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Back Beat Touring Marketing Plan

Derek Lersch
Music Business Marketing
August 1, 2015
Elizabeth Nef

Table of Contents

Marketing Plan 2

Executive Summary


Market Analysis

2.1. Market Summary

2.2. Market Trends

Target Market

3.1. Customer Persona


Competitive Analysis

4.1. Competition
4.1.1. Position
4.1.2. Strengths
4.1.3. Weaknesses

Market Positioning


Integrated Marketing Communications Strategy

6.1. Marketing Objectives

6.2. Marketing Tactics


Marketing Plan 3

Executive Summary (Elevator Pitch)

Our company Back Beat Tour Management is located in Los Angeles,

CA. We ofer high end touring services such as booking venues, management
services, touring logistics, and more. Our companys goal is to provide
efficient, memorable, and successful tours for our artists. We will focus on
being creative while meeting all the artists needs and wants. We hope to find
bands and artists seeking professionally organized and fun successful tours.
If that is you, then Back Beat Tour Management will make your next tour a
once in a lifetime experience.


Market Analysis (TITLE ONLY - no content)

Market Summary (MARKET ANALYSIS)
Our industry focuses on organizing, promoting, and managing a wide

array of events. The industry may or may not provided the staffing for the
events. These events could be things such as business and trade shows,
conventions, conferences, and meetings (NAICS, 2012).
Our market is engaged in a high involvement decision making
processes constantly. Our market is essentially potential businesses. These
artists would want to know all their options before the try to pick the safest
most reliable one because it has the potential to afect them negatively. Our
market will most likely have a high personal interest, as well as a perceived
risk of negative consequences, when choosing what kinds of purchases to
make due to this (Hutchison, Allen, & Macy, 2012, p. 34). Artists look for a
shared vision with a tour management company. They want a company that
makes their dreams a reality. For example, famous tour manager Arthur
Fogel is well known within the industry due to his ability to turn artists
dreams into reality. Madonna claims He is a touring genius, while Lady

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Gaga says Arthur understands artists and turns their ideas into reality
(Gachman, 2014). Since they are tight on money they will look for the best
ofer they can get (Kusek, 2014).
The music industry continues to sufer because album sales continue
to drop and illegal downloading continues to increase. As a result of this,
musicians look to touring as a stable revenue source. This makes their
decisions about tour managers and tour management companies both a
cognitive and emotional decision, but more so cognitive. Many musicians
chip in their own money to finance a tour, they tend to be more successful,
and because they are investing in their own tours they are more likely to
make more thoughtful or cognitive decisions when it comes to choosing a
tour management company (Pirie, 2014).
Artists look for tour managers who can make them comfortable. Tour
managers who can ensure everything is working correctly so the artist
doesnt have to. They need managers who can deal with crazy fans, press,
and make sure everything is running smoothly with sound and lighting all at
the same time. Tour managers need to have the ability to solve problems
without freaking yourself or others out (Mixmag, 2015). Since artists who
are touring are most likely seeking validation and status through their
touring, they would likely be placed at esteem needs on Maslows
Hierarchy of Needs.


With artists getting paid less by record labels, they are forced to tour

more in order to make money. These days, artists are rethinking the reasons
for touring as they've seen their profits from downloads and album sales
drop of dramatically.(Lounsbury) Record sales have continued to decline
over the last 10 years, forcing artists to find a new revenue stream. With
touring become that source of income, tour management companies are
flourishing and profiting like never before.

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One of the main concerns when on tour is safety of the artist, workers,
and crowd. Most things are little and can be fixed but there are some things
that you cant be prepared for. In 1976 Kiss guitarist Ace Frehley was
knocked unconscious and almost fatally electrocuted when he touched an
ungrounded metal railing (Crisafulli, 2012). Anything can go wrong at
concerts which is why the crew has to be ready for anything.
Approximately 4.86% of the Los Angeles workforce is made up of
artists (Boyle,2013 para. 2). For geographic segmentation we would want an
artist who is located in Los Angeles, since that is where our company is
located. Our market would be caucasian men who are 19-28. They have an
income of 15K-30K and are young and single. We want to work with artists
who are passionate, energetic, fun, and dedicated who want to be successful
on tour and in their music career. Artists will come to us because they want a
successful, fun, organized tour. We want potential and first time users. On
Maslows Hierarchy of needs artists would be on esteem needs because they
are seeking validation and status by having a successful tour.


