Concert Promotions Company
BUSINESS PLAN
•
EXECUTIVE SUMMARY
•
COMPANY SUMMARY
•
PROMOTIONAL SERVICES
•
MARKET ANALYS IS SUMMARY
•
STRATEGY
•
MANAGEMENT SUMMARY
•
FINANCIAL PLAN
•
APPENDIX
EXECUTIVE SUMMARY
Good Vibrations, Inc. (GVI), is a home-based concert promoting corporation,
located at 145 Mueller Avenue, Suite 13, Lansing, Michigan. This business plan
was developed for the purpose of applying for a business loan in the amount of
$19,550. The start-up costs for this business are $29,550. The owner's equity
is $10,000. Projected sales for 2002 alone are $377,250 and our projected
profits are over $147,000.
GVI's keys to success include: implementing an effective cash flow
plan, communicating with our customers and clients regularly, and targeting our
most ready-to-buy customers or clients first.
The business of concert promotions, as shown in our plan, has an
excellent profitability level and growth rate. Our competitive edge along with
new promotion techniques puts GVI in the forefront of promotional services. We are
living in an age where more and more new talent is being introduced into the
concert mainstream. Our concert promotion services will differ from the
traditional concert promoters because of our added personal touch. The
highlights of our business plan are shown below.
Objectives
Our objectives for the business are to:
•
Sell 80 percent to 90 percent of an arena's
capacity per concert
•
Host at least 10-20 concerts a year
•
Create an ongoing relationship between GVI, the
artist, and the concert attendees that will continue
throughout each year
Mission
Our mission is to provide the best and most unique quality of
entertainment that the music industry has to offer to our concert attendees.
Also, to meet the artists' performance needs with professionalism and expertise.
We will establish an excellent business relationship with each arena facility
owner so that the event is profitable to all parties involved.
Effective Facets of Promotions
RESEARCH:
Always ask questions, gather information, meet people, and learn
more about our market.
QUANTITY:
We must do everything we can to let all potential attendees know of
an event. Many avenues must be pursued to make sure no stone is left unturned
in terms of promotion.
FREQUENCY & DISTRIBUTION:
If we wait until the last six days before an event to bombard the
market, it is too late. People plan their "free time" weeks and
months ahead. We must give our audience plenty of advance notice.
12 Keys to Outstanding Success
Below are 12 key marketing ingredients that we will apply to make
significant growth almost straight away. They are as follows:
1.
Understand that marketing our business provides
the ultimate return on our money. Work "on" our business, not
"in" it.
2.
Only use direct-response marketing, not
"institutional."
3.
Communicate with our customers and clients
regularly.
4.
Run simple low-cost, or no-cost tests on every
aspect of marketing to find our biggest sales appeal.
5.
Target our most ready-to-buy customers or
clients first.
6.
Create a systematic, high profit back end.
7.
Always reverse the risk our customers feel
before they buy.
8.
Give our reasons why our sponsoring of events
will benefit, add value, and solve problems for the client.
9.
Always include testimonials or endorsements in
all our marketing.
10.
Always think in terms of the customer or
client's "What's in it for me?" question.
11
.Implementing an effective cash flow plan.
12.Achieving efficiency.
COMPANY SUMMARY
Good Vibrations, Inc., is a home-based
corporation located at 145 Mueller Avenue, Suite 13, Lansing, Michigan. Our present
office is small but is in a room of its own to keep our home and work lives
separate. Our office will contain bookshelves, file cabinet, desk with
computer, sitting chairs, a fax, a copier, and space for a small waiting area.
Company Ownership
Good Vibrations, Inc., is a corporation, owned by its principal
investor and operator, Roland Wilson.
Operations
Roland's plan is to be home-based for the period of three years
after which he will seek the use of an office/hall building for his offices.
GVI's regular business hours will run from 12:00 noon until 9:00 P.M., Monday
through Friday. On Saturdays or concert days the hours will vary. Most of the
business will be handled at our home office. As other business warrants, we
will use hotel facilities and clients' offices for the larger more in- depth
meetings.
The process of promoting a concert will begin with:
1.
Choosing a date, artists, and location
2.
Project expenses
3.
Project sponsorships needed
4.
Project ticket sales
5.
If concert selection is feasible, begin concert
promotion schedule
Start-up Summary
Total start-up expenses (including legal costs, advertising and
promotions, stationery, and related expenses) come to $29,550. Start-up assets
required include $2,000 in short-term assets (office furniture, etc.) and
$10,000 in initial cash to handle the first few months of operations as sales
play through the cash flow. The details are included in the following chart.
Start-up Plan Start-up Expenses
li-j.d and Accounting Expenses S5GO
Stationery, etc. $300
Broetiures anti PremMional Items
S3.150 Consultants S 1.000
ln<atnmce $500
Office lumilure S2.000
Research and Development S 1.000
Legal and Accounting Expenses Stationery, etc.
Brochures and Promotional Items Consultants Insurance Office
Furniture Research and Development
PROMOTIONAL SERVICES
GVI will offer the following
promotional services to our clients:
•
Distribute Public Service Announcements
•
Purchase Radio Ads
•
Purchase Newspaper Ads
•
Offer Bulletin Announcements, Newsletters, and
Personal Letters
•
Print Bulletin Inserts/Flyers
•
Submit Concert Information to the Press
•
Display Posters
•
Provide Press Kits
•
Setup Telephone Interviews with Local Radio
Stations
•
Handle Merchandising of T-shirts, Posters, CDs,
etc.
