INDIAN INSTITUTE OF MANAGEMENT ROHTAK | GROUP 3

MARKETING MANAGEMENT - I

BARATH SINGH (PGP05063) | DIBAKAR BHOWMIK (PGP05065) | DIVYANSHI BHATNAGAR (PGP05066)

CHAUHAN RAKSHIT BHARATKUM (PGP05064) | GANGANDEEP SINGH PANNU (PGP05067)

REINVENTING THE WHEEL: ANALYSING THE TRADITIONAL CIRCUS INDUSTRY

“ VERY HIGH”

Low degree of Vertical Integration Low supply of Big Names Act Workforce Demands High Cost for Star Performers High Cost for wild animal trainers High Labor & Travel Cost Difficulty in Animals Transportation Low Supply of Exotic Animals

“ VERY HIGH”

Low degree of Vertical Integration Low supply of Big Names Act Workforce Demands High Cost for Star Performers High Cost for wild animal trainers High Labor & Travel Cost Difficulty in Animals Transportation Low Supply of Exotic Animals

“ VERY HIGH”

Low Brand Loyalty Change driven Industry Technology driven No direct Competition due to Large

Share

“LOW”

Low CLV Low Switching Cost Lack of unifying theme and

bewildering acts. Hence could not compete with movies & other entertainment sources

Highly localized performance Acts carried over to next year,

so low market power due to no novelty

“HIGH”

Highly Price Elastic Target audiences were only kids

and family Low focus on commercialization

led to inefficient processes Low efforts made to increase the

customer base and attract currently non-existent customer segment e.g. youth/adults

“HIGH”

COMPEITION/RIVALRY

“HIGH”

Low Market GrowthDeclining Demand

Alternate Sources of Entertainment

Low degree of Product DifferentiationLive Entertainment - declining Industry

HIGH COST LOW CLV LIMITED TG

DECLINING REVENUE

LOW MARGIN

LOW PROFITABILITY

INDUSTRY ATTRACTIVENESS – “LOW”

LOW

MED

IUM

HIG

H

STRONG MEDIUM LOW

IND

UST

RY

ATT

RA

CTI

VEN

ESS

BUSINESS UNIT STRENGTH

Ringling &

Brothers

Good to Invest

Bad to Invest

SITUATION ANALYSIS

Barnum & Bailey

LOW

MED

IUM

HIG

H

STRONG MEDIUM LOW

IND

UST

RY

ATT

RA

CTI

VEN

ESS

BUSINESS UNIT STRENGTH

Ringling &

BrothersBarnum & Bailey

Towards late20th Century

Good to Invest

Bad to Invest

SITUATION ANALYSIS

BIG NAMES ACT

EXTERNALIMAGERY

ENHANCEDVISIBILITY

Equestrian Acts Clowns Acrobats Jugglers

Fancy Tools Electric Lights Moving Pictures Large Tents Educational

Entertainment

“Roman Circus Maximus” Three Rings Model

FACTORS TO COMPETE

BIG NAMES ACT

EXTERNALIMAGERY

ENHANCEDVISIBILITY

Equestrian Acts Clowns Acrobats Jugglers

Fancy Tools Electric Lights Moving Pictures Large Tents Educational

Entertainment

“Roman Circus Maximus” Three Rings Model

FACTORS TO COMPETE

Target Market

Frame of

Reference

Point of

Difference

Reasons to

Believe

• Psychographic Segmentation

• Children & Families

• Big Names Act

• External Imagery

• Price Concessions

• Enhanced Visibility

• Better Seating Capacity

• Exotic Animals

• Live Show

• Established Names

• Initial MarketingTraditional Category Identity

Blue Ocean Strategy

CATEGORY IDENTITY & POSITIONING

Reinventing the wheel

Redefined Experience

Unique Positioning

Win-Win Partnerships

Customer Loyalty

TRADITIONAL CIRCUS CIRQUE DU SOLEIL

Circus performers and animals

Street performers, no animals

Low-brow amusement Provocative, sophisticated performances

Incorporates elements of “typical” circus experience

Emphasis on innovation and creativity

Targets kids and families Targets sophisticated adult population

Redefined Experience

Unique Positioning

Win-Win Partnerships

Customer Loyalty

Creating New Markets & Breaking Production Costs

Redefined Experience

Unique Positioning

Win-Win Partnerships

High priceLow price

Intense

Mild

PERFORMING ARTS MARKET

Customer Loyalty

Source: Wharton School

Breakaway Positioning

Cirque du Soleil’s brand brings consumers to partner venue

Contributed to doubled earnings growth of three largest casino partners

NY-NY experienced 23% increase in net revenues given the addition of Zumanity

MGM increased 13% increase in slot revenue attributed to Kà

Redefined Experience

Unique Positioning

Win-Win Partnerships

Customer Loyalty

Source: Wharton School

New Avenues for Growth & Unique Product Offerings

The typical Cirque du Soleil customer is affluent and loyal to the brand

Redefined Experience

Unique Positioning

Win-Win Partnerships

Customer Loyalty

70% repeat customer base

Targets sophisticated and educated adults

$75,000+ in average annual income

Source: Wharton School

High Customer Engagement & Increasing CLV span

Redefined Experience

Unique Positioning

Win-Win Partnerships

0

100

200

300

400

500

600

700

800

Revenue (CAD$ millions)

0

2

4

6

8

10

12 Annual Tickets Sold (millions)

Customer Loyalty

70 million tickets sold by 2007

Source: Wharton School

Low Cost, High Revenue, Higher Profitability

Thank You