The Sydney SymphonyA presentation by Victoria DoidgeDirector Market Development

THE SYDNEY SYMPHONY

• Is Australia’s flagship orchestra• Is a 70-year-old brand and a leading Australian cultural institution• In 1995 was corporatised as an independent organisation from its

parent company the ABC• Performs over 100 concert per annum at our home the Sydney Opera

House and regularly tours regional NSW• Has a highly respected education that reaches 28k students per

annum• Concerts are attended by approximately 350,000 per annum

Company Purpose

The Sydney Symphony will enrich the cultural identity of Australia by

performing great orchestral music with a distinctive style and

presenting the highest quality musicians: our performances will

entertain, educate and inspire audiences.

INCOME ANALYSIS

Income 2002Government Funding

50%

Ticket Sales36%

Individual Donations

5%

Other1%

Interest Income2%

Orchestral Hire Fees3%

Corporate Sponsorship

3%

CORPORATE PARTNERS

THE PROGRAM-LED RECOVERY

In 2001 the Sydney Symphony was confronted with:• A dramatic decrease in ticket sales• A loss of major sponsors owing to economic downturn• Perceived changes in audience buying trends – specifically

down turn in subscription acquisition

In 2002 Sydney Symphony conducted extensive market research in the area of customer segmentation which has underpinned a company-wide strategy called the Program-Led Recovery.

Performances of core repertoire are now accompanied by less traditional programming styles targeting new audiences.

AUDIENCE RESEARCH

Research was conducted by Taylor Nelson Sofres

Using• Focus groups• Qualitative research

Outputs• Identification of audience segments• Measurement of satisfaction levels

Audience Segment Program Modules

Segment Characteristics Module - Style Sample

AConservative consumer

Knowledgeable about core repertoirePredominantly older/conservative tasteTypical of long-standing subscriber base

Module 1Major artists, large scale symphonic repertoire, full printed program, full pre-concert talks

Sample program for A:Conductor: Edo de Waart Soloists: Donald Kaasch (tenor)

Nancy Maultsby (mezzo-soprano)MOZART Symphony No.41 (Jupiter)MAHLER Das Lied von der Erde (The song of the earth)

B High interest/passion

Lighter repertoireNo less committedSome degree of musical knowledgeWide cultural consumers

Module 2Popular well-known works, mixture of established artists and young performers, informal style, talking from the stage, printed programs consistent with style

Sample program for B:Conductor: Alexander Lazarev Soloist: Susie Park (violin)TCHAIKOVSKY Romeo and Juliet Fantasy OvertureTCHAIKOVSKY Violin ConcertoTCHAIKOVSKY Symphony No.4

B1 “Triallers”

(Opportunity)

More contemporary presentation tastesRespond to cross-over / Festival style eventsOffer driven – respond to strong/unique propositionsTrust cultural brandsUncommitted but available

Can occasionally introduce less traditional repertoire and/or crossover artists, still presented informally and introduced from the stage

Sample program for B1:Conductor: Michael ChristieSoloist: James Morrison (jazz trumpet)RODGERS Slaughter on 10th AvenueKOEHNE Concerto for jazz trumpetBARBER Adagio for stringsBERNSTEIN Symphonic Dances from West Side Story

C Big Night Out

(Increased

Opportunity)

Professional with disposable incomeCherry-pick landmark eventsCulturally well versedTime-poor = less committedConstant consumers of the best offerings in each artform/fieldLess price-sensitive

Module 3A significant celebrity artist performs with the Orchestra or a landmark musical event occupies the entire program

Sample programs for C: •Kennedy plays Beethoven’s Violin Concerto conducted by Edo de Waart•Barbara Bonney sings songs and arias by Mozart and Richard Strauss•Wagner’s opera Tristan und Isolde in concert with a significant international cast

D Knowledge Seekers

Primary, secondary, tertiary studentsAdults seeking knowledge

Module 4Devised to meet specific education criteria, focus on Australian composers and performers and on young artists, always introduced from the stage and presented in a more relaxed and informal manner.

Sample program for D: Conductor: Richard GillSoloist: Slava Grigoryan (guitar)Narrator: Eric BanaPURCELL Abdelazar: suiteBRITTEN Young person’s guide to the orchestraWESTLAKE Antarctica: suiteELGAR Enigma Variations

E Developers

(Opportunity)

32-45 y.o. Tertiary educatedCulturally awareLook for relevance/shared

valuesPeer-influencedLargely uncommitted to cultural

institutionsPotential future audienceRelatively wealthyMay or may not have children

Module 5Stand-alone programs

Sample program for E:Nick Cave with the Sydney Symphony

FSpectaculars(New)

Non-traditional geographyEntertainment/spectacle focusSmall comfort zone/conservative‘Superdome’ / ‘Symphony In The

Domain’

Sample program for F:Classic Spectacular at the Sydney SuperDome

G Rural/Outreach

PRODUCT DEVELOPMENT

The Sydney Symphony now uses its customer segmentation analysis to underscore its product development.

It presents ten series of concerts each year to focus on its core segments – the Electrolux Masters series targets the conservative consumer; the Morgan Stanley Music series targets the emerging-audience segment

In addition it has created a new arm of ‘commercial’ programming that focuses on audience growth to the developers and spectaculars segments – Valentine’s concerts and collaborations such as Dionne Warwick

MEDIA BUYING AND CREATIVE

Total media spend in 2003 was $1.137M and resulted in approx $10M in ticket sales

Media buying and creative is geared towards segments:

- Older conservative consumers respond to traditional media channels SMH, 2UE, 2GB

- The trialler segment responds to less traditional media such as cinema, online, outdoor

- The Big Night Out segment is geared toward more corporate media – Financial Review, BRW, Bulletin, TV

CHALLENGES

Current marketing challenges include:

• How to attract new audiences and appeal to a wider range of segments

• How to optimise its customer life cycle

• Reinvent its subscription model for a contemporary audience

• Increase its yield per seat with finite inventory

• Control marketing budgets in an increasingly shorter selling cycle (more sales later in the cycle creates pressure to spend)

CURRENT STRATEGIC PROJECTS FOR THE MARKETING TEAM

Audience Satisfaction – develop tools to measure satisfaction

Customer Relationship Management (CRM) – develop or acquire the appropriate software to interface with our ticketing system

Brand Audit – consult all stakeholders in a brand audit process and set guidelines

B1 Audience Growth – grow understanding of this emerging audience

2004 Opening Night – a seasoning opening event that is a landmark in Sydney’s annual calendar

Dynamic Pricing – trial dynamic pricing for select high demand concerts

2003 RESULTS

The Program-Led Recovery showed strong positive results in 2003:

• The company will announce a substantial surplus in its annual results

• Single ticket sales have grown by 35% year-on-year

• Corporate partner revenues have increased substantially

• The ROI from the marketing $ improved significantly

• Strong foundation of media relationships – such as Herald Sun CD