DSO Marketing Plan

MARK 5340
Marketing Strategy Class
Summer 2005
Presenters:
Michelle Corley & Scott Trout
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Objectives
To understand why the Dallas Symphony Orchestra is
experiencing declining ticket sales
To develop a Marketing Plan that will help the DSO
reverse the decline and position itself to achieve its goal
of becoming a top-5 orchestra within the next 10 years

Methodology
Research performed by MSMR & MBA students of UTA, led
by Dr. John Bassler
Secondary Research
Industry Analysis Knight Foundation
Competitor Analysis
External Environment Analysis

Primary Research
Internal Environment Analysis
Prior Research on DSO Customers
Impromptu Online Survey

Agenda

SWOT Analysis
Target Markets
Positioning
Marketing Plan
Product
Impromptu

Distribution
Pricing
Promotion
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Executive Summary
RESEARCH, COMMUNICATE, INNOVATE, EDUCATE, CONTROL
(1 of 2)

Establish clear and specific marketing goals for the next few years
Create open communication within all departments
Conduct research to find out who is, and who could be a DSO patron
Collect as much information as possible about the DSO patrons and design
strategies based on that
Focus not only on the past buyers but also try to expand the patron base
Hire a conductor who is not only musically talented, but also is an innovative
and charismatic leader

Executive Summary
RESEARCH, COMMUNICATE, INNOVATE, EDUCATE, CONTROL
(2 of 2)

Experiment with new programming and monitor patron perceptions closely

Seek out and utilize strategic partnerships both corporate as well as
community
Educate patrons to understand music and not just enjoy performances
Research and monitor patron price sensitivities and thus price packages
and performances accordingly
Leverage the website, which is often the first touch-point to the community
Initiate consistent, creative, and original promotional campaigns, and
monitor successes and failures
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SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats

Strengths

Emotive experience upon

attendance

Talented musicians and

conductors

Experienced and passionate staff

Good labor relations

Commitment to the mission

statement

Patron Service Center

Meyerson Symphony Center

New ticketing system

Favorable endowment to budget

ratio

Volunteers

Good fiscal responsibility

Education Programs

Core of dedicated patrons

Perceived as A really good

orchestra that plays classical
music in a great hall
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Weaknesses

Declining attendance

Conservative programming

Lack of detailed information about

patrons

Marketing leadership in flux

Risks associated with Music Director

change

Balancing artistic integrity and

marketing goals

Poor communication among

marketing sub-units

Soft sales of season subscription

packages

Website

Lack of volunteer and patron diversity

Exclusive focus on past and

current customers
Assumption of musically educated
patrons
Inadequate measures of
marketing effectiveness
Lack of signage and DSO
awareness
Small budget

Opportunities

24% of the adult population is

interested in classical music, but
do not attend regularly

High school and college markets

Innovative marketing mix

opportunities

Benchmarking to successful
orchestras

Proximity to downtown Dallas

workforce and residents

Strategic alliances/corporate
sponsorships

New music director

Collaboration with sporting events

Programs to attract Initiators

Dallas tourism

Technological advances for

attracting patrons

Growing Hispanic market

Capitalize on wealthy Collin and

Denton county residents
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Threats

Competition for consumer leisure

time

Competition from other local

presenters of classical music

Lack of interest among younger

patrons

Dependence on City of Dallas for

key customer touch points

Competition for patrons and

donors

Parking

Population growth occurring in

remote areas

Instability in Dallas political arena

Piracy

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Target Markets

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Suggested Market Segments

Initiators

Culturally active, culturally

knowledgeable people who actively
scan the media for cultural activities
Trigger of attendance for a large
portion of the attendees

Current

PRIMARY TARGETS

SECONDARY TARGETS

Initiators

Responders

Segment 1

Segment 2

Sophisticated
Active Audience

Casually
Involved Active
Audience

Segment 3

Segment 4

Sophisticated
Low-Freq
Alumni

Interested
Single-Ticket
Buyers and
Ghosts

People who usually need an external

social stimulus to cause them to
engage in cultural activities
Large and potentially powerful
constituency for the DSO

Potential

Responders

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Source: Knight Foundation Study

Repositioning

Premier Cultural Experience

Worth Sharing
WHY?
Grab patron attention by claiming to offer the BEST cultural
experience in the DFW Metroplex
Capitalize on the social aspects of high-level entertainment; offer
what the living room cant
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Product
Conductor & Musicians
Programming

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Current Program Mix

Traditional
Classical Series

Non-Traditional

Pops
Family
Christmas
Distinguished Artists
Gala
Summer
Nasher Chamber
Parks
Festivals

