An Analysis Of Marketing Opportunities For The Entertainment Industry

By Author: Anthony W Bills
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An Analysis of Marketing Opportunities for the Entertainment Industry

The entertainment sector is one of the sectors faced with economic challenges. With its diverse areas, customers are faced with a variety of areas to choose from. This makes the industry a large one and essential for people to spend their leisure time. Though the industry is growing, it is faced with competition from other industries that occupy people’s leisure time. In regard to this Option 1 AGF Promotions Plc (an organization that seeks to advise start up business) has decided to analyze the statistics below to help improve the industry and be able to stand up to its competitors. The statistics were done for the year 2002 to 2007 on different areas of the entertainment industry.
2002 2003 2004 2005 2006 2007
FAMILY OUTGOINGS 26,729 28,707 30,642 31,816 32,939 35,005
THEME PARK 250 257 270 265 274 259
EXPERIENCE DAY OUT 77 85 92 90 98 104
EATING OUT 24,070 25,250 26,510 28,120 29,590 30,450
PUBS 24,000 24,400 24,700 25,000 25,500 26,000
SPORTS 3,578 3,483 3,629 3,759 3,993 4,250
CULTURE BOOKS 3,158 3,200 3,303 3,282 3,381 3,450
...
... PRE-RECORDED MUSIC SINGLE AND ALBUM SALES 1,186 1,177 1,157 1,113 1,076 1,043
THEATRE 328 321 344 384 396 425
GAMING/GAMBLING 8,125 6,947 7,724 9,389 9,388 9,370
SPECTATOR SPORTS 801 809 831 889 924 963
TENPIN BOWLING 245 255 260 265 273 281
PRE-RECORDED VIDEO &DVD SALES AND RENTALS 2,372 2,694 2,939 2,716 2,501 2,456
VIDEO & COMPUTER GAMES 1,638 1,615 1,551 1,783 1,897 2,402
NIGHTCLUBS 1,773 1,682 1,798 1,830 1,835 1,993
CINEMA 1,049 1,045 1,077 1,078 1,082 1,163
GARDEN PRODUCTS 5,650 5,890 5,410 5,180 5,150 5,140
FITNESS CLASSES 673 721 764 809 858 917
HEALTH &FITNESS CLUB 1,799 1,934 2,044 2,110 2,266 2,496
HOUSEHOLD ACTIVITIES DIY 9,544 10,058 10,580 10,347 10,106 10,804
Table SIRC/CGA CENTRO/SOLT (Data Report 2005)
This table shows the changes in membership and participation of individuals and families in leisure and non- leisure activities between the year 2002 and 2007.