•
Provide Lodging and Transportation
•
Setup Facility and Site Selection
•
Provide Food and Beverages for Artist
•
Handle Technical Specifications, including
Sound, System Needs, Lighting Needs, etc.
Promotional Strategies
We will use several types of
promotional strategies for our events, but the majority of our market will be
reached by radio.
Media
Profile/Demographies
1.
WWCK 105.5 FM —265,000 listeners per day and, through the use of repeater
facilities, are a major presence in the radio market throughout south central
Michigan. Market: Lansing is the 16th ranked radio metro in the U.S. 42.9
percent of the adult 25+ population has at least some college education.
Lansing metro retail sales total $5.4 billion per year. 95 percent of metro
residents drive to work.
2. WDZZ 92.7 FM —100,000+ listeners per day. Target audience 92.7 3,000 watts 18- 54
age group. #1 Urban Adult Contemporary alternative work station reaching adults
of all ages. Is #1 in reaching our core audience of 18-34 urban listeners.
We will also use Print Media,
Television, Online Information Services, Posters, Banners, and Event Programs.
Print Media (advertisements placed):
•
Major Newspapers: Oakland
Press, Saginaw News, Detroit News, Detroit Free Press, Grand Rapids Press,
Lansing State Journal, Ann Arbor News, Bay City Times, Kalamazoo Gazette,
Chicago Tribune, Saturday Star (Ontario Edition).
•
Music Magazines: Current
Magazine, Jam Rag, Metro Times, Orbit, Between the Lines, Music Review
Magazine, The Buzz! News, Real Detroit, Repeat the Beat, Mirror, BPM Culture,
DJ, Revolution, DJ
Times.
In addition to advertisements placed, five waves of press releases
with follow-up issued to 250 local newspapers and other periodicals in
Michigan, Ohio, Illinois, Indiana, Wisconsin, and Windsor, Canada, listing
supporting company as a major sponsor of the event.
Television
• Five waves of press releases with follow-up issued to 60 television
stations in Michigan, Ohio, Illinois, Indiana, Wisconsin, and Windsor, Canada,
listing supporting company as a major sponsor of the event.
Online Information Services
• Five waves of press releases with follow-up issued to over 2000
international magazines, newspapers, and major music/information sites.
Third-party sponsoring will be made available to supporting company where
suitable in posting company's banners on major websites.
Posters
•
Logo inclusion on 2000 11' x 17' three-color
posters regionally distributed.
Banners
• Sponsor's banners prominently displayed at major traffic flow
points. Banners will be prominently displayed at the entrance to the event,
Major sponsors will have their banners on stage either across the front or as a
backdrop behind the entertainers.
Event Program
• Prominent logo inclusion in 10,000 copies of the official program
for the Good Vibes Explosion 2002 and listing of supporting company as a
categorized sponsor.
Dealing with Local Media
We will use the following methods in
dealing with the media.
Create our own cover letter on our organization. Thank them for
their time and commitment to working for the community to keep them informed of
special programs. Make it personal and warm. Build an ongoing relationship.
Deliver the Press Kit in person if possible. Both the fact sheet and
release should be in the hands of media representatives two to three weeks
before the concert date, to accommodate deadlines and schedules, and facilitate
coverage. But even if we don't make the deadlines for the concert, we will
submit the information and make contact with editors and assignment desks to
keep them aware that our ongoing events for the community through concerts and
programs will enrich the community.
The Press Kit includes the following:
1.
A Black and White Publicity Photo of the Artists
(make sure we know how many to send).
2.
Artist Fact Sheet. This has generic information
about the artist.
3. News Release for Concert Night. The release is only intended to
supply generic information for local communicators to build on. All details
that the public needs to know in order to be aware of the event and consider
attending should be in the local release. Always doublecheck to be sure that
the information on how media people can reach us for questions or interview
requests is clearly displayed. An important thing: Our office has clearly
identified on the news release who media representatives should contact for
information about our concert. If this information is not accurate please
correct the contact persons name and daytime phone number before sending it to
the media.
4. Sample Community Bulletin Board Announcement and/or PSA. Since
formats of these vary widely, adapt the sample to suit requirements.
Media Contact Tips
Media Contacts: If we have not contacted local editors and news
directors for previous events in our community, now is the time! Call for an
appointment. If an in-person meeting is not possible, ask to speak on the phone
or ask if they want to suggest a more convenient time to call back. Personal
contact is extremely helpful in getting coverage.
Accompany your release by a call before or after it is received, or
arrange an appointment so we can present it in person. In our contacts with
local media, make it clear that concerts such as this one held at our local
arenas are planned as an enrichment event to the community at large and that
the community is invited, without a charge. Some news people assume events are
for paying attendees only, so your casual mentions about the fact that the
whole county is invited may be helpful in getting coverage.
Invite the editor or news director to attend the concert,
underscoring its community-wide aspect, and the fact that you believe it will
be a very special event.
MARKET ANALYSIS SUMMARY
Good Vibrations is focusing on four target audience groups that are
of all racial backgrounds. The men's and women's age groups are:
1.
18-24
2.
25-34
3.
35-44
4. 45-54
Our marketing survey has revealed that, on average, approximately
two thirds of concert attendees are female and one third are male. According to
the U.S. Census Bureau, Census 2000, these people are between the ages of 18-54
who possess disposable incomes of $10,000- $40,000. According to Arbitron, most
are employed with high school diplomas and 57.8 percent have some college
education.
According to the Lansing Area Chamber of Commerce the year round
population for Ingham County is 436,000 and 125,000 for the city of Lansing.
According to Arbitron the median annual household income is $42,784 and median
home value is $50,500.
