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Strategic Business and Marketing Plan

CONFIDENTIAL: This is a proprietary festival production overview owned by Bayside Rocks, Inc. d/b/a Rockers Movement. All Rights reserved, 2015. The information in this document is confidential and is to be only read by authorized parties. Please refer to the confidentiality agreement for further details. This business plan is not an offering for securities.

Confidentiality Agreement

The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of or an authorized agent of Bayside Rocks, Inc. d/b/a Rockers Movement.

It is acknowledged by the reader that information furnished in this business plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, and may cause serious harm or damage to aforementioned parties.

This business plan is not to be copied or reproduced by any means without the sole written consent of an authorized agent of Bayside Rocks, Inc. d/b/a Rockers Movement.

Upon request, this document is to be immediately returned.

 

1.0 Executive Summary

1.1 Overview

The exciting new Miami Music Festival is coming to the Historic Virginia Key Beach Park just south of Miami on a key weekend; Fri-Sun November 27, 28 & 29, 2015. The event combines two powerful music genres, Jam Band; a missing musical element missing from South Florida since 2008 and EDM (Electronic Dance Music). Miami Music Festival will be the most sought after event in the US during Thanksgiving Weekend. There is no other South Florida Festival or any other major event during this prime weekend.

For decades Festivals have proven that the Jam Band format is long-lasting. It’s obvious that a natural festival site is a primary consideration to this audience. The Historic Virginia Key Beach Park enhances this desire with this music festival in a tropical paradise.

 

1.2 Thanksgiving Weekend

This annual right-of-passage plays an important role in making this carefully timed event especially attractive. The festival will pull heavily from 18-28 year old music lovers from the U.S., particularly those who want to get away from a frigid winter. There is no other Jam Band/ EDM Festival in the U.S. on Thanksgiving Weekend in 2015.

 

1.3 Weather

November Weather in Miami: Avg. High Temp: 79.7°, Avg. Low Temp: 64.3°

Avg. Rainfall: 2.47”

 

1.4 Marketing

One of the benefits of Jam Band and EDM music is that the enthusiasts are easily identified. Miami Music Festival will create and publicize campaigns that take into account customer preferences. We will engage patrons on their chosen platform and via their preferred medium. Miami Music Festival will leverage all aspects of cross-channel marketing to analyze our lists, fans, and followers using text messaging, email, and mobile/social networks. We will penetrate all marketing channels, including on-line, print, TV advertising, outdoor, and entertainment outlets. Driving traffic on-line through web site optimization, email blasts, paid banners, e-releases and Google Adwords to the main web site www.miamimusicfestival.com will lead ticket buyers to a convenient ticket sales platform.

 

1.5 Local Government and Community

The City of Miami and the Virginia Key Beach Park Trust supports music festivals and sees them as important tourism generators that infuse money into the local economy. A permit for the event and for beer sales is just a matter of completing forms and paying processing fees. To rent the entire facility is $20,000 per day plus a $2.00 fee per ticket sold.

 

1.6 Venue

Virginia Key is an 863-acre barrier island with a half-mile of beach in Miami, Florida, in Biscayne Bay, south of Brickell and north of Key Biscayne. The key is accessible from Miami Beach via the Rickenbacker Causeway. It is an ecological treasure. The vision of camping on a tropical island and attending a music festival is appealing to any enthusiast. The Park’s web site is: http://www.virginiakeybeachpark.net

 

1.7 Staff

Alfonso Brooks – Founder / Producer Has an extensive career as a concert and festival producer.

10-15 full time year-round positions will be required from office assistants, to marketing staff and physical plant construction workers to not only build Miami Music Festival and to work towards building Miami into a permanent music festival destination.

Primary contractors have been selected and have contributed to this proposal. Other professional departmental managers will be selected over the many months of planning. A total of 150 people will be employed to work on this event.

The remainder of the staff are contractors and independent professionals: security, stage and site, and box office managers.

 

1.8 Ticket Prices for a Rebounding Economy:

The price point is important. An attendee can campout for all three days and nights and see every concert from 12 noon-midnight for one low price. Tickets are scaled in three releases:

 

1.9 Event Format

Miami International Music Festival is a premier annual three-day music festival to be held at the Historic Virginia Key Beach Park in Miami, Florida. The event features Jam Band and EDM music. The event has one (1) Mainland Stage, one (1) Beach Stage, and an EDM Arena that will be constructed throughout the grounds, with each hosting live music continuously for the duration of the festival. The festival will showcase over 75 of the most popular and emerging acts in music as well as legendary artists.

Ticket Type                   Early Bird      Advance      Gate

GA Weekend Pass             $280            300           350

VIP Weekend Pass             $400            500           N/A

 

These prices make this event the lowest price three/3-day festival ticket anywhere!

Other revenue streams: beer, food and beverages, festival merchandising, artist merchandising, sponsors and beach activities. With all revenues combined, altogether one ticket buyer represents approx. $427. Additional activities such as parasailing, kite surfing, paddle boarding and kayaking are additional. Merchandising/cabana rental revenues are projected at approximately $50K - $150K and we expect them to be realized at the time of the event. Miami Music Festival will emphasize an event theme and primary sponsorship branding.

