I was the group leader in this project to analysis the Broadway industry, conduct primary & secondary research and provide recommendations for Broadway. The leave behind was submitted for a Marketing Research course.
Broadway Analysis Group Members: David De Rosa Julie Lefeuvre Amanda Paquin Sonny Patel 1
Executive Summary Research on Broadway was conducted to increase annual Broadway attendance of the secondarytarget audience. From this objective, Broadway should subsequently see an increase in annual revenueand ticket sales. The research was conducted to obtain a better understanding of the entertainment andBroadway industries, as well as, an understanding of the attitudes and purchasing habits of theatergoers. The methodology of this study began with a situational analysis to determine the history andcurrent state of the entertainment and Broadway industries. The target audience for Broadway wasresearched and analyzed. Following the target audience analysis, secondary markets were determined.These markets were targeted in a survey with a sample size of 42 males and females. The survey resultswere analyzed in IBM SPSS to interpret the data and determine suitable conclusions recommendations. We have found that the cast, advertising and ticket prices are major factors in patron’s willingnessto attend Broadway. Members of our secondary target audience are likely to recommend Broadwayshows and research the show’s ticket prices before attending. This shows a high level of preparationwhen considering a Broadway show. Satisfaction is dependent upon the theatergoers perception ofBroadway. Future attendance is dependent upon the cast members of the Broadway show. Word-of-mouth is dependent upon the theatergoers willingness to attend Broadway. We recommend that Broadway increase advertising towards secondary markets, continue to castcelebrity actors, and increase awareness of discount ticket options. 2
Market Size Shows in Production 48 Broadway 222 Off-Broadway 323 Off-Off-Broadway • 40 Broadway Theaters in Manhattan make up ―Broadway‖ • 2010-2011 season: 42 shows opened • 2010-2011 total attendance: 12,534,595 • 2010-2011 attendance grew 5.4% from 2009-2010 4Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. <http://www.theatermania.com>.The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.
Trends in Sales Yearly Grosses 1,200,000,000 1,000,000,000 800,000,000 600,000,000 400,000,000 200,000,000 0 1 0 9 8 7 6 5 4 3 2 1 01 01 00 00 00 00 00 00 00 00 00 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 -2 10 09 08 07 06 05 04 03 02 01 00 20 20 20 20 20 20 20 20 20 20 20 • Ticket sales have steadily increased over the past decade • During the financial crisis, ticket sales remained constant from previous year 5The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.
Ticket Price Trends Average Broadway Ticket Price ($) 2010 82 2006 67 2000 52 1999 50 0 20 40 60 80 100 • Steady increase in average Broadway ticket price due to economic inflation • $32 increase in average price in 11 years • 2010 average Orchestra ticket price is $140"Theres No Business like Broadways: Lessons in Ticket Pricing from New York | Stage | Guardian.co.uk." Latest News, Sport and Comment from the Guardian | The Guardian. Web. 23 Oct. 2011.http://www.guardian.co.uk/stage/theatreblog/2011/jan/17/broadway-lessons-ticket-pricing-discounts.Robertson, Campbell. "Broadway - Tickets - Theater - New York Times." The New York Times - Breaking News, World News & Multimedia. 23 Oct. 2011. Web. 23 Oct. 2011.<http://www.nytimes.com/2006/05/08/theater/08tick.html?pagewanted=all>.Back Stage; 06/09/2000, Vol. 41 Issue 23, p5, 2p 6"Theres No Business like Broadways: Lessons in Ticket Pricing from New York | Stage | Guardian.co.uk." Latest News, Sport and Comment from the Guardian | The Guardian. Web. 23 Oct. 2011.<http://www.guardian.co.uk/stage/theatreblog/2011/jan/17/broadway-lessons-ticket-pricing-discounts>.
Lifestyle Trends • Those are attended live theater in the last 12 months are 40 times more likely to be politically very liberal Sample 189 compared to the average (000) 3,091 • Liberal outlook is projected to appeal to the audience Vertical 6.64% • Will Ferrell starred in You’re Welcome America • Growth of contemporary rock music in original musicals Horizontal 30% • Popular musicals include: Spring Awakening, Bloody Index 140 Bloody Andrew Jackson, & Rock of Ages • Growth in new productions from novels Base 1.41% • Popular titles include: The Light in the Piazza, Les Liaisons Dangereuses, The Color Purple, & Wicked • Growth of new musicals from film • Popular musicals include: The Little Mermaid, Beauty and the Beast, Shrek, Legally Blonde, 9 to 5, The Wedding Singer, Mary Poppins, & The Lion King • Popular musicals include: Spring Awakening, Bloody Bloody Andrew Jackson, & Rock of AgesSimmons Choices 3 7Back Stage (19305966); 2/12/2009, Vol. 50 Issue 7, p10-11, 2p, 1 Color PhotographBroadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. http://www.theatermania.com.
