2 0 0 7 - 2 0 0 8 M a r k e t in g P l a n Target Market: Generation Y College Students
Benjamin Coy, Marketing Intern February-May 2007
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Table of Contents Purpose Executive Summary Situational Analysis Client Overview Competitor Analysis SWOT Analysis Current Market Summary Target Market Analysis Identification of Target Market Generation Y College Student Sub Segment Primary Market: Gen Y College Students Secondary: Gen Y Midland Residents Research Analysis Marketing Mix Product Price Place Promotion Marketing Objectives Goals Strategies Appendix A: References B: Blackboard C: Facebook Group D: Verge Rates E: Verge Calendar
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3 4 5 5 6 8 11 16 16 16 17 18 22 23 26 26 26 26 27 28 28 28 33 34 35 36 37 39
Purpose This marketing plan has been created to allow the Midland Center for the Arts (MCFTA) and its six resident groups to better promote their offerings to the extremely important Generation Y target market, specifically to the college students in the Tri-City area of Mid-Michigan. By doing this, MCFTA will be able to increase awareness and in turn increase the attendance of the target market.
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Executive Summary Midland Center for the Arts has a unique ability to showcase the arts to a variety of audiences through a single venue. With its six resident groups managed inhouse MCFTA is able to create a continuous cycle of offerings that keep audiences moving in the door. The current offerings, however, do not target the crucial 18-24 year old market, specifically the college students at the four major colleges located within just 30 miles from the venue. Northwood University, Saginaw Valley State University, Central Michigan University and Delta College have a total student body of approximately 50,000. This plan discusses how to reach these students and increase the awareness and in turn their attendance at MCFTA. The primary research in this report shows that college students are not coming in for two reasons. One, the product offering does not target them and two, when it does target them; they are uninformed about it because the mediums in which it is advertised do not hit them. The perception of MCFTA is then skewed due to these factors. To reach the college student target market, MCFTA must create a product offering which attracts them. Current work on creating a new brand within the MCFTA brand will allow for a change in the perception of MCFTA. Promotion and advertising of events must be focused towards this tech savvy crowd through the Internet. Social networking sites, MySpace and Facebook need to be used and promoted to drive traffic to the MCFTA website as well. Price discounts should be offered in order to cater to the needs of a low-income group. Offering a student rate shows them you care and they will feel they are getting a deal. A MCFTA “rewards” program can be implemented to make students return customers as well. Through the recommendations in this plan, steps can be made to reach the Generation Y College students in the Tri-City area. Their attendance is crucial to the future of MCFTA.
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Situational Analysis Client Overview Midland Center for the Arts embraces the idea that you can create as well as appreciate. "The Center helps to satisfy the creative drives that exist in all of us," noted Alden B. Dow. The Midland Center for the Arts building was designed by Alden Dow to promote the relationship between art and science. The offerings at Midland Center for the Arts are continuously changing. There are six resident groups that host multiple events and exhibits throughout a given year making it home to nearly 2,000 volunteers and tens of thousands of visitors from all across mid-Michigan every year. Each group is responsible for planning and implementing each performance or exhibit. They work with MCFTA Marketing and Development staff to develop a marketing and media strategy for each event. The resident groups are: !" Music Society !" Midland Symphony Orchestra !" Theatre Guild !" MATRIX: MIDLAND !" Alden B. Dow Museum of Science and Art !" Midland County Historical Society The Midland Center for the Arts is located at 1801 W. St. Andrews, Midland, Michigan. It is easily accessible to two highways, US-10 and MI-20. It is located near downtown Midland.
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Competitor Analysis In order to determine the competition for Midland Center for the Arts (MCFTA), an outline showing the characteristics a competitor must have. The marketing mix (Product, Place, Price and Promotion) must be similar in order to be a competitor. Below are six major competitors located in the same region and offering similar events or exhibits at a similar price. Dow Event Center “The Dow” is one of Midland Center for the Arts’ biggest competitor. Currently, the venue hosts an arena, a theatre and a hall. They are able to hold events from concerts to theatrical performances, tradeshows to conferences and conventions. Just the name alone makes this venue extremely recognizable, not only in the Tri-city area, but internationally as well. Dow Chemical Company bought the naming rights to the facility in 2004. Located less than 30 miles away from MCFTA, The Dow is competing for many of the same customers and has the ability to host many big name acts in addition to its OHL Hockey team, the Saginaw Spirit. Ticket prices for events at The Dow Event Center run very close to those of the Midland Center for the Arts performances making the buying power of potential customers similar for both venues. Coming in Fall 2007, The Dow will host the 2007-2008 Broadway Series in Saginaw. The performances will include Annie, Hairspray, The Producers, Ring of Fire and The Producers. These performances and others such as Joseph and the Amazing Technicolor Dreamcoat will take place in the Theatre at The Dow this year. These types of theatrical performances as well as musical concerts make The Dow a direct competitor due to its location, product offering and similar pricing. Flint Cultural Center The Flint Cultural Center Campus hosts a number of arts related institutions including: Sloan Museum, Buick Gallery & Research Center, Longway Planetarium, The Whiting, Flint Youth Theatre, Flint Institute of Arts and Flint Institute of Music (Home to Flint Symphony Orchestra) Much like MCFTA, Flint Cultural Center provides area residents with an array of cultural, scientific, and artistic experiences. Also, Flint Cultural Center is a community catalyst, working to strengthen widespread support for the arts, sciences and humanities. Tickets run close to the same rates as those of the MCFTA. A student rate is also offered. Some examples are below:
