The concept of The Silent Music Club

Experience economy Number of pages: 10 (excl. front-page and table of contents) Number of characters (incl. spaces and footnotes): 19 401 Class: CLmec- y13f Authors: George Dulvara Katarzyna Klimanska Vanda Markovics

Copenhagen, 18/12/2013
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Table of contents
1. 1.1. 2. 3. 3.1. 4. 5. 6. The concept of the Silent Music Club................................................................................. 3 Additional functions ........................................................................................................ 3 The experience: value proposition ...................................................................................... 3 Launching the idea the first event .................................................................................... 5 Events objectives ........................................................................................................... 6 Market size and the industry overview ............................................................................... 6 Potential customers ............................................................................................................. 9 Investment: Costs and revenues ........................................................................................ 10

CONCLUSIONS ...................................................................................................................... 11

1. The concept of the Silent Music Club

Silent disco was always existing in different ways, but it became popular in the recent years, especially in Easter Europe. The original idea started with the movie called Ruusujen aika, and the popularity began with the British Glastonbury festival, and now everyone can enjoy it on weddings, private parties or organized parties in discos and clubs1. The idea of silent disco is that the customer has headphones and can choose between the offered types of music through wireless. Silent disco gives the value to the audience to switch the music off anytime they want to have a talk with friends or they can simply reduce the volume when fed up with noise. Our aim with this idea is to bring closer the Danish audience to the silent disco and is based on the popularity in our countries. People love the concept, that they can listen several types of music at the same place if they get bored of one or another. It is also entertaining as you are listening a band playing, you take off your headphones and all you can hear is some voices from beating the piano and the sound of the singers. To mention one of the core competencies of silent disco is the decreased voice pollution, which was the concept of eco activists in the beginning of 2000. Bringing this idea into practice we considered our options, and we decided to start with organizing silent disco events in popular clubs all around Copenhagen. 1.1. Additional functions

Silent performances seemed a good opportunity to bring the audience closer to the idea and to bring it into another level of entertainment tool. The idea was based on the Budapest Dance Schools performance called ?-s or dance/music. The dancers were dancing in headphones, listening and dancing for different types of music. The audience was listening also different songs, such as rap songs, gypsy music or the Hungarian National Anthem through the speakers, which caused funny situations compared the heard of music and the seen of music.

2. The experience: value proposition

The value proposition of the experience is built on the basis of the Pine and Gilmore model of the Four Realm of the Experience. On one dimension lies the users participation, which has active participation on one end and passive on the other. Second dimension of experience

Ian Johnston: Silent disco craze spreads (2009.09.06.) (http://www.telegraph.co.uk/culture/music/musicnews/6142360/Silent-disco-craze-spreads.html) acc. 17/12/13

describes the connection or relationship with the event and shows how the participant is united with the event. This axis has absorption at one end and immersion at the other2. The experience of the Silent Disco Club offers moments of: Active participation the participant takes part actively acting in the first person, making the choice of music, dancing and acting in a suitable to the situation way. The user is cocreator of the experience. Passive participation - when the participant goes out from the dance floor and puts his headphones off but is still in the club and has the ability to join again in every moment. Absorption- when the user is explained how to use the headphones, what kind of music is played by DJs, what is the topography of the club, what is offered in the bar and finally who is in the club. Immersion the participant is inside the event, not only listening to the music and dancing. The participant even if is in some way isolated from the environment by the choice of own music, is still not alone in the event, the environment and the things happening around absorb his attention. During the passive break the user can observe the environment. Looking at other people dancing on the dance floor, having fun is an entertaining experience. It also make the user to absorb the environment. Educational aspect of the experience is the knowledge about the mode of use of the equipment, the music offered and the club itself. The knowledge makes the user to act actively. Starting to act actively and going to total immersion in the experience creates the mental escape from external environment, unpleasant or banal aspects of daily life. Immersion gives also esthetic sensations - good music, lighting, illuminations and good looking people . Analyzing the experience through the Pine& Gilmore model we can state that the user participates both actively and passively in the experience and is directly connected thorough absorption and immersion to the experience so to say the user is fully engaged in the whole experience. Additionally, the user is co-creator of the experience by making own choice of the music thats why we can prove, that this experience is the richest one, as it offers all four realms of experience. In the feeling of the experience there are engaged all 5 senses. Music and all the sounds connected to being in the club involve hearing, the environment, lighting and illuminations involve seeing. Also touching is involved as the user has the physical contact with other people taking part in the same experience. Tasting and smelling are engaged during the passive participation, when the user enjoys the drinks and snacks offered by the bar. To summarize the value proposition we can present the intensity of the experience using the Wheel of Experience. Taking into consideration the fact that many of the indicators are of the highest score, we can assume that the participants value of the experience is high.

