Blog 4 - Business Model Analysis Report

C3 Presents is an independent event planning and production company based here in Austin, Texas. In addition to producing large-scale music events like Austin City Limits and Lollapalooza, they also book and promote over 800 smaller music shows across the U.S., put on other special events, and provide artist management services (“C3 Presents”). C3 is positioned as a nimble, multi-capability company with a positive and easy-going culture with an Austin-y vibe. C3’s status as an independent company contributes to this positioning, which stands in contrast to the corporate nature of one of its main competitors, publicly traded Live Nation (“ReferenceUSA”).

As a fan of music festivals, I’ve known about C3 for some time, but in a fairly peripheral way. It seems that C3’s events are promoted much more prominently than the company itself. I became much more aware of them in the last few months as I began my full-time job search. C3 interests me because my ideal job would integrate my academic interests with my personal interests. Music, and the events that go with it, provide great experiences. It would be extremely fulfilling to perform a marketing or event-planning role that contributes to making these events happen.

In addition to providing a wide array of services, they also serve a number of customer segments.

College students are a significant customer segment for C3. These individuals tend to be part of the early adopters and early majority in terms of music consumption. They also tend to be fairly tech savvy. An important aspect of this segment is that they are extremely social and spend a large amount of time with their peers. College is one of the few times that people spend a concentrated amount of time around people their own age.  This social and group dynamic, combined with frequent use of technology and social networks, can be leveraged to create significant value.

While many college students complain about a shortage of funds, they seem to have significant purchasing power. According to a study by CruxResearch, the nearly 22 million students attending college this year wield $117 billion in discretionary funds (“Re:fuel”). By connecting strongly with this customer segment now, C3 has the opportunity to build valuable relationships with these individuals as they graduate and transition into other segments.

Hipster Yuppies, or young urban professionals with an interest in non-mainstream music, are another key segment. This kind of individual can be thought of as the prototypical Austinite. They tend to be upwardly mobile and have a significant amount of disposable income. They favor indie, punk, electronic, and underground music, which they might listen to at places like Emo’s or Stubb’s (“C3 Presents”). Additionally, they seek to be at the forefront of new music and are extremely loyal to artists that resonate with them. The majority of this segment was in college at some point. The key value of this market is their loyalty as fans, and their financial ability to put money behind it.

Another important customer segment are Empty Nesters. This group has, with varying degrees of recency, come into significantly more free time and is eager to take advantage of this newfound freedom.  They tend to reside in a stage of financial stability and security. Empty nesters seek out events like The Austin Food and Wine Festival and attend events like Austin City Limits for the popular bands of their generation. The value in this segment is similar to that of the ‘Hipster Yuppies’, in the sense that they are financially stable and can afford to spend money on entertainment. However, a key difference is the types of events that they seek out. The empty nester segment holds a great deal of opportunity for marketers in the entertainment industry as a result of the shift in these individuals’ time obligations.

References

C3 Presents. (n.d.). C3 Presents. Retrieved October 8, 2013, from http://www.c3presents.com/

ReferenceUSA. (n.d.). ReferenceUSA - Detail. Retrieved October 8, 2013, from ReferenceUSA website: http://www.referenceusa.com.ezproxy.lib.utexas.edu/UsBusiness/Detail/Tagged/9367469ba8944a6cbda915e11242301d?recordId=997959986

Re:fuel. (2012). Campus life back in session; College students arrive confident, smarter and with climbing consumer spending power [Press release].