be focusing on three different categories of our audience so it is worth it. These fees are separate from the production budget.

Monthly Expense Budget

Marketing Expense Budget Marketing Expense Budget FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

Paper ads

$840

$924

$1,016

$1,118

$1,230

Bulletins

$525

$600

$600

$600

$600

$6,000

$6,000

$6,000

$6,000

$6,000

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Total Funding and Marketing Expenses

$7,365

$7,524

$7,616

$7,718

$7,830

Percent of Funding

7.33%

5.05%

4.73%

4.44%

4.17%

Other

5.0 Controls This plan will go into action by June 1999. We want to see our growth progressing by comparing our monthend ticket sales with May. We want to connect with area and other county school districts, laying the groundwork for a Fall season of touring. We will discuss and monitor this growth with quarterly reviews of progress through year one.

5.1 Implementation The following table maps out our milestones for the programs we want to start implementing in June. The costs of the monthly mailings and opening night party are likely to change once they are implemented and we are able to effectively determine our costs. The programs that end in September may end earlier if they are successful in promoting our company and we have no need to continue them. Most likely we will continue with the Opening Night party to stay in touch with the desires and needs of our audience. All of our program managers are aware of the following milestones and are already working on implementation. We are determined to get all programs running by the first of June.

Milestones Milestones

Advertising

Start Date

End Date

Budget

Other

$0

Other

$0

Total Advertising Budget

$0

PR

Manager

Department

Start Date

End Date

Budget

Manager

Department

Sample performances for high school classes

9/1/1999

10/30/1999

$100

Camas

PR

Folk festival performance

7/1/1999

7/31/1999

$100

Kate

PR

Performance at Fundraising Gala

6/1/1999

6/30/1999

$100

Kate

PR

Sunday seminars

6/1/1999

9/1/1999

$150

Mark

PR

Opening Night Party

6/1/1999

9/1/1999

$1,500

Company Board

PR

Total PR Budget Direct Marketing Monthly mailings

$1,950 Start Date

End Date

Budget

Manager

Department

6/1/1999

9/1/1999

$1,500

Kenne

Direct

Manager

Department

Other

$0

Total Direct Marketing Budget Web Development

$1,500 Start Date

End Date

Budget

Other

$0

Other

$0

Total Web Development Budget

$0

Other Attend school board meetings

Start Date

End Date

Budget

Manager

Department

6/1/1999

12/30/1999

$0

Ceri

PR

Other

$0

Total Other Budget

$0

Totals

$3,450

5.2 Marketing Organization Our marketing organization consists of our board members: Ceri Gipson, Kate Lord, Mark Zolun, Kenne Sage, and Camas Davis. We have divided responsibilities based on skill. We have weekly meetings to discuss our progress and our budget. All issues are agreed upon fully before implementation.

5.3 Contingency Planning The worst-case scenario that we have to be prepared for is losing enough of our sales and funding that we have no marketing budget. In order to assure that we continue our marketing programs, we must establish relationships with local businesses (like City Copy, newspapers, Boyett catering) who in exchange for advertising in our programs and our referrals, we receive reduced rates or even free services from. This is possible because we are aware that other theatre companies have established the same relationships, and we have already established such a relationship with a local printing company. This "plan B" will at least allow us to keep up the minimum without much cost.