The Secret Garden Party - Research Paper Example

? The Secret Garden Party Table of Contents Table of Contents 2 Introduction 3 Background- Secret Garden Party 3 External Environmental Analysis 4 PESTLE 4 Customer Trend Analysis 6 Porter Five Force 7 Competitor Analysis & Music Festival Industry & Market Trend 8 External Environmental Analysis (SWOT) 9 Options for Growth 11 Marketing Strategy 12 The Key Strategic Issues 13 Conclusion 14 Reference List 15 Introduction In this paper, the researcher will conduct strategic analysis of Secret Garden Party/Secret Productions in order to understand the business environment and positioning of the company. Environmental analysis of the company will be the core theme of this paper while conducting market analysis would help the researcher to find probable challenges that might be faced by the Secret Garden Party in 2014. On the other hand, findings of the study can be used by the company to recruitment of new visitors as well as monetising the involvement of interested consumers that do not physically, attend the festival. Before going to the main discussion, the study will try to understand background of the company. Background- Secret Garden Party Secret Garden party is an arts and music festival that is held annually in the last week of July. The program is conducted in Abbots Ripton which is nearby Huntingdon, Cambridgeshire. Fred Fellowes was the man who had established this alternative music festival program. In its inception or inaugural, the program was attended by a meagre thousand visitors in 2004. By 2013, the program was conducted in four stages and was viewed by almost a massive audience of thirty-two thousands. The organization follows the motto of ‘principle of participation’ in expanding the scope of its programs (Weinstock, 2010). Brand development process Secret Garden party can be explained by using Aaker’s (2011) brand categorization model. Considering the research work of Aaker (2011), it can be said that Secret Garden party categorized its service offering in terms of vividness, subject diversity and wide range of entertainment options. According to Aaker (2011), firms can develop supercategory in the mind of customers by adding niche quotient in the positioning statement. Secret Garden Party also established separate brand positioning by engaging wide range of performances, action camps, variety of performers and art installations etc (Weinstock, 2010). External Environmental Analysis In this section, the researcher will analyze external environment for Secret Garden party with the help of PESTLE, competitor analysis and porter’s five forces while internal environment can be analyzed with the help of SWOT analysis. PESTLE Political The government of U.K. is supporting music and entertainment industry of the country by providing them tax benefits; legal support etc and these steps have been taken by the government to boost the competences of the American cultural and tourism industry sectors (Arnold, 2008). Therefore, it can be said that music festival organizing companies in UK have the opportunity to expand its business in politically supportive environment. Economical A national music and arts festival conducted is included in the nation’s tourism and cultural industry. It is found that the festival market has expanded in U.K., both in terms of scale and scope of its operations. The extent of competition in the festival market in U.K. has substantially increased. Nurse (2004) also found that UK economy is characterized by strong economic growth and stable per capita income. Rise of participants’ numbers in music festivals of Secret Productions is also supporting the fact that certain segment of customers of UK has the sufficient disposable income to afford fees of music festival organized by entertainment companies. Social The social impact created by an event of entertainment is directly proportional to the scale and the size of the event. Figure 1: Social Impact of Event Management Programs (Source: Nurse, 2004) Consideration of research works reveals the fact that Hutchens (2009) and Slack and Nigel (2005) reveals the fact that consumer trend and choices of UK customers change rapidly with structure, layout and form of music festivals. Therefore, music festival companies need to experiment with artists crieteria, number of shows, hosting etc in order to meet requirements of audience. Technological It is evident from the report of Weinstock (2010) that the country lacks in providing technological support to people who are unable to physically attend the concerts due to non availability technological evolution on the field. Consideration of research of Simon (2003) reveals the fact that live music performances got the chance to integrate state of art technological support to engage customers through sound effect, vibrant lighting and special effects. Therefore, it can be said that music festival companies have the scope to utilize technological resouces like online video streaming, online broadcasting etc to increase popularity of music festivals among people who are unable to physically attend the concerts. Environmental Environmental Protection Act, 1990 is being used in order to protect sound pollution. According to Noise Council (1995), sound concerts are allowed to raise sound of the speaker