Daytona Waves Music Festival Proposal

Strategic Business Proposal
for
For: Daytona International Speedway
http://www.daytonainternationalspeedway.com/
Prepared On: October 7, 2018
Prepared By: Carlos Hayes Jr.
Juan Solano
Rameh Echeverri
Veronica Concha
Nick Orlando
Instructor Name: Annie Quaile

Strategic Business Proposal 2
Contents
Introduction 3
Executive Summary 3
1. Organizational Challenges& ProposedSolution 4
Organizational Challenges 4
Proposed Solution 4
2. Environmental Scanning 4
Internal Analysis 4
External Analysis 9
3. Strategy Formulation 13
Operations 13
Sales,Marketing,&Distribution 14
Legal 15
4. Proposal Budget & Projections 17
SalesProjections 17
ProjectBudget 18
5. Strategy Implementation 19
Timeline andKeyMilestones 19
6. Future Plans 20
Long-TermOpportunityandDevelopmentPlans 20
7. AppendicesandReferences 21
References 22
Appendices 29
Appendix 1:OrganizationalChart 29
Appendix 2:Social MediaTimeline 30
Appendix 3:SalesProjections 31
Appendix 4:Expenses 32
Appendix 5:Income Statement 37
Appendix 6:MarketingPiece 38

Introduction
Executive Summary
The keystone event of the Daytona International Speedway, the Daytona 500, has been struggling
in recent years. But fear not, there is hope. It is no secret that music festivals have become king
of live entertainment. In 2017, Coachella became the first reoccurring festival to break $100
million in profits in a single year, bringing in a whopping $114 million net (Grammy, 2017). Who
is the leading customer of this festival craze? Millennials. The Daytona International Speedway
has a great opportunity to leverage their venue to create a strong festival brand to attract these
entertainment and experience-hungry customers, with the new Daytona Waves Music Festival.
More than three out of four of millennials (78%) say that they prefer to spend their money on
experiences rather than consumer goods, and they make this choice several times annually
(Eventbrite, 2017). This is a trend that is continuing to increase – 72% say they would like to
increase their spending on experiences next year (Eventbrite 2017). They attend an average of
12.15 entertainment events per year, which is more than twice the average of the entire U.S.
population of 5.6 events per year (SBD, 2015).
This festival will be held around the time of spring break, capitalizing on the thousands of
millennials already planning to travel to the Daytona Beach area. What this also means for the
Daytona community and economy is that the city will again become a leading destination for
spring breakers, now that this experience will be something that other popular destinations in
Florida and the Southeast cannot offer.
Being that the Daytona Speedway has already held multiple successful renditions of the Country
500 music festival, we already have a great template for the infrastructure we will need to put in
place for the operation of the event. On top of that, the Daytona Waves will be able to capitalize
on some of the long-lasting sponsorship partners that the venue and corporation currently hold.
Recently, the Florida music scene lost a great attraction with the shutting down of the
Okeechobee Music Festival. What this means for the Daytona Speedway however is a huge
opportunity. A huge opportunity to step in and fillthis gap in the marketplace, as well as become
a leading music festival venue for millennial audiences. Much like Okeechobee, Daytona Waves
will be a mixed-genre music festival, booking acts in Rock, R&B, Trap, Hip-hop, Pop, and EDM
genres. By filling this gap in the marketplace, we project ticket sales to grow to 60,000 attendees
after only 3 years of operation. In year 1 we project having $3.255 million in revenue with only
$968,650 in expenses, leaving a net profit of $2.286 million. This means a new consistent stream
of income for the racetrack, as well as other profitable revenue streams including merchandise,
and the attraction of many popular craft and food vendors and new youthful sponsorship
partners for the Daytona International Speedway.

1: Challenges & Solutions
Organizational Challenges
NASCAR is a dying sport - both in physical attendance and TV ratings. Daytona International
Speedway as well as most other racetrack facilities owned by International Speedway
Corporation have had to remove thousands of seats so that bleachers do not appear empty.
Although the Daytona 500 sold out this past year, it wasn’t without the facility having to remove
a whopping 50,000 seats (approximately ⅓ of the capacity) to do so (King, 2018). Ten years ago,
in 1998, the race sold approximately 170,000 tickets. This year, it was estimated just over 60,000
tickets were sold (Kelly, 2018). On top of this, TV ratings dropped by 18%, and viewership by 20%
from 2017 to 2018 (Caldwell, 2018). This means more and more sponsors pulling out, losing the
corporation millions of dollars in funding. Daytona International Speedway has an opportunity to
halt this decline in revenue and attendance by capitalizing on the thriving music festival industry,
drawing in new, younger audiences, and creating a new steady stream of revenue for years to
come.
ProposedSolution
In order to bring additional revenue into Daytona International Speedway, we will host a
weekend-long, mixed-genre music festivalthat willattract largeamounts of diverse, younger fans
on an annual basis. The event will have several key sponsorship activations that will feature
different fun and engaging activities and amenities for attendees, and will also gain funding
assistance from some of the already existing major partnerships that the corporation holds. The
inaugural event will be held on the weekend of March 13 - 15, 2020. This music festival will not
only solidify Daytona International as a great venue for other music festivals, but will also open
the doors to more opportunities of other companies looking for a place to host other alternative
entertainment events. Jeff Cuellar, the Vice President of AC Entertainment which produces the
Bonnaroo Music & Arts Festival summed up the endless of opportunities in the music festival
industry in this statement: “Music Festivals are undoubtedly the go-to experience for younger
audiences, but we are now seeing an increase in all demographics, which is opening the door to
attract an even wider variety of sponsors and partners willing to pour money into these events
to be a part of creating these awesome experiences. Experiences are trumping all entertainment
right now, and music festivals are trumping most other experiences.”

