Opera Philadelphia: Segmentation Strategies for Changing Markets
(7 pages of text)
Between 2010 and 2015, Opera Philadelphia experienced a steep decline in household subscribers and single-ticket buyers, coupled with severe revenue fluctuations. At that time, market behaviours had changed along with growth in more sophisticated use of digital media for entertainment and social interaction.
The general director’s critical objective for the Opera was to develop a fresh strategy that specifically targeted evolving tastes for opera performance in Philadelphia and the surrounding area. The Opera had to determine whether it needed to revise its segmentation and positioning strategy, as well as make adjustments to its product. This new strategy also had to provide protection for and prevent further loss of the Opera’s existing subscription audience, many of whom were loyal donors.
This case introduces the importance of research, data analysis, segmentation, targeting, and positioning (STP) and, particularly, how these relate to a shift in market behaviours. The case is suitable for both undergraduate- and graduate-level courses that emphasizes value in understanding the customer, including courses dealing with marketing analysis and strategy, marketing management, and consumer and buyer behaviour. This case is also suitable as a wrap-up assignment at the end of a course and can be used to inform non-business students about vital audience and customer considerations. After completion of the case, students will be able to
- understand the importance of market research and insights that lead to accurate STP;
- assess the positive impact that a sound STP strategy can have on business growth; and
- examine strategies and integrated marketing tactics that influence consumer perceived value.
Arts, Entertainment, Sports and Recreation
United States, Medium, 2014
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