MARKETING MANAGEMENTPGBM15

UNIVERSITY OF SUNDERLAND

STUDENT ID: 129074768

GOKHAN SAGLAM

Table of Contents

1 Executive Summary..........................................................................1

2 INTRODUCTION.................................................................................2

3 PHILOSOPHY.....................................................................................2

4 STP.....................................................................................................3

4.1 SEGMENTATION...........................................................................................34.2 TARGETING...................................................................................................34.3 POSITIONING................................................................................................3

5 MARKETING MIX...............................................................................4

5.1 PRODUCT......................................................................................................45.2 PRICE.............................................................................................................45.3 PROMOTION..................................................................................................45.4 PLACE...........................................................................................................45.5 PEOPLE.........................................................................................................45.6 PROCESS......................................................................................................55.7 PHYSICAL EVIDANCE..................................................................................5

6 MARKETING PLANNING...................................................................5

6.1 BCG Matrix....................................................................................................66.2 Growth Strategies.........................................................................................6

7 PESTLE Analysis..............................................................................7

7.1 POLITICAL FACTORS..................................................................................77.2 ECONOMICAL FACTORS.............................................................................87.3 SOCIAL FACTORS........................................................................................87.4 TECHNOLOGICAL FACTORS......................................................................97.5 LEGAL FACTORS.........................................................................................97.6 ENVIRONMENTAL FACTORS......................................................................9

8 SWOT ANALYSIS..............................................................................9

8.1 STRENGTHS..................................................................................................98.2 WEAKNESSES..............................................................................................98.3 OPPORTUNITIES........................................................................................108.4 THREATS.....................................................................................................10

9 RECOMMENDATIONS.....................................................................10

10 CONCLUSION...............................................................................11

11 BIBLIOGRAPHY............................................................................12

1 Executive Summary

In this report market overview, competitive overview, product overview, goals and objectives, strategies, action plan and implementation schedule of Royal Court Theatre has analysed and evaluated based on specification, findings and requirement of the theatre.

Market possibilities of the Royal Court theatre has big impact in the theatre market in London because the city has second big market in the world due to audience volume. In addition, the theatre has significant audience number by comparing with other theatres` audience number. The market growth is steady. The targeted customer characteristics consist of people who are aware for our time issues, especially young, and who has low and middle income.

The strengths of the theatre can be identified that the theatre has long history and the first national theatre company. Moreover, Young Writers Festival was begun by the theatre which is the main point by producing ne plays and adding playwrights. Also, weaknesses of the theatre involve that the theatre has small seats capacity and plays who are produced by new playwrights are not trends or unknown plays. The theatre ticket prices are at low and average level prices to attract people and there is additional discounts for young people. Product concept of the theatre consist of the possibilities and problems of our time and this attitudes distinguish the product from another products.

The goals of the theatre to find new unheard voices around the world and educate them with playwright development program to present and add them in the theatre market to keep valued brand name in certain level. In addition, to present plays to audience to able to keep ticket prices as much as low. The strategy of the theatre for achieving unheard voices based on communicating with theatres around the world and applying Young Writers Festival.

The theatre plays are written by unheard voices who are creative and addresses issues of our time in their plays. Prices of tickets are acceptable by every kind of income and tickets are reachable easily. Location of the theatre is not very crowded by theatres and near the station. The theatre promote its plays through its websites, posters, raps to audience. Employees, players and playwrights are especially consist of young people and they are polite, sensitive for customer. Moreover, players and playwrights communicate with audience in bar inside of the theatre to make feel them in family. There is good quality about service and place. Correspondingly, the theatre has awarded many times about the plays, playwrights and place.

Recommendation for the theatre was related with the promotions` weaknesses which are to improve and add value of the theatre`s brand. In addition, the Digital theatre system could expand market area to present the theatre around the world and increase revenue.