Looking at the statistics above, it is shows that the number of family outgoing has been increasing with every year. The number has increased by 8276 families since 2002 to 2007. This shows that many families are beginning to invest in family outgoings. Theme park has been registering unstable trend. In 2002 to 2004 the numbers were increasing but they reduced in 2005, picked up in 2006 and reduced drastically in 2007. This implies that people are pulling out of theme parks as a form of entertainment.
On the other hand, the number of families that experience day out has increased from 77 in 2002 to 104 in 2007. Families that are spending time eating out are increasing. It is notable that the highest increase was registered between 2004 and 2005. The number did not reduce though and the increase from 2002 to 2007 was registered at 6380 families. Pubs seem also to be attracting new customers as the years progress (Andrews, 2005). It has not been doing this at an extreme high rate though. It has only increased by 2000 members in a span on five years (Andrews, 2005). Sports are another entertainment area that has shown some growth though not of a high number. The number has increased by 672.The culture of reading is not increasing at a remarkable rate. It registered an increase in its members between 2002 and 2007 by 292 members. Between 2004 and 2005 the number reduced by 21 members but eventually picked up in 2006.
Sales on pre-recorded music have dramatically reduced. In 2002 it registered a sale of 1,186, but in 2007 the sale was only 1043. This means the change in sale was at a negative rate of -143. It has been decreasing on a yearly basis. Theaters on the other hand have been registering an increase in the number of families visiting the theaters. Though the increase is not high, but some progress has been witnessed. There was a slight decrease witnessed between 2002 and 2003. This however picked up and continued growing all the way to 2007 (Andrews, 2005). Gambling as a form of leisure, experience instability in its growth. It had more members in 2002 but they started pulling out, causing a reduction of 1178 by 2003. It then picked up in 2004 and by 2007, it had 1646 new members. Spectator sport has been having an increase in the number of families participating in this activity. The number has been increasing and by 2007 there were 162 new members. The same case applies to tenpin bowling. The number increased by 36 new members by 2007.
Looking at pre-recorded video and DVD sales, there ha been a varying change, its growth was good from 2002 to 2004. In 2005 the sales began reducing and eventually went low. This reduction signifies that families have changed from watching pre-recorded videos to another activity. Video and computer games on the other hand had picked up. Between 2002 and 2007 in registered an increase of 764 new members (Andrews, 2005). The increase in nightclub goers was witnessed as well. In 2007 the number had risen to 1993 from 1773 in 2002. This was an increase of 1220 new members. Cinemas also witnessed an increase though not very high. The increase was by 114 members. This indicates that people are not willing to spend their leisure times in cinemas.
Other activities that people are engaging in and but re not fully leisure activities include: garden products, fitness classes, health &fitness club and household activities DIY. These activities have taken up people’s leisure time though they are not considered as leisure activities (Andrews, 2005). This way they pose a threat to the entertainment industry. The garden products showed a decrease in their purchase by 2007. Between 2002 and 2003 the product had a high rate of buying, but this changed in 2004 where by 2007 there was a decrease of 750 from 2003 to 2007. Fitness classes are taken by an individual to keep fit. They have also taken up people’s leisure time and have been showing a significant growth. By 2007 the membership had increase by 576 from 2002. Health clubs are also impacting negatively on the growth of the entertainment industry. It experienced a growth of 697 members from 2002 to 2007 (Andrews, 2005). This growth had been taking place on a yearly basis without reducing. Another sector that has been threatening the entertainment industry is the Household activities one that is referred to as Do It Yourself. People have been involved in doing things without having to involve the experts. These activities involve repairing or modifying your own house or any other equipment. This is work made for the experts who do it during their working hours. Those who participate in household activities during their leisure time get no time to enjoy themselves. Thus they spend not time or money in the entertainment industry. The statistics above show that the number of people involved in DIY had increase by 2007. It had gone up by 8460 people.
Option 1 AGF Promotions Plc, based on this statistics, is looking for a way to attract new businesses into the industry to boost the industry. Overtime the industry has been registering decrease in some areas like the video sales, music sales and theme park while registering and increase in other areas like video and computer games, family outgoings, experience day out, eating out, pubs, sports, culture books, gambling, theater, night club, spectator sport, tenpin bowling and cinemas. As much as the industry has been registering growth in most of its areas, with time other non leisure activities may take over.
Areas that are posing a threat to this industry are the fitness club, fitness classes and the household activities. These should be supplemented by other leisure activities. Therefore the organization is trying to come up with new activities to divert people’s attention to a more relaxing activity, since leisure is meant to relax after a hard work. Once this is done, the industry is going to experience a major growth.

List of References

Andrews, R. (2005). SIRC/CGA CENTRO. Chart-Track/Publishers Association Statistics
Winston, W., stevenes,R., Sherwood, P., Dunn, J.(1973) Market Analysis: Assessing Your Business Opportunities (Haworth Marketing Resources : Innovations in Practice and Professional Services Series). Routledge.
Kotler, P. (1999).Marketing Management: Analysis, Planning and Control. Prentice Hall College Div; 9th edition.
Lederman, J. and Sullivan, M. (1993). The New High Yield Bond Market: Investment Opportunities, Strategies and Analysis. Probus Professional Pub.
Stotter, J. (1985). Security alarm systems: A business/market analysis (Business opportunity report). Business Communications Co.
Lehmann, D. and Winer, R. (2007). Analysis for Marketing Planning. McGraw-Hill/Irwin

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