MGT 201 University of Memphis Ballet Arts Inc Strategic Marketing Plan Presentation Create Powerpoint slides for these sections and include notes in the notes section of each slide and its bullet points: SWOT Analysis, Marketing Goals and Objectives, Selection & Analysis of target market, and Promotion underneath Strategy formation. Plain white background for slides. Please do not try to put everything on one slide it needs to be neat and professional looking. Ballet Arts
Strategic Marketing Plan
Table of Contents
EXECUTIVE SUMMARY ……………………………………………………………………………………………… 2
ENVIRONMENTAL ANALYSIS ……………………………………………………………………………………. 2
EXTERNAL ENVIRONMENT ……………………………………………………………………………………. 2
Competitive Environment …………………………………………………………………………………………. 2
Economic Environment …………………………………………………………………………………………….. 4
Political Environment ……………………………………………………………………………………………….. 7
Legal / Regulatory ……………………………………………………………………………………………………. 9
Socio-Cultural Competitive Environment ………………………………………………………………….. 11
Technological Environment …………………………………………………………………………………….. 15
CUSTOMER ENVIRONMENT ………………………………………………………………………………….. 17
INTERNAL ANALYSIS ……………………………………………………………………………………………. 18
Marketing Objectives, Strategy, and Performance ………………………………………………………. 18
Internal Structure ……………………………………………………………………………………………………. 20
Internal Resources ………………………………………………………………………………………………….. 21
SWOT ANALYSIS ………………………………………………………………………………………………………. 23
STRENGTHS ……………………………………………………………………………………………………………. 23
WEAKNESSES ………………………………………………………………………………………………………… 24
OPPORTUNITIES …………………………………………………………………………………………………….. 24
THREATS ………………………………………………………………………………………………………………… 25
MARKETING GOALS & OBJECTIVES………………………………………………………………………… 26
INCREASE BRAND AND EVENT AWARENESS ……………………………………………………… 27
INCREASE YOUTH PARTICIPATION ……………………………………………………………………… 27
INCREASE COMMUNITY RECOGNITION ………………………………………………………………. 27
SELECTION & ANALYSIS OF TARGET MARKET ……………………………………………………… 27
STRATEGY FORMULATION………………………………………………………………………………………. 28
PRICE………………………………………………………………………………………………………………………. 28
Tuition/Student Fees ……………………………………………………………………………………………….. 29
Ticket Pricing ………………………………………………………………………………………………………… 31
PRODUCT ……………………………………………………………………………………………………………….. 32
PROMOTION …………………………………………………………………………………………………………… 33
PLACEMENT …………………………………………………………………………………………………………… 34
PEOPLE …………………………………………………………………………………………………………………… 36
PROPOSED ORGANIZATIONAL CHARTER ……………………………………………………………. 37
TACTICAL MARKETING IMPLEMENTATION PLAN…………………………………………………. 37
PLAN FOR CONTROL & AUDIT …………………………………………………………………………………. 38
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EXECUTIVE SUMMARY
Place holder.
ENVIRONMENTAL ANALYSIS
EXTERNAL ENVIRONMENT
Competitive Environment
Ballet Arts Inc operates in Jackson, Tennessee and has a mission to encourage and inspire
the personal growth of youth by providing access to the performance of classical ballet. The city
of Jackson is in West Tennessee, between Memphis and Nashville. The total population is about
66,903 and Jackson is part of Madison County as its largest city and the second-largest city in
West Tennessee outside of Memphis. Jackson also offers a variety of higher education
opportunities for their community, with six different colleges such as Jackson State Community
College, Lane College, Tennessee College of Applied Technology at Jackson, Union University
and the University of Memphis at Lambuth. They also have different primary and secondary
schools with the total surpassing 10 schools.1
When it comes to entertainment and arts, Jackson offers more than 28 attractions that
would be competing for customers with Ballet Arts. One of the main attractions is
the Ballpark, which is a 6,000 seat Minor League Baseball stadium, Ballpark is the home of the
Jackson Generals of the Southern League. While there is not direct competition between the
Ballpark and Ballet Arts, anything that competes for entertainment of youth and their families
could be cannibalization on the potential revenues of the Ballet.
1
https://member.jacksontn.com/list/ql/arts-culture-entertainment-3
2
The music history in Jackson is famous and has a museum of the music history,
Rockabilly is a museum that features the Southeastern famed rock-n-roll and hillbilly country
combo genre, it also offers line dance classes on Monday and Tuesday evenings to put your
moves to the music.2 People in Jackson loves music, playing up on this integral history of music
and the city, Ballet Arts could be positioned to celebrate the inextricable links between the city
and its music. Featuring local artists, genres and tastes could allow for a more eclectic audience
to enjoy and become purveyors of the arts.
On top of Ballet Arts, there are six dancing schools that could be potentially competing
with the company directly in Jackson, or at the very least occupying some of the free time
available that participants could spend with the company. Most of the 6 dancing schools offer
classes of ballet and other varieties of dance such as ballroom and hip-hop. The two of these
dancing schools that are time competing with Ballet Arts are Pat Brown and VSS dance. While
the Pat Brown School is not a direct competitor since it shares a corporate structure with Ballet
Arts, the way the two are currently positioned online would lead an outsider to believe that they
are. This will be further explained in the competitive analysis section as well as
recommendations to clarify the consumer experience and talent pipeline.