 

1.10 Event Cost

Talent

$1,250,000.00

Stage Production

$230,500.00

Venue/Site Production

$153,000.00

Marketing

$100,000.00

Administrative

$104,100.00

Staff/Security

$345,000.00

Bev Cups/Merchandise

$25,000.00

Total Event Cost

$2,307,600.00

Sales Tax 7%

$161,532.00

Grand Total

$2,469,132.00

Break Even

5,782

Projected Attendance

20,000

 

1.11 Revenue Projections

 

 

 

 

 

First Year Estimate

 

 

 

Tickets:

5,782

7,500

10,000

12,500

15,000

17,500

20,000

Income:

$2,469,132.00

$3,202,500.00

$4,270,000.00

$5,337,500.00

$6,405,000.00

$7,472,500.00

$8,540,000.00

Event Cost:

$2,469,132.00

$2,526,882.00

$2,546,132.00

$2,565,382.00

$2,584,632.00

$2,603,807.00

$2,623,132.00

Net Profit:

Break Even

$624,283.00

$1,597,808.00

$2,571,333.00

$3,544,828.00

$4,518,458.00

$5,491,908.00

               

The festival is expected to increase profits by 20% per year for the following 3 years, and by 10% through year 5. This is a unique opportunity that is locked and loaded, and ready to go. The last requirement is the investment. Tickets should go on sale by May 2015

In regard to revenues, the business will generate income from the following:

  • Ticket Sales
  • Ticket Processing Fees
  • Corporate Sponsorships
  • Sales of Merchandise
  • Concession Sales
  • Vendor Fees

 

1.12 Company

Rockers Movement is a successful vertical integrated brand. Supported by a unique and loyal following, the company growth has been increasing since its creation. Through the social consciousness aspect of the arts, Rockers Movement’s marketing strategies have always had a vanguard and innovative vision of the market. In order to fit that vision and based on our analysis of the market and its competition, as well as the social environment of the typical Rockers Movement customer profiles, the business plan presented here considers actions to respond to three major goals:

1. Create a successful festival for Rockers’ fans with 20,000 attendees per day and generate more than four million dollars in revenue by the end of 2015,

2. Increase “the Company” online community by 20% by the end of 2015;

3. Develop “the Company” positive brand image by 80% by the end of 2015.

With these objectives in mind, our main tactic is the introduction of the Miami Music Festival for November 2015. The purpose of the event is to offer a unique experience to Rockers Movement’s loyal customers and potential prospects. Accordingly, this strategic plan proposes a blend of suitable and intelligent actions to support an original idea to ultimately reach the company’s goals.

The purpose of this business plan is to raise $2,500,000 for the development of this music festival and the Rockers Apparel brand while showcasing the expected financials and operations over the next three years. We have faced challenges for the past five years, the most noteworthy being venues and talent. Talent sells tickets. After several months of strategizing, and a relentless focus on accepting nothing less, we are determined to get the best for this festival. Within the market there are two notable festivals. The first is Ultra Music Festival at Bayfront Park in downtown Miami. This festival focuses on the Electronic Dance Music (“EDM”) culture only. It is now in its 16th year and has an attendance of over 160,000 over a 3-day weekend. The second is Jazz in the Gardens at Sun Life Stadium in Miami Gardens. This festival focuses on the African American culture. It is now in its 10th year and has an attendance of over 65,000 over a two-day weekend. Newcomers Tortuga Music Festival (Country Music) and Life In Color Festival (Paint and Music Festival) have secured great attendance collectively in their startup years. Taking these matters into consideration, you can see our vision and the reasons why the festival we are proposing in the market will work. The festival we are proposing unites the market place by securing talent that is reflective of the Greater Miami/So. Fl. Landscape to bring their respective following all together in one venue as we have done on a much smaller scale with our renowned Miami Reggae Festival which has grown to be the premiere international multicultural music and arts festival in South Florida. The festival promotes the importance of cultural diversity in the vibrant city of Miami with authentic experiences. It fuses music, food, arts, yoga and culture from around the world to raise awareness and share knowledge.

 

1.13 Mission Statement

The Company is the brainchild of Alfonso D’Niscio Brooks and partners, who share more than 30 years of experience in the entertainment industry. Through our expertise, we will be able to bring the operations of the Company to profitability within its first year of operations. We dream big and a multi-act music festival is big business. With an eye on healthy diversification of our competencies coupled with an irresistible opportunity in an industry with glaring inefficiencies, we have seen our fair share of those that kill the goose that laid the golden egg. We are a culmination of decades of hard work, consistently building upon our competencies and taking calculated risks.

 

1.14 Revenue

The primary revenue center for events will come from the direct sale of tickets for festival(s), satellite events and corporate sponsorships. These corporate sponsors will co-brand each event held by the Company.

Secondary revenues will come from sales of concessions, festival merchandise, parking, vendor fees, and other revenue centers.

The third stream of revenue will come from Rockers Apparel, a street culture brand focused on some of the most recognized contemporary art movements.

 

1.15 Financing

The Company is seeking to raise $2,500,000 from an angel investment loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10-year loan with a 9% fixed interest rate. The financing will be used for the following:

Capital Purchases,

Operating Capital,

Inventory,

Top-Up Financing, and

Expansion


We expect a strong rate of growth at the start of operations. Below are the expected financials over the next three years.

