Promote the Music Event: Marketing Plan for Live Nation

This marketing plan for Live Nation's one day music event includes a competitive analysis, customer analysis, marketing mix, financial predictions, and more. It covers SWOT analysis, PESTLE analysis, Porter's five forces, and STP analysis to determine the targeted market of the organization. The report also includes financial predictions for the profits of the event.

Promote the Music
Event

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Competitive analysis....................................................................................................................1
Customer Analysis.......................................................................................................................4
Marketing Mix.............................................................................................................................5
Financial Predictions....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing plan refers to a document that sets marketing efforts of a business to achieve
success in an upcoming event (Fotiadis, Mombeuil and Valek, 2018). Objectives of marketing
plan is create marketing strategies, promote as well as advertise activities which are planned for a
period of time. Live Nation is an event promoter situated in California, United States. Live
Nation was founded in 1996 by Robert F. X. Sillerman as SFX Entertainment. Live nation
business objectives is to work as a consolidating concert promoters in national level. Company's
mission is to enhance live concert experience.
This report includes a customer analysis for an organization. It also includes of SWOT
analysis, PESTLE analysis which are considered in order to determine competitive analysis. This
report consists of Porter's five forces and a marketing mix analysis to analyse targeted market of
an organization.
MAIN BODY
Competitive analysis
SWOT analysis-
SWOT analysis is a model to determine internal forces of an organization that is strengths
and weaknesses with external forces which are opportunities and threats that arise outside an
organization (Kucuk, 2017). Live nation adopts swot analysis to identify and analyse its internal
strategic forces with its external strategic forces for its upcoming event. Analysing swot analysis
in context of Live Nation's upcoming one day music event is as below-
SWOT analysis of Live Nations
Strengths Weaknesses
 Live Nation has a highly skilled
workforce. This event company invests
more in providing training and
development to its employees which
impacts in building a high skilled and
motivated workforce.
 Live Nation has a strong cash flow
 Weak financial positions of Live nation
affects in hiring top artists to perform in
their events. Live nation faces a huge
problem in hiring expensive artists.
 Weak research and development is also
a weakness for Live Nation as company
is unable to cope with leading
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which provides company to invest into
more events or projects.
competitors in terms of innovations,
changes in music trends, etc.
Opportunities Threats
 Increase use of social media platforms
by customers is an opportunity for Live
Nations in order to attract more
customers by expanding its business
operations in ticket master portal. This
will help company to attract more
visitors in its ticket master portal which
will impact in enhancing its
profitability as well as sustainability in
long run.
 Live nation has an opportunity to
expand its footprints in global market.
Currently Live nation is having its
offices in approx 65 cities in North
America. Investing more in distribution
network will help Live nation in
expanding its business in countries
worldwide.
 Emerging completion in market is a
threat for Live Nation. Competitors of
Live nation are investing more in
building their respective distribution
network by adopting new technologies
and hiring emerging artists.
PESTLE Analysis-
Analysing PESTLE analysis in context of Live Nation's one day event is as follows-
Political- Government of U.S encourages activities of entertainment industry in the
country (Lim, 2021). Fluctuation in tax rates in entertainment sector effects business of Live
nation in U.S. Government interventions such as shifts in interest rates affects patterns of
demands in Live nation. For example when tax rates increases prices of tickets also increases
simultaneously. Company has to regulate its work rules as well as regulations according to the
country where it is performing an event.
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Economical- Economical factors such as wages and unemployment rates of a country
affects Live nation and other live music industries. High unemployment rates affects spending
power of customers in tickets of Live nation. For example, unemployment rate is low in U.S
where Live nation is going to have an event in a city of U.S named Detroit where Live nation has
chances to see an increase in sales of ticket because low unemployment rates increases income of
customers which leads to increase in spending power of its customers.
Social- High interest of music can be seen in demographics of U.S (Stead and Hastings,
2018). As festivals are growing in terms of popularity in younger audience. Youngsters of U.S
are more fond of punk rock music which benefits Live nation in identifying its audience by
different music types.
Technological- Innovation in technologies has helped Live nation to enhance its business
by attracting more audience with means of latest technologies. Live nation has adopted latest
technologies such as paperless ticketing, social media and mobile apps which has impacted in
increasing profits for Live nation by attracting more customers online.
Legal- Securities laws of different countries affect Live nation in organizing its event
beyond its home country. Live nation has to access various security laws, data protection laws,
etc. of country it is going to organise an event nearby in future. For example, UK wants that
citizen data of UK has to be saved in UK only.
Environmental- U.S government works closely into environmental safety activities.
Live nation also contributes in environmental safety measures. Company has reduced wastage of
paper in its tickets and switched to digital technologies which includes allotting paperless tickets
to its customers.
Porter's Five Forces-
Analysing Porter's five forces in aspect of Live nation is being described below-
 Threats of new entrants- Entry in music industry requires sustainable capital as well as
resources investment. Live Nation has a low threat of new entrants as new comers will
require to fulfil requirements of time consuming regulations.
 Threats of substitute goods and services- Live Nation has a high threats of substitute
services in market as some of its competitors in market provides cheaper services which
impacts in sales and profits of this respective event organizer.
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 Competitive rivalry- Competitive rivalry is low in case of Live Nation as music industry
