The Celebrity Series of Boston is a nonprofit performing arts organization located in Boston. It presents over 100 performances each year across various art forms including music and theater. The organization aims to promote arts education and cultural appreciation through its performances and educational programs. It has a diverse audience of over 22,000 members and partners with 450 community organizations. While it faces competition from other arts organizations and entertainment options, the Celebrity Series of Boston strives to engage audiences and raise awareness of the arts through its wide range of affordable programming.
Sample Marketing Plan.pdfSample Marketing Plan In our co.docx
1. Sample Marketing Plan.pdf
Sample Marketing Plan
In our company, we have a pool of resources in our staff to
draw from. We plan to use our
combined effort to establish a stronger relationship with our
local community and regional
communities by performing and teaching seminars at the
surrounding schools.
Our strategy is based on the concept that:
1. Awareness precedes ticket sales.
2. Quality performances generate repeat purchases.
Mission
The Players Theatre Company was created to bring a higher
level of entertainment to people
from all walks of life. We are dedicated to bringing quality
education, self-growth, self-
confidence and social issues to our public schools by
establishing relationships with communities
and their educational institutions.
MarketingObjectives
Our objective is to increase our audience by at least 50%, to
expand it geographically into other
regions of the state, and to gain more recognition among the
public school districts and other
educational institutions.
2. 1. Increase general audience by 50% (measuredin
ticket sales...currently we have the
capacity to sell 1,200 tickets per month, but on
average we are only selling 80% of that).
2. Set up a tour that includes at least one school
from each district in the state which will
start spring term of 2000 with two performances per
school.
Financial Objectives
Our financial objectives include the following:
• Increase funding by 50%.
• Increase public contribution (both corporate and
individual) by 10%.
• Meet our financial obligations for the fiscal
year of 1999.
Target Markets
We are targeting a general audience that consists of adults,
children, and the elderly with an
interest in entertainment and the arts. We are also targeting
parents of children from the ages of 5
to 17 for the theatre seminars we hold at the schools and at the
after-school care programs.
Another target market for us is educators from all levels of
education. We offer a unique and
valuable experience for their students and themselves with our
performances and seminars.
3. Positioning
For educators and parents alike who value education and
positive experiences, The Players
Theatre Company offers a self-esteem boosting, awareness-
strengthening, and educational
theatrical experience for the children and the educators
involved. Unlike the other companies in
town, we focus our energies on education and self-growth for
our pupils and audiences with
innovative and informative productions and seminars.
Strategy Pyramid
Strategy:
Strengthen our relationship with school districts and other
educational institutions that are our
major supporters in funding and business.
Tactics:
• Sample performances to gain notice.
• Connect with school administration.
• Contact and communication with audience members.
Programs to implement our tactics:
• Provide sample performances of popular texts for
English and otherLiterature classes at
local high schools during the months of September
and October 1999.
• Free performances at the local folk festival in
July 1999.
• Attend school board meetings for the rest of
4. the school year.
• Introduce ourselves to the school district
administration by performing at the
fundraising gala in June.
• For every Sunday matinee, hold a seminar after
the performance for interested
audience members, beginning with the start of the next
showin June 1999.
• Monthly mailings of informational brochures to area
school districts and districts in
othercounties as well, starting June 1999.
• Opening nightafter-performance parties for cast and
audience, inviting reviewers and
otherspecial audience members (ie. School
representatives).
Financials
Right now, we perform three nights a week per a four-week run,
which gives us a net sales (after
production costs of approx. $1,000) of $7,400 per month. We
expect to grow in audience by
50%, which will increase our sales by $4,200 per month.
Break-even Analysis
The fixed costs are based on our monthly budget for a show,
including production and
promotional materials. The Average-Per-Unit revenue is based
on what we receive per person,
per month, i.e. ticket sales and seminar fees. The Average-Per-
5. Unit Variable Cost is based on
how much it costs us per person for each show and seminar.
Funding Forecast
We are expecting sales of $94,500 for the year 2000 based on
current earnings. With the
expected growth of our audience, and in consequence our
reputation, we expect to grow in
audience by 50% and in individual and corporate sponsors by a
total of 40%. The seminars are
expected to grow 30%. The NEA government grant of $10,000
is budgeted over the year, and we
are hoping to receive another grant for the following year.
Expense Forecast
We have minimal fixed costs since a large part of our budget is
based on cost per show. We are
committed to spending $1,000 per show. This includes royalties,
rent of performing space,
printing of programs, posters and flyers, and production
materials (wood, paint, costumes, etc.).
Of that $1,000, we have allotted $80 for paper ads (newspaper,
magazines and sometimes radio),
and $50 for bulletins (posters and flyers). For our free
performances, we usually have a
production in progress so we already have a complete set,
costumes and props to draw from. The
only cost in this case is transportation for the company, rent of
space (if necessary) and food.
This is estimated at $100, taking into account that many of our
free performances occur in parks
with no fees or that we are invited to schools with no rental
fees. The brochure mailings cost of
$500 per month is probably a high estimation, but this program
6. will be focusing on three
different categories of our audience so it is worth it. These fees
are separate from the production
budget.
Marketing Expense Budget
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
Paper ads $840 $924 $1,016 $1,118 $1,230
Bulletins $525 $600 $600 $600 $600
Other $6,000 $6,000 $6,000 $6,000 $6,000
------------ ------------ ------------ ------------ ------------
Total Funding and Marketing
Expenses $7,365 $7,524 $7,616 $7,718 $7,830
Percent of Funding 7.33% 5.05% 4.73% 4.44% 4.17%
Controls
This plan will go into action by June 1999. We want to see our
growth progressing by comparing
our month-end ticket sales with May. We want to connect with
area and other county school
districts, laying the groundwork for a Fall season of touring. We
will discuss and monitor this
growth with quarterly reviews of progress through year one.