These competing dance schools charge an average of 400 dollars membership a year,
which is more expensive than Ballet Arts. Not only are other dancing schools’ competitors for
Ballet Arts but there are also private schools that offers classes of dancing as well as dance
programs that are offered by public institutions. These programs have a distinct advantage over
Ballet Arts in that the students are already enrolled at the school and it’ easier for the parents to
2
Jackson, TN
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allow their kids to remain at school and take classes rather than having to migrate them to a new
location. This convenience factor is likely the largest headwind that Ballet Arts will face as it
looks to expand beyond their current client base. The convenience factor, especially as families
and parents become busier each passing year will need to be addressed for Ballet Arts to
thrive. Ballet Arts has a great opportunity to expand their brand and to attract more kids to their
program through various education and promotional offerings. Like any brand, they have
different competitors in the market, but Ballet arts have the cost leadership as their advantages.
The opportunity is to work and develop a better marketing plan for Ballet arts in order to grow in
the market.
Economic Environment
The U.S economy has been on a long track of being one of the most successful runs in
U.S history since the start of the great recession in 2008. Since the recession the economy went
from nearly 10% unemployment to near record lows over the last few years. Unemployment
data recorded that January of 2020 the unemployment was 3.6%, this is the lowest rate since
December of 1965, which was lower at 3.5%. In January of 2020 more than 7 million people
were employed compared to November of 2016. Also, the U.S financial market has increased,
Dow Jones Industrial Average, which follows the shares of 30 major US companies. The Dow
Jones Industrial Average has been growing every year showing that companies in the US
are expanding and selling to new customer segments. In Tennessee, the unemployment rate is
3.5% against a 3.9% average in the U.S. The job market has increased by 1.8% over the last
year.
With the growth of jobs in the past year, the expectation for the next 10 years is to
grow to 41.6%, which is higher than the U.S. average of 33.5%. Tax rates in Tennessee are
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9.5%, which is a little bit higher compared to 7.3 U.S. average. But the income tax in Tennessee
is 0.0% and the U.S average is 4.6%. Tax rates can have a big impact when comes to comparing
living cost. The economy in Madison County employs 43k people. The largest industries are
Health Care (8,265 people), Retail Trade (5,937 people), Manufacturing (5,469 people).3
The highest pay industries in Madison County are Utilities ($56,250), Mining, Quarrying, & Oil
& Gas. Madison County has one of the highest wages in Tennessee. Madison County has a
median annual income of $44,496.4
The dance studio industry in the U.S has seen tremendous growth over the past 5 years to,
the industry revenues had an increase of 3.8% to 4 billion during the period, including an
estimated growth of 1.4% in 2019 alone.5 The dance industries have inspired television shows
and motivated people to leverage dance as alternative to physical activity. The most popular
dance companies are ballet and modern dance companies. These companies typically perform
during a set season, usually beginning in the fall and ending in the spring.6 The industry is
3
https://www.cnbc.com/2018/10/08/-us-inflation-is-the-worlds-most-important-economic-variable.html
https://datausa.io/profile/geo/madison-county-tn#economy
5
https://www.ibisworld.com/united-states/market-research-reports/dance-studios-industry/
6
https://www.vault.com/industries-professions/industries/dance
4
5
growing a lot in recent years, more people are getting involved for different reasons, children
do dance as recreation and starts to like over the period. The adults use dance to
exercise themselves and the tendency is to make the dance industry to grow a lot over the next
years.
In the long run, customers are optimistic because of how well the overall economy is
doing and that is reflected in rising consumer confidence levels. The economy is continuing to
grow over the last few years and volatility in the job and labor markets have remained low. The
GDP is expected to continue to grow at a solid but moderate pace in 2019 and 2020: The growth
rate of real GDP is predicted to be 2.3% in 2019 and 1.9% in 2020. When comes to
unemployment the prediction is to 3.5% in 2020 and in 2021 increase to 3.6% and 3.7 in 2022.7
According to the Gallup survey, fifty-nine percent of Americans say they are better off
financially today than they were a year ago, the highest since 1999. And most people predict that
2020 will be a better year. Another survey shows that Americans are less worry about the future
economy compared to the last presidential election.8 Therefore, costumers are optimistic about
the economic future in the U.S and customers expect the economy to be stable and better for the
future.