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2 INTRODUCTION

The Royal Court Theatre was opened in 1871 and was demolished in August 1877.First Royal Court theatre which was the reconstruction of earlier Belgravia theatre. In addition, Belgravia was reconstruction of Former Chapel in 1870. The Royal Court theatre was rebuilt on the East side of Sloane Square and opened on the 24th of September 1888 which is still business today( Arthurlloyd.com 2013). In 1966 theatre has started to a program that consist of developing and producing the best new writings by people who are from society and under 25 years old. As follows, Young Writers Festival started in 1973 which is regular event in our time.

For the purpose of this assignment Royal Court theatre will be critically analysed, interpreted and evaluated based on findings and through aim of the organisation. To begin with, marketing philosophy of the organisation will be defined and analysed. Then Segmentation, Targeting and Positioning of the organization will be analysed due to specification of the organisation place in the market, planned and current circumstances of organization will be compared. Furthermore, marketing mix (product, price, promotion, place, people, process, physical evidence) will be analysed due to requirement of them. After marketing plan of the organization will be analysed, BCG and Growth analyses will interpreted based on internal and external findings. Then PESTLE (political, economic, social, technological, legal, environmental) and SWOT (strengths, weakness, opportunity, threads) analyses will be interpreted due to attitudes of microenvironment and macro-environment within the organization and the results will be linked to the marketing. Finally conclusion and recommendation will be determined and pointed out based on comparing of findings and information.

3 PHILOSOPHY

Royal Court Theatre`s marketing philosophy has been based on educating and adding new playwrights and to introduce new plays to customers, also, it means that it does not try to adopt its plays and context due to expectation of not targeted customer such as trends and known plays, however, its concept to be able to followed by customer who are targeted, with the help of this philosophy the theatre can achieve aware customer type which is convenient for context of plays and style of playwrights. The theatre can often produce new plays within Young Playwrights program, In addition this Young Playwrights are from around the world, Royal Court theatre communicate 70 countries` theatres to call unheard voices into West End market, young talents are being considered because they can reflect problems and possibilities of our time in the word of young people, also, young people come to the theatre to watch plays. Furthermore, young talents can be perform in long term in theatre market based on their age.

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4 STP

4.1 SEGMENTATION

Royal Court Theatre aim to achieve all kind of nationality, religion, occupation, gender, race, education, income and age group. The theatre consider about age group consideration based on policy of the theatre that to prevent interruption of performance during play by baby and most of the plays are not suitable for child who are under 14 years old based on age guidance (Royal Court theatre 2013). Targeted customers` most clear behavioural attitude can be seen to be aware of problems and possibilities of our time.

4.2 TARGETING

Royal Court Theatre want to achieve customers who are interesting in problems and possibilities of our time and have common sense for them (Royal Court theatre 2013). Furthermore, the theatre try to show to young people, situation of the world from viewpoint of international playwrights who are experiencing in problems or can reflect clearly, for this reason the theatre offer discounted tickets to young people and to achieve this aim theatre give a chance to unheard voices to educate and to present them to audience. Ticket price of Royal Court theatre could be afford by low income category customer and middle income category as well because ticket price of the theatre are between £10 and £28 which are low prices for West End theatres. The theatre do not service just play also it offer drink service from inside bar to the audiences during play (Royal Court theatre 2013). Moreover, play texts and classics is being sold to the audience at bookshop in the theatre (Royal Court theatre 2013).

4.3 POSITIONING

Royal Court Theatre has a strong position about adding new plays and creative young playwrights into the market, especially within Young Writers Festival theatre is being put in a special place at market and make its place strong from the view point of consumer. Nick Payne who has attained playwrights program of Royal Court Theatre has won Best Play at the Evening Standard Awards with his Constellations play in 2012 and he was the youngest ever winner of the award (Royal Court theatre 2013). It shows that the theatre has success in its operations which are playwrights program and to be able to present best plays and if the theatre`s playwright can qualify to get this kind of award that support its quality and make equal its position between the viewpoint of organisation and customer.

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5 MARKETING MIX

5.1 PRODUCT

Royal Court theatre service to the customer through unheard young voices with the context that point out problems and possibilities of our time (Royal Court theatre 2013). The theatre present to the customer what they want because the customer concept of it consist of awareness and who are looking for not trend plays.

