Strategic Business Proposal 1 of 33

Strategic Business Proposal

for

Daytona International Speedway (2019). Website. Retrieved from,

http://www.daytonainternationalspeedway.com

For: Daytona International Speedway

Prepared On: April 13, 2019

Prepared By: Kaitlynn Veno, Kristal Vargas, Jen Vitagliano, Luis Sanchez, Albert Carter

Instructor Name: Annie Quaile

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Contents
Introduction .............................................................................................................................................................. 3
Executive Summary ............................................................................................................................................. 3
1. Organizational Challenges & Proposed Solution ................................................................................................ 4
Organizational Challenges ................................................................................................................................... 4
Proposed Solution ................................................................................................................................................ 5
2. Environmental Scanning ...................................................................................................................................... 7
Internal Analysis .................................................................................................................................................. 7
External Analysis ............................................................................................................................................... 13
3. Strategy Formulation ......................................................................................................................................... 19
Operations .......................................................................................................................................................... 19
Sales, Marketing, & Distribution ....................................................................................................................... 21
Legal .................................................................................................................................................................. 23
4. Proposal Budget & Projections ......................................................................................................................... 25
Sales Projections ................................................................................................................................................ 25
Project Budget .................................................................................................................................................... 29
5. Strategy Implementation ................................................................................................................................... 29
Timeline and Key Milestones ............................................................................................................................ 29
6. Future Plans ....................................................................................................................................................... 32
Long-Term Opportunity and Development Plans .............................................................................................. 32
7. Appendices and References ............................................................................................................................... 21
References .......................................................................................................................................................... 21
Appendices ......................................................................................................................................................... 30
Appendix 1:Competitive Analysis ............................................................................................................... 30
Appendix 2: Organizational Charts .............................................................................................................. 32
Appendix 3: Financial Charts....................................................................................................................... 32
Appendix 4: Epenses Chart .......................................................................................................................... 33
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Introduction
Executive Summary

To the Board of Directors,

Since opening its doors in 1959, Daytona International Speedway has been providing high-speed

motorsport entertainment for racing fans around the world. Over the years, the Speedway’s regulars have

remained consistent and drivers bring their best to their target market with each lap of the track. There

have been more and more sporting events introduced in the Florida market and the desire for something

more has arisen. With the shift in generational numbers and the wealth of event-centric consumers looking

for a new way to experience live entertainment, it is essential for Daytona International Speedway to adapt

and develop events that meet the needs for this new incoming market while maintaining its racing core

for its die-hard fans. We are looking to add an exclusive VIP event that gives audiences new and old

something memorable that keeps them coming back.

________________ ________________ _______________

Kaitlynn Veno Jen Vitagliano Kristal Vargas

_________________ ________________

Luis Sanchez AJ Carter

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Organizational Challenges

“Today’s consumers have an almost infinite number of entertainment options at their fingertips and

limited patience for experiences that aren’t rewarding. In this competitive environment, sports teams can

no longer rely on the field of play and game day to define fan engagement.” - Pete Giorgio, U.S. Sports

Consulting Leader (Giorgio, 2019).

The Rolex 24 Hour at Daytona is one of five major events that Daytona International Speedway

puts on every year. While this is a great event that is put on, there are some challenges that comes with

doing a 24-hour event. The main challenge that Daytona is facing is that they are having a drop-in

attendance. The figures from International Speedway Corp., Speedway Motorsports Inc. and Dover

Motorsports Inc. show a 14.7 percent drop in admissions revenue for 14 NASCAR Cup Series weekends

after the Daytona 500. We are trying to create a more dynamic infield experience for the fans that attend

this event to make them want to come back for the coming years By hosting a festival style music

concert along with the 24-hour race, we will be appealing to both the tracks target market and the

millennials who are interested in music through offering something both vintage and modern.

Proposed Solution

Our goal is to enhance the Rolex 24 infield experience for Daytona International Speedway. We

believe expanding the infield experience to provide 12-hour live music, along with branding to “Around

the Clock Entertainment” is the most viable solution. This course of action has the potential to both

increase attendance numbers and appeal to a younger audience as it has been successful for different

motorsports entities, such as Talladega and Miami Speedway. (Richert, 2017)

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In bringing a live, 12-hour music experience, it will engage the younger market, who is

spearheading the charge on the concert attendance increase. However, maintaining the meet-and-greets

as well as the behind the scenes style interactions will bring the die-hard fans back to the fold.

2: Environmental Scanning: Internal Analysis

Company Overview

Daytona International Speedway has been providing high-speed racing entertainment for the last

60 years. Since its grand opening under the International Speedway Corporation, Daytona International

Speedway has stood by its values of integrity, innovation, and customer-centric entertainment.

International Speedway continues to provide our guests with exciting and engaging entertainment that

brings the entire family together for a new and unforgettable experience.