2: Environmental Scanning
Internal Analysis
Company Overview
Daytona International Speedway is owned by the International Speedway Corporation (“ISC”)
which was founded in 1953 and has long since been the leading promoter of motorsports
entertainment in the United States. They own and operate thirteen of the nation’s premier
motorsports facilities, as well as Motor Racing Network, an independent sport radio network,
and Americrown Service Corporation, a catering, food and beverage concession provider. Ninety
percent of the corporation’s revenue comes from NASCAR which is why it has long since been
the faceof the company, and alsothe arm where it has concentrated the majority of its resources
and efforts (ISC, 2018).
Financial Standing
This segment is concentrated on the financial health of The International Speedway Corporation.
As of September 28th, of 2018, the stock price for a share of ISCA stock was $43.75. Below is a
chart detailing the stock prices from 2015 to present. The stock prices have consistently risen for
the past three years (Nasdaq, 2018).

The total revenue for 2017 was $671,433. Looking at the revenue from 2015 through 2017 one
can see a rising trend that is expected to continue (Nasdaq, 2018).
The total assets of the International Speedway Corporation in 2017 was $2,208,192. Looking at
the total assets from 2015 through 2017 one can see a rise in total assets (Nasdaq, 2018).

The total liabilities of the International Speedway Corporation in 2017 was $2,208,192. Looking
at the total assets from 2015 through 2017 one can see a rise in total assets (Nasdaq, 2018).
According to the statistics given by Nasdaq.com, the comparison of the total assets $2,208,192
and the total liabilities $2,208,192 shows that the company is consistently breaking even. As
indicated by the statistics, International Speedway Corporation’s financial health is good.
However, the company is not making a profit. The music festival that we are presenting may be
a way in which to leverage the company by including a demographic that is not commonly
represented in the NASCAR community. This would be a way to muster awareness of
professional racing and ultimately boosting ticket sales (Nasdaq, 2018).
Organizational Strengths
International Speedway Corporation has been so successful in their field due to a number of
strengthening factors within the organization. Because they have become the premier
corporation for motorsports entertainment, they have developed a wide network of official
partnerships with sponsors. Among many of the major automobile manufacturers such as Ford
and Toyota, they also have official partnerships with food and lifestyle brands such as Coca Cola,
Kroger, and Rolex (ISC, 2018). They also have an enormous amount of long-term relationships
with vendors, with a B2B network of many of the top Fortune 500 companies, among some
20,000 local and regional businesses. Within this network is a great number of technology firms
that they have integrated into its facilities to streamline operations and distribution (Fernfort,
2018).

Organizational Weaknesses
Although ISC has become such a dominant force in the world of motorsports entertainment, it
has had limited success branching into other markets. Most of the other non-motorsports
related events they have hosted have still been targeted towards the same or a very similar
demographic that is pointed at for motorsports events. The Country 500, is a country music
festivalheld at the venue, but being that country music and motorsports kind of go hand in hand,
it is still seen as in the same realm or culture as the corporation’s usual brand (ISC, 2018). The
other major weakness is that the corporation is falling behind in research and development as
well as the innovation of new technologies. They are spending the same amount of money if not
more than other leading players, but are failing to integrate processes across the board (Fernfort,
2018).
Customers
The festival will target a group of individuals who are between 18 – 28 years of age and mostly
reside in Central and South Florida. These individuals are currently in college or have graduated
in the past 2-5 years. They like to spend time during the week hanging out with friends in
restaurants, watching Netflix or Hulu, and stream music using channels such as Spotify, Apple
Music, and YouTube. On weekends, they tend to go out to live events and explore the city for
independently ran local activities. This multicultural group enjoys a variety of music genres. They
tend to follow Hip-Hop, R&B, Top 40 Pop, and Spanish Contemporary.
As the Nielsen Music report states, “32 million people attend at least one music festival in the
U.S. per year, and nearly half of those people are millennials” (Nielsen Music Report, 2018). This
market share to attack is approachable and manageable due to the fact this generation is
recognized for the necessity of sharing and feeling connected with others (Nielsen Music Report,
2018). ‘The necessity of sharing' brings along values like pictures in social media platforms
(Instagram, Facebook, Twitter, and Snapchat), as well as hashtags and mentions that will spread
through the word of mouth in the community. This will make the festival’s fan base the perfect
promoter to create the buzz that the event needs. Social media is one of the biggest tools to
execute this marketing strategy. Eventbrite mentions, “61% admit to attending a live event so
they have something to share on social media (compared to only 34% of millennials without
children)” (Eventbrite, 2018). Also, one of the biggest trends for this audience is to assist music
festivals in promoting some of their partners and sponsors. The Nielsen Music Report states that
“80% of music festival attendees said they were more likely to recommend a brand on social
media after interacting with it at a festival” (Nielsen Music Report, 2018).
The music festival will feature different activities besides the artists invited to perform that will
also encourage the consumer to share on social media. The festival will also feature different
packages for them to explore different levels of VIP and Platinum credentials, creating layers of
exclusivity in the same event. The packages will entice the consumer by offering a different
experience which is not included in general admission. This difference of experience creates a
whole new value proposition, making it again, ‘share-worthy’ on social media.

