Opera Philadelphia’s organizational change
The key points discussed in Opera Philadelphia’s organizational change was to improve on single ticket buyers and increase traffic in household (HH) subscriber base to eliminate the presence of a going concern. As a marketing philosophy by the grand opera in 2014, innovation and adoption of technologies were vital to remain relevant in a changing industry since works from 17th dominated opera through the 21st century. A second key point is the hiring of Karina Kacala, who joined Opera Philadelphia in 2014 to guide the firm in market segmentation targeting young professionals and middle-income segments while utilizing single ticket promotions as the marketing strategy. Adoption of technology and modern performances was critical to change market tastes and preferences from the reliance on 17th through 21st-century performances. As such, a change in culture would attract the contemporary market segment of young professionals between the ages of 21 – 45 years.
A high concentration of performing arts and grand opera facilities was a key challenge, hence reducing consumer traffic. For instance, the Baltimore concert opera was within a radius of 105 miles, presenting market competition incurring considerable costs in marketing and product placement. Key challenges that Opera Philadelphia faced were a decline in patrons attending grand opera performances and in lower demand traffic of household (HH) subscriber leading to fluctuations in net revenues. Critical issues in the segmentation tactics were targeting professional consumers within the ages of 21 – 45 years and with a professional career to facilitate the desired culture. Immediate priorities to deal with a high concentration of grand opera in the city vicinity was targeting digital demand through household (HH) subscriber, thereby segmenting the market through income levels.
A strategic impulse that led to a need for rebranding is to offer premium grand opera experience after a loss of household (HH) subscriber during the 2010 – 2011 and 2015 – 2016 financial reporting. The ability of Opera Philadelphia to differentiate products from local rivals, including center City Opera, the Academy of Vocal Arts, And Curtis Opera Theatre hence reducing market share. The process of market segmentation also focuses on organizational change and brand rebranding, including a change of logo and increasing performance from well-known maestros in the grand opera industry. Moving into the global market through household (HH) subscriber would offer alternative income streams enabling the firm to experience increased brand visibility and recognition.
Positioning was a key marketing strategy adopted by Opera Philadelphia, since the city is the cultural hub and perming arts mecca in the western hemisphere at the heart of the town, the central position of Opera Philadelphia was closer to other four grand perming operas, including the Metropolitan Opera, and the Centre for Contemporary Opera. Targeting young professionals in the city and regional markets through a single ticket promotion at discounted prices was practical in increasing consumer traffic and breaking even on costs. Segmenting the valuable market through behavioral attributes such as appeal to corporate culture was a reliable means of increasing demand for premium grand performances. Competitive firms ought to focus on market segmentation tactics that reduce fixed costs both in the short term and long term. By focusing on online and digital markets, the single ticket promotions and household (HH) subscriber marketing techniques would offer additional consumer traffic, thus avoiding fluctuations in net revenues and corporate engagement with young professionals.