up to certain decible levels. In such context, music concerts and public music festivals in UK has to follow sound pollution norms in order to ensure environmental sustainability. Legal From legal perspective, Arnold (2008) stated that music concerts in UK need to follow legal norms of UK government regarding position of the concerts, sound pollution, duration etc. In such context, music festival companies in UK can take help of domestic judiciary system for any kind legal inconvenience. Customer Trend Analysis After the beginning of the recovery period in the crisis market from 2010 the aggregate consumer spending in the entertainment industry in U.K. ahs increased by almost 2.2%. Figure 2: Global Trend in the Consumer and Producer Spending (Source: PWC, 2011) The non digital spending in entertainment of the consumers has increased by 3.3% in 2010 (PWC, 2011). Thus Secret Productions should try to grasp this booming market share in its profit. On the other hand, it is evident from the report of Weinstock (2010) that demand for alternative music festival program is growing among UK customers and data analysis shows that customer base for Secret Garden has increased 30 times in last 10 years. According to report published by PWC (2011) customers aro showing more inclination to online video streaming and enjoying music festivals through online video podcasting. Even, customers also showing penchance for enjoying music concerts through Smartphone applications (PWC, 2011). Therefore, music festival organizations need to think about the mentioned customer trends while making the businerss strategy in UK. Porter Five Force Porter (1980) five force model can be used in order to understand competitive environment for Secret Garden Party/Secret Productions. Table 1: Porter Five Forces Buyer Power Buyer power in the music festival market is high due to large availivility of choices and low switching cost. Supplier Power Abundance of suppliers supplying paper, music equipments, infrastructural supports have increased choice options for music festival organizations and decreased supplier power subsequently. Threat of Substitute Online streaming and online video podcast of music festivals are becoming potential substitute to physical presence based music festivals. Hence, threat of substitute is moderate. Threat of New Entrant Establishing a music festival is not high cost intensive process and entry barrier in the market is not very high hence threat of new entrant is significantly high in the industry. Competitive Rivalry Very high due to presence of multiple music concerts like The Northern Darkness, Seaside Rock, Dumbfest Music and Comedy festival in Hampshire etc having almost equal offering and resouces.   (Source: PWC, 2011; Weinstock, 2010) Competitor Analysis & Music Festival Industry & Market Trend Direct competitors for Secret Garden Party/Secret Productions are he Northern Darkness, Seaside Rock, Dumbfest Music and Comedy festival in Hampshire, Blackburn Festival, Arabian Nights Festival etc while electronic music festivals and online music podcasts are indirect competitors for Secret Garden Party/Secret Productions (The Festival Calendar, 2013). On the other hand, more than 20 music festivals are being organised in different parts of UK which is showing the intensity of competition (The Festival Calendar, 2013). Consideration of the report published by PWC (2011) reveals the fact that music festival industry is pretty much fragmented in nature and competitors with almost equal financial capabilities, human resources are competing with each other. Therefore, it can be said that Secret Garden Party/Secret Productions is facing intense competition in UK music festival market. After the beginning of the market recovery in 2010 the gross spending in the entertainment industry has increased by almost 2.4% (UNEP, 2013). As the UNEP (2013) report, UK music festival industry has the scope to achieve double digit growth rate in future but to achieve this target, market consolidation is needed by the evolution of small numbers of market leaders. It is feared that Olympics which is to be held in 2014 could detriment the popularity of the Secret Garden Party. It is believed by the analysts that the festival market in U.K. is oversaturated. Moreover in 2013 the record braking rainfall cancelled several popular acts of pop starts like Kylie Minogue and Jason Donovans. Although some analysts believe that the bad weather is a deeper concern than the Olympics. The tickets of famous stars like Madonna are not sold at discounts as the gross demand for concert tickets have declined. The fear of cancellation of programs in case of a bad weather and the eventual loss of money is responsible for this reduced demand. Thus, at this critical juncture it becomes highly rational to analyze the strategic ways by which the Secret Garden Party may overcome all the difficulties and park more audiences with increased popularity in the upcoming event in 2014 (Kuchler, 2013). External Environmental Analysis (SWOT) Strengths The Secret Garden Party is a popular and established program in the U.K. The events are organized by the reputed event management company Secret Productions Ltd., who had already established themselves in the market with the launch of the famous Wilderness. The Secret Garden