Visalia Music Celebration

Phillip Cazarez MKTG 134 Dr. Rice December 16, 2010 Visalia Music Celebration I. Executive Summary The Visalia Music Celebration is in existence to bring great music from all generations to the Central Valley. Currently the indie/underground music scene in Visalia, CA and neighboring cities has grown to unforeseen heights and there is an opportunity to foster this culture into a mid-size music festival. The opportunity can be met though the creation of the Visalia Music Celebration, which will bring the latest indie bands, as well as other generations music to the Valley. The music celebration will hosts thousands of people, great music, food, and information appealing to young generations, college students, families, and elder adults. The Visalia Music Celebration (VMC) looks to sell individual as well as family price tickets to the two-day event. The celebration will not only include music as celebration, but also: various foods, carnival rides, vendors with merchandise and information, and meet and greet band booths. The celebration will emphasize it is for a good cause. The VMC will team up with local non-profit promotion organization, Sound N Vision, and donate profits to them as well as other non-profits in the area striving to improve the Central Valley. There will be much profit from the event because most of the staff will come from non-profit volunteers, college and high school student volunteers/interns, and community volunteers. The VMC will be successful because it emphasis is to be great in areas in which other festivals are lacking. The VMC will be extremely organized, secure, provide top notch performers, competitively priced, geared towards all ages, and all headlining bands will play at different times. Also, the VMC seeks to be highly interactive, allowing fans to meet their favorite bands at booths, and giving a few fans the opportunity to be on stage with the

bands. The VMC combines all the great traits of other festivals, as well as turn their problems into strengths through creativity. II. Problem (Opportunity) The indie music scene has seen strong growth in the Visalia, Ca area. In the past couple years there have been shows/concerts at three different venues in Visalia. The three venues are: Howie and Sons Pizza Parlor, The Cellar Door, and the Fox Theatre. When the indie music scene initially started, there would be three to four indie bands playing in a three months span. Present day, Sound N Vision Foundation promotes shows on a weekly basis, with some weeks having more than one show. In the past two years the indie bands playing promoted by SNV Foundation have garnered national attention. Some of the bands include: M. Ward, Conor Oberst and the Mystic 100 90 80 70 60 50 40 30 20 10 0 Growth of Shows/Concerts in Visalia, CA 95 90 65 64 50 34 17 1 2010 2009 2008 2007 2006 2005 2004 2001 # of Shows promoted by SNV in Visalia, CA Valley Band, Vampire Weekend, Ra Ra Riot, Cold War Kids, and Matt and Kim. Several of the bands listed have had songs on the Billboard Top 100 and are currently very popular in the indie music scene. As of recently, Visalia is not only home to a growing indie rock scene, but it is catering to the underground hip-hop followers as well. Both of these markets are growing in popularity in the States and we are fortunate that there is a loyal community in Visalia. The opportunity lives in the growth in popularity in Visalia that music has had. At this point, the music is becoming an essential part of the culture and in order to celebrate it, a music festival should take place.

A big part of the reason indie music has grown the last few years is because of the decline of record sales and media exposure of indie artists through e-marketing. Online there are several indie blogs with high popularity including: Aquarium Drunkard and Music for Kids who can t Read Good. Both blogs suggested new indie artists to listen to. Local concert promotion company, Sound N Vision, have a following on Facebook. Currently they have over 400 fans. When looking at their website, there are 28 bands booked in Visalia all the way until February 2011. There are new bands added almost every other week. Aside from a growing indie scene, there is also the opportunity to improve upon problem areas other large music festivals have. Some key areas other music festivals lack in are: age in attendance, organization, security, overcrowding, price of admission, performance length, and prevention of line-cutters. These areas were identified as problems on Coachella Music and Arts Festival Blogs. Finally, there are several problems throughout Visalia and surrounding areas. There are non-profits that have been created to tackle some of these problems. While intentions of the non-profits are great, there is the reality of shortage of funding. The VMC could be a means to financial

