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National Centre for the Performing Arts

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Table of Contents

Executive summary......................................................................................................................................3

Introduction.................................................................................................................................................4

Marketing strategies....................................................................................................................................5

Marketing strategies adopted by the National Centre for the Performing Arts Beijing............................7

Preference for international architects................................................................................................7

Live telecast of the performances........................................................................................................8

SWOT Analysis.............................................................................................................................................9

Strength...................................................................................................................................................9

Weakness..............................................................................................................................................10

Opportunity...........................................................................................................................................10

Threat....................................................................................................................................................11

Conclusion and recommendations............................................................................................................12

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Executive summary

The establishment of the National Centre for the Performing Arts (NCPA) in Beijing is looked

upon as a benchmark of high quality performing arts in China. The organization has developed

unparalleled marketing strategies over the span of five years. Marketing is a crucial element that

brings cultural organizations to the path of success. Any form of art can be perceived as one

important indicator of sophistication and progress of a country, and rise in investment in such

activities can be equated with the improvement in the country’s development. In the past decade

China has shown significant investment for the development of art and the cultural features of

the country. This article presents an evaluative study of the marketing strategies adopted by the

National Centre for the Performing Arts (Beijing) (NCPA).

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Introduction

Visual and performing arts has always been a subject of huge interest in the oriental countries.

However, investment in this field has suffered a slack for several years in the past. Funding by

the government follows a long process of documentation and the groups or organizations that

make productions often find it difficult to obtain government funding (Kesavapany, Mani and

Ramasamy, 2008). Also there are no readily available public funds which can be utilized for art

investment (Chong, 2009). Since any form of art can be perceived as one important indicator of

sophistication and progress of a country, a rise in investment in such activities can be equated

with the improvement in a country’s development. With the decline of funding by the

governments public relations and marketing are the alternative ways in which these organizations

would succeed in expanding their business (French and Runyard, 2011). Of late, a number of

Asian countries have displayed heavy investments for the development of physical infrastructure

in these countries and strengthening the process of capacity development in the field of arts. One

of the most clearly exemplified examples is set by China. The establishment of the National

Centre for the Performing Arts (NCPA) in Beijing, a nonprofits organization of art, is looked

upon as a benchmark of high quality performing arts in the country. Another investment made by

the government of Hong Kong is in The West Kowloon Cultural District ("WKCD") (WKCD

Authority, 2012). The NCPA has been developed with the aim of becoming the cultural core in

the country. Since the day when NCPA was inaugurated, the organization has been functioning as

the icon of the nation’s art and culture. It takes various initiatives to improve the quality of

artistic performances in the country and also to launch activities to educate the mass about

universal art (CHNCPA, 2013a). The architecture of the establishment is worth $400 million has
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been developed in a way to throw a strong competition with the art centres of the United States

or Europe (Kahn, 2007).

There is another aspect apart from the rise in interest or growth in level of disposable income,

which influences the establishment and development of arts and culture in the modern Asian

economies. This article presents an evaluative study of the marketing strategies adopted by The

National Centre for the Performing Arts (Beijing) (NCPA). It also provides a relevant set of

recommendations for further improvement of the performances by the NCPA.

Marketing strategies

Corporate strategy plays a key role in marketing of any kind of art (Kerrigan, Fraser and

Ozbilgin, 2004). The function of marketing in cultural organizations takes a crucial position in

terms of product development and sales. Promotion of products increases exposure of the

products and their display, capturing greater public attention. Proper development of public

relation helps in maintaining good lines of understanding and communication between the

management team and the customers (Tench and Yeomans, 2006). While all the four elements of

the 4Ps of marketing are critical to success of the marketing procedure of any company, in this

section we shall discuss how promotions play a significant role in the field of arts. Promotion, in

any product or platform, points towards the benefits earned by the firms by communicating with

the target market. It reveals to the mass the kind of offer the company is going to make in the

near future. It develops the company’s enthusiasm to adopt policies through which the recruiters

are encouraged to hire more customer-facing staff and deal with customer decisions with greater

confidence. In this process the public expectations are also set which is a decisive factor in the

volume of sales achieved and the level of customer satisfaction (Hill, T. O'Sullivan and
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O'Sullivan, 2012). On the other hand, promotions also work on the minds of the customers to

modify their preferences to a large extent. If the arts and cultural departments of various

organizations or performing arts companies can promote their services strategically it assures the

potential customer that the decision made by them is right and valuable.

