Maximizing Live Event Experience With Live Nation Entertainment, An Essay.

Objectives/ strategies/competitive

The objective of the company, Live Nation Entertainment's (LNE) objective is to maximize the live event experience of the customers. The primary business of the company is to produce, promote and sell the concert of the artists throughout the globe. The business of the company is artistic and fan driven. The above activities are carried out through event network and aims to enhance the user experience. The company is giant size and invest heavily on improving the public image. Further, the company is focusing on the core incident events industry, the companies, segmented into Sponsorships, issuing tickets, and Events, have developed model concepts that relate with the corporate goal. (Forbes Media LLC. , 2022)

The company endeavor to make the live concert event more likely and cherishing through increasing the privileges and number of concerts during the year. The ticket booking process has been made more friendly through online booking and helps to save time and cost. The company is aiming to make show tickets and details about their favorite acts and venues by streamlining the process. I want to promote. (crunchbase.com, 2022)

The objective is to present a proposal for a new outdoor event which shall last for a period of 5 hours. The event shall be a music concert and shall aim to provide the customers with a breath-taking experience. The report shows the proposed plan cost for the project for its smooth and timely execution.

The capacity of the proposed venue location shall be 25000 customers as per the list of the seating capacity of the venue and the price per ticket has to be planned on the proposed cost to be incurred for range of activities to be planned at the site. Also, one has to hire a famous actor to ensure that the house is full and the revenue is realized. Also, a lower booking shall impact the image of the company. For instance, a single hour of famous celebrity may run to millions and accordingly tickets and advertisement shall be planned.

The major strength of the company is that the company has partnership deal with Gildan and the same was announced post pandemic. The said partnership permitted LNE to use American Apparel® trademark as the exclusive printing partner across 16 LNE music venues and six live events (Pelofsky, 2010). The said action provides exclusive promotion right to the company (Gildan Activewear, Inc., 2019, May 23).  Business Customers of LNE can expect unique, live music experiences that set them apart from the competition.

The company ticketing platform (Mooi, 2020) has not been user friendly and customers have been repeatedly complaining of the snag and issues on the portal. The ticketing system is outdated and both customers and box office administrators are reluctant to use. Further, there have been historical problem of consumer compliant about the event ticket access despite making payments on time and other side issues. (Pawar, 2014). For instance, in case of prior events, fans who had pre-registered for the Certified Fan presale were given a code that allowed them to purchase tickets early but those code did not work at the time of the sale (Koebler, 2017, February 10).

Proposed Seating Capacity

The company has vast opportunity for business and can expand further, to meet its competitor AEG is still in front of LNE. Further, company unlike the competitors owns the place and has to pay no rent for the location which runs in thousand for competitors. The company has various venues under its fold along with exclusive rights for some of the locations. The company owns various venues including the Staples Center in Los Angeles and the O2 in London (Global Citizen Festival New York, 2019).

The major threat to the company is retaining talents as many big talents are being hired by competitors at higher prices which is causing a major threat to the business of the company. The major talents have been pitched by competitors and major competitors are attracting talents whose contracts are on the verge of being end.

As the company enjoys some exclusive contract with vendors and there is differentiation strategy involved the mapping for the project shall be easy. The project shall involve appearance of celebrities which have exclusive contract with the company and thus revenue and profit shall be maximized. The company also make several traits that many people consider necessary are combined in such a way that they are specifically tailored to meet their needs. Thus, uniqueness is the key in the business of the company and the company focused on ticketing, sponsorship and advertisement, and the handling of artists for maximizing the revenue (musicbusinessworldwide.com, 2022)

Post applying the SWOT analysis to the music industry, a void has been noticed and it has been identified that when a product or services provides a better remedy then the other product, demand for the other product falls eventually. Thus, industry is continuously evolving and one has to come up with new ideas and presentations to make the industry more effective and working. The company has been continuously emphasizing on shifting the ideas and product technology so as to make it appear more attractive and compete more effectively. The music and fashion industry are evolving industries and a shift in emphasis from items to services will enable us to provide better service and assist our consumers to focus on what's important to them instead of what they are going to buy today. Further, the cost of acquiring the customers in the industry is high and lot of offer and discounts to be offered for attracting the customers. A large base of customers shall result in higher cost for the company. Thus, company shall require a small base of loyal customer to reduce the gap in the industry along with constant evolution.

 LNE's present clients are less likely to migrate to another company with new items launching as the company has strong grasp on its customer base.