5.2 PRICE

Ticket prices are compatible with customer purchase power because the prices are in low category ticket prices in comparing with West End theatres` ticket prices that the ticket price range is between £10 and £28. Moreover, even with cheap prices Royal Court Theatre can compete with other big competitors which are the big theatres of West End, However, the theatre has been get over the recent recession without big costs. It is clear that customer could be attracted by low price and it does not mean it costs to organization. In contrast, sponsors and funds can help to get over economic issues. New customers are more sensitive about price than current customers (The Chartered Institute of Marketing 2009).

5.3 PROMOTION

The Royal Court theatre is being promoting except voucher website, special offers and posters as well as by special reps beyond Sloane square, across London, through social media to the people by using as well as peer to peer marketing (Royal Court theatre 2013). Moreover, for promotion sponsorships` brand and logo is being using at all of marketing promotions (Royal Court theatre 2013). Playwrights` countries affect to attract customer who are from same country also it is the effect of customers` review. It refers that promotion is not just would be by advertising, it could be as well as plays` or playwrights` cultural, national, demographic attitudes.

5.4 PLACE

Royal Court theatre is in Sloane square where is in West End and near the Sloane square underground station, it is very easy to access to the theatre. The theatre service to the customer with two spaces which are Jerwood Upstairs and Jerwood Downstairs and there is bar and restaurant inside the building where people can eat before and after the show. The tickets are being booked at online from the theatre`s website and voucher websites, by telephone as well as at box offices which is situated in the foyer of the theatre.

5.5 PEOPLE

The employees of Royal Court theatre endeavour to make customers comfortable very politely by applying some policies inside of the building which are based on bags, cloakroom, latecomers, mobile phones, photography and children (Royal Court

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theatre 2013). It shows that the employees behave very sensitive for customers` comfortableness as well as to avoid disruptions for players` attention. Also, disruption can cause to prevent service of plays and reduce the quality. Customers can meet with the players and playwrights in the bar and they make feel the customers more comfortable and like a player who is in the game.

5.6 PROCESS

It could be said that the process of the service in Royal Court theatre is stable and include always good quality. Thus, it could be understood from awards which are received due to plays and playwrights.

5.7 PHYSICAL EVIDANCE

Royal Court theatre undergo revision in 1995 and 2000 and started to service in more safe and comfortable place to the audience. Sheridan Morley, Spectator (2013) insist that `the Royal Court is the most intelligent, sensitive and triumphantly right rebuild I have come across anywhere in world theatre`. Correspondingly, the theatre awarded Concrete Society Award, IStructE Award, RIBA Award (London Region), RBKC (Conservation and Restoration Award), RBKC (Accessibility Award), USITT Award.

6 MARKETING PLANNING

Royal Court Theatre pursue the results and requirements of SWOT analysis, targeting, positioning and marketing mix patterns as a Marketing plan to create value for targets and its returns. The main points of SWOT analysis indicate that the theatre has old history and quality brand name based on young playwright development program and its products in marketplace. However, due to low capacity and strong competitors the place of the theatre is limited because of that the theatre satisfy the targeted and current customers and consolidate its position in market. In the same way, Royal Court theatre is continue to produce new plays and add international unheard voices in the organization around the world and by pursuing this method the theatre provide cheap tickets and special offers to the customers. Advertising through social media and the other communication channel are being used as promotion by Royal Court theatre to achieve customers. The place advantage is one of the most important factor of the theatre. Too, it can be understood by awards which are won by the theatre. The theatre has polite employee who are know how to service to the customer with keeping brand name in desired quality and their return. The process of the theatre consist of quality service and specific plays by new playwrights. Also, with this method it is aimed to achieve new customer through review and feedback of current customer.