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Longway Planetarium: $5.00 General Admission (Adult) Sloan Museum: $6.00 General Admission (Adult) Flint Institute of Arts: $7.00 General Admission (Adults), $5.00 (Student Rate) The Whiting: $15.00-$59.00 depending on performance Temple Theatre Open since 1927, Temple Theatre is a Mid-Michigan entertainment icon. Located in Saginaw, MI, the Temple Theatre hosts concerts, movies, live performances and more. There is also a ballroom within the Temple Theatre that can be rented. Tickets for performances at the theatre run between $7.00 and $60.00 based on performance and seating. Soaring Eagle Casino & Resort Soaring Eagle offers a wide array of casino gaming and hosts an entertainment venue that continuously brings in big name acts from around the country. The Soaring Eagle Casino & Resort's Concert Hall opened in 1998 and has hosted over 200 concerts and events including Alice Cooper, George Jones, Brooks & Dunn, Ted Nugent, Bill Cosby, Tony Bennett and Martina McBride. Events and entertainment such as King of the Cage Martial Arts, the Soap Opera Festival and the Cruisin’ Car Show are also held at Soaring Eagle. Upcoming event ticket prices include: Soap Opera Festival: $20.00 Ciara: $25.00-$55.00 Fabulous Thunderbirds: $12.00-$25.00 Richard Lewis and John Blue: $15.00-$33.00 Godsmack: $55.00-$80.00 Daniel O’Donnell: $60.00-$85.00 King of the Cage: $30.00-$70.00 Ricky Skaggs, Marty Stuart and Del McCoury Band: $40.00-$55.00 Pit and Balcony Community Theatre The Pit and Balcony Community Theatre hosts performances musicals. Now celebrating its 75th Anniversary, the theatre is a staple in the Saginaw community. Upcoming performances include: The Wizard of Oz: $22.00 (Adult), $18.00 (Children $12 and under) Christmas My Way: $22.00 Picasso and the Lapin Agile: $18.00 Cabaret: $22.00 Broadway Bound: $18.00
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SWOT Analysis Strengths Unique offering: Midland Center for the Arts (MCFTA) hosts an array of offerings including professional programming, presentations, lectures, tours, exhibits, fairs, camps, workshops and film with arts, humanities and science focuses. MCFTA houses a diverse host of member groups including: Matrix: Midland Festival, Music Society, Midland Symphony Orchestra, Theatre Guild, Alden B. Dow Museum of Science and Art, and Midland County Historical Society. (mcfta.org) MCFTA has the ability to reach out to any target market. Location: Located near downtown Midland, MI, MCFTA is in the center of it all. It is located right off of both M-20 and US-10, making it easy to attract out of town visitors. Northwood University is located just 2.5 miles away. (Google maps), while Central Michigan University, Saginaw Valley State University, and Delta College are all within 30 miles. Recognition: MCFTA has been represented in the Midland Community for over 30 years. It is well known and is seen in a positive light. MCFTA is an active member in the Midland Chamber of Commerce and boasts positive relationships with major businesses, media and universities in the area. Weaknesses Slow adaptation to new trends/target markets: The biggest issue negatively affecting the Midland Center for the Arts is its inability to garner the attendance of the younger generations of customers. As shown in the Research Analysis section of this report, many college students do not know about MCFTA or they have a skewed perception of the offerings here. MCFTA must find ways to adapt to new trends and reach this critical market. Internet marketing: MCFTA’s presence online is currently very minimal. Though a website exists that is very informative, it is not easy to navigate. The site does not focus on the large Millennial target market at all. In addition, MCFTA’s paid advertising doesn’t stretch online to other sites other than MySpace profile’s that exist for only a few member groups. Member groups are all responsible for creating and updating their own profiles, which does not allow for continuity and they are not always up to date. Awareness: According to an online survey run on Zoomerang.com from March 27, 2007 – April 6, 2007, only 4 out of 33 (12%) survey participants claimed they were aware of events at MCFTA. Given a Likert scale and asked to select if they were Very Unaware, Unaware, Neutral, Aware and Very Aware. Going along with this, 39% of those surveyed have never been to the MCFTA and of those
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who have, most heard of the event through NU professors and friends. Of traditional mediums Internet and radio were listed as well. Perception: Students participating in the above Zoomerang.com survey were asked to give their impression of MCFTA. Of the 33 participants, 27% thought the MCFTA was outdated and focused at the elderly crowd. Cost: Ticket costs for many performances held at MCFTA are expensive. According to a focus group study on February 8, 2007 in which students were asked what type of performances they would like to see if they had “all the money in the world”, many responded that they do not have the money and they would attend more if they could afford it. According to the Zoomerang.com survey, 11% of students claimed they were unable to attend MCFTA as often as they would like because they could not afford it. Event and show offerings: Also, according to the above study, MCFTA programming does not do enough to bring in Generation Y and more specifically, college students. Some offerings that do appeal to this market are not offered at the right time to successfully reach them. Summer events don’t get these students because class is not in session. Opportunities Four Universities in close proximity: Northwood University, Central Michigan University, Saginaw Valley State University and Delta College are all located within 30 miles of MCFTA. This means that most students will have similar tastes and characteristics allowing a similar message to reach more students. This would give MCFTA a high return on its’ advertising investment. Verge: The year old tri-city entertainment guide is quickly gaining following providing information on “all things entertaining” to Generation Y. Verge has distributed free copies to Northwood University, Central Michigan University, Saginaw Valley State University, and Davenport University. The total distribution of over 20,000 every two weeks allowed for market penetration. The interactive website, OurVerge.com, is now averaging 250+ unique visitors and 2500+ page views per day. The site has a free online event calendar and also offers advertising from $50/month to $200/month. Great Lakes Loons: 2007 kicks off the Inaugural season for Midland’s new L.A. Dodger affiliated Minor League “A” baseball team. This is an opportunity because the team will bring in many out of town visitors from April to September. Many visitors will be looking for other events and happenings in Midland. MCFTA should take advantage of this new inflow of potential visitors as well as explore further partnership possibilities with the Loons. Internet Marketing: Generation Y is the most technologically savvy generation in history. They are always online and staying connected. There are multiple