III. Solution Problem -Overcrowding: Too many people at the event. It is difficult to park, leave, and move around freely. Solution -Limit the number of tickets available -Select venue larger than needed -Spread stages apart for more space -Lacking Organization: attendees rush the gates, drugs are present, pushing occurs, parking lots full, lack of understanding of rules by attendees. -Security set up at various posts at event -Rules and Regulations e-mailed, place in Facebook and Blogs in advance, and presented at the gate -Large parking lot w/ directories -Line-cutters: Attendees who show up late to the stage and work their way to the front. -System in which stage lawn is broken into 4 different parts; earlier arrival = better viewing area -Security monitor in each area -VIP Section in Front -Narrow Age in Attendance -Music that appeals to multiple generations -Music that appeals to each market segment -Multiple activities: vendors, food, carnival rides - Performance Duration/Schedule -Extended performance to 1 ½ to 2 hours for headliners -Fewer bands (20 per day), strong headliners -Headliners play at different times throughout day -Non-Profit Funding -Creatively work with Non-profits to generate revenue for their causes -Ask for volunteers from non-profits

The Visalia Music Celebration is the main solution to the problem/opportunity. The VMC will bring great music to cater to not only the Visalia indie music scene, but all generations in the area. The focus of the talent at the celebration will be from indie rock and underground hip hop scenes. There will also be music from other generations including: classic rock, r & b oldies, disco, and country. The reason for the various music genres is that current music festivals lack attendance in all ages. According to polls on the Coachella Fan blog, the average age in attendance was the following: 37% 20-24, 23% 25-29, 13% 30-34, and 12% 15-19. Youth and older adults are not as high in presence at major festivals and diversity in genres will close the gap (Coachella). The VMC will provide an event that is well organized and secure. Organization is important for a music festival because of the time schedules, large amount of people in attendance, and security. This event will have the lineup schedule planned out perfectly. Headlining bands will play at different times at one of three designated stages throughout the day. This will allow for customers to see all of the main acts, rather than have to pick and choose. It creates more value in the price of admission. In addition, with a large amount of people expected each day, it s important to have gate entry policies and clear directions of what is prohibited and allowed at the event. All information on what is allowed into the event will be posted on the website, fan blogs, and e-mailed to all customers. For those buying tickets at the gate, there will be clear instruction fliers given to each person. Also, to ensure policies are followed, there will be security stationed at the gate to check bags, pockets for items that are prohibited. Finally, security is an issue to be corrected. Narcotics are not allowed in the event, and gate entry security will check for this item. Inside the event there will be security at each stage, the booth area, parking area, and free roaming guards. Overcrowding has become a key issue at major festivals in California. At Coachella, attendance of 70,000 people per day is a record compared to years past for the event. The promoters of Coachella must have caught drift of this issue because on the fan blogs there is a fan poll posted asking the question, Would you pay more for admission if the event reduced its capacity? The poll resulted in 61 % of people answering yes and 39% answering no. While it is not an overwhelming yes, it is significant enough to be considered a growing issue. To combat overcrowding, VMC will limit the number of tickets sold. The goal is to have no more than 50,000 people in attendance each day, for a total of 100,000 over two days. Also, the stages will be spread apart to allow more space for attendees to travel from stage to stage. Finally, the venue selected will have the capacity to host 80,000 people per day, to allow for wiggle room. Price of admission is an important issue for the VMC. Since this event is in its inaugural year, its reception from the area is of concern. It s important to keep the price down so

that the VMC is an affordable family event. Price point is based off a similar music festival in Sunset Junction Street Fair. Their prices are $20 per ticket, which is far below the price of major festival which can range from $70 to $100 per day. A good price for the VMC will be between $25 and $30. In order to keep the price down, the lineup will be adjusted. There will be fewer bands, but a stronger (more popular) musician selection. The lineup will consist of many high quality musicians for each genre as headliners and support. The goal is to have 20 bands per day, with 10 bands from each day being headliners. This will allow for more value to be added to the ticket price. Two other issues that need correction are length of performance for each band and linecutters at each stage. At large festivals in California, the average length of performance is 50 minutes. Normally, less popular bands play for a shorter time (30-40 minutes) while headliners will play for longer times (50 minutes to 2 hours). The goal of the VMC is to allow every musician at least an hour to play and headliners will be given at 1 ½ to 2 hours. This will be possible because of the three stages in use and the limit to 20 bands per day. In addition, line-cutters are a big problem at shows/concerts and all music festivals. On Coachella s fan blog, a poll asking if line cutting is okay at a festival resulted in 40% answering yes and 60% answering no. There were explicit comments about how it is rude, annoying, not fair, and how line-cutters should get there early if they wanted to be in front. This issue will be solved be have three separate areas fenced/flagged off at each stage. The first section is for those that arrived early, the second is for those that arrived a little later, and the third section (in the back) is for those that arrived late. Each area will be color coordinated, and attendees must go to the area in which they are directed to. In order to prevent attendees jumping barriers, there will be security at each section. In between musicians, if fans wish to move up, they may if room opens up. Finally, if a fan wishes to purchase a VIP Admission ticket ($100) they will have a designated area up close.