Seasonal Factors • Highest grossing months include: December and April • A steady increase in total sales leading up to December Seasonality of Total Broadway Ticket Sales • Fall show openings occur in November • Theatergoers are purchasing tickets for holiday gifts • Steady increase after the holiday season leading up to April • Spring show openings occur in April • Tony award nominees are announced in the spring 8Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. <http://www.theatermania.com>.
Changes in Consumer Relationship • Change from Broadway star to main stream stars on Broadway • Original Broadway stars include: Bernadette Peters, Angela Lansbury, Patti LuPone, Julie Andrews, Fred Astaire, Gene Kelly, and Ben Vereen • New Actors to Broadway include: Catherine Zeta Jones, Dane Cook, Julia Stiles, Daniel Radcliffe, Laura Linney, Brooke Shields, and Christina Rucci • A focus on musicals appropriate for child audience • Popular titles include: Cats, Beauty and the Beast, Shrek, The Addams Family, The Lion King, Mary Poppins, Spiderman: Turn Off the Dark 9"Broadway: The American Musical . Stars Over Broadway | PBS." PBS: Public Broadcasting Service. Web. 23 Oct. 2011. <http://www.pbs.org/wnet/broadway/stars/index.html>.Broadway Tickets and Discount Theater Tickets for Broadway Shows at TheaterMania.com. Web. 18 Oct. 2011. <http://www.theatermania.com>.
Top Ten Broadway Hits Rank Show Name Gross Avg Tkt Price Broadway Run Performances 1 Phantom Of The Opera $770.0M $76.75 24 years* 9283 2 The Lion King $699.1M $104.85 15 years* 5197 3 Wicked $467.6M $108.90 9 years* 2718 4 Beauty & The Beast $429.2M $86.20 14 years 5461 5 Mamma Mia $416.9M $83.14 11 years* 3560 6 Les Miserables $406.3M $80.76 17 years 6680 7 Chicago $377.4M $77.72 16 years* 5612 8 Cats $366.4M $59.56 19 years 7485 9 The Producers $288.4M $67.48 7 years 2502 10 Miss Saigon $285.8M $65.71 11 years 4092 *Denotes a Presently running show Disney has been successful on Broadway after producing six Broadway shows including: Beauty & the Beast, Tarzan, The Lion King, Mary Poppins, Aida, and The Little Mermaid. Disney has produced two productions that rank in the top 4 major hits in Broadway history. 11"15 Biggest Broadway Hits of All Time." CNBC. CNBC, n.d. Web. 22 Oct 2011. <http://www.cnbc.com/id/39656612/15_Biggest_Broadway_Hits_of_All_Time>.
Trends in Spending • 2010 – 2011 Spending Broadway Spending Direct Spending Total Impact (million $) (million $) Spending by Broadway $5,192.2 $7,700.1 Tourists Show Expenses $949.2 $2,048.5 Theatre Expenses $34.6 $51.4 Total $6,175.9 $9,800.1 • Broadway positively impacts New York City’s economy • Broadway’s substantial economic contributions strengthens the ties with city community 12The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.
Trends of Growth • 2010-2011 produced record high gross with a 5.9% increase from previous year • 2010-2011 attendance grew 5.4% from last year 13The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. <http://www.broadwayleague.com>.
Current Positioning • Broadway’s main objective is to sell tickets • Broadway positions towards tourists over Manhattan locals • Producers will open productions with familiar titles to draw in tourists • Directors will cast familiar actors/actresses to draw in tourists • Broadway aims to provide entertainment for all ages that may appeal to a mass audience with a wide genre of productions • Heavy users attend 6+ live events per year (6%) 14The Broadway League - The Official Website of the Broadway Theatre Industry. Web. 18 Oct. 2011. http://www.broadwayleague.com.
