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Market Analysis Summary
Research shows that in the United States, close to $9 billion per year is spent on live music and entertainment services. The largest component of this is the wedding industry.
On the supply side, there are over 124,520 professional musicians and entertainers earning a total of $13 billion per year. This does not include the vast number of amateur musicians, many of whom make up the company’s database. The company has targeted this segment aggressively, and has also begun to target the 91,191 caterers and 65,395 photographers who earn $3.4 billion and $9.3 billion respectively.
4.1 Market Segmentation
The components of the entertainment market that Gigmasters is targeting include:
- Corporate Events/Conventions
- Bar/Bat Mitzvahs
- Vacation & Resort Entertainment
- Fraternity/Sorority Dances & Parties
- High School Proms/Dances
- Country Club Entertainment
- Hotel Entertainment.
4.2 Target Market Segment Strategy
The wedding industry makes up the largest percentage of Gigmasters’s target market, and most of its business is generated from this segment. There are 2.3 million weddings in the United States each year. It is a $39.1 billion industry with $3.2 billion (8%) spent annually on music, $16.0 billion (41%) spent on catering, and $2.9 billion (7.4%) spent on photography.
The corporate events industry includes, among other things, promotional events, conventions, expositions, and meetings. It is an $82 billion industry with 4.5%, or $3.76 billion, spent on entertainment. It is estimated that this industry will grow at a rate of 4.2% per year, paralleling the current boom in the hospitality industry. Gigmasters will target this segment aggressively and seek to become the definitive music and entertainment source for corporate event planners and industry professionals. The company will continue to benefit from the continued growth in the number of lavish promotional events held by corporations each year.
This segment of the market includes bars, nightclubs, taverns, pubs, and cocktail lounges. There are approximately 52,900 such establishments in the United States. If the average budget for live music is $400 per week, it is a $1.1 billion dollar industry. In addition, there are approximately 100,000 restaurants in the United States, many of which feature live music. This sector should register annual growth of 3.6%.
Bar and Bat Mitzvahs
There are approximately 73,300 Bar and Bat Mitzvahs in the United States each year. Families spend an average of $20,000 for the event, making it a $1.5 billion industry. Approximately 5%, or $73 million is spent on music, 7.5%, or $110 million is spent on photography, and 37.5%, or $549 million is spent on catering.