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opportunities to reach this group via Internet marketing. The most cost effective route is through social networking sites, Myspace.com and Facebook.com. According to the Zoomerang.com survey of Northwood University students, 61% of participants said they spent more time online than using any other form of media. Myspace allows free creation of profiles. This has been done for most MCFTA member groups. The next step is towards up keeping them and gearing the content into the direction of Generation Y. Creating continuity between them is also necessary to promote the MCFTA brand. Facebook also allows for creation of free profiles. In addition, members are able to select different regional, school and business networks to be a part of. Members of the same networks can then network and access each other’s profiles online. Facebook also offers paid advertising in the form of “Flyers”. Event forms that come up in a users menu bar give information and also link to an event page where users are able to RSVP. These flyers can be targeted to selected networks and selected time frames. Northwood University: There is an untapped resource in the student body of Northwood University. These students can be used as the subject of surveys and focus groups at MCFTA. More importantly, allowing these students to utilize their education in marketing and advertising would build greater awareness of the offerings at MCFTA. Northwood University International Auto Show: NUIAS brings in around 55,000visitors every fall. This is an excellent opportunity for MCFTA to hold an event on the same weekend and partner with the show through promotion on site. Threats Great Lakes Loons: Although the addition of the Loons to Midland is listed as an “Opportunity” above, they can also be a threat to business. In this inaugural season, the Loons have captured the hype of the summer in Midland and surrounding areas. This can lead to MCFTA and others being overshadowed in the minds of potential consumers. It is possible that out of town visitors who know nothing about Midland’s offerings will come only for the baseball. This is why it is essential that MCFTA maintains a close working relationship with the Great Lakes Loons organization. Shrinking attendance: The perception of MCFTA by young people is that it is “outdated” and mostly for the “elder crowd”. As the older, more loyal customer base consistently dwindles it is necessary for younger people to become loyal visitors and ticket holders.
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Current Target Market This section breaks down the current market make-up of Midland residents. This characteristics of these residents are not the same as those of the members of the Generation Y Target Market that will be studied in this marketing plan. Demographics The following are the demographics for Midland County taken from the 2000 United States Census. Midland County City of Midland Total Population 82,874 41,685 Male (%) 49% 47.9% Female (%) 51% 52.1% Median Age (years) 36.3 36.2 0-5 yrs old 5,348 2,699 6-19 yrs old 19,390 9,533 20-64 yrs old 48,161 23,675 65+ yrs old 9,975 5,778 Midland County City of Midland Families 22,691 10,996 Persons per family 3.03 3.00 Households 31,772 16,743 Persons per household 2.56 2.42 Per Capita Income ($) 23,383 26,818 Per Family Income ($) 55,483 64,949 Psychographics Midland Residents The following are the top six categories in which a majority of the Midland population fits. There are 66 categories covering a vast amount of characteristics. The characteristics of most of the categories in which current Midlanders fit are similar in age and income levels as well as lifestyle traits. These categories are based on permanent residents of Midland and do not include the college students who live here on a non-permanent basis. They are found using the zip codes 48640 and 48642. This information available on Claritas.com using PRIZM NE program. 1. Big Sky Families (33*) Scattered in placid towns across the American heartland, Big Sky Families is a segment of young rural families who have turned high school educations and blue-collar jobs into busy, middle-class lifestyles. Residents like to play baseball, basketball and volleyball, besides going fishing, hunting and horseback riding. To entertain their sprawling families, they buy virtually every piece of sporting equipment on the market. - 11 -
2006 Statistics: US Households: 2,014,484 (1.79%) Median HH Income: $55,473 Lifestyle: Own a camper, go to auto races, North American Hunter magazine, Outdoor Life Network, Dodge Ram Demographics Traits: Ethnic Diversity: Mostly White Presence of Kids: HH w/Kids Age Ranges: Age 25-44 Education Levels: Some College Employment Levels: BC, Service, Mix Homeownership: Mostly Owners Urbanicity: Rural Income: Upper-Mid Income Producing Assets: Moderate 2. Mayberry-ville (37*) Like the old Andy Griffith Show set in a quaint picturesque berg, Mayberryville harks back to an old-fashioned way of life. In these small towns, middleclass couples and families like to fish and hunt during the day, and stay home and watch TV at night. With lucrative blue-collar jobs and moderately priced housing, residents use their discretionary cash to purchase boats, campers, motorcycles and pickup trucks 2006 Statistics: US Households: 2,794,581 (2.49%) Median HH Income: $53,563 Lifestyle: Eat at Lone Star Steakhouse, go hunting with a gun, Bassmaster magazine, Country Music TV, Chevy Silverado Demographics Traits: Ethnic Diversity: Mostly White Presence of Kids: HH w/o Kids Age Ranges:Age 35-54 Education Levels: High School Grad Employment Levels: BC, Service, Mix Homeownership: Mostly Owners Urbanicity: Town/Rural Income: Upper-Mid Income Producing Assets:Above Avg.
