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1 Broadway Analysis Group Members: David De Rosa Julie Lefeuvre Amanda Paquin Sonny Patel

Broadway Analysis

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I was the group leader in this project to analysis the Broadway industry, conduct primary & secondary research and provide recommendations for Broadway. The leave behind was submitted for a Marketing Research course.

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  • 1. Broadway Analysis Group Members:David De RosaJulie LefeuvreAmanda Paquin Sonny Patel 1

2. Executive Summary Research on Broadway was conducted to increase annual Broadway attendance of the secondarytarget audience. From this objective, Broadway should subsequently see an increase in annual revenueand ticket sales. The research was conducted to obtain a better understanding of the entertainment andBroadway industries, as well as, an understanding of the attitudes and purchasing habits of theatergoers. The methodology of this study began with a situational analysis to determine the history andcurrent state of the entertainment and Broadway industries. The target audience for Broadway wasresearched and analyzed. Following the target audience analysis, secondary markets were determined.These markets were targeted in a survey with a sample size of 42 males and females. The survey resultswere analyzed in IBM SPSS to interpret the data and determine suitable conclusions recommendations. We have found that the cast, advertising and ticket prices are major factors in patrons willingnessto attend Broadway. Members of our secondary target audience are likely to recommend Broadwayshows and research the shows ticket prices before attending. This shows a high level of preparationwhen considering a Broadway show. Satisfaction is dependent upon the theatergoers perception ofBroadway. Future attendance is dependent upon the cast members of the Broadway show. Word-of-mouth is dependent upon the theatergoers willingness to attend Broadway. We recommend that Broadway increase advertising towards secondary markets, continue to castcelebrity actors, and increase awareness of discount ticket options.2 3. Industry & Market Trends 3 4. Market Size Shows in Production 48Broadway 222Off-Broadway 323Off-Off-Broadway40 Broadway Theaters in Manhattan make up Broadway2010-2011 season: 42 shows opened2010-2011 total attendance: 12,534,5952010-2011 attendance grew 5.4% from 2009-20104Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. .The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. . 5. Trends in SalesYearly Grosses1,200,000,0001,000,000,000800,000,000600,000,000400,000,000200,000,000 0 1 0 9 8 7 6 5 4 3 2 1 01 01 00 00 00 00 00 00 00 00 00 -2-2-2-2-2-2-2-2-2-2-21009080706050403020100 20 20 20 20 20 20 20 20 20 20 20 Ticket sales have steadily increased over the past decade During the financial crisis, ticket sales remained constant from previous year 5The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. . 6. Ticket Price Trends Average Broadway Ticket Price($)2010822006 67200052199950020 4060 80 100 Steady increase in average Broadway ticket price due to economic inflation $32 increase in average price in 11 years 2010 average Orchestra ticket price is $140"Theres No Business like Broadways: Lessons in Ticket Pricing from New York | Stage | Guardian.co.uk." Latest News, Sport and Comment from the Guardian | The Guardian. Web. 23 Oct. 2011.http://www.guardian.co.uk/stage/theatreblog/2011/jan/17/broadway-lessons-ticket-pricing-discounts.Robertson, Campbell. "Broadway - Tickets - Theater - New York Times." The New York Times - Breaking News, World News & Multimedia. 23 Oct. 2011. Web. 23 Oct. 2011..Back Stage; 06/09/2000, Vol. 41 Issue 23, p5, 2p 6"Theres No Business like Broadways: Lessons in Ticket Pricing from New York | Stage | Guardian.co.uk." Latest News, Sport and Comment from the Guardian | The Guardian. Web. 23 Oct. 2011.. 7. Lifestyle Trends Those are attended live theater in the last 12 months are40 times more likely to be politically very liberalSample 189compared to the average (000)3,091 Liberal outlook is projected to appeal to the audience Vertical6.64% Will Ferrell starred in Youre Welcome America Growth of contemporary rock music in original musicalsHorizontal 30% Popular musicals include: Spring Awakening, BloodyIndex 140 Bloody Andrew Jackson, & Rock of Ages Growth in new productions from novels Base 1.41% Popular titles include: The Light in the Piazza, Les Liaisons Dangereuses, The Color Purple, & Wicked Growth of new musicals from film Popular musicals include: The Little Mermaid, Beauty and the Beast, Shrek, Legally Blonde, 9 to 5, The Wedding Singer, Mary Poppins, & The Lion King Popular musicals include: Spring Awakening, Bloody Bloody Andrew Jackson, & Rock of AgesSimmons Choices 3 7Back Stage (19305966); 2/12/2009, Vol. 50 Issue 7, p10-11, 2p, 1 Color PhotographBroadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. http://www.theatermania.com. 8. Seasonal Factors Highest grossing months include:December and April A steady increase in total sales leadingup to December Seasonality of Total Broadway Ticket Sales Fall show openings occur in November Theatergoers are purchasing tickets for holiday gifts Steady increase after the holidayseason leading up to April Spring show openings occur in April Tony award nominees are announced in the spring 8Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. . 