Opera Philadelphia: Segmentation Strategies for Changing Markets
In his new position as general director of Opera Philadelphia, David Devan decided that a serious assessment of market preferences and behaviours was necessary to overhaul the Opera’s go-to-market strategy. Between 2010 and 2014, the Opera had experienced a steep decline in household (HH) subscriber and single-ticket buyers coupled with severe revenue fluctuations. A further decline was on the horizon for the start of the 2015–2016 season with both HH cohorts. Devan turned to his marketing team, led by Ryan Lewis, to manage this crucial research- and strategy- development initiative. Devan was convinced that an innovative strategy was required to first stabilize the subscriber base while attracting new single-ticket buyer markets. He also felt that a slight misstep in repositioning the Opera could easily result in further loss of its remaining subscribers—many of whom were also loyal donors. By August 2014, Devan had to assure the research was finalized, decide on, and present to the board a new segmentation with a targeting and positioning strategy that would increase the following season’s revenues. With only a few months remaining, research results were still coming in. Time was not Lewis’s friend. OPERA PHILADELPHIA Founded in 1975, Opera Philadelphia had survived as a performing arts organization that offered traditional opera performances to traditionally minded audiences. The Opera listed itself as an American opera company and the only company in Philadelphia that produced grand opera. It also positioned itself as committed to embracing innovation and developing opera for the 21st century. The primary venue for Opera Philadelphia was the Academy of Music, which was considered one of the most treasured and legendary theatres in the world, over 150 years old, stunning, and opulent. Opera Philadelphia’s successful productions depended on its upstream relationships with grant providers and set designers as well as numerous downstream partners, including venues such as the Academy of Music and the Perelman Theater, part of the Kimmel Center for the Performing Arts.

Answer all of the following questions. Refer to the Opera Philadelphia case study”.

1. Conduct a detailed SWOT (strengths, weaknesses, opportunities and threats) analysis on Opera Philadelphia using the information provided in the case. (14%)

2. Conduct a detailed Porter’s 5 forces analysis on Opera Philadelphia using the information provided in the case. (14%)

3. Market research conducted in 2014, uncovered 8 uniquely defined segments. Describe each of the segments in detail on the basis of background and psychographic characteristics. (28%)

4. Use measurable, substantial, actionable and accessible criteria to identify the target segments. (14%)