http://www.greenlineemeritus.com/w/2011/07/11/what-do-you-expect-part-2-experience-realms/ acc. 17/12/13

3. Launching the idea the first event

The launching event concept description will be organized according to the Golblatts 5W Even development concept. 1. WHY the event must be held? The Silence Music Club is the new way to involve the customers in entertainment. Both the owners of the clubs and the users are accustomed to the traditional forms of disco. Under the old rule that we like what we know the idea should be presented during the event to allow primarily the clubs owner to know the idea, the product and create the flow to spread the idea in their clubs. 2. WHO will be the stakeholders in the event? First of all the owners and managers of the targeted clubs the most popular clubs in the Copenhagen area. It should be also not forget about the local trendsetters celebrities, bloggers, journalists and presenters. 3. WHEN will the event be held? As soon as possible, when the company is ready. The best time is when there are no huge events around in the local cultural calendar like for example Distortion Festival or Gay Pride - when the whole audiences attention is directed into this side. The time for the event should be suitable first of all for the most important target segment the owners and managers of the local clubs. 4. WHERE will the event be staged? The obvious choice is the most popular and the biggest music club in Copenhagen.

The companys researchers must verify and nominate the club, which must be convenient for the guests, must have the ability to present the idea of the Silent Music Club, must have good reputation and be trendy. 5. WHAT is the event content? The event should be the presentation of the idea. Like in normal music club there should be disco, with the best DJs, the wide range of music (main stream). The event must convince the guests that the idea is worth of spreading and is something new, what they can offer in their clubs for their customers.

3.1. Events objectives

Specific: Improvement of the traditional area of clubbing to a new concept which describes a trend setting for the music industry events where the fully control of what you want to hear enhance the sense of freedom that the music is providing. Measurable: The measurability of the concept can be stated as a rising scale due to a high number of people who are willing to taste the music liberty within the events. An indicator of progress can be described as the flexibility of the concept in order to cover the customer requirements. Attainable: The concept within the events is being managed by the two DJs which are taking care of the headsets atmosphere. They represent the main tool in order to accomplish the goal by being in direct contact with the customer, and fulfilling their needs directly on the stage. Realistic: Silent disco involves a customer oriented focus which is achievable from the very beginning further on matching the efforts and the needs required for the music industry. Events are being reshaped within the clubs to fulfill the customer demand and maintain the raising track and Silent disco is one of the trend setter of the new generation way of partying which is relevant and applicable for the socio economic - technical environment. Time related: The availability can be set from the beginning with events under the silent disco concept delivered every week from Thursday to Sunday. The main focused time related factors have to target an achievable goal of delivering the concept to all of the most important clubs in Copenhagen

4. Market size and the industry overview

The market size is limited to 18-40 age old adults and geographically limited to the Region of Copenhagen. In Denmark in the 4th quarter of 2012 lived nearly 1 410 000 people aged 18- 40 and only in Region Hovestadten live 34% of young people3. Average Danish household spent in years 2010- 2012 almost 36 000 DKK on recreation and entertainment what stands for 12,5% of the

http://www.dst.dk/en/Statistik/emner/befolkning-og-befolkningsfremskrivning/folketal.aspx acc. 17/12/13

all expenditures. The Capital Region of Denmark is in the second place in terms of spendings on entertainment and recreation.