9. Changes in Consumer Relationship Change from Broadway star to main stream stars on Broadway Original Broadway stars include: Bernadette Peters, Angela Lansbury, PattiLuPone, Julie Andrews, Fred Astaire, Gene Kelly, and Ben Vereen New Actors to Broadway include: Catherine Zeta Jones, Dane Cook, JuliaStiles, Daniel Radcliffe, Laura Linney, Brooke Shields, and Christina Rucci A focus on musicals appropriate for child audience Popular titles include: Cats, Beauty and the Beast, Shrek, The Addams Family, The Lion King, Mary Poppins, Spiderman: Turn Off the Dark9"Broadway: The American Musical . Stars Over Broadway | PBS." PBS: Public Broadcasting Service. Web. 23 Oct. 2011. .Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. . 10. Internal Industry Trends 10 11. Top Ten Broadway HitsRankShow Name GrossAvg Tkt Price Broadway RunPerformances1 Phantom Of The Opera $770.0M $76.75 24 years* 92832The Lion King $699.1M$104.85 15 years* 51973 Wicked $467.6M$108.909 years* 27184 Beauty & The Beast $429.2M $86.2014 years 54615Mamma Mia $416.9M $83.14 11 years* 35606Les Miserables$406.3M $80.7617 years 66807Chicago $377.4M $77.72 16 years* 56128Cats$366.4M $59.5619 years 74859 The Producers$288.4M $67.48 7 years 250210 Miss Saigon $285.8M $65.7111 years 4092*Denotes a Presently runningshow Disney has been successful on Broadway after producing six Broadwayshows including: Beauty & the Beast, Tarzan, The Lion King, MaryPoppins, Aida, and The Little Mermaid. Disney has produced two productionsthat rank in the top 4 major hits in Broadway history. 11"15 Biggest Broadway Hits of All Time." CNBC. CNBC, n.d. Web. 22 Oct 2011. . 12. Trends in Spending 2010 2011 SpendingBroadway Spending Direct SpendingTotal Impact (million $)(million $)Spending by Broadway $5,192.2$7,700.1TouristsShow Expenses$949.2$2,048.5Theatre Expenses$34.6 $51.4Total$6,175.9$9,800.1 Broadway positively impacts New York Citys economy Broadways substantial economic contributions strengthens the ties with citycommunity12The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. . 13. Trends of Growth 2010-2011 produced record high gross with a 5.9% increase from previous year 2010-2011 attendance grew 5.4% from last year 13The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. . 14. Current Positioning Broadways main objective is to sell tickets Broadway positions towards tourists over Manhattan locals Producers will open productions with familiar titles to draw in tourists Directors will cast familiar actors/actresses to draw in tourists Broadway aims to provide entertainment for all ages that may appeal to a massaudience with a wide genre of productions Heavy users attend 6+ live events per year (6%) 14The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. http://www.broadwayleague.com. 15. Research Methodology 15 16. Goals & ObjectivesThe goal of this study is to determine why the secondary target audiencecoupleswith children or planning to have children between the ages of 25 44is notattending Broadway as often as the primary target audience which includescouples, families and individuals 45 years of age and older. Given the high attendancerate of the primary target audience, we chose to focus on the variables that negativelyimpact the next largest audience in hopes that it will increase that segments attendance.The objectives of this study are to increase annual Broadway attendance ofsecondary target market and subsequently increase annual revenue and ticket sales forBroadway. Additionally, the study aims to discover a better understanding of theattitudes and purchasing habits of the secondary target market.16 17. Type and Intent of StudyThe situational analysis using secondary research from Simmons Choices3, Playbill.com, Theatermania.com, and Broadwayleague.com will assist with the intentof the Broadway study. The research will aim to get a better understanding of theoverall entertainment and Broadway industries and to understand the attitudes andbuying habits of the primary target audience.The survey analysis using primary research by