Quality is an essential ingredient that is considered while rating any product or service and an

essential element of marketing success. In the field of arts, the customers’ perception of

excellence is central to the level up to which the production would be successful. In this sphere,

various minor details augment the consumers’ experience; such as, the graceful moves of a

dancer, the appropriateness of a particular theatrical moment, the dexterity exhibited by a

painter’s works or simply the goodness imparted by the venue. Business organizations that walk

the path of sales-led success claim that success comes when an organization can sell its products

to the potential customers. In order to make it come true at times organizations also apply “high-

pressure sales techniques” (Hill, T. O'Sullivan and O'Sullivan, 2012, p. xii). With the true effort

and conviction companies might be able to sell anything, but, it is true that they cannot sell the

product more than once if it fails to satisfy a genuine requirement of the customer. Marketers of

art therefore need to be as fervent as any other sales representative in order to reach out to the

most potential customer. For a genuine success in the selling process of the products and services

of art, customers have to be seen as partners of business rather than as targets. Since the market

for artistic products and services depend more on the aesthetic consumption experiences of the

customers, than on satisfying their materialistic needs, development of long term rapport benefits

both the buyers and the sellers, on the basis of mutual gains (Hill, T. O'Sullivan and O'Sullivan,

2012).
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The National Centre for the Performing Arts has been established in the year 2007 and has

produced several productions either with cooperation from other forums and organizations or

independently. By the year 2015, NCPA has plans to deliver 50 productions in total; the number

is expected to grow above 60 considering the current standard of productivity (CHNCPA,

2013b).

Marketing strategies adopted by the National Centre for the Performing Arts Beijing

Preference for international architects

Preference for international architects is a key to producing world class projects. The National

Centre for the Performing Arts is a high profile public project funded by the Government of

Beijing. It is an international establishment designed and developed by some of the most

renowned architecture firms of the world. The structure of the NCPA is a masterpiece design

created by the well known architect, Paul Andreu (Ren, 2011). Along with several other projects,

such as, the headquarters of CCTV in China, “the National Olympic Stadium” (Ren, 2011) or the

Terminal 3 of the Beijing International Airport; all these structures have been made by architects

that have a global fame. These are signature projects which have helped to transform the picture

of the capital city of China. Beijing, which was once known as a post-socialist city of China, has

now become famous as a global metropolitan city (Ren, 2011). This act of inviting international

designers to design pieces of art in the city and the design competitions held in Beijing have

gradually become an established practice as other cities in the country are imitating Beijing.

Actions such as, searching for global architects and popularizing the projects, can be explained

by strict market logic. Private developers and organizations benefit largely on hiring international

architects to design the projects. Radical architectural designs, especially those created by the
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internationally acclaimed architects, is a cutting edge marketing tool. It augments their brand

name and goes a long way to promote their products. Sale of their projects is automatically

boosted with the rising brand value. Association with these well known architects works in two

ways for the local developers. They can generate a social image for themselves as highly

sophisticated patrons of art and architecture. In this way they do not appear as profit driven

speculators in the real estate industry. At the same time, such associations enrich their image in

this industry which push up their acceptability and popularity in the market. It differentiates their

projects from the rest of the crowd in the property market. The prominence of an international

architect acts as a status symbol for the developer.

Live telecast of the performances

The NCPA has recently presented to the world a production that has not been experienced by the

world before. In the month of April in 2011, NCPA has broadcasted a live version of a concert

from one of the concert halls in the centre. The performance by the world class reputed

performer Yundi Li was aired live on a television channel (Medici TV, 2012). This action has

brought the presence of NCPA under the floodlight of attention from the music lovers all over the

world. Again next year, in the month of June 2012, the presentation made by the participants at

the final level of the Plácido Domingo's Operalia competition has been aired live on television.

Patrons were able to watch the show free of cost. This has strengthened the position of the NCPA

in the industry of performance arts and helped it grow as a competitor to the rest of the centres

present in Europe and the USA.

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SWOT Analysis

The strengths of NCPA, weaknesses suffered by the organization, opportunities available to the

organization and the threats faced by the organization are crucial in the decision making process

of the organization. Hence while evaluating the marketing strategy it is important that the SWOT

analysis of the company be made. It would help in making recommendations for the future.

Strength

The NCPA is a benchmark in the performing arts industry in China as well as the entire world. It

enjoys several strengths owing to its highly renowned brand value and the fame it has gathered

all through these years. The venue is a strong positive force since the centre is strategically

situated to maximise its effect. Still so far, it is the best auditorium in the country that holds

shows on performing arts. It provides memorable experiences for the entire family and has an

appeal in and beyond China. The organization has a culture of healthy teamwork and all the staff

is knowledgeable. In order to provide personalized services to the artists and theatre troupes, the

staff research areas that they can improve upon and reviews the standard of each of the services

offered. There is the booking facility for the customers who can also book tickets without

visiting the place, through the booking hotline (CHNCPA, 2013c).

The organization is capable of making a balance and coordination between commerce and arts.

The management team focuses on brand promotion while promoting high standard of art. This

makes a good combination of both quality of the services and level of performance. It faces

strong competition from the other similar centres in other parts of the world, although such

competition is limited, since the NCPA is positioned at such a high rank.

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Weakness

Although the NCPA delivers world class productions most of its productions deliver a local taste.

This creates a county focus on the performances which have worldwide audiences. Another

shortcoming is marked by the box office hours. The box office hours are limited between 9.30

am and 6 pm on non performance days and on days that have performances, the box office hours

are extended until 7.30 pm (CHNCPA, 2013d).