IV. Business Model Infrastructure: Key Activities: o Low Ticket Prices o Strong Organization o Security o Overcrowding Prevention o Appeals to all generations, music fans o Strong Lineup Key Resources: o Staff made up of volunteers, interns, non-profit workers o Connection with SNV Foundation and other non-profits o Young energetic business team o Knowledge of indie music market and hip-hop music market Partner Network: o SNV Foundation: Solid history of hosting/promoting indie/hip-hop shows in Visalia Created solid base of loyal fans Strong brand awareness in the community o Non-profit organizations: Staff will come from non-profits looking to benefit from the event o Colleges: Interns/volunteers will come from campus career centers Offering Value Proposition o All customer segments receive: Low Priced ticket in comparison to similar events Very organized events to reduce stress Security at multiple posts throughout the event grounds Several different forms of entertainment ranging from music, vendors, food, and carnival rides Strong lineup of music for the ticket price Family event that appeals to all ages Customers Customer Segments o Diversified Market College students High School students Adults over 30 Adults in their 50s and 60s Youth o Niche Markets Indie Music Market Hip hop Music Market

Oldies Music Market Country Music Market o Geographic Locations Visalia, CA Central Valley Southern California Northern California Channels o Channel Phases: Awareness: Guerilla Marketing at local community events, SNV shows, local businesses, California Festivals, other Regions shows/concerts, Music publications, Newspaper, Online website, social network, and blogs Evaluation: Advertisement comparing VMC strengths to other major festivals, early release of lineup, networking about vendors, carnival rides in attendance, emphasize what you get for the price Purchase: Customers may purchase tickets online at website, at local record store, through SNV Foundation, select local businesses, and at event Delivery: tickets can be mailed to place of residence, or through will call After Sales: Customers may direct all questions to website tech team, phone number provided, Social network pages or in person at SNV headquarters Customer Relationships: o All Visalia and Central Valley Area Relationships will be kept close: VMC looks to establish a relationship in which we have personal contact with customers at SNV events, local community event, and local businesses. Volunteer opportunities will also be offered to event ticket holders o All other regions Offer volunteer opportunities Build relationship online through website, social networks and blogs Offer weekly contests for opportunities to win special packages Finances: Cost structure: o VMC is value driven: We seek to offer the most value for the customer s dollar Look to have creative ideas in event to add value o Fixed Costs: Salary (non-volunteers) Rent of event location Band/groups cut Carnival Rides Volunteers food vouchers, and bonuses

o Variable Costs Profits donated to SNV foundation and other non-profit Marketing budget Revenue Stream o Our Revenue will come from two main places: Ticket sales will be the greatest amount of revenue received The more value we add to the ticket price, the more revenue we will have Vendor fees will be the other source of revenue Vendors will have the option to pay a flat fee or 10 percent of their revenue from the event

V. Underlying Magic Turning the Visalia Music Celebration into a purple cow can be done through a combination of key issue execution and creative marketing. The event looks to not only bring a new festival to Visalia, but to create a one of kind of experience in comparison with other major music festivals. To make this happen, the key issues to be focused on are: Event organization, line-up structure, non-profit involvement and value-added to ticket prices. Also an extra element must be added to the event. The VMC must have become more interactive through a couple creative features at the event and in the marketing leading up to it. Event Organization: The VMC must be as stress free for the customer as possible There will be three stages, in which 20 bands will play at each day o That divides into two stages hosting 7 bands, with one hosting 6 bands o Each Stage will have a designated Genre (Indie Rock, Hip-hop, Variety) Each line-cutting prevention system must be used effectively Security will be stationed at each post Ticket will be distributed for will-call and sold at the gate All Rules and Regulations will be well known through several options to make the customer aware. Lineup Structure The lineup must be arranged so that all headliners have 1 ½ or more hours to play and are not playing simultaneously Each stage(genre) will host a headliner at a different time in a staggered schedule o For example, Indie Rock will have a headliner at 12PM, then Hip-hop at 2PM, and finally Variety at 4PM. While a stage is not hosting a headliner, a lower popularity band will play 20-30 bands per day, with 9 being headliners and 11 being less known bands Indie Rock Stage Hip-hop Stage Variety Stage 8:00 AM Headliner 1 9:00 AM Headliner 1 10:00 PM Headliner 2 11:00 PM Headliner 2 12:00 PM Headliner 3 1:00 PM Headliner 3 2:00 PM Headliner 4 3:00 PM Headliner 4 4:00 PM Headliner 5 5:00 PM Headliner 5