surveying the secondary targetsattitudes toward Broadway will show results that can assist with recommendations andconclusions. The primary research will aim to understand the attitudes and buyinghabits of the secondary target market and determine factors that may or may notincrease or decrease the attendance of Broadway performances.1st2nd 17 18. Definition of Population & MethodologySample size: 42Gender: Males & FemalesAge Range: 25 44Martial Status: AnyChildren: Planning to have or currently have one or more childrenGeographic Region: New York, New Jersey, Pennsylvania, Connecticut and Lyon, FranceEthnicity: African American, Asian, Caucasian, Hispanic and Multi-Racial From November 10th 2011 to November 27th 2011, 43 surveys were administered to occupants ofthe general Northeast area in 4 different locations. Survey questions were chosen based on a situationalanalysis of the entertainment and theater industries and their relevance to the goal of this study. Intotal, 43 questionnaires were distributed and 42 were deemed valid, representing a usability of 98%.Preliminary questions were asked to ensure each survey taker was within the secondary target marketpopulation. Survey questions were asked to determine factors that inhibit Broadway attendance. 18 19. Questionnaire DevelopmentSurvey Objectives To discover the factors that most influence the buying and spending habits ofBroadway-goers in either a negative or positive way.Data Collection Method Most of the surveys were self-administered. A few surveys were administered viaemail. Potential survey-takers were screened to determine whether they hadchildren, and if not, were excluded from the study.Individual Question Content To remain unbiased and objective, various attitude questions were asked, using thesemantic differential method. This method demonstrated the level of attention ofsurvey-takers. Various, nominal, ordinal, interval, and ratio questions were asked.Ratio questions were asked to limit the inability to respond.Question Wording and Sequence Objective wording was used to avoiding leading respondents to a desiredresponse. The sequence of survey questions were ordered from broad to detailed andended with demographic questions. 19 20. Primary Research Analysis20 21. Segmentations & Target Market ChoiceThe research objective tosurvey both men and womenwas met. Findings showthat there were slightly moremen surveyed then women.21IBM SPSS Statistics 22. Segmentations & Target Market Choice69.04% of the surveypopulation areCaucasian. Thisstatistic is consistentwith the target marketdefined in thesituational analysis.22IBM SPSS Statistics 23. Descriptive Survey Analysis From the people surveyed: 5 earn less than $40,000a year. 22 earn between $40,000to $80,000 8 earn between $80,000to $125,000 5 earn between $125,000to $200,000 2 earn more than$200,000 23IBM SPSS Statistics 24. Segmentations & Target Market ChoiceFrom those surveyed: 19 have 1 child 14 have 2 children 7 have 3 children 1 has 4 children 1 has more than 5 children 24IBM SPSS Statistics 25. Segmentations & Target Market ChoiceOut of those surveyed, thevast majority (78.57%) hadattended a Broadway show inthe last 12 months. Althoughtheir past attendance does notdetermine their futureattendance, this shows thatmost of those surveyed have aprior interest in theater. 25IBM SPSS Statistics 26. Means AnalysisStatements MeanThe cast of Bway determines my desire to3.67attend.I am likely to recommend a Bway show. 4.60Advertising for Bway influences my choice 3.68of show.Theater-goers are indifferent towards aI go to Bway because my family wants to 3.52 Broadway shows cast (11.9%), influence ofgo to Bway.I research Bway ticket prices before4.00advertising (19%), researching ticket prices1-7 choosing a show.(9.5%), and attending Broadway based onI attend Bway because I want to.4.74familys wants (2.4%) and special occasionsI only see Bway shows for special 4.26 (11.9%). The above values indicate theoccasions.After attending a show I dislike, I will 4.19 percentage of the median responses. Of thecontinue to attend Bway in the future. survey-takers, 54.7% responded any disagreeI am satisfied with the price of my Bway3.14 that they are satisfied with their ticket price.tickets.Makes me feel valuable.3.43 The results also showed that 57.1%Makes me feel wise.3.52 responded any agree to recommending aMakes me feel pleasant.4.33Broadway show and 61.9% to attendingMakes me feel nice.4.21Makes me feel agreeable. 3.36 Broadway because they wanted to.1-5 Makes me feel happy. 3.98I find Bway positive. 4.26I find Bway exciting. 3.81I find Bway affordable. 2.26I find Bway stimulating.3.14 26IBM SPSS Statistics 27. Correlation AnalysisCorrelated Statements from Survey QuestionsThe cast of Broadway influences my desire to attend.0.586I will attend Broadway in the next 12 mos.I seek out new productions on Broadway. 