Name: Spencer
Age: 20
Occupation: Full time rock musician, part-time
Starbucks barista
Education/training: High School Diploma
Lifestyle: He plays the guitar and sings, spends
his free time practicing his music, playing video

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games, or hanging with friends, he enjoys seeing other bands play, typically
in the rock, punk, or alternative genres
Personality traits: Carefree, driven, unorganized, passionate
Benefits sought: Esteem needs(esteem recognition, status)
Buyer Behavior: Buys because of planning and cost. Usually an early adopter.
4. Competitive Analysis (TITLE ONLY)


The direct competitor is AEG mainly the Concerts West division and the
indirect competition is Live Nation.
4.1.1. Position (SITUATION ANALYSIS)
AEG Live has great customer service. Whenever there is a complaint
AEG gets back to the customer and addresses how they will resolve the
issue. They have pretty good customer feedback due to the simple fact of
making it right when an issue arrises. They have a website and social media
outlets for each AEG location. Most of the complaints about AEG revolve
around merchandise and ticketing issues. The newest complaint from
February is about someone bought tickets and a package deal with the
tickets. They were supposed to receive a free download of the album. Later
they received an email that they weren't eligible for the free download and
they didnt receive the other things that came in the package deal. The
customer then contacted AEG Live who told them to contact the venue since
that was more on them. They were told that it would arrive at the venue and
to get it they need to show up an hour before the show. They wanted full
reimbursement since AEG promised that it would be sent to their house.
Within two weeks AEG commented back and said they were in the process of
a full reimbursement (Business Consumer Alliance, 2015). There are not

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many artists complaining about the services provided by AEG which is very
positive for them.
Live Nation has positive feedback from its consumers. They have a
website and all of the major social media accounts. They seem to have
positive customer feedback. If you have any questions you can post to their
Facebook and they try to respond within an hour. If you have a complaint you
can call them, but they dont have anything bad on their website or social
media accounts. There is a website called where you
can write compaints about companies. Live Nation only has two complaints
from 2015. The complains are about paying for a VIP pass which included a
meet and greet and not getting to meet the band or get anything for their
VIP pass. The other complaint was about a concert that got cancelled
because of a storm except some people were inside and they got refunds for
their tickets. The man called Live Nation about getting his tickets refunded
and they refused (, n.d.). There also arent any
complaints from artists who have used their venues or their services.
4.1.2. Strengths (SITUATION ANALYSIS)
AEG Live is a well respected company within the entertainment
industry. With their hands in almost every aspect of the entertainment
industry, they ofer artists and entertainers many great services. AEG owns
its very own merchandise company and own many large prominent venues
all around the world such as the O2 arena in London, Staples center in Los
Angeles, and MasterCard center in Beijing. AEG Live is comprised of touring,
festival, exhibition, broadcast, merchandise and special event divisions,
fifteen regional offices and owns, operates or exclusively books thirty five
state-of-the-art venues.(AEG, 2015) AEG has developed their business with
such a wide variety of services and been successful with satisfying the needs
and wants of their customers. AEG Live is known for some of the best and
largest tours like Taylor Swifts 1989 tour, as well as acts like Justin Bieber,

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Bon Jovi, and Kenny Chesney. AEG services are estimated to be very costly
but still have a great reputation. AEG is a privately own company but is said
to be worth around $8 to $10 Billion, and with touring becoming so much
more popular they are gaining even more revenue, so they are in a great
financial position. AEG has a very prestigious brand that is well known in the
industry and is well known for their success.
One of Live Nations biggest strengths is how many diferent venues
they have around the world. They have about 36 amphitheaters in the U.S.,
five arenas in Europe and one in the U.S., two clubs in the U.K. and eight in
the U.S., twelve House of Blues in the U.S., fourteen theaters in Europe and
sixteen in the U.S.. They also have over thirty festival sites located in the
U.S, Europe, South Korea, Japan, Canada, and Puerto Rico(Live Nation, n.d.).
Another strength is that they are the the biggest venue company and almost
have a monopoly.
4.1.3. Weaknesses (SITUATION ANALYSIS)
AEG is a very well known company and does a lot of business for a lot
of people. Their main weakness is that they are not clear enough with their
customers about what is included when you buy your ticket, VIP packages,
merchandise, etc. I want a refund for the 300.00 dollars I spent on a product
I never received (Business Consumer Alliance, 2015)! This woman had
ordered a VIP package for her daughter for a Justin Bieber concert. She was
upset that the package (which consisted of merchandise) did not arrive
before the concert date. Another complaint was simply Led to believe we
would receive tickets through the mail (Business Consumer Alliance, 2015).
Both of these issues could have been solved by AEG making it more clear
what the customer was getting and when on their website.
Live Nation owns a lot of venues and is the number one company in
their area. One main weakness is their concession prices. I was recently at a
concert and was charged $6 for a bottle of water. Not a case of water. One