Collaborators
Current Collaborators:
Companies that add value and would be great partners for this event are: Coca-Cola, Dannon,
Drive Sober, Florida Hospital, Gatorade, Geico, Monster Energy, Tito’s Vodka, Toyota, and
Unilever.
Coca-Cola
Coca-Cola’s wide range of household branded beverages make them an ideal sponsor for amusic
festival. Coca-Cola’s presence would resonate with music festival clientele, and being easily
recognizable. With the company’s strong presence and ability to be an anchor sponsor they
would be ideal, with more reason that they are already a venue sponsor. Partnering with the
music festivalatDaytona international speedway adds to their roster of events they gainleverage
at.
Tito’s Vodka
“Much of Tito’s success lies with a strong millennial following, and the brand supports its craft
messaging through festival sponsorships” (2016, Market Watch). Everything from price point to
company messaging make Tito’s an ideal collaborator of a music festival event, claiming “we are
a philanthropic company that does events and just sells vodka on the side (n.d. Tito’s). Tito’s
desire to be part of events, and being a branded company make them an ideal collaborator.
Monster Energy
Monster Energy is the type of energy drink brand that is known to go all out at any event they
are involved in. Typically handing out monster cans off the back of a monster pickup truck. Being
the plan is to have a hyped up music festival crowd they play very well into this type of event. As
a collaborator and sponsor that goes beyond simple presence and does more of helping hype the
crowd they would be an ideal addition to this event.
External Analysis
Competitors
According to the Power of Live Global Fan Study conducted by Live Nation 71% of people agree,
“The moments that give me the most in life are live experiences”. This fact can easily be
supported by the fact that most of these live events completely sell out their early bird tickets
within days and at times hours of their release. For the most part, live event festivals in the state
of Florida are occurring during March and April because weather conditions seem to be best
during this time. As for the rest of the country, live events are constantly taking place in various
states. Besides the live musical performances, it is common and popular to see clothing vendors
within these festivals as well as multiple arts and crafts pop up tents. The food truck community
is also a big integration of these music festivals as well as other food vendors.

Direct Competitors
Coachella (2 weekend, 6 day event)
Festival Attendance: 125K (2017)
Lineup Highlights: The Weeknd, SZA, the War on Drugs, and Alison Wonderland, Beyonce, Tyler
the Creator, Post Malone, Fleet Foxes, Eminem, Portugal the Man, Cardi B, French Montana,
and Migos.
Weekend promo package options:
Travel packages ticket and hotel included $4K – $9K
Shuttle passes: $75
VIP festival pass: $999
Camping Options:
Car Camping: $125
Preferred Car Camping: $325
Tent camping $125
Additional Indirect and Direct Competitors:
Indirect Competitor: Ultra Music Festival (Ultra is mainly EDM, not a multi-genre festival)
Lineup Highlights: Hardwell, Axel n Ingrosso, Armin Van Buuren, Steve Aoki, The Chain Smokers,
Marshmello, Afrojack, Tiesto, David Guetta, Kaskade, Afrojack, and Alan Walker.
Direct Competitor: SunFest (multi-genre festival)
Lineup Highlights: 311, Billy Idol, Cake, Girl Talk, Ice Cube, Incubus, Pitball, Nick Jonas, Zedd,
Living Colour, PartyNextDoor, Sir Sly, SOJA, Sublime with Rome.
Business Climate
Political & Regulatory
Issues that have arisen related to music or any other kind of festivals are all hugely around public
safety and drug / substance abuse. With large events becoming targets for mass attacks, event
creators are now having to place a big emphasis on public safety. Poor planning has also led to
neglecting weather related issues (Macneil, 2017). Drug and substance abuse has led to the
suggestionof on-site drug testing, for saferconsumption. Some event promoters have even been
indicted for charges of fraud.
What has resulted from various issues revolving around the live events / music festival industry
are possible new acts and regulations, this comes based on a large wealth of knowledge based
on experience. The drug and substance abuse issue has led to the RAVE Act. “A bill paving the
way for the prosecution of concert promoters for the actions of their patrons” (Klages, 2015).

Due to recent experiences, there is now a big emphasis on all aspects of planning events and
being well prepared for all aspects revolving the event externally and internally.
Economic
In 2017 the global live sports industry generated approximately $91 billion. Revenue from sports
merchandise in America alone brought in an estimated $14.2 billion (Statista,2017). The NASCAR
industry itself has seen slight declines in revenue in the past few years mainly due to drops of TV
viewership numbers. The 2018 Daytona 500 had a 5.1 overnight rating, which was the lowest
the race has ever pulled. This trend has been ongoing for about a decade, and coupled with a
strong pullback of investments from sponsors have put NASCAR in a tight spot (Smith, 2018).
The live music industry in USA alone is worth an estimated $17.2 billion (Digital Music News,
2017). Millennials (ages 18-34), continue to be the driving force behind growing event
attendance. Often referred to as the "experiences generation," 9 out of 10 (89%) Millennials
reported they had attended at least one live event within the past 12 months, up from 82% just
three years ago (Eventbrite, 2018).
The Daytona International Speedway is by far the biggest contributor to the local area economy.
The ripple effect of the speedway and all of its events bring in an estimated $1.6 billion each year
to the local economy. Other major contributors to revenue coming in are the two shorter
racetracks in the area and the annual bike week in March which attracts approximately 500,000
people to the area each year (Kelly, 2016).
Based on a decade-long ongoing trend, NASCAR is expected to continue to decline in both TV
viewership and sponsorship investment. Without the TV viewers to get their brand names seen
and in the minds of audiences, it is becoming an increasingly less worthwhile investment for
sponsors to give their money to NASCAR teams and the organization itself. While live events
continue to thrive, the continual growth of VR/AR technologies and live streaming will continue
to also threaten these attendance numbers and the economic well-being of both the NASCAR
and the sports industry as a whole.
Social & Cultural
A trend of interest is the usage of social media. The majority of live performances events are
taking advantage of social media platforms to drive attendance to the events. Facebook, Twitter,
Instagram, and Storify are excellent tools to generate conversation and sharing, and with this
engagement the customer becomes a promoting partner. With every click and post, the
consumer turns into a live promoter for the event spreading the word about the festival.
Likewise, the platforms allow the promoter to monetize their value in social media in terms of
awareness and ticket sales. Also, it is an opportunity for the company to collect data from
different sources for future events.
Having different packages can create a bigger buzz for the event. According to Socialtables, “the
CBRE is predicting a 2.4% increase in hotel RevPAR for the coming year” (Socialtables, 2018). It is
common to expect from the well-known festivals to offer different layers for VIP tickets, giving
more value to the consumer to spend extra money to have more privileges during the festival.

