• 1.

0 Executive Summary
• 2.0 Situation Analysis
o Market Summary
 Target Markets
 Market Analysis
 Market Demographics
 Market Needs
 Market Trends
 Market Growth
o SWOT Analysis
 Strengths
 Weaknesses
 Opportunities
 Threats
o Alternative Providers
o Service Offering
o Keys to Success
o Critical Issues
• 3.0 Marketing Strategy
o Mission
o Marketing Objectives
o Financial Objectives
o Target Markets
o Positioning
o Strategy Pyramid
• 4.0 Financials
o Break-even Analysis
 Break-even Analysis
 Break-even Analysis
o Funding Forecast
 Funding Monthly
 Funding Forecast
o Expense Forecast
 Monthly Expense Budget
 Marketing Expense Budget
• 5.0 Controls
o Implementation
 Milestones
o Marketing Organization
o Contingency Planning
o

1.0 Executive Summary

The value of live theatre is immeasurable. The Players Theatre Company offers self-growth and education to
all of its audiences. Our classes for students are focused on building self-confidence through theatre games
and performance. Our classes for educators offer new and interesting ways in how to approach traditional
academic subjects, such as math and social studies. We also teach new ways in how to relate to students
and how to optimize the learning time in the classroom. Moreover, The Players rework traditional pieces and
create new pieces to fit in with the fast-paced times of the end at the 20th century. Our performances are
always a new experience for audiences even if it is a new rendition of Romeo and Juliet. We try to relate as
performers to our contemporary audience and offer new insights on our society.

2.0 Situation Analysis

The Players Theatre Company has just emerged in the press as a reputable, quality theatre company. There
has been an increased interest in the community in our classes and productions. Currently, traditional
theatre is available to the public, but there has been a call for educational performances. We want to take
advantage of this current popularity to grow in funding and in audience (both quantitatively and
geographically).

2.1 Market Summary

We are experiencing growth in interest in theatre from the community and the current trend in education and
entertainment. Also our demographics are widening, encompassing more and more people from different
walks of life. There is definitely an opportunity here to be seized.

Target Markets

Market Analysis
Market Analysis
2001 2002 2003 2004 2005
Potential Customers Growth CAGR
General Audience 30% 130,000 169,000 219,700 285,610 371,293 30.00%
Educators 50% 25,000 37,500 56,250 84,375 126,563 50.00%
Parents 20% 50,000 60,000 72,000 86,400 103,680 20.00%
Total 30.88% 205,000 266,500 347,950 456,385 601,536 30.88%
2.1.1 Market Demographics

Market Geographics

As a theatre company (as opposed to an established theatre), we have the flexibility to move from region to
region giving us greater access to a wider audience. Currently we are restricted to our county because of
our limited contacts, but we are focusing on growing to eventually encompass the entire West Coast and
possibly the rest of the country.

Market Demographics

Most people who go to the theatre go to see live theatre. Since movies, home video rentals and TV are
prevalent, a theatregoer is not a hard sell. They want to be there. They have made a conscious choice about
how they wish to be entertained. These people can be of any age, any nationality, and any gender. We have
low ticket prices so we can include all levels of economic status, but most theatregoers are of middle
economic status since most theatres tend to have high ticket prices ($15-$20). The common factors,
however, are the following:

• Value the arts.

• Usually a high level of education.
• Background of exposure to the arts, or even an education in the arts.
• Ages vary from young adults to the elderly.

Market Behaviors

Theatregoers are loyal consumers. If they like a show, they will come back for other performances. However,
the frequency with which the average audience member goes to a show is most likely once a month,
oftentimes less. Teachers and students, however, want more and more live performances to energize their
curriculum and the call for theatre is frequent.

2.1.2 Market Needs

The value of live theatre is immeasurable. The Players Theatre Company offers self-growth and education to
all of its audiences. Our classes for students are focused on building self-confidence through theatre games
and performance. Our classes for educators offer new and interesting ways on how to approach traditional
academic subjects such as math and social studies. We also teach new ways on how to relate to students
and how to optimize the learning time in the classroom. Moreover, The Players rework traditional pieces and
create new pieces to fit in with the fast-paced times of the end at the 20th century. Our performances are
always a new experience for audiences even if it is a new rendition of Romeo and Juliet. We try to relate as
performers to our contemporary audience and offer new insights on our society.

