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Strategic Business Proposal 1 of 53
Strategic Business Proposal
for
For: Amway Center
amwaycenter.com
Prepared On: 10/03/2019
Prepared By: Sara Sano Di Fabio
Marcela Celma
Naiya Armour
Johnny Crespo
Instructor Name: Annie Quaile
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Contents
Introduction #3
Executive Summary #3
1. Organizational Challenges & Proposed Solution #4
Organizational Challenges #5
Proposed Solution #6
2. Environmental Scanning #7
Internal Analysis #7
External Analysis #15
3. Strategy Formulation #19
Operations #19
Sales, Marketing, & Distribution #22
Legal #32
4. Proposal Budget & Projections #33
Sales Projections #33
Project Budget #33
5. Strategy Implementation #38
Timeline and Key Milestones #38
6. Future Plans #41
Long-Term Opportunity and Development Plans #42
7. Appendices and References #43
References #43
Appendices #51
Appendix 1: Competitive Analysis #51
Appendix 2: Example Flyer #52
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Introduction
Executive Summary
Loyalty programs have been implemented in many venues, and businesses to attract customers and
create a connection with the audience,studies say that loyalty programs increase revenue from 5 to 10
percent. The Amway Center is one of the largest venuesin the City of Orlando able to fit 20,000 people
per event,offeringgreatamenitieswithanincredible location.We are the home of the OrlandoCityand
OrlandoSolarBearsandwe are onourwaytobecomingoneof thebestandmostknownvenuesinFlorida.
The purpose of this proposal is to create a points and tier-based loyalty program called Amway Center
Premiumtokeeprevenue in,addextrarevenue,engage the audience andkeepupwithtrendsand new
technologies.We wanttotarget familiesthatenjoyentertainmentandqualitytime togetherandmarket
themtojointhe loyaltyprogram,attendmore events,obtainbenefitswitheverypurchaseandeventually
make them assist in more events and therefore spend more money. To make this possible, we have
developed a marketing strategy based on Direct Marketing, Online Advertisement, and Traditional
Advertisement, which will have an effective impact on Amway Center’s awareness.
_________ ______________ ______________ _________
Sara Sano Di Fabio Marcela Celma Naiya Armour Johnny Crespo
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1: Challenges & Solutions
Organizational Challenges
Our mission is to attract customers to the venue and create preference among other venues
due to the perks that the Amway Center offers. The Amway Center has a competitive advantage
among other venues in Orlando; however nearby cities such as Tampa, Miami, Fort Lauderdale,
and many others are strong competitors of the Amway Center and our mission with this proposal
is to attract enough customers to choose the Amway Center over any surrounding arenas hosting
the same type of events. We want to make the customer feel as if they’re very special to us and
creating their most memorable experiences. They also want engagement, and 98% of customers in
a survey stated that they are more inclined to make another purchase at an event after just attending
one of their events (Roberge, 2017). Our biggest challenge is to create something unique that suits
the Amway Center and embraces all of the needs of our target audience while competing with
other arenas across Florida. According to Vince Ircandia, it is important to deliver a contextualized
message to increase emotional connections among fans, it is important to customize each
experience and make them feel welcome and special with each event (Ircandia, 2019). We also
want to keep in mind that the customers want to have a valued memorable experience. Providing
incentives to the events that they’re attending can elevate their experiences on a further positive
note. Another potential challenge for the venue is securing sponsors for our events. Other loyalty
programs exist in our venue already like Orlando Magic’s team app and Solar Bears program.
Restaurants may already be tied to these loyalty programs and implementing a new loyalty
program in the business model could add confusion to customers. Sponsors can also provide
expense relief on costs and necessities for other items and/or food/drink (Eventbrite, 2019).
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Another big challenge for our organization, especially in regard to live events, is how we are
getting tickets to the customers attending our events. Former Ticketmaster CEO mentions that live
venue businesses are losing on about $15 billion a year due to having tickets go on sale, only to be
snatched by scalpers and supplied to a shady second economy for ticket sales (Johnson, 2018).
Even if we want to have our customers benefit even just for purchasing a ticket, we want to make
sure that they’re getting it from a trusted seller, or from ticketmaster directly. The final challenge
is applying consumer feedback. As part of wanting our attendees to feel special and that they’re
getting a valuable experience, we want to make sure that their voices are heard. Live venue
operations sometimes fail to do this, and the Amway Center could find themselves overlooking
this if they’re not careful. It’s easier than ever to connect with consumers, yet it is harder than ever
to connect with consumers. Brands should seize the opportunity to further connect to their target
market by further applying their emotions and feedback (Richards, 2018).
Proposed Solution
Our proposed solution is a loyalty program, called Amway Center Prime, that works on a point and
tier-based system. Our client requested a loyalty program for the venue, and we decided to fulfill their
request while keeping the steady flow of revenue streams,and loyal customers to the brand as well. The
reason that this would be beneficial for Amway Center is that it increases revenue, ability to receive
relevant customer data and better communication between the company and customers. It has been
shown that loyalty programs in general have increased revenue by 5-10% (Ogino. S, 2019).
Statistics also support the idea of implementation of loyalty programs into current infrastructures.
A loyalty increases of just 7% can boost profits per customer by 85% (Brand Keys, 2019).
According to Katherine Black, a principal in KPMG with over 20 years of experience said that
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“loyalty programs are proven methods for growing and sustaining market share”, which means
that if a customer already likes the brand they are very likely to come back and purchase their
products or services more often (Black, 2017). There has been a number of different companies
that have benefitted from having a loyalty program. Some example companies include DSW and
Amazon. DSW offers a point system that awards the customer for the amount spent on store
merchandise. With this, they built a large following of 20 million users who shop exclusively
through their loyalty program (Prilliman, 2014). Amazon has a loyalty program called Amazon
Prime that is not based off of a point system but is based on rewarding subscribers with endless
benefits across services they frequently use like Spotify, Xbox, and Playstation (Prilliman, 2014).
Our program will have a separate way of gaining more revenue since one could pay for points
rather than earning points by going to games and other activities. This provides value to that of
someone attending events by offering an additional incentive for those who may not find
themselves at numerous events per year but would still like to have the rewards given from higher
tiers. Each tier will also provide access to specialized events specifically only for the people in that
tier. These events will be at the Amway Center with partnered sponsors so that it is a bonus for all
companies involved considering these events can be used for marketing and campaigns as well.
For example, the Amway can incorporate the logo from the loyalty program on Instagram, and
rewards can be showcased in the captions of the images with the tagline “Sign up now!”.
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2: Environmental Scanning
Internal Analysis
Company Overview
The Amway Center is said to be one of the most iconic destinations in central Florida. This
modern age facility has a capacity of 20,000 people and was “uniquely designed to stage every
event with the highest possible production” (Amway Center, 2019). This includes being the home
to the Orlando Magic and the Orlando Solar Bears as well as putting on a number of different
concerts as well as hosting different types of sports in family events in the arena. Despite the name
of the center being Amway, it is not owned by the company Amway, but rather by the Orlando
City Council (i4Business, n.d.).
Financial Standings
Forbes listed the Orlando Magic’s value to the Amway Center at $150 million, making this
the most valuable asset to the venue. The report also mentioned that the NBA team has a fairly
large portion of the market for entertainment in Orlando. That number was estimated at a
staggering $314 million (Forbes, 2019) (see appendix 1 for the graph). According to the report,
the basketball team is also having a small percentage increase annually for value to the team. The
value percentages are based on how a corporation’s assets are performing in terms of revenue and
market interaction. It is estimated that the Orlando Magic had an increase in value change by 8%
from last year. The annual value of the team overall was increased by 12% at the same time
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(Forbes, 2019). With the recent success of the Orlando Magic, the company can expect to see
steady growth in value for sports events to come.
Moreover, the entertainment market is expected to grow to 2.6 trillion U.S. dollars in 2023.
According to Statista, “it was worth an estimated 678 billion U.S. dollars in 2018 and is expected
to grow to over 720 billion U.S. dollars by 2020” (Statista, 2019). Statista also stated, “Projections
indicate that the sector which will see the most compound annual growth rate will be internet
video, which will grow by 11.6 percent during the stated time. In comparison, newspaper
publishing is expected to shrink on an annual basis by 2.7 percent” (Statista, 2019).
Organizational Strengths
One of the biggest strengths that Amway Center has is its location. It is located in the
downtown area of Orlando which is 20 minutes away from the MCO airport in case that some of
our customers (out of Orlando) decide to fly to attend the Amway’s shows. This provides a more
accessible opportunity for our target market to attend and be a part of what the Amway Center has
to offer them. Besides having the airport near, there are the most touristic places such as the Church
Street, Wall Street Plaza, Downtown Clubs, and easy access to the main highways of the cities
(i.e. i-4 and SR408). Since with the Amway Center Premium program we want to encourage our
members to keep attending the shows, it is crucial that our venue is in a strategic place where they
can easily get to.
The Amway Center was designed to provide a space for several types of events; from elite
concert series, sports events including NBA All-Star games, hockey championships, Olympic Ice
and track trials, ultimate fighting and professional wrestling, indoor soccer, extreme sports
including motorsports exhibitions, professional bull riding and rodeo, among many other family
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events (Amway Center, 2019). Everything inside the Amway Center is brand new, it has bigger
seats and better sightlines, its design is technologically one of the most advanced ever built. Every
level of the building includes amenities, even a kid’s fun zone. According to Amway Center’s
website, “it’s unlike any arena ever built” (Amway Center, 2019). It’s a world-class experience,
unlike anything Central Florida has ever seen (Amway Center, 2019). This is considered one big
strength of the Amway Center since it’s suitable for all audiences; meaning audiences for several
types of events and audiences of all ages and tastes that can fit the 18,500 seats that it provides.
Amway Center Premium is a program to encourage customers to attend the events and purchase
everything that Amway offers at the venue, however, if there was not enough capacity for
attendees, it would limit us from making a marketing strategy as big as this one.
Another huge strength that the Amway Center has is its versatility when it comes to their
different types of customers. First of all, they provide an exclusive parking lot for their attendees
which is guided by professional staff (Amway Center, 2019). When customers buy their ticket,
they have the option to reserve a spot on the Amway’s parking lot. Moreover, they are also able to
provide a VIP area which costs around $2,000 depending on the show (Amway Center, 2019).
This is another opportunity for customers to increase their live events experience by having high-
level attention from Amway Center’s staff that dedicates their time and effort to build the best
environment possible for the attendees. This high-level attention means that when a customer
wants to use any of Amway’s features such as parking, VIP area, etc., these clients can receive a
good treatment from staff, diversity of food, security for the parking lot, a worthy view from VIP
area, and among others. This relates to the Amway Center Premium since our goal is to provide
the best experience to customers, as well as giving them many options to choose when purchasing
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and selecting the desired ticket, section, food, etc. By saying this, through our Loyalty Program,
we supply discounts and promotions that then, they can apply to these features.
Organizational Weaknesses
Amway Center, which has 875,000 square feet of space and 15,500 seats availability, is
known for having an immense staff body per show (Amway, 2019). However, this requires a lot
of organization and training since the staff is constantly changing and new people join the team
even if it is a day contractual shift. Based on attendees’ reviews, the staff is not well enough
oriented to handle and guide customers on a highly proficient level. Since one of the most relevant
aspects that we want to provide is efficient customer service, this is a weakness that needs to be
adjusted.
Furthermore, there is a concern about how long lines affect the attendees. Since this
influences Amway Center’s customer experience, as stated in our proposed solution, we are
presenting the Amway Center Premium service that includes a benefit in which these premium
customers can have a separate and exclusive line. The way it would be addressed is by providing
an early access that is not taking place at the main entrance (to avoid conflict between the premium
and non-premium customers), which will take place at one of the lateral entrances with security
bodies and event staff. This will not only be beneficial for the premium members to be more
comfortable but since this can be a solution to end the long lines, it will satisfy every attendee
increasing their experience level.
Lastly, understanding nowadays’ technological advancements is an essential element in the
business side of the entertainment industry. However, the Amway Center lacks a strong social
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media presence which negatively affects the relation between the venue and its customers. Amway
Center’s Instagram account has approximately a maximum of five (5) comments per post with no
followed answers, and although it is one of the most prestigious venues in the united states, it only
has 44.9k followers (Instagram, 2019). According to their official website, “Technologically,
Amway Center is one of the most advanced ever built, highlighted by the main scoreboard – the
largest of its kind in the NBA” (Amway Center, 2019). It has been recognized for its technology
awareness that it is important for them to get updated with it and provide full attention to customers
not only at the venue, but online as well which is the main point of Amway Center’s Prime service.
(Amway Center, 2019)
Customers
Amway Center’s target audience is full-time job males with an age between 25 and 34
years old. They have a middle-class income, and their main focus is on their families. This target
market is mostly located in the Central Florida area such as Orlando, Miami, and Tampa. They are
adapted to the technological advancements in which they spend approximately 15 hours a week
making fantasy sports teams for betting and also looking at box score reports. Their content
consumption methods are mostly through YouTube where they watch live stream sports games, as
well as Apple Music for listening to music at least four times a week specifically while they are
driving to their destination. Since they have a fast-paced life, they used to go to fast-food
restaurants such as Chick-Fil-A, McDonalds, or Steak & Shake. Their favorite clothing shops are
Aeropostale, Hollister, and American Eagle. The best way to advertise to this demographic is
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specifically through online marketing such as social media (Instagram and Facebook), Google ads,
and email marketing.
