CRM Case

Case study: A country music festival
Assume that there is a “country music festival”, which is held in a regional city in a
country area. This event has been able to attract around 10,000 visitors in recent years.
While it has experienced good levels of attendance growth over its 10 year history, in the
last few years it has only achieved slight increases in attendance numbers.
The organizers of this music festival are now quite concerned about the future viability
of the event. One of the key objectives of their event is to raise money to contribute to
the local community. The initial plan was to look to generate around a $500,000 profit
each year. However, due to increasing cost factors and stagnant attendance levels, the
event is now only on track to just break-even for the coming year.
By way of background, the music festival attracts a mix of both local and visiting people
(around 50/50). This means that any potential for growth is likely to come from people
from outside the regional city. Therefore, a challenge is how to interest and attract
potential visitors from an array of geographic areas, but with a fairly limited
promotional budget.
A recent survey of attendees indicated that there was a good mix of first-time and
returning attendees, with many of the first-timers becoming aware of the event through
direct word-of-mouth recommendation by a friend
The survey also indicated that the general age group of attendees last year was
predominantly in the range of 15 to 30 years of age – which potentially indicates the
ability to grow attendees by broadening the appeal of the event?
The event organizers use a mix of promotional methods, such as brochures, posters, a
dedicated website, and they have recently started experimenting with social media
advertising.
The organizers have kept the price of entrance the same over the last 10 years, at a
relatively low level. Their thinking is that a lower price will help attract more attendees
and hopefully these people will buy food and drink at the event (which are the only
items offered for sale at the venue).
Also as the event is held over several days, the organizers are aware many people will
also incur significant travel and accommodation costs, which is another reason to try
and keep the entrance fee very affordable.
You’ve been called in as a consultant to help the organizers of a “religious music

festival”. This festival is held each year over an October weekend in a small country town
about 2-hour drive from a major city. The festival has been held for 7 years with
moderate success. However, the organizers believe that it has far greater potential.
Recent Attendee Survey Results
Attended before?
Yes = 21%
No = 79%
Age Group
Under 15 = 12%
15-19 = 30%
20-24 = 38%
Over 24 = 20%
Awareness of event
52% family/friend
18% church
15% brochure
12% web site
3% other
Attend with a group?

Yes = 74%
No = 26%
Are you religious?

Yes = 59%
No = 41%
General Background Information
Promotion Methods Used

 Web site
 Brochures sent to major church youth groups
Pricing
 Adult = $15 per day or $30 for 3 days
 Students = $10 per day or $20 for 3 days
Facilities
 Basic food/drink outlets
 No alcohol
 Some security/medical
 Portable toilets
Accommodation/Transport
 Caravans and camping within 15mins
 No transport
Environmental Analysis
Corporation
 It is important that the event maintains a religious message.
 Looking for the event to earn a profit of $100,000 plus in coming years.
 Limited/no funds to contribute now – needs to be self-supporting.
Competitors
 Other concert events are growing in popularity – likely to clash on some weekends.
 Non-music (e.g. sporting events) are competitors as well
 Increasing numbers of ‘no alcohol’ events for teenagers/young adults.
Customers
 Focus groups indicate that participants are generally satisfied.
 Travel is a concern – and need to organize their own group travel.
 Word-of-mouth recommendation appears to be the strongest reason to go.
Social
 More emphasis/acceptability of more diverse events
 More affluent teens and young adults.
 Decreasing church attendance levels.
Technology
 Virtually all teens and young adults have access to internet.
 Quality of music and sound is expected to be very high.
Economic
 Continued economic growth expected.
 Youth unemployment still expected to remain at high levels.
Political
 Big problems with public liability – will need $30,000 insurance policy next year.
 Likely to be increasing requirements on health (e.g. food), security and safety.
Using a CRM strategy try to bring about one of the best solutions for the
problem in the case study. Your task in this activity is to develop a
strategy to increase attendance for this organization’s main event.
YOUR TASK
1. You need to first identify the likely financial performance of the event for the coming
one and two years, using the spreadsheet. What is their financial/profit forecast without
a strategy change?
2. You need to identify what overall profit is required by the organizers of the event and if
there is a gap between the likely profit and the required profit, you need to identify
simple (but realistic) changes to the marketing mix elements that may generate
increased profitability. Therefore, how much extra profit will a strategy change need to
generate?
3. If there is still a financial gap, you should then look to identify a revised approach to
both their promotional approach and other marketing strategy initiatives, as well as
other potential income generating ideas. Outline a relationship-based marketing
strategy to recover this profit shortfall
4. Finally, summarize your overall strategic recommendations and how your approach will
impact the bottom-line of the event (using the spreadsheet).

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Case study: A country music festival

You’ve been called in as a consultant to help the organizers of a “religious music

Attend with a group?

Are you religious?

General Background Information

Promotion Methods Used

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