Total NonTraditional
47%

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Classical
(Traditional)
53%

Traditional & Non-Traditional Strategy

Traditional Strategy
Leverage DSO as a source for musical excellence and competitive
advantage
Do not dilute quality of performances or perceptions by trying to appeal
to everyone (i.e. casual clothing)

Non-Traditional Strategy
Re-use aspects of concerts that have been successful
Apply enhancements to all Non-Traditional concerts

Dramatization: Narration, Dance

Visual Enhancements: Scenery, Lighting
Multimedia: Videos, Laser Lights
Education: Informational, Technology

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Non-Traditional Product Mix (cont.)

Suggest addition of two new categories:
Contemporary Classics
New spin on Traditional Classics
Visual/sensory enhancements

Strategy for reaching younger audiences

Dont market to traditional target market

Carve out % of Traditional Classics

and replace with this programming

Generation X/Y Pop Culture

Strategy for reaching younger audiences
Movie Themes, Video Game Themes
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Impromptu

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Impromptu Primary Research

Major Findings:
Flexibility is the most frequently cited positive aspect of
Impromptu
Cost concerns are the major deterrent to purchase
The average number of concerts that respondents
predict they would attend under the Impromptu program
is only between 1 and 2 per month

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Impromptu Primary Research

Major Findings:
Few have joined or plan to join Impromptu as it is
currently offered
Additional membership benefits may increase likelihood
to enroll
90% of respondents perceive the DSO as a premier
cultural experience worth sharing

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Impromptu Primary Research

Recommendations: Lower the monthly membership fee to between
$27 and $35 (assuming a setup of $100)

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Impromptu Primary Research

Recommendations:
Offer discounted monthly fees for couples and families
Impromptu promotions should stress unlimited access
to a variety of programs
Alleviate concerns regarding seat quality
Add Impromptu member only special events to
membership benefits

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Impromptu Program Changes

Changing the enrollment fee to a handling fee and
lowering the fee
Clarifies the purpose of the fee and justifies its existence
Reduces the perceived risk of trying the program

Lowering the membership fee and offering a discount

for multiple membership purchases
Encourages multiple membership purchase
Increases the value of the program
Lowering monthly fee by $1 could have a significant
psychological impact
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Impromptu Program Changes

Launch a viral email campaign to increase enrollment
Cost effective way to reach potential enrollees
Substantial discount will likely generate stronger interest
Increased appeal for Initiators

Substitute a cancellation fee for an enrollment fee

Not recommended due to the negative psychological impact

Detracts from Impromptus flexibility, its key benefit
Actively highlights the risk associated with trial

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Pricing

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Price Adaptation
Use Tessitura to find current occupancy & seat
preferences
In full occupancy, 85% of ticket revenue Orchestra &
Orchestra terrace, Loge boxes, Dress circle and Grand Tier
Adjust prices between seating levels based on demand

Increase revenue through:

Price adjustments
Increasing perceived value

Psychological pricing
Product innovation
Marketing messages
Brand enhancements

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Price Adaptation - Subscribers

Flexible, smaller packages
Student packages (build long-term audience)
Explicitly state and offer benefits

Discounts for subscription renewals, gift vouchers

Refer-a-Friend program
Group discounts for 6 or more
Ticket insurance
Subscriber-only concerts
Thank-you discounts to loyal patrons

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Price Adaptation Single Tickets

Take a Friend to the Orchestra
Frequent-buyer discounts
Discounts on a flexible subscription package
50% discount on a future concert
Seat upgrades

Limited rush-hour discounts

Student discounts, discounts for children
Offers similar to the 2 for the Badge program
Price bundling with other arts organizations
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Distribution

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Improving Inputs of the Supply Chain

Musicians and the Musician Union
Maintain positive relationships with competitive wages
Request the best musicians
Bidirectional communications with the union and DSO
Programming
Formats
Finding a new conductor
Open to contemporary formats
Open communication
DSO
Musicians
Patrons

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Improving Outputs of the Supply Chain

The Patrons
Feedback and satisfaction
Traditional methods
Customer response survey
Comment section on season tickets

Newer methods

Online review
Quick survey
Patron and employee interaction
Operations
Bronstein
Patron Service Center

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Improving Outputs of the Supply Chain

CD Producer and Distributor
Hyperion Records
Financial trouble
Poor distribution

Harmonia Mundi and Warner Classics

Stronger financial positions
etailer partnerships
Amazon.com

Online statistics (outputs)