Source: DK in figures www.dst.dk/pubpdf/14852/dkinfigures acc. 17/12/13

Source: http://www.dst.dk/en/Statistik/emner/forbrug/forbrugsundersoegelsen.aspx acc. 17/12/13

Silent Music Club operates in Entertainment industry, in the nightlife and music clubs sector and is geographically limited to Copenhagen, Denmark. The industry has be characterizes through the Porters five forces analysis. THREATS OF NEW ENTRANTS MODERATE The possibility of emergence a new player in the industry is limited due to the high costs of establishing a new Music Club the premises, equipment, all needed licenses and permissions. BARGAING POWER OF BUYERS HIGH The consumers have an easy access the wide range of different entertainment. The industry is ruled by trends (also seasonal fashions and fads) and consumers preferences (music, place, environment - gay clubs). The switching costs of alternative choice are marginal. BARGAING POWER OF SUPPLIERS LOW TO MODERATE Many independent suppliers of music (DJs), drinks and food. The power of suppliers is enhanced by the consumers demand for particular products (beer, energy drinks, snacks) or local resident DJs, who are currently on the top or the cream of international circuit. RIVARLY HIGH Many Music Clubs offering similar or alternative kind of entertainment. Few legendary Music Clubs like Rosie McGee or Rust Club, where consumers find it in style to show up. THREAT OF SUBSTITUTE PRODUCTS - HIGH 8

Not only music clubs can be a backbone of entertainment in Copenhagen. Cinemas, theatres, amusements parks, street events (e.g. Mays Distortion), concerts, festivals and home parties are easily available to consumers.

5. Potential customers
The most popular clubs in Copenhagen are listed and shortly characterized below: Rosie McGees the nightclub in American style, with two dance floors and four bars. The club has also a simple, open nightly from noon, restaurant serving the Americanized version of Mexican cuisine. Localization: Vesterbrogade 2A, Copenhagen4 Penthouse club with mainstream music where interior and inspiration is drawn from big foreign clubs. Is experienced as a great luxury apartment with magnificent views of London, Berlin, New York. Theme and views change month to month between the world's great metropolises. The club offers luxury Free Bar with beer and soft drinks in bottles and smoking lounge inside. Localization: Norregade 1, Copenhagen; Admission price 100 150 DKK (including free bar)5 Club Mambo/ Sabor Lationo the first mambo club is called to be the best place for dancing salsa in Copenhagen. The club offers 2 bars and 2 dance floors and free dance classes for beginners. Club Mambo has also a dancing school mambo dance studio with pro teachers. Localization: Vester Voldgade 85, Copenhagen6

http://www.rosiemcgee.dk/dk/kontakt.html acc. 17/12/13 http://penthouse.nu/forside.html acc: 17/12/2013 6 http://www.clubmambo.dk/en/the-club/ acc. 17/12/13

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Rust for electronic music lovers. DJs serves Hip hop, dubstep, reggae, soul og funk i Bassment music. The club offers also live music and concerts. The total capacity of the club is of 670 people and the Club offers three dance floors. Localization: Guldbergsdade 8 Admission fee 40-60 DKK7 Club Christopher club for adult (over 18 years old) gays and lesbians. In 2011 Club Christopher was nominated for the Danish Disco of the Year at Danish DeeJay Awards. The club offers open bar (including beer, soda, shots and house booze) and an open air courtyard with cocktail bar for al fresco action (and smokers) which is shared with K3 nightclub. Localization: Knabrostrde 3, Copenhagen8 All the above mentioned clubs are in prime, central localization in the City. They all offer more than one dance floor to give the choice of music or their customers.