2.1.3 Market Trends

The trend in education is towards breaking traditions and discovering new ways in how to teach and how to
relate to students. For example, teachers are going to seminars about the different ways people learn:
visual, aural, etc. The call for something new is where our theatre company steps in. Not only do we offer
classes but also performances that draw from history, social issues, and literature, and we present them in a
new non-traditional format.

As theatre becomes more and more commercial, and with the burst of touring Broadway shows, more and
more people are becoming interested and aware of the value that live theatre has for our communities. Even
non-traditional shows are selling out to audiences who just five years ago would have never stepped inside
a theatre.

Market Forecast

2.1.4 Market Growth

The market trends discussed in the previous topic point toward a market growth currently estimated at 30%
for the next two years. We would like to take advantage of this and try to create growth in our audience by at
least 50% by expanding our tours beyond our home county and then outside of the state, and so on.

Target Market Growth

2.2 SWOT Analysis

The following is an outline of The Players Theatre Company's strengths, weaknesses, opportunities, and
threats. Currently our strengths and opportunities outweigh our weaknesses; however, our weaknesses
punctuate our need for more of the following resources: time, employees, and funding.

2.2.1 Strengths

• Dedication of volunteers and management.

• Creative company members.
• A cooperative work environment.
• Members are well-educated in areas of expertise.
• Efficient in use of materials.
• Low overhead and designed to adapt to the market's needs.
• Offering an affordable theatre experience.

2.2.2 Weaknesses

• Limited employees.
• Limited time because of employees.
• Limited financial resources.

2.2.3 Opportunities

• Excellent reviews of current productions.

• Letter of recommendation from local school district head.
• Possible interview with American Theatre magazine.
• Need for live theatre in our market.
• Diminishing experiences offered through schools and other publicly supported performance
activities.

2.2.4 Threats

• Loss of government grants.

• Bad reviews.
• Change in audience attendance (most hurtful).
• Competitive experiences, including dinner theatre.
• Challenges securing performance facilities.

2.3 Alternative Providers

Other local theatre companies offer performances of lesser quality compared to ours, which has been stated
repeatedly in newspaper and theatre magazine reviews. Also, our tickets are priced from $3-$8 less than
other companies, making us more accessible to a wider audience. Two companies: the Shakespearean, and
the Downtown, have opened classes to students at, however, a higher price, and in a limited venue. We take
our classes to the schools and offer a sliding fee scale, so that any student can attend. What is most unique
about The Players, is that we take our performances on tour to regional school districts and will sometimes,
depending on our financial situation, offer these free to poorer communities.

Also we must keep in mind, that there are other forms of entertainment, such as movie theaters, video
rentals, and the option of theatregoers travelling to other markets with live theatre, i.e.. New York. However,
we are focusing on offering services that none of these provide, such as educational seminars. Film
entertainment is very different from a live theatre experience so just in that aspect, we offer something
unique. Travelling to view live theatre is often not an option for many people, and our tours fill this gap in the
market.

2.4 Service Offering

• Live theatrical performances cost us $1,000 for a four week run for a
general audience.
• Theatre seminars cost us $50 per class.
• School/Tour performances cost us $1,000 per show (sometimes already accounted for with an
established show) plus travel expenses ($500-$1,000) for educators and students, and
occasionally a general audience in a small community, ie. Warm Springs Reservation.

2.5 Keys to Success

The following we consider to be our keys to success:

• Interns and dedicated volunteers.

• Re-use of previous sets, costumes, and props to save money.
• Market awareness.
• Funding to support the organization.

2.6 Critical Issues

Our major issue to face is lack of audience. We have a solid foundation of dedicated, creative workers that
make things happen, but our business depends on there being an audience--a good-sized audience at that.
If our following decreases even to 500, that is not enough for us to grow or even sustain our business.
However, with the combined experience, education, dedication, and innovation of our company, we can
implement plans and strategies that will not only guarantee a growth in audience but in our business as well.