Lansing Area
Access/Restaurant/Tours/Traffic Flows
•
Immediately adjacent to the Lansing IMA Arena is
1-69 which sees over 25,000 cars pass by each day according to the Lansing Area
Chamber of Commerce.
•
The IMA has the convenience of being within 100
minutes of at least four major state universities, theree major concert arenas,
and the State Capitol.
•
With the intersection of 1-496 and 1-69 in
Lansing, it is favorably positioned near the corridor, which is one of the
county's major north-south interstate highway systems.
• A major shopping complex, The Westinghouse Center, is within walking
distance as well as a number of dining and fast food establishments.
Currently Good Vibrations, Inc., is conducting a feasibility study
in hopes of bringing at least four concerts to the lower Michigan area in 2002.
These concerts will also feature food and novelties booths.
Market Segmentation
We expect a modest 5 percent growth in
our target market over the next four years. The growth will increase our Ingham
County target market from 236,683 to 287,691 by 2005.
|
Market Analysis
Market Vnahsis
|
I’-iti-ntial
Customer* (!rn« th 209 1 Age Group 18-24 5"r 41.869 Age
Group 25-34 5% 61.054 Age Group 35-44 5'* 70,052 Age Group 45-54 5ri
63.708 Other 0% 0 Total 5.0#^ 236*83
|
20M2 2003 43.962
46.160 64.107 67.312 73.555 77.233 66.893 70.238 0 0 248.517 2l.ll.*>43
|
2004 2005 48.468
50.891 70.678 74.212 81.095 85.150 73,750 77.438 0 0 273.I'M 287.6V 1
|
CAC.R
5.00*i 5.00<S
5.DK 5.OPS 0.00%
|
|
|
|
|
|
Potential
Customers
|
Growth
|
2001
|
2002
|
2003
|
2004
|
2005
|
CAGR
|
|
Age Group 18-24
|
5%
|
41,869
|
43,962
|
46,160
|
48,468
|
50,891
|
5.00%
|
|
Age Group 25-34
|
5%
|
61,054
|
64,107
|
67,312
|
70,678
|
74,212
|
5.00%
|
|
Age Group 35-44
|
5%
|
70,052
|
73,555
|
77,233
|
81,095
|
85,150
|
5.00%
|
|
Age Group 45-54
|
5%
|
63,708
|
66,893
|
70,238
|
73,750
|
77,438
|
5.00%
|
|
Other
|
0%
|
0
|
0
|
0
|
0
|
0
|
0.00%
|
|
Total
|
5.00%
|
236,683
|
248,517
|
260,943
|
273,991
|
287,691
|
5.00%
|
|
Target Market Segment Strategy
Our strategy is to target individuals aged 18-54 because they are
the largest population of music buyers and concert attendees. We will reach the
18-34 group by marketing some of the newest and heart-throbbing talents. For
our 35-54 group we will market our older and more overlooked artists that this
age group will recognized from the 1960s to the 1980s, from their
school/college days along with the other R&B artists and music that appeals
to them.
We cannot survive just waiting for the
customer to come to us. Instead, we must get better at focusing on the specific
market segments whose needs match our offerings. Focusing on targeted segments
is the key to our future.
Therefore, we need to focus our marketing message and our product
offerings. We need to develop our message, communicate it, and make good on it.
Our target market covers 15 lower Michigan counties, and people aged
18-54 which totals over2.9 million individuals. This market is the largest
segment of people that generally purchase tickets to music concerts. We expect
18 percent of this market to be urban males, 30 percent to be urban females, 15
percent to be suburban males and 37 percent to be suburban females.
Market Growth/Industry
Attendance for top tours fell in 1999
while concert grosses jumped.
Analysis: The good news for the concert industry is that music fans
in North America forked over a record $1.5 billion to buy concert tickets in
1999, according to industry trade magazine StarRate. The bad news for fans is
that this feat was accomplished by increasing ticket prices rather than by
increasing attendance.
StarRate's annual analysis of the concert business found that the
average consumer paid $43.63 to see one of the top 50 tours in 1999, up more
than $10 per ticket from 1998. But only 27.4 million tickets to the top 50
tours were sold in 1999, a decrease of 1.1 million from the previous year.
Aging rockers the Rolling Stones—who haven't been shy about asking a
premium for tickets in recent years— were 1999's top grossing act, ringing up
$66.7 million in ticket sales in North America, according to StarRate. The
Stones' "No Security" tour, for which fans paid an average of nearly
$110 per ticket, topped 1999's gross charts despite drawing nearly a half
million fewer fans in North America than did the No. 2 Bruce Springsteen tour,
for which tickets cost an average of about $60.
Trade magazine Entertainment Business, whose statistics include
shows outside North America (and which
has a slightly different reporting period), pegged the Stones' 1999
take at $89.2 million and named the band as the top touring act of the 1990s,
with more than $750 million in ticket sales for the decade. Their closest
competitors were the Grateful Dead ($285 million) and U2 ($282.5 million).
The Rolling Stones sold out 42 of 45 shows reported Entertainment Business for 1999, but there are
signs that high ticket prices kept fans away from some events. Sting's
"Brand New Day" tour, for example, attracted a disappointing average
of 4,600 fans per city, perhaps because the typical ticket sold for nearly $80.
Neil Young, with an average ticket price near $70, averaged
attendance of less than 5,000 per city. Meanwhile, Tom Petty and the
Heartbreakers and John Mellencamp, acts with fan bases similar to Young's, both
charged about half as much for tickets as Young did and both drew an average of
well over 10,000 fans per city.