Likewise, offering different packages for camping can encourage the consumer to stay in the
venue during the weekend of the festival. Adding to this trend, the revenue streams are limitless
due to the fact that the venue becomes a playground to find sponsorships, vendors, and other
partners to make a music festival a whole new and different experience.
A key way to attract this generation to live events is by creating unique experiences, merging the
real with the virtual, and offering customization. Knowing this, the trends for music festivals are
based on social media strategies, food stands, and different experiences inside the venue where
the consumer is the main character. According to Inc.com, “[Event] planners should eliminate
the FOMO (fear of missing out) that will likely be present in their Millennial and Generation Z by
videoing sessions, recapping key insights from sessions and making them easily available online,
or creating hashtags where attendees can weave in and out of relevant digital conversations”
(Jenkins, 2018). Knowing this, the festival will create many different types of shareable content
for fans both attending physically and virtually to engage with.
Technological
The event industry keeps growing all around the world. According to professionals international
events contributed $115 billion to the United States gross domestic product (GDP). One of the
ways in which technology has helped generate this revenue is through mobile ticket sales.
“Ticketing is increasingly about establishing a higher touch point with your fans, it is about being
made availableto everyone, everywhere”, saidthe founder and CEOofKyazzonga, a globalonline
ticketing agency.
One of the biggest reasons why event professionals don’t integrate new technologies is due to
cost, but a study from Enterprise Event Marketing found that event technology can create a 20%
increase in event attendance while reducing related cost by up to 30%. Technologies such as
scannable QR codes, similar to the ones that are used for online ticket purchases, can help
professionals collect data from attendees that are actively scanning different objects at a live
event.
The concert and special event industry is currently utilizing a Radio Frequency Identification
Device (RFID) to track concert attendees while also limit their access to restricted points of entry
such as VIP sections. This RFID technology is handed out in the form of wristbands to event goers
and also provides a cashless payment feature. This sort of technological device, which is
manufactured by Intellitix, tracks customer movement, choices, and preferences and is changing
the way in which festivals are produced based on pricing, site planning, and booking (Medium,
2018).
Watching a livestream from the comfort of your home may not sound as fun as attending the
actual event but live-streaming has gained a rapid popularity as 41 million people watched
Coachella’s live streaming this year alone. This clearly indicates that to some individuals rather
remove the hassle of dealing with crowds, walking all day through the heat and spending what
at times seems as an overpriced ticket for a music concert (Medium, 2018).

Industry Trends
More than three in four millennials (78%) would choose to spend money on an experience or
event over buying something desirable. Creating a memorable immersive music festival
experience will attract much larger and younger audiences (Michelle, 2018).
EDM has undoubtedly taking the events world by storm the past few years with many of the
biggest festivals and promoters featuring electronic-heavy lineups. But in reality, major festivals
such as Coachella’s proportion of EDM acts has been on the decline the past couple years. In
2015, EDM made up for 42% of the lineup, while this past year it was down to 27%. Genres that
are on the rise across the board in the festival scene are Rap/Hip-Hop and Pop. Even festivals
such as Lollapalooza who built a brand on a particular genre (in their case, Alternative), have
begun to go astray from their roots to book Pop-heavy lineups to attract new, younger audiences
(Vivid Seats, 2018).
Music Festivals have become distinct individual brands to develop, with organizers concentrating
on marketing the overall experience rather than the music. Successful festival brands such as
Bonnaroo, Coachella, and Firefly have spent a considerable amount of time and resources into
developing a stand-out brand both through their logos and other intellectual property, as well as
to the actual design and architecture of the event sites (Tight Ship Design, 2018).
Business Opportunities
Music festivals have become the go-to avenue for brands to have an impact on and interact with
millennials. This younger demographic used to be looked at as a headache to market to, as they
do not interact with traditional advertisements the way older generations do. By integrating
themselves into live music experiences though, many big-name brands have found the perfect
formula to attract this audience to their products and services. Nielsen’s Music 360 Report states
that 62% of millennials say that they see a brand more favorably if they are giving away
something for free (whether it be a sample product or service) at a live music event (Nielsen,
2017). By leveraging this opportunity to engage with new audiences, the Daytona International
Speedway can appeal to new, youthful sponsors to partner with both in their music and non-
music related events.
Business Threats
The festival landscape has become immensely oversaturated. With so many options to choose
from all over the country, many fans do not travel as far to a festival they would have in the past,
because odds are there is another event with a very similar lineup within a closer proximity. The
other big threat although it is also an opportunity in many ways is undoubtedly the integration
of technology into events, such as live streaming or virtual reality. Although it may not be
strongly affecting ticket sales now, this trend of being able to get an increasingly real life live-

event experience from the comfort of your own home will begin to impact the way promoters
and event organizers market their events (Stereogum, 2018).
3: Strategy Formulation
Operations:
Organizational Impact
The Daytona Waves festival will be run and operated by an independent team whose sole
concentration is this event. The point person to oversee all development and production stages
will be a Festival Director, under which the operations will be divided into seven departments:
Production, Operations, Marketing, Sponsorship, Artist Relations, Sales, and Legal. The Festival
director will be our only full time year-round employee, hired on at a salary of $80,000.
These departments will be ran by experienced event professionals on a contract basis. Because
we are putting together this independently functioning team, the festival willhave minimal effect
on the Daytona International Speedway or ISC organization as a whole.
* See Appendix #1 for Flow Chart
Staffing Needs
We will have a manager to head each of our main festival departments. Under the managers will
be coordinators who are also hired on as contract workers closer to proximity of the event. For
operations of the event including box office, clean-up, info booth, and concessions, we will hire
on 100 temporary workers from a local staffing agency.
Sales,Marketing, & Distribution:
Marketing Mix
Price
- General Admission: $199
- VIP: $549
- Platinum 1: $1,800
- Tent camping: $100
- RV camping: $500
The price strategy the festival will use is based on high quality to break into the market while the
price is on the lower end of the average range for what is known in the industry. Our competitors
manage high prices due to the fact that they are brands already established in the market share.
Considering that Daytona Waves is a new festival in the industry, we are offering access to