6:00 PM Headliner 6 7:00 PM Headliner 6 8:00 PM Headliner 7 9:00 PM Headliner 7 10:00 PM Headliner 8 11:00 PM Headliner 8 12:00 PM Headliner 9 1:00 AM Headliner 9 Non-profit Involvement All ticket holders must be clearly aware that the VMC will benefit SNV Foundation and other non-profits o A part of the events culture will be centered around the celebration and improvement of the city and surrounding areas o Ticket holders will be given the option of which organization they would like to donate their portion of ticket revenue to They will then receive a sticker of the organization they choose to wear at the event All non-profit organizations involved are encouraged to input advice o The VMC will benefit the non-profits more than anything else o The more volunteers we have from non-profits, colleges, and the community, the more we will have to give back o Incentives include: Internships, prize drawings, band meet and greet volunteer party, and free merchandise Value added to Ticket Price Vendors, food, event merchandise, band quality, entertainment value must be emphasized to ticket holders and potential customers It should be marketed how special of an event the VMC is and how they receive great value for their money Also ticket holders should understand that they are making a difference in their city and region Extra Features At the event: o Aside from making other major festivals weaknesses our strengths, we need to offer something completely unique to our event o The first feature is the meet and greet band booths

Every band will have to designate a hour to meet fans and talk about their music at booths This will give fans the opportunity to meet their favorite bands, get signatures, talk about upcoming album releases, take pictures, and really just get to know their favorite musicians o The second feature is an interactive Play with your Favorite Band Sweepstakes Every ticket holder will be entered into a drawing to have the opportunity to get up on stage with their favorite bands and play a song or two, or just watch up close There will be about 20 fans selected on each day, one for each band In the Marketing: o Leading up the VMC event will be a series of shows in Visalia and other areas of California o The shows will be directly related to the VMC in which SNV Foundation will promote o Ticket Holders that attend these series shows and show their VMC get in free to the event and are given cool VMC merchandise o The series of shows is a build up to the main event (the VMC) and is meant to get people excited about it Cellar Door-Visalia, CA- Will be the venue for the free concert series

VI. Marketing Strategy SWOT Analysis: Strengths Partnership with SNV Foundation Creative Marketing Strategy Young and energetic team Understanding of the industry and key issues High Visibility Opportunities Growing Indie/hip-hip music scene in Visalia/Fresno, CA High popularity of indie music in California/United States Unmet need in Central Valley Offer music festival that removes key problems other music festivals have Weakness Lack of funds Inexperienced leadership Lack of brand awareness Lack of access to main industry leaders Threats Indie music is not known to all areas in Central Valley Music and arts culture is underdeveloped in farm communities throughout Valley Competition from other major music festivals in California Marketing Objectives: Create brand awareness at all SNV Foundation shows Change perception of customers to see value in the event Create awareness of VMC and its key strengths and features to multiple segments Build strong loyal following Strategy/Techniques: Guerilla Marketing: There will be a strong marketing push in the Visalia area. We will market our event through SNV Foundation Events by attending every one of the shows they host. Also at events we will talk to all attendees to pass out fliers, survey customers, and pass out free merchandise. Our guerilla marketing effort will move into community events. We will be present at brew fests, 5k races, plays, farmer s market, Christmas parade, and other community events. This will give us the opportunity to pass out merchandise and fliers. In addition, we will work with local businesses that wish to be vendors at the VMC. We will ask for their help in promotions, whether through creating a meal at a restaurant named after the VMC, or simply displaying VMC fliers, merchandise and

