Case Study: Musica Viva Australia

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CASE STUDY MUSICA VIVA AUSTRALIA QUESTION 1 SWOT analysis of each of the above segments of Musica Viva - Musica Viva International Concert Series and Subscription Series - Musica Viva in Schools - Musica Viva Export Program - Musica Viva Country Wide.

Musica Viva International Concert Series and Subscription Series Strengths - Has it's own brochure in which it promotes future events and most importantly itself.

- The mainstay of the business earning approximately 80% of its income.

Weaknesses - Because many of the workers there are volunteers, if management makes a wrong decision many of the volunteers could be put out of place and choose to leave Musica Viva, this could put the organisation in an awkward position.

- Because Musica Viva don't focus a lot on marketing their firm, this could lead to Musica Viva not being as recognised as it could be. Therefore leading to decreasing sales in concert tickets Opportunities - Making the Australian public as well as the rest of the world aware of the great talents of Australian's and also aware of Musica Viva and what they offer in terms of fine sounding music.

- Could possibly expand and profit greatly by presenting more extravagant Concerts and attract a wider range of well-recognised sponsors.

Threats - The existence of Musica Viva is basically in the hands of the government, therefore, cost cutting on behalf of the federal government would jeopardise the future of the organisation. There is also the threat of competitors entering the market.

Musica Viva in Schools Strengths - Is financed by the Dept. of education. This would improve the image of Musica Viva. Parents and teachers would see that it is good enough to be financed so why not try it.

- Is Australia's most extensive music education program, with a large number of participates.

Weaknesses - Because chamber music is best suited for the older generation of people, it would not be best suited in schools as it doesn't reflect music that young people prefer or listen too.

Opportunities - Offering this sort of program to schools may convince children to take up an instrument and possibly make it big in the future, thus furthering their experience with Musica Viva.

- Children may enjoy the performance and inform their parents, friends or relatives of Musica Viva. This would benefit Musica Viva.

Threats - Many children may not have an interest in hearing chamber music; therefore, schools may decline offers of a visit, therefore jeopardising the future of Musica Viva.

Musica Viva Export Program Strengths - By travelling overseas the rest of the world are made aware of the great talent of Australian's and their instruments and more importantly made aware of Musica Viva. The rest of the world may realise that Australia isn't all bush and scrub full of wild animals and may be made aware of the great talent some Australians possess. Therefore encouraging music companies to seek Australian talent.

- Gives young up and coming performers something to aim for. They could see performing in an overseas concert as their ultimate dream.

Weaknesses - Because Musica Viva are almost entirely funded by the public (public provide 70% of income), if Musica Viva lose the interest of the public they risk future existence.

- Have not got high enough financial stability to venture overseas as often as preferred.

- Australians miss out on hearing live performances from the best our country produces.

Opportunities - Gives Australian artists the chance to travel and show themselves off overseas, thus giving Musica Viva world class recognition. May receive world wide exposure - Reap in the benefits when/if the musician/s get to make it big overseas.

Threats - Many musicians may be deterred because of the size of Musica Viva and the pace at which they're launching into world-class status.

- Australians miss out on watching the best homegrown talent.

Musica Viva Country Wide Strengths - Promotes public interest effectively in country regions of Australia, this raising money and expanding outside cities.

Weaknesses - Makes the least money out of all their areas of expertise.

Opportunities - Could possibly profit greatly by monopolising the country music industry.

- Taking performers to country regions around Australia.

- Give country people the chance to experience chamber music.

Threats - Loss of public interest in country music.

QUESTION2 Marketing positioning strategies necessary for Musica Viva to successfully market itself to: - Ticket buyers- (subscribers) - Ticket buyers- (non-subscribers) - Governments - Sponsors - Volunteer workers.

Ticket Buyers- (subscribers): BENEFITS By being a current subscriber to Musica Viva, consumers can view shows for a discounted price as opposed to others. By being a subscriber, that person has guaranteed tickets to top performances, priority seating, huge savings compared to single ticket holders, knowledge of big events before the general public. The strategy is delivered through the Musica Viva newsletter, in which the subscriber receives on various occasions throughout the year, and access to pre-concert talks.

Ticket Buyers- (non-subscribers) BENEFITS As opposed to the subscriber, the non-subscriber (if attending a performance for the first time) will be unaware of what they are in for. Attending would be a whole new experience. By not being a subscriber the non-subscriber cannot obtain discount tickets and is unaware of special deals like the subscriber is. By being a non-subscriber however, the ticket holder/s would be able to treat the visit as an outing for an anniversary or birthday with loved ones. By being a subscriber, that person has guaranteed tickets to top performances, priority seating, huge savings compared to single ticket holders, knowledge of big events before the general public. The strategy is delivered through the Musica Viva newsletter, in which the subscriber receives on various occasions throughout the year, and access to pre-concert talks. The non-subscriber misses out on these benefits, as they are not subscribers.