Implementation
The following table maps out our milestones for the programs
we want to start implementing in
June. The costs of the monthly mailings and opening night party
are likely to change once they
are implemented and we are able to effectively determine our
7. costs. The programs that end in
September may end earlier if they are successful in promoting
our company and we have no need
to continue them. Most likely we will continue with the
Opening Night party to stay in touch
with the desires and needs of our audience. All of our program
managers are aware of the
following milestones and are already working on
implementation. We are determined to get all
programs running by the first of June.
Milestones
Advertising Start Date End Date Budget Manager
Department
Other $0
Other $0
Total Advertising Budget $0
PR Start Date End Date Budget Manager Department
Sample performances for high school classes
9/1/1999 10/30/1999 $100 Camas PR
Folk festival performance 7/1/1999 7/31/1999 $100
Kate PR
Performance at Fundraising Gala 6/1/1999 6/30/1999
$100 Kate PR
Sunday seminars 6/1/1999 9/1/1999 $150 Mark
PR
Opening Night Party 6/1/1999 9/1/1999 $1,500
Company Board PR
Total PR Budget $1,950
8. Direct Marketing Start Date End Date Budget
Manager Department
Monthly mailings 6/1/1999 9/1/1999 $1,500 Kenne
Direct
Other $0
Total Direct MarketingBudget
$1,500
Web Development Start Date End Date Budget
Manager Department
Other $0
Other $0
Total Web Development Budget
$0
Other Start Date End Date Budget Manager
Department
Attend school board meetings 6/1/1999 12/30/1999
$0 Ceri PR
Other $0
Total Other Budget $0
Totals $3,450
MarketingOrganization
Our marketing organization consists of our board members: Ceri
Gipson, Kate Lord, Mark
Zolun, Kenne Sage, and Camas Davis. We have divided
responsibilities based on skill. We have
weekly meetings to discuss our progress and our budget. All
issues are agreed upon fully before
implementation.
9. Contingency Planning
The worst-case scenario that we have to be prepared for is
losing enough of our sales and
funding that we have no marketing budget. In order to assure
that we continue our marketing
programs, we must establish relationships with local businesses
(like City Copy, newspapers,
Boyett catering) who in exchange for advertising in our
programs and our referrals, we receive
reduced rates or even free services from. This is possible
because we are aware that other theatre
companies have established the same relationships, and we have
already established such a
relationship with a local printing company. This "plan B" will at
least allow us to keep up the
minimum without much cost.
__MACOSX/._Sample Marketing Plan.pdf
Situation Analysis.docx
Situation Analysis of Celebrities Series of Boston
Executive Summary
The value of performing arts is irresistible and immeasurable.
The Celebrity Series of Boston offers art education to its entire
audience. It is making special efforts to promote art, which has
resulting in creating art a special feature of Boston. It presents
art covering several subjects, which also includes Music and
theatre (Celebrity Series of Boston, 2017). It not only promote
10. art for the students but for every age group. It is improving art
insights in society by covering a large scale of audience. The
organization a nonprofit organization that runs through
donations, financial grants, and subscriptions. The organization
has a diverse and large audience, to cover which, it includes
several sorts of art programs as per the interest of its audience.
Basically, it values performing art and art education and
promotes art culture through education and performances in
society.
Situation Analysis
The Celebrity Series of Boston is a performing art presenter
nonprofit organization. This organization is located in Boston.
The organization is committed to present art, for which, it
covers more than 100 performance activities on an annual basis.
The Celebrity Series works a standout amongst the most broad
education and community benefit programs in New England.
The Celebrity Series edification and communal program, Arts
for All! has developed from a little, school-based ticket
giveaway program contacting 200 individuals a year to an
imaginative effort program coming to more than 22,000 people
every year with a series of residency programs, master classes,
workshops and intelligent shows for the families, students,
seniors, and uncommon need groups. The Celebrity Series
works with more than 450 community-based associations. The
Celebrity Series - through Arts for All! - guarantees that its
crowd is ethnically differing and incorporates individuals from
all age gatherings and financial foundations (Celebrity Series of
Boston, 2017).
Market Summary
The organization in performing arts and cultural market. there is
a rapid growth in market after the program, “Arts for All”. It
has more than 22, 000 members every year, who participate in
its different programs. It encourages a diverse range of
population to become a part of Celebrity Series of Boston’s
beneficial programs.
Audience Demographics
11. The organization does not give much importance to targeting
some specific demographics, rather it makes efforts to pursue
the genre affinity. The average age for its Patrons is 56 years.
However, there is no limit of age or race to join the
organization and its programs. The audience has common
interest which is “Performance Arts”. On the other hand, the
price point is high enough to suggest an older patron, but the
organization does not exclude the other impending groups from
its plans. So, the main demographics of the audience include;
those who value the arts, belong different age groups, have their
background related to arts, and are qualified. Thus, it focuses
more on the behavior of buyers rather than their demographics.
Market Behaviors
The behavior of market is based on loyalty. For example, there
is a high chance of those customers, who already like the
performances at Celebrity Series of Boston. This is the reason
that every month, the number of members is increasing over
200. The market is based on audience for the live performances,
which consists of schools, educational centers, and other areas,
where Celebrity Series is trying hard to make the art education
available.
Market Needs
The market needs are the wide range of performances. It covers
several subjects related to arts, which are indeed important for
arts education. Sometimes, the performances also recreate the
traditional scenes and perform them in a new way to educate
people about traditional plays and theater. The major aim of
Celebrity Series is to engage the audience through the arts and
raise their insights about arts in a general culture.
Market Trends
New trends include educating people about modern form of arts
that include both aural and visual art, presenting important
social issues, historical issues, and literature through art
performances, and being diverse in presentation. The benefit of
these steps are that more and more people are becoming inspired
and joining the Celebrity Series of Boston.