 

Proforma Profit and Loss (Yearly)

 

 

Year

1

2

3

Sales

$955,500

$1,194,375

$1,433,250

Operating Costs

$389,569

$429,002

$469,848

EBITDA

$361,181

$509,436

$656,277

Taxes, Interest, and Depreciation

$155,135

$206,852

$262,137

Net Profit

$206,046

$309,548

$401,104

 

1.16 Expansion Plan

The Company will aggressively expand during the first three years of operation. Recognizing the positive effect creative activity has on individuals by providing enjoyment, enlivening spaces and enriching lives. We are progressing the corporate priority to make South Florida culturally and economically richer; a vibrant, diverse, inclusive place where people want to live, work and visit. Culture provides distinction to locales, and engenders pride in communities. It also makes a practical contribution in terms of sustainability, providing employment, encouraging learning and inspiring people to adopt creative and active lifestyles. The Company possesses all the elements of potential growth. The growth of the Company , especially in a small community, is in fact a form of community economic development.

In addition to that, the business growth may garner the Company the advantage it needs to be a leader in a market niche. For example, growing the Rockers Apparel brand brings value to the business and quality to our customers. Both are important in creating goodwill in the marketplace.

Growing the Company offers change and the need to acquire new knowledge - both something that younger employees seek and the global economy demands. The excitement of growth offers the potential for career challenge that inspire skilled employees.

 

2.0 Ways We Will Expand:

1. Increase our sales and products in existing markets. This is obviously the easiest and most risk-free way to expand. This tactic may require a bigger festival and/or products, different pricing strategies, new or improved marketing techniques - but it will be in a customer group with whom we already have a relationship. If we get off track, our present customers will let us know!

2. Introduce a New Product. We have a successful product/service that we have been offering for some time and we have collected data, customer feedback and have done the tinkering on this new festival. This is a normal evolution in business, not just an expansion tactic. When positioned as adding value and being responsive to customer needs, this can be a relatively risk-free way to expand.

2.1 Corporation

Bayside Rocks, Inc. d/b/a Rockers Movement “the Company” is registered as a corporation in the State of Florida owned by its principal investors and operators, Alfonso Brooks and Ewart Burton. We currently operate in Miami, New York, Denver and California.

 

2.2 Investment

At this time, “ the Company” requires $2,500,000 of debt funds. The Company will contribute $100,000 to the required $2,500,000. Below is a breakdown of how these funds will be used:

 

2.3 Funds Breakdown

Projected Startup Costs

 

Business Startup Year

1

Talent

$1,250,000

Stage Production

$230,500

Site Production & Infrastructure

$153,000

Marketing

$100,000

Administration

$104,100

Staff/Security

$345,000

Bev Cups/Merch

$25,000

Ticket Surcharge $2 p/p

$100,000

Sales Tax

$161,532

Total Startup Costs

$2,469,132


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

“The Company” is not seeking an investment from a third party at this time.

 

2.4 Management Equity

Alfonso D’Niscio Brooks owns 50% and Ewart Junior Burton Owns 50% of the Company.

 

2.5 Exit Strategy 

With the projected success of the business, we may seek to sell the business to a third party for a significant earnings multiple. Most likely, we will hire a qualified business broker to sell the business on behalf of “the Company”. Based on historical numbers, the business could fetch a sales premium of three to seven times the previous years earnings.

There are two types of third party buyers: financial and strategic buyers. Whichever route “the Company” chooses in a third party sale, it is important to protect the Company against management distractions from the sale preparations, or strategic losses while in the sale period. “The Company” will also need to protect itself against potential lawsuits for alleged fraud or misrepresentation during the sale of a business to a third party. Below are the two key types of third party buyers we assume will be interested in “the Company”

  • Financial buyers are just that, seeking high return on investments. They will need to see sturdy financial statements and strong assets. Many will also prefer that current management stay on for awhile.
  • Strategic buyers may be competitors, a larger business in a related industry or a company remotely related that is looking to diversify product lines, market segments or geographical reach. Company will need to safeguard proprietary information in these sorts of deals.

Consideration must be given to our exit strategy in order to ensure future sustainability/legacy. Failure to attract sufficient internal/external funding or instability of partnerships and/or organizations may result in a diminished Festival. Funding streams are subject to changes in priorities and are often time finite. Through culture communities are better able to engage young people in constructive activity and attract the people and businesses essential for a prosperous local economy.

 

3.0 Products and Services

Below is a description of the services offered by “the Company”.

 

3.1 Music Festival

As stated in the executive summary, the Company intends to operate large scale music festival and events within the target markets. In addition, the Company will sell merchandise from the Company Rockers Apparel street culture brand.

Festivals are an opportunity to give back to the community, and they are also a way to connect with consumers on a personal level. Music plays an integral part of one’s identity. Music is a powerful pathway to create relationships with the consumer. When people think of great music and the brands that enable it, we want them to think of the Company.

Festivals are a central contribution to local vitality and provide focus and stimulus for cultural tourism. We already have an established portfolio of festivals with over fifteen years in the business, attracting between 7,000 – 25,000 attendees at each event.

In addition to progressing the Corporate Priorities to:

• Make the target market a culturally and economically richer place to live and

• Be businesslike and efficient in providing the services people value the most,

the proposed festivals will also align with national, regional and local strategies and deliver outcomes linked to key national indicators.

The event will feature a number of high profile artists/performers. Prior to the onset of operations, the business will aggressively contact standing relationships with booking agents throughout the country to ensure that artists will begin to appear at hosted events as soon as the Company begins operations.