3.0 Marketing Strategy

In our company, we have a pool of resources in our staff to draw from. We plan to use our combined effort to
establish a stronger relationship with our local community and regional communities by performing and
teaching seminars at the surrounding schools.
Our strategy is based on the concept that:

1. Awareness precedes ticket sales.

2. Quality performances generate repeat purchases.

3.1 Mission

The Players Theatre Company was created to bring a higher level of entertainment to people from all walks
of life. We are dedicated to bringing quality education, self-growth, self-confidence and social issues to our
public schools by establishing relationships with communities and their educational institutions.

3.2 Marketing Objectives

Our objective is to increase our audience by at least 50%, to expand it geographically into other regions of
the state, and to gain more recognition among the public school districts and other educational institutions.

1. Increase general audience by 50% (measured in ticket sales...currently we

have the capacity to sell 1,200 tickets per month, but on average we are
only selling 80% of that).
2. Set up a tour that includes at least one school from each district in the
state which will start spring term of 2000 with two performances per
school.

3.3 Financial Objectives

Our financial objectives include the following:

• Increase funding by 50%.

• Increase public contribution (both corporate and individual) by 10%.
• Meet our financial obligations for the fiscal year of 1999.

3.4 Target Markets

We are targeting a general audience that consists of adults, children, and the elderly with an interest in
entertainment and the arts. We are also targeting parents of children from the ages of 5 to 17 for the theatre
seminars we hold at the schools and at the after-school care programs. Another target market for us is
educators from all levels of education. We offer a unique and valuable experience for their students and
themselves with our performances and seminars.

3.5 Positioning

For educators and parents alike who value education and positive experiences, The Players Theatre
Company offers a self-esteem boosting, awareness-strengthening, and educational theatrical experience for
the children and the educators involved. Unlike the other companies in town, we focus our energies on
education and self-growth for our pupils and audiences with innovative and informative productions and
seminars.

3.6 Strategy Pyramid

Strategy:

Strengthen our relationship with school districts and other educational institutions that are our major
supporters in funding and business.

Tactics:

• Sample performances to gain notice.

• Connect with school administration.
• Contact and communication with audience members.

Programs to implement our tactics:

• Provide sample performances of popular texts for English and other Literature classes at local high
schools during the months of September and October 1999.
• Free performances at the local folk festival in July 1999.
• Attend school board meetings for the rest of the school year.
• Introduce ourselves to the school district administration by performing at the fundraising gala in
June.
• For every Sunday matinee, hold a seminar after the performance for interested audience members,
beginning with the start of the next show in June 1999.
• Monthly mailings of informational brochures to area school districts and districts in other counties
as well, starting June 1999.
• Opening night after-performance parties for cast and audience, inviting reviewers and other special
audience members (ie. School representatives).

.0 Financials

Right now, we perform three nights a week per a four-week run, which gives us a net sales (after production
costs of approx. $1,000) of $7,400 per month. We expect to grow in audience by 50%, which will increase
our sales by $4,200 per month.

4.1 Break-even Analysis

The fixed costs are based on our monthly budget for a show, including production and promotional
materials. The Average-Per-Unit revenue is based on what we receive per person, per month, i.e. ticket
sales and seminar fees. The Average-Per-Unit Variable Cost is based on how much it costs us per person
for each show and seminar.

Break-even Analysis
Break-even Analysis
Break-even Analysis

Monthly Revenue Break-even $1,017

Assumptions:
Average Percent Variable Cost 13%
Estimated Monthly Fixed Cost $1,000

4.2 Funding Forecast

We are expecting sales of $94,500 for the year 2000 based on current earnings. With the expected growth
of our audience, and in consequence our reputation, we expect to grow in audience by 50% and in individual
and corporate sponsors by a total of 40%. The seminars are expected to grow 30%. The NEA government
grant of $10,000 is budgeted over the year, and we are hoping to receive another grant for the following
year.