Goals & Objectives The goal of this study is to determine why the secondary target audience—coupleswith children or planning to have children between the ages of 25 – 44—is notattending Broadway as often as the primary target audience which includescouples, families and individuals 45 years of age and older. Given the high attendancerate of the primary target audience, we chose to focus on the variables that negativelyimpact the next largest audience in hopes that it will increase that segment’s attendance. The objectives of this study are to increase annual Broadway attendance ofsecondary target market and subsequently increase annual revenue and ticket sales forBroadway. Additionally, the study aims to discover a better understanding of theattitudes and purchasing habits of the secondary target market. 16
Type and Intent of Study The situational analysis using secondary research from Simmons Choices3, Playbill.com, Theatermania.com, and Broadwayleague.com will assist with the intentof the Broadway study. The research will aim to get a better understanding of theoverall entertainment and Broadway industries and to understand the attitudes andbuying habits of the primary target audience. The survey analysis using primary research by surveying the secondary targets’attitudes toward Broadway will show results that can assist with recommendations andconclusions. The primary research will aim to understand the attitudes and buyinghabits of the secondary target market and determine factors that may or may notincrease or decrease the attendance of Broadway performances. 1st 2nd 17
Definition of Population & MethodologySample size: 42Gender: Males & FemalesAge Range: 25 – 44Martial Status: AnyChildren: Planning to have or currently have one or more childrenGeographic Region: New York, New Jersey, Pennsylvania, Connecticut and Lyon, FranceEthnicity: African American, Asian, Caucasian, Hispanic and Multi-Racial From November 10th 2011 to November 27th 2011, 43 surveys were administered to occupants ofthe general Northeast area in 4 different locations. Survey questions were chosen based on a situationalanalysis of the entertainment and theater industries and their relevance to the goal of this study. Intotal, 43 questionnaires were distributed and 42 were deemed valid, representing a usability of 98%.Preliminary questions were asked to ensure each survey taker was within the secondary target marketpopulation. Survey questions were asked to determine factors that inhibit Broadway attendance. 18
Questionnaire DevelopmentSurvey Objectives To discover the factors that most influence the buying and spending habits ofBroadway-goers in either a negative or positive way.Data Collection Method Most of the surveys were self-administered. A few surveys were administered viaemail. Potential survey-takers were screened to determine whether they hadchildren, and if not, were excluded from the study.Individual Question Content To remain unbiased and objective, various attitude questions were asked, using thesemantic differential method. This method demonstrated the level of attention ofsurvey-takers. Various, nominal, ordinal, interval, and ratio questions were asked.Ratio questions were asked to limit the inability to respond.Question Wording and Sequence Objective wording was used to avoiding leading respondents to a desiredresponse. The sequence of survey questions were ordered from broad to detailed andended with demographic questions. 19
Segmentations & Target Market Choice The research objective to survey both men and women was met. Findings show that there were slightly more men surveyed then women. 21IBM SPSS Statistics
Segmentations & Target Market Choice 69.04% of the survey population are Caucasian. This statistic is consistent with the target market defined in the situational analysis. 22IBM SPSS Statistics
Descriptive Survey Analysis From the people surveyed: • 5 earn less than $40,000 a year. • 22 earn between $40,000 to $80,000 • 8 earn between $80,000 to $125,000 • 5 earn between $125,000 to $200,000 • 2 earn more than $200,000 23IBM SPSS Statistics
Segmentations & Target Market Choice From those surveyed: • 19 have 1 child • 14 have 2 children • 7 have 3 children • 1 has 4 children • 1 has more than 5 children 24IBM SPSS Statistics
Segmentations & Target Market Choice Out of those surveyed, the vast majority (78.57%) had attended a Broadway show in the last 12 months. Although their past attendance does not determine their future attendance, this shows that most of those surveyed have a prior interest in theater. 25IBM SPSS Statistics
Means Analysis Statements Mean The cast of Bway determines my desire to 3.67 attend. I am likely to recommend a Bway show. 4.60 Advertising for Bway influences my choice 3.68 of show. Theater-goers are indifferent towards a I go to Bway because my family wants to 3.52 Broadway show’s cast (11.9%), influence of go to Bway. I research Bway ticket prices before 4.00 advertising (19%), researching ticket prices 1-7 choosing a show. (9.5%), and attending Broadway based on I attend Bway because I want to. 4.74 family’s wants (2.4%) and special occasions I only see Bway shows for special 4.26 (11.9%). The above values indicate the occasions. After attending a show I dislike, I will 4.19 percentage of the median responses. Of the continue to attend Bway in the future. survey-takers, 54.7% responded any disagree I am satisfied with the price of my Bway 3.14 that they are satisfied with their ticket price. tickets. Makes me feel valuable. 3.43 The results also showed that 57.1% Makes me feel wise. 3.52 responded any agree to recommending a Makes me feel pleasant. 4.33 Broadway show and 61.9% to attending Makes me feel nice. 4.21 Makes me feel agreeable. 3.36 Broadway because they wanted to. 1-5 Makes me feel happy. 3.98 I find Bway positive. 4.26 I find Bway exciting. 3.81 I find Bway affordable. 2.26 I find Bway stimulating. 3.14 26IBM SPSS Statistics
