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An Environmental Analysis for
Insomniac
Julia Marques Simoes
Full Sail University
Project & Portfolio II: Business and Marketing
February 16, 2020
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The STEEPLE Analysis
SOCIOLOGICAL: Over the past few years, people have been sharing their lives a lot more that
they used to. With social media and other resources, people get inspired and motivated by what
other people are doing. Insomniac produces events where everything is magical; people want to
be part of these experiences to share with their followers and create unforgettable memories.
According to (Gajanan, 2019), for people nowadays “sharing a clip from a Billie Eilish or
Cardi B performance with one’s Instagram followers is more gratifying than buying
something expensive.”
TECHNOLOGICAL: Insomniac’s events are well known for its magical stages, liver
performances, and breathtaking lineup. However, technology is not going to stop innovating
anytime soon. According to (Sheth, 2019), there are a few event-tech trends out there improving
festivals’ outcomes. For example, facial recognition helping with attendee management, drones
producing high quality videos that could be used for marketing purpose in the future, and mobile
apps where attendees could have access to the festival’s map and lineup.
ECONOMIC: Producing a three-day festival with enormous stages, prestigious lineup,
performers, food, and drinks take a lot of investment. As a result, ticket prices keep going up, but
people don’t stop buying it. According to (Kopf, 2019), “concert ticket prices in the US have
exploded over the past 40 years. The cost of the average concert ticket increased from just $12 in
1981 to $64 in 2017.”
ECOLOGICAL: Over the last few years, companies have been trying to take steps towards
sustainability since there is an eco-friendly chain going around making customers question
themselves about the products and services they are buying; it is no different with festival
producers. According to (Our People Entertainment, 2017), “In the US, festivals generate 107
tons of waste daily, with only 20% of that waste being properly recycled”. With that being said,
it would be interesting for Insomniac to position themselves about their decisions and how it
impacts the environment.
POLITICAL: Being politically engaged has become a trend in this generation and yet, politics
have always been a theme for songs and all types of art. Festivals a lot of times work as a
escapism mechanism for those who don’t fit in; people wear what they want, dance how they
want and do what they want. According to (Minamore, 2017), with millennials squaring up with
a political landscape, “it’s no wonder the consumerism and excess of music festivals is become
counteracted with attempts to engage audiences politically.”
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LEGAL: The event Electric Daisy Carnival (EDC) have had problems with attendees using drugs
during the festival in most editions. Furthermore, there have been cases where people got into car
accidents for drinking and driving after the festival. Fortunately, there were 30 fewer arrests in
EDC 2019 comparing to the previous edition (2018), according to (Lacanlale, 2019).
ETHICAL: Insomniac has faced a lawsuit a few years ago where they were called unethical for
not delivering on its promises. The company got sued for breaking federal laws when recruiting
unpaid volunteers. According to (Voss, 2014), even though people willingly signed up as
volunteers, Insomniac promised that they would have time to enjoy some live music in exchange
for their hard work, but that never happened.
The SWOT Analysis
HELPFUL HARMFUL
INTERNAL
STRENGTHS
1. EDC’s enormous stages is definitely a
strength. With thousands of bright lights,
fireworks, backdrops, and performers;
attendees get a magical feeling whenever
looking at it.
2. The atmosphere is like nothing else.
Insomniac values good energy, respect,
and inclusivity; attendees feel welcome
and loved throughout the entire event.
Also, they make sure that all attendees are
safe by providing free water, emergency
stations and “Ground Control” (a group of
staff that makes sure everyone is okay
throughout the entire event).
3. The lineup booked for EDC is always
better than the attendees’ high
expectations. With more than 60 artists,
the festival stands out and attracts a lot of
new customers.
WEAKNESSES
1. Insomniac has not made any statement
about where they stand regarding the
environment. The environmental trend
makes the customers doubt about how
ecologically concerned the company is.
2. Insomniac lacks communication skills.
In big events is important to keep
communicating the attendees, with clear
messages, about directions and warnings
to avoid chaos.
3. Insomniac lacks online engagement.
The company’s social media have little
engagement and not many followers. They
could be reaching new customers and
advertising future events by taking
advantage of online platforms, especially
with a target market for ages between 18-
27 (mostly).