12. Market Growth
The market growth is estimated by 50 % for the upcoming two
years. It will be expanded through introducing new programs
and more marketing. This is why, the organization sends up to
50, 000 emails currently in its email marketing campaign.
However, it plans to expand the list as the growth is mainly
dependent on how well the organization markets its programs.
SWOT Analysis
Following is the analysis of Strengths, Weaknesses,
Opportunities, and Threats of Celebrity Series of Boston;
Strengths
The major strength of Celebrity Series is that it has multiple
sources of revenue.
Provides variety in performance as well as in choice of artists.
The subscription model is quite flexible.
It makes the efficient use of available resources like finance and
staff.
It has a cooperative work environment.
It is covering a large scale of audience.
Weaknesses
It has limited financial resources.
It has limited range of Personnel, which is likely to affect the
organization’s growth in peak season.
Opportunities
The Celebrity Series of Boston has the option to engage the
audience with new sort of marketing other than emails and
current firms that it practices,
It can offer live theater of its own.
It can get letter of recommendation for the schools from local
school districts of Boston.
It can introduce new subscription plan, including discounts to
attract new subscribers.
It can include more Hollywood actors to capture the attention of
targeted audience.
Threats
The competitors like Hollywood movies, Red Sox, the Handel,
13. Haydn Society, and other forms of entertainment are giving a
tough time to the organization.
It has a very complex genre and matrix, which is hard to modify
or innovate.
Since it is a nonprofit organization, and has to run on
subscriptions and findings, but does not get as much as grant
from the governments.
Competitors
There are a large number of competitors of the organization. For
instance, nonprofit performing theaters, for-profit performing
theaters and performance art organizations, Haydn society,
Hollywood movies, and other organizations existing in similar
genre. For its Orchestra performance, the major competitor is
“The Boston Symphony Orchestra.” They are offering weekly
programs but the Celebrity Series of Boston only offers
programs at a certain time, which makes it irregular as
compared to them the “The Boston Symphony Orchestra.” Its
major competition is with patron’s time instead of choosing
artists like other competitors do. The other comparable
competitors are; Washington Performing Arts (Washington,
D.C.), San Francisco Performances, University Musical Society
(Ann Arbor, MI), and World Music.
Cost Effectiveness
The paid capacity of the Celebrity Series of Boston is limited
because of the limited financial resources. It cannot even hire
more personnel at the moment because of its limited financial
resources. This is why, it only has 23 full time and 4 part time
staff with numerous freelance, project-based contractors. The
return on investment differs by performance of its own. For
example, the organization sells between 40 % to 45 % of its
total tickets via subscription and the rest of the tickets are sold
via single ticket marketing. However, it often has many shows
that sell almost entirely to subscribers or, conversely, almost
entirely to the single ticket buyers. The organization is
practicing cost effectives in its budget spending as its budget
varies per year and per season, which is depending on
14. programming. On the other hand, the performance advertising is
normally between $ 500-600k per season with a budget of
roughly $ 500k to run the department. Individual performance
advertising budgets run from $ 2,500 to $ 160,000.
Institutional Marketing Events
Currently, the organization has uploaded its marketing events
for the year 2017- 18, staring from September 2017 to June
2018. The events are institutionalized at different venues like;
Symphony Hall, NEC's Jordan Hall, Sanders Theatre, Boch
Center Wang Theatre, Boch Center Shubert Theatre, Berklee
Performance Center, Longy’s Pickman Hall, and 160 Mass Ave.
It had two events for the month of September 2017. Now, it has
8 events in October, 7 events in November, 5 events in
December, 3 events in January, 8 events in February, 11 events
in March, 12 events in April, 6 events in May, and 7 events in
June 2018 (Celebrity Series, 2017).
Critical Issues
The critical issue that the organization is currently going
through is the lack of financial resources. Even though, it has a
wide range of supporters, but to compete with the other
organizations, it needs to expand its audience and attract them.
For which, it has to work with many celebrities and different
programs. The other issue is the lack of personnel, because of
which, it becomes difficult for the organization to plan events at
the sport or arrange regular events. There are many other
organizations that are arranging events in regular basis, or
weekly basis, but the Celebrity Series of Boston is unable to
take this step because of its limited personnel. The organization
also has different budget plans for peak and normal season,
which shows that it cannot spend well in off season if any
creation of sudden event in needed. It should review its profile
of events and bring more variety in to attract people. Also, it
should be looking for further donations and grants to run the
organization in a smooth manner.
Conclusion
To sum it up, the organization, “Celebrity Series of Boston” fits
15. into a local art scene as it promotes arts all through the Boston.
It is making appreciable efforts to educate more and more
people about arts, which also includes schools. With the efforts
of the Celebrity Series of Boston, art has become a specialty of
Boston and people have started taking special interest in arts.
The unique feature of Celebrity Series of including every sort of
live art performance with the inclusion of celebrities is
something that gives it a distinction among many other
performing arts based organizations. If the organization is
granted with more financial resources, it can develop and
expand in a more progressive way.
__MACOSX/._Situation Analysis.docx
Insturction 003.docx
Organizational Marketing Plan
The final paper will be a Marketing Plan – the recommendations
of what you implement if you were the Marketing Director of
the organization( Celebrities Series of Boston) . This is the
second half of what you began with the Midterm focusing on
what you would do. This paper should be five to six pages.
Organization Name: Celebrities Series of Boston
Web: http://www.celebrityseries.org/
The midterm paper( situation analysis ) and sample Marketing
plan is in the attachment.