However, the Daytona International Speedway seen a decrease in attendance, citing “inconsistent

but shrinking-and ratings are in decline…the 2018 Daytona 500 hit record lows following a pattern of

decline over several years,” (Martinelli, 2019). This low attendance could possibly be for a number of

reasons. Another potential issue arose when Daytona International Speedway, “once reportedly had

168,000 seats and all were usually filled for the Daytona 500. The Speedway took away about 20,000

backstretch seats 10 years ago, then removed the remaining 46,000 in 2015 as part of the Daytona

Rising renovation that brought all of the current 101,000 seats to the front stretch,” (Willis, 2019).

Financial Standings

Over the last three years, Daytona International Speedway’s parent company International

Speedway Corporation has remained successful but are not bringing in the numbers that we would like

to see. This is partially due to generally low attendance rates over the last few years. After the

renovations of 2016, ISC stock increased an average of 23% (Yahoo Finance, 2019). However, the

income from 2017 to 2018 paints a different picture, with the fourth quarter of 2018 closing at $195.3
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million while the fourth quarter of 2017 closed at $226.3 million. This is even with the operating costs

of 2017 ($41.8 million) being higher than those of 2018 ($33.1 million) (Globe, 2019). However, we

view this as a positive because it means that we were able to cut operating costs and continue this trend

in the future. Another negative trend that we discovered is that net income has decreased by 87.27%

(Google finance, 2019). For charts, see Appendix 3

Organizational Strengths
Despite Daytona International Speedway’s financial standings we have some very specific

strengths that apply to only our organization. We have the Daytona G.I.V.E.S program, which stands for

group incentive volunteer event support. This is the speedway’s volunteer program that allows fans to

volunteer in groups of 20 or more and donate their wages to the non-profit organization of their

choosing. The mission statement is, “To support local charitable organizations with opportunities to give

back to the community by raising funds while providing Daytona International Speedway guests with

the best experiences in sports,” (Daytona, 2019). This provides fans and surrounding companies the

opportunity to get involved at the speedway and allows them to experience the event for free. In the past

year, Daytona International Speedway has donated over $168,000 to non-profit organizations, thus

garnering the positive reputation of a charitable company.

Another strength of ours in the Daytona Rising project. This was an expansion project that was

completed in 2016 that is meant to enhance the fan experience at all of our events. While it was costly,

this allowed us to create “over 60 luxury suites with track side views and a completely revamped

hospitality experience for corporate guests,” (Daytona, 2019). With these changes, we have far

improved the fan experience and given guests the incentive to pick our venue over any other competitor,

be it direct or indirect.
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Our final strength is that of ecological and environmental significance. In 2016, alongside the

renovation, Daytona International Speedway worked with Florida Power and Lighting Company to

install “More than 7,000 solar panels at the FPL Solar Circuit are capable of generating 2.1 megawatts

of solar power in an hour for the race track and FPL customers.. Here at the Daytona International

Speedway, we recognize that the vehicles are not always environmentally friendly, so we are doing our

past to negate any negative contributions to our environment and cut any unnecessary pollutants. This

allows us to connect with the environmentally conscious fan and hopefully turn them into a life-long

fan.

Organizational Weaknesses
One foreseeable weakness that may be a factor is our plan is the sheer inexperience that we have

in hosting these types of events. Yes, Daytona International Speedway has a myriad of events that host

hundreds and thousands of people. However, a live music event is something relatively new to us. The

venue would need to be prepared to field expenses related to this endeavor, which may be a problem

depending on how we go about it. Some high-end acts would cost well over $50,000 dollars (Piper,

2018). Finally, our biggest weakness would be our target market. The traditional target market for the

Rolex 24 and NASCAR as a whole, stands at 57% being over the age of 55 (Piacenza 2018). This

current market presents a challenge simply because it is shrinking in size.

Customers
Our new customer market for this proposal are between the ages of 30-40 (Rys, 2018) and come

from a middle to upper-middle class background whose income is on average between $50K and $75K

per year (Frankenfield, 2019). They seek primarily live musical entertainment but are willing to spend

more money on events in general over material items (Peoples, 2015). What these fans look for is an

engaging live experience where they can both socialize and create new traditions (Peoples, 2015). They

are moderate to heavy users, as millennials (where most of our market falls) were recently projected to
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spend $1.3 trillion on live events alone, attending at least once per month (Seymour, 2016). As for

market size, this market is expected to overtake the previous two generations; millennials are set to

reach 73 million in population during 2019(Fry, 2018). Furthermore, this market is growing an average

of 10% per year, primarily in southern and western locations in the United States, (Frey, 2018). As for

needs and wants, this market puts heavy emphasis on convenience, experiences, and belonging (Alton,

2018).

Collaborators
Daytona International Speedway has an extensive list of collaborators, many of which have been

with us for an extended period of time. Rolex is most well-known for its high-end line of watches. Our

collaboration is, “Driven by a passion for performance and precision, Rolex partners the leading

motorsports series, Formula 1®, as well as other iconic endurance and classic events steeped in

tradition,” (Rolex 2019). Rolex is the primary collaborator for the Rolex 24 and is therefore where we

get most of our funding for this event. Rolex as a brand puts heavy emphasis on tradition, excellence,

and quality, ideal for our current target market.