Premium prices weren't charged by
every act in the top 10. The average NSync ticket went for $28.62; the Dave
Matthews Band, $34.44; Shania Twain, $37.65; Backstreet Boys, $37.24; the
George Strait Country Music Festival, $40.80; and Neil Diamond, $36.86. All had
prices comfortably below the average. Among StarRate's top 50 tours, the lowest
ticket prices were charged by the Goo Goo Dolls, $19.37.
The spike in 1999’s average ticket prices can be attributed in large
part to the Rolling Stones, who charged a much higher ticket price for their
"No Security" arena tour than for their "Bridges to
Babylon" stadium tour of 1998, which commanded prices in the $65 range.
But also feeding the trend is the increasingly common practice of charging
significantly higher prices for venues' best seats.
Also contributing to rising ticket prices is the rapid consolidation
of the concert promotions business, which had traditionally been controlled by
independent promoters who generally booked concerts in one region. That changed
in 1997, when a new company called BEST Entertainment snapped up many of the
top independents. BEST’s big catch of 1999 was The Next Adventure, which,
rather than controlling a region, specializes in promoting major stadium tours
like "Bridges to Babylon."
BEST is particularly powerful in the amphitheater market because, during
its buying spree, the company purchased promoters who also owned venues. BEST
now owns venues in about 30 of top 50 markets, and it self-produced about 20
amphitheater tours in the summer of 1999.
These efforts have made BEST the dominant player in the industry.
According to StarRate, BEST had a hand in more than 60 percent of the 200
top-grossing concert dates of 1999. BEST- promoted shows grossed $310 million
in 1999, according to Entertainment Business,
well ahead of the $118 million take of the number two player, House of Blues
Concerts.
BEST’s strategy for recouping its approximately $1.5 billion
investment in the concert business has been to increase sales of
sponsorships—which includes the placement of a business' name on a venue—and to
sell more advertising. BEST also has increased the marketing muscle behind the
subscription series at its amphitheaters.
Demographics are also working to increase ticket prices. As the
spending power of baby boomers grows, so does the amount of money they will
spend to see their favorite acts. That fact isn't lost on the acts and their
management, who demand more money from promoters. Thus tours like those of the
Rolling Stones, Bette Midler (with an average ticket price of $81.23, according
to StarRate), and Andrea Bocelli ($101.34) can command higher ticket prices
than ever.
One of the more encouraging signs to those in the concert industry
was the emergence of acts that appeal to young audiences. While surveys of the
top-grossing tours are often dominated by long-established acts, 1999's top
tours included teen favorites NSync and Backstreet Boys.
Also of note is Shania Twain, who began her first headlining tour in
1997 and quickly emerged as the hottest country act since Garth Brooks.
Indicators weren't as positive for country music as a whole,
however, as the genre didn't have the benefit of a Garth Brooks tour in 1999.
The George Strait Festival continued to roll, and Brooks & Dunn grossed an
estimated S10 million, according to Entertainment
Business. But overall, gross country concert dollars were down 16
percent from 1998.
Despite the festival's calamitous end,
Woodstock '99 was the single highest-grossing concert event of the year,
according to Entertainment Business. Nearly
187,000 people attended the July 22-25 event, and its total ticket gross was
nearly $29 million.
The year-end charts issued by both StarRate and Entertainment Business are compiled from unaudited
box office reports voluntarily filed by concert promoters, and promoters are
told that the numbers they report should reflect the face price of tickets. The
numbers don't include taxes, ticketing company convenience fees, parking, and
other charges.
Top 10 Tours (StarRate) Act/Gross (in
millions)
1.
Rolling Stones/$66.7
2.
Bruce Springsteen and the E Street Band/$61.4
3.
NSync/$51.5
4.
Dave Matthews Band/$48.5
5.
Shania Twain/$40.8
6.
Cher/$37.7
7.
Backstreet Boys/$37.1
8.
Elton John/$32.5
9.
George Strait Country Music Festival/$32.4
10.
Bette Midler/$31.7
Top 10 Tours (Entertainment Business)
Act/Gross (in millions)
1.
Rolling Stones/$89.2
2.
Bruce Springsteen and the E Street Band/$53
3.
Dave Matthews Band/$44.6
4.
NSync/$44.3
5.
Shania Twain/$36.6
6.
George Strait Country Music Festival/$32.4
7.
Cher/$31.5
8.
Neil Diamond^ 1.3
9.
Celine Dion/$26.8
10.
Backstreet Boys/$24.5
As you can see Good Vibrations, Inc., has chosen a prime time to
start a concert promotions business.
STRATEGY
As stated above our strategy is a combination of promotions and
target marketing. We will focus on concert attendees ages 18-54 and utilize our
detailed promotional strategies to reach these individuals. The target customer
will also consist of baby boomers and R&B music lovers.
Implementation
Steps
Before we begin our marketing and promotions, we will confirm all of
the following items:
•
Check with other area conceit arenas, churches,
radio stations, and promoters for conflicting events
•
Confirm our concert location in writing
•
Confirm the date and artist in writing with the
agent
•
Confirm that the radio station will support us
•
Thoroughly read artist's rider and contract to
be sure we can fulfill it 14 Weeks Prior to Concert
Our tour posters, mailers, tickets, and flyers are ordered from the
printer. The cost of our promotional pieces and tickets are to be absorbed by
getting a local business to use the backs of tickets as a coupon, or by placing
logos on our promotional pieces. Also, we are seeking to partner with our local
radio station. We can do this by placing their logo on our promotional items in
exchange for substantial discounts for on-air advertising and underwriting. The
most important thing we will do is to start a "word of mouth"
campaign immediately. We will make calls to local clubs, etc., and get the word
out about our event. This is very effective and helps get the "buzz"
going. This will begin immediately!
