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LAURA WILLIAMS | BUSINESS PLAN | FMP WORD COUNT: 2,849
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LIST OF TABLES EXECUTIVE SUMMARY
6-7 8-11
BRAND PROFILE
12-15
THE CONCEPT
16-17
THE CONSUMER
30-31
COMPETITORS
34-35
CONCEPT OVERVIEW KEY DRIVERS GOALS AND OBJECTIVES MISSION STATEMENT
CORE SECONDARY
TARGET MARKET SECTOR DIRECT COMPETITORS INDIRECT COMPETITORS BRAND ADJACENCY MAP SWOT USP
OPERATIONS MARKETING STRATEGY FINANCES FUTURE GROWTH STRATEGY REFERENCES APPENDICES
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18-21 22-27 28 29
32 33
36 37 38 39 40 41
42-47 48-51 52-55 56-59 60 64
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LIST OF TABLES 6
TABLE 1: CORE CONSUMER
PAGE 31
TABLE 2: SECONDARY CONSUMER
PAGE 33
TABLE 3: DIRECT COMPETITORS
PAGE 37
TABLE 4: INDIRECT COMPETITORS
PAGE 38
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EXECUTIVE SUMMARY 9
Mycreamfields is an app that is complimentary to the Creamfields festival. The festival, which is run once a year over the August bank holiday was originally started in 1998 and set out to change the clubbing world with outside DJ’s. The Festival has grown from its original roots in Winchester and is now one of the world’s leading festivals. The concept is to launch ‘Mycreamfields’, an immersive and engaging mobile app aiming to enhance and extend consumer experience beyond the festival, emphasising on pre, during and post festival activities. Change in consumer behaviour has led to a desire for more unique, engaging and memorable experiences. Mycreamfields aims to revolutionise the way in which festivals are experienced by enhancing festival-goers experience pre, during and post festival. Aiming to engage the festival goer from the moment they purchase their ticket Mycreamfields will align with the event, building excitement and anticipation.
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Each component of Mycreamfields is expanded upon in the various sections: Connect: social media compatible, Scan: Augmented reality, Creamfields: The countdown: unlock exclusive content, Festival Diary: unlock exclusive access by engaging with the Creamfields photographers, Creamfields: the reunion: purchase tickets to this exclusive event through the app. Mycreamfields can be accessed after the event and will allow the festival goer to relive moments engaging with them and building a loyal following for future years. Once Mycreamfields is established the concept can be rolled out to other festivals and events, engaging thousands more users and building on the engagement for all.
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BRAND PROFILE 13
Creamfields, the offshoot of Liverpool nightclub Cream is widely recognised as being the biggest EDM festival in the UK featuring world-class DJ’s and live acts. The festival, which is held annually over the August bank holiday weekend, was first staged in Winchester in 1998 and attracted a mere 25,000 people. Today, the festival is located in Daresbury, Cheshire and attracts around 80,000. Since 2004, Creamfields has won numerous awards including best dance festival, best dance event and best major festival. Due its ongoing success, Creamfields festivals have been held across the world in Argentina, Spain, Turkey, Brazil and Poland (Mchale, K. 2015).
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THE CONCEPT 17
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CONCEPT OVERVIEW
The concept is to launch ‘Mycreamfields’, an immersive and engaging mobile app aiming to enhance and extend consumer experience beyond the festival, emphasising on pre, during and post festival activities. The development of the app will introduce Creamfields to a whole new digital platform, allowing them to differentiate themselves on the market with an innovative consumer engagement concept. The concept will launch in time for Creamfields 2019 and Mycreamfields will initially only be available to those who have bought bronze, silver or gold tickets, providing them with an added benefit and a sense of exclusivity. If the concept proves to be a success, it may then become accessible to ticket holders of any type. The Mycreamfields experience will begin as soon as the festivalgoer purchases their ticket. They will be sent an email prompting them to download the Mycreamfields app from the app store. Once downloaded, users will have access to the following features;
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CREAMFIELDS: THE COUNTDOWN
SCAN Approximately 6 weeks prior to the festival, festival-goers will receive their festival tickets in a unique augmented reality ticket box. The Scan feature allows users to open an AR compatible camera that when held over the ticket box will play an exclusive video teaser of the trailer to build excitement.