other supplies. The main goal of our guerilla marketing effort is to build brand awareness and understand the market perception toward the VMC. Concert Series The show/concert series leading up to the event will help build awareness of the VMC and key value added features of it. The concert series will be possible through SNV Foundation. We will team up with SNV and promote about six shows in which ticket holders to the VMC can get into for free. At the shows there will be special prizes given away, merchandise handed out, extensive information handed out about strengths of the event, and the show will be organized to represent just a taste of what the VMC will offer. Social Network Marketing Using key social networks such as Facebook and music blogs will allow for us to build relationships with the market segments. Through these mediums we will update daily about what we offer, our partnering with non-profits, the lineup of bands, our key strengths, concert series shows, contests for free tickets/merchandise, and answer any questions directly. Implementation and Control Implementation will be done on a scheduled basis, with different campaigns being implemented at different times. Each campaign will also use a specific portion of the marketing budget. The chart on the next page maps out each campaign with its specific budget use for the given month. The schedule is as follows: o The VMC will take place in the Spring/Summer months, approximately May or June. Because of the timing, all Guerilla marketing will be implemented in December and following months leading up the event. This will give us enough time to build brand awareness, allow the market to understand who we are and what we are trying to do, and finally build a strong lineup. The guerilla marketing effort will take about 25% of our marketing budget. At this point we are unsure of our marketing budget. o The concert series effort will begin in the month of either March or April and will last two months. We will spread six shows over the two month period. The shows are close to the VMC because we hope to build excitement and knowledge about what it will offer. The concert series will take approximately about 50% of our marketing budget. o The social networking effort will take place continuously throughout the year. There will be times during the year that the marketing will be heavier and pushed. Beginning in December we will use the social networks to highlight were we will be at in the community, what shows we are at, who we are partnering with, the dates of our concert series shows, and other important

elements of the VMC. In the months after the event until December, we will post up pictures, blogs, and offer polls to understand what attendees felt about the VMC. The social networking effort will take 25% of our budget to take care of website costs, prize giveaway costs, and other unforeseen costs January February March April -Guerilla Marketing -3% of budget -Social Networking -2% of budget -Guerilla Marketing -4% of budget -Social Networking -2% of budget -Guerilla Marketing -5% of budget -Social Networking -3% of budget -Guerilla Marketing -5% of budget -Concert Series -25% of budget -Social Networking -4% of budget May June July August -Guerilla Marketing -5% of budget -Concert Series -25% of budget -Social Networking -4% of budget - VMC Event -Social Networking -3% of budget -Social Networking -1% of budget - Social Networking -1% of budget September October November December -Social Networking -1% of budget -Social Networking -1% of budget -Social Networking -1% of budget - Guerilla Marketing -5% of budget -Social Networking -2% of budget

VII. Competition Analysis California is a state with a few music festivals. There are four main music festivals held in California that are offering a product similar to what I want the Central Valley Music Festival to be. In that mix of music festivals, three are large-scale and one mid-scale. The three large-scale festivals are Outside Lands, Coachella, and Treasure Island. The one mid-scale festival is Sunset Junction Street Fair. All four of these music festivals have established themselves as well known events. Here is a look at each event: Coachella Outside Lands Treasure Island Sunset Junction Visalia Music Celebration Years 10 years 3 years 4 years 10 years 0 years Average Attendance 225,000 115,000 20,000 90,000 100,000 (projected) Price $300 (3 Days) $75-$140 $70- $240 $20 per day $30, $100 Lineup Size (2010) 135 Bands 47 Bands 28 Bands 90 Bands 40-60 Bands (projected) Advantages *Large Size *Great location *Great location *Very *Very *Strong Lineup *Good lineup *Strong lineup affordable affordable *Camping Available *Affordable *Small size, great talent *Large lineup *Good cause *Very Strong Lineup *Large lineup *Affordable *Solid lineup *Good Cause *Great *Mid-size *Mid-size Scheduling *Very Organized *Great Scheduling