Determining what type of concert we are promoting we then acquire
our mailing labels for a regional mailing for that particular industry. At least
two to three times the venue capacity are mailed out. If the venue holds 500,
between 1000-1500 mailers are sent out. All local barber shops and beauty
salons are then contacted.
Next ticket sales at ticket outlets and music stores are set up.
They are then listed on our promotional materials. All outlets are informed
that the receipts and excess tickets are to be picked up no later than the day
before the concert. Our music stores are then informed that even if they sell
all of their allotted tickets UNDER NO CIRCUMSTANCES should they tell their
customers the concert is sold out unless we personally tell them so.
13 Weeks Prior to Concert
Our mailing is sent out. We will use volunteers to help with our
bulk mailing and as a back up we will contact our printer; they offer mailing
services to promoters for a very reasonable fee.
12 Weeks
Prior to Concert
Our flyers advertising the concert will be distributed throughout
our city. Distribute flyers advertising the concert to all major clubs in the
area. Also, flyers will be posted in local businesses and restaurants. Flyers
are also distributed to our ticket outlets, and posters are being displayed in
a prominent location in the selling outlets.
Our tour publicist is provided the
following information:
1.
Venue name
2.
Venue street address, including city and state
3.
Show time
4.
Ticket prices (specify ticket breakdown... $9
groups/$l2 advanced, etc.)
5.
Local phone number for ticket information
6. The name of the radio station(s) we are doing our primary promotions
with, including the call letters, phone numbers, and the name of our contact at
the station
If any stations or newspapers contact
us directly, they will be supplied with all the details of our concert.
11 Weeks Prior to Concert
Tickets will be distributed to our outlets. They are adequately
supplied with tickets, flyers, and a poster. The poster is hung in a prominent
location.
8 Weeks Prior to Concert
Our partnering with a local radio station is arranged and they have
started running spots/underwriting announcements—approximately 20 per week . We
have inquired with the radio station about contests and giveaways, such as
tickets, CDs, cassettes, and "prize packages." Most stations jump at
the chance to center a huge promotion surrounding a concert. We are working mainly
with our local station. The amount of "free" promotion they give us
each time they giveaway tickets on the air will offset our expense of supplying
them with a reasonable amount of free tickets. We will target our ticket
giveaway at 20 pair of tickets. The product giveaway is available through
management or the station can contact the radio promotions department at the
artist's record company. We will always begin our radio campaign at least eight
weeks before our concert. We are airing between 3-6 spots or more each day. Our
radio promotion is always started early on. We can always reduce spots when we
sell out our concert.
Also, the stations in our area are provided with all the information
regarding our concert. We understand that waiting too late to begin our radio
promotion will adversely affect our ticket sales. Although radio advertising
does cost, it is an incredible means to effectively communicate with the
concertgoers that will attend our concert.
6 Weeks Prior to Concert
We are following up to see that our local radio station received
promotional giveaway products, including ticket giveaways. We are also
contacting the artist's management about a radio interview. This is scheduled
by week four.
4 Weeks Prior to Concert
We are now running the second
"flight" of spots/underwriting announcements with our local radio
station. Approximately 20 per week up to our show date or until the tickets
have sold out. Radio spots will remain airing until the day of the show unless
we sell out our tickets. We also are sending out a second mailing to
"concertgoers" in our area at this time. Lists are available from
Dunhams Direct.
Concert posters are placed in prominent locations throughout our
community such as: local grocery stores, arcades, malls, restaurants, and any
industry-owned businesses. Wre are also making sure all posters are
still up at our area barber shops and beauty salons.
3 Weeks Prior to Concert
Arrange for a volunteer to call all major clubs to remind them about
the concert. This is a very important part of the last-minute promotion of our
concert. Even though we may have already contacted our local clubs, we are
going ahead and giving them another "reminder" call. It is also being
mentioned that we have group rate tickets available to groups of ten or more.
Connecting with our local clubs is a vital link to the success of our concert.
Week of Concert
All ticket monies and/or tickets are picked up from the outlets no
later than the day prior to the concert. This will give us time to make an accounting
of all tickets sold at advance and group rates. Group rates will not be
applicable at the door nor should any tickets not already paid for be held at
the door. It is common for people to call, ask us to hold 30 tickets, and then
not show up or appear with just a few people.
If we have not already discussed arrival times and last-minute
details with the artist's road manager, he/she will be called to confirm
appropriate arrangements.
Hotels are reserved and prepaid in the
artist's name. There is often confusion at the desk so we will be sure that the
artist's name is correctly spelled and, if possible, a confirmation number is
assigned and given to the road manager.
Day
of Concert
We are making sure that our crew will be present at the
pre-determined time. The hall manager should have the building open and ready
for set-up.
We will brief ushers and staff on
their duties at least two hours before concert time. We are making sure they
are aware of the fact that due to recording contracts, no tape recorders or
video cameras are permitted in the hall without written approval of the record
company or management. Photographs are not permitted.
We are meeting with our road manager
to cover details on set-up and load-out as well as sound check, etc.
We have tables set up at the rear of the concert arena and have
several people available to help with sales of records and T-shirts, etc.
We have an expense record sheet completed (door sales can be added
following the concert) and receipts on hand so we can settle up quickly if
percentages are involved.
Meal(s) for artists and crew are
provided.
Preparation time with artists and crew usually takes place an hour
or so prior to the concert. Doors usually open to the public 30-45 minutes
before concert time.