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3. Middleburg Managers (27*) Middleburg Managers arose when empty-nesters settled in satellite communities which offered a lower cost of living and more relaxed pace. Today, segment residents tend to be middle-class and over 45 years old, with solid managerial jobs and comfortable retirements. In their older homes, they enjoy reading, playing musical instruments, indoor gardening and refinishing furniture. 2006 Statistics: US Households: 2,079,047 (1.85%) Median HH Income: $49,468 Lifestyle: Play bingo, Do needlepoint, Saturday Evening Post, Hollywood Squares TV, Mercury Sable Demographics Traits: Ethnic Diversity: Mostly White Presence of Kids: HH w/o Kids Age Ranges:Age Age 45-64 Education Levels: Some College Employment Levels: White Collar, Mix Homeownership: Mostly Owners Urbanicity: Second City Income: Midscale Income Producing Assets:Above Avg. 4. Second City Elite (10*) There's money to be found in the nation's smaller cities, and you're most likely to find it in Second City Elite. The residents of these satellite cities tend to be prosperous executives who decorate their $200,000 homes with multiple computers, large-screen TV sets and an impressive collection of wines. With more than half holding college degrees, Second City Elite residents enjoy cultural activities--from reading books to attending theater and dance productions. 2006 Statistics: US Households: 1,324,339 (1.18%) Median HH Income: $74,375 Lifestyle: Order from Readers' Digest, Travel domestically by rail, Inc. magazine, Washington Week TV, Toyota Avalon
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Demographics Traits: Ethnic Diversity: Mostly White Presence of Kids: HH w/o Kids Age Ranges: Age 45-64 Education Levels: Graduate Plus Employment Levels: White Collar, Mix Homeownership: Mostly Owners Urbanicity: Second City Income: Upscale Income Producing Assets: Elite 5. Upward Bound (13*) More than any other segment, Upward Bound appears to be the home of those legendary Soccer Moms and Dads. In these small satellite cities, upperclass families boast dual incomes, college degrees and new split-levels and colonials. Residents of Upward Bound tend to be kid-obsessed, with heavy purchases of computers, action figures, dolls, board games, bicycles and camping equipment. 2006 Statistics: US Households: 1,793,920 (1.6%) Median HH Income: $80,345 Lifestyle: Take a skiing vacation, Go to the zoo, Family Fun magazine, Nickelodeon TV, Toyota Sequoia SUV Demographics Traits: Ethnic Diversity: White, Asian, Hispanic, Mix Presence of Kids: HH w/Kids Age Ranges: Age 35-54 Education Levels: College Grad Employment Levels: White Collar, Mix Homeownership: Mostly Owners Urbanicity: Second City Income: Upscale Income Producing Assets: Above Avg. 6. Brite Lites, Li’l City (12*) Not all of the America's chic sophisticates live in major metros. Brite Lights, Li'l City is a group of well-off, middle-aged couples settled in the nation's satellite cities. Residents of these typical DINK (double income, no kids) households have college educations, well-paying business and professional careers and swank homes filled with the latest technology.
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2006 Statistics: US Households: 1,684,994 (1.5%) Median HH Income: $69,380 Lifestyle: Go to college sports events, Eat at Bennigan's, Macworld magazine, Independent Film Channel, Volkswagen Passat Demographics Traits: Ethnic Diversity: White, Asian, Mix Presence of Kids: HH w/o Kids Age Ranges: Age 35-54 Education Levels: College Grad Employment Levels: Professional Homeownership: Mostly Owners Urbanicity: Second City Income: Upscale Income Producing Assets: Above Avg. It is extremely important to understand the current market psychographics and demographics of Midland, MI in full when marketing towards a new target market. As is explained in the Target Market section of this report, Generation Y is extremely valuable. Not only are the college students whom continuously cycle through Midland and surrounding cities essential, but building a relationship with the Generation Y residents of Midland is necessary to the future of Midland Center for the Arts. They are your future customer base. They are bigger than any customer base in history. (* )These numbers refer to the Claritas PRISM NE reference number available at www.claritas.com.
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Target Market Identification of the Target Market In order to illustrate the basis for this marketing strategy, the target markets are identified. The target market is Generation Y (a.k.a. Millennials). More specifically, the primary target market to reach is the College Student Segment. This segment consists of 18-24 year olds. Research has shown that this is a market not currently penetrated by the Midland Center for the Arts. It is a market that is if harnessed will have great benefits. A secondary market that can also be reached is the Generation Y Midland Resident segment. With similar psychographic tastes, this market can be reached through much of the same mediums as the college student sub-segment. Generation Y Typically, Generation Y (also known as Millennials) refers to anyone born between the years 1976 to 1997. They are the most researched and written about generation. This is the largest generation ever (80 million) and as such they are the most influential. Their sheer size means they are extremely important to every industry. They are especially important to the entertainment industry because the way they use media is extremely different from any previous generation’s members. They are tech savvy and passionate about everything electronic; usually to a point of obsession. They are the driving force in the digital world. They are web surfing, downloading, gaming, e-mailing, blogging, messaging, time-shifting, placeshifting and even producing their own content. Generation Y is described as idealistic, socially conscious, individualistic and anti-corporate. They are very unique with a set of characteristics and tastes unlike any group before them. They are extremely influential due to the segment’s size, trend setting role and influence on others due to their tendency to be “early adopters”. The spending power of college students is greater than in the past, and the newest youth market is significantly larger than the previous. Generation Y is three times the size of Generation X. By the year 2015 the campus population is expected to rise from the current 15 million students to 22 million. Things to consider when trying to reach the Millennial generation: !" Understand the Millennial mindset, meaning understand how they think. o They are confident, educated and well connected. !" Get a Millennial makeover, meaning target Millennial “hot buttons”. o They like to see things that are real. Don’t try to impress them with special effects and “smoke and mirrors” advertising. Overselling to college students will kill an advertising campaign. They will think - 16 -