Music Festival is a multiple award winning festival. Strong popularity of the event is the biggest strength buoys the program. Thus, the reputation and growing popularity of the Secret Gardens Party help the event rule over majority of the market and overshadow its rivals in the industry. The event organizers who are employed in the Secret Productions Ltd are very dedicated and sincere in work (Moffett, n.d). The motivation among the employees is one of the primary driving forces for the event management company. The music and arts events of the festival are held are in prime locations which aid higher footfall. There are also several other kinds of events conducted by the Secret Productions Ltd. For instance, Christmas parties, private wedding parties, Astronomers Ball, Emporium Designer shows. Apart from these, the company also organizes various types of ball-dance programs like ‘Lost Lovers Ball’, ‘Bacchanalian Ball’, ‘Halloween Ball’ and ‘Brasenose College Ball’. Winter Voyage and Wyresdale Park Open Day are also famous events organized by Secret Productions Ltd. Thus, this music and arts events captures a wide range of individuals, from different income and age groups. There are a lot of partners who actively desire to assist Secret Garden in its event and share their workload thereby. Thus for its marketing or rather, the advertising plan for 2014, the Secret Garden Party organizers can always use their long learning experience for implementing efficient strategies. In order to accommodate more viewers, the Secret Productions often offer tickers of acts by the famous pop stars like Maddona and such at a discount. The company has many public relations (PR) officers, who work hard to coordinate customized events for the clients. As per the market requirements, the PR team sets the programs of the big music festivals like Secret Garden party and Wilderness Party (Secret Productions, 2013). Weaknesses The infrastructure available for the events of arts in the Secret Gardens Party Festival is very few in number. Moreover, there is no previous legacy available to the Secret Productions business. There has been a growth in the number of insular groups who only desire to reach to their own section of spectators. The organizers of the event are still not doing enough to involve the most who are unable to physically attend the programs. Thus, though the popularity of the event is growing rapidly overtime, it should not be ignored that the organizers of the event still lacks a cohesive marketing policy (Muller, 2005). Opportunities The famous pop stars that perform in the events of Secret Gardens Party can always be endorsed for setting the commercials of the programs afloat in the market. The event organizers of the Secret Garden Party can also set up partnerships with other famous event organizing companies. This would help the company merge its tangible and intangible skills with that of its partner and perform better by organizing music and arts events of higher excellence. Instead of setting the events annually, the Secret Garden Party can organize smaller music events throughout the year. Such initiative would help to built long term and sustained loyal viewers for the programs of the Secret Garden Party (Erin, Katie, and Hellen, 2011). Threats The extent of competition in the market of entertainment is rapidly growing. Individuals possess a lot of alternatives for entertainment when it is a matter of their choice. There are various sports events conducted in the U.K. (Kuchler, 2013). Secret Gardens Party is already facing competitive threat from companies like Seaside Rock, Dumbfest Music and Comedy festival in Hampshire, Blackburn Festival, Arabian Nights Festival etc while fragmented nature of the music festival market has also increased threat of new entrant for the company in discussion. It is evident from the report of PWC (2011), demand for online video portal of music festival and e-music concerts are also increasing in UK and these new substitutes of music festivals which needs physical presence of audience. Therefore, it can be said that changing customer trend regarding music festivals (showing penchance for online music festivals) can be potential threat for Secret Gardens Party. Options for Growth The Ansoff matrix given below will help to find out the various options of growth Secret Productions can adopt to grow its sales volume in future. Figure 3: Ansoff Matrix (Source: Ansoff, 1987) Products Markets Present New Present The company should organize events for the technological or communication companies like the companies broadcasting programs in the television. It should constantly upgrade the quality of its services in all the events. New It should try to improve the market popularity and program quality of Secret Gardens party. Instead of concentrating in music, dance and arts events the company should think of introducing sports events. Marketing Strategy Position Services The company should position its popularity in the U.K. market through position services. It can segment its target important clients. This can adopt the demographic mode of market segmentation. Like since it is a modern music and dance festival organizing company, its best clients would be the youth of the society. After targeting its potential market, it can set efficient