A brand which targets young customers are the Red-Hot Chili peppers who charge £30K for a 1hour set performance. The management which is undertaken by Michael Rapino is very creative and original too. The involved products and services are much in demand, although this is the first company to sell those. The customers are very much satisfied with great quality of its offerings. The strategy was also successful throughout the years. It is also very much clear that LNE is a very big corporation, congratulations to all its endorsement services, tickets involved, live performance and marketing as well as innovative solutions like album track production and discs by very talented staff .eh product quality will rise in near future to come as long the company policy and environment allow the same. 

SWOT Analysis

Product 

The company is planning to arrange a 1 day ,5 hour a very long music festival in the open air for customers like us. The price need to less than offered by our competitors. A catchy line needs to be introduced in order to promote event and introducing the same to new audience. (wearegrow.com, 2020)

Price

A little bit extra value research shall be required in order to make good judgement about price of product. A new company with offering needs to ascertain target market involved and also competitors in order to place in market properly. Proper research about consumers needs to be carried out for customer present in market. My work as marketing manager led me to imagine price which our competitor charge for the product. With applying competitor tactics, it will help to build a marketing campaign that will also persuade consumers to buy tickets while increase in margin of profit. Accordingly, no discount shall be offered to customers.

The ticket shall cost £30 for each individual. This will help us sell a total of 30,000 tickets before the end of the year. With a major customer, we evaluate the pricing portion of our strategy. This will be a good starting price.

Promotion 

For promoting the event social media campaign shall take place and advertisement shall be done such Facebook adverts, tweets, Instagram, and other comparable sites. For advertisement company shall invest £600 a day on this arrangement and also secure £250 in purchases at the cost of £40. It is expected that there shall be a sale of total of 8000 tickets in a month with a corresponding expenditure of £32,000 and revenues of £200,000.  The money raised from the sale of tickets will cover the costs. Further, the company shall incur promotional expenditure to the tune of £3,000 for 10,000 door-to-door leaflet drops and a guarantee of 400 ticket sales for £30 each. It is estimated that we will sell 6000 tickets, which will cost us £30,000

The location of the event shall be Madison Square Garden will shall the venue of choice. There shall be no rent as the same is company owned property. However, there shall be miscellaneous expense of $175,000 for this.  Further, Staffing, restrooms, parking, and seats are all included in this category. Tthe facility has a capacity of 25,000 seats, so you should be able to sell all of them. Concessions and goods will also bring in money for the venue.

The financial analysis of the project has been presented as under in terms of return on investment. The computation has been presented as under:

The company has procured 10000 T shirts specific to the purpose of the project and same shall be sold online through ticket master along with tickets. For the purpose of sale of the t shirts a digital campaign will be launched and the singer shall also wear the same shirt while performing the event. As the capacity of the event shall be 25000 it is expected that 10000 t shirts shall be easily sold. The cost of procurement of the t shirt shall be GBP 2.5 and the sale price of the T shirt shall be GBP 50. Further, the cost of advertisement for the t shirt shall be GBP 1000 on social media on daily basis. The campaign shall run for a period of 30 days and the total advertisement expenditure shall be GBP 30000. Further, the 500 T shirt shall be given as free for the purpose of promotion. Also, the professional photographer shall be hired for the purpose of taking pictures of the T shirt and a fee of GBP 5000 shall be paid. Accordingly the working of ROI for the said investment has been presented as under:

References

crunchbase.com, 2022. Live Nation Entertainment. [Online] Available at: https://www.crunchbase.com/organization/live-nation-entertainment [Accessed 27 April 2022].

Forbes Media LLC. , 2022. Live Nation Entertainment (LYV). [Online] Available at: https://www.forbes.com/companies/live-nation-entertainment/?sh=7ca94a0376a3 [Accessed 27 April 2022].

Mooi, M. S., 2020. A Concise Guide to Market Research. [Online] Available at: https://link.springer.com/book/10.1007/978-3-642-53965-7?noAccess=true [Accessed 27 April 2022].

musicbusinessworldwide.com, 2022. Music Business Worldwide. [Online] Available at: https://www.musicbusinessworldwide.com/companies/live-nation/ [Accessed 27 April 2022].

wearegrow.com, 2020. 10 Steps to Building the Perfect Marketing Mix for Your Business. [Online] Available at: https://wearegrow.com/10-steps-to-building-the-perfect-marketing-mix-for-your-business/ [Accessed 27 April 2022].