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S9 ENTERTAINMENT CONSULTANTS. HEZEK BUSHERI ANETA FILICIAK RAVI AKULA. Title Page. VALUE PROPOSITION. We provide non-for-profit (NFP) organizations with new avenues for fundraising services helping them meet their organizational mission and objectives. PRODUCTS & SERVICES. - PowerPoint PPT Presentation
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S9 ENTERTAINMENT CONSULTANTS
HEZEK BUSHERIANETA FILICIAK
RAVI AKULA
Title Page
We provide non-for-profit (NFP) organizations with new avenues for fundraising services helping them meet their organizational
mission and objectives
Specialized Entertainment Services Customized Specific to the Cause &
Turn-key Event Fundraising Services
VALUE PROPOSITION
PRODUCTS &
SERVICES
Problem
NFP
FU
ND
RA
ISIN
G C
HA
LLN
GES
Insufficient Operating Funds
Operating Costs
Dependence on Single Funding Source
Lack of Human Resources
Lack of Operational Skill
Fragmented Fundraising Efforts
Low Visibility Events
Competition for Funds NOT ENOUGH MONEY
NOT ENOUGH RESOURCES
NOT ENOUGH VISIBILITY
Market Opportunity – Non-For-Profit Sector
CANADA
165,000 NFPs and Charities in Canada2M people employed (11.1% of the population)
$106B in revenues (7.1% of the GDP)
ONTARIO
50,905 NFPs and Charities in Ontario 297K people employed
$67B in revenues
Ontario NFPs report average revenues of more than $1.3M One-in-four (~13K) say that they took in less than $25,000 of revenue last year 69% of NFPs use special events as a source of fundraising where the content of the event is not directly linked with
the cause (i.e. marathons) 75% of organizations find it challenging to meet the organization’s mission and objectives due to insufficient funds
MARKET OPPORTUNITY
38K NFPs
Market Opportunity – Entertainment Industry
*http://www.fastcompany.com/1794113/live-music-needs-tuneup-entice-audiences-tomorrow
THERE EXISTIS AN OPPORTUNITY TO PROVIDE NFPs WITH NEW AVENUES FOR FUNDRAISING BY PROVIDING SPECIALIZED ENTERTAINMENT SERVICES
Social events centered around live music entertainment are on the rise Concert ticket sales have tripled over the last decade in NA (~$5B) 37% of fans are expected to attend more concerts YOY in 2013
Ontario represents 80% of the live entertainment industry of Canada
People place a higher and higher value on authentic live interaction than ever before and are willing to pay for it*
S9 EC Solutions
PRODUCT
Specialized Entertainment Services Customized Specific to the Cause
Supported by the NFP
SERVICE
Turn-key Event Fundraising Services
Increased engagement driven by content directly linked to the cause
Unique Customer Experience leads to increased demand
Minimized touch points for the NFP Frees up NFP resources to focus on
delivering programs and services Combined marketing efforts increase
visibility of events
SOLUTIONS NFP BENEFITS
Product Examples
GOAL: ESTABLISH AWARENESS
Scenario: Live Concert Audience Profile: Broad
Audience GroupRevenue Sources: Ticket Sales & Donations ($$)
GOAL: DRIVE ACTION
Scenario: Interactive Engagement
Audience Profile: VolunteersRevenue Sources: Donations
($)
GOAL: DEEPEN ENGAGEMENT
Scenario: Performance Theatre
Audience Profile: Committed to the Cause
Revenue Sources: Ticket Sales & Donations ($$$)
Working together with the NFP, S9 EC will develop a customized event where the content theme is based on the issue or cause
The event type will be driven by the goal that the NFP wants to achieve:
COMMUNITY
Business Model
NFP S9 EC
CORPORATE SPONSOR EVENT
ATTENDEES
SPECIALIZED ENTERTAINMENT
EVENT
Funding from Corporate
Sponsor to NFP
S9 EC Cost + Premium
Costs to Market Event to the Community Costs to Market
Event to the Community
Costs to Design, Plan and Execute Event
Ticket Sales
Revenue from Ticket Sales is Shared Between S9 EC and NFP and All Donations Go to NFP
Donations
Donations
Increased Branding
Competitive Landscape
Type Advantages Disadvantages Our Advantage
Other NFPs
Corporates
Experienced in organizing fund raising events (runs, climbs, etc.)
Established network of stakeholders
Overwhelmed by effort in organizing these events
Community’s motivation to participate is not necessarily inspired by the cause
Significant internal resources used to select NFPs to support
Dense corporate bureaucracy extends timelines
One-stop shop that creates content, organizes and markets entertainment shows
Provides richer entertainment experience to participants inspired by fund raising cause
Become the hub to market small scale NFPs to Corporates looking to support their cause
Allocate and mobilize resources to scale their fund raising events and provide richer experience
Access to corporate funds
Marketing Plan
Customer Type Acquiring Customers Channels Communication
NFPs• Sales team to build
relationships with NFPs and other stakeholders
• Product will be delivered via web and local venues
• Push strategy to engage and collaborate with NFPs
• Invite NFPs to attend our gigs to experience our products/services
• Word-of-mouth advertising • Articles by media and
journalists
End Consumers
(Event Attendees)
• Leverage digital channels and social media to build interactive relationship with our end customers
• Tickets will be sold online through our website
• Direct Marketing using Pull strategy
• Web site (and a blog) to convey our brand, identity, story and product offerings.