Here is a framework for you to think about:
Overall Marketing Strategy (or, Executive Summary)
16. Mission of Org
Marketing Objectives
Financial Objectives (these should be related to your Marketing
Objectives – results)
For each Target Audience Do this:
Overall Strategy for Specific Target Market
Target Markets (brief Buyer Personas)
Positioning Messaging (for segment/Buyer Persona)
Tactics
Marketing Programs to Implement Tactics
Financials (this is in your sample, since you probably don’t
have access to this, you don’t need to include it).
Marketing Expense Budget (again, you won’t have specific
costs, but should have a list of resources and expected areas
where you would need to spend money)
Evaluation (how you will evaluate success beyond Financials)
For Entire Strategy (broken down by Target Audience and
Tactic)
Implementation Timeline
Milestones
Current Marketing Staff
Additional Marketing Research Areas (this should not prevent
you from having a plan or from completing the other sections –
this is more of what your organization needs to know more
about)
Contingency Planning (what you do if this doesn’t work - Plan
B – Normally, you would have to do this, but like Financials, I
want you to focus on the Strategy, Tactics, and Marketing
Programs).
__MACOSX/._Insturction 003.docx
17. HuStream Technologies Interactive Video . -49
Page2 9B14E008
university and college clients were able to provide customized
buttons on their schools' websites that
students could use to receive a tailored experience; students
with a short attention span could receive a
broader and shorter experience within 45 seconds. HuStream
had developed this metric from its initial
customers and knew it was a key success factor.
HuStream was a hub for video production, providing high-
quality video production services for clients
through an in-house studio equipped with top-performing
camera equipment HuStream believed that
producing quality video should be inexpensive, which is why it
provided cost-effective options for the
production of their customers' video content. Using a team of
skilled professionals, HuStream produced
quality video services at an affordable cost:
We have a proven process to video production that is guaranteed
to be smoother and more
efficient then you probably think. We begin with Scope and
Discovery where we establish needs,
goals, timing, at]d budget. Once the plan for the video is laid
out, we work with you to ensure the
video messaging is aligned with your marketing and goals.
When we are all confident that the
Pre-Production is tight we let the cameras roll. Regardless of
where and how the footage is shot,
our Production team is world class and will absolutely ensure
that the capture is top shelf. Your
project then moves on to Post Production where the footage is
18. edited and visuals and graphics are
added. Finally, your video is ready for Launch and we work
very closely with you on an effective
launch strategy to maximize traffic to your video and make sure
it gets seen! 1
HuStream produced a wide variety of video content. Since video
conveyed a quick information transfer,
the market for interactive video content was potentially vast,
which Jed to HuStream offering many
different types of video production services to attract a varying
customer base, including promotions and
advertising, corporate videos, software demonstrations,
commercials and YouTube, student recruitment,
instructional and training, guided selling with calls to action,
self-help and FAQs (frequently asked
questions) and customer testimonials. Peter Matejcek believed
the current HuStream revenue represented
a small portion of the untapped market in interactive content,
but that combining HuStream's current
skills with new emerging business models would enable
HuStream to expand and diversify in any
direction identified as profitable.
Due to HuStream's philosophy and commitment to quality, and
despite its short time in business, the firm
had already worked with some prestigious clients, securing such
well-established, global companies as
Microsoft and Intel, in addition to many educational institutions
in the firm's local region of Kelowna,
British Columbia, Canada. Working with companies with the
calibre of Microsoft and Intel had given
HuStream credibility, enabling the company to expand
production more rapidly. In the future, quickly
increasing HuStream's production ability and services-based
business platform would create a large
19. capital requirement, which would make it difficult to expand
quickly and capture market share. The
company needed to be able to better manage its ability to secure
capital, which HuStream had little
experience with. Its business model had thus far been based on
customer revenue and required only small
investments from the founders.
Within HuStream's services-based model, most processes
involved in reaching the final product were
performed entirely as a service to the customer, and hence were
charged to the customer. This business
model provided clients with a guided solution through which
both the creation process and the end
products were well managed and suited to the customers'
willingness to pay. In this way, HuStream
provided a product through the use of its SDK (software
development kit) platform and services. Since
1 Hustream - Video Production, website landing page, Click on
"Video is changing everything· play button,
www.hustream.com/, accessed April 10, 2014.
'SO Integrated Perspectives
Page3 9814E008
the co-founders wanted to expand their operations more rapidly,
they needed to productize their solution
to reach a larger section of the market, which, in tum, would
multiply their success exponentially.
To expand and increase revenues, HuStream needed to more
effectively manage its operations to serve
20. more clients at one time. Since HuStream was a small company,
consisting of seven employees,
producing a higher volume of videos would challenge its ability
to deliver until it was able to expand.
Expansion of a services-based business would require both
financial and time commitments. HuStream
would need capital investments for personnel in sales,
production, customer support, account
management, operations, project management and development.
There would also be costs related to
physical offices and production space. In a market where
gaining first-mover advantage was crucial,
investing time and money into expansion would hold the
business back in terms of its future
development. Clients wanted their products developed rapidly;
high-calibre clients were unwilling to wait
for the construction of a new video production facility, which
HuStream might need to build to meet
increased demand. 13ut productizing its services-based business
model would enable a swift distribution
of services over a larger, more diverse range of clientele. How
would HuStream balance these forces of
building versus executing?
HuStream's overall video output totalled more than 300 videos,
which worked out to an average output of
75 videos per year without considering the learning curve faced
in the early years, just after the company
was founded. Thus, in the future, the average video production
would arguably be higher than 75
completed videos per year. Company growth over the past year
would be an influencing factor to consider
when determining productivity going forward. The overall
suggestion was that HuStream should grow
steadily.
21. HuStream's growth in production services, production facilities
and highly trained professionals that
made the company operate smoothly would increase pressure on
maintaining the high quality of account
management deliverables. HuStream was committed to
delivering exceptional products and services in a
timely fashion, which was always a crucial asset to the
company; however, in a time crunch, foregoing its
commitment to quality would not be an option. HuStream was
uncertain whether developing fully
productized solutions of products and services as technical
advisers urged would replace the need for
high-quality account management. The Matejcek's consider
account management critical but advisors are
offering a different opinion. These two counter-balancing forces
need to be considered.