6. Investment: Costs and revenues

Costs and budget directions 1. Equipment: The main cost point of the investment is the choice and purchase of the headphones and the equipment for splitting up the channels of music. The headphones should be of the best quality, first of all because of the quality of the sound, second because they will be used by many different users in particular circumstances. The third reason to buy the headphones of the best quality is to avoid constant technical service. The headphones could also be in different colors to give the users the choice of the look. The number of the headphones should be relevant to hold 5 events for approximately 600 persons simultaneously. The agreement with the producer should cover also the technical support, inspection and repairs of the equipment. The next issue connected to the equipment is the full insurance. 2. DJs The company should invest in the DJs equipment. Not every club has two or three stations for DJs playing at the same time. The company should select DJs and organize an online platform where the selected DJs will be offered the shifts. There should be also built a DJs portfolio for the lessees with DJs profiles, experience, achievements and music offered. The DJs should be paid on the basis of commission contracts. 3. Technical support On the event: for every event there should be designated proper workers for maintenance of the equipment. According to the size of the event - two to ten persons on the entrance to show the consumers how to use the equipment and one or two persons to hold unexpected failures. In the company: Workers to monitor the technical condition of the equipment. 4. Sales representatives
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http://www.rust.dk/pages/english.php acc. 17/12/13 http://www.visitdenmark.com/denmark/club-christopher-gdk513221 acc. 17/12/13

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The company should designate two to four sales representatives to elect the clubs, offer the idea, count the prices, sign agreement and monitor cooperation with clubs. REVENUES Assuming that the idea of Silent Music Club is based on leasing agreements, the main source of revenues are activities connected to those agreements. Nightclubs, music clubs and bars pay a leasing fee - monthly or per event - according to the agreement. The price should be quoted per both set of headphones ( e.g. 50 headphones in one set), DJs stands and for DJs separately, as many popular clubs have their own DJs. In the price there should be included regular technical inspection of the equipment. Any additional inspections or replacement of equipment with additional fees. Directions for pricing: - first - trial event - 50% of the regular fee - each next event - 100%. The price should be based on the size of the lessee: the bigger club with bigger capacity and the more popular club - the higher price.

CONCLUSIONS
Copenhagen, the capital city of Denmark is seen to be also the capital of the Danish entertainment and nightlife. Not only the local residents but also visitors and tourist pay a regular visit in a wide range of Copenhagen clubs. The most popular clubs in the City offer their guests two or more dance floors with the same music or with different music. The choice of one dance floor means the resignation of the second dance floor and missing all the significant events of the first dance floor. The Silence Music Club idea gives the opportunity to choose the most suitable music without changing the spot in the club and without missing anything. The consumer can feel more to be the part of the event having the influence and the choice. Silent Music Club is a different approach to the customer within the concept which adapts better to the sound conditions and by taking an overview, Copenhagen is very adaptable to this concept and this might lead to new ways of having fun and the infrastructure of the classical building wouldnt have to suffer from the high decibels delivered by a classical loud stereo speakers clubbing music (avoiding voice pollution could be a part of CSR of the providing clubs). Due to the fast track of devoted people for high quality music the concept is a must within the most popular clubs of Copenhagen, and therefore can be a very suitable customer segment well defined and achievable for the needed events in order to bring value where the traditional ways of clubbing being overwhelmed by the freshness of having the total control over what you are listening everything being managed by a click away from your headsets. All the trends can be adapted very easily to the Silent Disco concept and its profitability merge with cost efficiency due to the fact of a no need of building new place in order to shape the event. This provides a new customer approach by getting out of the ordinary and being in touch with the music lovers through its distribution channel of events, creates a new and innovative experience right in its Copenhagen most famous clubs. 11

Clubbing has never been before like that and both Danish and international users are now facing a new experience which according to the Porters 5 forces can be a high threat to the classical loud stereo speakers clubbing way and nonetheless the concept could be adapted in different customer oriented segments from cinemas and theatres to amusement parks, street events and home parties. The clubbing experience had changed so for being aligned with the trends the most important competitors on the market have to be aware of the volatility, profitability and even flexibility of Silent Disco which is a trend setter within the industry.

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