Mailing list cards are passed out (if appropriate) to get the name
and address of all who attended so we can send flyers to them in the future.
More concertgoers will fill out cards if a drawing is attached. Drop boxes are
placed by entrances for cards.
After the Concert
We are making sure that enough crew
members are present to help artists with load-out.
•
We will then send thank-you notes to all
volunteers.
•
We pay all our bills.
Logistical Specifications
Sound Check
Sound check should be scheduled at least two hours before the
concert start time. A set time should be agreed upon before the event date.
Plan to keep people out of the arena during sound check. The sound system and
stage should be set when artists arrive. They usually like to take their time
during sound check to make sure things go as smooth as possible during the
concert. We will have our most qualified sound engineer on hand to run the
sound. If additional equipment is rented or brought in, we will be certain that
the sound engineer is experienced in operating it or has someone with him who
is. Also, we must be sure that the sound engineer is at the site the whole time
(sound check, concert time, and tear down). Concert order, track queues, and
equipment instructions should be completed prior to sound checks.
Product Sales
GVI will have at least two trustworthy, responsible individuals
available to handle the sale of merchandise. We may need more sales personnel
depending on the size of the building. The vendor should provide a starting
bank for the sales personnel for transactions. Sales personnel will be expected
at the product table one hour prior to the concert, during the concert, and one
hour after the concert.
It is necessary for the promoter to
provide at least one to two eight-foot tables (depending on the size of the
building) to display the products. We will place the tables in areas most
heavily traveled by the concert attendees—near entrances and exits closest to
parking areas.
The artist may have the right, but not the obligation, to sell
products at the concert. The artist pays no charges or fees on merchandise sold
at the event if stated in their contracts.
Lodging /Transportation
When necessary, we will provide one double room at a national chain
hotel (Holiday Inn or like quality). The hotel should be as close as possible
to the concert site. Confirmation of reservation should be returned with the
Concert Confirmation Form.
When the artist is flying to the event, we will provide
transportation to and from the airport, concert site and hotel. We will be
notified of the cost of the air fare. We plan to pay this at the time the
airplane ticket is booked. The artist arrival time, flight number, airline,
etc., will be communicated with us as soon as possible prior to the event.
Possible Competition
The following are possible competitors:
1.
XYZ Music Presents
2.
WHYZ Presents
3.
Mega Explosion Concert
4.
River Run Casino
5.
MTVABX
6.
Chandler Park Music Festival
7.
Industry & Stoned Productions
8.
Molehill Productions
These companies are listed as "possible" competition
because we know with our unique marketing strategies and professionalism we can
gain an edge over them.
Competitive Edge
Good Vibrations, Inc., currently has artists waiting to be promoted
year round, instead of just during the summer. Our competitive edge will be
that we will continuously market the artist and be more than a seasonal
promoter. We operate with the utmost professionalism and offer quality service
to all of our clients, not just the most famous ones.
Pricing
Our ticket pricing will average about $35 for floor tickets and
$27.50 for general admissions. Our average arena capacity will be about 2,500
to 4,500 seating capacity. Each concert will be budgeted out in regards to
individual charges such as but not limited to:
•
Arena rental
•
Ticketmaster fees
•
Stage use
•
Forklift
•
Spotlights
•
Novelty Sales
•
Parking
•
Insurance Bond
•
Switchboard
•
House sound
•
Risk Management
•
Technical Director
•
Security
•
Stage hands
•
Follow spots
•
Set-up/Clean-up
•
tilities
•
Marquee set-up
•
F irst Aid
•
Lighting Design Fee
Sales Strategy/AIDCA
AIDCA, or attention, interest, desire, conviction and action are the
five stages of the sales call are how we'll approach our prospective clients.
If this approach fails, we will politely thank them for their time and
discontinue the call.
Possible Leads
Possible leads will derive from advertising firms, martial arts,
travel agencies, automotive dealers, airlines, apparel, electronic stores, art
supplies, youth organizations and centers, athletic organizations, ball clubs
and organization, bartending schools, band instruments, beauty salons and
schools, banks, cellular services and pagers, bible schools, colleges, pool
parlors, bookstores, beverage manufacturers, sporting goods, apartments, pet
supplies, car alarms, churches, basketball clubs, hockey clubs, soccer clubs,
credit card companies, fast- food restaurants, employment agencies, fitness
clubs, vitamin and health stores, travel agencies, furniture stores,
manufacturers, grocers, hotels and motels, ice cream manufacturers, music stores,
mobile home manufacturers, and brokers, and many more.
Key points of interest for sales calls:
•
Strive to set-up an appointment as opposed to a
sale.
•
Target your sales drives.
•
Keep features in reserve as aids to tip the
balance in your favor.
•
Elaborate on product or service features,
benefits, and company knowledge.
•
Never criticize the competition, but always aim
to outperform it.
•
Above all, SMILE!
Sales of sponsorships will be based on the collective expenses of
each individual concert. Our goal is to know the total expenses of each concert
before we promote it. Once we know the expense total, we will know how many
sponsorships we need to sell.
Sponsorships
Sponsorship/Advertising will play a vital role in the success and
growth of Good Vibrations. Before the first ticket is sold, sponsorship and
program advertising is our primary resource to ensure a successful event for
Lansing and Ingham County. Without such support, Good Vibrations would simply
cease to get off the launching pad. This year is our inaugural year and we
anticipate it to be a watershed for the four-concert event called the
"Good Vibes Explosion 2002."