When it comes to their motivation to buy the Amway Center’s Prime Service, it is all about
their need to find effective low-cost opportunities that can provide a valuable experience for them
and their families. Since the Orlando Magic served as the developer of the Amway Center which
hosts major national events, concerts, and family shows, this is the perfect fit for them to find a
way to be involved and get the benefit for it (Amway Center, 2019). The usage rate for them would
be approximately once a month for the rewards and once every three months for the actual events.
The main distribution channels for them are through direct ticket sales in the Amway Center box
office, and through third party online sellers (i.e. Ticketmaster, Eventbrite, StubHub, etc.).
Collaborators
Amway Center’s collaborators range from community partners to large and supportive
corporations. The venue’s community partners in Orlando are Disney Parks, RP Funding, PepsiCo,
Harris, and Advent Health (Amway, 2019). The community partners are a great way for the
Amway Center to connect with their target market across all avenues in the city. The partnerships
even offer some exclusive bundles for those who are consumers of Amway’s community partners.
For example, if a resident of Orlando has a Walt Disney World Annual Pass, if they chose to renew
it for a year, they will receive a free jersey of a player from the Orlando Magic NBA team (NBA,
2019).
For main events in the venue, Ticketmaster is their prime distributor for tickets to their
sports games, concerts, and conferences. They have very close ties to many of the sports teams
based out of Orlando, most notably the Orlando Magic NBA team. The arena is also home to the
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Solar Bear hockey team and the Orlando Predators football team. These teams overall play a huge
role in the Amway Center’s business model by funneling the teams’ fanbase to the arena, since it
is the location where they planted their flag and call it their home. An agency that is tied closely
with the arena is the Orlando Venue foundation. This is the company that mainly oversees the
operations and directory across multiple large-scale venues in Orlando, FL. Although we see
powerful connections and partners, Amway Center is not much affiliated with merchandise
suppliers from outside corporations. They do have a home NBA Team shop for fans, but when a
concert is hosted in the venue, they will leave it up to the artists to completely supply the
merchandise for fans. This could be a concern of revenue loss since the only way to capitalize on
this opportunity is currently through food vendor purchases, as the venue only gets a small
percentage of the profit made from merchandise. Some events don’t incentivize the revenue to the
arena at all. It seems as if concerts and musicals are mainly controlled by outside parties and the
Amway Center should implement interactive activities from the upcoming loyalty program to
elevate the experience for fans, while also bringing in more revenue.
External Analysis
Competitors
Through research, we came across multiple direct competitors of the Amway Center.
Amway Center’s direct competitors, in this case, result in multiple large-scale arenas across the
State of Florida. The Amalie Arena and American Airlines Arena are some of the biggest
competitors. Starting with Amalie Arena, the venue is located in Tampa, FL. It is the closest
competitor out of the three listed earlier. This arena is known for hosting headlining concerts,
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festivals, and sports games (Amalie Arena, 2019). In terms of sports events, they are not known
for sports as much as the Amway Center, because they only host college basketball and hockey.
Therefore, they do miss out on the sports crowds when compared to our company. When we look
at American Airlines Arena, they can rival the Amway Center very closely. Not only do they host
concerts and conferences, but this is also the home of the NBA’s Miami Heat. They are also a
large-scale arena capable of seating 21,000 at full capacity (AAArena, 2019). With that being said,
they are a bit further away in the city of Miami, FL. The Amway Center should not be too
concerned over the competition here if they plan on staying connected to their primary fanbase in
Orlando. Some venues to be wary of in neighboring cities can include the Amalie Center in Tampa,
and the American Airlines arena in Miami. The Addition Arena is a close proximity venue located
in the University of Central Florida.
Business Climate
Political & Regulatory
The FCC is the one that handles interstate communication such as radio, television, wire,
satellite, and cable. They would handle situations regarding live events that are broadcasting such
as the main company that regulates live venues is OSHA (Occupational Safety and Health
Administrations). OSHA handles the overall safety of the venue as well as the workers and the
safety laws they adhere to such as capacity limits, noise disturbances near residential areas,
opening and closing requirements. Another association that is associated with live events is the
International Live Events Association who maintains a code of ethics and conduct with rules such
as “protect the public against fraud and unfair practices and promote all practices which bring
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respect and credit to the profession” (ILEA). While Amway as a company is not affiliated with
them, there is a possibility that some of their employees belong to this association considering a
majority of members fall under planners and coordinators.
The biggest issue that will have an impact on our solution is recent problems in data privacy
in apps. There have been recent breaches in privacy at companies such as Yahoo and Capital One.
The Florida Information Protection Act of 2014 protects consumer’s information which means
“any material, regardless of the physical form, on which personal information is recorded or
preserved by any means, including, but not limited to, written or spoken words, graphically
depicted, printed, or electromagnetically transmitted that are provided by an individual in this state
to a covered entity for the purpose of purchasing or leasing a product or obtaining a service.” The
way we can work around the recent issue of a data breach is by fortifying firewalls and maintaining
proper data protection protocol at all times.
Economic
The economic status of our industry is consistently growing. Coming into 2019, this year
we see rapid growth in the entertainment industry as a whole. According to Research Firm PwC,
the report estimates that revenue from media and entertainment will reach a total of $2.2 Trillion
by 2021 (SingularDTV, 2018). In this case, we are focusing on the live events industry. The
industry’s success has been the result of rising and continued demand for live entertainment. In
the past 5 years, the live events industry was projected to grow at an annual rate of 4.6% every
year, increasing the revenue margin by $33.3 billion each year. 2019 alone had a 2.3% increase in
the annual rate (IBISworld, 2019). This furthermore supports the idea of live events are becoming
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a major staple across the entertainment industry today, and it also shows the economic state of the
live events sector.
The economic status of our market saw a small increase in recent years. We are targeting
middle-income individuals in the United States. Since the Amway Center is in Florida, we will
look at the base income range for middle-class individuals in this state. According to Investopedia,
the average income bracket for middle-class families/individuals in Florida is $75,414.00
(Frankenfield, 2019). The economic status of our target market is expected to continue a slow
growth over the next two years at a minimum. Due to government affiliations with the economy,
there will most likely be smaller shifts in the income levels. However, middle-class families have
an uncertain future due to economic slumps and decline. The high price of housing, wage
stagnation, job insecurity, crushing childcare expenses, rising health care premiums and college
costs the size of a mortgage is pushing the middle down several rungs of the ladder (Singletary,
2018). Middle-class families do have a future that is heavily altered by the government, and any
little move to inflation or other economic protocols can push the bracket further down the ranks.
Social & Cultural
According to 3Cinteractive, over 64 percent of brands are building loyalty programs to
attract more dependable customers that would want to become recognized customers for every
purchase or interaction they make with the brand. Traditional loyalty programs are no longer
useful, and people expect exclusivity and personalization. Our target audience consists of 25 to
34-year old millennials seeking personalized and unique experiences since technology has
developed ways for companies to be able to personalize products and services for each individual
or generation, customers' expectations elevated and created a social change. (Crowd Twist, 2018).
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In the past few years, society has wanted to be more aware of taking care of the planet and has
come after massive companies that were not socially responsible. A recent study found that over
81 percent of our target market; millennials, expect of brands to not worry only about their profit
but to be socially responsible and are even willing to pay higher prices for companies that care
about the society and the planet. (Crowd Twist, 2018).
Technological
One of the biggest technological advancements in the entertainment industry, specifically
in music, is the incorporation of music digital platforms such as Pandora, Spotify, Tidal, etc. It has
affected our current music consumption methods. According to Kent State University, “Even paid
streaming services that offer access to wide catalogs of completely authorized music are much less
expensive than physical musical media ever was; a month’s subscription to Spotify Premium or
Apple Music is the equivalent of the price of a single CD in the late 1990s, for example. Affordable
and authorized streaming services have also helped reduce the amount of piracy across the music
industry by shifting the balance between risk and reward for would-be pirates” (Kent State
University, n.d.).
Another industry trend that has impacted the entertainment industry is the virtual reality
(VR) implementation that is meant to create simulated environments and provide an unforgettable
experience to those “loyal” customers. This has been an immense impact to specifically live shows
which according to Daily Trojan, live events are one of the biggest fields for virtual reality (Daily
Trojan, 2019). Many companies in the entertainment industry has come together to support and be
involved with a movement as huge as the virtual reality such as the partnership between NextVR
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and Live Nation that stream the Global Citizen Music Festival in virtual reality, as well as
broadcasting VR recordings of concerts and other music-related events (Daily Trojan, 2019).
Moreover, mobile integration in the entertainment industry has given a total switch not
only for musicians but also for social media influencers, record labels, media companies, etc.
Before this era, record labels were the ones who controlled the interaction between artists and fans,
but now it has changed (Social Media Week, 2015). According to Social Media Week, “Possibly
the biggest shift in music that has come through social media has been through an increased level
of interaction between musicians and their fans” (Social Media Week, 2015). Social media
platforms such as Instagram, are providing a video content broadcasting space that allows
professionals to share their material specifically to promote as a vial of marketing strategy
(Deloitte, 2019).
When it comes to the new industry and its changes in the loyalty programs, both local and
online stores are using what is called digital “points” per purchase which includes tiers of rewards
that customers can unlock as they spend more. This is a process where online systems can
recognize and collect their customers’ names, email, phone number, and payment information.
According to Shopify, “As many as 84% of consumers say they’re more apt to stick with a brand
that offers a loyalty program. And 66% of customers say the ability to earn rewards actually
changes their spending behavior” (Shopify, 2018).
Industry Trends
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The entertainment business is a fast-growing industry that is expected to grow by 7% by
2028. (The Bureau of Labor Statistics, 2018). This industry is evolving every single day, with new
technology, opportunities, and platforms and according to Christopher Vollmer; developing
content is not enough, people want more than the product itself; they want the experience and in
this industry every detail counts, from the experience in customer service to the uniqueness of the
product. (Vollmer, 2017). Due to the rapid growth of the entertainment and live event industry,
companies are looking for original and more innovative ways to advertise and bring awareness to
the customer. (Harrison, 2019). New technologies such as 5G, virtual reality (VR), and many
others can help expand content across many platforms, inside a venue, at a live show, or to support
advertisement and increasing revenue and customer experience, as Giselle Abramovich mentioned
in her article about 5 Trends Shaping The Future Of Media And Entertainment (Abramovich,
2017).
Business Opportunities
According to John Harrison, the business model is evolving and the way a product is
delivered in the industry is not as it used to be; customers are craving new experiences which gives
companies the freedom to create new and innovative solutions to adapt to new generations of
customers. Social media comes hand in hand with technology, but the key factors in creating a
friendly social media platform, where customers can reach out, complain, be heard, feel
comfortable, and a place where they can obtain updates of the company, and whenever a false
news or report about the companies comes out this platform can help customers now the truth
(ZeroFoxTeam, 2017).
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Business Threats
As John Harrison mentioned in his article about opportunities and threats for media and
entertainment companies, people crave unique experiences and companies have the freedom to
build that experience; however, not every company has been successful, due to the amount of new
experiences and content; this has led to a battle for the best content creation among the industry
and only the best are being successful which can have a negative impact many companies, making
it more difficult with every single event, live performance, and customer service experience. Social
media has great benefits to the entertainment industry; however, there is a downfall about social
media that this or any other industry has to fight account takeover, spear phishing, physical threats,
customer fraud, piracy and brand impersonation. These threats in social media and technology are
inevitable but can be minimized with proper online security; however, it is a risk that has to be
taken for progression in this or any other industry (ZeroFoxTean, 2017).
3: Strategy Formulation
Operations
Organizational Impact
The departments that we need to address this project start with Adolfina Ortiz, the
Chief Venue Officer (CVO), which serves as the administrative representative for this purpose
(Amway Center, 2019). In addition, the person in charge to lead this initiative is the Marketing
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Division Manager, which works hand in hand with the Chief Venue Officer. The Marketing
Department Works with the Operation Department and the Box Office Department for conducting
the scheduled events and activities during the events. Since the Box Office is responsible for
interactions with guests and issuing rewards/perks, The Royalty Program provides the Box Office
with the necessary materials they need to give to the customers when a claim is made. The perks
that the program offers are: exclusive lunch, discounts & coupons, BTS tours, and gifts such as
the pin when they register to the program, or other merchandise. The materials for all of the
mentioned perks are going to be provided to the Box Office as printed tickets specifying the perk:
the exclusive lunch tickets, the BTS tours tickets, coupons for discounts at restaurants and stores
available at the Amway Center. For the merchandise, the ticket will specify the goods being
claimed for the customer to pick up at the Amway Center Store. The Box Office will be the place
to claim the pins that are gifted to the customers when they get registered in the program, and the
office will be provided with a considerable amount of pins. The Finance Department needs to stay
in contact with the Operations Department and the Box Office for them to be able to exchange
points for money. When a customer tries to buy points online (through the app), the Operations
Department, which provides tech support, will work with the Finance Department to accomplish
the exchange, and the points will be shown in the app. The other possibility is that the customer
will go in person to the Box Office to perform the exchange; in this case, the Box Office is the one
that works with the Finance Office by providing them with the money, and at the same time, they
will contact the Operations Department for them to show the bought points in the customer’s app.