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6.1 BCG Matrix

London theatres attendance was 14.2 million in 2012 according to guardian (2012) and the average audiences of the Royal Court theatre 120,000 in every year according to YCN (2013). It indicate that Royal Court theatre has %8.45 of total theatre audiences of the London. Moreover, there is 214 theatres in London according to guardian (2012). Accordingly, the average audience number per theatre are approximately 66,355 in London based on the values that are given above. This value proof that the customer number of Royal Court theatre is almost twice of the average audience number of a theatre in London. It could be easily said that market share is high. Royal Court theatre has been performing since 50 years in London and it has quality valued brand name due to plays and playwrights development programs. That is to say, the theatre has been pursuing same organisation philosophy since it was established and the theatre improved its system for expanding around the world to add unheard voices in organization as well as in market. It shows that Royal Court theatre`s market growth is slowly and successful. As a result, the place of the theatre in BCG matrix is identified as Cash Cow.

6.2 Growth Strategies

The Royal Court theatre produce around 25 brand new plays every year (You Can Now 2013). Therefore, the theatre have been performing the playwrights development programs to be able to compete with other theatres in long term because this program is not cover in current time plays or playwrights as well as the playwrights have been advancing to produce new plays. In addition, theatre has been communicating continuous with theatres and playwrights from 70 countries and in 30 languages to add them in the organization.

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7 PESTLE Analysis

Political Economical

Social Technological

Legal Environmental

tax policy income demographic

R&D discrimination law

weather

labour law prices cultural aspects

technological change

consumer law

climate change

environmental law

saving attitudes and lifestyle

innovation antitrust law Tourism

trade restrictions

debt population growth

rapidly adaptation for change

employment law

tariffs credit age mix health and safety law

product and service safety

economic growth and recessions

ethnic

market health

educational groups

Kotler, Philip & Armstrong, Gary. (2012)

7.1 POLITICAL FACTORS

Funding for theatre industry fell by 6.3% in 2011/12 in England and Wales. Moreover, council`s spend on culture decreased £250 million, between 2010/11 and 2011/12 (Smith, A. 2012). Government spent on `theatres and public entertainment`, arts development and support has fallen as well as the funding of council-supported theatres has fallen due to budget deficit (Smith, A. 2012). Despite funding limitation, overall income of RFOs increased by 1% which equals to approximately £40 million but the real fall of public support has not yet seen to have affected spend on artistic programming, marketing and education. However, marketing and education spend are down already (Smith, A. 2012). These results shows that government has started to cut funding for entertainment industry due to current recession. Therefore, public

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have not stopped to go to theatre on the contrary they have gone more than last year.

7.2 ECONOMICAL FACTORS

Minister for Culture, Communications and the Creative Industries Ed Vaizey (Government UK 2013) announced that local authority arts spending was approximately £385,000 which is more than last year. In addition, local authorities are now major funders of arts that it spends £134 million on direct arts services (Government UK 2013). However, local authorities earn £3.83 per each £1 which they spent on arts and this value is equal £1.5 million per local authority (Government UK 2013). Minister pointed out that despite funding cut on arts there is still a supporter of arts which are local authorities. Also, they spend on arts and it brings more money on its budget as well .Furthermore, London`s audiences of theatre are a considerable value which is 14.2 million and the second highest value around the world according to guardian (2012). In 2011 £45 million has spent on arts arrangement to reach people who lives all around the country (Government UK 2013). For future planning £37 million will be spent on arts where investment in arts below average (Government UK 2013). It is clear that government is still funding on arts but less than last year and it plan to invest on arts current year. Also, based on these information it could be assumed that Royal Court theatre box office income was increased but funding cuts affected annual income. Public funding bodies of the theatre are Arts Council England, British Council for international plays and European Commission Representation in UK has been funding the theatre since beginning of the 2013 (Royal Court Theatre 2013). Andrew Lloyd Weber Foundation have been donating £150,000 to the theatre since 2012 until 2014(Royal Court Theatre 2013). Andrew W. Mellon Foundation has donated for spending $400,000 to help playwrights and to improve their skills (Royal Court Theatre 2013). Royal Court Theatre has corporate supporters and sponsors which are BBC, Bloomberg, Coutts, Ecosse Films, French Wines, Grey London, Kudos Film and Television, MAC, Moët & Chandon, Oakley Capital Limited, Sky Arts, Smythson of Bond Street (Royal Court Theatre 2013). Moreover, the theatre has business members which are Hugo Boss, Lazard, Louis Vuitton, Peter Jones, Savills, Vanity Fair, business benefactor which is Bank of America Merrill Lynch, associates which are Auerbach & Steele Opticians, Oberon Books and it has individual supporters who are major donors (Royal Court Theatre 2013).