CONNECT Once users first download the Mycreamfields app they will be asked to sign into their social media accounts. The app will then gain basic information such as name, age and location of the user and will create a profile for them, this activates the app and it is now ready to use.
At the festival there will be AR posters located around the grounds that users can again scan through this feature in the app. Each poster counts as a reward and 6 posters must be scanned to unveil a discount code to the festival-goer that can be redeemed against a ticket to the Creamfields reunion party that will take place after the festival in November.
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The countdown feature allows users to countdown the weeks until the festival whilst unlocking exclusive content such as promotional videos, interviews with acts, competitions and backstage gossip. The countdown will begin 6 weeks prior to the festival and app users will be able to gain access to this content twice a week in the lead up to the festival.
CONCEPT OVERVIEW FESTIVAL DIARY Within the app there is also a festival diary feature that reveals a code specific to the festival-goers Mycreamfields account. At the festival, this code gets scanned by the official event photographers whenever the festival-goer gets their picture taken. All photos then collate to create a festival diary that is unique to each individual. A few days after Creamfields, each festival-goer will receive access on the app to their personal festival diary, featuring all images taken of them at the festival. Images from the diary can be uploaded directly to the individual’s social media accounts through the Mycreamfields app or can be kept private.
CREAMFIELDS: THE REUNION Creamfields: The Reunion will take place in November at the Cream nightclub in Liverpool following on from the festival. The event gives festival-goers the opportunity to relive some of the DJ sets at the event whilst also meeting back up with people they may have met whilst at the festival. Tickets for Creamfields: The Reunion can be purchased directly through the app with or without the discount code.
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KEY DRIVERS
THE EXPERIENCE ECONOMY There is an emerging trend known as the experience economy in which consumers are spending less money on materialistic items and more on unique, spontaneous and immersive experiences. It is predicted that soon 89% of businesses will compete mainly on a consumer experience basis (Gartner, 2017), consumers want more than just a product and those who fail to adapt to that face existential crisis. Primary research (Appendix A) outlined that 72% of consumers would prefer to spend their money on a desirable experience such as a holiday, festival or concert compared to 14% who would prefer a desirable item.
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KEY DRIVERS
RISE OF LIVE MUSIC INDUSTRY There has been a steady growth in the range of music festivals that take place in the UK. Music concerts and festivals are no longer just about the performances, there is an increased presence of acts and activities ranging from food, dance, health and fitness and wellness throughout events. A direct correlation has been identified through the rise of live music industry and the experience economy, consumers are looking to spend their money on experiences more than material goods so the music festival and concert industry is in a prime position to be able to take advantage of this.
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KEY DRIVERS
MOBILE APPS AND FESTIVALS Mobile apps are increasingly changing consumers’ lives in many ways, impacting on how they buy, communicate and find information. Many festivals have their own specific apps for the event but these serve only informative purposes featuring set-lists and general information. Change in consumer behaviour has led to a desire for more unique, engaging and memorable experiences, 63% of consumers that have been to a festival in the past year wish there was more engagement. In the same survey, 84% of consumers said they would use an immersive and engaging app that enhanced their festival experience before, during and after (Appendix B & C).
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COMPANY GOALS & OBJECTIVES
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3
Increase consumer footfall throughout the Creamfields weekend.
Encourage increased interest and hype from consumers’ pre and during the festival.
Generate an additional revenue stream for the business postfestival.
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MISSION STATEMENT
Mycreamfields aims to revolutionise the way in which festivals are experienced by enhancing festival-goers experience pre, during and post festival. Mycreamfields has been carefully developed using specific techniques and new technology in order to be immersive and engaging for the user. This interactive app will build anticipation and excitement throughout key stages of the festival and provide users with a unique experience whilst also providing the engagement they desire and standing out from competitors.