The Booking Department in charge to get events scheduled for the Events Department, will take
care of any events that the Premium Service provides such as the Exclusive Launch with the Levy
Restaurant; this department would also be connected to the Finance Department to deal with any
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expenses. From the Events Department, the event manager is called upon by the Marketing
Department to handle the clientele requirements and structure of the event(s) for higher-tier
patrons. They will be connected to the Marketing Department, which contracts the Operation
Department for operating the scheduled events and activities during the events. This department
will be connected to the Operation Department, where the Tech Support and HR Support teams
would provide 24/7 service for the app and security/firewall for sensitive data. Below is an
organizational chart that reflects all the points mentioned above.
Staffing Needs
In order to maintain the highest quality of our app, we need to hire both a customer service
team and a tech support team that will provide around the clock service. The average salary for
Event Fina Marke OperatiBookBox
Box
Office
Booking &
Revenue
Event
Manag
Busine
ss
Operati
Marketin
g
Manager
&
Operati
on
Interacts
with
guests and
Get events
schedule for
Event Dept
& manage
Handle
clientel
e
require
ments
Handle
all the
expense
s from
the
Works
with the
Operatio
n Dept for
conductin
Tech
Support &
HR Support
provide 24/7
Outsour
cing
Compan
y for
Works
with the
Financi
Security
staff
Devel
op
strateg
Coordinate
s with Levy
Restaurant
to supply
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technical support is 35,829 per year and the average for customer representatives is $30,688
(Glassdoor, 2019). According to Unicom, “the industry average is 70 employees to every help
desk technician.” (Unicom, 2018) Meaning that we would hire 35 people for the tech support team
and 35 for the customer service team. The total estimated cost of hiring both teams would be $2.3
million. However, the benefit of having 24-hour support teams is that it improves customer
relations. According to American Express, “U.S customers are willing to spend 17% more to do
business with companies that deliver excellent service” (Unicom, 2018)
Other Needs
When it comes to creating the Loyalty Program app, considering we could not find any
indication of the Amway center already has an app, we are going to outsource a tech team to create
it for us. The benefits of outsourcing are that it minimizes costs, promotes efficiency, and has
flexibility when it comes to staffing (The New York Times, n.d.). According to Microsourcing,
“59% of businesses surveyed said outsourcing was used as a cost-cutting tool” (Microsourcing,
n.d.).
Sales, Marketing, & Distribution
Marketing Mix
Price
There will be no cost of joining the loyalty program app. The only price that will apply to
the program is the option to buy the points. These point packages will be multiplied from their
standard value. To put this into perspective, the AMPs will be valued at 1 point per dollar spent at
an event. If a person were to outright buy the points, the price will be multiplied by three, making
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the value at three dollars per point for purchase. The reason for the multiplier is due to revenue
loss that can occur if the person buying the points only intends to rank up their loyalty tiers.
Opportunities for more revenue occurs when fans go to events and purchase items during their
time at the Amway Center. These opportunities are cut when someone just purchases the points.
The multiplier is here to help our company break even, or in some cases, profit when these actions
are taking place.
Product
Amway Center Premier is a tier-based, point tracked loyalty program for the Amway
Center which hosts diverse theme events targeted to entertainment consumers. This program will
be utilized to reap rewards and perks from attending these events, as well as increasing the
company’s revenue. This is a mobile app for the most loyal Amway Center attendees which was
created in the mind of benefiting the returning customers for numerous events hosted by the venue
throughout the year. Our service consists of exclusive benefits for the regular Amway Center’s
live show consumers to get the opportunity to invest what they usually spend on tickets, food,
merchandise, etc, on digital points that would be collected in our system. These digital points will
be called AMPS which stands for “Amway Points.” Moreover, this is a strategy that will increase
the Amway Center’s revenue by making their clients keep consuming their products/services and
building that emotional connection between them and its customers to then monetize it.
The main way that these specific customers can get their benefits is through a list of steps
divided by Silver, Gold, and Platinum. For the customers to get to the Silver Section, they need to
collect 500 AMPS which implies attending to approximately 3-4 live shows, spending at least $30
on food & beverage, and $50 on merchandise, as well as synchronizing every social media
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platform (Instagram, Facebook, Twitter, Pinterest, and Snapchat) to the Amway’s one, and giving
an email address. If they get to this section, it will provide them 1 free merchandise, a 25% ticket
discount for next purchase, the exclusive line before the show, and a 15% off coupon for food. For
the Gold section (800 AMPS), customers need to post on every social media platform that they
synchronized with the hashtag “#amwaycenterpremium,” attend at least 4-5 shows, spend at least
$50 on food and beverage, and $75 on merchandise. This section provides an exclusive lunch plus
all the items mentioned above. Lastly, for the Platinum section customers need to attend
approximately 6 live shows, spend at least $80, and $100 on merchandise, as well as keep posting
on social media. This section provides a special BTS tour, as well as all the items mentioned above.
These section’s goals will allow customers to get to their respective AMPS and enjoy their benefits.
Moreover, since we understand that not every premium member is willing to follow every
step to get the AMPS, we have created three packages where they can purchase them directly
instead of gaining these points step by step. This section of premium members is the ones that are
willing to pay for experience and comfort. After saying this, the first package will have 500 AMPS
which would get them to the Silver section (500 AMPS) and they will be able to get all the benefits
that this section offers. This first package would cost $199 and would allow them to get 1 free
merchandise, a 25% ticket discount for the next purchase, the exclusive line before the show, and
a 15% off coupon for food. Besides, when they get to Silver, they have the chance to get to Gold
(800 AMPS) for $399. This will not only include all the benefits listed above but also an exclusive
lunch completely free at the Amway Center with four extra tickets for guests. Lastly, they have
the option to pay $499 to get to Platinum (1,000 AMPS), in which they would get an additional
BTS tour that includes a snack a drink as well as a deep exposition about everything that happens
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behind the scene on a show at the Amway Center. This includes the participation of two (2)
management representatives and two (2) backstage staff.
In order for all this to be managed, our mobile app and the intern system can automatically
process every purchase made either at the Box Office or Ticketmaster thanks to the Operation
Department that keeps every customer’s history on the track. As mentioned above, we offer these
two different ways since this service is specifically offered to the most active consumers of Amway
Center that are willing to purchase and get benefited from it. In which at the same time, we are
increasing the company's revenue by encouraging people to keep constantly buying our products
either by consuming them and getting AMPS, or purchase the AMPS at the Box Office.
Distribution
The main outlets that we will use to distribute our app are through iOS (which represents
App Stores), Google Play, and Box Office & Ticketmaster for ticket sales. According to
TechRepublic, to publish an app on the Apple App Store, they charge an annual fee of $99
(TechRepublic, n.d.). We are also distributing it to Google Play which charges a one-time fee of
$25 (TechRepublic, n.d.). The mobile app would be found in Apple, Android, Samsung or any
other smartphone by using the outlets mentioned above. When customers download the app, as
part of their rewards tasks, they have to sign up by giving their full name and email.
Furthermore, to distribute the Amway Center Premier app, we would have it as an APK file
with a size under 70MG (Google Play, 2019). Amway Center’s Marketing Department would
develop a maximum of 4,000 characters' description of the app, as well as taking a maximum of 8
pictures (screenshots) of the app and its features (Google Play, 2019). The pictures would have a
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minimum length for any side of 320 px, and a maximum length for any side of 3840 px (Google
play, n.d.).
Moreover, when it comes to the tickets, we have two main ways to distribute them;
physically and online. According to the Amway Center’s website, the authorized ticket sellers are
Box Office and Ticketmaster (Amway Center, 2019). The box Office allows customers to use
Amway Center’s parking lot for 15 minutes (except during events), where the audience can buy
and obtain physical tickets (Amway Center, 2019). However, if the customers buy tickets from an
online source such as Ticketmaster, they get their digital tickets with an activation code that allows
them to get inside the venue. This is also a result of Ticketmaster implementing the paperless
tickets to their system (Ticketmaster, n.d.). According to their website, “Ticketmaster developed
the Paperless Ticket(TM) system as a way for consumers and event presenters to benefit from
virtually validated, non-transferable paperless tickets” (Ticketmaster, n.d.).
Promotion
We would use Direct Marketing such as E-mail Marketing and Newsletters. We would
have two booths in the left and right corner of the first floor at the Amway Center that would have
signage that says “Sign Up For Premium” and it is one of our tools to get their email. With this
strategy, we expect to reach specifically our target market and use it as a way to connect to them.
According to SuperOffice, “An email marketing strategy is an important part of any marketing
strategy. Email is the most cost-effective way to promote your products, communicate with your
customers and reach your business goals” (SuperOffice, 2019). It will be developed by the
Amway’s Marketing Department and would have a cost of $0.03 for a single monthly email per
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recipient sent to around 5,000 people, which gives a total of $1,500 per month. According to Web
Fx, “Reports show that 82% of marketers spend between 0% and 20% of their marketing budgets
on email. However, it’s recommended that you dedicate 16% of your total marketing budget to
email marketing” (Web FX, 2019). Moreover, since we will have these two booths in the Amway
Center, we will create 10,000 flyers of 5x7 inches every 2 weeks which will have a cost of $750
including design, printing, and shipping (Vistaprint, 2019). We are providing 5,000 flyers to each
booth (see Appendix for Flyer example). Also, we are going to create 5,000 bi-fold brochures
monthly that will cost $887.50 including design, printing, and shipping (Vistaprint, 2019). Since
the brochures include more information than the flyers and are more expensive, we will be giving
them to those customers that seem very interested in our service. Monthly between flyers and
brochures it would be a total of $2,387.
Also, we would use Online Advertisement, starting from social media campaigns
specifically on Instagram since that is where our target market is, as well as advertising with
Google Ads through their Display Network (banners on several websites) and the search engine
ads. We would create one post-campaign on Instagram every month. According to Marketing Hub,
“You can expect that you will have to pay somewhere between 20 cents and $2 per click (CPC)
on an Instagram campaign. If you prefer to run your ads on a cost per mille (CPM) basis, focusing
on impressions, then you are likely to pay around $5 per 1,000 visitors on average” (Marketing
Hub, 2019). The Google Ads campaigns will have a budget of $20 per day, which are distributed
through both of its advertisement tools. The Display Network will charge from $1 to $2 per
impressions according to our campaign settings, and it will show the banners on all of its available
sites (Web FX, 2018). On the other hand, the search engine will display the ads according to the
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searches performed with the keywords of interest, and it will charge a similar amount (from $1 to
$2) per click on the ad (Web FX, 2018).
Furthermore, we would use traditional advertising to promote the Loyalty Program. Our
strategy focuses on placing a big vertical banner made of durable waterproof vinyl material with a
size of 8’ x 12’ next to the Box Office lines; the cost of the banner with these specifications is $480
(Vistaprint, 2019). The banner invites people to register to the program and quickly tells them how
they will benefit from enrolling as a member and start earning points. It will be strategically located
next to the lines of the Box Office because that is where people go to buy tickets; Therefore, if
they see these benefits before buying the ticket they will consider enrolling just before buying the
ticket to start earning right away. Another tactic that we will implement is radio promotion.
Although there is not a specified number, Amway Center works with FM 101.9, which is owned
by Entercom Communications Corp, to promote their shows including artists, concerts, WWE
shows, etc (Radio.com, n.d.). This is a perfect opportunity for us to promote our Loyalty Program
by having a person talk about the app and all its features and benefits. According to Husband
Radio, this radio station has over 2.5 billion listeners per year (Husband Radio, n.d.). The fact that
around 209,000 people are listening to this radio ad, can be positive for us to build awareness and
reach more audience.
In conclusion, the whole marketing strategy is based on these three promotional categories
that work as an integrated campaign where through traditional and online marketing customers
will enroll in the program, thus e-mail addresses will be obtained and the direct marketing strategy
will come into play by applying email marketing, where promotions will be offered and exclusive
access to events will be announced. The three categories complement each other and make the
whole campaign work towards bringing customers to enroll in the program and furthermore,
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attracting more customers to the Amway Center events as well as encouraging consumption during
the events.
Sales Strategy
Amway Center Premium’s main goal is to motivate people to keep purchasing tickets and
attending to the live shows where they would also consume food, merchandise, etc. By saying this,
Amway Center has its own formal sales department called Box Office, through this office the
tickets are sold to the public onsite (Amway Center, 2019). Typically, an employee of the Amway
Center Box Office is a Customer Service Representative and according to Glassdoor.com, Amway
pays them $16 per hour (Glassdoor, 2019). The official authorized third party ticket seller
Ticketmaster, who charges a fee of 15% of the ticket price (Medium, 2018). Also, according to
Amway Center, “Tickets should always be purchased from an authorized ticket agent, i.e. the
Amway Center Box Office or Ticketmaster. Tickets purchased from other sources, including third-
party websites and ticket brokers, could be counterfeit or stolen” (Amway Center, 2019). The
authorized sources that Amway Center specifies in its website are the Box Office and
Ticketmaster, thus, the royalty program focuses on ticket sales from these two (Amway Center,
2019). The sales strategy that will be used is consultative because the two authorized methods are
onsite and online. Since this is an exclusive program that offers multiple opportunities for the
customers to enjoy live shows, personal lunches, BTS tours, and among others, there should be
well-trained and professional sellers that can address every step with the customers. This gives the
audience confidence and allows the Amway crew to persuade and convince them to purchase all
items from tickets to merchandise, etc.