you are trying to hide something if you don’t just give them the information straight. o They become loyal if they can trust you. Loyalty and rewards programs are received well with them. o You must have an Internet presence; social networking sites such as Myspace.com are valuable as well. !" Routinely analyze them. o Continuously survey and get their opinions. Doing this will allow them to trust you because they will feel that you value their opinions. College Student Segment !" College students make up for 14.1 million of the United States population. !" They spend $93 billion per year between them. !" Most importantly, this group is highly educated and will soon graduate and will become the next generation of big spenders. "College students are entry level to the upscale adult market. They are what everyone looks for: upscale, well-educated consumers.” This means that by targeting this group, marketers are planning and investing in their future. !" College is the time when brand loyalties are acquired. !" College students and Generations X and Y do not share the same characteristics. o College students and graduates are part of these segments but they are also a sub-segment within them. o Those who never attended college are more likely to already be married and have children. o More importantly, the college-educated are three times as likely to have a credit card and many times more likely to own a computer. o 45% of all Internet users are between the ages of 18 and 26. !" Marketers must be careful not to try and be like the students. They just need to focus on what is relevant to them. !" The most important thing to know is that the best way to reach college students is not through the general media formats. o You must go to them, to their networks and their environment. !" College papers, websites (Facebook, Myspace) college radio stations are more likely to get a response than other TV or radio advertisements. !" A great way to reach them is by coming directly to them. !" Ex. Sponsor an on campus event !" Don’t give away something for nothing. o It’s easy to give something away but get information from them so you can continue to contact them and build a relationship with them. o They are most receptive when you keep up communications as they are going to be even more important to you when they graduate. - 17 -
Primary Market: Generation Y College Students Geographics The marketing strategies presented should be focused on students at the four colleges located within 30 miles of the Midland Center for the Arts. The main focus will be on Northwood University. Northwood is located in Midland, MI and has an undergraduate student body of approximately 2000 students. The other three colleges in the area to focus on are Saginaw Valley State University in Saginaw, MI; Central Michigan University in Mount Pleasant, MI and Delta College in University Center, MI. Demographics Northwood University Northwood University contains a total 3,577 undergraduate students. This number includes the University College branch of Northwood. Because these are not traditional undergraduate students and most fall into an older demographic, we will not be focusing on these students and instead will only focus on the 1,926 enrolled on the Midland, MI campus. 60% of this student population is male, while 40% are female. Below is a breakdown of the Student Body as of Fall 2005.
http://www.collegetoolkit.com/Colleges/Overview/171492.aspx - 18 -
Saginaw Valley State University The current undergraduate student body at SVSU contains 7,931 students. Below is a breakdown of the student body demographics as of Fall 2005.
http://www.collegetoolkit.com/Colleges/Overview/172051.aspx
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Central Michigan University Central Michigan University has an enrollment of 27, 452 students. Of these, 20,025 live on campus and 7,075 live off campus. (www.cmich.edu) Here is a breakdown of the CMU student body demographics as of 2005.
http://www.collegetoolkit.com/Colleges/Overview/169248.aspx
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Delta College Delta College has an enrollment of 10,118 students. According to Delta.edu, “Students differ considerably in their ethnic, social, and economic backgrounds and their educational goals. Most students (85.1%) reside in the tri-county district and more students are enrolled on a part-time basis than those attending fulltime because most students are also working full or part-time”. Here is a breakdown of age, gender, residency and ethnic backgrounds for Delta students. Student Age Distribution
%
19 years old and under 32.6% 20-24
33.8%
25-29
11.5%
30-44
16.5%
45 and over
Other Michigan Counties Out of State Caucasian
Gender 56.8%
Males
43.2%
Geographic Residences Saginaw County
41.9 %
Bay County
28.2 %
Midland County
15.0
0.2%
Ethnic Backgrounds
5.5%
Females
14.6 %
82.6%
African-American
7.1%
Hispanic
4.0%
Not Designated
2.0%
Multi-racial
2.0%
Asian
0.8%
Native American
0.6%
International 0.7% Figures based on Fall Semester 2005
http://www.delta.edu/catalog/ProfileofOurStudents.asp Psychographics Psychographic variable are any attributes that relate to personality, values, attitudes, interests or lifestyles. Students at the four schools above share typical college lifestyle traits with those in schools across the United States. As mentioned above college students are early adopters, tech savvy and outspoken. College students are well informed. According to a 2003 collaborative study by Harris Interactive and 360 Youth, 88% of college students own their own computers and according to a 2002 Pew Internet study, 47% of college students began using the internet before college and 20% used the internet as early as age 5. The Internet is a part of the life of a college student. They make it a part of a daily routine and generally have not known life without computers. (http://www.clickz.com/showPage.html?page=1583871)
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Below is a breakdown of the results of an online study of Northwood University Students. Based on the study an overwhelming 61% said they use the Internet for information more than any other media on an average week. Media Usage (Average Week)
13%
Listen to Radio Read Newspaper Watch Television Read Magazines Surf the Internet
10% 61%
17% 3%
College students have a high discretionary income, however, they have learned to spend their money wisely. The group was responsible for $210 billion in sales in 2002. According to the Harris Poll, 41% of freshman and 79% of seniors had credit cards. The graph below shows that a significant amount of the credit charges are on entertainment. The Northwood study echoed these results. That study will be explained in the Research section of this report. Spending on Entertainment
Travel Movies Music Concerts Amusement Parks Pro Sporting Events
Secondary Market: Generation Y Midland Residents Generation Y residents in Midland will be reachable through the efforts of this marketing plan. They have many similarities to the college students in the primary market because they are both Generation Y. Most importantly, they are early adopters and because they live in Midland, MI their loyalty for MCFTA is extremely important. They are MCFTA’s future.