San Francisco s Outside Lands Music Festival What they offer: Outside Lands offers a large music festival with many well known headliners for a competitive price. The 2010 event was two days in length. They hosted approximately 47 bands at last year s festival. From the lineup of the two day event, there were 30 bands that had received significant air play on indie radio stations and satellite radio. Those 30 bands had also been featured in several indie blogs, magazine articles, and Facebook pages (Outside). The event itself is held at historic Golden Gate Park, which is a positive in itself because of the large size of area. They arranged the schedule by having five different stages playing live music simultaneously. The five stages are all given unique names as well: Lands End, Sutro, Twin Peaks, Panhandle Solar, and Inspire (Outside). As stated earlier, the event is held at historic Golden Gate Park. This park is 3 rd most visited park in the United Golden State Park: Outside Lands Music and Arts Festival States. In addition to show-goers being able to see all the live music at the Outside Lands festival, there are also attractions within the park. These attractions include: The AIDS memorial grove, Botanical Garden, California Academy of Sciences, Conservatory of Flowers, De Young Museum, Japanese Tea Garden, and roaming buffalo. This park has a lot to offer to the public. Aside from the attractions inside the park, the event is held in San Francisco, which has plenty to offer as well (Outside). What they do well/advantages: Outside Lands does a great job of hosting a large number of people. In its inaugural year, 2008, the event attracted 130,000 spectators. In 2009, the event had attendance around 100,000. 2010 numbers have not been released yet, but it is expected to be less because the event went from three days to two days. As the numbers show, there are a large number of people interested in the indie music festival.

The second element of the festival that is done well is the ticket price. Outside Lands offers different pricing options for the consumer. First off, different prices are offered at different times. Eager Beaver two day ticket is priced at $125.00 and the regular admission is priced at $140. The first price is offered to customers who wish to buy ahead of time, right when tickets go on sale. The latter ticket price is the regular sale price. There are also single day tickets offered at $75 per day. This price compared to that of Coachella is quite inexpensive. The main advantage Outside Lands has over other music festivals is its location. Being located in the heart of San Francisco, the event is very appealing. Customers in attendance can explore the city of San Francisco, check out attractions in Golden Gate Park, watch great performance, and enjoy the pleasant weather. Coachella What they offer: Coachella is widely considered the best music festival in California. The Coachella Valley Music and Arts Festival (commonly known as Coachella or Coachella Festival) is a three-day (formerly a one or two-day) annual music and arts festival, organized by Goldenvoice (a subsidiary of AEG Live) and held at the Empire Polo Fields in Indio, California, in the Inland Empire's Coachella Valley. The event features many genres of music including alternative rock, hip hop, and electronic music as well as large sculptural art. The event has several stages/tents set-up throughout the grounds. Live music is played from each stage simultaneously. The main stages are: Coachella Stage, Outdoor Theatre, Gobi Tent, Mojave Tent, and the Sahara Tent (Coachella). In 2010, there were roughly 45 bands per day. That accumulates to 135 bands over a three day period. That far surpasses what Outside Land festival has to offer in terms of performers. This huge lineup resulted in attracting about 75,000 people per day over a three day period. There were 225,000 attendees in 2010, which is the highest total in Coachella history (Coachella).

Camping is one thing that Coachella offers that the other music festivals do not. Attendees are able to pay a camping fee of $50 and stay the entire weekend. In the campground, campers are allowed to park their vehicles next to their camping space. The campground includes a karaoke lounge, general store, and shower trucks (semi trucks with around 6 showers in each trailer). All camping is tent camping. What makes this unique is that attendees are able to bond with friends, meet new people, and enjoy an atmosphere that is completely music. What they do well/ Advantages Coachella has the ability to land any band they wish to. In past years, the Coachella Festival has been able to land Jay Z, Paul McCartney, Prince, Jack Johnson, Depeche Mode, Pavement, and others. Having big names musicians on the lineup really attracts several thousands of people without much of a problem. Coachella also does a great job of filling up each day with bands. With an average of 45 bands per day, Coachella is one place where an attendee can see every band they follow at once. Also, the make-up of these bands is wide spread ranging from hip-hop to alternative. The attracted demographic varies because of the diversity and scale of the lineup. Finally, the camping at Coachella just adds to the experience. Being able to camp with friends and meet other people has become an important element of Coachella. And now that the festival allows re-entry from the campground, the idea is just better. Without camping, Coachella wouldn t be near the same. Treasure Island Festival What they offer: The Treasure Island Music Festival is an annual two day music festival that takes place on Treasure Island, California, located in the San Francisco Bay. The festival is produced by Noise Pop and Another Planet Entertainment. The first day of the festival consists of Electronica and Hip Hop/Rap influenced performers while the second day consists of Rock and Indie rock influenced performers. Each day the sets are split between two separate, nearby stages, however the performances are staggered such that attendees can listen to every performer. Typically, the northernmost stage is the main stage on which the headliner plays. The event has been around for four years, starting in 2007 (Treasure). As stated earlier, the event is split into two different categories. In 2010, there were 14 performers on each day, giving the festival a total of 28 performers over the weekend. While that number is far less compared to Outside Lands and Coachella, every performer is of high quality.

