As apart of the 2014 Holland America Case Competition, hosted in the Michael G. Foster School of Business at the University of Washington, we were tasked with providing a solution to address copycat festivals mimicking that of the iconic annual Oktoberfest celebration. This case was not only a demonstration of preserving a unique cultural tradition while also promoting global expansion.

1. From LocalTradition to
GlobalCapitalism
RachelTurcott, Megan Liles, Grant Sportelli, Romel Soltero

2. Agenda
Background Analysis
Option Evaluation
Proposal
Implementation
Risk Mitigation
Q & A
Background Options Proposal Implement Risks Q & A

3. Product
Background Options Proposal Implement Risks Q & A
Oktoberfest is more
than a sum of its
products, but a
celebration of culture
itself…
Oktoberfest sells to its
customers a way to
come together and
celebrate a culture.
Tangible
• Beer
• Local Food
• Music
Intangible
• Culture
• History
• Heritage

4. Demographic ofVisitors
Background Options Proposal Implement Risks Q & A
Munich
60%
Rest of Bavaria
12%
Rest of
Germany
9%
Foreigners
19%

5. Background Options Proposal Implement Risks Q & A
Stakeholders
Consumers
Vendors
Government
Suppliers
Hospitality
Transportation

6. MarketAnalysis
Background Options Proposal Implement Risks Q & A
Strengths
Global Reputation
Strong Supplier/Consumer
Base
Knowledge of the Market
Weaknesses
Unprofitable
Niche Market
Smaller demographic
Opportunities
NewTechnology
Existing Demand
Global Interconnectivity
Threats
Economic Conditions
International Laws
Competition
SWOT

7. Global Franchising
What
• Franchising Munich Oktoberfest
How
• Regional Analysis
• Liaising with Councils Abroad
Why
• Long-Term Profit Expansion
• Potential Growth
• Cultural Expansion
Background Options Proposal Implement Risks Q & A

8. Analysis
Background Options Proposal Implement Risks Q & A
Criteria Potential
Profitability
Feasibility Growth
Potential
Maintaining
Heritage
Expanding
Cultural
AwarenessShort
Term
Long
Term
Global
Franchising 2 5 3 5 3 4
1 = Not at all support
2= Unlikely to support
3 = May or may support
4 = Likely to support
5 = Extremely likely to
support

9. Improving LocalOperations
Background Options Proposal Implement Risks Q & A
What
• Adjusting Revenue Structure
How
• Replacing Rent Formula
• Aggressive International Marketing
Why
• Short-Term Profit Expansion
• Feasibility
• Maintaining Heritage

10. Analysis
Background Options Proposal Implement Risks Q & A
Criteria Potential
Profitability
Feasibility Growth
Potential
Maintaining
Heritage
Expanding
Cultural
AwarenessShort
Term
Long
Term
Improving
Local
Operations
5 2 5 2 5 2
1 = Not at all support
2= Unlikely to support
3 = May or may support
4 = Likely to support
5 = Extremely likely to
support

11. Comparison
Criteria Potential
Profitability
Feasibility Growth
Potential
Maintaining
Heritage
Expanding
Cultural
AwarenessShort
Term
Long
Term
Global
Franchising 2 5 3 5 3 4
Improving
Local
Operations
5 2 5 2 5 2
Background Options Proposal Implement Risks Q & A

12. Background Options Proposal Implement Risks Q & A
Enhance
Expand
Evaluate

13. EnhanceOktoberfest Model
Background Options Proposal Implement Risks Q & A
Old
Revenue via Rent
Based on Space
Minimal Marketing
New
Revenue via SalesTax
Based on Units Sold
Aggressive International
Marketing

14. Background Options Proposal Implement Risks Q & A
Expanding
to New
Countries

15. Evaluate BasedOnCriteria
Background Options Proposal Implement Risks Q & A
Potential Profitability
Feasibility
Growth
Maintaining Heritage
Expanding Cultural Awareness

16. Timeline
2016-20202015 2020 +
Refine existing
Munich model
Conduct market
research on UK
Trial Oktoberfest
in UK
Evaluate
successfulness
of Munich model
Evaluate
Oktoberfest
in UK
Continue to
research new
countries

17. Risk Mitigation
Background Options Proposal Implement Risks Q & A
• Control of Authenticity
Brand Dilution
• Trial PeriodRejection of
Franchising
• Aggressive
International Marketing
Cannibalization of
Munich Oktoberfest

18. Q &A
Background Options Proposal Implement Risks Q & A

19. Appendices
Appendix 1 Our Evaluating Criteria
Appendix 2 Scale for Evaluating Criteria
Appendix 3 Global Franchising Criteria
Appendix 4 Improving our Current
Operations Criteria
Appendix 5 Location Analysis

20. Appendix 1: Evaluating Criteria
We have prioritized the criteria we feel are important to the future
and reputation of Oktoberfest and have then evaluated all of our
options according to these criteria. The criteria is as follows:
Criteria Explanation
Potential Profitability This refers to how much potential there
is to create value and turn a profit.
Although this profit will be ploughed
back into the event.
Feasibility This is how easy it will be to implement
the option.
Growth Potential This considers how much potential future
growth is likely to
Ability to Maintain Culture This is how easy it will be to continue
expressing the history and core values of
Oktoberfest.
Expanding Cultural Awareness This refers to the ability to educate new
attendees on the Bavarian culture.