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When it comes to the expenses, we will set up a 5 hours BTS tour with a capacity for 10
Premium customers per tour. For this exclusive event, there would be needed seven (7) employees
which consist of 2 tour guides, 2 for backstage staff, 2 management representatives, and 1 security
personnel. In addition, a snack with one soft drink will be provided for each guest, and it will cost
the Amway Center $5 each. In conclusion, the employees' cost for the Amway Center, considering
they get paid $16 per hour will be $560, added to the snack cost for 10 people gives a total of $610
per tour. On the other hand, there would be an exclusive lunch for the premium customers at one
of Amway’s executive rooms, which according to their production guide, has a capacity of 180
people (Amway Center, 2019). According to Amway Center’s production guide, “Orlando
Foodservice Partners (d/b/a Levy Restaurants) is the exclusive in-house supplier for all Food &
Beverage purposes at the Amway Center” (Amway Center, 2019).
Levy Restaurants will charge the Amway Center designated credit card for this event in
which the Amway Center will receive an itemized invoice outlining all charges in detail on the
event night (Levy, 2019). According to Levy Restaurant’s website, all food and beverage items
are subject to a 21% service charge plus applicable 6.5% tax (Levy, 2019). For this event, we
would order buttered popcorn, chips and dip assortment, party chicken wing trio, pepperoni pizza,
hot dogs, cookie and brownie platter, assortments of beer, non-alcoholic drinks, and 1 bottle of
wine which are the most requested menu for the Amway Center suite catering. According to Suite
Experience Group, “The typical suite experience buyer will spend anywhere between $75-$150
per person on in-suite catering” (Suite Experience Group, n.d). Since we want this event to be very
special for our Premium customers, we are spending $150 per person accepting a maximum of 20
people per month for this event. It will give a total of $3,000 of catering per exclusive lunch.
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Legal
Regulations
There are no permits or regulations that one must follow in order to create an app. Therefore, this
section is non-applicable.
Contracts
There are a few contracts that we would have to create and amend to do everything that we
want in the app. We would have to create a work for hire contract for the tech team that we are
outsourcing to create the app and create one for the app as terms and conditions. The ones that we
would amend are the contracts that Amway has with Levy Restaurants in order to give discounts
as a perk with the app, the basic contract for touring artist when using the venue, to adhere to point
system in accordance with their merchandise, the contract that we have with the Orlando Magic
and Orlando solar bears to have permission to get points from their games considering both teams
have loyalty app and a contract for training with Andy Frain for security purposes for the app
holder that have special access lines. Also, to have extra training, Amway will pay a percentage to
the hourly fee.
Insurance
The one insurance that we would definitely need is data breach insurance. Data breaches
have recently been becoming a bigger problem for companies in recent years. All data even little
data such as names and emails are incredibly important and damaging to lose. According to
Verizon, “22 percent of data breaches in 2017 involved the use of stolen credentials” (Verizon,
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2018) Though we are going to have a 24-hour tech team in order to combat any kind of data breach,
including data breach insurance in our defense, would be a smart choice.
Intellectual Property
The Amway Center holds the right to use their logo and name, therefore; we will be using
it in our rewards program and there will not be additional intellectual property.
4: Proposal Budget & Projections
Sales Projections
Financial Excel Sheet is provided apart from this document.
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ProjectBudget
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For our project budget, all costs were formulated based on the average amount of costs
associated with each expense in the industry. The grand total required for our project to cover all
expenses is rounded to $500,000. Starting with the Marketing expenses, we expect the expenses
to slightly grow over time as we begin establishing the reputation of the loyalty program. Direct
marketing will be done through emails and newsletters sent to those who sign up for the program.
It’s averaged that a business will approximately spend $300-$500 per month for email marketing
(WebFx, 2019). With this in mind, we decided to settle for $370 per month on direct marketing,
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giving us a total estimated first-year expense of $4,400. The other expenses for marketing include
Traditional Advertising, Online Advertising, Public Relations, and Distribution. Traditional
Advertising will be $3420, Online Advertising is listed at $6,500, Public Relations will be $15,000,
at $125. Booths and signage will be set to direct customers and familiarize them with the loyalty
program inside of the venue. Average costs per print and boards with marketing care estimated at
$16 per print, and $5 per custom signage (Lyfe, 2019). We plan to have a low number of print and
signage at the booths for the guests, considering that they will be given information about the
program at the box office. Online advertising will be done through social media, with an average
cost of $4,000 annually to effective run three social media channels (Dephillips, 2019). We plan
to use Instagram, Facebook, and Twitter to advertise our program. Due to Amway hosting social
media across these platforms, our loyalty program department will provide some financial
contributions, but not to a substantial amount as we will be consulting with the marketing
department. Public Relations has a one year expense of $15,000 due to the hosting and upfront
cost of the website we plan to build. An eCommerce website can average between $5000 to
$40,000 to set up depending on the number of products, functions, and features being implemented
into our software (Matt, 2019). We placed our estimated cost at $15,000 due to only offering three
packages for purchase, profile and account settings pages, as well as integrating our website with
the established Amway Center website, to avoid consumer confusion. Lastly, for marketing, our
first-year expense for distribution will be at $125, with a $100 yearly expense to follow for years
two and three. Due to how much it costs to distribute the app through app stores. Google Play
charges a one-time fee of $25, Android is usually free based on the number of microtransactions
in the app, and iOS charges a yearly fee of $99 (Mackenzie, 2012).
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Moving on to Employees, the costs were based on the average salary costs for the positions
we are staffing here in Orlando, FL. Our group decided to hire 4 employees for Tech Support, and
2 Employees for Human Resources. Amway Center has these departments integrated into the
business setting already, so there is no need for hiring a large number of employees for our team
specifically. The average salary of a Tech Support Analyst in Orlando, FL is $57,371 (Salary.com,
2019), and the average salary of an HR representative is $58,380 (Forest Time, 2019). Annual pay
for a Tech Support employee will be $52,000, and our HR employee will be paid $55,00 annually.
These numbers are below average due to having this project/business listed as a newly integrated
department in the Amway Center business model. Therefore, the starting salaries of the employees
for our department are listed low based on these factors, and the city they are operating in.
Equipment costs will be higher in the first year compared to the second and third year due to
the costs associated with setting up our office headquarters. The first year will be $55,025, and the
second and third year will be $2,600. The computers that our employees will operate are estimated
at $500 per business console. We will be needing four computers for our Tech Support employees
to work at a rotating schedule for 24-hour support. Four computer chairs from Staples will be
needed to comfortably seat our employees, with each chair being $85 (Staples, 2019). We will set
aside $425 to cover additional costs for taxes. For our software, we need to pay an upfront cost of
$50,000 to craft and build the operating system for our app and website. It is not a yearly cost.
Lastly, our Cloud service will be a yearly cost of $2,000 to have our customers data and card
information saved securely from VPN and cyber services (Nord, 2019).
Lastly, for our professional services and insurance costs, these numbers were projected at a
fixed annual cost, based on the amount it costs for General counsel, Secure Socket License, and
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the insurance policies. This number will be $26,545. Our General Counsel will be reporting to us
72 hours per year and will be paid $250 per hour. In general, legal counsel will charge $150-$500,
based on the business setting and cases (Lawkick, 2019). The Secure Socket License is needed in
order to retain information and make transactions for businesses (Matt, 2019). A yearly cost of
$400 will be needed for the organization permitting our license. This is due to an average cost of
$10 to $1000 per month, based on the business size. eCommerce websites typically pay a fixed fee
at $40 per month on average (Matt, 2019). For our insurance policies, we will be needing the
following policies. General Liability Insurance, Professional Liability Insurance, and Cyber
Liability insurance. We will be outsourcing these policies from organizations, totaling at a cost of
$712.08 per month for insurance (TechInsurance, 2019).
5: Strategy Implementation
Timeline & Key Milestones
For the Pre-Launch of our loyalty program, it is important to identify and research how the
Amway Center works in each department that would involve operations with our loyalty program
and which programs will need to be implemented for the success of our service. We will research
our target customers and find the best way to market and attract them while utilizing inexpensive
advertisements such as; print advertisements, e-mail, and Instagram. The most important part for
the Pre-Launch is to identify how will the loyalty program works from the inside by classifying
each tier, identifying the number of points each tier will have, establishing which perks will be
attained by every point made and the price per point; therefore we will establish which revue
streams the program will generate or impact in the company. In any company legal steps need to
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be implanted for every project, and for this loyalty program, we will complete any legal work
needed for a successful launch; such as contracts, insurance, regulations, and intellectual property.
Our goal for the prelaunch is to have a complete loyalty program that will satisfy the wants of our
customers while being attainable to manage with the best customer service and in addition to, we
will have a tech support team that will work efficiently to fix any problem the app might encounter
in the launch process.
After the first year of the loyalty program, we would want to achieve an increase in revenue based
on the number of people attracted to the Amway Center due to the perks that the loyalty program will offer.
First, we will evaluate the number of customers actively using the program, the type of purchasesthey make
and which events the majority attends,with the data obtained by the program and the feedback received by
the customers we will adjust and re-evaluate the operations of the programs. Our main goal for the first
year is to attract as many costumes to join the rewards program, create awareness among other Amway
Center customers and improve and receive as much feedback as possible to perfect the program.
For our second year of rewards program, we want to have strong and established loyal
customers that will use the rewards program in the long run, increasing attendance and awareness
for future customers. We will analyze the total results and feedback of the past two years and make
any changes or adjustments to better the product, as well as update it with the latest technology
available. Our main goal for the second year is to increase regular attendance from the customers
and the increase in revenue.
For the third year of the Amway Prime loyalty program we want to have gained a significant
amount of users and loyal customers, keeping up with the latest trends in technology and loyalty
programs, as well as to evaluate the customer service and content with all the feedback and data
collected throughout the platform, without using personal data but algorithms of purchases and
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usage. Our main goal for the third year is to have increased significantly the number of people that
attend the Amway Center and increase the number of events they attend per month with perks and
additional discounts.
Pre-Launch
Pre-launch
Date/Time Frame Event/Milestone
1 year prior to launch day
Marketing Campaign for pre-launch.
10 months prior to launch day Develop logistics and functions of the APP
9 months prior to launch day Create documentation and file legal work
9 months prior to launch day Create loyalty program APP/Website
6-5 months prior to launch day Find ways to make extra revenue
Launch Day Launch a successful APP and website
Year 1
Year 1
Date/Time Frame Event/Milestone
3 months prior to launch day
Marketing campaign for first year
6 months after launch day 50,000 subscribers to loyalty program
8 months after launch day Increase in revenue and attendance by 5%
10 months after launch day Collect data about attendance and patterns
1 year after launch day Collect customer feedback
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Year 2
Year 2
Date/Time Frame Event/Milestone
9 months after launch day
Marketing campaign for year 2
1.2 years after launch day 100,000 subscribers to the loyalty program
1.6 years after launch day Introduce new technology into app/payment
2 Years after launch day Increase attendance by 10%
Year 3
Year 3
Date/Time Frame Event/Milestone
1.9 years after launch day
Marketing campaign for year 3
2.2 years after launch day 200,000 subscribers to the loyalty program
2.6 years after launch day Introduce perks to every tier of the program
3 Years after launch day Increase attendance by 20%
6: Future Plans
Long-term Opportunity & Development Plans
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Loyalty programs are one way to stay connected with your audience and build a customer
that will want to keep coming back. The main purpose of this loyalty program is to bring customers
to the venue, by adding perks and additional benefits to every purchase they make. Our plan for
the Amway Center Prime loyalty program is to become more than an APP that tracks points and
gives benefits but a place where the customer can enter and find all the information a resource
needed to enjoy an event or watch the event throughout the APP. By implementing live streaming
thought-out the APP, we can create more ways to generate revenue by engaging audiences outside
the venue and advertising to them, as well as bringing more people into the show to create
experiences. Technology evolves every day and we want to be a part of it; we will offer different
payment methods, ticket purchases, games, community interactions and the latest news in the APP,
creating convince, connection and entertainment among customers. (Dunnhumby, 2018). The
loyalty program will evolve within the next ten years to adjust to new generations and implement
more ways to target different markets and increase attendance, revenue, and technological use.
7: Appendices and References
References
Abramovich, G. (N.D.). 5 Trends Shaping The Future Of Media And Entertainment. Retrieved
From Https://Cmo.Adobe.Com/Articles/2018/6/5-industry-trends-shaping-the-future-of-
media-and-entertainment.Html#Gs.7w9hpd.
Amway Center - Orlando: Tickets, Schedules, Seating Chart, Directions. (N.D.). Retrieved
October 5, 2019, From Https://Www.Ticketmaster.Com/Amway-center-tickets-
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orlando/Venue/279548.
Amway Center (@Amwaycenter) • Instagram Photos And Videos. (N.D.). Retrieved From
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statistics.
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convention-and-event-planners.Htm.