Given HuStream's SDK platform and easy-to-use interface,
would the company continue to be able to
reach customers who had a less critical need for high-touch
account management? Developing this kind
of functional interface and platform would take time. HuStream'
s management and development team
estimated the creation of this leading-edge platform and
interface would take three years. The user
experience would provide a unique competitive advantage, by
enabling clients to feel as if they were
having an intimate one-on-one relationship with the website. As
Lawrence and her team analyzed the
current situation, they looked at HuStream's current business
offerings and contemplated the most
plausible approaches to manage the shift in business that could
bring the company greater financial
success.
MANAGEMENT TEAM
22. HuStream employed seven people in various management roles
and responsibilities. Peter and Amy
Matejcek had co-founded the business in October 2008, as a
producer of content for educational training.
They had grown the company to its current state and knew it
well. Peter Matejcek held the CEO position
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•
1-iuStream Technologies Interactive Video 51
-----------·--···----------------------------------·--·-··-----····----·--
····-·····-·-·
Page4 9814E008
and was responsible for sales, business development and the
office setup. He lead all sales efforts and
realized his limited capacity for the multiple roles but he did
them better than anyone they had tried in
these positions. Amy Matejcek held the COO position and
brought her deep skills in content creation,
marketing and account management.
HuStream was a lean company with a few key employees,
starting with Jon, the developer and tech
support; Reid in client services; and the creative team led by
Jordy and his sub-team. Marketin~
responsibilities were contracted out to local marketing firms.
The company had recently spent $10,000
on a marketing strategy, but it had not successfully convert
viewers to new customers.
23. Their headquarters situated in Kelowna, BC, Canada, held and
offices were set up in several Canadian
cities to service customers across Canada and the United States.
HuStream's video production process
streamlined customers' videos and made them flexible to align
with their marketing and goals. This
process started with ~cope and Discovery, which identified the
customer's needs, goals, timing and
budget, and progressed to the Shoot and Post Production steps,
which ensured top-class editing, visuals
and graphics. Finally the process maximized traffic to the video
through an effective launch strategy. The
founders recognized that they lacked a production team to
produce material and content for the videos,
although they had good contacts and relationships with people
in local markets who produced good-
quality content and videos, and who were readily available
under contract in the future.
DEVELOPMENT AND NEW ARCHITECTURE
Technology development, conducted by Jon, HuStream's lone
developer, was built using an architecture
of java, PHP (PHP: Hypertext Preprocessor), HTML (HyperText
Markup Language), Windows-based
servers and secured with SSL encryption for account and
password security. The SDK platform that
customers purchased for their own use created a toolkit, which
could be resold to give clients the ability
to edit their own content and create interactive pages in a secure
environment. Although the technical
people urged HuStream to build out this capability quickly, the
Matejceks were uncertain how their
custom-tailored services were consistent with that kind of
productized toolkit. The toolkit operated
24. through a web-based browser providing cloud-platform access
from anywhere in the world.
In addition to the development platform, Jon, the developer,
chose web services as a foundational
technology. Web services architecture was a technology that
created dynamic systems-based business
models around usable and adaptable user experiences. This
technology, which provided interoperable
digital objects, such as streaming video, had grown and
developed over the past few years, and ensured
HuStream had a strong foundation for its technology
development processes. Recently, experts had
promoted the use of standardized back ends and flexible front
ends for architectures and business
models. 3 The web services architecture described the principles
for creating dynamic, loosely coupled
systems based on services that could be delivered on multiple
platforms.
BUSINESS CRITERIA
The business criteria for HuStream's success included the
typical business model metrics of profitability,
increasing sales, creating a unique value proposition for
customers, reducing the budget and creating
i All currency amounts are shown in Ganadian dollars unless
otherwise indicated.
3 Henry Chesbrough, Open Services Innovation: Rethinking
Your Business to Grow and Compete in a New Era. Jossey-
Bass, A Wiley Imprint San Francisco. 2011. Figure 2.1.
------ --- -----
.... . .
25. 5 2 Integrated Perspectives
Page5 9B14E008
sound management structure. The Matejcek's had also identified
several unique criteria for success based
on their experiences with prior customers: lots of video content,
a competitive industry, the need to be on
the leading edge and the need to interact with people. These
critical criteria had led to customers who
were ready to pay for interactive content and platform tools.
STRATEGIC BALANCE
HuStream had developed its services-based business model over
many years and had recently engaged'
technology experts who suggested the company make its
business models into more of a products-based
model, which might be turned out in mass scale with little
customization. The Matejceks considered how
"productization" would work and how to balance this new model
with their historical competitive
advantage, which had been built by creating customized
services-based videos. Amy Matejcek hesitated
to leave this lucrative customization segment but wanted to
balance it with the idea of creating packages
of products, solutions and services that could complement
HuStream's existing customized products.
How would the company's new strategy adjust to reflect this
balance among products, solutions and
services in the right combination? And what would change in
the strategic balance going forward?
26. INDUSTRIES
In addition to balancing the roadmap of products and services,
the HuStream co-founders needed to
consider which industries would make a good tit for its
offerings and, consequently, how profitable those
industries would be.
Interactive content seemed to be the next big development in
online video where video "producers can
build direct relationships with their customers" (slide 40) 4
bypassing existing channels and creating new
markets. In addition, the video game market represents a US$93
billion market in 2013, according to
Gartner Research 5 to which HuStream's interactive buttons
could offer customized user experiences for
messaging to users. Given that Internet users were drawn to
interactive features, this influence caught the
eye of many big-name companies, such as Microsoft, Intel and
Lenovo, along with more than 40 other
customers. Using interactive material gave customers a
competitive edge that could benefit their products'
appeal and propel HuStream's customers' business overall.
