Initial Analysis and Strategy for Upcoming Entertainment Co.

Diana Ye, Andrew Cho, Courtney Arena, and Ankit Kayastha

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Agenda01

02

03

04

05

Location Recommendation

Overall Market Size Over Three Years

Ticket Pricing Strategy to Maximize Profits

Creative Marketing Strategy

Conclusion and Future Recommendations

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Location: Los Angeles

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Overall 2016 US Population Breakdown by Geography

Targeted Geographic Location

Total US Population Breakdown

California 31.611MArizona 2.3387MNevada 5.4998MRest 217.5505M

State Proportion of US Population

California 0.123 MNevada 0.0091MArizona 0.0214MTotal: 0.1535M

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Estimated General Concert Attendants fromTarget States and Remaining U.S.

Age % of Potential Concert Attendees

16-17 36,90018-26 369,00027-35 177,12036-45 98,40046-55 55,35056+ 61,500Total 798,270

California

Age % of Potential Concert Attendees

16-17 6,42018-26 64,20027-35 30,81636-45 17,12046-55 9,63056+ 10,700Total 138,886

Age % of Potential Concert Attendees

16-17 2,73018-26 27,30027-35 13,10436-45 7,28046-55 4,09556+ 4,550Total 59,059

Age % of Potential Concert Attendees

16-17 253,95018-26 2,539,50027-35 1,218,96036-45 677,20046-55 380,92556+ 423,250Total 5,493,785

Nevada Arizona Remaining

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Forecasted Growth Over 3 Years

Year 1

Year 2

Year 3

0 50 100 150 200 250 300 350 400

Forecasted Growth Rate

Conc

ert A

ttend

ees

California(p=0.25) 199,568

Nevada(p=0.25) 34722

Arizona(p=0.25) 14,764

Other USA(p=0.01) 54,938

Annual Growth Rate: 10%

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Revenue

1 2 30

20

40

60

80

100

120

140

Revenue Streams

1-Day Pass3-Day Normal3-Day GroupVIP PassFood & Bev-erage

Year Number

Reve

nue

(M)

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Costs

Costs

Venue $2MArtists $1.8MEquipment Rental $1MAdvertising $500,000Labor $1.4MTotal $6.7M

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Pricing Strategy

Individual

1-Day Pass $150

3-Day Pass $400

VIP 3-Day Pass $800

GroupStudent Package 5 person 3-Day Pass

$350/person

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Marketing Strategy

1. Fanatic fan2. Three-day fan3. Headliner fan

Audience targetingNew channels

Proprietary appExciting native

creatives

Selling an experience