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Appendices
StrategicBusinessProposal Page 53
of 53
Appendix 1: Competitive Analysis

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Amway Center Premier - Business Proposal

  • 1. Strategic Business Proposal 1 of 53 Strategic Business Proposal for For: Amway Center amwaycenter.com Prepared On: 10/03/2019 Prepared By: Sara Sano Di Fabio Marcela Celma Naiya Armour Johnny Crespo Instructor Name: Annie Quaile
  • 2. StrategicBusinessProposal Page 2 of 53 Contents Introduction #3 Executive Summary #3 1. Organizational Challenges & Proposed Solution #4 Organizational Challenges #5 Proposed Solution #6 2. Environmental Scanning #7 Internal Analysis #7 External Analysis #15 3. Strategy Formulation #19 Operations #19 Sales, Marketing, & Distribution #22 Legal #32 4. Proposal Budget & Projections #33 Sales Projections #33 Project Budget #33 5. Strategy Implementation #38 Timeline and Key Milestones #38 6. Future Plans #41 Long-Term Opportunity and Development Plans #42 7. Appendices and References #43 References #43 Appendices #51 Appendix 1: Competitive Analysis #51 Appendix 2: Example Flyer #52
  • 3. StrategicBusinessProposal Page 3 of 53 Introduction Executive Summary Loyalty programs have been implemented in many venues, and businesses to attract customers and create a connection with the audience,studies say that loyalty programs increase revenue from 5 to 10 percent. The Amway Center is one of the largest venuesin the City of Orlando able to fit 20,000 people per event,offeringgreatamenitieswithanincredible location.We are the home of the OrlandoCityand OrlandoSolarBearsandwe are onourwaytobecomingoneof thebestandmostknownvenuesinFlorida. The purpose of this proposal is to create a points and tier-based loyalty program called Amway Center Premiumtokeeprevenue in,addextrarevenue,engage the audience andkeepupwithtrendsand new technologies.We wanttotarget familiesthatenjoyentertainmentandqualitytime togetherandmarket themtojointhe loyaltyprogram,attendmore events,obtainbenefitswitheverypurchaseandeventually make them assist in more events and therefore spend more money. To make this possible, we have developed a marketing strategy based on Direct Marketing, Online Advertisement, and Traditional Advertisement, which will have an effective impact on Amway Center’s awareness. _________ ______________ ______________ _________ Sara Sano Di Fabio Marcela Celma Naiya Armour Johnny Crespo
  • 4. StrategicBusinessProposal Page 4 of 53 1: Challenges & Solutions Organizational Challenges Our mission is to attract customers to the venue and create preference among other venues due to the perks that the Amway Center offers. The Amway Center has a competitive advantage among other venues in Orlando; however nearby cities such as Tampa, Miami, Fort Lauderdale, and many others are strong competitors of the Amway Center and our mission with this proposal is to attract enough customers to choose the Amway Center over any surrounding arenas hosting the same type of events. We want to make the customer feel as if they’re very special to us and creating their most memorable experiences. They also want engagement, and 98% of customers in a survey stated that they are more inclined to make another purchase at an event after just attending one of their events (Roberge, 2017). Our biggest challenge is to create something unique that suits the Amway Center and embraces all of the needs of our target audience while competing with other arenas across Florida. According to Vince Ircandia, it is important to deliver a contextualized message to increase emotional connections among fans, it is important to customize each experience and make them feel welcome and special with each event (Ircandia, 2019). We also want to keep in mind that the customers want to have a valued memorable experience. Providing incentives to the events that they’re attending can elevate their experiences on a further positive note. Another potential challenge for the venue is securing sponsors for our events. Other loyalty programs exist in our venue already like Orlando Magic’s team app and Solar Bears program. Restaurants may already be tied to these loyalty programs and implementing a new loyalty program in the business model could add confusion to customers. Sponsors can also provide expense relief on costs and necessities for other items and/or food/drink (Eventbrite, 2019).
  • 5. StrategicBusinessProposal Page 5 of 53 Another big challenge for our organization, especially in regard to live events, is how we are getting tickets to the customers attending our events. Former Ticketmaster CEO mentions that live venue businesses are losing on about $15 billion a year due to having tickets go on sale, only to be snatched by scalpers and supplied to a shady second economy for ticket sales (Johnson, 2018). Even if we want to have our customers benefit even just for purchasing a ticket, we want to make sure that they’re getting it from a trusted seller, or from ticketmaster directly. The final challenge is applying consumer feedback. As part of wanting our attendees to feel special and that they’re getting a valuable experience, we want to make sure that their voices are heard. Live venue operations sometimes fail to do this, and the Amway Center could find themselves overlooking this if they’re not careful. It’s easier than ever to connect with consumers, yet it is harder than ever to connect with consumers. Brands should seize the opportunity to further connect to their target market by further applying their emotions and feedback (Richards, 2018). Proposed Solution Our proposed solution is a loyalty program, called Amway Center Prime, that works on a point and tier-based system. Our client requested a loyalty program for the venue, and we decided to fulfill their request while keeping the steady flow of revenue streams,and loyal customers to the brand as well. The reason that this would be beneficial for Amway Center is that it increases revenue, ability to receive relevant customer data and better communication between the company and customers. It has been shown that loyalty programs in general have increased revenue by 5-10% (Ogino. S, 2019). Statistics also support the idea of implementation of loyalty programs into current infrastructures. A loyalty increases of just 7% can boost profits per customer by 85% (Brand Keys, 2019). According to Katherine Black, a principal in KPMG with over 20 years of experience said that
  • 6. StrategicBusinessProposal Page 6 of 53 “loyalty programs are proven methods for growing and sustaining market share”, which means that if a customer already likes the brand they are very likely to come back and purchase their products or services more often (Black, 2017). There has been a number of different companies that have benefitted from having a loyalty program. Some example companies include DSW and Amazon. DSW offers a point system that awards the customer for the amount spent on store merchandise. With this, they built a large following of 20 million users who shop exclusively through their loyalty program (Prilliman, 2014). Amazon has a loyalty program called Amazon Prime that is not based off of a point system but is based on rewarding subscribers with endless benefits across services they frequently use like Spotify, Xbox, and Playstation (Prilliman, 2014). Our program will have a separate way of gaining more revenue since one could pay for points rather than earning points by going to games and other activities. This provides value to that of someone attending events by offering an additional incentive for those who may not find themselves at numerous events per year but would still like to have the rewards given from higher tiers. Each tier will also provide access to specialized events specifically only for the people in that tier. These events will be at the Amway Center with partnered sponsors so that it is a bonus for all companies involved considering these events can be used for marketing and campaigns as well. For example, the Amway can incorporate the logo from the loyalty program on Instagram, and rewards can be showcased in the captions of the images with the tagline “Sign up now!”.
  • 7. StrategicBusinessProposal Page 7 of 53 2: Environmental Scanning Internal Analysis Company Overview The Amway Center is said to be one of the most iconic destinations in central Florida. This modern age facility has a capacity of 20,000 people and was “uniquely designed to stage every event with the highest possible production” (Amway Center, 2019). This includes being the home to the Orlando Magic and the Orlando Solar Bears as well as putting on a number of different concerts as well as hosting different types of sports in family events in the arena. Despite the name of the center being Amway, it is not owned by the company Amway, but rather by the Orlando City Council (i4Business, n.d.). Financial Standings Forbes listed the Orlando Magic’s value to the Amway Center at $150 million, making this the most valuable asset to the venue. The report also mentioned that the NBA team has a fairly large portion of the market for entertainment in Orlando. That number was estimated at a staggering $314 million (Forbes, 2019) (see appendix 1 for the graph). According to the report, the basketball team is also having a small percentage increase annually for value to the team. The value percentages are based on how a corporation’s assets are performing in terms of revenue and market interaction. It is estimated that the Orlando Magic had an increase in value change by 8% from last year. The annual value of the team overall was increased by 12% at the same time
  • 8. StrategicBusinessProposal Page 8 of 53 (Forbes, 2019). With the recent success of the Orlando Magic, the company can expect to see steady growth in value for sports events to come. Moreover, the entertainment market is expected to grow to 2.6 trillion U.S. dollars in 2023. According to Statista, “it was worth an estimated 678 billion U.S. dollars in 2018 and is expected to grow to over 720 billion U.S. dollars by 2020” (Statista, 2019). Statista also stated, “Projections indicate that the sector which will see the most compound annual growth rate will be internet video, which will grow by 11.6 percent during the stated time. In comparison, newspaper publishing is expected to shrink on an annual basis by 2.7 percent” (Statista, 2019). Organizational Strengths One of the biggest strengths that Amway Center has is its location. It is located in the downtown area of Orlando which is 20 minutes away from the MCO airport in case that some of our customers (out of Orlando) decide to fly to attend the Amway’s shows. This provides a more accessible opportunity for our target market to attend and be a part of what the Amway Center has to offer them. Besides having the airport near, there are the most touristic places such as the Church Street, Wall Street Plaza, Downtown Clubs, and easy access to the main highways of the cities (i.e. i-4 and SR408). Since with the Amway Center Premium program we want to encourage our members to keep attending the shows, it is crucial that our venue is in a strategic place where they can easily get to. The Amway Center was designed to provide a space for several types of events; from elite concert series, sports events including NBA All-Star games, hockey championships, Olympic Ice and track trials, ultimate fighting and professional wrestling, indoor soccer, extreme sports including motorsports exhibitions, professional bull riding and rodeo, among many other family
  • 9. StrategicBusinessProposal Page 9 of 53 events (Amway Center, 2019). Everything inside the Amway Center is brand new, it has bigger seats and better sightlines, its design is technologically one of the most advanced ever built. Every level of the building includes amenities, even a kid’s fun zone. According to Amway Center’s website, “it’s unlike any arena ever built” (Amway Center, 2019). It’s a world-class experience, unlike anything Central Florida has ever seen (Amway Center, 2019). This is considered one big strength of the Amway Center since it’s suitable for all audiences; meaning audiences for several types of events and audiences of all ages and tastes that can fit the 18,500 seats that it provides. Amway Center Premium is a program to encourage customers to attend the events and purchase everything that Amway offers at the venue, however, if there was not enough capacity for attendees, it would limit us from making a marketing strategy as big as this one. Another huge strength that the Amway Center has is its versatility when it comes to their different types of customers. First of all, they provide an exclusive parking lot for their attendees which is guided by professional staff (Amway Center, 2019). When customers buy their ticket, they have the option to reserve a spot on the Amway’s parking lot. Moreover, they are also able to provide a VIP area which costs around $2,000 depending on the show (Amway Center, 2019). This is another opportunity for customers to increase their live events experience by having high- level attention from Amway Center’s staff that dedicates their time and effort to build the best environment possible for the attendees. This high-level attention means that when a customer wants to use any of Amway’s features such as parking, VIP area, etc., these clients can receive a good treatment from staff, diversity of food, security for the parking lot, a worthy view from VIP area, and among others. This relates to the Amway Center Premium since our goal is to provide the best experience to customers, as well as giving them many options to choose when purchasing
  • 10. StrategicBusinessProposal Page 10 of 53 and selecting the desired ticket, section, food, etc. By saying this, through our Loyalty Program, we supply discounts and promotions that then, they can apply to these features. Organizational Weaknesses Amway Center, which has 875,000 square feet of space and 15,500 seats availability, is known for having an immense staff body per show (Amway, 2019). However, this requires a lot of organization and training since the staff is constantly changing and new people join the team even if it is a day contractual shift. Based on attendees’ reviews, the staff is not well enough oriented to handle and guide customers on a highly proficient level. Since one of the most relevant aspects that we want to provide is efficient customer service, this is a weakness that needs to be adjusted. Furthermore, there is a concern about how long lines affect the attendees. Since this influences Amway Center’s customer experience, as stated in our proposed solution, we are presenting the Amway Center Premium service that includes a benefit in which these premium customers can have a separate and exclusive line. The way it would be addressed is by providing an early access that is not taking place at the main entrance (to avoid conflict between the premium and non-premium customers), which will take place at one of the lateral entrances with security bodies and event staff. This will not only be beneficial for the premium members to be more comfortable but since this can be a solution to end the long lines, it will satisfy every attendee increasing their experience level. Lastly, understanding nowadays’ technological advancements is an essential element in the business side of the entertainment industry. However, the Amway Center lacks a strong social