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Research Analysis The following is an analysis of primary research conducted on Northwood University students. The first study, a focus group brought in on February 8, 2007 focused on the students opinions of MCFTA’s website, mcfta.org. The second is an online survey discussed earlier in this report. 33 participants were asked a series of questions involving their residency, activities they participate in, media usage and awareness of events in the Tri-cities and specifically at MCFTA. Northwood University Focus Group Here is a breakdown of the focus group participants’ thoughts on the MCFTA.org website: MCFTA.org Likes:
!" !" !"
Easy Navigation Lots of Information Online ticket sales
Dislikes:
!" !" !"
Too cluttered, nothing stands out No “Feedback”, “Search” or “FAQ” options No focus on young adults
Areas of Interest:
!" !" !" !" !" !" !"
Comedy Concerts/Bands Theatre Backstage Paintings Dance Education/Workshops
Also, when asked if they “had all the money in the world”, the 27 participants suggested more comedy, specifically a stand-up entertainer. They also suggested up and coming artists such as those from American Idol or bands on the way up that are not necessarily well known. Of theatrical performances, the participants wanted to see more comedy, action-packed, or Broadway performances. They want to see well-known titles. Another comment that came up for this question was that college students do not have “all the money in the world” and therefore, they would like to see some type of student discount.
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Zoomerang.com Online Survey The following data was collected from 33 Northwood University students participating in an online survey between the dates of March 27 and April 5, 2007. 1. Gender Male Female Total
12 36% 21 64% 33 100%
2. Class Freshman Sophomore Junior Senior Total
1 3% 11 33% 8 24% 13 39% 33 100%
3. Residence On Campus Off Campus Total
14 45% 17 55% 33 100%
Freshman Sophomore Junior Senior
Bars
4. Activities Bars Attend Sports Play Sports Outdoors Museums Casino Movies Plays/Musicals Concerts Other
Attend Sports
14 19 9 20 7 4 29 11 11 6
Play Sports
42% 58% 27% 61% 21% 12% 88% 33% 33% 18%
Outdoors Museums Casino Movies Plays/Musicals Concerts Other
5. Media used rankings (# / % of total responses) Media 1 2 3 4 5 Radio 4/13% 8/27% 9/30% 5/17% 4/13% Newspaper 3/10% 1/3% 2/7% 9/30% 15/50% TV 5/17% 7/23% 12/40% 2/7% 4/13% Magazines 1/3% 6/18% 10/30% 9/27% 7/21% Internet 20/61% 9/27% 0/0% 4/12% 0/0%
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Radio Newspaper TV Magazines Internet
These next two charts show the participants’ awareness of events and entertainment in the Tri-city area and their awareness of events and entertainment at MCFTA. The results are very similar, with both showing that Northwood Students are not very aware of events in the Tri-Cities or at the MCFTA. 6. Awareness (Tri-city) Very Unaware 2 Unaware 12 Neutral 13 Aware 6 Very Aware 0 Total 33
6% 36% 39% 18% 0% 100%
7. Awareness (MCFTA) Very Unaware 5 Unaware 12 Neutral 12 Aware 4 Very Aware 0 Total 33
15% 36% 36% 12% 0% 100%
Very Unaware Unaware Neutral Aware Very Aware
Very Unaware Unaware Neutral Aware Very Aware
The following results pertain to questions regarding how many shows/exhibits attended by survey participants and how they were informed about the show if they did attend. 8. Events attended at MCFTA Never 13 39% 1-3 Events 17 52% 4+ Events 3 9% Total 33 100%
20 15 10 5 0 Never
9. Attended 1+, how informed 4% Radio Ad 1 TV Ad 0 0% Newspaper Ad 1 4% MCFTA.org 2 8% Other site 2 8% Friend 9 38% Employee 0 0% Other 9 38% Total 24 100%
1-3 Events
4+ Events
Radio Ad TV Ad Newspaper Ad MCFTA.org Other site Friend Employee Other
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Marketing Mix Product In order for Midland Center for the Arts to establish itself as an entertainment venue for college students in the Tri-cities, it is vital that we offer this 18-24 year old market what they want. As shown in our research, college students are looking for edgier performances involving comedy and action. When asked what type of concert they would most like to see at MCFTA, survey participants ranked alternative rock first followed by country and pop. Although MCFTA has the strength of being able to offer a variety of acts and genres, the perception of MCFTA among college students is still that it is a place for older, Midland residents and even that they are not very welcome. Creating an offering that puts less emphasis on the MCFTA brand and more emphasis on a more edgy, millennial focused brand is ideal. Following through with the “Underground” brand is perfect positioning. It is, however, important not to create this brand and try to be like the students or act “hip”. This will turn them off immediately. Go to them on their level with a product offering they want. It can’t be overdone or else it won’t be accepted. As displayed throughout all of Generation Y, college students are individualistic and have a desire to be cultured. The experience is equally as important as the product offering itself. Price Cost is one of the biggest factors college students consider. With limited incomes, something must be affordable before many will even consider it. This being so, it is imperative that MCFTA offers a student rate for events and admissions. This makes MCFTA more affordable and even if it is not much of a discount, college students will feel they are getting a deal. As explained in the Target Market Analysis, reward programs are extremely well liked by college students. This is something MCFTA should consider implementing in the future as a way to drive in more traffic from the college market and to track them and the programs they attend. Place Selecting mediums that will reach the target market is most important. Television, radio and other traditional mediums are expensive and are not as effective with this current target market. They should continue to be used because they reach other markets, however. - 26 -
Internet is the main medium that needs to be used in reaching this target market. Traditional mediums do not work as well because one; they contain a lot of clutter which is tough to break through and by focusing the advertising in the website, we can easily direct traffic to the MCFTA.org site as well as the MySpace and Facebook pages. It is much easier for our consumers to look back on Internet advertising for information as well. This is something that can’t be done through television and radio. Internet advertising is very cost effective. The strategies in this plan are low cost and are very specific to the target market they intend to reach, Tri-City area college students. Promotion Promotional Blend Creating a promotional blend that maximizes reach and impact on the target market means MCFTA needs to tailor to the wants and needs of their consumers, in this case college students. It is also important to consider the current return customers and members who attend MCFTA when implementing any advertising or promotional efforts. It is, however, necessary to make big changes and take risks when reaching out to this demographic. Advertising As stated earlier, broadcast media will not be a part of this promotional blend. Radio and television, while having the largest audiences overall, do not reach the market well. Radio is not popular with the target market, with most choosing to listen to compact discs, satellite radio (which is mostly commercial free) and mp3 players. Television is expensive and the minimal advertising time that is purchased for the market is highly inefficient when trying to reach this target market. The clutter on both of these mediums is tough to break through without an extremely high frequency of hits on members of the target market. Print advertising should also be used minimally, with focus only on the Tri-City Entertainment guide, Verge, which is targeted at the Generation Y members. Out-of-home advertising should be implemented on a low level with reach to all college campuses through posters in high-traffic areas, classrooms and computer labs. These are simple, cost effective ways to build top-of-mind awareness. Sales Promotions Sales promotions are important to complete the marketing mix. Free give-aways allow students to keep items that inform and excite them about offerings from MCFTA. A simple themed give-away showing the MCFTA web address can build top-of-mind awareness for a low cost.