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THE CONSUMER 31
CORE CONSUMER AGE
- 18-24 year olds
GENERATION /TRIBE
- Millennial generation; party totaller tribe - Currently around 16.8 million millennials within the UK (Lucky Attitude, 2018) and this number is constantly growing, in turn with their influence - Acorn classification; group F and G – aspiring singles/starting out
ACORN CLASSIFICATION FAMILY LIFE CYCLE ADOPTION PROCESS CUSTOMER SEGMENTATION
LIFESTYLE
- Enjoying bachelor stage of life while they can - Early majority - Live close to towns and cities in either the family home, student accommodation or their first house/flat - Few financial burdens meaning they can spend their income on activities they enjoy such as eating out, holidays and events - Getting into their prime spending years which will have significant impact on the economy - Growing up in a time of rapid change - Priorities and expectations different to those of previous generations - Fuelling the experience economy - Desire unique, spontaneous and immersive experiences - Spending less money on materialistic items and more on experiences that can be shared with family and friends, one of their key values in life - Engagement is a key priority for this consumer - They love being able to interact with brands physically and digitally favouring brands who can offer more than just a product - Despite their low income this generation spends on average ÂŁ419,556,233 each month on attending live events (Eventbrite, N.D.) - Technologically sophisticated - Mobile technology is specifically paramount; 98% of whom have a smartphone (Nielsen, 2016) - 49% of millennial consumers who have been to a music festival in the last year have used a smartphone app specifically designed for a festival (Festival Insights, 2017) TABLE 1
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SECONDARY
CONSUMER
AGE
- 35-41 year olds
GENERATION /TRIBE
- Generation X
ACORN CLASSIFICATION FAMILY LIFE CYCLE ADOPTION PROCESS CUSTOMER SEGMENTATION
- Acorn classification; group D – prosperous professionals
LIFESTYLE
- Very well educated - Work hard, play hard mind set - Freedom, pleasure and a sense of accomplishment are their main terminal values - Very social - Attend more live music concerts/festivals than millennials, regularly attends Creamfields - 72% said attending live events makes them feel more connected to others, the community and the world (Festival Insights, 2017) - Witnessed the shift in technology and learned to adapt - Value freedom and responsibility in the workplace
- Full nest III; adult with 0-1 child - Single/Unmarried with a long-term partner - Early/late majority - Live in detached homes in suburban areas - Generous disposable income, used on social events
TABLE 2 33
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COMPETITORS 35
TARGET MARKET SECTOR
Mycreamfields is targeted at the music concert and festival market within the live music industry. The industry is performing particularly well, seeing a 12% increase in attendance between 2015 and 2016 and estimated to be worth ÂŁ2.202 million as of 2017 (Mintel, 2017). A prominent gap in this market for Mycreamfields was been outlined through primary and secondary research.
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DIRECT COMPETITORS WHO Glastonbury Contemporary Music Festival UK
Bestival Indie/Dance Music Festival UK Coachella Rock, Hip-Hop, Independent, EDM Music Festival
PRICE £238 (Full Weekend – General Admission)
£160 (Weekend)
£284 (Full Weekend – General Admission)
USA
Tomorrowland EDM Music Festival Europe
£246 (Full Weekend – General Admission)
PRE - App allowing consumers to discover artists playing at the festival and build a personalised line-up - App also tells consumers what time, day and stage artists in their line-up are playing N/A
- Consumers receive ticket boxes with intricate pop-up dioramas of the festivalspace - Cardboard VR goggles accompanied by a VR mobile app which allows consumers to view performances and engage with 360-degree panoramic videos N/A
DURING - Strong brand activity; alcohol, health and beauty and food
POST N/A
- Unique festival installations and brand experiences
N/A
- Strong brand activity; alcohol, health and beauty and food
- Specific hashtags used over social media
- Wearable technology
N/A
TABLE 3 37
INDIRECT COMPETITORS WHO TWSTD by Club 18-30 (Thomas Cook) Indoor Music Festival (Held At Butlins) UK
PRICE £189
PRE DURING - Although anyone can - Vibrant line-up of music, attend the event, tickets visuals and immersive are usually sold to groups shenanigans of boy/girls who have been on a club 18-30 holiday with Thomas Cook
POST - Email marketing
TABLE 4
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BRAND ADJACENCY MAP
HIGH ENGAGEMENT
HIGH PRICE POINT
LOW PRICE POINT
LOW ENGAGEMENT
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SWOT
S W O T
- Fills the gap in the music concert and festival market for an immersive and engaging mobile app - Introduces Creamfields to a new digital platform - Increases revenue for Creamfields post festival - Additional marketing tool for Creamfields -
May take time to develop app to be seamless Relies on WIFI/strong data signal Requires battery power Mycreamfields is only available with high price point tickets Expensive to develop
- Become market leader in a currently unexploited market within the industry - Recent technology supporting the concept - Potential investment from government looking to support technological innovation
- Existing competitors replicating the concept - Uncertainty from Brexit may lead to a decline in the industry
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UNIQUE SELLING POINT
Mycreamfields has a strong competitive advantage when it enters the festival app market, as although festival specific apps do exist they serve only an informative purpose to the user. As a new market entrant it is beneficial that Mycreamfields stands out with a unique and innovative concept. It is no doubt that in the foreseeable future, competitors will develop their current apps to align with current trends however Mycreamfields will have already become an established player in the market by then.