  • 11. StrategicBusinessProposal Page 11 of 53 media presence which negatively affects the relation between the venue and its customers. Amway Center’s Instagram account has approximately a maximum of five (5) comments per post with no followed answers, and although it is one of the most prestigious venues in the united states, it only has 44.9k followers (Instagram, 2019). According to their official website, “Technologically, Amway Center is one of the most advanced ever built, highlighted by the main scoreboard – the largest of its kind in the NBA” (Amway Center, 2019). It has been recognized for its technology awareness that it is important for them to get updated with it and provide full attention to customers not only at the venue, but online as well which is the main point of Amway Center’s Prime service. (Amway Center, 2019) Customers Amway Center’s target audience is full-time job males with an age between 25 and 34 years old. They have a middle-class income, and their main focus is on their families. This target market is mostly located in the Central Florida area such as Orlando, Miami, and Tampa. They are adapted to the technological advancements in which they spend approximately 15 hours a week making fantasy sports teams for betting and also looking at box score reports. Their content consumption methods are mostly through YouTube where they watch live stream sports games, as well as Apple Music for listening to music at least four times a week specifically while they are driving to their destination. Since they have a fast-paced life, they used to go to fast-food restaurants such as Chick-Fil-A, McDonalds, or Steak & Shake. Their favorite clothing shops are Aeropostale, Hollister, and American Eagle. The best way to advertise to this demographic is
  • 12. StrategicBusinessProposal Page 12 of 53 specifically through online marketing such as social media (Instagram and Facebook), Google ads, and email marketing. When it comes to their motivation to buy the Amway Center’s Prime Service, it is all about their need to find effective low-cost opportunities that can provide a valuable experience for them and their families. Since the Orlando Magic served as the developer of the Amway Center which hosts major national events, concerts, and family shows, this is the perfect fit for them to find a way to be involved and get the benefit for it (Amway Center, 2019). The usage rate for them would be approximately once a month for the rewards and once every three months for the actual events. The main distribution channels for them are through direct ticket sales in the Amway Center box office, and through third party online sellers (i.e. Ticketmaster, Eventbrite, StubHub, etc.). Collaborators Amway Center’s collaborators range from community partners to large and supportive corporations. The venue’s community partners in Orlando are Disney Parks, RP Funding, PepsiCo, Harris, and Advent Health (Amway, 2019). The community partners are a great way for the Amway Center to connect with their target market across all avenues in the city. The partnerships even offer some exclusive bundles for those who are consumers of Amway’s community partners. For example, if a resident of Orlando has a Walt Disney World Annual Pass, if they chose to renew it for a year, they will receive a free jersey of a player from the Orlando Magic NBA team (NBA, 2019). For main events in the venue, Ticketmaster is their prime distributor for tickets to their sports games, concerts, and conferences. They have very close ties to many of the sports teams based out of Orlando, most notably the Orlando Magic NBA team. The arena is also home to the
  • 13. StrategicBusinessProposal Page 13 of 53 Solar Bear hockey team and the Orlando Predators football team. These teams overall play a huge role in the Amway Center’s business model by funneling the teams’ fanbase to the arena, since it is the location where they planted their flag and call it their home. An agency that is tied closely with the arena is the Orlando Venue foundation. This is the company that mainly oversees the operations and directory across multiple large-scale venues in Orlando, FL. Although we see powerful connections and partners, Amway Center is not much affiliated with merchandise suppliers from outside corporations. They do have a home NBA Team shop for fans, but when a concert is hosted in the venue, they will leave it up to the artists to completely supply the merchandise for fans. This could be a concern of revenue loss since the only way to capitalize on this opportunity is currently through food vendor purchases, as the venue only gets a small percentage of the profit made from merchandise. Some events don’t incentivize the revenue to the arena at all. It seems as if concerts and musicals are mainly controlled by outside parties and the Amway Center should implement interactive activities from the upcoming loyalty program to elevate the experience for fans, while also bringing in more revenue. External Analysis Competitors Through research, we came across multiple direct competitors of the Amway Center. Amway Center’s direct competitors, in this case, result in multiple large-scale arenas across the State of Florida. The Amalie Arena and American Airlines Arena are some of the biggest competitors. Starting with Amalie Arena, the venue is located in Tampa, FL. It is the closest competitor out of the three listed earlier. This arena is known for hosting headlining concerts,
  • 14. StrategicBusinessProposal Page 14 of 53 festivals, and sports games (Amalie Arena, 2019). In terms of sports events, they are not known for sports as much as the Amway Center, because they only host college basketball and hockey. Therefore, they do miss out on the sports crowds when compared to our company. When we look at American Airlines Arena, they can rival the Amway Center very closely. Not only do they host concerts and conferences, but this is also the home of the NBA’s Miami Heat. They are also a large-scale arena capable of seating 21,000 at full capacity (AAArena, 2019). With that being said, they are a bit further away in the city of Miami, FL. The Amway Center should not be too concerned over the competition here if they plan on staying connected to their primary fanbase in Orlando. Some venues to be wary of in neighboring cities can include the Amalie Center in Tampa, and the American Airlines arena in Miami. The Addition Arena is a close proximity venue located in the University of Central Florida. Business Climate Political & Regulatory The FCC is the one that handles interstate communication such as radio, television, wire, satellite, and cable. They would handle situations regarding live events that are broadcasting such as the main company that regulates live venues is OSHA (Occupational Safety and Health Administrations). OSHA handles the overall safety of the venue as well as the workers and the safety laws they adhere to such as capacity limits, noise disturbances near residential areas, opening and closing requirements. Another association that is associated with live events is the International Live Events Association who maintains a code of ethics and conduct with rules such as “protect the public against fraud and unfair practices and promote all practices which bring
  • 15. StrategicBusinessProposal Page 15 of 53 respect and credit to the profession” (ILEA). While Amway as a company is not affiliated with them, there is a possibility that some of their employees belong to this association considering a majority of members fall under planners and coordinators. The biggest issue that will have an impact on our solution is recent problems in data privacy in apps. There have been recent breaches in privacy at companies such as Yahoo and Capital One. The Florida Information Protection Act of 2014 protects consumer’s information which means “any material, regardless of the physical form, on which personal information is recorded or preserved by any means, including, but not limited to, written or spoken words, graphically depicted, printed, or electromagnetically transmitted that are provided by an individual in this state to a covered entity for the purpose of purchasing or leasing a product or obtaining a service.” The way we can work around the recent issue of a data breach is by fortifying firewalls and maintaining proper data protection protocol at all times. Economic The economic status of our industry is consistently growing. Coming into 2019, this year we see rapid growth in the entertainment industry as a whole. According to Research Firm PwC, the report estimates that revenue from media and entertainment will reach a total of $2.2 Trillion by 2021 (SingularDTV, 2018). In this case, we are focusing on the live events industry. The industry’s success has been the result of rising and continued demand for live entertainment. In the past 5 years, the live events industry was projected to grow at an annual rate of 4.6% every year, increasing the revenue margin by $33.3 billion each year. 2019 alone had a 2.3% increase in the annual rate (IBISworld, 2019). This furthermore supports the idea of live events are becoming
  • 16. StrategicBusinessProposal Page 16 of 53 a major staple across the entertainment industry today, and it also shows the economic state of the live events sector. The economic status of our market saw a small increase in recent years. We are targeting middle-income individuals in the United States. Since the Amway Center is in Florida, we will look at the base income range for middle-class individuals in this state. According to Investopedia, the average income bracket for middle-class families/individuals in Florida is $75,414.00 (Frankenfield, 2019). The economic status of our target market is expected to continue a slow growth over the next two years at a minimum. Due to government affiliations with the economy, there will most likely be smaller shifts in the income levels. However, middle-class families have an uncertain future due to economic slumps and decline. The high price of housing, wage stagnation, job insecurity, crushing childcare expenses, rising health care premiums and college costs the size of a mortgage is pushing the middle down several rungs of the ladder (Singletary, 2018). Middle-class families do have a future that is heavily altered by the government, and any little move to inflation or other economic protocols can push the bracket further down the ranks. Social & Cultural According to 3Cinteractive, over 64 percent of brands are building loyalty programs to attract more dependable customers that would want to become recognized customers for every purchase or interaction they make with the brand. Traditional loyalty programs are no longer useful, and people expect exclusivity and personalization. Our target audience consists of 25 to 34-year old millennials seeking personalized and unique experiences since technology has developed ways for companies to be able to personalize products and services for each individual or generation, customers' expectations elevated and created a social change. (Crowd Twist, 2018).
  • 17. StrategicBusinessProposal Page 17 of 53 In the past few years, society has wanted to be more aware of taking care of the planet and has come after massive companies that were not socially responsible. A recent study found that over 81 percent of our target market; millennials, expect of brands to not worry only about their profit but to be socially responsible and are even willing to pay higher prices for companies that care about the society and the planet. (Crowd Twist, 2018). Technological One of the biggest technological advancements in the entertainment industry, specifically in music, is the incorporation of music digital platforms such as Pandora, Spotify, Tidal, etc. It has affected our current music consumption methods. According to Kent State University, “Even paid streaming services that offer access to wide catalogs of completely authorized music are much less expensive than physical musical media ever was; a month’s subscription to Spotify Premium or Apple Music is the equivalent of the price of a single CD in the late 1990s, for example. Affordable and authorized streaming services have also helped reduce the amount of piracy across the music industry by shifting the balance between risk and reward for would-be pirates” (Kent State University, n.d.). Another industry trend that has impacted the entertainment industry is the virtual reality (VR) implementation that is meant to create simulated environments and provide an unforgettable experience to those “loyal” customers. This has been an immense impact to specifically live shows which according to Daily Trojan, live events are one of the biggest fields for virtual reality (Daily Trojan, 2019). Many companies in the entertainment industry has come together to support and be involved with a movement as huge as the virtual reality such as the partnership between NextVR
  • 18. StrategicBusinessProposal Page 18 of 53 and Live Nation that stream the Global Citizen Music Festival in virtual reality, as well as broadcasting VR recordings of concerts and other music-related events (Daily Trojan, 2019). Moreover, mobile integration in the entertainment industry has given a total switch not only for musicians but also for social media influencers, record labels, media companies, etc. Before this era, record labels were the ones who controlled the interaction between artists and fans, but now it has changed (Social Media Week, 2015). According to Social Media Week, “Possibly the biggest shift in music that has come through social media has been through an increased level of interaction between musicians and their fans” (Social Media Week, 2015). Social media platforms such as Instagram, are providing a video content broadcasting space that allows professionals to share their material specifically to promote as a vial of marketing strategy (Deloitte, 2019). When it comes to the new industry and its changes in the loyalty programs, both local and online stores are using what is called digital “points” per purchase which includes tiers of rewards that customers can unlock as they spend more. This is a process where online systems can recognize and collect their customers’ names, email, phone number, and payment information. According to Shopify, “As many as 84% of consumers say they’re more apt to stick with a brand that offers a loyalty program. And 66% of customers say the ability to earn rewards actually changes their spending behavior” (Shopify, 2018). Industry Trends
  • 19. StrategicBusinessProposal Page 19 of 53 The entertainment business is a fast-growing industry that is expected to grow by 7% by 2028. (The Bureau of Labor Statistics, 2018). This industry is evolving every single day, with new technology, opportunities, and platforms and according to Christopher Vollmer; developing content is not enough, people want more than the product itself; they want the experience and in this industry every detail counts, from the experience in customer service to the uniqueness of the product. (Vollmer, 2017). Due to the rapid growth of the entertainment and live event industry, companies are looking for original and more innovative ways to advertise and bring awareness to the customer. (Harrison, 2019). New technologies such as 5G, virtual reality (VR), and many others can help expand content across many platforms, inside a venue, at a live show, or to support advertisement and increasing revenue and customer experience, as Giselle Abramovich mentioned in her article about 5 Trends Shaping The Future Of Media And Entertainment (Abramovich, 2017). Business Opportunities According to John Harrison, the business model is evolving and the way a product is delivered in the industry is not as it used to be; customers are craving new experiences which gives companies the freedom to create new and innovative solutions to adapt to new generations of customers. Social media comes hand in hand with technology, but the key factors in creating a friendly social media platform, where customers can reach out, complain, be heard, feel comfortable, and a place where they can obtain updates of the company, and whenever a false news or report about the companies comes out this platform can help customers now the truth (ZeroFoxTeam, 2017).