 

3.2 Past Festivals

Miami Reggae Festival – Miami (2010 -2014)

Nelson Mandela Day - Denver (2014)

Reggae Carifest - New York (1998 – 2007)

We Are Rockers Events – Miami, New York, St. Maarten, Jamaica (1995 – Present)

One Love Nutrifest – Miami (2012)

Reggae Music Fest – New York (2003 – 2004)

Bayside Rocks Festival – Miami (2010)

 

3.3 Festival Merchandise

Rockers Apparel is a street culture brand focused on some of the most traditional and contemporary art movements. With a clear message of dress for success, image is everything. The designs are bold and colorful emphasizing on ideas and concepts. Rockers Apparel is a spirit, a vibe and a way of life.

Due to globalization and a rise in brand awareness the branded apparel industry has benefited from demographic shifts and changes in consumer preferences over time. Because more and more fashion is emerging as a means of self-expression, consumers are increasingly choosing apparel with brand images or logos over private labels. The United States represents the world’s largest branded apparel market having an estimated share of 29.26%, followed by Europe and Asia (2). Yet, growth in emerging markets such as the Asia-Pacific region is very encouraging for the branded apparel industry. Some of the specificities that define this industry are: highly fragmented, consolidation, outsourcing and seasonality. The branded Apparel market has been suffering during the extended instability in the world economy. Over the last five years sales growth has been slimmed down due to a reduction in household wealth, economic downturns, decrease in consumer confidence, low discretionary spending patterns, and a shifting consumer demand to value for money bargains have all. The decline in consumer spending has also decrease retailers’ operating margins. Cheaper private label brands have been offering harsh competition to premium brands as consumers are shifting to lower price points. Other factors that are also expected to drive growth are rapid increase demand from developing markets, especially Asia-Pacific, and sustained growth in the e-commerce channel.

 

4.0 Strategic and Market Analysis

4.1 Economic Outlook

This section of the analysis will detail the economic climate, the music event industry, the customer profile, and the competition that the business will face as it progresses through its business operations.

Currently, the economic market condition in the United States is moderate. Unemployment rates have declined while asset prices have risen substantially. As such, the Company will be able to remain profitable at all times given that people have more money to spend on leisurely activities.

Funding will be necessary to deliver the festival and a growth bid to secure these essential funds is annexed hereto.

In addition to seeking a commitment to continuing resourcing the festival within the baseline budget, we will adopt a fresh approach to fundraising. This will entail an emphasis on creating an offer that appeals to the corporate sector and can be packaged at a range of levels to encourage business buy-in.

To facilitate this we will need to develop a festival identity/brand, nurture stakeholder relationships and secure a media partner.

Leisure, Culture & Market Strategy

We have a strategic plan for the provision, enabling and encouragement of services with a theme of “At the Heart of the Community” to reflect our commitment to community engagement. Culture is cited as being at the heart of regeneration.

Priority One: Create Stronger, Safer and Healthier Communities

Enable all residents to participate in the cultural life of the community and to enjoy the arts.

Create a more dynamic cultural product within respective markets by working with partners to incorporate greater diversity and encourage Minority and Ethnic contribution.

Develop and encourage volunteer activity.

Priority Two: Increase Economic Vitality

Provide a focus and stimulus for tourism, promoting our festivals’ portfolio to help put respective markets on the map as a cultural destination.

Promote market as a vital place to live and work.

Priority Three: Provide High Quality, Value for Money Services

Focus on exploiting external funding.

Work in partnership and identify external funding to promote all art forms.

Priority Four: Increase Participation and Customer Satisfaction

Make culture accessible for the enjoyment of all.

Achieve a minimum of 80% customer satisfaction levels throughout our cultural services.

Create a cultural shift to target marketing, rather than advertising our product.

Priority Five: Increase Opportunities for Seniors and Young People.

Manage the direction of our arts-based partnerships to enhance provision for the benefit of children and their careers.

Positively engage with young people to help them access cultural opportunities.

Enable increased participation and opportunities for the 50+ age range.

 

Sponsorship

Though the typical beer, cola and energy drink sponsors will be sought, there is no way to predict the amount of actual cash contribution for a first-year event. A travel provider such as an airline, train or bus company is also a major consideration that could play an important strategic relationship over the years.

The goal is to achieve >30% plus of sponsorships annually. The Company as a business relies on a great many partners involved in the staging of the festival. We have gone some way towards ensuring that commercialism is not overt. Although in the past a number of companies expressed the desire to be involved, we are not open to sponsors in the same way other festivals are. We don't allow branding on site and we try to make sure sponsors are giving something back to the people at the festivals. Any involvement is low-key rather than in-your-face. It's better from a marketing point of view because, in this environment, over branding will work against us. The people who attend our events are very media-savvy and don't like to be told what to buy.

In return for sponsorship it is envisaged that we would offer all, or some of the benefit detailed below. Sponsorship benefits will depend on the value of sponsorship.

• Sponsors will be featured in conjunction with the festival in the respective market.

• Logo on festival website partner page and link to sponsor’s website.

• Exposure on relevant media releases to both local and national press.

• Complimentary tickets to sponsored event and invitation to V.I.P. launch.

• Opportunity to host a reception before the event.

Partnership

In order to boost the allocated budget we will need to identify funding opportunities and develop events in collaboration with other arts providers.

Sales Strategy/AIDCA AIDCA - a ttention, i nterest, d esire, c onviction and a ction are the five stages of the sales call and how we'll approach our prospective clients.