Good Vibrations's
use of Internet, television, radio, and print advertising, as well as
commissioned art posters, official programs, brochures, flyers, T-shirts,
banners, direct e- mail, and extensive signage will blanket south central
Michigan and deliver sponsor/advertiser's and the Good Vibrations's messages.
We estimate that the
event marketing campaign will generate 2.9 million impressions
within 90 minutes of Lansing, effectively tapping into a market with an
Effective Buying Income (EBI) of $38 billion.
The different sponsorship/advertising packages and their
corresponding benefits and features are described within the following pages. Each
package delivers incredible value, allowing your company to fulfill its
marketing missions in a cost effective, culturally beneficial manner. All
sponsors receive an entertainment package consisting of tickets and backstage
and hospitality passes to all indoor and outdoor events. If our sponsors do not
see an "exact fit," we are open and willing to create a special
program for their company.
Sponsorship Title Endowment
Marquee Sponsor
The Marquee Sponsor will achieve
unparalleled exposure at an unsurpassed value for their company through title
sponsorship of the Good Vibes Explosion 2002. Grab the attention of a desirable
target with millions of favorable impressions. Demonstrate their company's
commitment to community service and preservation of America's unique musical
heritage. Receive top billing across all the board in all media in all mentions.
The benefits
afforded to the sole Marquee Sponsor of the Good Vibes Explosion 2002 will
include:
•
Their company's name will become the lead part
of the Festival's name, i.e.: "The (corporate identity or product
brand)" Good Vibes Explosion 2002.
•
Full inclusion in primary position of all paid
and trade television, radio and print advertising and promotional pieces, press
releases, indoor event signage, and public service announcements.
•
Continuous listings and press coverage in print,
radio, and television during said event.
•
Top billing mentions during emcee breaks and
intros at indoor and outdoor events.
•
License to use event name and trademarks in your
company's promotional activities, subject to GVI review.
•
First choice vendor booth placement (booth at
GVI's expense) with product exclusivity at event with right to sell, use, or
display products (within GVI's guidelines).
•
Paramount banner placement at all indoor and
outdoor events (subject to venue rules).
•
Marquee sponsor title appearing on Good Vibes
Explosion 2002 T-shirts.
•
Largest size sponsor advertisement in the
official Good Vibes Explosion 2002 program guide, published by Small Business
Designs and Graphics and distributed at the event and in south central
Michigan.
•
Lead appearances in all event program,
brochures, posters and flyers, and event website for one year, with linking.
•
First option to be involved in video and audio
recording and broadcast projects.
•
Additional banner placements (up to four total)
at indoor and outdoor events.
•
Additional signage at concession and souvenir
areas.
• Custom entertainment package to reward employees, customers, and
others. Consists of eight VIP passes which feature a "Meet and Greet"
session with headlining artists (subject to artist contractual riders) in addition
to total access to all events and 20 sponsorship passes which allow for seats
in both indoor events.
Corporate Sponsor
For the Corporate Sponsor we will tailor their contribution to a
slightly more modest level than the Marquee
Sponsorship, but they will receive incredible exposure nonetheless.
Each opportunity to announce and credit
the event will be followed immediately by a phrase such as
"Presented by (their company or product brand)".
Show the target audience their company's strong commitment to new
American music and community service.
The Benefits afforded to Corporate Sponsors of the Good Vibes
Explosion 2002 will include:
•
Full inclusion in secondary position of all paid
and trade television, radio and print advertising and promotional pieces, press
releases, indoor event signage, and public service announcements.
•
Continuous listings and press coverage in print,
radio, and television during said event.
•
Prominent mentions during emcee breaks and
intros at indoor and outdoor events.
•
License to use event name and trademarks in your
company's promotional activities, subject to GVI review.
•
Preferred vendor booth placement (booth at GVI's
expense) with product exclusivity at event with right to sell, use, or display
products (within GVI's guidelines).
•
Preferred stage wings banner placement at all
indoor and outdoor events (subject to venue rules).
•
Second largest size sponsor advertisement in the
official Good Vibes Explosion's program guide, published by Small Business
Designs and Graphics and distributed at the event and south central Michigan.
•
Corporate sponsor title appearing on Good Vibes
Explosion 2002 T-shirts.
•
Second largest appearances in all event program,
brochures, posters and flyers and event website for one year, with linking.
•
Additional signage at concession and souvenir
areas.
•
Custom entertainment package to reward
employees, customers, and others. Consists of six VIP passes which feature a
"Meet and Greet" session with headlining artists (subject to artist
contractual riders) in addition to total access to all events and 12
sponsorship passes which allow for seats in all events.
Principal Sponsor
We're adding this sponsorship level for sponsors who are trying to
reach a new, expanded market (from local to
regional or national).
The benefits afforded to Principal Sponsors of the Good Vibes
Explosion 2002 will include:
•
Full inclusion in third position of all paid and
trade television, radio and print advertising and promotional pieces, press
releases, indoor event signage, and public service announcements.
•
Continuous listings and press coverage in print,
radio, and television during said event.
•
Mentions during emcee breaks and intros at
indoor and outdoor events.
•
Vendor booth placement (booth at GVI’s expense)
with product exclusivity at event with right to sell, use, or display products
(within GVI's guidelines).
•
Stage wings banner placement at all indoor and
outdoor events (subject to venue rules).
•
Third largest size sponsor advertisement in the
official Good Vibes Explosion 2002 program guide, published by Small Business
Designs and Graphics and distributed at the event and south central Michigan.
•
Principal sponsor title appearing on Good Vibes
Explosion 2002 T-shirts.
•
Third largest appearances in all event program,
brochures, posters and flyers, and event website for one year, with linking.