popular and relatable entertainment for the audience in a considerably lower price. This will
leverage the fans to share the festival through word of mouth and help us accomplish our goals.
Product
Daytona Waves is amulticultural music festivalthat brings together young professionals between
18-28 years old located in Central and South Florida to create ashareable community experience.
It will bring together fans of Rock, R&B, Trap, Hip-hop, Pop, and EDM music to have a weekend
getaway with their friends, good music and different features to enjoy like craft and food
vendors, water games, and other activities.
Distribution
Knowing that the majority of the millennial demographic engages throughout online platforms,
the media outlets selected to distribute the product are social media platforms owned by the
sponsors, artists and ambassadors involved, lifestyle and music-related blogs and websites, and
local print media outlets like magazines, newspapers, and billboards.
Promotion
The primary marketing categories used in our strategy are advertising through traditional and
online outlets. The content creation for the online outlets is one of the top priorities to obtain a
high reach in the audience. According to Wibbitz “utilizing multimedia outlets, and managing an
online presence is imperative for any successfulcompany” (Wibbitz, 2018). The strategy willstart
by posting for the first time 6 months before the date of the festival. Within the first month from
the announcement date the posts will be releasing content that will generate curiosity in the
audience. For the next month, the content we will be releasing is phase 1 of the lineup, tickets
and camping information. At the 5-month mark, the posts will start showing phase 2 of the lineup
and features that the consumer can enjoy insidethe festival.In addition to the socialmedia posts,
the strategy will include paid ads on Facebook, Twitter, Snapchat, Instagram, and Google,
generating a buzz in the main platforms used by our target audience. The ads will be displayed
increasingly as the date of the festival approaches. For the first 3 months, the ads will display 2
times per day on Monday, Friday, and Sunday. For the next 3 months, it will increase to 4 times
per day on Monday, Wednesday, Friday, Saturday, Sunday in each platform. By the last 3 months
before the festival, the ads will be displayed on a daily basis posting on Facebook, Snapchat, and
Instagram 3 times per day and with Google and Twitter 1 time per day.
* See Appendix #2 for Social Media Timeline
Regarding the content creation for the traditional outlets, Waves music festival will have a photo
session with the different artists’ to create content to be released in ad spaces for magazines,
newspapers, and billboards. The same raw material will be used for the design of the flyers and
posters that are going to be part of the direct marketing strategy by the street marketing team.
Also included in the marketing strategy are guerrilla marketing and public relations. For the PR
side, Waves music festival will set different goals to reach traditional outlets for interviews in
radio stations, and nontraditional outlets like Pandora, Spotify, and Hulu to display ads. As far as

guerilla marketing, the promotion strategy will be covering buses with festival artwork. We will
also implement graffiti art with the logo of the artists, sponsors, and festival where our target
segmentation normally spend time.
Sales Strategy
Tickets will be available for purchase through the Daytona Speedway website, and the box
office. Having tickets available through the company will improve the traffic of the website and
giving our audience the opportunity to learn about other activities hosted at the venue. All of
this sales data will be funneled into one portal using the company’s ticket tracking software.
Legal:
Legal Factors
Regulations
There are many things to consider while organizing a concert event. This may take many weeks
of planning. The event requires the application of many permits and licenses to ensure that the
concert event’s legal procedures are followed. Some of these include entertainment tax, local
and State permits and license. These collective documents are referred to as NOC’s (no objection
certificates).Required permits may include a (specialevent permit) which is needed for any event
that may attract more than 50 people. Along with this permit, specialevent insurance is required.
A (Performance License) which covers any event featuring a child performer below the age of 18
years old. A (Premises License) in which the application must be registered 28 days prior to the
event dates. A (Loudspeaker License) is required for any private or public event utilizing a sound
system. This license may also have to adhere to specific hours. (Explara, 2016). In order for a
vendor to sell, display, or promote any product or service a (Host Itinerant Merchant License)
must be obtained 30 days prior to the event. All of these permits and license are obtained
through the Volusia County Courthouse,125 East Orange Avenue Daytona Beach, FL 32114. All
appropriate forms must be completed and emailed to Lynea Lewis at ldlewis@volusia.org.
Contracts
All entertainers performing at festivals must sign a Festival Entertainment Agreement which
details dates, times of performance, and specific details. Some of these details include price of
performance, merchandising, promotion, indemnify for copyright infringement, dressing rooms,
passes, stage access. security, and parking. All vendors are required to sign a vendor agreement
include date, time and location where the services must be provided. (U.S. Legal, n.d.)

Insurance
When planning a festival event, it is necessary to purchase event liability insurance. This must
be completed before booking the event. Event Insurance may refer to 2 different kinds of
policies. The first of these is:
Event Liability Insurance: This type of insurance is the most common and covers bodily injury,
property damage, and liquor liability if this occurs at the festival. This type of insurance is
required by specific venues as it protects against damage to the festival property. The price of
this insurance varies depending on the size of the event. The standard license costs between
$70.00 to $120.00 depending on how many people attend the festival. This comes with a
standard $1,000,000 of coverage per incident or $2,000,000 in aggregate. The cost of a 3-day
event with 2,000 or more attendees is $500.00 however, may cost more depending on the
festival’s coverage limit (Marsan, 2016).
Event Cancelation Insurance: This is coverage for the hosts of the festival if is determined that
it is necessary to reschedule or cancel the festival. The cost of this coverage can be easily added
on to the event Liability insurance. The cost is usually around 1 to 2% of your overall budget
(Marsan, 2016).
Rain Insurance: This insurance protects the insured in case it rains a certain amount. The
standard rain amount that may be considered sufficient to collect would be around a quarter
inch. The event does not have to be canceled to collect this insurance. The requirement would
be that the rain might lower attendance and this could result in lost concessions and ticket sales
(Marsan, 2016).
Intellectual Property
DAYTONA 800
Status: Registered and Renewed
Word Mark: DAYTONA 500
Status: Registered and Renewed
Statements
Goods and Services
Entertainment service namely, an annual automobile race, the entertainment being rendered
through the medium of radio and television.