4.2 Industry Analysis

Within the United States there is a tremendous demand among celebrities, music groups/musicians, and other artists to gain market visibility through events and promotions. There are 6,500 businesses that provide these services to entertainers via the hosting of events, individual performances, and musical festivals. The aggregate revenue generated by these people and businesses is in excess of $4 billion dollars each year. The industry employs approximately 40,000 people, and disburses $2 billion dollars in payrolls.

During the last economic census, it was found that the number of businesses operating within this industry, increased at a rate of 28% every five years. In addition, gross receipts, increased 65% over the same period. This is primarily attributed to the fact that the demand for music festivals and its associated services have become exponentially more complicated as the number of new technologies and artistic media have increased.

Sustainable Community Strategy

The strategy for the local strategic partnership aims to improve the quality of life in the respective market by encouraging statutory, voluntary, community and business organizations to work together. This project will deliver outcomes against two of the eight themes:

• Thriving Economy – The Ten Year Vision aims for “vibrant city and county

attracting tourism, and with flourishing rural businesses.” This will be

supported by profiling our heritage assets and growing the cultural events

calendar.

• Stronger Communities – This includes initiating this Festival of Music and Arts,

while supporting volunteers to develop other local events. It is acknowledged that

there are still barriers to participation and a South Florida target is to increase

the number of people engaging with the arts.

 

4.3 Review of Current Situation

In order to better understand the current situation we have undertaken a PEST analysis to capture significant trends in the external environment. Those identified include:

Political

The market's current policy towards the arts, the challenges of balancing participation and excellence.

Local Government Review and the implications this may have for future activities and funding. Developments in education policy, particularly to provide children with 5 hours of quality culture every week.

Economic

Economic downturn resulting in reduction in non-statutory budgets and fierce competition for sponsorship.

General trends in other sources of public funding and likelihood that resources may be diverted towards the Cultural platform.

The local economy; small market towns serving a large rural area with predominantly small to medium sized enterprises.

Social

The structure and distribution of the target population; a widely dispersed rural population where transport links between major centers are comparatively poor.

· The public perception of various art forms as elitist and how this will need to inform our programming.

Maximizing the current trend for short breaks and visiting friends and relatives.

Technological

The impact of new technology upon audiences and audience expectations; people may be less willing to venture out for live entertainment and some target groups are less responsive to the conventions of traditional theatre/concerts.

Better harnessing technological advances in terms of box-office and internet marketing of our activities.

Identifying how technology could benefit artistic production.

Other factors that will need to be considered are legal and environmental . It is proposed that we will involve specialists from our legal team and an ecologist to gain a further understanding of influencing factors.

In order to ensure that the target market offers an enjoyable and enriching cultural experience for visitors and residents of all ages, we undertook a scoping exercise to identify existing arts events, reviewed provision across the markets, identified gaps in the festival calendar and then developed our festival in response. Continued interaction with local businesses through the business and tourism consortium will enable future plans to be developed to ensure that they maximize the potential for supporting local businesses where appropriate. This avenue will also provide an opportunity to secure additional sponsorships.

The Company’s main target is the millenials (also called “Generation Y” or “Gen Y”). Millennials make up about 23% of US the population. It is estimated that 13.4 % have not moved out of their parents’ house. This is mainly due to the fact that the unemployment among millennials is nearly twice the national average. A typical millennial spends about 5% dollars less than the average American, according to the Bureau of Labor Statistics. However there are some categories where they spend much more than other groups.

Millenials spend about $50 more per capita on alcoholic beverages, $400 more on personal services, and nearly $100 more on furniture. Millenials buy and use products to make a statement about who they are. [1] According to Heather McGhee is the director of the Washington Office of Demos, millennials are more diverse than Generation X or Baby Boomers. Unemployment among them is nearly twice the national average. [2] Metro areas such as Miami, New York, Los Angeles, Chicago, Dallas and Houston have the largest number of millennials.

Management anticipates that its primary audience will be people between the ages of 15 and 45 who enjoy live performance events. This encompasses a very broad array of demographics and psychographics, and as such, it is very difficult to accurately determine the average person that will attend the Company’s hosted events or festivals. However, among people between the ages of 21 and 45, management has documented the following demographics:

  • Annual income of >$35,000.
  • Resides within 100 miles of the targeted market area.
  • Will purchase merchandise at a concert/festival.
  • Will consume more than two beverages per head.

20,000 people per day are expected to show up at this festival. We are expecting this number to increase each subsequent year. The price of the ticket for the festival will be $60USD. Goodies and merchandise will be available for purchase before the event in stores and online, and at the event itself. Official limited edition music festival t-shirts will cost $20USD and we expect that 75% of total visitors will buy this product. Pop-up stores will also be displayed around the event to allow patrons to buy merchandise and we expect 30% of total visitors will spend >$50USD on festival merchandise. Other collector goods such as caps and hoodies will be available and we expect that 60% of total visitors will spend $10USD. Potential total revenue from the ticket sales will be $______________________. Total revenue from T-shirt sales will be $__________________________. Total revenue from pop-up stores will be $_________________. Total revenue from concessions will be US $________________. TOTAL REVENUE $__________________________.

Ticket prices will be informed by local consultation, comparative costs elsewhere, and will be mindful of the need to offer Leisure Passport concessions in line with the city’s anti-poverty agenda.