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bottle. At first I thought these were the new California drought prices, but
then I remembered I was in a Live Nation controlled venue (Yousef, 2015).
Concert venues always have high priced concessions but for somethings
they go overboard. Water normally costs a little over three dollars for a 24
pack. If you go to a gas station it costs about a dollar for a bottle. Another
problem is that since there are so many venues sometimes not everyone
gets the right information. On the complaint website a man talked about how
he spend about $200 to get tickets to a concert and a meet and greet with
the band. He went and got the VIP tickets and once the concert was over he
was told that there was no meet and greet (, n.d.). Live
Nation should have made it more obvious what what the VIP tickets were for
and should have communicated that to the manager who would convey that
to the employees.
5. Market Positioning (SITUATION ANALYSIS)
To bands and artists seeking professionally organized and fun successful
tours, Back Beat Touring is a tour management company that ofers a variety
of touring services including lighting and stage design to make their next
tour a once in a lifetime experience.

Integrated Marketing Communications Strategy (TITLE ONLY)

Marketing Objectives (IMC STRATEGY)

Increase sales 40%

Increase brand awareness 100%

Increase market share 1%


Marketing Tactics (IMC STRATEGY)

In order to successfully promote our brand we are planning to attack

the market in many ways. We plan to use traditional and untraditional

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marketing strategies to promote our brand and gain customers. We plan to
attack the market from various angles, we will use things like brochures,
commercials, limited time promotions, podcasts and much, much more to
promote our brand.
First and foremost, we will focus our advertising eforts in magazines
and newspapers, on YouTube, and on a few television channels. Alternative
Press and Rolling Stone will be the two magazines we place our ads. The cost
for a full page, black and white ad in Alt Press would be approximately
$8,500 and the ad in Rolling Stone would be about $140,000 (Gaebler,
2014). We plan to place our commercials on MTV and Fuse. The commercials
promote our business as well as our various sales promotions. Those
promotions include, 25% of management services, free staging and design
planning, free custom bus wrap for a tour lasting at least 3 months, and free
t-shirts and promotional materials (stickers, song download cards, business
cards). We would have these promotions running at diferent times to
maximize their efectiveness. These commercials would run us, roughly,
between $15,000 and $100,000 apiece depending on the time of the day we
want to run them (Wagner, n.d.). On top of the normal TV advertisements we
would run the commercials as pre-roll ads on YouTube. That cost would vary
based on the number of people who viewed the whole ad, and for everyone
who watched it we would pay 10-30 cents (Alleger, 2012). Alternative Press,
Rolling Stone,Fuse, and MTV have similar audiences that is similar to our
target market making them a good fit to advertise our company. YouTube was
another good place to have our commercials, both because they are
potentially a cheap option depending on how many people view the whole
pre-roll ad, and because YouTube is a place where many musicians start to
establish a presence and some continue to have a presence as they become
more successful.
Some of the sales promotions we plan to ofer have their own costs on
top of the cost of spreading the word about them. The promotions for 25%
of management services and free staging and design planning cost us no

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money out of pocket, which is helpful to us as a business just starting out.
Our custom bus wrap promotion would cost roughly $10,000 per wrap (Bus
Bank, 2015). We also ofer free t-shirts and promotional materials as a sales
promotion. The cost of the t-shirts would be about $2,240 for basic shirts
(Custom Ink, n.d.). The stickers and other promotional materials would cost
close to what the brochures cost to print.
Other tools such as public relations and direct marketing are key for
our marketing strategy. For public relations we would set up interviews in
Alternative Press and Rolling Stone, as well as BryanStars, a YouTube
personality known for his interviews with people in the rock and alternative
genres. And lastly for our traditional marketing strategies, we would directly
market to our customers by having brochures in venues, at management
companies, and at music festivals. These brochures give an overview of our
company, the services we ofer and how to contact us. It would cost us just
under $90 to have 500 of them printed at Staples (Staples, n.d.). We would
also go to shows and talk directly to bands and managers to inform them
about our company and the services we ofer.
For non-traditional tools we will use word of mouth, mobile, viral
marketing, and guerilla marketing. For word of mouth we will have social
media like a hashtag for our company #backbeattour. We would have artists
use this hashtag when promoting the tour and we would use it to help our
guerilla marketing. We would also go to shows and talk with bands
personally. This way we could tell them what we are about and could tell
their friends who are in other bands.
We would also make a mobile app that is free to download. On this app
we would have countdowns for when someone's tour starts and the tour
destinations. We would also have secret things that only people with this app
will know like secret meet and greets with bands before or after the show.
This will give people an incentive to get the app. The cost to have the mobile
app created would be around $71,000 (Formotus, 2015).

