Michael Jackson Festival’s Start-Up Business

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Executive Summary
Introduction
Testing Methodologies
The Business Model Canvas
Conclusion
References

Executive Summary

The primary goal of this paper is to develop a detailed start-up business for the Michael Jackson Festival with the assistance of the business model canvas. Each constituent of the framework is designed based on the literature review, case study, or questionnaires. Discussing each segment in detail helped in understanding the decision-making process and the reasons for including particular elements in the framework. It was revealed that organizing a colorful event with different activities such as various contests and competitions will be of interest not only to fans but also to other individuals. Using social media and relying on the help of sponsors can assist in increasing awareness about the venue. At the same time, relying on the support of volunteers and partners will help establish a co-creation process, enhance revenue streams, and reduce related costs.

Introduction

Nowadays, entrepreneurs face a plethora of challenges and difficulties when designing an entirely new business concept. Nonetheless, various instruments exist to improve the effectiveness of decision-making and cover a start-up from an entirely new perspective. For example, the business model canvas is one of the most efficient strategies available due to the simplicity of the framework, its clear visual representation in Figure 1A, and the ability to cover key business components such as partners, value chain, and customer relationships (Campbell, Gutierez, & Lancelott, 2017; Daidj, 2014).

The business model canvas. — Figure 1A. The business model canvas (Campbell et al., 2017).

In the context of this paper, applying this model will assist in designing a full-blown start-up business for the Michael Jackson Festival. Each constituent will focus on related hypotheses that will be tested to understand the ideas used to derive the content of each business block. In the end, the conclusions will summarize the critical findings of the paper while underlining the promising nature of this venture.

Initial Value Proposition

The previous part of the study clearly indicated that the actual value proposition of the Michael Jackson Festival was not only to design a venue with different activities, games, and events while reuniting Michael Jackson’s fans but also to provide customers with an exceptional atmosphere of fun and joy. This aspect was assumed to be achieved by selling alcohol as this would help to increase revenues and festival attendance. Offering discounts for buying tickets in advance and the need to pay for entrance only were other features of this venture. These ideas will be used as a basis for each element of the business model canvas.

Hypotheses

In the context of this paper, the hypotheses can be formulated as follows:

The described value proposition (see Chapter 3.1) meets the needs of the customers;
People who are interested in this venue will be represented solely by Michael Jackson’s fans;
Both fans and non-fans will be eager to participate;
Employing volunteers may be one of the solutions;
Having sponsors can help reduce costs;
Co-creation and communities can be identified as the most relevant approaches to maintaining customer relationships.

Testing Methodologies

To prove or disprove the hypotheses mentioned above, the concept of the mixed-method approach will be used, as the blocks of the business model canvas will have a dissimilar content. For example, a variety of qualitative methods can be employed, including case studies and literature reviews. The details identified in the case study are often used as a basis for the development of new theoretical frameworks, and they rely on an evaluation and description of the actions of a particular organization in the business context (Klenke, 2016; Ridder, 2016; Seawright, 2016). This applies to the constituents such as key partners and resources. The idea of the literature review is similar, but it will use a combination of different aspects discussed in previous studies while being used to derive ideas for practically every segment (Galvan, 2016; Machi & McEvoy, 2016). As for quantitative methods, with the help of questionnaires, it will be possible to acquire feedback from potential customers concerning activities, value propositions, and channels.

The Business Model Canvas

Value Propositions

As mentioned earlier, the initial value proposition can be formulated as, “with the Michael Jackson Festival, you will not only be able to cherish a memory of your favorite artist but also engage in different activities, learn Jackson’s moves, become a star, and experience the atmosphere of a holiday.” In this case, to test the proposition, questionnaires were distributed among participants online with the help of social media.

One hundred users participated in the study, and it was revealed that both fans (80%) and non-fans (20%) of Michael Jackson would like to attend this event. When asked about activities, the answers were distributed among trivia contests (45%), holograms (30%), singing completion (80%), performance (80%), dance class (100%), and after-party (76%). In addition, 87% indicated their desire for alcoholic beverages.