There will also be a focus on increasing secondary spend as follows:

• Charging for augmented event offers such as express lanes

• Introduction of a pitch fee or % of takings from vendors

• Identifying a complimentary range of items for sale at events

Participation and Attendance

The Company’s goal to increase the number of adults and young people aged 16 and above from priority groups who participate in arts activities at least twice a year by 2% and to increase the number who attend arts events at least twice a year by 3% by 2025.

Of particular relevance to our markets in terms of policy direction is to echo markets which state that: “Arts have the power to change lives and communities and outdoor arts of all types have a particular ability to engage, inform and entertain audiences that might not otherwise attend art events”

The Company is committed to working with local authorities and other partners who use outdoor arts to celebrate, regenerate and animate their public spaces.

Quality of Life – Recent cultural studies displayed four key themes to provide a focus for investment and decision-making over the next 10–20 years:

Three of these themes are relevant to the Company:

• Embedding culture in growth and regeneration

• Developing creativity

• Growing cultural tourism

 

Miami Live Music Month – The cultural strategy for Miami that incorporates priority actions to increase cultural activities and to raise the profile of the cultural sector in Miami and beyond. The GMCVB and TDC monitors progress towards the following measures of success:

• The spend per head on cultural projects throughout Miami increases

• Recognizing Miami as a culturally significant county

• Whether a majority of local authority projects have a cultural dimension

• Whether people are participating in cultural events and activities across the country

Local Area Agreements – We have improvement targets that form an unspoken contract with market officials to deliver a specific level of performance. Relevant indicators that the proposed festivals will deliver outcomes against are as follows:

• Services for children and young people with disabilities.

• Access to services via public transport, walking and cycling. Information on

alternative methods of transport will be included in all promotional materials.

• Number of volunteer hours. Local volunteers will continue to be supported

through the festival with training and their contribution collated.

• Young people’s participation in positive activities. A number of events for young

people will be included in the festivals.

 

4.4 Competition Analysis

The Company does business in an exceptionally competitive landscape. The main reasons for such intense competition are the non-existent cost for consumers to switch companies. Customers are constantly looking for the best products at the lowest prices, so Rockers Movement and its competitors are forced to be highly innovative in obtaining and retaining customers. Because of consumers constantly evolving fashion and musical tastes this target demographic is a difficult group to appeal to. The competition is based on the following key points:

Timeliness of fashions trendiness

Breadth of merchandise

Brand recognition

Pricing

Quality

Overall shopping experience and environment.

 

5.0 Marketing Plan

5.1 Marketing

The Company intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted music markets. Below is an overview of the marketing strategies and objectives of the Company.

One of the benefits of world music is that enthusiasts are easily identified. Web sites such as jambands.com and jambase.com are the focal point for any major music festival. Driving traffic online through website optimization, email blasts, paid banners, e-releases and Google Ad Words to the main web site miamimusicfestival.com will lead ticket buyers to convenient ticket sales platform. A marketing mix including SMS mobile platforms, social networks, street teams, as well as radio and print at select colleges will spread the word to the 18-28 year-old target demographic. The marketing budget is $100,000USD.

 

5.2 Marketing Strategy

How will we grow? The aim of this event is to increase the brand image and its value, as well as reinforce the interactivity of the brand with the customer. The majority of the growth would operate during the event, but also after the event depending on the impact of the festival on social media. In other words, extolling the brand image will increase sales. In fact, this ephemeral event will be perceived as a specific event by the Company, and, will be in the line with the brand promotions. Indeed, this music festival will bring in new prospects who are lured by music and curious about the event. As a result, it will create awareness and attract new customers, as well as reinforce the feeling of already existing and loyal customers to the Rockers Movement brand and allow long-term growth. With its success, the Company will explore opportunities to export the event in other major cities across the globe, such as Paris, London, Manila and parts of the Caribbean. Moreover, new catalogs, and merchandise collections will be created specifically for each event. Before each festival, we launch an official website exclusive to each event. Event websites provide information and guidance for the fans; Patrons will be able to buy tickets and merchandise associated with the festival. These options will be available in online stores and event employees will be trained to address the customers in order to increase popularity of the brand. In order to increase awareness of the brand and the Festivals as well, we will purchase SEO keywords associated with the event and the Rockers Movement brand to make it easier for our customers to find us and familiarize themselves with our mission.

The Miami Music Festival will take place at the Historic Virginia key Beach Park, Miami, FL, Thanksgiving weekend every year. The event is expected to reach 20,000 attendees. The tickets will be sold before the event and on the day of the event. During the event itself, we will work on brand image and encourage interaction with our fans. The location of the Historic Virginia Key Beach Park will visually stimulate the customers and help them connect with the brand. This location is hip, urban, natural and trendy, same as the Company wants their customers to see and experience them. Visuals will be emphasized in order to stimulate the audience so they not only see but also feel the brand reaching out to them. The main strategy will be based on a new social media concept, allowing participants a chance for live interaction during the festival. This strategy will lead to a growth of the sales because it will spread the word about the brand on social media and relays the information to a larger audience, even to people not present at the event. So it will become international due in part to a live broadcast and the social media interaction. We will have a special desk to assist our fans in connecting with their social media platforms pertaining to the event itself. Mentions and “hashtags” such as @MiamiMusicFestival and #WeAreRockers or #MiamiRocks will be trademarked and used for next year’s event. We are confident that fans will come back to the event and bring their friends. Following the event, we will continue to monitor fan activities by following and commenting on their photos and videos, which they will take with our app, and answer any of their questions and inform them more about the brand.