7
8
https://www.thebalance.com/us-economic-outlook-3305669
https://www.washingtonpost.com/business/2020/02/10/americans-feel-good-economy/
6
Tennessee has a median annual income of $52,375 in 2018, which represents a growth of
2.02%. In theory, when people have a higher income, they tend to spend more money. The
spending patterns depend on different factors such as income, culture, interest rates, wage
growth, and inflation. In Jackson, the job market growth 1.9% over the last year.9 With job
opportunities growing and people having more money, Jackson ballet has more opportunities to
spend their industry and raise more money for the organization. Jackson ballet creating new
opportunities and developing new marketing strategies will lead to attracting new customers and
sell more tickets for events.10
Political Environment
While it is difficult to determine the minutiae of the interactions between the board
members of Ballet Arts and their local political leaders there are certain political headwinds that
9
https://www.bestplaces.net/economy/city/tennessee/jackson
Causes of Consumer Spending
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7
could be construed as being positive in the long run for the company. Since in our analysis one
of the primary competitors for the firm are any events that compete for the time and attention of
parents and their children, the rolling back of funding for arts programs in the state of Tennessee
could be seen as a long-term benefit. In the 2017 version of the state’s budget, there was a
proposal to reduce the National Endowment for the Arts and Humanities, which receives over
$300M in annual funding.11 This proposal would have eliminated $10.3M from the Tennessee
section of the grant, with nearly half of this funding supporting arts in schools and subsidies for
student tickets. This could have a trickle-down impact on both Ballet Arts as well as their direct
competition since the funds made available would assist in funding both the firm and its
competitive activities through subsidization of arts programs.
There are various opportunities available to 501 (c) (3) nonprofit organizations
through Tennessee as it relates to grant funding that could serve as positive aspects of the
external environment. One such instance is the Tennessee Arts Commission that “offers distinct
funding opportunities to cultivate the arts for all Tennesseans and their communities.”12 The
commission offers their support through annual grant reviews where firms demonstrate their
value to the community, as well as potential for future collaborations as the Commission
highlights participants and opportunities for the arts throughout the state on their website. While
we know that there currently exists a relationship between Ballet Arts and the Tennessee Art
Commission, there are likely further opportunities outlined in this external analysis that could
prove fruitful to both entities. In a future state, the firm could potentially seek a deeper
11
12
https://www.tnmea.org/advocacy-news/federal-arts-funding-in-tennessee
Grants
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collaboration with the Tennessee Arts Commission to further their goals and draw more attention
to the benefits they provide to the greater West Tennessee region.
Legal / Regulatory
For an initial look at the regulatory landscape we must first consider the status of Ballet
Arts as a 501(c)(3) corporation. As a corporation within the boundaries of Tennessee, there are
state rules and regulations that are foundational to Ballet Arts to exist and conduct daily
operations. While there is a plethora of laws that govern its status, the main source of compliance
occurs within the organizations listing as a not for profit. As a non-profit 501(c)(3) there are
certain rules, regulations and structures that need to be followed by Ballet Arts in order to remain
compliant from an external perspective. Some of the most common rules and regulations that
Ballet Arts must follow in order to retain their status as a nonprofit organization. For starters, the
organization cannot be used to further their own private interests, instead the company must
strive to advance the interests of the larger population that it serves instead of its own board of
directors and employees.13
The firm cannot engage in any form of political lobbying activities, be it through urging
their members to support or oppose certain measures or endorse political candidates as this could
cause the firm to lose their non-profit status and face fines or penalties. Ballet Arts must also
ensure that it does not generate income from activities that are “unrelated to the exempt functions
of the organization.”14 This would cover activities that go beyond the scope of funding
the company’s initial charter to drive revenue and could also result in subsequent fines and loss
of 501(c)(3) status. This description is generally broad and contains anything that could be
13
14
Common 501(c)(3) Rules and Regulations
How to Lose Your 501(c)(3) Tax Exempt Status (Without Really Trying)
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construed as secondary income, such as selling space in newsletters, selling merchandise that is
not related to the company and generating money that does not further the non-profits mission.
As with any business there exists certain annual reporting standards and methodologies
that must be followed to ensure that rules and regulations are being followed. As a non-profit,
Ballet Arts must annually file a Form 990, a Return of Organization Exempt from income Tax or
a 990-EZ which is a short form return, both of which can be submit online. The 990-EZ form is
useful for firms with gross receipts that are less than $200,000 and if total assets are less than
$500,000, to the same point if gross receipts or assets are more than the listed amounts than the
firm should instead submit the longer form 990.15 Lastly, if at any point Ballet Arts determines to
shift their focus from non-profit activities to profit generating, they must re-file their charter as a
for-profit business and ensure that they pay the applicable taxes to ensure they avoid potential
litigation.16
It is additionally important to consider the legal implications of being in the business of
producing and securing rights to perform various musicals and ballets annually. There are two
important considerations at play here, those being public domain which occurs when “all
possible copyright protection expires” and generally occurs with music published before 1922.17
For a classical ballet, the performers must obtain grand rights which “cover the authorization for
musicals, operas, revues and ballets” amongst other uses.18 This license requires the licensee to
get approval and the fee is determined by variables including “total number of performances,
scope of the presentation and size of the piece.”19 Grand Rights tend to be negotiated directly
15
How to Lose Your 501(c)(3) Tax Exempt Status (Without Really Trying)
Common 501(c)(3) Rules and Regulations
17
https://www.pdinfo.com/
18
https://www.musicalamerica.com/news/newsstory.cfm?archived=0&storyid=31868&categoryid=7
19
https://www.musicalamerica.com/news/newsstory.cfm?archived=0&storyid=31868&categoryid=7
16
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