Regarding additional comments, respondents stated that including merchandise with Michael Jackson and the logo of the festival would also be a positive feature. Analysis revealed that the described value proposition is sufficient, meaning that hypothesis one is correct. The festival will satisfy the needs of both fans and non-fans of Michael Jackson by offering discounts, an extended variety of events, and the sale of alcohol. Including the sale of merchandise can also be described as an important feature and has to be included in the list of costs and activities.

Customer Segments

When describing the main customer segments, it is essential to mention that even after the death of the singer, Michael Jackson’s fan base continues to grow at the pace of a geometrical progression. Various events and concerts have been organized to honor the memory of the King of Pop, and his popularity has been reflected in the form of impersonations uploaded to social media (Robinson, 2014). The questionnaire also revealed that the majority of respondents (80%) represented fans of the singer. It could be said that this segment can be considered to be the target audience (in other words, a niche market). Nonetheless, the survey also showed that non-fans (20%) would also be interested in participating in this event. Consequently, hypothesis two can be declared incorrect while number three is relevant.

Key Activities and Resources

Similar to the analysis of value proposition and customer segments, it will be necessary to review the responses to the questionnaires to describe the main activities. Figure 1 presents a summary of results while clearly displaying a percentage of individuals interested in each type of entertainment. In this case, a critical amount of financial resources should be invested into organizing a dance class, a singing contest and performance, and a party after the festival.

When understanding the resources needed to deliver the selected activities to the customers, using observations from the case study of the Coachella Valley Festival can help in this process. In this instance, the festival not only focuses on reserving a particular space, banners, and merchandise but also pays close attention to human resources (Job Monkey, 2017). For example, the management of this festival heavily relies on volunteers since this method attracts workers to the event and provides an entirely unique experience (Job Monkey, 2017). This matter highlights that hypothesis four is correct, and it remains apparent that financial resources, copyright, rent, and merchandise are also required to organize this event (see Chapter 3.6 for more information).

Key Partners

Another aspect that has to be considered of high importance is finding partners and creating trusting relationships with them. Nowadays, practically every company in the entertainment sector pays particular attention to engaging in effective collaborations to organize an event (Fishof & Levin, 2012; Kaser & Oelkers, 2015). In this instance, referring to the case of Coachella can help in organizing this venue and optimizing associated costs and revenues.

For example, Coachella has a number of sponsors including Heineken, Absolut, American Express, and Sephora (Coachella, 2017). Being in collaboration with these brands not only reduces costs but also increases the recognition of the festival among the customers of these companies. Consequently, it could be said that building trusting relationships with enterprises such as Heineken can facilitate providing alcohol to the venue. At the same time, encouraging music stores to participate in the event will supply the management with merchandise and help organize effective advertising campaigns. A combination of these factors reinforces that hypothesis five is correct.

Customer Relationships and Channels

Along with key activities, resources, and partners, it is essential to understand the relationships with the customers that will be established. Nowadays, many companies consider co-creation as one of the most important modern trends due to continuous changes in consumer preferences and the rising popularity of globalization (Haro, Martinez-Ruiz, & Martinez-Canas, 2014). This type of relationship is believed to have a positive impact on the company and the customers simultaneously, as the clients feel like a part of the decision-making team while the enterprise enhances its image and reduces expenditures (Fernandez & Remelhe, 2016; Haro et al., 2014).

In the context of the venue indicated in this case, this scheme could be identified as the most appropriate one. It complies with the key activities such as contests and competitions that imply the active participation of the visitors and volunteers. At the same time, it would be impossible to organize this event without fans since they will help create a particular atmosphere while being united by the same ideas. Alternatively, relying on the idea of co-creation will assist in reducing costs without affecting the content of the event (Alves, 2013; Haro et al., 2014).

It could be said that understanding of advertising channels is strongly linked to the nature of customer relationships. It remains evident that social media plays a critical role in marketing today as it makes advertising activities entertaining and sophisticated at the same time (Alharbie, 2015; Bekoglu & Onayli, 2016).

Simultaneously, social media is believed to have a positive impact on overall business growth and prosperity while making businesses more innovative and competitive due to the ability to address the needs and preferences of new generations (Alharbie, 2015; Duffet & Wakeham, 2016).