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EXTERNAL
OPPORTUNITIES
1. Since the number of attendees on EDC
have been going up over the last few
editions, bigger venues would be a great
opportunity to provide more comfort to its
customers.
2. Even though it’s not on Insomniac’s
control, the social trend of posting and
sharing everything on social media could
help them by giving free advertising. It
could be used in their favor with good
online engagement.
3. New electronic dance music artists and
d-jays that could launch new projects and
release new music at EDC as an
unexpected and/or special guest.
THREATS
1. Even though most attendees don’t seem
to care about the weather conditions once
they arrive at the festival, extreme weather
conditions can be a huge threat regarding
safety and logistics.
2. Unprepared staff provided by staffing
agencies could harm EDC at a deeper
level. In festivals is crucial to have trained
staff to help attendees whenever they need
in the best way possible.
3. Competition is also a huge threat to
Insomniac. Even though most festivals
happen at different dates, customers can
not always afford to attend all of them, so
they need to make a choice. Competitors
such as Ultras, Creamfields, and
Tomorrowland provide a very similar
product making it very hard to stand out.
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Conclusions
Insomniac is indeed one of the first companies to pop into people’s head when the subject
is electronic dance music festivals. There is no doubt that their events, in this case EDC, succeed
at satisfying customer and putting on a show. However, success cannot be taken for granted and
the hard work must continue; even the smallest slip can have big consequences. The information
on both, STEEPLE and SWOT, shows that even a successful company like Insomniac has to
watch out for its weakness to do better.
As mentioned, Insomniac had problems with attendees using drugs, drinking alcohol and
eventually driving. Fortunately, according to (Globe Newswire, 2010), Insomniac has hired a
consulting firm that has experience creating overall safety and security protocols for large
venues, to analyze Insomniac’s current and proposed safety protocols and procedures for the
company's music festivals throughout the United States.
Furthermore, Insomniac could face a big problem with its customers if they don’t make a
statement about where the company stands regarding the environment and if they have any plans
on “going green” anytime soon. Just like politics, the environment has been a huge topic
amongst society which makes people ask themselves about the products they buy, services they
use, places they go and things they do. From an analyst standpoint of view, not positioning the
company in topics that matter to its customers could have a negative effect on how well the
festivals will perform.
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References:
Gajanan, M. (2019, August 14). How Music Festivals Became Such a Big Business. Retrieved
from https://time.com/5651255/business-of-music-festivals/
Globe Newswire. (July 15, 2010 Thursday). Insomniac Events Hires Safety Experts to Prepare
Best Practice Procedures for Music Festivals Nationwide; Introduces 18 and Older Policy
Nationwide. GlobeNewswire. Retrieved from https://advance-lexis-
com.oclc.fullsail.edu/api/document?collection=news&id=urn:contentItem:7YY9-76F1-2PFX-
80M9-00000-00&context=1516831.
Kopf, D. (2019, July 2). Economics explains why there are so many music festivals now.
Retrieved from https://qz.com/quartzy/1655137/economics-explains-why-there-are-so-many-
music-festivals/
Lacanlale, R. (May 20, 2019). Arrests decline by nearly a third at this year's EDC. Retrieved
from https://www.reviewjournal.com/crime/arrests-decline-by-nearly-a-third-at-this-years-edc-
1668511/
Minamore, B. (August 30, 2017). Music Festivals Are Inherently Political Now - And That's A
Good Thing. Retrieved from https://graziadaily.co.uk/life/music/politicization-festivals/
Our People Entertainment. (2019, June 2017). Music Festivals Going Green. Retrieved from
https://ourpplent.com/2018/09/12/music-festivals-going-green/
Sheth, H. (2019, June 24). Top 10 Event-Tech Trends for 2019. Retrieved from
https://medium.com/hubilo-officil-blog/top-10-event-tech-trends-for-2019-d6bf51f32238
Voss, T. (April 23, 2014). Insomniac Lawsuit: What's the Problem with Recruiting Unpaid
Volunteers? Retrieved from https://www.classaction.org/blog/insomniac-lawsuit-whats-the-
problem-with-recruiting-unpaid-volunteers