  • 20. StrategicBusinessProposal Page 20 of 53 Business Threats As John Harrison mentioned in his article about opportunities and threats for media and entertainment companies, people crave unique experiences and companies have the freedom to build that experience; however, not every company has been successful, due to the amount of new experiences and content; this has led to a battle for the best content creation among the industry and only the best are being successful which can have a negative impact many companies, making it more difficult with every single event, live performance, and customer service experience. Social media has great benefits to the entertainment industry; however, there is a downfall about social media that this or any other industry has to fight account takeover, spear phishing, physical threats, customer fraud, piracy and brand impersonation. These threats in social media and technology are inevitable but can be minimized with proper online security; however, it is a risk that has to be taken for progression in this or any other industry (ZeroFoxTean, 2017). 3: Strategy Formulation Operations Organizational Impact The departments that we need to address this project start with Adolfina Ortiz, the Chief Venue Officer (CVO), which serves as the administrative representative for this purpose (Amway Center, 2019). In addition, the person in charge to lead this initiative is the Marketing
  • 21. StrategicBusinessProposal Page 21 of 53 Division Manager, which works hand in hand with the Chief Venue Officer. The Marketing Department Works with the Operation Department and the Box Office Department for conducting the scheduled events and activities during the events. Since the Box Office is responsible for interactions with guests and issuing rewards/perks, The Royalty Program provides the Box Office with the necessary materials they need to give to the customers when a claim is made. The perks that the program offers are: exclusive lunch, discounts & coupons, BTS tours, and gifts such as the pin when they register to the program, or other merchandise. The materials for all of the mentioned perks are going to be provided to the Box Office as printed tickets specifying the perk: the exclusive lunch tickets, the BTS tours tickets, coupons for discounts at restaurants and stores available at the Amway Center. For the merchandise, the ticket will specify the goods being claimed for the customer to pick up at the Amway Center Store. The Box Office will be the place to claim the pins that are gifted to the customers when they get registered in the program, and the office will be provided with a considerable amount of pins. The Finance Department needs to stay in contact with the Operations Department and the Box Office for them to be able to exchange points for money. When a customer tries to buy points online (through the app), the Operations Department, which provides tech support, will work with the Finance Department to accomplish the exchange, and the points will be shown in the app. The other possibility is that the customer will go in person to the Box Office to perform the exchange; in this case, the Box Office is the one that works with the Finance Office by providing them with the money, and at the same time, they will contact the Operations Department for them to show the bought points in the customer’s app. The Booking Department in charge to get events scheduled for the Events Department, will take care of any events that the Premium Service provides such as the Exclusive Launch with the Levy Restaurant; this department would also be connected to the Finance Department to deal with any
  • 22. StrategicBusinessProposal Page 22 of 53 expenses. From the Events Department, the event manager is called upon by the Marketing Department to handle the clientele requirements and structure of the event(s) for higher-tier patrons. They will be connected to the Marketing Department, which contracts the Operation Department for operating the scheduled events and activities during the events. This department will be connected to the Operation Department, where the Tech Support and HR Support teams would provide 24/7 service for the app and security/firewall for sensitive data. Below is an organizational chart that reflects all the points mentioned above. Staffing Needs In order to maintain the highest quality of our app, we need to hire both a customer service team and a tech support team that will provide around the clock service. The average salary for Event Fina Marke OperatiBookBox Box Office Booking & Revenue Event Manag Busine ss Operati Marketin g Manager & Operati on Interacts with guests and Get events schedule for Event Dept & manage Handle clientel e require ments Handle all the expense s from the Works with the Operatio n Dept for conductin Tech Support & HR Support provide 24/7 Outsour cing Compan y for Works with the Financi Security staff Devel op strateg Coordinate s with Levy Restaurant to supply
  • 23. StrategicBusinessProposal Page 23 of 53 technical support is 35,829 per year and the average for customer representatives is $30,688 (Glassdoor, 2019). According to Unicom, “the industry average is 70 employees to every help desk technician.” (Unicom, 2018) Meaning that we would hire 35 people for the tech support team and 35 for the customer service team. The total estimated cost of hiring both teams would be $2.3 million. However, the benefit of having 24-hour support teams is that it improves customer relations. According to American Express, “U.S customers are willing to spend 17% more to do business with companies that deliver excellent service” (Unicom, 2018) Other Needs When it comes to creating the Loyalty Program app, considering we could not find any indication of the Amway center already has an app, we are going to outsource a tech team to create it for us. The benefits of outsourcing are that it minimizes costs, promotes efficiency, and has flexibility when it comes to staffing (The New York Times, n.d.). According to Microsourcing, “59% of businesses surveyed said outsourcing was used as a cost-cutting tool” (Microsourcing, n.d.). Sales, Marketing, & Distribution Marketing Mix Price There will be no cost of joining the loyalty program app. The only price that will apply to the program is the option to buy the points. These point packages will be multiplied from their standard value. To put this into perspective, the AMPs will be valued at 1 point per dollar spent at an event. If a person were to outright buy the points, the price will be multiplied by three, making
  • 24. StrategicBusinessProposal Page 24 of 53 the value at three dollars per point for purchase. The reason for the multiplier is due to revenue loss that can occur if the person buying the points only intends to rank up their loyalty tiers. Opportunities for more revenue occurs when fans go to events and purchase items during their time at the Amway Center. These opportunities are cut when someone just purchases the points. The multiplier is here to help our company break even, or in some cases, profit when these actions are taking place. Product Amway Center Premier is a tier-based, point tracked loyalty program for the Amway Center which hosts diverse theme events targeted to entertainment consumers. This program will be utilized to reap rewards and perks from attending these events, as well as increasing the company’s revenue. This is a mobile app for the most loyal Amway Center attendees which was created in the mind of benefiting the returning customers for numerous events hosted by the venue throughout the year. Our service consists of exclusive benefits for the regular Amway Center’s live show consumers to get the opportunity to invest what they usually spend on tickets, food, merchandise, etc, on digital points that would be collected in our system. These digital points will be called AMPS which stands for “Amway Points.” Moreover, this is a strategy that will increase the Amway Center’s revenue by making their clients keep consuming their products/services and building that emotional connection between them and its customers to then monetize it. The main way that these specific customers can get their benefits is through a list of steps divided by Silver, Gold, and Platinum. For the customers to get to the Silver Section, they need to collect 500 AMPS which implies attending to approximately 3-4 live shows, spending at least $30 on food & beverage, and $50 on merchandise, as well as synchronizing every social media
  • 25. StrategicBusinessProposal Page 25 of 53 platform (Instagram, Facebook, Twitter, Pinterest, and Snapchat) to the Amway’s one, and giving an email address. If they get to this section, it will provide them 1 free merchandise, a 25% ticket discount for next purchase, the exclusive line before the show, and a 15% off coupon for food. For the Gold section (800 AMPS), customers need to post on every social media platform that they synchronized with the hashtag “#amwaycenterpremium,” attend at least 4-5 shows, spend at least $50 on food and beverage, and $75 on merchandise. This section provides an exclusive lunch plus all the items mentioned above. Lastly, for the Platinum section customers need to attend approximately 6 live shows, spend at least $80, and $100 on merchandise, as well as keep posting on social media. This section provides a special BTS tour, as well as all the items mentioned above. These section’s goals will allow customers to get to their respective AMPS and enjoy their benefits. Moreover, since we understand that not every premium member is willing to follow every step to get the AMPS, we have created three packages where they can purchase them directly instead of gaining these points step by step. This section of premium members is the ones that are willing to pay for experience and comfort. After saying this, the first package will have 500 AMPS which would get them to the Silver section (500 AMPS) and they will be able to get all the benefits that this section offers. This first package would cost $199 and would allow them to get 1 free merchandise, a 25% ticket discount for the next purchase, the exclusive line before the show, and a 15% off coupon for food. Besides, when they get to Silver, they have the chance to get to Gold (800 AMPS) for $399. This will not only include all the benefits listed above but also an exclusive lunch completely free at the Amway Center with four extra tickets for guests. Lastly, they have the option to pay $499 to get to Platinum (1,000 AMPS), in which they would get an additional BTS tour that includes a snack a drink as well as a deep exposition about everything that happens
  • 26. StrategicBusinessProposal Page 26 of 53 behind the scene on a show at the Amway Center. This includes the participation of two (2) management representatives and two (2) backstage staff. In order for all this to be managed, our mobile app and the intern system can automatically process every purchase made either at the Box Office or Ticketmaster thanks to the Operation Department that keeps every customer’s history on the track. As mentioned above, we offer these two different ways since this service is specifically offered to the most active consumers of Amway Center that are willing to purchase and get benefited from it. In which at the same time, we are increasing the company's revenue by encouraging people to keep constantly buying our products either by consuming them and getting AMPS, or purchase the AMPS at the Box Office. Distribution The main outlets that we will use to distribute our app are through iOS (which represents App Stores), Google Play, and Box Office & Ticketmaster for ticket sales. According to TechRepublic, to publish an app on the Apple App Store, they charge an annual fee of $99 (TechRepublic, n.d.). We are also distributing it to Google Play which charges a one-time fee of $25 (TechRepublic, n.d.). The mobile app would be found in Apple, Android, Samsung or any other smartphone by using the outlets mentioned above. When customers download the app, as part of their rewards tasks, they have to sign up by giving their full name and email. Furthermore, to distribute the Amway Center Premier app, we would have it as an APK file with a size under 70MG (Google Play, 2019). Amway Center’s Marketing Department would develop a maximum of 4,000 characters' description of the app, as well as taking a maximum of 8 pictures (screenshots) of the app and its features (Google Play, 2019). The pictures would have a
  • 27. StrategicBusinessProposal Page 27 of 53 minimum length for any side of 320 px, and a maximum length for any side of 3840 px (Google play, n.d.). Moreover, when it comes to the tickets, we have two main ways to distribute them; physically and online. According to the Amway Center’s website, the authorized ticket sellers are Box Office and Ticketmaster (Amway Center, 2019). The box Office allows customers to use Amway Center’s parking lot for 15 minutes (except during events), where the audience can buy and obtain physical tickets (Amway Center, 2019). However, if the customers buy tickets from an online source such as Ticketmaster, they get their digital tickets with an activation code that allows them to get inside the venue. This is also a result of Ticketmaster implementing the paperless tickets to their system (Ticketmaster, n.d.). According to their website, “Ticketmaster developed the Paperless Ticket(TM) system as a way for consumers and event presenters to benefit from virtually validated, non-transferable paperless tickets” (Ticketmaster, n.d.). Promotion We would use Direct Marketing such as E-mail Marketing and Newsletters. We would have two booths in the left and right corner of the first floor at the Amway Center that would have signage that says “Sign Up For Premium” and it is one of our tools to get their email. With this strategy, we expect to reach specifically our target market and use it as a way to connect to them. According to SuperOffice, “An email marketing strategy is an important part of any marketing strategy. Email is the most cost-effective way to promote your products, communicate with your customers and reach your business goals” (SuperOffice, 2019). It will be developed by the Amway’s Marketing Department and would have a cost of $0.03 for a single monthly email per
  • 28. StrategicBusinessProposal Page 28 of 53 recipient sent to around 5,000 people, which gives a total of $1,500 per month. According to Web Fx, “Reports show that 82% of marketers spend between 0% and 20% of their marketing budgets on email. However, it’s recommended that you dedicate 16% of your total marketing budget to email marketing” (Web FX, 2019). Moreover, since we will have these two booths in the Amway Center, we will create 10,000 flyers of 5x7 inches every 2 weeks which will have a cost of $750 including design, printing, and shipping (Vistaprint, 2019). We are providing 5,000 flyers to each booth (see Appendix for Flyer example). Also, we are going to create 5,000 bi-fold brochures monthly that will cost $887.50 including design, printing, and shipping (Vistaprint, 2019). Since the brochures include more information than the flyers and are more expensive, we will be giving them to those customers that seem very interested in our service. Monthly between flyers and brochures it would be a total of $2,387. Also, we would use Online Advertisement, starting from social media campaigns specifically on Instagram since that is where our target market is, as well as advertising with Google Ads through their Display Network (banners on several websites) and the search engine ads. We would create one post-campaign on Instagram every month. According to Marketing Hub, “You can expect that you will have to pay somewhere between 20 cents and $2 per click (CPC) on an Instagram campaign. If you prefer to run your ads on a cost per mille (CPM) basis, focusing on impressions, then you are likely to pay around $5 per 1,000 visitors on average” (Marketing Hub, 2019). The Google Ads campaigns will have a budget of $20 per day, which are distributed through both of its advertisement tools. The Display Network will charge from $1 to $2 per impressions according to our campaign settings, and it will show the banners on all of its available sites (Web FX, 2018). On the other hand, the search engine will display the ads according to the
  • 29. StrategicBusinessProposal Page 29 of 53 searches performed with the keywords of interest, and it will charge a similar amount (from $1 to $2) per click on the ad (Web FX, 2018). Furthermore, we would use traditional advertising to promote the Loyalty Program. Our strategy focuses on placing a big vertical banner made of durable waterproof vinyl material with a size of 8’ x 12’ next to the Box Office lines; the cost of the banner with these specifications is $480 (Vistaprint, 2019). The banner invites people to register to the program and quickly tells them how they will benefit from enrolling as a member and start earning points. It will be strategically located next to the lines of the Box Office because that is where people go to buy tickets; Therefore, if they see these benefits before buying the ticket they will consider enrolling just before buying the ticket to start earning right away. Another tactic that we will implement is radio promotion. Although there is not a specified number, Amway Center works with FM 101.9, which is owned by Entercom Communications Corp, to promote their shows including artists, concerts, WWE shows, etc (Radio.com, n.d.). This is a perfect opportunity for us to promote our Loyalty Program by having a person talk about the app and all its features and benefits. According to Husband Radio, this radio station has over 2.5 billion listeners per year (Husband Radio, n.d.). The fact that around 209,000 people are listening to this radio ad, can be positive for us to build awareness and reach more audience. In conclusion, the whole marketing strategy is based on these three promotional categories that work as an integrated campaign where through traditional and online marketing customers will enroll in the program, thus e-mail addresses will be obtained and the direct marketing strategy will come into play by applying email marketing, where promotions will be offered and exclusive access to events will be announced. The three categories complement each other and make the whole campaign work towards bringing customers to enroll in the program and furthermore,
  • 30. StrategicBusinessProposal Page 30 of 53 attracting more customers to the Amway Center events as well as encouraging consumption during the events. Sales Strategy Amway Center Premium’s main goal is to motivate people to keep purchasing tickets and attending to the live shows where they would also consume food, merchandise, etc. By saying this, Amway Center has its own formal sales department called Box Office, through this office the tickets are sold to the public onsite (Amway Center, 2019). Typically, an employee of the Amway Center Box Office is a Customer Service Representative and according to Glassdoor.com, Amway pays them $16 per hour (Glassdoor, 2019). The official authorized third party ticket seller Ticketmaster, who charges a fee of 15% of the ticket price (Medium, 2018). Also, according to Amway Center, “Tickets should always be purchased from an authorized ticket agent, i.e. the Amway Center Box Office or Ticketmaster. Tickets purchased from other sources, including third- party websites and ticket brokers, could be counterfeit or stolen” (Amway Center, 2019). The authorized sources that Amway Center specifies in its website are the Box Office and Ticketmaster, thus, the royalty program focuses on ticket sales from these two (Amway Center, 2019). The sales strategy that will be used is consultative because the two authorized methods are onsite and online. Since this is an exclusive program that offers multiple opportunities for the customers to enjoy live shows, personal lunches, BTS tours, and among others, there should be well-trained and professional sellers that can address every step with the customers. This gives the audience confidence and allows the Amway crew to persuade and convince them to purchase all items from tickets to merchandise, etc.