7.3 SOCIAL FACTORS

Resident population of London is Equal to 8.2 million according to Office for National Statistics (2012). The attendance to theatre was almost 14 million in 2012 (the stage 2013). Some plays of Royal Court theatre have age limit which is over 14 years old (Royal Court theatre 2013). It refer to less customer. On the other side, it shows that the theatre`s plays fit to adults and elderly people to deliver performance of it with all realism. Education groups of the theatre`s customer specially college degrees and

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professional degrees whose behaviour mostly gentle, sensitive about happening in the world such as political, human rights, arts.

7.4 TECHNOLOGICAL FACTORS

In 1995 Royal Court Theatre was reconstructed by National Lottery and subsequently the theatre was awarded £16.2 million by Arts Council of England (Royal Court theatre 2013). Award was spent to bring innovation inside of the theatre and to reconstruct outside of the building to satisfy customers and to deliver healthy service to them and to become competitive in market.

7.5 LEGAL FACTORS

There is cloakroom and bags policy in Royal Court Theatre, all bags have to been put at cloakroom after searched by staff due to secure theatre and limited space in auditorium (Royal Court theatre 2013).

7.6 ENVIRONMENTAL FACTORS

Royal Court Theatre situated at Sloane Square in Chelsea and it is the only theatre in the square (Royal Court theatre 2013). However, the nearest theatres are at 15 minutes distance by walking. It means that the place of the theatre is not crowded with theatres and its customers as much as such Piccadilly Circus and Covent Garden. Mostly there is clubs, restaurants and bars around the theatre.

8 SWOT ANALYSIS

The SWOT analyse focus on strengths and weaknesses within the company and define opportunities and threats facing Royal Court Theatre.

8.1 STRENGTHS

Long-established theatre and first national theatre company of Britain. Furthermore, Royal Court Theatre educate and encourage young playwrights around the world who are under 25 years old and stage their plays in UK (Royal Court theatre 2013). First Young Writers festival was done first time by the theatre in 1973 (Royal Court theatre 2013). The new Royal Court Theatre opened its doors and become a strong art power and Ian Rickson said that the theatre is producing new plays than the any other theatre in Britain (Royal Court theatre 2013). Ticket prices are £12-£20, under 25s is £8 and on Mondays all tickets are £10 (Royal Court theatre 2013). Also, cheapest theatre ticket price in West End is £12 and the most expensive tickets are £127 included booking fees for premium seats according to guardian (2013).

8.2 WEAKNESSES

Despite of strong effect of playwrights programs and plays, Playwrights are from around the world and they write not trend plays and it could not attract the customers. Moreover, Royal Court Theatre work with playwrights and theatre artists in 70

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countries and in over 30 languages. However, education programmes for playwrights lasts 3 years. (Royal Court theatre 2013). Capacity of the Royal Court Theatre is 475 seats. Also, the theatre has a place in small capacity theatres category because the largest theatre of West End has 2,359 seats which is The London Coliseum.

8.3 OPPORTUNITIES

Within playwrights development program to be known around to world to achieve wide range of market. The Royal Court theatre is become a play producer company within the programs and it can present different kind of plays in less time to audiences.

8.4 THREATS

There is a big theatre market in London which is the fourth market that include 214 theatres according to guardian (2012). It means that there is so many choice to go to theatre for consumers and big competitors for Royal Court Theatre because the theatre is in the small seat capacity category. Royal Court Theatre have been presenting plays that focus on problems and possibilities of our time. It shows that plays do not involve trends, also it can cause to loss consumer who like to watch trend plays.