Lawrence arrived at the office on Wednesday morning and
prepared to meet her team to discuss potential
vertical opportunities that HuStream could take advantage of.
Given this company's untapped market
potential, the team had already decided that HuStream's
pressing issue was to develop a sustainable
business model to encourage the growth of the company. In
anticipation of the meeting, Lawrence had
prepared some analyses of industries that HuStream could
potentially enter.
Lawrence's team knew numerous potential solutions could lead
27. to HuStream's success; however, Peter
Matejcek could focus on only a few potential industries for
sales and business development. He was a
good salesperson but he could work on these areas for only so
many hours in the day, as he also needed to
cover all his other many roles and responsibilities. As a result,
Lawrence and her team would need to
identify the three best industries.
4 Mark Suster, 'Building an /ntemet Based Video Company,·
@msuster. upfront resources, September 2013,
www.slideshare.net/msuster/on/ine-video-market-sept-2013,
accessed April 10, 2014.
5 Gartner, Inc., 'Gartner Says Worldwide Video Game Market to
Total $93 Billion in 2013, • press re/ease, October 29, 2013,
www.garlner.com/newsroom/id/2614915, accessed March 30,
2014.
[
Hl.lStream Technologies Interactive Video · S 3
Page6 9814E008
Lawrence met with her team to discuss potential ideas for
industries that would give HuStream the
greatest ability for increasing revenue generation. Which
distribution channel and marketing strategy
could best complement these industry choices for the fastest
success rate? Which of these industries
would respond best to productized or services-based solutions?
Lawrence and her team created an
extensive list of potential markets to generate increased profits,
including entertainment, instructional
28. videos, tourism, sports media, recruiting, education, retail,
automobile (either repairs or retail) and many
others.
Entertainment
A particular vertical of interest to Lawrence and her consulting
team was the entertainment industry. As a
result of the North American public's excessive interest in
popular culture, an immense untapped market
existed for producing eptertainment- and information-based
online video content. Media outlets such as
CTV (Canadian Television), CBC (Canadian Broadcasting
Corporation), Rogers and Global had been
providing a constant stream of online content to their viewers
long before the larger boom of online
Internet content. Through discussions and market research, the
consulting team returned to the potential
for interactive video in the entertainment industry.
The entertainment industry had undergone many changes since
the early 2000s. The team noted that, in
terms of-detailed content, users of media sites had high
demands, which were increasing quickly. Broadly
speaking, the onset of these changes had begun with the DVD
industry, which had quickly expanded
video content in the entertainment industry by providing people
around the world with affordable, digital-
quality movies and television shows.6 Experts in the
entertainment industry reported that thi~ trend was
the beginning of increased expectations around entertainment
products and services.
When streaming technology was introduced in 2007, a major
pivot occurred in the presentation of
entertainment content. "Streaming really exploded around the
29. year 2010," commented Adam Leipzig, a
media specialist. "We shifted from a commodity economy of
entertainment, where we had to own CDs,
DVDs and so on, into a pure experience economy." 7 This shift
created a bridge between television and the
Internet, providing viewers with an array of online content at
their fingertips. The pivot shifted from
product-based markets where consumers owned CDs, DVDs and
the hardware to play them, to a services-
based market where the content and players were embedded in
laptops, desktops and mobile devices.
Web services architecture was poised to have a profound effect
on the entertainment industry and its
supporting platforms. W3C, the leading worldwide Internet
consortium and founder of the URL (uniform
resource locator) addressing system, promoted the ability of
these foundational web services capabilities
and platforms to give rise to new web-based business models
wrapping varying combinations into
products and services to satisfy customers' needs. 8
As a result of viewers shifting their consumption patterns,
online content exposure powered by web
services seemed to be a foundational platform. As the team
thought it through, viewers could access an
array of constant online content, such as television, movies,
sports and news. The way that a business
framed its delivery of online content could maintain or gain a
competitive edge since customers required a
balance of visually pleasing elements and technical
functionality. At this time, these digital landscapes
held increasingly influential roles in the success of a business.
Because of HuStream's ability to create
6 Paul Sai,Wrs, 'How Technology Is Changing the
Entertainment Industry, According to Adam Leipzig,· blog post,
30. September
19, 2013, http:llthenextweb.comlinsider/2013/09/19/adam-
leipzig/#!y19gz, accessed March 30, 2014.
7 Ibid.
8 W3C, ·web Services Architecture: W3C Working Group Note
11 February 2004, February 11, 2004,
http://www.w3.org/TR/ws-archl, accessed March 30, 2014.
' $ 'B
. 5~· Integrated Perspectives
Page7 9B14E008
interactive content for an array of business concepts, the
consulting team clearly identified that one of the
potentially best industries for HuStream would be creating
interactive shows and media content.
'Suppose viewers could go to a web-based platform and receive
updates directly from their favourite
characters or the show of their choice? Lawrence's team
considered this possibility, as many people
would likely be drawn to such content. Viewers would feel as
though they were receiving a first-hand,
customized experience with each click, which would reduce the
perceived distance between themselves
and their favourite celebrities.
As an example, such popular CTV shows as Big Bang Theory
and Big Brother Canada could produce
video and website clips that used interactive buttons to offer
alternative viewing experiences and
additional products for sale. "Dim the lights, hook up your
31. player to a 50" TV with surround sound, and
you could at least get close to pretending you were enjoying a
theatrical experience."9 Imagine that
experience with added HuStream interactive content and
toolkits through which shows could be perused.