21. Appendix 2: Scale for Evaluating Criteria
Ranking Definition
1 This option will not at all support this
criteria
2 This option is unlikely to support this
criteria
3 This option may or may support this
criteria
4 This option is likely to support this
criteria
5 This option is extremely likely to
support this criteria

22. Appendix 3: Global Franchising Evaluation
Criteria Ranking Justification Evidence
Potential Profitability 5/5 Long term
2/5 Short Term
In the long-term franchising the Oktoberfest brand in
Europe would be more profitable because it would expose
Oktoberfest Munich to a new consumer base.
 19% of attendees come from outside
Germany
 55% of international visitors return to
Oktoberfest
 Combined, the largest cultural festivals in
the world attract over 28 million attendees.
Feasibility 3/5
We already have a longstanding knowledge of Oktoberfest,
however we don’t have a full understanding of how this will
translate to other countries. Therefore, it is feasible but it
would be easier to enhance the current Munich operation.
 Oktoberfest has been running successfully
for over 200 years.
Long Term Growth
Potential
5/5
Obviously, when moving to a new market segment there is
high potential growth.
By Franchising the Munich Oktoberfest name abroad it will
give us a wider customer demographic. After our first
successfully expansion abroad it could also potentially open
up even more markets.
Maintaining Heritage 3/5
It may be harder to maintain the history and heritage of
Oktoberfest when moving to another country.
Expanding Cultural
Awareness
4/5
By taking Oktoberfest abroad we can educate other
countries on the culture of Bavaria.

23. Appendix 4: Improving Current Operation Evaluation
Criteria Ranking Justification Evidence
Potential Profitability 5/5 Short Term
2/5 Long Term
Opportunity to capture more growth by changing
how vendors are “taxed”. Munich doesn’t advertise
to tourists who spend more money than locals.
• 1.1 billion EUR revenue
• Tax of food/beer could bring
in 8.4 million EUR
• Only 30,000 EUR spent on
marketing, for art
competition
Feasibility 5/5 Revenue policies are an easy adjustment. No drastic
changes to venue, product, or vendors.
• Munich government already
developed a formula to charge for
beer/food for revenue
LongTerm Growth
Potential
2/5 Relative to globalization, room for long term growth
is limited. The venue is fixed and limits the amount
of vendors/ visitors.
• Theresenwiese is fixed, they have
to use location. This means that
there is a cap to how many vendors
they can have.
Maintaining Heritage 5/5 Long standing tradition, Bavaria is the flagship
Oktoberfest, celebration of Bavarian culture.
• Oktoberfest has been running
since 1887.
Expanding Cultural
Awareness
5/5 Worldwide advertisement would further associate
Oktoberfest with Bavaria.
• Currently only 30,000 EUR is spent
on advertising, which extends to
only producing local brochures
from the funded art competition.

24. Appendix 5: Location Analysis
These are some potential locations we have analyzed for potential franchising:We have considered the “World Bank
Organization: Ease of Business Rankings” for this recommendation.
Location Analysis
United Kingdom • United Kingdom visitors comprise almost 13% of international
visitors, the second largest group behind Italy.
• UK already celebratesGerman culture; there are traditional
German markets in Birmingham, Bournemouth, Leeds, London,
Glasgow, and Oxford. the United Kingdom is close by and
Germany has a good relationship with the United Kingdom.
• FurthermoreGerman is 5th most popular foreign born
nationality in the UK, providing a solid base and a large
opportunity for growth
Denmark: Copenhagen • UNWTOWorldTourism Rankings show that Denmark had 8.7
million visitors in 2010.
• Of all EU citizens 35% are interested in Denmark as a holiday
destination.
• Denmark is trying to grow its tourism industry so they could be
open to Oktoberfest.
Switzerland • In 2007World Economic Forum found that Switzerland had the
most competitive travel and tourism sector in the world.
• Switzerland’s Economy is based highly on having a qualified
labor force which could make implementation more feasible.

25. Oktoberfest profitability
today
Background Options Proposal Implement Risks Q & A
• Grosses approximately 1.1 Billion EUR
• Who captures these profits?
• Local vendors
• Hired local staff
• Ride operators
• Tent hosts
• Local hoteliers

26. Oktoberfest: Munich
Background Options Proposal Implement Risks Q & A
• Munich is regulated to not profit from
Oktoberfest
• Costs of Oktoberfest = ~2.5 million EUR
• Currently uses a rent formula to cover
projected costs

27. Capturing/CreatingValue
Background Options Proposal Implement Risks Q & A
• Replace rent formula with beer/food tax
formula
• Lowers barrier to entry
• Market beyond art/design
• Attract more tourists
• Day trip spends :46 EUR/day
• Tourists 213 EUR/day