- If you were Troy Carter, which of the three touring options would you pursue for Lady Gaga? Why?
The investment of efforts has the potential to turn challenges into strengths. The illustrated scenario obligates a shuffle of choice amongst the touring options, just in time. In my view, the most rational an approach is to be developed with a balanced risk of financial benefits, goodwill and time / efforts. Proceeding, to the advertising and marketing efforts already casted over the dissemination of touring details, the third option of complete cancellation of plans is not a viable option for the image of the celebrity. Moreover, the comparison of the cost benefit analysis of the other two options depicts the feasibility of option 2- Develop a smaller, theatre tour—and adjust the economics accordingly. This option will not let to compromise over the image and at the same time will earn the results of advertising in a confined radius. The cost factor will also be beaten by the element of rush earned due to earlier conducted advertising
2. How much money does Gaga stand to gain (or lose) under each option? In your view, do the potential rewards justify the investment? And can Carter do anything to mitigate the risks of pursuing a solo tour?
The Gain under each of the options cannot be calculated as the cost of first option is sky high that needs utmost proficiency and flawless conduct, which is doubtful at verge of time. The gain percentage under option 2 is relatively compromised in comparison to option 1. However, Gaga has displayed her concern of an earlier conducted tour of the category by the name "Fame Bal'' which proved noticeably not profitable. Whilst, the third option is a clear-cut conservative strategy that will limit the cost with the initial investment of $4 million.
3. Are Gaga’s main partners – Live Nation, WME, and her record label Interscope, likely to have the same preferences regarding the three options? Are their incentives generally aligned with Gaga’s?
No doubt, the tour plan was the most ambitious in its kind but the fact that the team of Gaga along with Gaga’s main partners – Live Nation, WME, and her record label Interscope could not possibly arrange the aspired level of proficiency and professionalism in terms of planning, touring productions, rehearsals and set designs etc. Thus, it can be concluded that the preferences of the team are seemingly alike due to the rational nature of the choice suggested.
4. How would you evaluate Gaga’s launch as an artist up to September 2009? How can her team best go about further developing her touring and recording career going forward? And how can team Gaga best leverage her social-media presence?
'Modernisation' could be used as a key to advertising to support the success of a show. In this particular demonstration, the launch of Gaga from 2009 onwards seem secure on the grounds of the refined approach of Carter. Even before the year 2009, the launch of her first single "Just Dance," Lady Gaga was well supported by Carter and his guidance to earn fame. One such strategy was handcrafted approach of social media in which she wrote the messages on twitter and other social media network by herself. Perhaps, the very out of the box strategies earned a fast reputation to Gaga which further supported her to make progressive moves for career development with a hands on approach over social-media presence.
5. How important are concert-ticket sales versus recorded-music sales for an artist like Gaga? Where should team Gaga focus its efforts in the future?
Concerts are the main source of publicity and earnings for an artist like Gaga. In addition, the revenues of recorded music have also witnessed a steadily declined from 2004 to 2008 against the subtle increase in concert revenues. Thus, it can be mentioned assertively that a focus on concerts can earn fame and revenue both to the team, therefore it should be the focus for the team of Gaga future ambitions.
The efforts and progress of Gaga are an obvious outcome of the strategic aligned marketing activities to develop her name as a brand. The illustrated scenario is evident example to test her potential and capacity to manage against the odds. In my personal opinion, I will support Option1 with a view that great rewards are only earned great risk. Lady Gaga is the source of inspiration for her team and a bold step will fuel the energy of her team to follow the plan. However, brand management with her unique poses on social media networks should be essentially monitored to comprehend such a quick decision making. Therefore, the situation could rather be utilised as a display of her dedication to earn strategical growth.