Another program that could benefit from interactive content was
Hockey Night in Canada. As Peter
Matejcek mused aloud, "I know my boys love hockey and
having their favourite player talk directly to
them would be a huge selling point for them." Marshal Redrick,
a marketing expert on Lawrence's team,
expressed interest in hockey and how interactive content
directed toward dedicated fans might have a
substantial impact on consumers in this area. 10 Hockey Night
in Canada, owned by CBC, was the longest
running television broadcasting program in Canadian history.
Considering the dense market of hockey
fans in Canada, which was greater than in any other country in
the world, Redrick argued that this avenue
might generate major revenue for HuStream.
However, the broadcasting industry could change dramatically
over the next few years. In fact, CBC had
recently lost its rights to hockey broadcasting in Canada to
Rogers TV, a broadcasting giant in its own
right, which, for $5.2 billion had landed a 12-year contract for
exclusive TV and digital rights to
broadcast all Canadian national hockey games, including the
national hockey league (N}U,). Avid hockey
viewers from across Canada were shocked at the possible loss of
the beloved CBC broadcast of Hockey
Night in Canada.
Even NHL commissioner Gary Bettman recognized the need for
collaboration to deliver content to
32. viewers through varying avenues: "We wanted a relationship
where we and our partner would have the
flexibility to move among platforms because people,
particularly of varying ages, are consuming their
entertainment differently than they ever did before and
differently by age." 11 As technologies developed,
the league "may be looking at things in the course of this deal
that don't currently exist," Bettman
continued. Viewers, likely paying for the extra privilege, would
be able to access specific content on the
devices of their choosing.
No one was certain what the media industry would look like
within the next few years but these changes
in hockey broadcasting resonated well with HuStream's business
offerings and suggested that interactive
content might be a major influence on broadcasting; however,
the Matejceks were not well experienced
with gaining access to these types of large broadcast customers.
8 Paul Sawers, "How Technology Is Changing the Entertainment
Industry, According to Adam Leipzig,· blog post, September
19, 2013, bttp:/lthenextweb.cornlinsider/'2013/09/19/adam-
leipzig/#!y19gz, accessed March 30, 2014.
10 Simon Houp~ "A New Chapter for Iconic Brand Hockey
Night in Canada." Globe and Mail, November 26, 2013,
www.theglobeandmail.com!news/nationaVa-new-chapter..for-
iconic-brand-hockey-night-in-canadalarticle15625191/,
accessed March 30, 2014.
11 Ibid.
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HuStream Technologies Interactive Video 1 55 -----.------------·-
33. -----
Pages 9814E008
Do-It-Yourself (DIV)
As the team explored other options and analyzed global industry
trends regarding market share and
market size, team member Lily Newman, who had some
experience in hotel maintenance, raised the
potential use of videos for repair advice. ·
The multibillion-dollar do-it-yourself (DIY) industry had seen
steady growth in the past few years.
Recession-driven financial caution had given rise to the global
DIY culture along with the widespread
availability of easy-to-install products that required some
assembly. Currently worth US$678 billion, the
global DIY industry was expected to continue to grow to be
worth US$716.2 billion by 2015. 12 The
rapidly increasing number of products and services, including
websites, television programs, books and
tools focused specifically on optimizing DIY tasks, was on the
rise, fuelling the growth of the industry
and the potential for development of interactive video content.
The DIY industry provided a multitude of
existing content, which ~ould reduce the necessary capital
investment for HuStream. A significant factor
that resonated within the market was the home improvement
segment ofDIY.
The home improvement segment alone contributed significantly
to the DIY industry overall. With major
players in Canada such as RONA, Home Hardware, Canadian
Tire and Home Depot, the expansion
options into this market were huge. Cost-wary individuals were
34. spending their time and money to
improve the value of their home and property to maintain their
commercial value. As a result, they were
increasing their use of DIY tools and mechanisms, which had
led to noticeable growth in the DIY market
and could provide a niche for HuStream to satisfy.
Education
The education industry had proved to be HuStream's most
responsive and lucrative industry. The
company had secured IO universities and colleges as some of
their first customers and had continued to
generate sales leads every day. In fact, Peter Matejcek had lined
up the University of Michigan for a sales
call later that day, after a meeting with the consulting teams.
The educational institutions already had video content and often
had their own internal television and
radio studio production capabilities. As well, these
postsecondary schools were communicating with
potential students who sought interactive conversations with
admissions staff and were eager to have
virtual tours. Current and soon to be graduating students also
needed to differentiate themselves from
other students with experience that would stand out on their
resumes, perhaps by using interactive content
button which others would not have. The education sector
seemed to represent a ripe and rewarding
industry for HuStream.
Using HuStream's capabilities, schools' existing video content
could be shaped into interactive content,
which would create a competitive advantage differentiating
these schools from others that provided
traditional video and written content. Moving to interactive
35. content could increase traffic to an
institution's website, which would in tum increase the positive
image of the school and ultimately
increase enrollment. Students selected schools based on
numerous factors, including the school's distance
from home and its scholarships, prestige, image and support
network. The support network of a school
undoubtedly included the administration and faculty; yet, the
school's website was also a secondary
12 Global Industry Analysts, Inc., "Global Market for DIY and
Home Improvement to Reach US$716.2 Billion by 2015,
According to New Report by Global Industry Analysts, Inc.,·
press release, PRWeb Online Visibility from Vocus, January 30,
2012, · www.prweb.
comlreleasesldo_it_yourself_DIY/home_improvement_productsl
prweb9136735.htm, accessed March 30,
2014.
•
56 Integrated Perspectives ------------·---------
Page9 9814E008
consideration. The school's website included supporting tools to
help students find the infonnation they
were searching for, but poorly designed and complex websites
could frustrate and discourage new and
potential students. Interactive content on a services-based
platfonn could increase the conversion from
traffic to new customers.
Universities, colleges and other institutions almost always had
36. existing video content, which reduced the
capital investment required to produce high-quality content.