9 RECOMMENDATIONS

From what has been analysed in this assignment, it can be argued that Royal Court Theatre has a strong and valued brand name in market place through its creative and development programs which aim to add new plays and playwrights into the market. These programs are one of the most important strategy of the theatre by determining and implementing its long term marketing planning and strategy into the market. However, in this process the organization is communicating 70 countries but there is not playwrights in the organization from Istanbul where has 5 th biggest theatre capacity in the world, with 184 theatres according to guardian (2012), such as this example the organization should expand its reach range and should encourage, help to them, as well as with taking advantage of governments` relations to add unheard voices into organization. The organization has wide range of foundation and sponsors to get over any recession without costs but recession could affect that organizations and they could cut sponsor funds. For that reason the organization have to find different funds or new marketing plans. For example, they can use digital theatre system which is being used by some theatre that the theatre broadcast performance live to cinemas and it achieve extra revenue as well as it promote itself to different countries to able to add new playwrights into organization. The theatre have to place special emphasis on advertisement because this side of the theatre is not as it should be.

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10 CONCLUSION

As a result, Royal Court theatre discussed, evaluated, analysed, commented under the marketing requirements and subtitles which are philosophy, STP, Marketing mix, Marketing planning(BCG matrix, Growth analysis), PEST and SWOT analysis. The theatre works very well but some improvements are necessary to expand theatres` market areas in terms of revenue and to able to find new unheard voices.

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11 BIBLIOGRAPHY

Brown, M. (2012) Which city is best for culture? New research crunches the numbers. August 2012. Available from: http://www.guardian.co.uk/culture/culture-cuts-blog/2012/aug/01/city-best-culture-research-numbers .[Accessed: 6th April 2013]

Haworth Tompkins / built works. 2013. Haworth Tompkins / built works. [ONLINE] Available at: http://www.haworthtompkins.com/built/proj26/index.html. [Accessed 17 April 2013].

Office for National Statistics (2012) Census gives insights into characteristics of London’s population. Available from: http://www.ons.gov.uk/ons/rel/mro/news-release/census-2-1----london/census-gives-insights-into-characteristics-of-london-s-population.html.[Accessed: 6th April 2013]

Kotler, Philip & Armstrong, Gary. (2012) Principles of Marketing .14th ed. New Jersey. Pearson.

Marketing and the 7Ps. 2009 . Marketing and the 7Ps. [ONLINE] Available at: http://www.cim.co.uk/files/7ps.pdf. [Accessed 14 April 2013].

Royal Court Theatre (2013). Available from: http://www.royalcourttheatre.com/whats-on/the-low-road/?tab=0.[Accessed: 7th April 2013]

Smith, A. (2012) Councils’ culture spending down £250m in 2011/12.Available at: http://www.thestage.co.uk/news/2012/12/46856/.[Accessed: 6th April 2013]

Speech by Ed Vaizey, Minister for Culture, Communications and the Creative Industries - Speeches - Inside Government - GOV.UK. 2013. Speech by Ed Vaizey, Minister for Culture, Communications and the Creative Industries - Speeches - Inside Government - GOV.UK. [ONLINE] Available at:https://www.gov.uk/government/speeches/speech-by-ed-vaizey-minister-for-culture-communications-and-the-creative-industries. [Accessed 18 April 2013].

The Royal Court Theatre, Sloane Square, London. 2013. The Royal Court Theatre, Sloane Square, London. [ONLINE] Available at:http://www.arthurlloyd.co.uk/RoyalCourtTheatreLondon.htm. [Accessed 18 April 2013].

 West End theatre tickets more expensive than ever, says the Stage | Stage | guardian.co.uk . 2013. West End theatre tickets more expensive than ever, says the Stage | Stage | guardian.co.uk . [ONLINE] Available at:http://www.guardian.co.uk/stage/2013/apr/05/west-end-ticket-price-discrepancy. [Accessed 08 April 2013].

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