Government BENEFITS Because Musica Viva is partly Government funded, the government would be praised by the public for assisting potential stars in reaching world class status thus, reaching their lifetime ambition. The public would be aware of Government funding through speeches acknowledging their involvement.

Sponsors BENEFITS By sponsoring a non-profit organisation such as Musica Viva (one that is helping and entertaining the public) a company would be recognised by the public as a generous firm and would be advertising themselves, by making the public aware of its existence. Sponsors also have the opportunity to be associated with something that is original in the entertainment market which therefore helps in the promotion of their name and products. Finally any sponsorship is tax deductable.

Volunteers BENEFITS Volunteers have opportunities that others don't such as seeing/hearing the show for free, gathering experience that could be useful in a resume further down the track for a career and be able to help Musica Viva learn at the same time. This strategy could be demonstrated through the use of brochures, magazines, talks or seminars.

QUESTION 3 Price elasticity of demand for Subscription and International Concert Series The price elasticity of demand for the Subscription Series and International Concert Series is inelastic according to Mr Colville as he describes the market as 'not very cost sensitive'. Many of the people attending these sorts of concerts only do so occasionally throughout the year so when they do attend they expect something of the highest quality, something that you would only experience a few times a year. Therefore consumers are willing to pay the high prices that are charged for these concerts because of the prestige that is held with such an event. The quantity demanded for tickets doesn't change as a result of the price changes. A factor that may contribute to the low price elasticity of demand for concert tickets may be due to the demographics of the people purchasing the tickets. Many of the people attending the concerts may be middle to high-income earners and they therefore aren't worried about paying high prices for tickets. Also consumers may assume that high ticket prices are associated with a performance of this kind.

Although Mr Colville describes the whole market as cost sensitive, all the people involved in the research program have said that tickets are too expensive so to combat this Musica Viva have to tried to expand the lower priced end of the market. They have done this by offering special deals such as discounts for students. They could also offer pensioner discounts special deals for schools and group bookings. By doing this they will be able to attract the younger generation to come watch the concerts and the organisation will be able to speed up sales of the lower priced seats. These special deals would allow the organisation to follow up work that is conducted in schools and in country areas. These alternatives would also help attract a more diverse crowd to concerts. Musica Viva could also adopt a pricing policy such as seasonal discounts. This would involve offering special discounts to all people during certain times of the year (School holidays, Christmas period etc). By doing this, the organisation would be able to spread sales activities more evenly over the year. This policy would be implement at a time when sales are slowing down.

QUESTION 4 Implications of the following statement.

"You must be very careful when marketing this sort of thing not to blow it out of proportion, because all it takes is the experience itself to throw your marketing out the window, because you have lied, exaggerated- pushed the colour up too high. And then people don't believe you".

David Colville, Deputy General and Marketing Manager of Musica Viva Australia comments in regards to the promotion and advertising imply that when marketing their product, they must be very careful not to frighten prospective consumers away. This is because the description of the experience may sound over the top or to good to be true. If consumers believe they are being mislead through these campaigns they may not return to their concerts and this can result in poor attendances especially from subscribers and this may eventually affect the industry in the long run. Therefore the marketing division must be careful when devising advertising and promotional activities, as they must be able to truly reflect what is being provided to them.

Musica Viva beliefs into marketing their product reflect their advertising and promotional campaigns. Through informative brochures containing facts and figures of artist, Musica Viva are able to try to persuade people that they are offering a truly superb and quality performance. With radio programs about performances and by merchandising recordings of performances, the organisations are able to allow individuals the opportunity to enjoy and study a piece of work long after the performance. They are therefore able to give the public a true indication of what they are purchasing. Musica Viva have realised that they have to be honest about their marketing activities, and to capitalise on these things rather than apologise for them because the implications of misleading consumers can backfire on the organisation.

This statement is consistent with Musica Australia's vision statement because their primary aim is to bring knowledge and promote the interests of music and musicians to audiences through concerts and activities that inform and entertain. It is through their various segments (Musica Viva international Concert Series & Subscription Series, Musica Viva Schools, Musica Viva Export Program & Musica Viva CountryWide) that they are able to achieve these goals. The organisation use honesty is the best policy theory to marketing strategies as Mr Colville states "it is essential to bear in mind the realities of our market-chamber music is chamber music", implying that the experience isn't meant to be the most exciting moment of your life, one that is going to 'blow you out of your mind'. The main aim of the concerts is to provide a "enjoyable time" for audience members that require "concentration and intimacy".