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Marketing Objectives Midland Center for the Arts has two main problems that make it necessary to pay attention to marketing to college students. The awareness of MCFTA’s very existence is extremely low with this market. The attendance of the college students is also very low due to this fact and also due to other causes such as image and cost. This marketing plan will utilize the strengths, weaknesses, opportunities and threats given in this report to achieve the following goals. Goals Increase college student awareness of MCFTA Increase college student attendance at all resident group events and exhibits Strategies Make Contact We must initiate methods to create top of mind awareness within the college student community. This must be done by going to the students and building a presence on their level. Contact should be made with students from day one, at freshman orientation and continue with other on-campus contacts and events. This can be down through simple flyers in orientation packets and posters. A good way to get these freshmen interested would be to give them a free ticket to an event or to MCFTA in general. Remember, the new students have zero knowledge of MCFTA. If they like it before they hear negative things about it being for the elderly crowd, they will be able to make up their own mind about the offerings here. Face-to-face interaction is key to increasing the awareness and more importantly the attendance of college students in the Tri-city area. MCFTA must develop a presence on campuses and a way to do that for college students is through promotions such as student discounts, ticket and prize give-aways and performer interaction. Offering sneak preview performances or meet and greets with performers on campuses will raise interest for the actual event. Student Organizations Every college campus has multiple student organizations from fraternities and sororities to professional clubs to sports teams. Reaching out to these organizations and allowing them group rates will draw more students and allow them to experience the MCFTA and its’ offerings.
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Rewards Program To increase retention of college students at MCFTA, a rewards program should be implemented. This could be implemented as a simple punch card system which allows card holders to receive free admission after a certain number of paid admissions or a number of other give-aways or ticket offerings. Eventually, the program could be turned into a barcode or swipe card type programs offering the same types of prizes and discounts on a larger scale. This system will also allow cardholders to be tracked and information about them and their attendance to be kept in a database. This can be used for research into what types of product offerings, college students receive better than others and how to market better towards them. Get Online University Internal Communications (Blackboard) Reaching current students must also be done on their level. As stated earlier, college students are always online and most of them own their own computers. Reaching them through this medium is top priority. Northwood University communicates on the Blackboard Academic Suite networking program. This program allows posting of events both on and off-campus and reaches all students; as it is the central login page for student e-mails, class information and student organization information. A screenshot of the Northwood University Blackboard, My.Northwood.edu, can be seen in Appendix B. Facebook In addition to Blackboard, all schools are featured on the social networking site, Facebook.com. Originally created for only college students, this site now has network segmentation for high schools, businesses and regions. Group profiles can be created for free and allow an easy way for our primary market to learn about MCFTA and its’ offerings. The recently created MCFTA Facebook group can be seen in the Appendix C. Facebook also offers advertising through “Facebook Flyers”. With these, MCFTA can display basic information along with a picture, for a very low cost and a high, pinpointed reach. The table below breaks down the costs for flyers targeted at each of the four colleges included in this marketing plan. All flyers are shown per day. Campaigns can be run for up to 30 days.
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Central Michigan Flyers Cost ($) 2500 5 5000 10 7500 15 10000 20 12500 25 15000 30 17500 35 20000 40 22500 45 25000 50 27500 55 30000 60 32500 65 35000 70 37500 75 40000 80 42500 85 45000 90
Saginaw Valley Flyers Cost ($) 2500 5 5000 10 7500 15 10000 20 12500 25 Delta College Flyers Cost ($) 2500 5 5000 10 7500 15 Northwood Flyers Cost ($) <10000* 5 *There are not enough people at NU to guarantee 10,000 flyers per day.
MySpace MySpace.com, another highly used online networking site, is also a necessary means of reaching the primary target market. MySpace profiles have been created for the following resident groups and programs: !" !" !" !" !" !"
Alden B. Dow Museum of Science and Art Music Society/Theatre Guild Midland Symphony Orchestra Matrix: Midland Music Society Choral The Show
The next step is to communicate the existence of these pages. This needs to be done through mcfta.org, as well as placement on promotional materials. College students must be aware the MySpace profiles exist to access them. These pages must be continually updated to keep viewers coming back. Changes to create more continuity between profiles should also be considered as it allows for better recognition of the MCFTA brand as a whole. Interactive content such as music and videos when applicable are a must as well.