What will change? The main ingredient is the integration of the brand into a social event. The creation of a new concept will bring a new association of ideas in customers mind. The festival will be seen in the long term as another important music festival that is part of our generation’s culture. It will be the place where new collections are launched, and unique artist performances that will make history in the music industry. Another change in our marketing strategy is that this festival will bring a new ‘Place’ in the 4P of the brand strategic plan. Indeed, aside from stores and online store, the event offers a new way to consider buying product.

 

5.3 Marketing Objectives

1. To create a successful event for the Company fans with 20,000+ attendees, and generate >$1 million in revenue by the end of 2015. The music festival will be similar to Coachella, Bonnaroo, and Hang Out Festival. The Festival will target millennials who are already followers of the brand, but also those who will be interested in the bands that will play at the festival. Those people will be targeted as potential customers. This year will be our sixth year in the greater Miami area. For that reason we expect to attract 20,000+ attendees. This population will be reached, prior to the event by direct e-mail, at point of purchase online on our website, through social media, radio, TV commercials and billboards. $1 million in revenue will be reached by the ticket sales and merchandise.

2. Increase the Company’s online community by 20% by the end of 2015. Customers will be incentivized when they join our social platforms and engage with the brand.

 

Management intends to employ contract with a qualified advertising and marketing firm to help the business reach its intended audience. This campaign will include the use of traditional print and media advertising as well as the Internet.

Tactics Strategy (1): By mixing the real and virtual world, we will create a completely new experience. This experience will appeal to the target audience as it will bring fun, new friendships, experiences, surprises, excitement that will encourage the guests to network, compete in contests, share photos, and more. This experience embraces the Rockers Movement brand image because as a precursor our “We Are Rockers” campaign, it will bring a new dimension to the brand and alternative music culture. The tactics will be organized in 3 parts, before, during and after the festival.

A) Tactics before the event: 1. PR: - Press release: The main goal is to inform and have publication about the festival in the press, especially in local newspapers, Miami tourism center magazines and brochures as well as specialized press. Here is a comprehensive list of targeted press:

• Miami New Times

• Miami Herald

• Elle

• Cosmopolitan

• GQ

• Rolling Stones

• Billboard Magazine

These press releases will also mention and get the attention on the non-profit organization that sponsor of the event. - Blog PR: Not to forget into our PR initiatives, the blog PR have the same role as traditional PR but online. Notable blogs will be used such as PRnewser or PRSquared.

Tactics Strategy (2): Online content: - Annual ephemeral website: The goal is to have a special website to sell the tickets and start attract online customers. It will give access to the collectible(s) store and the details about the event as well. - App: In parallel, an exclusive app would be launched for the event and linked to the website to order collectible items and tickets. - SEO: The goal is to keep the website on the first page of research engines (Google, Bing, Yahoo) from September to the festival with the use of key words like:

• Music festival

• Miami event

• What to do in Miami

• Party

• Concert

• November in Miami

3. Social media: - Start the social media strategy on the Company social media platforms (Creation of a Facebook event for people to RSVP and start an ‘online word of mouth’. Gaining fans on different platforms (Facebook, Twitter, Pinterest, Instagram and others) and consequently potential costumers.) - YouTube channel: opening of a special YouTube channel with videos posted regularly before the event with special appearances and messages from the talent and performing at the event.

Tactics Strategy (3): Media - YouTube Ads: Buy a 15-second advertisement spots on YouTube to be aired before YouTube music videos. - Website Banners: Buy advertisement banner to be posted on music specialized websites. - Media buying: Buy a set of traditional media to advertise. Here is a comprehensive list of targeted support: print magazines, quarter page in Rolling Stone, Miami New Times, Miami Herald, campus magazine (UM, FIU, NOVA South Eastern, FAU, MDC) • Billboard • Local radio spot (BIG 105FM, Hot 105FM, Z100FM, 99Jamz) • Web radio spot (Pandora and iHeart Radio) 5. Traditional Marketing -Direct mail and email by using the database of loyal customers to send out a flyer and online call to action to purchase.

Tactics Strategy (4): Tactics during the event: 1. Online during the event: - YouTube broadcast: Air and online and live broadcast on YouTube to attract worldwide viewers and create awareness of the brand around the globe. A secondary goal is to encourage viewers to interact and initiate discussions on social media platforms. 2. Live Twitter feed during the event: - The primary use of Twitter as part of the festival with special features for exclusive content and services, Twitter will:

• Allow everyone to connect to their own social community for meeting, interacting, having fun, experiencing, flirting, tweeting as well as much more.

• Be accessible only through the Festival’s WiFi

• Encourage the guests to communicate with the Information desk via #MiamiMusicFestival “hashtag”.

• Allow services to be requested by making use of the hashtag (#). Such as #Valet, #snack etc.

• Allow the guests to register by making use of their Twitter accounts.

• Allow order of #food directly to #foodtrucks of the festival by using twitter.

• Allow order of #collectible to pick it up at the store later.

• Facilitate guests to #RockWithUs and find each other.

• Give access to live information that will be send to the guests through mention on twitter.

• Allow guests to book #VIPspace - Several photo booths will be set on the area of the festival, each photo would be send on Instagram and Twitter via this special access to the festival network.