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Next we would use viral marketing by trying to make a cheesy video.
The most viral videos are silly and fun and so we would make a silly
commercial which would include us using our name in a fun way. We will play
with the words and name of our company, You got the backbeat bro? Yo,
She got the backbeat bro! Simple and funny one-liners that people will love
and remember. That way people will find us and possibly call us to book
tours. The skills of our employees will allow us to complete the video inhouse for free.
Lastly is our guerilla marketing. We would buy a big van and put our
logo all over it. This van would randomly drive around to a public area and
would play free shows, a pop-up show. The shows will be fun and quick
performances by artists signed to our company. The cost of the van will be
around $50,000 (Commercial Truck Trader, 2015). To mix guerilla marketing
with sales promotion we would also tell people that the first 20-50 people
who tweeted a picture or video of the show with the hashtag would get 10%
of 2 tickets within a certain time. This is beneficial to both our company as
well as the bands who play these pop-up shows. This will generate people
who will go look up our company and the artist online.
On top of these traditional and non-traditional marketing tools, we will
post weekly podcasts with interviews and tips all about the touring and
music industry. We will have them available on the Itunes podcast channel
which will be free for listeners. As well has having them available on our
YouTube channel, which we will promote on our social media and website.
With these ideas for promoting our brand, our company plans to attack
the market and gain a strong customer following. By using both traditional
and nontraditional marketing tools such as the ones listed, we hope to
successfully promote our brand. We really feel all of our promotion mix tools
will help our company receive a lot of exposure and increase our revenue by
100% or more.

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7. References
3 tour managers tell us the real side of a life on the road - Industry Features Mixmag. (2015,
April 13). Retrieved from
AEG Live. (2015). About | Company Overview. Retrieved from
AEG Music. (n.d.). AEG Music. Retrieved July 8, 2015,
Alleger, J. (2012, August 7). How Much Do Ads on YouTube Cost? | Penna
Powers. Retrieved
Bus Bank. (2015). Bus Wraps: Commonly Asked Questions about them.
Retrieved from
Business Consumer Alliance. (2015, February 11). Complaints for AEG LIVE |
100086985 |
Business Consumer Alliance. Retrieved from
Boyle, K. (2013, June 29). Five facts about professional artists in the United
States - The

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Washington Post. Retrieved from
Commercial Truck Trader. (2015, June 21). Ford E350 Passenger Vans For
Sale. Retrieved
7C764865589 (n.d.). Live Nation Complaints & Reviews. Retrieved
July 18, 2015,
Custom Ink. (n.d.). Wholesale T-Shirts. Retrieved from
Dias, M. (n.d.). Music Clout - the tour manager. Retrieved from
Formotus. (2015, July 17). Figuring the costs of mobile app development |
Formotus. Retrieved

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Gachman, D. (2014, March 18). Arthur Fogel: The Man Behind Lady Gaga and
Mega-Million Tours - Forbes. Retrieved from
Gaebler. (2014, March 12). Rolling Stone - Magazine Advertising Costs.
Retrieved from
Gaebler. (2014, September 24). Alternative Press - Magazine Advertising
Costs. Retrieved from
Hutchison, T., Allen, P., & Macy, A. (2012). Markets, market segmentation,
and consumer
behavior. In Record label marketing (2nd ed., p. 34). Retrieved from

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Kusek, D. (2014, May 1). 5 Money management tips for indie musicians.
Retrieved from
Lee, T. (2012, January 30). Why we shouldn't worry about the (alleged)
decline of the music
industry. Retrieved from
Live Nation. (n.d.). Global Sites and Venues : Live Nation Entertainment.
Retrieved July 18,
2015, from
Lounsbury, M. (n.d.). Musicians Are Making More Money From Live
Performances Than
CD's Or Downloads. Retrieved from
MacNewton, C. (2012, August 15). [Photograph]. Retrieved from
McDonald, H. (n.d.). Careers in music - concert tour manager job description.
Retrieved from

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NAICS. (2012). NAICS Search. Retrieved July 14, 2015, from
Ozanian, M. (2012, October 15). Value Of AEG Disclosed To Be At Least $8
Billion. Retrieved
Pirie, K. (2014, January 30). Young bands, fans and touring live music
problems and
Retrieved July 15, 2015, from
Robertson, T. (n.d.). Diference Between Push & Pull Marketing |
Retrieved from
Staples. (n.d.). Custom printed brochures. Retrieved from

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Valencia College. (n.d.). The importance of channels of distribution. Retrieved
Waddell, R. (2014). Live Music's $20 Billion Year. Billboard, 126(42), 136-141.
July 8,2015 from
Wagner, N. (n.d.). How much does television advertising really cost? | Retrieved
Yousef, N. (2015, June 11). Inconvenience charges: Live Nation's concert
cons :: Comedy ::
Features :: Paste. Retrieved from