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OPERATIONS 43
APP Mycreamfields will be an internal business becoming part of an existing company and managed from the Cream head office in Liverpool. In order for the app to be created, Creamfields will be required to purchase app developing software. The software will allow the developer to create the app seamlessly ready for launch. Mycreamfields will go through several stages of development before it is produced; - Ideation - Project Documentation - App Designs - App Development - Testing - Launch As the app is compatible with both IOS and Android developing software is required for both. Software from Android comes free of cost and only requires a $25 (ÂŁ18) fee to distribute the app into the marketplace, Apple IOS comes at a fee of $99 (ÂŁ70) (Entrepreneur, 2012). Funding for the software will be provided by Creamfields. App content will be produced by the marketing team. Mycreamfields will legally be required to conform to the data protection act 1998. As the app requires personal details such as name, age and location of the consumer it is important that this information is retained by Creamfields only and not shared with any third parties. It may also benefit Creamfields to protect the Mycreamfields concept under intellectual property rights. The intellectual property law copyrights the app to prevent the idea getting copied/ stolen by competitors. The existing marketing team within Creamfields will undertake the operating of the app working within their current business hours for the entire 12 months. Staff will receive relevant training to extend job roles to suit. Required job roles will be; - Product Manager - Graphic Designer - App Developer (external company)
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CREAMFIELDS: THE REUNION
The Creamfields: The Reunion event will take place in the nightclub Cream. The nightclub is owned by the company and so will be free of cost to hire. The venue has a capacity of over 2,500 however for the night just the main room within the venue will be open, holding a capacity of 1,400. A DJ is required at the event to play the selected sets from Creamfields. The club is also required to have an entertainment system including sound and lighting. The Cream nightclub venue will be required to hold a club premises certificate. This certificate allows the venue to be able to sell alcohol to consumers and provide regulated entertainment. Without the certificate the club will face serious action. Cream should also carry out routine health and safety checks throughout the club to ensure they conform to standards outlines in the health and safety act 1974. As an already well-established nightclub, Cream will already have the relevant members of staff required to work at the event. Staff needed on the night include; - Bartenders - Management - Security (external company) - Cloakroom and Toilet attendants - Host/Hostess’ As the event takes place on one night, staff will be paid a one off payment for the hours they have worked.
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MARKETING MATERIALS
Supplies will be needed in order to produce the ticket boxes being sent out to consumers, AR posters at the festival and posters/leaflets and flyers promoting the reunion event. The AR ticket box will be drawn up before being made into a prototype. Once the size and shape of the box is finalised it will then be mass produced to send out to consumers. Multiple designs of the box, as well as the posters/leaflets and flyers will be created by the marketing team and will be looked at by the marketing manager. When a final decision on the materials is made it will be sent to a printing company to be printed. Mycreamfields will use external printers in order to produce their ticket boxes, posters and leaflets/flyers. Creative packages used to make the marketing materials will already be owned by Creamfields. The cost of printing will be covered by the funding provided by Creamfields. All marketing materials will be produced by the existing marketing team within the company.