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Verge Another way to penetrate the tri-city college market is through Midland Daily News’ Verge. Originally a publication freely distributed alongside the Midland Daily News, Verge has now chosen to “give the readers what they want” and put more emphasis towards their website, OurVerge.com. It will be updated more regularly with information about local artists, happening places and events and interesting people. An outline of the current ad rates for OurVerge.com can be seen in Appendix D. Online ads are very cost effective ranging from $50-$250 per month depending on size and placement of the ad. In addition to the paid advertising, Verge also offers a free online calendar. Anyone is able to insert events on the calendar. A screen shot of this free calendar is shown in Appendix E. The print side of Verge will be a one-two page section of the Midland Daily News on Fridays. Direct campus presence will no longer exist at this time; however, post-summer arrangements with universities will be regained. The total distribution to universities was over 20,000 issues every two weeks this past year and Verge would like to continue to penetrate that market in the future and drive them to their website. MCFTA should be on board. Focus Groups Bringing in university students to check out MCFTA’s offerings is a great way to build awareness and attendance for two reasons. It brings them directly to MCFTA and shows them what it has to offer without making them worry about costs. The students’ opinions are used making them more loyal to the center because they feel they had input in MCFTA’s success. Being valued was one of the key points to gain loyalty with Generation Y. This method should continue to be used to build working relationships with the universities and their students, specifically but not limited to Northwood University. The next step in this process to make it more effective is to run more of these focus groups and gear each towards a specific aspect of MCFTA. For instance, bringing in students in interior design and architecture programs to give input on how to liven up the interior and exterior of the building will give new perspective on how to make MCFTA more appealing to the college students in our primary target market. Bringing in students to see a performance by one or more of the MCFTA member groups will also give better perspective on what product offerings are most appealing to college students. Allowing marketing and advertising students to give their opinions on the MCFTA website, MySpace pages and other traditional media pieces will allow for an outsider perspective on current marketing efforts.
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Focus groups are used to gain input from members of a particular target market, however, they are always used to create a perception in a particular target market and give that perception a base in which to spread from. Creating the right image for focus group participants allows them to spread their experiences through word-of-mouth.
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Appendix
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Appendix A: References Generation Y/College Students: Marx, Wendy. (1995, September). Marketing 101. Management Review Volume 84 Pgs40-43. Retrieved February 9, 2007 from (http://newfirstsearch.oclc.org/WebZ/FSPrefs?entityjsdetect=:javascript=true:scre ensize=large:sessionid=fsapp2-47012-eydjkv2e-kr5brk:entitypagenum=1:0) Mumford, David E. (2006, November 13-20). Make a Connection with TechSavvy Millennials. TelevisionWeek Volume 25, Issue 43. Page 11. Retrieved February 9, 2007 from (http://newfirstsearch.oclc.org/WebZ/FSPrefs?entityjsdetect=:javascript=true:scre ensize=large:sessionid=fsapp2-47012-eydjkv2e-kr5brk:entitypagenum=1:0) Pokrywczynski, James & Wolburg, Joyce M. (2001). A Psychographic Analysis of Generation Y College Students. Journal of Advertising Research, Volume 41, Issue 5. Retrieved February 9, 2007 from (http://www.questia.com/PM.qst?a=o&d=5000936081&er=deny) Demographics: CMU Info http://www.collegetoolkit.com/Colleges/Overview/169248.aspx Delta Info www.delta.edu NU Info http://www.collegetoolkit.com/Colleges/Overview/171492.aspx http://www.northwood.edu/mi/aboutus/fastfacts/default.asp SVSU Info http://www.collegetoolkit.com/Colleges/Overview/172051.aspx
Psychographics: http://www.clickz.com/showPage.html?page=1583871 http://www.claritas.com/MyBestSegments/Default.jsp?ID=20
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Appendix B: My.Northwood.edu
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Appendix C: Facebook Group
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Appendix D: OurVerge.com Ad Rates ourverge.com focuses on all things entertainment, popular features, and weekly updates. Our homepage is an essential portal into the local Tri-City arts, entertainment, and issues. The Verge Calendar is a community listing of what is happening around the Tri-Cities. Verge Radio showcases artists of diverse genres. The Verge Classifieds are a complete online marketplace for house and apartment rentals, autos, music, and more.
Ad Rates Type Leaderboard Banner Baseboard Banner Tower Skyscraper Square Tile Calendar Classified Section Sponsor
Average Monthly Views
Size
468 pixels x 60 40,000 pixels 468 pixels x 60 40,000 pixels 120 pixels x 600 40,000 pixels 120 pixels x 120 40,000 pixels Personalized 6,000 Calendar 468 pixels x 60 1,000 pixels Above prices include FREE ad design 10% off with a 12-month commitment
Cost $200 / month $100 / month $250 / month $100 / month $300 / 6 months $50 / month
Ad Specifications We can accept static or animated gifs or jpegs; we can accept flash files and rich media if accompanied by a back-up gif or jpeg. Maximum file size: 40k. E-mail your ad to your sales representative or to
[email protected] along with the URL link for the ad. The ourverge.com experienced design staff is happy to design your ad for you. Please allow one week for production and approval time before it can be posted online.
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Hybrid Advertising: Online + Print ourverge.com readers also read the print edition Advertisers can increase the reach and frequency of their ad impressions with simultaneous print advertising. Reach our total audience with the combination of ourverge.com and Verge. For advertising and rate information please contact the advertising department at
[email protected] or call (989) 839-4222.
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Appendix E: Verge Calendar
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