CIRQUE DU SOLEIL - Case: Cirque du Soleil December 10, 2007...

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Unformatted text preview: Case: Cirque du Soleil December 10, 2007 1.) Based on what you have read in the case, outline a rudimentary SWOT analysis for Cirque du Soleil. The strengths that Cirque du Soleil has is that every one of the fifteen shows that Cirque has ever produced over its 20-year history have all had returned a profit. "In contrast, 90 percent of the high-budget Broadway shows that strive to reach the same target market fail to break even." i.e. The Broadway show Wicked. (That's why its producers needed so many different marketing strategies). Cirque du Soleil is considered to be the most successful entertainment company in the world. As for weaknesses I couldn't really spot any. The only weakness that I could see accruing is that there is no predetermined budget and although over the past 20 years Cirque du Soleil have been in business, they've always come on top, I think this may hurt them in the future to not have a predetermined budget. The opportunities that Cirque du Soleil have to offer is that there are more than "300 seamstresses, engineers, makeup artists sew, design, and build custom materials for exotic shows". These people in the production staff often invent materials, such as the special waterproof makeup, which help them in accomplishing some of their amazing performances that occur in a "1.5 million-gallon tank of water". Also, Cirque du Soleil are always looking for new talent and they have a "key in-house resource is Cirque's team of 32 talent scouts and casting staff that recruits and cultivates performers from all over the world. The department maintains a database of 20,000 names, any of whom could be called at any time to join the members of Cirque's cast, who number 2,700 and speak 27 languages." So basically they are marketing to all segments. By having 27 different languages this allows many different diverse viewers of Cirque du Soleil to enjoy it in their own language. The only threat that I can see is that Cirque du Soleil has is the high pricing for their tickets. But, even with ticket prices that start at $45 and can run as high as $360, the company sells about 97 percent of all its seats at every show. 2.) List and describe three keys to Cirque du Soleil's competitive advantage. The first main keys to Cirque du Soleil's competitive advantage is that Cirque du Soleil borrows concepts from the opera, theater, rock music and ballet. All these diverse elements incorporated into the production help diversify the audience creating a bigger market of viewers. The second key to Cirque's success is that Franco Lamarre, one of the main people in charge of Cirque du Soleil, guides the company with an invisible hand, making sure that business policies do not interfere with the creative process he believes that "the creative people should run it". Daniel Dragone, a Beligian, is in charge of a team of creative and production personnel. This team does not have a predetermined budget and so they are able to spend whatever amounts of money on the content, style and material required for each project. 3.) Explain how Cirque du Soleil implements, evaluates, and controls the elements of its marketing plan? By creating a database of 20,000 names with those 20,000 people knowing that at any time could be a member of the Cirque's cast of 2,700 is essential. Having backup people is really necessary especially backup people who can speak 27 different languages. With ticket pricing that starts off at $45 and can go as high as $360, there is a sell out at almost all it's shows and they make about $500,000 a week in sales. Although there is no predetermined budget, the company still seems to come on top always having a returned in profit. The reason why Franco Lamarre "claims that his business is successful is because he lets the creative people run it". He makes "sure that the business policies don't interfere with the creative process", hence the reason for no predetermined budget. ...
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This essay was uploaded on 04/22/2008 for the course MRKT 101 taught by Professor Vishalkashyap during the Fall '07 term at Xavier.

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