• Display ads on social media and music events websites
• Tools such as Virool and SEO optimization
Pricing Structure & Models
Pricing Model 1 – With Corporate Support
Pricing Model 2 – Without Corporate Support
• Price for NFP follows Cost-Plus Model for events
• Plus = ~30%• Revenue Sharing of Ticket
Sales = ~20-30% / 70-80% split S9 EC / NFP
• 100% Donations go to NFP
• Price for NFP follows Discount Model for events
• Discount = ~0-50%• First Claim to Revenue for
Cost Recovery of Discount • Remaining Revenues are
Shared between S9 EC & NFP• 100% Donations go to NFP
Adv No financial risk to NFP or S9 EC Free reign over the content and event format
Disadv Possible constraints on the event format and content from the Corporate Sponsor
Financial risk for NFP and S9 EC of not recovering costs
Financial Overview
ASSUMPTIONS Approved for $500K
loan for start up $150K annual salaries
($50K x 3) Costs of marketing
events = 20% of the total event cost
1 additional resource in Q3 – Y2
2 additional resources in Q3 – Y3
Average premium above costs = 30%
Revenues sources from events start:
Small Q3 – Y1 Medium Q3 – Y2 Large Q2 – Y3
Revenue from Ticket Sales = Event Costs
Q1
- Y1
Q2
- Y1
Q3
- Y1
Q4
- Y1
Q1
- Y2
Q2
- Y2
Q3
- Y2
Q4
- Y2
Q1
- Y3
Q2
- Y3
Q3
- Y3
Q4
- Y3
Q1
- Y4
Q2
- Y4
Q3
- Y4
Q4
- Y4
Q1
- Y5
Q2
- Y5
Q3
- Y5
Q4
- Y5
-$200,000-$100,000
$0$100,000$200,000$300,000$400,000$500,000$600,000
Cash Inflows Cash Outflows Net Cash
Losses in Year 1 ($167K) and Year 2 ($77K) Break-even in Q1 of Year 3 Consistent growth in income in Year 3 onward (Y3 - $115K, Y4 - $294K, Y5 - $492K)
Management Team
HEZEK BUSHERI 10+ years music production and
live entertainment experience 4 years experience as a
recording studio engineer 6 years management experience Energy consultant for Ontario
ANETA FILICIAK Professional consultant
experienced with solving ambiguous business problems
5+ years experience with visual production and digital marketing
Financial management expertise
RAVI AKULA Exploring human centered
design to solve complex social problems
IT project manager serving MNCs in US and Canada
Supporting organizations helping children with special needs
VINCE BREWERTON CEO Imagico Inc. Helped many not-for-profit and
public sector organizations grow Advisor at CSI Strategist who helps leaders and
organizations grow
REBA JOY Development Coordinator, Right-
to-Play Develops university partnerships
and online initiatives
BRIAN G SMITH Organizing fundraising events for
NFPs Award-winning alumnus of The
Second City Created film, television, and
theatre in Canada and Barbados
Exe
cutiv
e Te
amA
dvis
ory
Team
Conclusion
We provide non-for-profit (NFP) organizations with new avenues for fundraising services helping them meet their organizational
mission and objectives
Specialized Entertainment Services Customized Specific to the Cause &
Turn-key Event Fundraising Services
WHAT
HOW
One-stop shop that creates content, organizes and markets entertainment shows which provides a richer entertainment
experienceHOW
Appendix
Financial Model
Q1 - Y1 Q2 - Y1 Q3 - Y1 Q4 - Y1 Q1 - Y2 Q2 - Y2 Q3 - Y2 Q4 - Y2 Q1 - Y3 Q2 - Y3 Q3 - Y3 Q4 - Y3 Q1 - Y4 Q2 - Y4 Q3 - Y4 Q4 - Y4 Q1 - Y5 Q2 - Y5 Q3 - Y5 Q4 - Y5Cash Inflows Loan 500,000 Event Revenue - - 19,500 26,000 26,000 26,000 58,500 58,500 91,000 110,500 156,000 91,000 123,500 175,500 208,000 188,500 221,000 253,500 188,500 266,500 Ticket Sales - - 15,000 20,000 20,000 20,000 45,000 45,000 70,000 85,000 120,000 70,000 95,000 135,000 160,000 145,000 170,000 195,000 145,000 205,000 Total Inflows - - 34,500 46,000 46,000 46,000 103,500 103,500 161,000 195,500 276,000 161,000 218,500 310,500 368,000 333,500 391,000 448,500 333,500 471,500
Cash OutflowsRent 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 SG&A 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 37,500 Other 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 Repay Loan 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 Additional Resources - - - - - - 7,500 7,500 7,500 7,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 Marketing Costs - - 3,000 4,000 4,000 4,000 9,000 9,000 14,000 17,000 24,000 14,000 19,000 27,000 32,000 29,000 34,000 39,000 29,000 41,000 Event Costs - - 15,000 20,000 20,000 20,000 45,000 45,000 70,000 85,000 120,000 70,000 95,000 135,000 160,000 145,000 170,000 195,000 145,000 205,000 Total Outflows 51,250 51,250 69,250 75,250 75,250 75,250 112,750 112,750 142,750 160,750 217,750 157,750 187,750 235,750 265,750 247,750 277,750 307,750 247,750 319,750
Income (51,250) (51,250) (34,750) (29,250) (29,250) (29,250) (9,250) (9,250) 18,250 34,750 58,250 3,250 30,750 74,750 102,250 85,750 113,250 140,750 85,750 151,750
State of the Sector Report on NFP Revenue - 2013
State of the Sector Report on NFP Revenue - 2013
Canada NRC – 2012
Source: Canada Nonprofit Research Collaborative 2012 Report
Growth in NFP Fund Raising in Canada via Events and Online
Source: Canada Nonprofit Research Collaborative 2012 Report
Sample Marketing and Advertising Channels for Entertainment
Source: Kotler and Keller – Marketing Management (14E)