has a few number of players. Though this industry is growing at a fast rate so it is easy to
determine its dominant players in market.
 Bargaining power of Suppliers- Bargaining power of suppliers is high in context of
music industry and Live Nation. Limited number of suppliers are involved with
operations of Live Nations resulting in high powers in hands of suppliers.
 Bargaining power of customers- Concentrated customer base has enhanced power of
customers in Live Nation. Customers can influence Live Nation through low switching
cost in this industry.
Customer Analysis
STP Analysis is a marketing model that aids an organisation in examining their products
and services as well as how they communicate their benefits to their target customers (Teoli,
Sanvictores and An, 2019). It is effective for Live Nation as it helps in focusing on bifurcation
of customer segments in order to plan specific marketing strategies to reach and engage definite
target audience. All steps of STP analysis in context to Live Nation are as follows: Segmentation- Under this, the primary motive is to create various customer segments on
basis of specified criteria. Live Nation can choose psychological and demographic
segmentation which includes factors like age, lifestyle, hobbies etc. Targeting – Main goal of targeting is to determine those customer segments that an
organisation perceive to generate desired outcomes. Ideal segment for any business is that
which is growing splendidly, has high profitability and low cost of acquiring. Live Nation
can choose youth and teenagers for being audience in their live concert as they are very
energetic and are huge in size. Company can generate more profits from them as they
spend a lot in maintaining their lifestyle.
 Positioning- It includes set position of products or services in customer's mind which are
different from competitors. Live Nation can use choose experiential positioning
technique in marketing its live concert. Under this, company can focus on emotional
connect of targeted audience with most popular music bands such as Clean Bandit,
Coldplay and Back street boys. Company can also adopt unique selling proposition
strategy to attract targeted audience towards its live concert.
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Marketing Mix
Marketing mix is defined as set of activities which are performed by organisation in
executing their marketing strategies effectively (Westwood, 2019). It assists Live Nation in
blending various elements of marketing mix to formulate a strategy in order to compete and
develop a differentiated position in market place over its competitors. All the elements of
marketing mix in relevance to Live Nation are discussed below: Product- It represents an item or service which is designed to satisfy customer's needs
and expectations. Live Nation provides services of marketing and advertising of various
kinds of programmes. In case of music concert which is marketed by Live Nation,
product can be termed as value provided to customers which can be delivered in
numerous ways such as conveyance facilities, word of mouth references etc. Price- It represents that sum of amount that a consumer is willing to pay for a specific
product or service. Live Nation adopts value based pricing strategy in the process of
marketing and advertising the music concert. It is based on consumer perception on how
much they value the service. Utility of live concert for consumers is essentially based on
music bands which are performing at show. Company can also follow cost based pricing
strategy which estimates all overhead expenses that can incur in concert and compare
that with profitability gained at the show. Place- It represents point of sales of products or service. In case of music concert, venue
of show is considered as place. Live Nation can choose Detroit city for its live music
concert as it has huge customer base who likes concerts very much and has young
population in considerable number. Live Nation should adopt hybrid distribution system
where critical aspects of show are managed by Live Nation and other secondary
amenities are covered under third party company which is hired by organisation.
 Promotion- It includes all those activities which aids organisation in promoting their
products or services (Widhaningrat, 2020). Live Nation can use various online channels
for promoting like music concert such as google ads, leaflets, cinema, national magazine
etc. in order to promote the show to a larger targeted audience. It can choose digital
channels in pre-booking of tickets for attracting potential audience.
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Financial Predictions
Financial predictions for the profits for one day event of Live Nation are as follows-
Particulars Amount (In $' 000)
Sale of tickets 152,238
Less
Cost of sales/ Variable (74,083.75)
Wages (Variable)
Gross Profit/Contribution 78,153.85
Less
Fixed Costs
Salaries (3,000.00)
Rent (440.00)
Marketing (1,000.00)
Electricity (120.00)
Insurance (500.00)
Net Profit 73,093.85
GPM % 51%
NPM% 48.00%
CONCLUSION
From the above, it has been concluded that marketing plan is a document that aids an
organisation in laying out its strategies for future project or any sort of product launch.
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Marketing mix assist companies in planning and executing various marketing strategies. SWOT
analysis helps businesses in take advantage of strengths, capitalize opportunities, deter threats
and address weaknesses. Primary objective of porter's five forces is to access the competitive
landscape of company in marketplace. PESTLE analysis plays an important role in success of
any company because it provides clear insights of external environment from all angles that can
affect business operations. STP analysis is beneficial for companies as it helps in identification
of profitable customer segments in order to avoid any unnecessary advertising cost which covers
whole market in general.
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REFERENCES
Books and Journals
Fotiadis, A., Mombeuil, C. and Valek, N. S., 2018. Designing and implementing a marketing
plan. In The Emerald Handbook of Entrepreneurship in Tourism, Travel and
Hospitality. Emerald Publishing Limited.
Kucuk, S. U., 2017. Marketing and Marketing Mix. In Visualizing Marketing (pp. 3-7). Palgrave
Macmillan, Cham.
Lim, W. M., 2021. A marketing mix typology for integrated care: the 10 Ps. Journal of Strategic
Marketing. 29(5). pp.453-469.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing (pp. 29-43). Psychology Press.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Westwood, J., 2019. How to write a marketing plan: define your strategy, plan effectively and
reach your marketing goals (Vol. 152). Kogan Page Publishers.
Widhaningrat, S. K., 2020. The development of marketing channels and inventory management
systems for SMEs. In Understanding Digital Industry (pp. 49-53). Routledge.
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