4: Proposal Budget & Projections
Sales Projections (See Appendix 3)
Year 1: In year 1 we can project a total net sales of $3,255,000 and total expenses of $988,650,
giving us a net profit of $2,286,350. Our main revenue stream is our ticket sales, which we are
conservatively estimating 30,000 attendees with a total net sales of $3,000,000. These sales
numbers were projected based on the first year ticket sales of 36,000 of the Okeechobee Music
Festival in 2017 which is no longer existent (Sun Sentinel, 2017). Daytona Waves is filling the gap
in the Florida and Southeast festival market by providing a similar lineup yet unique experience
during the same time of year as the former Okeechobee Festival. One of the biggest potentials
for ancillary revenue with this event is merchandise. An Eventbrite and MusicWatch survey
found that out of 1,000 consumers that attended a concert or festival, 28% of them purchased a
piece of merchandise (Billboard, 2015). Because of this, we project 5,000 fans will purchase a
piece of merchandise giving us a net sales figure of $85,000. These figures are only for during
the event, and not have taken into account merchandise purchased through the website
throughout the year.
We will provide a range of sponsorship packages and conservatively project getting an average
contribution of $10,000 from 10 sponsors for our first year, totaling $100,000 net sales. This
figure comes from the fact that we will be utilizing some of the already very strong partnerships
the speedway holds, utilizing some of the sponsors of the Country 500 that will want to engage
with this younger audience, and also attract a few new youthful local sponsors (Medium, 2017).
For our vendors we will offer a permit and accommodation package priced at $1,000. Having a
wide variety of food and craft vendors brings about a greater level of value to the experience for
our customers. For the 100 vendor spots we have available we project a net of $70,000 after our
expenses.
Year 2: In year 2 we project $4.44 million in net sales, $1.275 million in total expenses, netting a
profit of $3.165 million. The increase and sales and profit come from an increase to 40,000 ticket
sales, which in turns means more merchandise sold, and an attraction of more eager partners
and sponsors.
Year 3: In year 3 we project $6.625 million in net sales, $1.586 million in total expenses, netting
a profit of $5.038 million. Again, due to our brand becoming more established and due to an
increased talent budget, we expect a strong increase in attendance meaning more revenue
coming in from each of our additional streams. This positive projection is based on the fact that
live events spending has been increasing steadily since 2012, and is expected to increase by %8
by 2021 (statista, 2017). Millennials, being the driving force of this industry placing such a high
value on experiences, will ensure our increase as we solidify our brand in the multi-genre festival
market.

Project Budget (See Appendix 4)
Marketing: $54,500
For Direct marketing, we have allocated $5,000 for Direct Marketing avenues including
billboards, flyers, and posters. Our Traditional Advertising costs will total $7,500 and is a
combination of advertisements in Daytona Newspapers, Radio, and music publications. Online
Advertising costs total $10,000 including social media ad campaigns, our website, and google
banner ads. Guerilla marketing costs estimated at $5,000 include Bus Ads, and some local street
art in the downtown Daytona area. Public relations include community relations activities, web
design, and web hosting, totaling $10,000. For our distribution, we have $5,000 allotted for the
contracting of an experienced street team firm. Other costs include content creation and graphic
design, totaling $12,000 (Wordstream, 2018).
Employees / Talent: $640,000
The only full time employee we will hire on is a Festival Director to the be the point man and
overseer of all other departments and for all projects related to the event. Based on industry
averages and experience, his or her salary will be approximately $80,000 (Indeed, 2018). Our
other employee related expenses come about from bringing on dedicated contract workers to
oversee the various departments. For our festival, operating staff such as security, clean-up, and
concessions, we will have 100 temporary staff workers which we have budgeted $20,000 based
on working approximately two 8-hour shifts each at$12/hour (Indeed, 2018). Our ‘talent’ budget
is for our music programming, which he has allotted $500,000 for year 1.
Equipment: $73,900
Our equipment budget includes computers and administration supplies, festival database
software, rental vehicles, heavy equipment, RFID, and production and operations expenses. For
our two stages, we will rent from Stagline we have allotted $15,000, and the remaining $15,000
of our production budget will be used towards the rental of our lighting, audio, and backline
equipment (Stageline, 2018). For our operations and site infrastructure including tents, utilities,
fencing, bathrooms, light towers, golf carts, and radios, we have allotted $20,000 (Festival and
Event Production, 2017). Our RFIDticketing systemfrom intellitixincluding wristbands, scanners,
and servers, will total $10,000 (Intellitix, 2018).
Professional Services: $12,250
Based on average entertainment lawyer and accountant rates, as well as permit requirements
for the event (Small Business, 2018).
Insurance / Utilities: $60,000
Based on projected attendance numbers and overall budget, the total of obtaining general
liability, cancellation, and rain insurance for this event will total approximately $50,000
(Insurance Journal, 2018). Utilities are calculated based on expected capacity of the venue and
total hours of operation (First Utility, 2016).

