Duke Case Competition Candidate Packv1

Deloitte Consulting LLPS&O Case Competition Candidate PackDeloitte Consulting, September 2016

Copyright © 2016 Deloitte Development LLC. All rights reserved. 2Duke Case Competition

The Case

Duke Case CompetitionCopyright © 2016 Deloitte Development LLC. All rights reserved. 3Copyright © 2016 Deloitte Development LLC. All rights reserved.

Disclaimer

This case, and its solution guideline, is intended to be used only as part of Deloitte Consulting’s Undergraduate Case Competition and should not be used for client and/or industry research. In some cases, the information herein has been modified for the purposes of the competition.

Note: This case is COMPLETELY FICTIONAL, and the situation discussed is COMPLETELY HYPOTHETICAL and meant for the educational purpose of the case competition only.

The names and logos of companies are trademarked by their respective legal entities and their use in this document does not imply any sponsorship herein.


Participant case introduction: The Client

Our client is Upcoming Entertainment Co. (UEC) – a new concert promotion, event production and artist management company. The CEO, Scott Brown, previously worked at G8 Presents, the company best known for hosting Loppapalooza and Boston City Limits1 music festivals each year, both three day music festivals featuring artists of all genres and popularity, attracting more than 500,000 viewers. Scott left G8 Presents and founded UEC because he felt these festivals were not run efficiently, incurring too many costs and not generating enough revenue. Scott is hoping to turn UEC into a major competitor of G8 Presents, and as a first step would like to create a new music festival that is more profitable than G8 Presents’ festivals, demonstrating his company’s position as the new concert promotion market leader.

1Music festival names have been changed for copyright purposes


Participant case introduction: The Ask

Ed Johnson (US – Atlanta)Consulting Team

Urgent: Meeting with UEC CEO

Today at 8:30 AM

Team, I just spoke with Scott Brown, the CEO and founder of UEC, regarding our RFP due this Friday. Scott would like us to answer four key questions regarding their growth strategy:

A location recommendation for the creation of a new music festival The size of the overall market and the population that can be expected from years one through three of the event A proposed marketing strategy with creative approaches and channels for reaching potential customers A quantitative ticket pricing strategy to maximize profits

Scott’s primary goal is to ensure a successful first event in order to establish a strong reputation and customer base. I’m meeting with the team from UEC tomorrow morning to share some of our findings. Can you develop a ~5-10 slide deck outlining an initial analysis and strategy based on those key points above? I’m meeting with the team from UEC tomorrow morning, so I need to review the final deck tonight. Let’s hop on a call this evening, and you can walk me through the slides.

One thing I know about these guys is that they are SHARP – several even came from consulting. Make sure your numbers are accurate and validated, document any and all of your assumptions, and be prepared to get into the weeds during the final presentation. However, keep in mind that they are in the entertainment industry and not well versed in business terminology, so you will need to communicate your message to them in a clear and concise way.

More details to follow – appreciate the quick turnaround on this!

Thanks,Ed


Instructions

• You may use any public information available, including Duke research databases• You may also consult industry and analyst reports, trade magazines, and other publications beyond those

providedPlease note: It is not necessary or required that you use outside sources, as the information provided within this case should be sufficient to conduct an analysis and provide recommendations.

• You may NOT call any industry or company analysts or other experts• You should be prepared to present for 15 minutes, including 10 minutes to present your materials and 5 minutes

for Q&A from a panel of judges• You must cite all your sources with the proper level of specificity so that it is easily accessible if necessary.

Please include any and all supporting materials in the appendix as needed• If you identify what you believe to be an error in the data, make an assumption and document that assumption• You must clearly write your team name on the cover page of your presentation• You must email in your presentation to Adam Berkowitz ([email protected]) by 2:15 P.M. ET on

Sunday, September 18th, 2016. The presentation submitted via email will be the only presentation that you may utilize during the live presentation.

Note: This case is COMPLETELY FICTIONAL, the situation discussed is COMPLETELY HYPOTHETICAL and meant for the educational purpose of the case competition only.

mailto:[email protected]


Exhibit I: Meeting minutes from Ed’s meeting with Scott Brown

Q: First things first, you’ve asked us to recommend a new location for this festival. Do you have any places that you’re considering specifically?

A: Yes, we’ve looked at San Francisco, New York City, and Miami. We are open to other ideas, but do want the festival to be in a large city to attract the greatest number of fans.

Q: I’m sure this idea required a great deal of research. Do you know who your target market or population is?A: We aren’t exactly sure but we believe that college-aged students will compose the largest demographic, with 22-30 year olds

being the next largest group interested in attending.

Q: What do you see as potential competition for your festival?A: Obviously Loppapalooza and Boston City Limits, but really any music festival or concert, as well as large sporting events that

may attract a similar population and are hosted in similar locations. Q: What would you say is the overall goal UEC has for this festival?A: For our initial year we’d like to steal market share from D8 Presents, as well as tap into new customer segments using

creative marketing channels. Q: Do you have any specific guidelines for the proposed ticket pricing strategy?A: First and foremost, profit maximization is our major focus. Next, we want the strategy to be realistic. While selling three

thousand VIP passes at a very high price would make us the most money in theory, it is unlikely that there are three thousand fans willing to spend the money on a VIP admission pass unless we changed the current model – something I’m not opposed to doing.