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MARKETING STRATEGY 49
Creamfields 2019 tickets go on sale
A chance to win 2x VIP festival tickets from Instagram and Snapchat takeover each week in April. Takeover by various artists at the festival
Line up released with competition to win 4x VIP tickets
Social media posts – coming soon teasers on social media accounts (Facebook, Twitter and Instagram) to generate excitement
DECEMBER
APRIL
FEBRUARY JANUARY
MARCH
MAY
Concept is revealed and app launches in app store Reviews featured on The Verge and Digital Trends website
Mycreamfields featured on the gadget show with reviews and explanation of features
Ticket confirmation emails sent out to VIP ticket holders prompting them to download app 50
Twitter and Instagram posts with specific hashtags to generate excitement
Creamfields festival takes place Appears at London tech week for final exposure before launch
JUNE
Posts on Twitter and Instagram generating excitement for Creamfields: The Reunion
Multiple Facebook, Twitter and Instagram posts throughout the event
OCTOBER
AUGUST JULY
SEPTEMBER
Ticket boxes arrive to festivalgoers in the post and are prompted to share the box on their social media accounts with a specific hashtag
NOVEMBER
Creamfields: The Reunion takes place
Festival diaries are released
App launches and features become accessible, building a hype pre-event
Competition to win 2x tickets to the reunion 51
Live streams on Facebook and Instagram from event to generate excitement and promote Mycreamfields to consumers for the following year
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FINANCIAL BACKGROUND 53
DEC CASH INFLOW CREAMFIELDS FUNDING TICKET SALES GENERATED FROM APP REUNION TICKET SALES TOTAL INFLOW CASH OUTFLOW APP SOFTWARE STAFF Internal External MARKETING Ticket Boxes x1400 Tickets x1400 Posters x6 Posters/Flyers x250 COMPETITION TICKETS Creamfields Festival Creamfields: The Reunion REUNION COSTS TOTAL OUTFLOW BALANCE
£
JAN PRE-LAUNCH
£
60,000.00 60,000.00
£
34,000.00 34,000.00
£
50,000.00
£
250.00
£ £
8,332.00 4,500.00
£ £
8,332.00 4,500.00
£
-
£
£ -£
2,832.00
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MAR
APR
MA
-
-
-
-
-
£ £
-
62,832.00
FEB
8,332.00 4,500.00
£
£
250.00
£ £
8,332.00 4,500.00
-
£
13,082.00
£
£
£
18,086.00
£
1,360.00 14,192.00
-
£
£ £
-
£
3,894.00 -£
13,082.00
-
8,332.00 4,500.00
£
£
2
£ £
8,3 4,5
£
£
9,188.00 -£
680.00 13,512.00
-
£
13,0
22,700.00 -£
35,7
CASH FLOW FORECAST
APR
MAY
JUN
-
-
-
-
-
8,332.00 4,500.00
£
£
250.00
£ £
8,332.00 4,500.00
-
680.00 3,512.00
-
-
£
2,700.00 -£
13,082.00
£
JUL LAUNCH
£ -
£
£ £
8,332.00 4,500.00
£ £ £
500.00 262.00 45.00 -
£
13,639.00
35,782.00 -£
49,421.00
85,000.00 85,000.00
£
£ £
8,332.00 4,500.00
AUG
SEP
OCT
-
-
-
-
£
£ £
-
£
£
£
22,747.00
£
£
-
8,332.00 4,500.00
£ £
-
12,832.00
-
8,332.00 4,500.00 -
12,832.00
£ 360.00 £ 13,192.00
9,915.00 -£
55
NOV
-
£ £
£ £
£
-
8,332.00 4,500.00 -
75,000.00 75,000.00
95.00
£
12,927.00
3,277.00 -£
16,204.00
£ £
£
8,949.00 4,664.00 -
95.00
TOTAL
£ 60,000.00 £ 119,000.00 £ 75,000.00 £ 254,000.00
£ 50,750.00 £ 154,765.00
£
997.00
£
2,400.00
£ £
2,500.00 16,208.00
£ 2,500.00 £ 211,412.00
£
42,588.00
£
85,176.00
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FUTURE GROWTH STRATEGY 57
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As Mycreamfields will be entering a new market, growth for the business will occur naturally. To further the success of the business, Mycreamfields could make the app openly available to ticket holders of any type, doing so may encourage consumers to buy into the Creamfields brand over competitors because of the added benefit and sense of exclusivity. Furthering on from making the app available to a wider audience, Mycreamfields should consider implementing additional immersive and engaging features/functions to the app for the consumer. Updating the app regularly ensures the concept is kept new and exciting, also allowing Mycreamfields to keep the competitive advantage if other apps were to surface on the market. Mycreamfields could monetise the app further by charging consumers for high resolution photographs to download from their festival diary, additionally they could offer merchandise such as T-Shirts, keyrings and mugs with bespoke photos taken of consumers at the event. Mycreamfields currently only operates over a 6 month period, a final future growth strategy would be to extend this throughout the whole year. Mycreamfields could hold multiple events that will keep the consumer engaged and excited, while also building strong relationships with them. The extra events held would also generate increased revenue for Mycreamfields for any future developments.
