2. “ VERY HIGH”
Low degree of Vertical Integration
Low supply of Big Names Act
Workforce Demands
High Cost forStar Performers
High Cost for wild animal trainers
High Labor & Travel Cost
Difficulty in Animals Transportation
Low Supply of Exotic Animals
3. “ VERY HIGH”
Low Brand Loyalty
Change driven Industry
Technology driven
No direct Competition due to Large Share
“LOW”
4. Low CLV
Low Switching Cost
Lack of unifying theme and bewildering acts. Hence could not compete with movies & other entertainment sources
Highly localized performance
Acts carried over to next year, so low market power due to no novelty
“HIGH”
5. Highly Price Elastic
Target audiences were only kids and family
Low focus on commercialization led to inefficient processes
Lowefforts made to increase the customer base and attract currently non-existent customer segment e.g. youth/adults
“HIGH”
6. COMPEITION/RIVALRY
“HIGH”
Low Market Growth
Declining Demand
Alternate Sources of Entertainment
Low degree of Product Differentiation
Live Entertainment -declining Industry
7. HIGH COST
LOW CLV
LIMITED TG
DECLINING REVENUE
LOW
MARGIN
LOW PROFITABILITY
INDUSTRY ATTRACTIVENESS –“LOW”
8. LOW
MEDIUM
HIGH
STRONG
MEDIUM
LOW
INDUSTRY ATTRACTIVENESS
BUSINESS UNIT STRENGTH
Ringling & Brothers
Good to Invest
Bad to Invest
SITUATION ANALYSIS
Barnum & Bailey
9. LOW
MEDIUM
HIGH
STRONG
MEDIUM
LOW
INDUSTRY ATTRACTIVENESS
BUSINESS UNIT STRENGTH
Ringling & Brothers
Barnum & Bailey
Towards late
20thCentury
Good to Invest
Bad to Invest
SITUATION ANALYSIS
10. BIG NAMES
ACT
EXTERNAL
IMAGERY
ENHANCED
VISIBILITY
Equestrian Acts
Clowns
Acrobats
Jugglers
Fancy Tools
Electric Lights
Moving Pictures
Large Tents
Educational
Entertainment
“Roman Circus Maximus”
Three Rings Model
FACTORS TO COMPETE
11. BIG NAMES
ACT
EXTERNAL
IMAGERY
ENHANCED
VISIBILITY
Equestrian Acts
Clowns
Acrobats
Jugglers
Fancy Tools
Electric Lights
Moving Pictures
Large Tents
Educational
Entertainment
“Roman Circus Maximus”
Three Rings Model
FACTORS TO COMPETE
12. Target Market
Frame of
Reference
Point of
Difference
Reasons to
Believe
•Psychographic Segmentation
•Children & Families
•Big Names Act
•External Imagery
•Price Concessions
•Enhanced Visibility
•Better Seating Capacity
•Exotic Animals
•Live Show
•Established Names
•Initial Marketing
Traditional Category Identity
Blue Ocean Strategy
CATEGORY IDENTITY & POSITIONING
16. Cirque du Soleil’s brand brings consumers to partner venue
Contributed to doubled earnings growth of three largest casino partners
NY-NY experienced 23% increase in net revenues given the addition of Zumanity
MGM increased 13% increase in slot revenue attributed to Kà
Redefined Experience
Unique Positioning
Win-Win Partnerships
Customer Loyalty
Source: Wharton School
New Avenues for Growth & Unique Product Offerings
17. The typical Cirque du Soleil customer is affluent and loyal to the brand
Redefined Experience
Unique Positioning
Win-Win Partnerships
Customer Loyalty
70% repeat customer base
Targets sophisticated and educated adults
$75,000+ in average annual income
Source: Wharton School
High Customer Engagement & Increasing CLV span
18. Redefined Experience
Unique Positioning
Win-Win Partnerships
0
100
200
300
400
500
600
700
800
Revenue (CAD$ millions)
0
2
4
6
8
10
12
Annual Tickets Sold (millions)
Customer Loyalty
70 million tickets sold by 2007
Source: Wharton School
Low Cost, High Revenue, Higher Profitability