Year 2 Total Expenses: $1,274,650
Year 3 Total Expenses: $1,586,650
Increased expenses in year 2 and year 3 come from an increased Talent Budget, which in turn will
attract more customers which means higher insurance, payroll, and utilities cost.
5: Strategy Implementation
Timeline & Key Milestones:
Pre-Launch + Year 1
Nov - Dec 2018: Apply for permits, licenses
Jan – Mar 2019: Book Talent
Sep 2019: Official Announcement, Launch Website / Social Media
Oct 2019: Pre-Sale tickets on sale
Nov 2019: Phase 1 Lineup Announcement, Tier 1 Ticket pricing (Milestone: 5,000 tickets sold)
Nov 2019 – Jan 2020: Secure Production / Operations Vendors, Staffing Company Contracts
Dec 2019: Order Merchandise, Advance Artists
Jan 2020: Phase 2 Lineup Announcement, Tier 2 Ticket pricing (Milestone: 15,000 tickets sold)
Feb 2020: Site Build, Tier 3 (Last Minute) Ticket Pricing
Apr 2020: SHOW (Milestone: 30,000 tickets sold)
Year 2
Milestones: 40,000 tickets sold
50,000 followers
For Year 2, a key milestone we will reach is increasing attendance to 40,000 tickets sold. We
will accomplish this by reinvesting some of our profits from year 1 in an increased talent
budget, and also by acquiring new eager sponsors. During the offseason, we will have
representatives attend conferences such as SXSW to also look into recruit new partners with
companies emerging in technology and other areas of the events industry, as well push our
social media content to grow the festival fanbase to 50,000 followers.
Year 3
Milestone: 60,000 tickets sold
80,000 followers
For Year 3, a key milestone we will reach is increasing attendance to 60,000 tickets sold. We
will accomplish this by reinvesting some of our profits from ticket sales, merchandise in year 2
in an increased talent budget and also by acquiring new eager sponsors. We will also strive to
add more extracurricular activities. By this time the Waves will festival will be firmly
established as a top notch brand in the festival marketplace, and our increased social media
market efforts are aimed at gaining 80,000 total followers.

6: Future Plans
Long-term Opportunity & Development Plans
In the upcoming 2 to 3 years we expect to expand the number of attendees from our first year
of 30K by an increment of to 10K attendees in our second year and to 60K attendees in our third
year.
We envision this music festival to become a recurring annual event that will become one of the
main headliners of the Daytona international speedway for years to come. This event has the
capacity to compete with similar music festivals such as Ultra and Coachella music fest which
have been around year after year since 1999. The fact that these festivals continue to grow and
have been around for such a long time proves to us that the demand in live entertainment
continues to grow.
In a recent Eventbrite survey of more than 5,000 festival-goers, 80% of millennials had attended
three or more food, wine, or beer events in the past year. Millennials drink more alcohol than
any other generation before them. And more than half of them consider themselves “foodies.”
This information helps us predict a possible future trend of combining music festivals and food
and wine festivals together in order to bring more of an entertaining and memorable experience
to attendees. Once we successfully establish ourselves as a cross genre annual music festival we
will look further into partnering with other festivals to give ourselves more of a competitive edge
and to bring more stages and acts with the help of additional sponsorships.

7: Appendices and References
References
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speedway-corporation.php
Jenkins, R. (2018, May 14). 5 Ways to Engage Millennials and Generation Z at Conferences.
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generation-z-at-conferences.html

King, A. (2018, February 18). The Daytona 500 Is Sold Out, But Only After The Track Removed
Almost 50,000 Seats. Retrieved from https://jalopnik.com/the-daytona-500-is-sold-out-
but-only-after-the-track-r-1823115572
Manafy, M. (2018, January 12). Want Reach Millennial Customers? Try These Digital Marketing
Secrets From Top Media Brands. Retrieved from https://www.inc.com/michelle-
manafy/want-reach-millennial-customers-try-these-digital-marketing-secrets-from-top-
media-brands.html
Manafy, M. (2018, January 12). Want Reach Millennial Customers? Try These Digital Marketing
Secrets From Top Media Brands. Retrieved from https://www.inc.com/michelle-
manafy/want-reach-millennial-customers-try-these-digital-marketing-secrets-from-top-
media-brands.html
McIntyre, H. (2017, October 20). Brands, If You Want To Impact Millennials At Music Festivals,
Do This One Thing. Retrieved from
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impact-millennials-at-music-festivals-do-this-one-thing/#37d463f4731b
Meet the Millennial Multicultural Music Listener. (n.d.). Retrieved from
https://www.nielsen.com/us/en/insights/news/2014/meet-the-millennial-multicultural-
music-listener.html
Millennials + Music Festivals = A Match Made in Marketing Heaven. (2017, March 27).
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Millennials' And Teens' Top 20 News Sources. (n.d.). Retrieved from
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20-news-sources.html

Millennials' And Teens' Top 20 News Sources. (n.d.). Retrieved from
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20-news-sources.html
New Data Reveals What Draws Millenials To Events - Eventbrite. (2018, August 27). Retrieved
from https://www.eventbrite.com/blog/millennials-event-trends-ds00/
Official Coachella Weekend 1 Packages. (n.d.). Retrieved from
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http://www.daytonainternationalspeedway.com/Vanity-Pages/Official-Partners.aspx
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schedule-complete-with-blurred-out-surprises/
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schedule-complete-with-blurred-out-surprises/
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US Legal, Inc. (n.d.). Vendor Agreement Law and Legal Definition | USLegal, Inc. Retrieved from
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winning-the-battle-for-millennials-004707