Questionnaires revealed that 89% of respondents would appreciate being contacted with the help of Facebook while only 11% showed loyalty to more traditional means of advertising. In this case, this aspect implies that it will be reasonable to organize different community groups using social media networks. It will not only help to unite people who are interested in the event but also will encourage idea-sharing. Nonetheless, along with social media, advertising the venue with the help of sponsors can also be beneficial for the management. Overall, a combination of factors clearly indicates that hypothesis six is correct.

Cost Structure and Revenue Streams

Apart from paying chief attention to the description of the venue, it is essential to determine the profitability and the actual applicability of this business concept in practice. Figure 2 summarizes the cost and revenue structure revealed in the main findings of the paper. It remains apparent that the costs are high, but they will be buffered with the assistance of engaging volunteers in the process and establishing trusting relationships with sponsors such as Heineken.

Costs and revenues of the venue. — Figure 2. Costs and Кevenues of the Мenue.

Conclusion

In the end, the business model canvas gives a clear understanding of the start-up structure and describes each element in detail. Along with this model, using a mixed-methods approach helps gain an understanding of the development of each idea and component. Consequently, in this instance, most of the hypotheses were found to be correct. Thus, the event must rely on the value proposition declared previously while satisfying the needs of both fans and non-fans with the help of a co-creation scheme and activities. Engaging customers with the assistance of social media and attracting volunteers and sponsors will not only optimize costs and revenue streams but also increase the effectiveness of advertising campaigns and consumer awareness.

References

Alharbie, A. (2015). Business growth through social media marketing. International Journal of Innovation and Applied Sciences, 13(4), 873-880.

Alves, H. (2013). Co-creation and innovation in public services. Service Industries Journal, 33(7-8), 37-41.

Bekoglu, F., & Onayli, C. (2016). Strategic approach in social media marketing and a study of successful Facebook cases. European Scientific Journal, 12(7), 261-274.

Campbell, A., Gutierez, M., & Lancelott, M. (2017). Operating model canvas. Zalt Bommel, Netherlands: Van Haren Publishing.

Coachella. (2017). Sponsors. Web.

Daidj, N. (2014). Developing strategic business models and competitive advantage in the digital sector. Hershey, PA: Business Science Reference.

Duffet, R., & Wakeham, M. (2016). Social media marketing communications’ effect on attitudes among millennials in South Africa. The African Journal of Information Systems, 8(3), 20-44.

Fernandez, T., & Remelhe, P. (2016). How to engage customers in co-creation: Customers’ motivations for collaborative innovation. Journal of Strategic Marketing, 24(3-4), 311-326.

Fishof, D., & Levin, M. (2012). Rock your business: What you and your company can learn from the business of rock and roll. Dallas, TX: BenBella Books, Inc.

Galvan, J. (2016). Writing literature review a guide for students of the social and behavioral sciences. New York, NY: Routledge.

Haro, M., Martinez-Ruiz, M., & Martinez-Canas, R. (2014). Value co-creation process: Effects on the consumer and the company. Expert Journal of Marketing, 2(1), 68-81.

Imke, S. (2016). Applying the business model canvas: A practical guide for small businesses. New York, NY: CreateSpace Independent Publishing Platform.

Job Monkey. (2017). Working the 2017 Coachella Valley music and art festival. Web.

Kaser, K., & Oelkers, D. (2015). Sports and entertainment marketing. Boston, MA: Cengage Learning.

Klenke, K. (2016). Qualitative research in the study of leadership. Bingley, UK: Emerald Group Publishing Limited.

Machi, L., & McEvoy, B. (2016). The literature review: Six steps to success. Thousand Oaks, CA: Corwin.

Ridder, H. (2016). Case study research: Approaches, methods, and contribution to theory. Munich, Germany: Rainer Hampp Verlag.

Robinson, W. (2014). Michael Jackson fans – and quite a few impersonators – lay flowers to mark fifth anniversary of the King of Pop’s death. Daily Mail. Web.

Seawright, J. (2016). Multi-method social science: Combining qualitative and quantitative tools. Cambridge, UK: Cambridge University Press.

Trapp, M. (2014). Realizing business model innovation: A strategic approach for business unit managers. Nurnberg, Germany: Springer Gabler.

Click Here To Order Now!