Q: Do you have an estimate on how many performers you would like per day at the festival?A: We are currently thinking one headline artist, two B-list artists, and anywhere from six onwards C-list artists. Those numbers

are all per night. Of course, we want to strike a good balance between music diversity to attract more fans without losing too much revenue when paying the performers.

Meeting minutes with CEO Scott Brown- 9/8


Exhibit II: G8 Presents – Prior Festival Locations

FL

NM

DEMD

TX

OK

KS

NE

SD

NDMT

WY

COUT

ID

AZ

NV

WA

CA

OR

KY

ME

NY

PA

MI

VTNHMA

RICT

VAWV

OHINIL

NCTN

SC

ALMS

AR

LA

MO

IA

MN

WI

NJ

GA

DC

AKHI

Chicago, IL: Loppapalooza

Boston, MA: Boston City Limits


Exhibit III: Ticket sales and current market data

Table 1: Historical Ticket SalesType Cost Quantity Sold

1-day pass $100 100,0003-day weekend pass $255 170,000VIP pass (free food and drinks, meet headliner artists)

$1,000 5,000

Total 475,000

Table 2: Demographic InformationAge Population Size Likelihood of

AttendanceAvg. WTP / Day

16-17 6M 5% $10018-26 30M 10% $15027-35 36M 4% $30036-45 40M 2% $40046-55 45M 1% $35056+ 100M 0.5% $200


Candidate Pack

Deloitte Consulting—Cross Service Area Information Session PresentationCopyright © 2016 Deloitte Development LLC. All rights reserved. 11Copyright © 2016 Deloitte Development LLC. All rights reserved.

How to approach the case

Listen to case overview and ask follow-up questions

Articulate an approach that works towards a solution

Perform sound analysis to support recommendations

Develop conclusion and present your findings

Develop a logical approach

Conduct critical analysis Drive conclusionsUnderstand the case

1 2 3 4

Write down key points Ask clarifying questions Ensure complete

understanding of client’s ask

Identify the underlying assumptions

Use logical tools to organize your analysis:– Frameworks: SWOT,

Profitability, etc.– Create your own

Ask questions and refine your framework

Identify key metrics and assumptions to analyze

Drill down through facts and figures

Focus on answering key questions

Review calculations for accuracy

Summarize key issues and findings

State your recommendations

Outline next steps and expected impact

Successful problem-solvers begin by thinking about the question at a high level, determining a clear plan, and conducting critical analysis


Step 1 – Understand the case

Understand the Case1

Listen to case overview and ask

follow-up questions Write down the key

points Ask clarifying

questions Identify the

underlying assumptions

Think through what the case prompt is telling you, and what inferences you can make from the information. Focus on the following:

ClientWho is the client and what do they do? What can that

tell you?

As you identify the client, begin to think through how this information can help solve questions. Even without a deep knowledge of the industry, you may be able to connect the problem to recent news stories or the economic environment

SituationWhat problems is the client facing?

Accurately identifying the problem and starting to think through potential causes will help you on subsequent questions. For example, if your client is experiencing decreasing profits, then you should focus on costs or revenues to identify the underlying issues

Key QuestionWhat are you solving for?

The most important piece of understanding the case is making sure you correctly identify what you will be solving for. Even a brilliantly crafted answer is incorrect if it’s not answering the right question!


Step 2 – Develop a logical approach

Porter’s Five Forces Profitability Tree

Four P’s SWOT Analysis

Industry Competition

Threat of Substitutes

Barriers to Entry

Buyer Power

Supplier Power

Product Product Attributes Selection Criteria

Promotion Advertising Discounting

Price Predatory Pricing At Market Pricing

Place Distribution Strategy Location

Strengths Weaknesses

Opportunities Threats

Profit

Revenue Cost

Variable Costs

Fixed CostsPrice Volume

Develop a Logical Approach

2

Articulate an approach that drives

to a solution Use logical tools to

organize– Frameworks: SWOT,

Profitability, etc.– Create your own

Ask questions that support or refine your framework


Step 3 – Inquire, calculate, and analyze

Inquire, Calculate, and Analyze

3 Qualitative Responses Rely upon recent trends and developments Make responses personal Think about important business concepts, such as:

– Revenue, Cost, Profit, Profit Margin– Supply and Demand– Economies of Scale

Quantitative Responses If you have to create your own assumptions, make sure they are

reasonable but easy to calculate

Perform sound analysis to support recommendations

Find facts Think out loud Structure analysis

clearly Drill down through

facts and figures Focus on answering

key questions Double-check

calculations


Step 4 – Drive to conclusions

Summary

Recommendations

Next Steps

Look over your notes to remind yourself of all the steps you have taken in your analysis

State your recommendations drawn from your analysis

Be confident and prepared to back up your recommendations

Outline a few areas that you would like to explore further and potential risks in the recommendation

Some possible next steps include:– Checking client’s ability to implement recommendations– Verifying assumptions used in your analysis– Exploring parts of the analysis that you did not have time to

look into

Drive to Conclusions4

Come to a conclusion and share your

answers Summarize key issues

and findings State your

recommendations Outline next steps

and expected results/impacts


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Page subtitleValue creation

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Maximizeshareholder

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Duke Case Competition Candidate Packv1

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