Marta JablonaskaMarta JablonaskaLani AdeoyeLani AdeoyeMarie-Pierre HerveMarie-Pierre HerveNadia SayedNadia Sayed
AGENDA
•Current Situation
•Executive Summary
•Guiding Principles
•Recommendation
•Implementation
•Wrap-up
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Current Situation
• 25+ year legacy• Creative genius
Guy Laliberte• Nomadic roots
ÌNVOKE IMAGINATION.... PROVOKE SENSES... EVOKE EMOTIONS
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
• Worldwide
12 RESIDENT
(7) (2)
Macao Orlando, Tokyo
8 TOURING
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Current Successes
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
3 Pillars of Sustainability
*IMPLICATION: overly dependent on relationship with MGM Mirage in a saturated market
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
REVENUE STREAM
SHOWS
BRAND EXTENSIONS
RESIDENT
TOURING
REST OF WORLD
VEGAS
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
By increasing the number of resident shows outside of Las Vegas, continuing to launch new touring shows and diversifying through a product extension, you will be able to reduce your dependency on Las Vegas, increasing revenues in Resident Market between 12.2 and 24.5 million dollars.
This will ensure the sustainability of Cirque du Soleil.
Revenue Growth
Las Vegas and the economic recession
Las Vegas Strip
Revenue Decline
2008* 11%
2009** 9.4%
Sources: *http://www.nytimes.com/2010/02/12/business/12casino.html** http://www.bloomberg.com/apps/news?pid=20601103&sid=axSujAzgiBJg
Result: Decline in Cirque’s Vegas revenues 7% last year
Innovation-> financial results
Production costs
Years in operation
Per year CumulativeRevenue net of production costs
“O”92 9 0.8 864
Mystere35 14 0.66 736
OperationsResident Travelling
Break Even 65% 60%
Occupancy 90-95% 80%
Costs 30 Mil 37-50 Mil
Capacity 50-60 artistsadditional support staff
50-60 artists
Source: world tourism industry http://www.unwto.org/facts/menu.html
Revenue Streams
Assumed Occupancy rates90-95% for Vegas and Orlando70% for Macau *82% for New York *90% for Tokyo
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Recommendation - Resident Shows
PARIS, SYDNEY, LONDON, NEW YORK, HONG KONG, SHANGHAI
No PresencePARIS, SYDNEY, HONG KONG, SHANGHAI
Million Sydney Shanghai Hong Kong
Paris
Traffic Level
2.7 6.66 7.94 15.6
Tourist Spending
$ 24.7 $ 40.8 $ 40.8 $ 55.6
Strategic Location
REVENUE STREAM
SHOWS
BRAND EXTENSIONS
RESIDENT
TOURING
REST OF WORLD
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Recommendation
PARIS, HONG KONG, SHANGHAIPARIS, HONG KONG, SHANGHAI
SELECT A PARTNERSELECT A PARTNER
REVENUE STREAM
SHOWS
BRAND EXTENSIONS
RESIDENT
TOURING
REST OF WORLD
Decision Criteria for Partner Selection-Creative Challenge
-Partnership Sustainable-Return on Investment-Social Responsibility
Decision Criteria for Partner Selection-Creative Challenge
-Partnership Sustainable-Return on Investment-Social Responsibility
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Partnership with Disney
Brand Value
Artistic Performance
Fictional Characters
Experience
Invoke ImaginationProvoke SensesEvoke Emotion
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Partnership with Disney Resort
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Recommendation
• Continue with approx. 1 new tour per year
• Stick with both Arena and Big Top– Prioritize firstly on Big Top• Historic Roots, Tent (symbolic)
REVENUE STREAM
SHOWS
BRAND EXTENSIONS
RESIDENT
TOURING
REST OF WORLD
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Recommendation
REVENUE STREAM
SHOWS
BRAND EXTENSIONS
RESIDENT
TOURING
REST OF WORLD
BRANDEXTENSION
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Recommendation
REVENUE STREAM
SHOWS
BRAND EXTENSIONS
RESIDENT
TOURING
REST OF WORLD
Wii Fit Benefits• Broad Demographic
• Interactive • Experience
Decision Criteria for Partner Selection-Creative Challenge
-Partnership Sustainable-Return on Investment-Social Responsibility
Decision Criteria for Partner Selection-Creative Challenge
-Partnership Sustainable-Return on Investment-Social Responsibility
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Recommendation``Wii Are Cirque`` ``Wii Are Cirque`` - - ApplicationApplication
Mystere “O” Ka Nouba
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Timeline 2010 2012 2014 2016
Current Portfolio
Wii Game
Tour Shows
Disney Resident Shows
Expansion of HQ
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Wii Game
Nintendo Partnership
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Disney Residency Shows– Large Scale Productions R&D
1. Paris2. Shanghai
– Capacity Requirements:– 50-60 artists– 100 HQ employees– 150 Support Staff
Process
Creation
Artistic Products
Production
Logistics
Current Situation | Executive Summary | Guiding Principles | Recommendation | Implementation | Wrap –up
Financial Sustainability
Financial Sustainability
Wrap - Up
costs millionsbuilding 2
production costs 60
staff costs artists 2,750,000
Visitors Revenues5% 10% 5% 10%
new stores projected revenue
Shanghai 9 0.45 0.9 4.05 8.1Paris 12.8 0.6 1.3 8.2 16.4
12.2 24.5
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