Case Statement:
Your client is BookMyShow, and they are planning concerts in India featuring the artist Arjit Singh. The concert tour is to be spread over 2.5 months. Estimate how this will happen, what revenue they will earn, and how they will plan the tour.
I: Your client is Bookmyshow, and they are planning concerts in India featuring the artist Arjit Singh. The concert tour is to be spread over 2.5 months. Estimate how this will happen, what revenue they will earn, and how they will plan the tour.
C: Before proceeding with the case, I would like to know if there’s a specific reason we're choosing Arjit Singh, or are we open to considering other artists? Also, could you clarify the revenue target for this endeavor?
I: The revenue target can be as high as possible; we aim to maximize earnings. For now, only consider Arjit Singh.
C: Are there any competitors in the market, and could you provide information regarding the year and location for this tour?
I: The location can be chosen by you, and the year is 2023. There is no specific information available about competition.
C: Do we have any other commitments or ongoing events during the same period as the concert tour?
I: There are regular events that are ongoing. Additionally, could you please list the different revenue sources that Bookmyshow can potentially have?
C: Bookmyshow can potentially earn revenue from ticketing, merchandise sales, and advertising.
I: Let's dive deeper into the ticketing source.
C: Alright, I believe I have enough information to start the analysis. If we decide to proceed, we'll need to assess the market attractiveness, capacity, feasibility, and risk factors. For market attractiveness, we'll look at the market size, considering factors such as the number of cities, seats, and concerts. Do we have any data on past concerts we've organized and the number of cities covered?
I: Before we go into that, can you suggest the factors you will consider while choosing any city?
C: Factors to consider will include the city's capacity to hold the optimal number of attendees, the political environment, demographics, past concert hosting history, vendor availability, and ease of reach.
I: Would you like to define how you'll calculate the predicted revenue?
C: I will calculate predicted revenue by multiplying the number of cities, seats, concerts, seat utilization, and the price mix.
I: Good, now let's consider the concert details. There are 4 concerts happening in Mumbai on Friday, Saturday, Tuesday, and Thursday. Two will be in Navi Mumbai and two in Mumbai city. In Mumbai city, there are 20,000 seats in the auditorium with 90% utilization, and tickets are priced at 2000 Rs. The ones in Navi Mumbai have 10,000 seats, 90% utilization, and 1500 Rs. per seat. Calculate the revenue for this.
C: Just to clarify, is the revenue and utilization going to be the same across Friday and Saturday versus Tuesday and Thursday?
I: For simplicity, let's assume that the mentioned factors remain constant.
C: Alright, the revenue calculation for this city will be 2 * (20,000 * 0.9 * 2000 + 10,000 * 0.9 * 1500)
I: Great, now if this is the revenue for one city, how will you extrapolate it across different cities?
C: Assuming the tour is 2.5 months or 75 days with a concert every 3rd day, we'll have 25 concerts in total.
I: Okay, for now, consider that you can either cover 10 cities with 2 concerts each or 6 cities with 4 concerts each. Which option would you choose?
C: Okay, but for now let’s consider that either you will be covering 10 cities having 2 concerts each or 6 cities 4 concerts each. Which one will you choose.
I: I would choose to cover 10 cities with 2 concerts each because this allows us to reach more potential attendees, capitalize on differential pricing in cities, and optimize vendor availability.
C: Now that you have a sense of scale and revenue sources, try defining the costing side. Also, list down a few marketing avenues that can be leveraged to amplify the events PR.
I: To define the costing side, we can analyze the value chain of the event, considering factors such as the capacity of the auditoriums, pricing, potential sponsors, vendor availability, and the accessibility of the cities.
C: Moreover, to amplify the reach of the event we can organize precursor events in different cities, can collaborate with local marketing vendors for carrying out offline campaigns, and can leverage web to design specific PR campaigns
Background Information:
Company: Online ticket seller platform, which also operates as an event metasearch engine
Competitor: No specific information
Consumer: Fans hailing across the market spectrum
Offering: Concert tour of Arjit Singh, spread over 2.5 months
Case recommendations:
Would recommend covering 10 cities with 2 concerts each because this allows the client to reach more potential attendees, capitalize on differential pricing in cities, and optimize vendor availability
To amplify the reach of the event we can organize precursor events in different cities, can collaborate with local marketing vendors for carrying out offline campaigns, and can leverage web to design specific PR campaigns