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Long-term Potential Distribution Strategies

Public television KERA 13 was pursued in the past
Own record label; e.g., SFS Media (San Francisco
Symphony)
Multi-media project; e.g., Keeping Score: MTT on Music
San Francisco Symphony and Michael Tilson Thomas
Tchaikovskys Symphony No. 4

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Promotion

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Promotion
Objectives:
Inform
Persuade
Remind
Reassure
Differentiate
All components of promotion should be woven around the
positioning of the DSO: Premier Cultural Experience Worth
Sharing- and communicate this message to its patrons through
different media
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Sales Promotion
Use incentives to encourage potential and existing customers to try and,
ultimately, purchase the product or service

Current Sales Promotion

Discounts
Vouchers
Group sales
Create your own package

Additional Recommendation
Continue current sales promotion but advertise these programs
in each promotion message
Price-Pack Deal
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Sales Promotion
Discounts
Promote in nearby universities and educational institutions
In partnership with student organizations, such as Mav Express
at UTA
Employees of the donor and sponsoring companies

Vouchers
Promote as Gift Certificates for individual sales
During holiday season use E-mails, print and direct mail

Promote in schools, corporate houses, community centers,

senior communities, travel & tour operators etc.
The DSO website
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Sales Promotion
Group Sales:
Better co-ordination between marketing and group sales
Clear and consistent definition of a group
Group sales promotion

The DSO website

Direct mailing, Brochures
Mention in all advertising messages
B-B marketing to different organizations

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Sales Promotion
Create Your Own Package
Excellent program: A patron can choose any 4 concerts of their
choice and get one concert free.
Dont restrict the choice--give the option of any programming,
classical, pops, or other

Price-Pack
Apart from group sales whoever buys more than 6 tickets (any
concerts) offer 10% discount

Refer a friend program

Take a friend with you
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Personal Selling
Patron Service Center
Doing excellent job
Need to utilize Tessitura efficiently, utilize the information about
preferences and past behaviors
Ask where buyers heard about the DSO or the event--to study
the effectiveness of different media

Direct Mailing
Every visitor gets promotional material from the DSO
Do not focus on past buyers only

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Advertising
Utilize the emotional appeal to position the DSO as a Premier cultural
experience worth sharing
In addition to current sources use different medium and sources based on
different type of programming

Radio: Talk radio WBAP, KRLD, Jack FM, KMKI Radio Disney
Print: Wall Street Journal (Inserts), Star Telegram (Inserts), Dallas Business Journal,
D Magazine, AAA Magazine
Online Advertising: The DSO web site, Partnering newspaper and radio websites,
Sponsoring company website, Expedia, Orbitz, GuideLive.com, Dallas tourism
website

Outdoor Advertising: Use Banners in and around Meyerson Symphony Center, In

association with the DMA, Nasher Sculpture Center and other art organizations

Television: Network Television Leverage partnership with KXAS

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Public Relations
Press Releases
Cover the DSO events & activities in press releases

The Meyerson
Mention the DSO wherever Meyerson Symphony Center is
featured
Clear instructions and signs in the Meyerson
Make visit to the Meyerson an experience

Arrival of the new conductor

Create a PR Event

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Public Relations
Online collaboration
Partner with ORBIT
Partner with the Dallas Convention and Visitors Bureau

Educational programs and community involvement

Need more exposure and prominent promotional support

Scholarship program ($1000/year) for outstanding musical talent
Promote their talent search program as Dallas Idol
Promote local symphonic talent of local programs by having them
perform as an opening act

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The DSO Web site

Add the positioning, mission & vision statements
One web site for all the information (include site map & FAQs)
Bilingual Web site English, Spanish
Audio and video clips, downloadable MP3s
Educate the customer about the product, the organization and its
history
Collect click thru data
DSO in news
Create the DSO online community, weblog & discussion forums
Embrace new technology
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Promotional Partnerships

Collaborative partnership programs with other art organizations

Partnership with Starbucks for advertising the music
Partnership with local restaurants
More creative partnerships:

Initiator Appreciation

With hotel chains (Hilton/Radisson)- A Classical Evening

Partnership with Gaylord Texan Resort and Convention Center
Upgrade the ticket
Backstage pass
Lunch with musicians
A small ensemble before the concert

Musicians and Conductor communicating with the patrons

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Subscription Packages
Emphasize best seats at the best possible rate as one
of the subscriber incentives
Promotion medium
Patron service center
Personalized emails to the targeted segment
Vivaldi patron services
WRR 101.0 FM
Current print advertising

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Thank You!

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