• Custom entertainment package to reward employees, customers, and
others. Consists of four VIP passes which feature a "Meet and Greet"
session with headlining artists (subject to artist contractual riders) in
addition to total access to all events and eight sponsorship passes which allow
for seats in all events.
Patron Sponsor
No sponsorship can do so much for so little money. Gain millions of
favorable impressions at an incredible value. This is the minimum level of
sponsorship necessary to receive television-advertising benefits. Help one of
the first and best American music festivals to grow and touch people with the
uplifting power of Rap and Dance music.
The benefits afforded to Patron Sponsors of the Good Vibes Explosion
2002 will include:
•
Inclusions in all paid and trade radio and print
advertising and promotional pieces, press releases, and indoor event signage
and public service announcements.
•
Mentions during emceed breaks and intros at
indoor and outdoor events.
•
Vendor booth placement (booth at GVI's expense)
with product exclusivity at event with right to sell,
use, or display products (within GVI's
guidelines).
•
Stage wings banner placement at all indoor and
outdoor events (subject to venue rules).
•
One-fourth size sponsor advertisement in the
official Good Vibes Explosion 2002 program guide published by Small Business
Designs and Graphics and distributed at the event and south central Michigan.
•
Patron sponsor title appearing on Good Vibes Explosion
T-shirts.
•
Appearances in all event program, brochures,
posters and flyers, and event website for one year, with
linking.
• Custom entertainment package to reward employees, customers, and
others. Consists of two VIP passes which feature a "Meet and Greet"
session with headlining artists (subject to artist contractual riders) in
addition to total access to all events and six sponsorship passes which allow
for seats in all events.
Associate Sponsor
The Associate Sponsor will be able to promote their company to
thousands of potential local customers who are proven spenders! This is the
minimum level of sponsorship necessary to qualify for booth space at the event.
The benefits afforded to Associate Sponsors of the Good Vibes
Explosion 2002 will include:
•
Inclusions in all paid and trade radio and print
advertising and promotional pieces, press releases, and indoor event signage
and public service announcements.
•
Mentions during emceed breaks and intros at
indoor and outdoor events.
•
Stage wings banner placement at all indoor and
outdoor events (subject to venue rules).
•
One-fourth size black and white sponsor
advertisement in the official Good Vibes Explosion 2002 program guide,
published by Small Business Designs and Graphics and distributed at the event
and south central Michigan.
•
Associate sponsor title appearing on Good Vibes
Explosion 2002 T-shirts.
•
Appearances in all event posters and flyers, and
event website for one year.
•
Custom entertainment package to reward
employees, customers, and others. Consists of two VIP passes which feature a
"Meet and Greet" session with headlining artists (subject to artist
contractual riders) in addition to total access to all events and four
sponsorship passes which allow for seats in all events.
Affiliate Sponsor
The Affiliate Sponsor will be able to promote their company to
thousands of potential local customers who are proven spenders!
The benefits afforded to Affiliate Sponsors of the Good Vibes
Explosion 2002 will include:
•
Inclusions in print advertising, press releases,
and indoor event signage and public service announcements.
•
Mentions during emceed breaks and intros at
indoor and outdoor events.
•
Business card-size black and white sponsor
advertisement in the official Good Vibes Explosion 2002 program guide,
published by Small Business Designs and Graphics and distributed at the event
and south central Michigan.
•
Affiliate sponsor title appearing on Good Vibes
Explosion 2002 T-shirts.
•
Appearances in all event posters and flyers, and
event website.
• Custom entertainment package consisting of two VIP passes which
feature a "Meet and Greet" session with headlining artists (subject
to artist contractual riders) in addition to total access to all events and two
sponsorship passes which allow for seats in all events.
Booster Sponsor
The Booster Sponsor will be able to promote their company to
thousands of potential local customers who are proven spenders!
The benefits afforded to Booster Sponsors of the Good Vibes
Explosion 2002 will include:
•
Mentions during emceed breaks.
•
Mention in the official Good Vibes Explosion
2002 program guide, published by Small Business Designs and Graphics and
distributed at the event and south central Michigan.
•
Booster sponsor title appearing on Good Vibes
Explosion 2002 T-shirts.
•
Appearances in all event posters and event
website.
• Custom entertainment package consisting of two VIP passes which
feature a "Meet and Greet" session with headlining artists (subject
to artist contractual riders).
Sales Forecast
We plan to host four concerts a year over the next three years. In
2002 we will host concerts on the following dates:
•
Valentine's Day, February 14
•
Easter, March 30
•
Mother's Day, May 19
•
Michigan State University Smash Month Concert,
September 21
The following table gives a rundown on
forecasted sales. We anticipate selling at least half of the available seats or
2,500 tickets for each of the first three concerts at our lowest price of
$27.50. This would average approximate sales of $68,750 each for the first
three concerts. For the Michigan State University concert we anticipate a
sellout crowd of 4,500 seats at our maximum price of $37 or at least $166,500
in projected sales as recent similar concerts have shown. Then in 2003 we plan
to increase our $27.50 tickets to $37, and our $37 tickets to $47. In 2004 we
plan to increase our $37 tickets to $42 and our $47 tickets to $52. Those
increases will help to promote growth in our cash flow. We also plan to have
teen parties every month starting in January 2002. The ticket costs to the
parties will be $10 a ticket for the first year and $15 a ticket for the second
year. The parties will be for 50 to 100 teens. Our conservative sales forecast
reflects the lower number of teens
attending or purchasing tickets.
We expect our expenses to decrease
about 10 percent as our events become annual events and not much advertising
and marketing is required.