commercial to attract more customers form this group of target. Organize the best of its programs for these most potential viewers. Positioning its importance among the most potential clients would provide economies to the firm for popularizing its brand value in the market. Secret Productions operates in the music and entertainment industry. U.K. being a developed economy in the world and its individuals having high per capita income possesses high disposable incomes to spend over entertainment. The business environment where Secret Productions operate in U.K. is highly competitive. This industry is claimed to contribute a lot in the cultural and social aspects of the society. It is a business environment where creativity and skills get the maximum fame. After the beginning of the market recovery in 2010 the gross spending in the entertainment industry has increased by almost 2.4% (UNEP, 2013). The Key Strategic Issues The proportions of the literate individuals in the U.K. economy have increased overtime. The average men and women literacy rate in U.K. is above 95%. Thus, empirical observations shows that the number of internet users have increased rapidly over time. Secret Productions must try to engage the internet viewers in its programs. With the help of this initiative, the company would pull in a wider base of viewers for the programs. The organizers may provide a live broadcast of the programs on its official website and may charge a certain reasonable subscription fee from the viewers accordingly. In this way, the company would not only be able to augment its revenue but would also be able to include those individuals who were deprived earlier by lack of their physical presence (Brooksbank, 1990). As the bad weather in the form of excessive rains is forcing the organizers to cancel various programs, the organizers of the Secret Garden Party may try to conduct its events in indoor stadiums. Considering the recessionary trails in the market, the organizers of the Secret Garden Party must try to lower the ticket prices or should try to provide discounts on the pricy concert tickets (IMF, 2011). The company of Secret Productions must try to enter into strategic alliances with other music event organizing companies and arrange bigger and stronger concerts together. Special catchphrases like ‘Live Long but Party longer’ may be introduced in the commercials of the programs. Considering the competition with Olympics, the company should realize that arts and music has no substitutes. If the organizers do not compromise with the quality of the programs or rather improve it, then the popularity of the festival will not fall (Westwood, 2005). In order to capture more viewers, the organizers must try to setup commercials with celebrity endorsements. The Secret Garden Party, apart from music and arts can try branching off to a dance segment which would surely help the company house more loyal viewers (Nurse, 2004). To work on the creativity and quality of programs should be the matter of primary concern in the Secret Garden Party. Conclusion It is evident from the above discussion that Secret Garden Party is facing multitude of strategic issue regarding positioning, competitive threat, capturing subscription of those audiences who might not be physically present in the concert etc. Due to such strategic issues, Secret Garden Party needs to be careful in utilizing resources while making arrangement for 2014 music festivals. In conclusion, it can be said that implementation of online broadcasting of music concerts might help Secret Garden Party to achieve market penetration but before implanting such solution, the company needs to test the optimality of any kind of strategic initiatives. Reference List Aaker, D., 2011. Strategic market management. 9th ed. Hoboken, New Jersey: John Wiley & Sons. Ansoff, H. I., 1987. Corporate strategy. 2nd ed. London: Penguin. Arnold, R. A., 2008. Macroeconomics. Connecticut: Cengage Learning. Brooksbank, R. W., 1990. Marketing Planning: A Seven-stage Process. Marketing Intelligence & Planning, 8(7), pp.21 – 28. Erin, J., Katie, J. and Hellen, M., 2011. Rock of the Woods. [pdf] Rock of the Woods Inc. Available at < http://justeezy.com/wp-content/uploads/2011/11/MarketingResearch-RockoftheWoods.pdf > [Assessed 22 October]. Hutchens, A., 2009. Changing big business: The globalisation of the fair trade movement. Camberley: Edward Elgar Publishing. IMF, 2011. 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Global Enetrtainment and Media Outlook. [pdf] PWC. Available at [Assessed 26 October]. Secret Productions, 2013. Secret Productions. [online] Available at < http://www.secretproductions.net/#/secretproductions> [Assessed 22 October]. Simon, Z., 2003. The double-edged sword: The technological sublime in American novels between 1900 and 1940. Budapest: Akademiai Kiado. Slack, N. and Nigel, S., 2005. Operations strategy. New Jersey: Pearson Education. The Festival Calendar., 2013. Music Festivals 2014. [online] Available at: [Accessed 1 November]. UNEP, 2013. Music Entertainment and Initiative. [online] Available at [Assessed 26 October]. Weinstock, L., 2010. Festival Review: The Secret Garden Party. [online] Available at: [Accessed 1 November]. Westwood, J., 2005. The marketing plan workbook. Delhi: Kogan Page Publishers. Read More