Tactics Strategy (5): Tactics after the event: 1. PR -Press release: We will create newsworthy content regarding the success of the festival as well as the amount of the donation raised for our charitable beneficiary. 2. Online content: - Video montage: The goal is to upload exclusive footage such as backstage videos, best of live moment of the festival on YouTube channel and on the website of the event. - Photo album with the logo Rockers Movement: The goal is to create and album to be shared on Facebook where the participants will tag themselves so it can be shared across social media; creating a viral feed to share with their communities. - Positive Sentiment: The idea is to research via different social media tools such as ‘social mention’, platform observation and analytics to give to the audience the percentage of positive impact the festival had on the participants.

Key marketing objectives are as follows:

1) Maximize the cultural offer.

2) Maximize revenue potential.

3) Maximize community economic impact.

4) Achieve widest possible market penetration.

5) Achieve maximum profile

Success will be dependent on ensuring the most appropriate marketing media is used to communicate the offer. A marketing tactics and action plan will be developed with support from the Communications Team once the final talent lineup is secured. We currently use a combination of segmented marketing to enable us to encourage an increase in general cultural participation.

In addition to profiling the Festival in the standard advertising platforms, we plan to send a calendar of events to every household, effectively offering 'somewhere to go and something to do', a key message in terms of stated public need by mail and/or email.

The targeted distribution of the Festival will be achieved via the web platforms, supermarkets, theatres, leisure centers and tourist information centers. In order to rationalize the production of large amounts of leaflets, posters and adverts in the local press, we will need to make decisions regarding further targeting customers and consider whether to use more precisely directed messages and methods that target niche groups with specialist interests.


5.5 Budgets Strategy

Budget Strategy (1): Before

1. Public Relations: 3 persons working full time on PR and blog PR (writing and sending press releases and media kit, call journalists, reach out bloggers...): $_______________

2. Ephemeral Website: (Web designer, developer, graphic designer and domain name) $______________

3. Social Media: (Community Manager) $________________________

4. App: (Development on IOS and Android) $________________________

5. SEO: (Using Google Ad Words) $_______________________

6. Online Media

YouTube Ads: ($30 per CPC) $________________________

Website Banners: ($15 per CPC) $________________________

Web Radio: (iHeart and Pandora) $________________________

7. Print Magazine:

Rolling Stones $________________________

Miami New Times $________________________

Miami Herald $________________________

Latin Papers $________________________

Sun Sentinel $________________________

WPB Newspaper $________________________

Boca Raton Paper $________________________

Orlando Paper $________________________

Billboards $________________________

Mainstream Radio: $________________________

Underground Radio $________________________

College Radio $_________________________

Total: $________________________

 

Budget Strategy (2) During Miami Music Festival :

1. Production of the entire event: (staff, security, stage, lighting, insurance) $_________

2. Social Media (Ten persons working on the social media management) $________

3. Wifi $_____________

Total: $_____________

 

Budget Strategy (3) After Miami Music Festival :

1. PR: (One person working full time for one month) $__________

2. Social Media (Community Manager) $_____________

Total: $_____________

Total: $__________________

 

5.6 Metrics Strategy

How will we know if we are successful? In order to know if we were successful, we will measure the results of each of our tactics, using specific tools. First, the amount of tickets sold will tell the Company if the event itself was successful, and also from the revenue we will get from the locations during the festival (selling our limited edition line). For the PR and blog PR, we can calculate the number of articles we’ve got from all the press releases and media kit that were sent out. For direct mail, we will check the number of inquiries. From the app, we will know from IOS and Android how many people download the app, how many people deleted it and also all the comments on it are accessible online. Same for the website, we will check the traffic. For all the social media tactics, we can measure the quantity and the quality of the results.

Quantity:

number of fans,

number of comments,

number of likes,

number of sharing on each post related to the event

Quality:

By reading all the comments, we will figure it out if they are positive or not (using the tool Social Mention).

For the media buying (radio, billboards, print magazine, pre-roll on Youtube, banners), the only way to know if we are successful is to reach out to a survey company and ask them to do a report. They will ask a panel and do some tests (brand recognition and event recognition).

The results will help us if we will conduct the event for the year after, or in another city.

 

5.7 Pricing

Our pricing strategy will be based on the competitive method. We researched other festivals that are similar to the festival we offer. They are similar either in the type of music, type of customers and the style. Here are our findings: - Coachella - in (California) (3 days): $345 - Rock En Seine - in (France) (3 days): $150 - H&M Music Festival - in (Paris) (1 night): Only VIP invitation - Glastonbury Festival - in (England) (3 days): $300 - Outside Lands - in (California) (3 days): $250 - Main Square Festival - in (France) (3 days): $150 - Tomorrowland - in (Belgium) (3 days): $450 - Igloofest - in (Canada) (1 night): $30 Based on this competitive analysis, here is our pricing strategy: Basic price: 60$ VIP Pass: 120$ (Included: a backstage pass and access to a VIP corner).

Distribution & Sales Strategy

For the festivals, we will have to sell tickets, and there are two optimum ways to do so: Online, Tickets will be available online, through our site and Ticketmaster, and in local mom and pop stores. A new menu category will be added on the website to make it accessible for everybody, and improve visibility for the festival. This new category on the website will include all the information about the event, the partnerships, the benefitting organization, volunteer info and the line-up. We will provide P.O.P. ads, such as posters and flyers for each location, to showcase the event. The sales team will be trained to sell and promote the event. Each employee will receive a note and the manager of each store will organize a training session for employees on how to upsell the festival and merchandise.

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