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REFERENCES 61
TEXT REFERENCES Kulbyte, T. (2017) 32 Customer Experience Statistics You Need To Know For 2017. Available at: https://www. superoffice.com/blog/customer-experience-statistics/ [Accessed 1 April 2018] Lucky Attitude. (2018) How Many Millennials There Are In The UK? (2017). Available at: https://luckyattitude. co.uk/how-many-millennials-uk/ [Accessed 1 April 2018] Eventbrite. (N.D.) Study: Millennials Want Experiences More Than Anything. Available at: https://www.eventbrite. co.uk/blog/millennials-want-experiences-ds00/ [Accessed 1 April 2018] Nielson. (2016) Millennials Are Top Smartphone Users. Available at: http://www.nielsen.com/us/en/insights/ news/2016/millennials-are-top-smartphone-users.html [Accessed 1 April 2018] Entrepreneur. (2012) 9 Tools For Building Your Own Mobile App. Available at: https://www.entrepreneur.com/ article/223177 [Accessed 10 April 2018] Festival Insights. (2017) Eventbrite Releases Research Into Millennials’ Attitudes Towards Live Events. Available at: https://www.festivalinsights.com/2017/06/eventbrite-releases-research-millennials-attitudes-live-events/ [Accessed 12 April 2018] Mintel. (2017) Music Concerts and Festivals Report. Available at: http://academic.mintel.com/display/848193/ [Accessed 13 April 2018] Mchale, K. (2012) A History Of Creamfields Festival. Available at: https://www.liverpoolecho.co.uk/whats-on/ music-nightlife-news/a-history-of-creamfields-festival-9906353 [Accessed 2 April 2018] Festival Insights. (2017) The UK Festival Market Report 2017. Available at: https://www.festivalinsights. com/2017/07/uk-festival-market-report-2017/ [Accessed 7 April 2018]
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IMAGE REFERENCES Festival Flyer. (2017) Creamfields News. [photograph] Available at: https://goo.gl/images/Db4gsr [Accessed 12 April 2018] Skiddle. (2018) Creamfields News. [photograph] Available at: https://www.skiddle.com/festivals/creamfields/ news.html [Accessed 12 April 2018] FestivalForAll. (2017) Tiësto and Above & Beyond to headline Creamfields Presents Steel Yard London 2018. [photograph] Available at: https://www.festivalsforall.com/article/creamfields-presents-steel-yard-london-2018headliners [Accessed 12 April 2018] Ticketlist. (2018) Creamfields 2018 [photograph] Available at: https://ticketlist.co.uk/event/102236/ creamfields-2018 [Accessed 13 April 2018] Hunt, S. (2017) Reviewed: Creamfields Twenty (2017) [photograph] Available at: https://datatransmission.co/ club-review/reviewed-creamfields-twenty-2017/ [Accessed 15 April 2018] Nightingale, L. (2018) Find Out Who’s Joining Above & Beyond at Creamfields Steel Yard [photograph] Available at: https://www.festicket.com/magazine/news/find-out-whos-joining-above-beyond-creamfields-steel-yard/ [Accessed 16 April 2018] Getinonthis. (2018) Creamfields 2018 – Seven Ones To Watch At The Daresbury Festival [photograph] Available at: http://www.getintothis.co.uk/2018/03/creamfields-2018-seven-ones-watch-daresbury-festival/ [Accessed 16 April 2018]
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APPENDIX 65
Appendix A
Appendix B
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Appendix C
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