Funding Monthly
Funding Forecast
Funding Forecast
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
Funding
Ticket Sales $94,500 $141,750 $153,090 $165,337 $178,564
Individual Sponsors $6,000 $7,200 $7,776 $8,398 $9,070
Total Funding $100,500 $148,950 $160,866 $173,735 $187,634

Direct Cost of Funding FY 2002 FY 2003 FY 2004 FY 2005 FY 2006

Ticket Sales $12,000 $18,000 $27,000 $40,500 $60,750
Individual Sponsors $960 $1,152 $1,382 $1,659 $1,991
Subtotal Cost of Funding $12,960 $19,152 $28,382 $42,159 $62,741

4.3 Expense Forecast

We have minimal fixed costs since a large part of our budget is based on cost per show. We are committed
to spending $1,000 per show. This includes royalties, rent of performing space, printing of programs, posters
and flyers, and production materials (wood, paint, costumes, etc.). Of that $1,000, we have allotted $80 for
paper ads (newspaper, magazines and sometimes radio), and $50 for bulletins (posters and flyers). For our
free performances, we usually have a production in progress so we already have a complete set, costumes
and props to draw from. The only cost in this case is transportation for the company, rent of space (if
necessary) and food. This is estimated at $100, taking into account that many of our free performances
occur in parks with no fees or that we are invited to schools with no rental fees. The brochure mailings cost
of $500 per month is probably a high estimation, but this program will be focusing on three different
categories of our audience so it is worth it. These fees are separate from the production budget.

Monthly Expense Budget

Marketing Expense Budget
Marketing Expense Budget
FY 2002 FY 2003 FY 2004 FY 2005 FY 2006
Paper ads $840 $924 $1,016 $1,118 $1,230
Bulletins $525 $600 $600 $600 $600
Other $6,000 $6,000 $6,000 $6,000 $6,000
------------ ------------ ------------ ------------ ------------
Total Funding and Marketing
$7,365 $7,524 $7,616 $7,718 $7,830
Expenses
Percent of Funding 7.33% 5.05% 4.73% 4.44% 4.17%
5.0 Controls

This plan will go into action by June 1999. We want to see our growth progressing by comparing our month-
end ticket sales with May. We want to connect with area and other county school districts, laying the
groundwork for a Fall season of touring. We will discuss and monitor this growth with quarterly reviews of
progress through year one.

5.1 Implementation

The following table maps out our milestones for the programs we want to start implementing in June. The
costs of the monthly mailings and opening night party are likely to change once they are implemented and
we are able to effectively determine our costs. The programs that end in September may end earlier if they
are successful in promoting our company and we have no need to continue them. Most likely we will
continue with the Opening Night party to stay in touch with the desires and needs of our audience. All of our
program managers are aware of the following milestones and are already working on implementation. We
are determined to get all programs running by the first of June.

Milestones
Milestones
Advertising Start Date End Date Budget Manager Department
Other $0
Other $0
Total Advertising Budget $0
PR Start Date End Date Budget Manager Department
Sample performances for high
9/1/1999 10/30/1999 $100 Camas PR
school classes
Folk festival performance 7/1/1999 7/31/1999 $100 Kate PR
Performance at Fundraising
6/1/1999 6/30/1999 $100 Kate PR
Gala
Sunday seminars 6/1/1999 9/1/1999 $150 Mark PR
Company
Opening Night Party 6/1/1999 9/1/1999 $1,500 PR
Board
Total PR Budget $1,950
Direct Marketing Start Date End Date Budget Manager Department
Monthly mailings 6/1/1999 9/1/1999 $1,500 Kenne Direct
Other $0
Total Direct Marketing Budget $1,500
Web Development Start Date End Date Budget Manager Department
Other $0
Other $0
Total Web Development Budget $0
Other Start Date End Date Budget Manager Department
Attend school board meetings 6/1/1999 12/30/1999 $0 Ceri PR
Other $0
Total Other Budget $0
Totals $3,450

5.2 Marketing Organization

Our marketing organization consists of our board members: Ceri Gipson, Kate Lord, Mark Zolun, Kenne
Sage, and Camas Davis. We have divided responsibilities based on skill. We have weekly meetings to
discuss our progress and our budget. All issues are agreed upon fully before implementation.

5.3 Contingency Planning

The worst-case scenario that we have to be prepared for is losing enough of our sales and funding that we
have no marketing budget. In order to assure that we continue our marketing programs, we must establish
relationships with local businesses (like City Copy, newspapers, Boyett catering) who in exchange for
advertising in our programs and our referrals, we receive reduced rates or even free services from. This is
possible because we are aware that other theatre companies have established the same relationships, and
we have already established such a relationship with a local printing company. This "plan B" will at least
allow us to keep up the minimum without much cost.