Treasure Island offered several different ticket price options in 2010. The Early-Bird Two Day Ticket was $99.50, Advance Two Day Ticket was $119.50, and the VIP Two Day Ticket was $237.50. There were also single day tickets available for $67.50 per day. The ticket prices are more comparable to Outside Lands than Coachella. The VIP Ticket had added amenities. VIP includes preferred viewing area with bleachers, lounge with full bar, TV s showing Giants vs. Phillies, Yankees vs. Rangers & Raiders vs. 49ers and other amenities (Treasure). The 2010 event recently just past. It was the weekend of October 16 th. The attendance numbers for the event have not been released. In 2008, attendance for each day was at 10,000 people. While the festival doesn t have as many people in attendance, it does still pack a punch with the quality of the performers. What they do well/advantage: Treasure Island Music Festival offers a competitive price. The prices are lower than Outside Lands and Coachella. Also, the VIP ticket option is great for those who want a great view of the performers. 2010 Treasure Island Music Festival Main Stage (Flaming Lips Performing). The festival is well organized. The festival is held over two days, with both days offering something different. Each day has very precise schedules, with no two bands playing at the same time. This gives attendees the opportunity to see every performer, which is

something other festivals are not able to offer. This is significant because the lineup of Treasure Island is strong. Another advantage of Treasure Island is the lineup. They have two days slated with bands that would all could be headliners. Having a strong lineup is a big part of why Treasure Island is having success without much of a challenge. Another unique aspect of Treasure Island is big festival style lineup with a small attendance. This festival is great for those who want the atmosphere of a festival without all the hassle that larger festivals encounter. Finally, the Treasure Island music festival is held Treasure Island in the San Francisco Bay. The views and weather in San Francisco s Treasure Island are unmatched at other festivals in California. Sunset Junction Street Fair: What they offer: The Sunset Junction Street Fair is an event held annually in the Sunset Junction neighborhood of the Silver Lake community in Los Angeles, California. Occurring annually in late August, the two-day neighborhood festival has been going on since 2001. The festival, put on by the Sunset Junction Neighborhood Alliance, closes off a large portion of Sunset Boulevard and features live music, rides, food, and merchandise vendors. Over the years, many noted musicians and musical acts have performed, including Beck, Elliott Smith, Sleater-Kinney, X, Camper Van Beethoven, Redd Kross, Black Rebel Motorcycle Club,Eels, Chaka Khan, the Ladies of The Supremes, and Conor Oberst (Street). In 2002, Sunset Junction was ranked Fourth Best Big Event in Los Angeles (behind the Tournament of Roses Parade, the Academy Awards, and the West Hollywood Halloween Parade) by Los Angeles Citysearch, Best of LA 2001. The 2010 festival attendance was at an all time high due to the landmark success of 2009 s event and the exceptional talent that is scheduled to perform. Attendance was between 75,000-100,000 daily (Street). Another interesting take on the festival is that all proceeds from the event go to the Sunset Junction area youth programs. This is significant because there is a good cause behind the program, which is something the other festivals don t offer. The lineup of the festival is a combination of small local bands, older bands, disc jockeys, hip-hop and headlining indie bands. The 2010 festival had approximately 45 bands per day, giving it a total of about 90 performers. While the lineup is not elite, is all ages friendly. In fact, the event is geared toward all ages. The vendors are a plenty at Sunset Junction. The event normally hosts more than 200 booths offering anything from tamales to Green Peace Literature. This means that shopping will also take place here. And there are different foods to try. From personal experience

the booths was one of the best elements of the festival as there was so many interesting things to absorb. Ticket prices are absolutely inexpensive as they are $20 dollars per day. Compared to other festivals in California, the price is significantly less, thus more inviting to be a family outing. What they do well/advantage: Sunset Junction has position itself differently from the other festivals. Rather than trying to go large scale and host every headliner imaginable, they choose to offer an event for all ages that is fun, inexpensive, and has great music. The event still is able to bring in over 75,000 attendees per day and hosts a few great headliners (Street). 2010 Sunset Junction Street Fair (Carnival Ride View) Appealing to all ages is strong point of Sunset Junction. Having fair rides, vendors, and music from all generations, makes for an event that everyone can go to and enjoy. An advantage of Sunset Junction is the price. At the $20 per day, a person would have to really search for another festival that is going to offer them this sort of value. Not having to spend so much at the gate allows for attendees to spend at one of the 200 booths available. Having vendors offering food, clothing, literature, and other items brings a different element to the event. Attendees are able to experience Silverlake, CA at a different level because of all the offerings. Plus having all the food options make for an event that one go hungry at.