Correlation Analysis Correlated Statements from Survey QuestionsThe cast of Broadway influences my desire to attend. 0.586 I will attend Broadway in the next 12 mos.I seek out new productions on Broadway. 0.546 I will attend Broadway in the next 12 mos.I only see Broadway shows for special occasions. -0.803 Attended Broadway last 12 months.I attend Broadway because I want to. 0.797 I am likely to recommend a Broadway show.I will continue to attend Broadway after being dissatisfied. 0.545 I am likely to recommend a Broadway show.Broadway makes me feel wise. 0.532 I am likely to recommend a Broadway show.I find Broadway to be exciting. 0.587 I am likely to recommend a Broadway show.I find Broadway to be exciting. 0.587 I am likely to recommend a Broadway show.Broadway makes me feel nice. 0.542 I am likely to recommend a Broadway show.I attend Broadway because I want to. 0.570 I find Broadway to be exciting.Broadway makes me feel wise. 0.600 I find Broadway to be exciting.Broadway makes me feel valuable. 0.571 Broadway makes me feel wise.Broadway makes me feel valuable. 0.581 Broadway makes me feel useful.Broadway makes me feel wise. 0.620 Broadway makes me feel useful. Statements from the survey results were rated. Using SPSS, the data was able to be correlated for similarity. Negative correlations indicate an inverse relationship between two statements. For example, when the survey taker agreed that they only see Broadway show for special occasions, they did not attend Broadway in the last 12 months. Strong positive correlations indicate that both statements are likely to happen together. When theatergoers attend Broadway because they want to, they are also likely to recommend a Broadway show. 27 IBM SPSS Statistics
Correlation Analysis Correlated Statements from Survey QuestionsI attend Broadway because I want to. 0.537 I find Broadway to be positive.I am dissatisfied after going seeing a Broadway show. -0.621 I find Broadway to be positive.Broadway makes me feel wise. 0.590 I find Broadway to be positive.Broadway makes me feel pleasant. 0.505 I find Broadway to be positive.I am dissatisfied after going seeing a Broadway show. -0.622 Broadway makes me feel nice.Broadway makes me feel valuable. 0.509 Broadway makes me feel nice.Broadway makes me feel wise. 0.568 Broadway makes me feel nice.Broadway makes me feel pleasant. 0.795 Broadway makes me feel nice.Broadway makes me feel wise. 0.634 Broadway makes me feel pleasant.Broadway makes me feel useful. 0.547 Broadway makes me feel pleasant.I am dissatisfied after going seeing a Broadway show. -0.653 Broadway makes me feel pleasant.I will continue attending Broadway after being dissatisfied. 0.508 I attend Broadway because I want to. The above statements are additional correlations that were found using SPSS. The correlations are made through the attitudes of the survey takers. When Broadway makes the target feel pleasant, the target also feels nice. When the target is dissatisfied after going to see a Broadway show, the do not feel pleasant. 28 IBM SPSS Statistics
Regression Analysis: Satisfaction IV DV Feel pleasant IV Dissatisfaction Find B’way positive Satisfaction is dependent upon the theater-goers perception of Broadway. When the theater-goer does not feel pleasant towards Broadway or find Broadway positive, then dissatisfaction occurs. Feeling pleasant has a significance of .012 and finding Broadway positive has a significance of .011. These high significances support our interpretations of Broadway dissatisfaction. 29IBM SPSS Statistics
Regression Analysis: Future Attendance IV DV Cast I will attend B’way in the next 12 mos. IV Attend last 12 mos. Future attendance of Broadway is dependent upon the cast of the Broadway show. Attending a Broadway show in the last 12 months does not affect future attendance. The casts of Broadway hold a significance of .002, while the previous attendance has a significance of .010. 30IBM SPSS Statistics
Regression Analysis: Future Attendance DV IV After disliking a B’way I attend .508 show, I will continue to B’way attend B’way because I want to After a theater-goer experiences dissatisfaction from seeing a Broadway show, they are still likely to attend Broadway in the future. With 99% confidence, future attendance is dependent upon theater-goers attending Broadway because they want to. The dependent variable has a beta coefficient of .508. 31IBM SPSS Statistics
Regression Analysis: Word of Mouth DV IV I go to .596 I am likely to recommend B’way a B’way show because I want to Word of mouth affects the future attendance of Broadway. The likelihood of a theater-goer to recommend a Broadway show is dependent upon the theater-goer attending Broadway because they want to. The beta coefficient is .596. There is a 100% confidence level in the relationship between independently attending Broadway and their recommendations to others. 32IBM SPSS Statistics