0.546I will attend Broadway in the next 12 mos.I only see Broadway shows for special occasions.-0.803 Attended Broadway last 12 months.I attend Broadway because I want to.0.797I am likely to recommend a Broadway show.I will continue to attend Broadway after being dissatisfied.0.545I am likely to recommend a Broadway show.Broadway makes me feel wise.0.532I am likely to recommend a Broadway show.I find Broadway to be exciting. 0.587I am likely to recommend a Broadway show.I find Broadway to be exciting. 0.587I am likely to recommend a Broadway show.Broadway makes me feel nice.0.542I am likely to recommend a Broadway show.I attend Broadway because I want to.0.570I find Broadway to be exciting.Broadway makes me feel wise.0.600I find Broadway to be exciting.Broadway makes me feel valuable.0.571Broadway makes me feel wise.Broadway makes me feel valuable.0.581Broadway makes me feel useful.Broadway makes me feel wise.0.620Broadway makes me feel useful.Statements from the survey results were rated. Using SPSS, the data was able to be correlated for similarity. Negative correlations indicate an inverse relationship between two statements. For example, when the survey taker agreed that they only see Broadway show for special occasions, they did not attend Broadway in the last 12 months. Strong positive correlations indicate that both statements are likely to happen together. When theatergoers attend Broadway because they want to, they are also likely to recommend a Broadway show.27 IBM SPSS Statistics 28. Correlation AnalysisCorrelated Statements from Survey QuestionsI attend Broadway because I want to. 0.537 I find Broadway to be positive.I am dissatisfied after going seeing a Broadway show. -0.621 I find Broadway to be positive.Broadway makes me feel wise. 0.590 I find Broadway to be positive.Broadway makes me feel pleasant. 0.505 I find Broadway to be positive.I am dissatisfied after going seeing a Broadway show. -0.622 Broadway makes me feel nice.Broadway makes me feel valuable. 0.509 Broadway makes me feel nice.Broadway makes me feel wise. 0.568 Broadway makes me feel nice.Broadway makes me feel pleasant. 0.795 Broadway makes me feel nice.Broadway makes me feel wise. 0.634 Broadway makes me feel pleasant.Broadway makes me feel useful. 0.547 Broadway makes me feel pleasant.I am dissatisfied after going seeing a Broadway show. -0.653 Broadway makes me feel pleasant.I will continue attending Broadway after being dissatisfied. 0.508 I attend Broadway because I want to. The above statements are additional correlations that were found using SPSS. The correlations are made through the attitudes of the survey takers. When Broadway makes the target feel pleasant, the target also feels nice. When the target is dissatisfied after going to see a Broadway show, the do not feel pleasant. 28 IBM SPSS Statistics 29. Regression Analysis: Satisfaction IVDVFeelpleasant IVDissatisfaction FindBwaypositive Satisfaction is dependent upon the theater-goers perception of Broadway. When thetheater-goer does not feel pleasant towards Broadway or find Broadway positive, thendissatisfaction occurs. Feeling pleasant has a significance of .012 and finding Broadwaypositive has a significance of .011. These high significances support our interpretations ofBroadway dissatisfaction.29IBM SPSS Statistics 30. Regression Analysis: Future AttendanceIV DV Cast I will attend Bway inthe next 12 mos.IVAttendlast 12 mos. Future attendance of Broadway is dependent upon the cast of the Broadway show. Attending a Broadway show in the last 12 months does not affect future attendance. The casts of Broadway hold a significance of .002, while the previous attendance has a significance of .010.30IBM SPSS Statistics 31. Regression Analysis: Future Attendance DVIV After disliking a BwayI attend.508 show, I will continue to Bwayattend Bway because Iwant to After a theater-goer experiences dissatisfaction from seeing a Broadway show, they are still likely to attend Broadway in the future. With 99% confidence, future attendance is dependent upon theater-goers attending Broadway because they want to. The dependent variable has a beta coefficient of .508.31IBM SPSS Statistics 32. Regression Analysis: Word of MouthDVIVI go to .596I am likely to recommendBway a Bway show because Iwant to Word of mouth affects the future attendance of Broadway. The likelihood of a theater-goer to recommend a Broadway show is dependent upon the theater-goer attending Broadway because they want to. The beta coefficient is .596. There is a 100% confidence level in the relationship between independently attending Broadway and their recommendations to others. 32IBM SPSS Statistics