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Finding a blue ocean in the festival industry

Schmetjen, L. (2012) Finding a blue ocean in the festival industry.

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Abstract:There are many festivals in Germany. People like festivals, but it occurred that the market is saturated and mature. No major innovations have been noticed in the last years. Therefore the decision was made to search for an innovation which could change the scenery of the current festival market. The central question which leads this research is: How could an innovative business model of a festival, which provides superior value to future customers, look like? In order to find an innovation the first four steps of the blue ocean strategy were followed. This theory suggests to look across market boundaries, to focus on the big picture, to find out what the consumers want and at last to create a business model. Business models are useful to write down an idea or concept in a structured way. Furthermore business models are said to be necessary if one wants to implement an innovation successfully. The theory recommended to get information about the values and needs from current customers of the market and non-customers. Non-customers can tell what they do not like about the product or service and what they would value. Instead of interviewing normal customers, the decision was made to talk to lead users. Lead users appear to be more valuable than normal customers, because they tend to give more and richer information. This is because they are the experts in their field. Indeed the data obtained from the interviews with lead users and non-customers were very rich. Some consensus could be found about what is valued by current customers and non-customers. The main conclusions which can be drawn from the interviews is that most people like the basic concept of a festival: three days full of music, peace and fun; but they do also miss a few aspects. Many respondents agreed more luxury would be nice; a comfortable place to sleep and good sanitary facilities would be definitely valued. Moreover the respondents indicated that they like entertainment at a festival. Visitors like to see, hear, feel and do stuff. Cultural, artistic and sportive things and activities would be embraced. The new business model responds to these needs. It is proposed to organize a music festival in a vacation park and make the general artistic offer more diverse. Then people have the option to book additional luxury if they want, moreover their longing for more entertainment will be satisfied. Due to the vacation park large investments in electricity and infrastructure can be saved and extra income can be generated by the additional luxury options. Consequently the festival provides superior value to customers and it is likely to be more profitable.
Item Type:Essay (Master)
Clients:
ESK Events & Promotion GmbH, Cuxhaven, Germany
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/62321
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