Essay

Concert Promotions Company

Concert Promotions Company 405

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BUSINESS PLAN     GOOD VIBRATIONS, INC.

145 Mueller Avenue, Suite 13 Lansing, Michigan 48901

Good Vibrations, Inc. (GVI), is a home-based concert promoting corporation. GVI's keys to success include: implementing an effective cash flow plan, communicating with our customers and clients regularly, and targeting our most ready-tobuy customers or clients first.

  • EXECUTIVE SUMMARY
  • COMPANY SUMMARY
  • PROMOTIONAL SERVICES
  • MARKET ANALYSIS 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

Concert Promotions Company

Legal and Accounting Expenses $500
Stationery, etc. $300
Brochures and Promotional Items $3,150
Consultants $1,000
Insurance $500
Office Furniture $2,000
Research and Development $1,000

Concert Promotions Company

Computer and Printer $1,200
Travel $3,000
Meals $400
Security $6,000
Accommodations $500
Other $0
Total Start-up Expense $19,550
Start-up Assets Needed
Cash Requirements $10,000
Start-up inventory $0
Other Short-term Assets $0
Total Short-term Assets $10,000
Long-term Assets $0
Total Assets $10,000
Total Start-up Requirements: $29,550
Left to finance: $0
Start-up Funding Plan
Investment
Owner $10,000
Investor 2 $0
Other $0
Total Investment $10,000
Short-term Liabilities
Unpaid Expenses $0
Short-term Loans $19,550
Interest-free Short-term Loans $0
Subtotal Short-term Liabilities $19,550
Long-term Liabilities $0
Total Liabilities $19,550
Loss at Start-up ($19,550)
Total Capital ($9,550)
Total Capital and Liabilities $10,000
Checkline $0

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/Demographics

  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′ × 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:

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 I-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 I-496 and I-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

Concert Promotions Company

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 $10 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/$31.3
  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 concert 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/$12 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

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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. We 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. MTV ABX
  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
  • First 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

Concert Promotions Company

Marquee Sponsor $25,000.00
Corporate Sponsor $15,000.00
Principal Sponsor $10,000.00
Patron Sponsor $5,000.00
Associate Sponsor $2,500.00
Affiliate Sponsor $1,000.00
Booster $500.00

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.

Sales Forecast

Concert Promotions Company

Sales FY2002 FY2003 FY2004
Valentine's Day Concert $68,750 $92,500 $105,000
Easter Concert $68,750 $92,500 $105,000
Mother's Day Concert $68,750 $92,500 $105,000
Michigan State University Smash Month Concert $165,600 $211,500 $234,000
Teen Parties $4,500 $6,000 $9,000
Total Sales $377,250 $495,000 $558,000
Direct Cost of Sales
Valentine's Day Concert $28,050 $25,245 $22,721
Easter Concert $28,050 $25,245 $22,721
Mother's Day Concert $28,050 $25,245 $22,721
Michigan State University Smash Month Concert $39,550 $35,595 $32,036
Teen Parties $1,800 $2,400 $2,400
Subtotal Cost of Sales $125,500 $113,730 $102,599

Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The budgets are set for the cost of everything except the cost of the artist and will be adjusted depending on which artist we choose to use. The milestone schedule indicates our emphasis on planning for implementation. Our pre-paid sponsorships will help to offset any additional costs needed outside our budget.

What the table doesn't show is the commitment behind it. We will hold monthly follow-up meetings every month to discuss the variance and course corrections.

Concert Promotions Company

Milestone Start Date End Date Budget Manager Department
Valentines Day Concert 9/6/2001 2/14/2002 $30,000 Roland Wilson Promotions
Easter Day Concert 12/22/2001 3/30/2002 $30,000 Roland Wilson Promotions
Mother's Day Concert 2/10/2002 5/19/2002 $30,000 Roland Wilson Promotions
Michigan State University Smash Month Concert 6/15/2002 9/21/2002 $45,000 Roland Wilson Promotions
Totals $135,000

MANAGEMENT SUMMARY

The initial management team depends on the founder himself, and additional back-up if needed. As we grow, we will take on additional office help and sales people.

Personnel Plan

Roland Wilson will arrange the concerts, make sure everything goes according to schedule, that and the bills are paid in full and on time. For the first year he will not receive any pay. All the profits will be put back into the business. Within the second year Roland will seek to hire a staff that includes a Secretary and Sponsorship Sales Rep, each being paid $25,000 a year without benefits. Roland will begin receiving an Owner's Draw in the amount of $1000 per week the third year. He will initially cut costs in the start-up phase by offering college student's working internships with his company.

Concert Promotions Company

Personnel Plan FY2002 FY2003 FY2004
Secretary/Receptionist $0 $25,000 $27,000
Sponsorship Sales Rep $0 $25,000 $27,000
Owner's Draw $0 $0 $52,000
Total Payroll $0 $50,000 $106,000
Total Headcount 1 3 3
Payroll Burden $0 $7,500 $15,900
Total Payroll Expenditures $0 $57,500 $121,900

FINANCIAL PLAN

  • We want to finance growth mainly through cash flow. We recognize that this means we will have to grow more slowly than we might like.
  • The most important factor in our case is sponsorship sales. The sales will offset any expenses we incur with promoting our concerts.
  • We are also assuming start-up capital of $10,000.

Important Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. At least we are planning on the problem and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Some of the more important underlying assumptions are:

  • We assume a strong economy, without major recession.•We assume, of course, that there are no unforeseen changes in concert promotions to make our musical artists immediately obsolete.

Concert Promotions Company

General Assumptions FY2002 FY2003 FY2004
Short-term Interest Rate % 10.00% 10.00% 10.00%
Long-term Interest Rate % 10.00% 10.00% 10.00%
Payment Days Estimator 30 30 30
Collection Days Estimator 45 45 45
Inventory Turnover Estimator 6.00 6.00 6.00
Tax Rate % 25.00% 25.


Category: Business plan

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