Del Mar Fairgrounds’ Surfside Race Place Del Mar Fairgrounds Surfside Race Place Concert Venue Marketing Analysis Prepared by CSUSM FEMBA Cohort Class 2015 Entry Page i Del Mar Fairgrounds’ Surfside Race Place Table of Contents Table of Figures ........................................................................................................................................... iv Table of Tables ............................................................................................................................................. v Glossary of Acronyms .................................................................................................................................. v Acknowledgment ........................................................................................................................................ vi Executive Summary .................................................................................................................................... 1 Section: Del Mar Fairgrounds Surfside Race Place ................................................................................. 2 General Background ..................................................................................................................................... 3 Surfside Race Place History .......................................................................................................................... 4 The Problem .............................................................................................................................................. 5 Del Mar Fairgrounds SWOTT Analysis ....................................................................................................... 6 Strengths ................................................................................................................................................... 6 Weaknesses ............................................................................................................................................... 6 Opportunities............................................................................................................................................. 6 Threats ...................................................................................................................................................... 7 Trends ....................................................................................................................................................... 7 Previously Submitted Proposals.................................................................................................................... 7 Section: Methodology ................................................................................................................................. 9 Problem Statement ...................................................................................................................................... 10 Methodology of Research ........................................................................................................................... 10 Section: Proposal ....................................................................................................................................... 12 Belly Up Entertainment - Surfside Race Place Makeover Proposal ........................................................... 13 Proposal Overview .................................................................................................................................. 13 Proposal Details ...................................................................................................................................... 13 Impact on Del Mar Fairgrounds Surfside Race Place Business .............................................................. 14 Impact on Belly Up Business .................................................................................................................. 15 Section: Market Analysis ......................................................................................................................... 17 Demographics & Expected Demand ........................................................................................................... 18 Consumer Demographics ........................................................................................................................ 19 Concert Industry.......................................................................................................................................... 29 Competitive Venue Analysis ...................................................................................................................... 33 Balboa Theatre ........................................................................................................................................ 35 Page i Del Mar Fairgrounds’ Surfside Race Place House of Blues ........................................................................................................................................ 35 Humphreys Concerts by the Bay ............................................................................................................ 36 The Observatory North Park ................................................................................................................... 37 Ticket Revenue ....................................................................................................................................... 37 Competitive Advantage .......................................................................................................................... 38 Other Venues .......................................................................................................................................... 39 Section: Alternative and Complementary Uses ...................................................................................... 43 Vision .......................................................................................................................................................... 44 Alternative Uses .......................................................................................................................................... 45 Complementary Uses .................................................................................................................................. 47 Satellite Wagering ................................................................................................................................... 47 History of Beer Museum ......................................................................................................................... 49 Craft Beer ................................................................................................................................................ 54 Beer Igniter ............................................................................................................................................. 56 Restaurant ............................................................................................................................................... 57 Retail/Merchandising .............................................................................................................................. 60 Advertising .............................................................................................................................................. 60 Section: Financials .................................................................................................................................... 63 Financial Model & Relevant Costs ............................................................................................................. 64 Expected Concert Revenue ......................................................................................................................... 64 Ticket Revenue ....................................................................................................................................... 64 Parking Revenue ..................................................................................................................................... 65 User Fee Revenue ................................................................................................................................... 65 Merchandise Revenue ............................................................................................................................. 65 Food and Beverage Revenue .................................................................................................................. 66 Sponsorship Revenue .............................................................................................................................. 66 Expected Concert Expense ......................................................................................................................... 66 Headliner Expense .................................................................................................................................. 66 Talent Buyer Flat Fee Expense ............................................................................................................... 67 Talent Buyer Percent of Gross Ticket Expense ...................................................................................... 67 Credit Card Fee Expense .......................................................................................................................