They would also not require in-house
production facilities to be provided by HuStream, as their
current content and campus infrastructure could
be used to satisfy this need.
Other
Among the many other industries considered by the consulting
team were automotive, hospitality and
tourism, real estate, advertising, landscaping, athletics and
sports, oil and gas, employee training,
weddings, computer software, casinos, online dating and other
generic marketing and training activities,
including vlogging (video blogging) and online tutorials. Driven
by factors similar to the DIY segment,
the automotive industry generated considerable demands for
solutions for both customers and
manufacturers. Customers were interested in automotive repair,
maintenance and improvement, whereas
manufacturers were interested in solutions for automotive
advertising, sales, manuals and maintenance.
This market would continue to generate demand for solutions
because of such supporting factors as
increases in the global number of cars on the road, the longer
average life of vehicles and the general wear
and tear of parts and accessories.
Lawn, garden and landscaping also provided lucrative
opportunities for interactive solutions.
Homeowners and small business owners were always looking
for ways to stretch every dollar, including
by reducing their dependence on professional landscaping
services.
37. Hospitality and tourism provided an abundance of avenues. The
needs in this segment included features
directed toward municipalities and their marketing strategies to
promote their cities. This segment could
also be directed toward travel agencies, such as Expedia and
their online service models. Cruise ship
promotion was also considered because a personal virtual tour
could be offered through interactive video.
Other generic uses not defined to a specific industry included a
wide range of marketing and training
activities. Advertising and marketing agencies could also use
interactive videos as a tool to help their
customers improve their marketing and promotion efforts by
providing them with a competitive
advantage.
PARTNERS
As Lawrence considered what the Matejceks would do, she
realized they needed partners for this business
to be successful. But what partners would have the best fit, and
at what points would they be integrate
into HuStream's business model? The systems thinking
community was promoting the use of ecosystems
for collaborators, partners, third-party content and other
providers necessary for the installation and
implementation of technology .13 Balancing the services-based
and the product-based company proved a
'--
13 Henry Chesbrough, Open Services Innovation: Rethinking
Your Business to Grow and Compete in a New Era, Jossey-
Bass, A Wiley Imprint. San Francisco, 2011, Chapter 2, Figure
2.2 Open Services Value Chain, p. 35.
38. ---~--------------------------------
H_u_St_re_a_m_T_ec_hn_o_lo_g_ie_s_1n_t_e_ra_ct_iv_e_Vi_
1de_o_--l/1f l~f
Page 10 9B14E008
difficult task. The problem was there was no predetermined
process for creating the balance that
HuStream needed.
BUSINESS MODEL
Lawrence began to contemplate how to generate revenue
through the entertainment option. Of all the
options the team had explored, it had considered only the most
potentially lucrative industries. In the
entertainment segment, the pricing strategy would be based on a
per-episode fee and any additional
maintenance fees that may apply.
When considering the DIY segment, the team proposed a per
video profit model. As with the
entertainment option, the prices at increasing volumes would be
negotiated downward. The team
considered the various types of DIY videos. Education appeared
to be a very lucrative industry, and some
schools might be pric'e-insensitive, such that HuStream could
consider how to detect price flexibility.
HuStream's customers generally wanted affordable solutions,
which required an operational budget that
was as tight as possible. With these new industries, the
profitability potential would grow, and
Lawrence's team needed to propose the business model
39. profitability to the Matejceks. Funding for any
major initiatives would also need to be considered. ·
DECISIONS
As Lawrence sat contemplating the recommendations her team
would make, she considered which
industries were the best options, and how the Matejceks would
make money by scaling this business.
Lawrence and her team needed to present clear value
propositions for both customers and users within
these industries, such that the Matejceks could articulate the
strength of their tools and services to their
potential customers. Lawrence's team would need to identify
additional personnel, architecture changes
and functionality that they might need and how those costs
would impact the budget. The outlook seemed
to be a combination of products and services development; just
productizing would not likely meet what
the Matejceks had in mind, so they needed to carefully consider
how much of each type of work they did.
Clearly, the user experience in each of these areas would be an
important part of that decision.
.:i.· ..
HuStream Technologies Interactive Video
Page 10 9B14E008
difficult task. The problem was there was no predetermined
process for creating the balance that
HuStream needed.
40. BUSINESS MODEL
Lawrence began to contemplate how to generate revenue
through the entertainment option. Of all the
options the team had explored, it had considered only the most
potentially lucrative industries. In the
entertainment segment, the pricing strategy would be based on a
per-episode fee and any additional
maintenance fees that may apply.
When considering the DIY segment, the team proposed a per
video profit model. As with the
entertainment option, the prices at increasing volumes would be
negotiated downward. The team
considered the various types of DIY videos. Education appeared
to be a very lucrative industry, and some
schools might be price-insensitive, such that HuStream could
consider how to detect price flexibility.
HuStream's customers generally wanted affordable solutions,
which required an operational budget that
was as tight as possible. With these new industries, the
profitability potential would grow, and
Lawrence's team needed to propose the business model
profitability to the Matejceks. Funding for any
major initiatives would also need to be considered.
DECISIONS
As Lawrence sat contemplating the recommendations her team
would make, she considered which
industries were the best options, and how the Matejceks would
make money by scaling this business.
Lawrence and her team needed to present clear value
propositions for both customers and users within
these industries, such that the Matejceks could articulate the
41. strength of their tools and services to their
potential customers. Lawrence's team would need to identify
additional personnel, architecture changes
and functionality that they might need and how those costs
would impact the budget. The outlook seemed
to be a combination of products and services development; just
productizing would not likely meet what
the Matejceks had in mind, so they needed to carefully consider
how much of each type of work they did.
Clearly, the user experience in each of these areas would be an
important part of that decision.
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