IX. Financial Projections Pro-Forma Income Statement Visalia Music Celebration (Non- Profit) For 2011 through 2014 (all numbers in $000) REVENUE 2011 2012 2013 2014 Gross sales $3,021 $3,081 $3,141 $3,201 Less sales returns and allowances 100 100 100 100 Net Sales $2,921 $2,981 $3,041 $3,101 COST OF SALES Beginning inventory $100 $120 $130 $130 Plus goods purchased 20 20 20 190 Total Goods Available $120 $140 $150 $160 Less ending inventory 50 50 50 60 Total Cost of Goods Sold $70 $90 $100 $100 Gross Profit (Loss) $2,851 $2,891 $2,941 $3,001 OPERATING EXPENSES Selling Salaries and wages $50 $60 $60 $60 Commissions 0 0 0 0 Advertising 10 11 12 13 Depreciation 0 0 0 0 Other 5 6 6 7 Total Selling Expenses $65 $77 $78 $80 General/Administrative

Salaries and wages $100 $110 $120 $120 Employee benefits 4 5 5 6 Payroll taxes 2 3 3 4 Insurance 6 6 7 7 Rent 10 10 11 12 Utilities 5 2 2 3 Depreciation & amortization 3 4 4 5 Office supplies 2 2 2 2 Travel & entertainment 10 10 12 11 Postage 1 1 1 2 Equipment maintenance & rental 15 15 20 21 Charity/Donation 1,425 1,445 1,470 1,500 Furniture & equipment 10 4 4 5 Total General/Administrative Expenses $1,593 $1,617 $1,661 $1,698 Total Operating Expenses $1,658 $1,694 $1,739 $1,778 Net Income Before Taxes $1,193 $1,198 $1,202 $1,223 Taxes on income 0 0 0 0 Net Income After Taxes $1,193 $1,198 $1,202 $1,223 Extraordinary gain or loss $0 $0 $0 $0 Income tax on extraordinary gain 0 0 0 0 NET INCOME (LOSS) $1,193 $1,198 $1,202 $1,223

Pro-forma Revenue Calculations Revenue was determined by ticket prices and quantity to be sold each year. 2011-300 tickets x $100 = $30,000 o 99,700 tickets x $30= $2,991,000 Total = $3,021,000 2012-2014- Add 2000 $30 tickets each year Pro-forma Expense (Costs) Calculations All costs are estimated based on different website prices o Equipment maintenance and rental Stages x 3 Sound System Barriers Carnival rides Booths Instrument sets Lights Venue o Salaries Volunteers Internships Main staff Bands cut o Rent Venue Parking lot Main building o Charity/Donation 50% of Gross Profit Each Year

Sources Coachella. Web. 15 Dec. 2010. <http://www.coachella.com/>. Outside Lands 2011 : Music - Food - Wine - Art. Web. 15 Dec. 2010. <http://www.sfoutsidelands.com/ggp/attractions.php>. SOUND N VISION FOUNDATION Www.snvfoundation.org. Web. 15 Dec. 2010. <http://snvfoundation.org/>. "Street Fair." Sunset Junction. Web. 15 Dec. 2010. <http://www.sunsetjunction.org/index.php/streetfair>. "Ticket Prices and Schedule for Outside Lands 2010 : Music Festival Junkies." Music Festival Guides :: US, Canada, UK, Europe :: : Music Festival Junkies. Web. 15 Dec. 2010. <http://www.musicfestivaljunkies.com/ticket-prices-schedule-outside-lands-2010/>. THE TREASURE ISLAND MUSIC FESTIVAL RETURNS - OCTOBER 16 & 17, 2010. Web. 15 Dec. 2010. <http://treasureislandfestival.com/2010/tickets.php#>. "Treasure Island Music Festival-Day 1 Popwreckoning." Popwreckoning without Music, Life Would Be a Mistake. Web. 15 Dec. 2010. <http://popwreckoning.com/2008/09/26/treasure-islandmusic-festival-day-1/>.