Appendices
Appendix 1: Organizational Chart

Appendix 2: Social Media Timeline

Appendix 3: Sales Projections
Sales Projections
* Refer to Section 4 of the strategic proposal for projection explanations and assumptions
Year 1 Year 2 Year 3
Unit Volume 30,000 40,000 60,000
Unit Price $200.00 $200.00 $200.00
Unit Cost $100.00 $100.00 $100.00
Total Net Sales 1 $3,000,000 $4,000,000 $6,000,000
Unit Volume 5,000 10,000 15,000
Unit Price $25.00 $25.00 $25.00
Unit Cost $8.00 $8.00 $8.00
Total Net Sales 2 $85,000 $170,000 $255,000
Unit Volume 10 20 30
Unit Price $10,000.00 $10,000.00 $10,000.00
Unit Cost $0.00 $0.00 $0.00
Total Net Sales 3 $100,000 $200,000 $300,000
Unit Volume 100 100 100
Unit Price $1,000.00 $1,000.00 $1,000.00
Unit Cost $300.00 $300.00 $300.00
Total Net Sales 4 $70,000 $70,000 $70,000
$3,255,000 $4,440,000 $6,625,000Total Sales:
Tickets
Daytona Speedway Interntational
Merchandise
Vendors
Sponsors

Appendix 4: Project Budget
Expense Assumptions
Annual Expense Annual Expense Annual Expense
Billboards, Flyers, Posters $5,000 $5,000 $5,000
Daytona Newspapers, Radio, Music
Publications
$7,500 $7,500 $7,500
Social Media: Facebook, Instagram,
Twitter Ads, Website, Banner Ads
$10,000 $10,000 $10,000
Buses, Street Art $5,000 $5,000 $5,000
Community Relations, Web Design,
Web Hosting
$10,000 $10,000 $10,000
Street Team $5,000 $5,000 $5,000
Content Creation, Web Hosting and
Graphic Design
$12,000 $12,000 $12,000
$54,500 $54,500 $54,500
Total Wages Year 1 Total Wages Year 2 Total Wages Year 3
Only year round employee. In charge of
overseeing the entire operation
$80,000 $80,000 $80,000
Production, Operations, Marketing,
Sponsorship, Artist Relations, Sales
$20,000 $20,000 $20,000
200 temporary staff workers $40,000 $40,000 $40,000
Talent Budget $500,000 $750,000 $1,000,000
$640,000 $890,000 $1,140,000
Annual Mortgage /
Rent
Annual Mortgage /
Rent
Annual Mortgage /
Rent
Indicate if Buy or Rent
$0 $0 $0
Public Relations
New Location
New Location
TOTAL
Marketing
Employees / Talent
Direct Marketing
Temporary Staff
Talent
TOTAL
Other
TOTAL
Festival Director
Guerrilla Marketing
Distribution
Traditional
Advertising
Online Advertising
Department Heads

Expense Assumptions
Macbook Air x10 $6,000 $0 $0
Rental office furniture $1,000 $1,000 $1,000
Marcato Festival Management $2,000 $2,000 $2,000
Vehicle rentals x8 $2,400 $2,400 $2,400
Fork, Lul, Lift $2,500 $2,500 $2,500
Stages, Lights, Audio, Backline $30,000 $30,000 $30,000
Utilities, Tents, Fencing, Barricade, Porto's,
Light Towers, Golf Carts, Radios
$20,000 $20,000 $20,000
RFID wristbands and scanners $10,000 $10,000 $10,000
$73,900 $67,900 $67,900
50 hours @ $100/hr $5,000 $5,000 $5,000
175 hours @ $30/hr $5,250 $5,250 $5,250
Federal, State, Local Licenses $2,000 $2,000 $2,000
$12,250 $12,250 $12,250
General Liability, Rain, Cancellation $50,000 $60,000 $70,000
On Site Utilities $10,000 $12,000 $14,000
$60,000 $72,000 $84,000
Heavy Equipment
Equipment
TOTAL
Insurance / Utilities
Computers
Office Furniture
Software
TOTAL
Vehicles
Site Ops
RFID
Lawyer
Accountant
TOTAL
Utilities (Electric, Water,
Telephone, Internet)
Insurance
Licensing
Requirements
Show Production
Professional Services

Expense Assumptions
Marketing
$54,500
Employees $640,000
Payroll taxes $128,000
Professional Services
$12,250 Equipment
$73,900
Facilities
Expense
$60,000
Year 1 Expenses
$968,650
$1,274,650
$1,586,650
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Year 1 Total Year 2 Total Year 3 Total
3 Year Expense Projections

Expense Assumptions
Marketing $54,500
Employees $890,000
Professional
Services $12,250
Equipment $67,900 Facilities Expense
$72,000
Year 2 Expenses
Marketing $54,500
Employees $1,140,000
Professional
Services $12,250
Equipment $67,900
Facilities Expense
$84,000
Year 3 Expenses

Income Statement Summary
Tickets $3,000,000 $4,000,000 $6,000,000
Merchandise $85,000 $170,000 $255,000
Sponsors $100,000 $200,000 $300,000
Vendors $70,000 $70,000 $70,000
$3,255,000 $4,440,000 $6,625,000
Marketing $54,500 $54,500 $54,500
Employees $640,000 $890,000 $1,140,000
Payroll taxes $128,000 $178,000 $228,000
Mortgage/Rent $0 $0 $0
Professional Services $12,250 $12,250 $12,250
Equipment $73,900 $67,900 $67,900
Facilities Expense $60,000 $72,000 $84,000
$968,650 $1,274,650 $1,586,650
$2,286,350 $3,165,350 $5,038,350
70% 71% 76%
TOTAL EXPENSES
NET PROFIT / LOSS
SALES
NET PROFIT / LOSS %
EXPENSES
TOTAL NET SALES

Income Statement Summary
$3,255,000
$4,440,000
$6,625,000
$968,650
$1,274,650
$1,586,650
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
Revenue vs. Expenses
TOTAL NET SALES TOTAL EXPENSES
$2,286,350
$3,165,350
$5,038,350
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Annual Profits

Daytona Waves Music Festival Proposal

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