Case Study Exam
Semester 1, 2013
Please answer all questions
1. Please state at least 4 minor issues arising from this case? (2 marks)
1. Crowd Control
2. Over Spending
3. Music Trends
4. Technological Change (Social media and Marketing)
2. Please state at least 8 major issues arising out of this case? Be detailed in your answers. (8 marks)
(1) Internal conflict and Communications:
Conflicts of Interest and communications between founding partners Ken West and Vivian Lees can lead to internal organisational issues for example misguided and confused management, which could potentially hinder the whole event.
(2) Host Community and Event Location: Big day out at the moment have a negative relationship Claremont council with the current councillor and mayor both believing that the music festival bringing more negatives to the region then positives. This also generates bad media for the event displaying it, as “detrimental” to the community and that it should relocate from the showgrounds. As the showgrounds is the only location in Perth that can safely house 40,000 people and is also close to public transport. Relocating to a more isolated and smaller venue would disinterest punters with greater cost of going to the venue and also a lower cap on ticket sales, which will lead to less revenue and inspire greater scalping margins.
(3) New Management: With Lees leaving the event, Big Day Out management have to manage their first event working with new co managers C3 Presents. This is an issue because they will bring new techniques used over in America in the management of Lollapalooza which whilst being possibly effective, if the existing Big day out management isn’t dynamic, confusion and conflict could occur jeopardising the whole success of the event. (4) Maintaining Quality of event: Big Day Out organisers are under a lot of pressure to maintain the quality of the line up while dealing with higher and higher asking prices from headline performers, this makes it harder to obtain a higher number of “big name” acts as the event use to draw as the asking price of performers has risen greatly. Also because in previous years the Event has scored good quality bug name acts such as Nirvana, for a decent price, the pressure is on for the event to deliver equal too or greater than standards year after year.
(5) Financing and Ticket Sales: Financing and Ticket Sales are somewhat complimentary in this case because even though BDO managers paid a lot to get headliner Kanye West it was not enough to spark the required ticket sales, not to mention cutting the line up for the Western and South Australia shows and abandoning New Zealand. Without high Ticket sales there is less profit and therefore lower finances to support the next years bill resulting in less headliners and less ticket sales. If C3 Presents had not bought into BDO this could have been the start of a relentless cycle for BDO, which could have resulted in its demise.
Apart from higher asking prices from performers, bidding against other events such as future and soundwave for headliners makes the asking price even higher. This can then determine who headlines which event, which can turn into a competition for punters. With the main demographic of music festivals being young low-income earners, generally they have to decide which one summer festival they would like to attend. This decision is generally made from how many big acts are on the line up. (7) Fan Loyalty: After completely scrapping the New Zealand leg of the even and cutting some headline acts fro the South and Western Australian legs of the event, Big Day Out managers have to work really hard to keep a loyal fan base and try make the regrettable cuts have as less impact as possible on the events fan bas and ticket sales. Will punters trust Big Day Out if it returns to New Zealand and will...