The programmes mainly consist of opera, music recital, dance recital and concerts. The

curriculum of programmes has been built keeping in mind the more mature visitors. Although

there are different opportunities too for the younger and agile population to take part in the

different activities, the bulk of the programme attracts the more mature audience. Besides,

improvement in infrastructure and performances require funds which is tough to get sanctioned

at every point of time. Thus lack of funds poses a serious hurdle to the growth of the organization

in terms of infrastructure and service offerings. Since this is a non profit organization the

organizers are not driven by profit motives. This might be a reason why the organization lacks

motivation to most optimum business decisions. Although within the span of 5 years the

organization has reached a pinnacle of success, it might still lag behind profit-driven

organizations in terms of making coordination between quality of services and commercial

objectives.

Opportunity

NCPA has different clubs which are open for members. It offers membership facilities with the

commitment to fabricate “a spiritual home for art lovers” (CHNCPA, 2013d). The organization

believes that art influences lives of people to great extent and it has dedicated itself to offering its
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audiences exquisite art events. It provides opportunity to the members to explore the world of

art, conducts various educational workshops to help the people appreciate works of art, share

their comments and realizations and above all relish the beauty of art without any boundaries.

This provides an excellent scope for the organization to build a relationship with the audience

and work in close contact with the people. Due to this the staff can update their knowledge about

customer demand and further provide more satisfactory services. The membership facilities in its

various clubs attract innumerable customers which the organization can develop as a loyal client

base. Due to the good name earned by NCPA investors enjoy a feeling of security about the fact

that it is profitable to invest in this institution. The most renowned performers across the globe

put up their performances in NCPA auditoriums since they face the most experienced and

enthusiastic audiences. NCPA can exploit these connections and to strengthen its international

practices and its relationship with high profile clientele (CHNCPA, 2013e). Besides, NCPA is

strategically located in the heart of the capital city adjacent to the Tiananmen Square. There is a

stark contrast between this modern architecture and the traditional environment surrounding the

opera. Although this is considered unfavourable by some locals, following Andreu’s argument

NCPA has huge scopes of growth, since this is a huge opportunity for Beijing to become an

unrivalled tourist attraction with such distinctive features (Mobile Reference, 2011; Rentschler

and Hede, 2007).

Threat

The organization has reached a most coveted position and is equipped with various incentives to

maintain its position. However, the one at the top runs several risks. Since there are highly

competent rivals in this industry, the company runs the risk of losing its customers, for whom the

cost of switching brands is not very high. In this era of technological advancement, every other
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competitor has the opportunity to surpass the NCPA in terms of technology. This is a huge threat

for the organization since technological backwardness is a serious cause of concern for any

organization in the entertainment industry. The involvement of the audience is not very high in

the programmes presented by NCPA. Other players might make use of this opportunity to extend

their familiarity with the mass thereby squeezing away market share from NCPA (CHNCPA,

2013d).

Conclusion and recommendations

In the recent years researchers have observed that common interest in arts is increasing among

the people of the Asian countries. A report by The Australia Council has revealed in the context

of Asian countries, that there exists a strong and vivid correlation between increased interest in

the field of arts and growth in investment in this field. There is another economical aspect that

can be correlated with the increase in investment in the various aspects of arts in many of the

Asian economies. In simplistic terms, this increase in investment can be attributed to the growing

level of disposable income observed in both the developing and developed economies in Asia

(Asian Century, 2012).

Marketing plays an important role in structuring and developing important insights into the

nature of aesthetic consumption (O'Reilly and Kerrigan, 2010). Aesthetic experience is a

significant part of marketing in arts. Hence in the next one year NCPA should focus on

enhancing the aesthetic experience of consumption of priceless features of art that instigates the

consumer to aspire for more of such experiences. Along with quality, NCPA also has to focus on

the presentation of the programs. Packaging can play a vital role in the product marketing and it

augments the suitability of the products. Hence NCPA has to improve its creative presentation in
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order to make its offerings more compelling and exciting (Bernstein, 2006). With proper

marketing NCPA would discover more potential customer bases thereby improving the

organizations’ commercial performances.

In order to maintain its position at the top, the organization has to make deeper programming

research. Researching is critical to preserving existing market share and also updating the

services offered with the evolving preferences of the consumers. More audience targeted

programming is required in order to tap the depth of the potential market and attract a greater

share of the audience market. Besides, research and development on the technological front is

also a necessity. The organization has to develop its technology constantly so as to remain

equally attractive to its customers and not to fall behind its competitors.

The productions of NCPA cater less to the younger generation and also put maximum focus on

local cultures. The organization has to diversify its programmes with performances by artists

from all over the world so that the concerts suit the preferences of a wide range of customers.

The centre has a vast international network of performers, organisers and clients. In the

forthcoming years it must concentrate on extending its connections further and improve its

operations and deals with its foreign counterparts to implement effective control over its closed-

loop management system.

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