  • 31. StrategicBusinessProposal Page 31 of 53 When it comes to the expenses, we will set up a 5 hours BTS tour with a capacity for 10 Premium customers per tour. For this exclusive event, there would be needed seven (7) employees which consist of 2 tour guides, 2 for backstage staff, 2 management representatives, and 1 security personnel. In addition, a snack with one soft drink will be provided for each guest, and it will cost the Amway Center $5 each. In conclusion, the employees' cost for the Amway Center, considering they get paid $16 per hour will be $560, added to the snack cost for 10 people gives a total of $610 per tour. On the other hand, there would be an exclusive lunch for the premium customers at one of Amway’s executive rooms, which according to their production guide, has a capacity of 180 people (Amway Center, 2019). According to Amway Center’s production guide, “Orlando Foodservice Partners (d/b/a Levy Restaurants) is the exclusive in-house supplier for all Food & Beverage purposes at the Amway Center” (Amway Center, 2019). Levy Restaurants will charge the Amway Center designated credit card for this event in which the Amway Center will receive an itemized invoice outlining all charges in detail on the event night (Levy, 2019). According to Levy Restaurant’s website, all food and beverage items are subject to a 21% service charge plus applicable 6.5% tax (Levy, 2019). For this event, we would order buttered popcorn, chips and dip assortment, party chicken wing trio, pepperoni pizza, hot dogs, cookie and brownie platter, assortments of beer, non-alcoholic drinks, and 1 bottle of wine which are the most requested menu for the Amway Center suite catering. According to Suite Experience Group, “The typical suite experience buyer will spend anywhere between $75-$150 per person on in-suite catering” (Suite Experience Group, n.d). Since we want this event to be very special for our Premium customers, we are spending $150 per person accepting a maximum of 20 people per month for this event. It will give a total of $3,000 of catering per exclusive lunch.
  • 32. StrategicBusinessProposal Page 32 of 53 Legal Regulations There are no permits or regulations that one must follow in order to create an app. Therefore, this section is non-applicable. Contracts There are a few contracts that we would have to create and amend to do everything that we want in the app. We would have to create a work for hire contract for the tech team that we are outsourcing to create the app and create one for the app as terms and conditions. The ones that we would amend are the contracts that Amway has with Levy Restaurants in order to give discounts as a perk with the app, the basic contract for touring artist when using the venue, to adhere to point system in accordance with their merchandise, the contract that we have with the Orlando Magic and Orlando solar bears to have permission to get points from their games considering both teams have loyalty app and a contract for training with Andy Frain for security purposes for the app holder that have special access lines. Also, to have extra training, Amway will pay a percentage to the hourly fee. Insurance The one insurance that we would definitely need is data breach insurance. Data breaches have recently been becoming a bigger problem for companies in recent years. All data even little data such as names and emails are incredibly important and damaging to lose. According to Verizon, “22 percent of data breaches in 2017 involved the use of stolen credentials” (Verizon,
  • 33. StrategicBusinessProposal Page 33 of 53 2018) Though we are going to have a 24-hour tech team in order to combat any kind of data breach, including data breach insurance in our defense, would be a smart choice. Intellectual Property The Amway Center holds the right to use their logo and name, therefore; we will be using it in our rewards program and there will not be additional intellectual property. 4: Proposal Budget & Projections Sales Projections Financial Excel Sheet is provided apart from this document.
  • 36. StrategicBusinessProposal Page 36 of 53 For our project budget, all costs were formulated based on the average amount of costs associated with each expense in the industry. The grand total required for our project to cover all expenses is rounded to $500,000. Starting with the Marketing expenses, we expect the expenses to slightly grow over time as we begin establishing the reputation of the loyalty program. Direct marketing will be done through emails and newsletters sent to those who sign up for the program. It’s averaged that a business will approximately spend $300-$500 per month for email marketing (WebFx, 2019). With this in mind, we decided to settle for $370 per month on direct marketing,
  • 37. StrategicBusinessProposal Page 37 of 53 giving us a total estimated first-year expense of $4,400. The other expenses for marketing include Traditional Advertising, Online Advertising, Public Relations, and Distribution. Traditional Advertising will be $3420, Online Advertising is listed at $6,500, Public Relations will be $15,000, at $125. Booths and signage will be set to direct customers and familiarize them with the loyalty program inside of the venue. Average costs per print and boards with marketing care estimated at $16 per print, and $5 per custom signage (Lyfe, 2019). We plan to have a low number of print and signage at the booths for the guests, considering that they will be given information about the program at the box office. Online advertising will be done through social media, with an average cost of $4,000 annually to effective run three social media channels (Dephillips, 2019). We plan to use Instagram, Facebook, and Twitter to advertise our program. Due to Amway hosting social media across these platforms, our loyalty program department will provide some financial contributions, but not to a substantial amount as we will be consulting with the marketing department. Public Relations has a one year expense of $15,000 due to the hosting and upfront cost of the website we plan to build. An eCommerce website can average between $5000 to $40,000 to set up depending on the number of products, functions, and features being implemented into our software (Matt, 2019). We placed our estimated cost at $15,000 due to only offering three packages for purchase, profile and account settings pages, as well as integrating our website with the established Amway Center website, to avoid consumer confusion. Lastly, for marketing, our first-year expense for distribution will be at $125, with a $100 yearly expense to follow for years two and three. Due to how much it costs to distribute the app through app stores. Google Play charges a one-time fee of $25, Android is usually free based on the number of microtransactions in the app, and iOS charges a yearly fee of $99 (Mackenzie, 2012).
  • 38. StrategicBusinessProposal Page 38 of 53 Moving on to Employees, the costs were based on the average salary costs for the positions we are staffing here in Orlando, FL. Our group decided to hire 4 employees for Tech Support, and 2 Employees for Human Resources. Amway Center has these departments integrated into the business setting already, so there is no need for hiring a large number of employees for our team specifically. The average salary of a Tech Support Analyst in Orlando, FL is $57,371 (Salary.com, 2019), and the average salary of an HR representative is $58,380 (Forest Time, 2019). Annual pay for a Tech Support employee will be $52,000, and our HR employee will be paid $55,00 annually. These numbers are below average due to having this project/business listed as a newly integrated department in the Amway Center business model. Therefore, the starting salaries of the employees for our department are listed low based on these factors, and the city they are operating in. Equipment costs will be higher in the first year compared to the second and third year due to the costs associated with setting up our office headquarters. The first year will be $55,025, and the second and third year will be $2,600. The computers that our employees will operate are estimated at $500 per business console. We will be needing four computers for our Tech Support employees to work at a rotating schedule for 24-hour support. Four computer chairs from Staples will be needed to comfortably seat our employees, with each chair being $85 (Staples, 2019). We will set aside $425 to cover additional costs for taxes. For our software, we need to pay an upfront cost of $50,000 to craft and build the operating system for our app and website. It is not a yearly cost. Lastly, our Cloud service will be a yearly cost of $2,000 to have our customers data and card information saved securely from VPN and cyber services (Nord, 2019). Lastly, for our professional services and insurance costs, these numbers were projected at a fixed annual cost, based on the amount it costs for General counsel, Secure Socket License, and
  • 39. StrategicBusinessProposal Page 39 of 53 the insurance policies. This number will be $26,545. Our General Counsel will be reporting to us 72 hours per year and will be paid $250 per hour. In general, legal counsel will charge $150-$500, based on the business setting and cases (Lawkick, 2019). The Secure Socket License is needed in order to retain information and make transactions for businesses (Matt, 2019). A yearly cost of $400 will be needed for the organization permitting our license. This is due to an average cost of $10 to $1000 per month, based on the business size. eCommerce websites typically pay a fixed fee at $40 per month on average (Matt, 2019). For our insurance policies, we will be needing the following policies. General Liability Insurance, Professional Liability Insurance, and Cyber Liability insurance. We will be outsourcing these policies from organizations, totaling at a cost of $712.08 per month for insurance (TechInsurance, 2019). 5: Strategy Implementation Timeline & Key Milestones For the Pre-Launch of our loyalty program, it is important to identify and research how the Amway Center works in each department that would involve operations with our loyalty program and which programs will need to be implemented for the success of our service. We will research our target customers and find the best way to market and attract them while utilizing inexpensive advertisements such as; print advertisements, e-mail, and Instagram. The most important part for the Pre-Launch is to identify how will the loyalty program works from the inside by classifying each tier, identifying the number of points each tier will have, establishing which perks will be attained by every point made and the price per point; therefore we will establish which revue streams the program will generate or impact in the company. In any company legal steps need to
  • 40. StrategicBusinessProposal Page 40 of 53 be implanted for every project, and for this loyalty program, we will complete any legal work needed for a successful launch; such as contracts, insurance, regulations, and intellectual property. Our goal for the prelaunch is to have a complete loyalty program that will satisfy the wants of our customers while being attainable to manage with the best customer service and in addition to, we will have a tech support team that will work efficiently to fix any problem the app might encounter in the launch process. After the first year of the loyalty program, we would want to achieve an increase in revenue based on the number of people attracted to the Amway Center due to the perks that the loyalty program will offer. First, we will evaluate the number of customers actively using the program, the type of purchasesthey make and which events the majority attends,with the data obtained by the program and the feedback received by the customers we will adjust and re-evaluate the operations of the programs. Our main goal for the first year is to attract as many costumes to join the rewards program, create awareness among other Amway Center customers and improve and receive as much feedback as possible to perfect the program. For our second year of rewards program, we want to have strong and established loyal customers that will use the rewards program in the long run, increasing attendance and awareness for future customers. We will analyze the total results and feedback of the past two years and make any changes or adjustments to better the product, as well as update it with the latest technology available. Our main goal for the second year is to increase regular attendance from the customers and the increase in revenue. For the third year of the Amway Prime loyalty program we want to have gained a significant amount of users and loyal customers, keeping up with the latest trends in technology and loyalty programs, as well as to evaluate the customer service and content with all the feedback and data collected throughout the platform, without using personal data but algorithms of purchases and
  • 41. StrategicBusinessProposal Page 41 of 53 usage. Our main goal for the third year is to have increased significantly the number of people that attend the Amway Center and increase the number of events they attend per month with perks and additional discounts. Pre-Launch Pre-launch Date/Time Frame Event/Milestone 1 year prior to launch day Marketing Campaign for pre-launch. 10 months prior to launch day Develop logistics and functions of the APP 9 months prior to launch day Create documentation and file legal work 9 months prior to launch day Create loyalty program APP/Website 6-5 months prior to launch day Find ways to make extra revenue Launch Day Launch a successful APP and website Year 1 Year 1 Date/Time Frame Event/Milestone 3 months prior to launch day Marketing campaign for first year 6 months after launch day 50,000 subscribers to loyalty program 8 months after launch day Increase in revenue and attendance by 5% 10 months after launch day Collect data about attendance and patterns 1 year after launch day Collect customer feedback
  • 42. StrategicBusinessProposal Page 42 of 53 Year 2 Year 2 Date/Time Frame Event/Milestone 9 months after launch day Marketing campaign for year 2 1.2 years after launch day 100,000 subscribers to the loyalty program 1.6 years after launch day Introduce new technology into app/payment 2 Years after launch day Increase attendance by 10% Year 3 Year 3 Date/Time Frame Event/Milestone 1.9 years after launch day Marketing campaign for year 3 2.2 years after launch day 200,000 subscribers to the loyalty program 2.6 years after launch day Introduce perks to every tier of the program 3 Years after launch day Increase attendance by 20% 6: Future Plans Long-term Opportunity & Development Plans
  • 43. StrategicBusinessProposal Page 43 of 53 Loyalty programs are one way to stay connected with your audience and build a customer that will want to keep coming back. The main purpose of this loyalty program is to bring customers to the venue, by adding perks and additional benefits to every purchase they make. Our plan for the Amway Center Prime loyalty program is to become more than an APP that tracks points and gives benefits but a place where the customer can enter and find all the information a resource needed to enjoy an event or watch the event throughout the APP. By implementing live streaming thought-out the APP, we can create more ways to generate revenue by engaging audiences outside the venue and advertising to them, as well as bringing more people into the show to create experiences. Technology evolves every day and we want to be a part of it; we will offer different payment methods, ticket purchases, games, community interactions and the latest news in the APP, creating convince, connection and entertainment among customers. (Dunnhumby, 2018). The loyalty program will evolve within the next ten years to adjust to new generations and implement more ways to target different markets and increase attendance, revenue, and technological use. 7: Appendices and References References Abramovich, G. (N.D.). 5 Trends Shaping The Future Of Media And Entertainment. Retrieved From Https://Cmo.Adobe.Com/Articles/2018/6/5-industry-trends-shaping-the-future-of- media-and-entertainment.Html#Gs.7w9hpd. Amway Center - Orlando: Tickets, Schedules, Seating Chart, Directions. (N.D.). Retrieved October 5, 2019, From Https://Www.Ticketmaster.Com/Amway-center-tickets-
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  • 53. StrategicBusinessProposal Page 53 of 53 Appendix 1: Competitive Analysis