Another significant collaborator that we have is Monster Energy. Monster works with us here at

Daytona to put on its own race, called the Monster Energy NASCAR Cup. Monster Energy provides

hydration to drivers in the form of water inside of Monster cans as opposed to the energy drink.

According to Monster Energy, this is because the brand promotes not only adrenaline and energy but

safety as well (Monster, 2019). This is very relevant because Monster had this same collaboration with

Vans Warped Tour and a few other major tours around the United States, many of which were attended

by our target market (Warped, 2019).

Finally, our third significant collaborator would have to be NextEra Energy. NextEra is, “one of

America's largest capital investors in infrastructure, and with more than $40 billion in new infrastructure
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investments planned through 2020, we're helping ensure that the next energy to power our dreams will

be American energy,” (NextEra 2019). This is an important collaboration because we have already

established above that our target market is passionate about events that initiate change.

External Analysis

Competitors
Our first direct competitor is The Peabody Auditorium. The Peabody Auditorium was opened

originally in 1919 and rebuilt in 1949. Since then, the auditorium has been considered one of Central

Florida’s most preeminent showplaces for international and national artists, community events, and civic

programs for up to 2,521 people (The Peabody, 2019). This location competes with Daytona

International Speedway indirectly for it also provides entertainment for people of all ages. Though their

focus tends to skew towards musical entertainment rather than entertainment wrapped around a sport,

the events hosted in this space could affect the number of attendees at the Rolex 24.

Our second direct competitor is The Ocean Center. The Ocean Center is a meeting, convention,

and event complex with more than 205,000 square feet of meeting space. Just like Daytona’s

International Speedway, The Ocean Center has both indoor and outdoor space available for their events.

The Ocean Center would be considered indirect competition to the Daytona Speedway because of their

ability to host a broad gamma of entertainment acts due to the flexible nature of their venue.

Our first indirect competitor is Daytona Beach Resort Hotel and Suites. The Daytona Beach

Resort Hotel & Suites has 17,000 square feet of flexible event space overlooking the Atlantic Ocean.

They host anything from small family reunions to big company meetings (The Daytona Beach Resort

Hotel & Suites, 2019). The Daytona International Speedway also rents their space for corporate events,

family reunions, and weddings. Since they offer similar services, the Daytona Beach Resort Hotel &

Suites becomes an indirect competitor to the Rolex 24.

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Business Climate
Political & Regulatory

Different tracks have different rules for their races to make it more competitive. Daytona is one of the most

prestigious tracks used by NASCAR and by buying out the track from ISC would give them full control over the

track and what goes on. Since we want to bring in new potential customers, Daytona should steer away from

controversial political sponsors as they have had controversy with this in the past. “There is a long history of

politicians who have used stock cars to promote their campaigns.” (Caldwell, 2012)

Economic
Daytona and their parent company already have 18,000 permanent jobs and more than $1.6

billion each year to the total economic benefit in Florida (Economic Impact, 2013). In a 2016 estimate,

ISC said that the speedway and its events had generated an approximately $1.6 billion (Kelly, 2016). In

2013, the company announced plans to give the speedway a 400 million makeover that would pump

millions into the local economy and would create jobs for the community (Park, 2018).

According to executives at NASCAR, race team executives, drivers and television network

analysts, the sport is receiving new talent and that like many sports their stars will eventually retire

giving the new ones a space to shine (Brown, 2018). Our customer is currently making about $50,000 to

$75,000 per year, but stand to gain significantly more as they make their way towards retirement.

Furthermore, they are within the generation that controls about 70% of all disposable income within the

United States (Rutigliano 2017). This audience is getting closer and closer to retirement. Due to this, the

speedway could be losing a steady income.

Social & Cultural

These days there is a notable decline in both ratings and race attendance (Henderson 2018).

Unfortunately, the industry has recently been attempting to break into new, younger markets to no avail.

“In a bid to attract a new kind of audience, NASCAR built superspeedways in Las Vegas and Southern
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California – and shut down some classic venues in America's southern states” (Henderson 2018). Former

NASCAR executive Ramsey Poston says the league was trying to enter new markets without the Southern

stigma — a move that he calls a mistake,” (Sigalos 2018). It seems that there is stigma around the culture

of sport has steered away the younger generation (Henderson 2018).

Live music events have seen an increase over the last few years and according to Nielsen

Music’s 2018 Music 360 Report, about 52% of Americans attend live music events each year (Rys

2018). The live music and event industry is predicted to be worth $31 billion worldwide by the year of

2022 (Sanchez 2018). The Daytona International Speedway has the opportunity to appeal to a younger

generation which could be interested in the addition of certain popular acts.

Technological
Recently, the Daytona International Speedway made several new technology enhancements to

help their fans get and stay connected to the latest news and information. (Daytona Rising, 2015)

Audiences enjoy Wi-Fi at DIS with the help of ARRIS, a global telecommunications technology leader.

(Daytona Rising, 2015) The addition of new technology to race properties adds further value to the

customer experience. Also, Daytone has partnered with CommScope, who provided the cable for the

Wi-Fi, making sure that the network doesn’t experience downtime. (CommScope, 2016)

Industry Trends
To help grow an event’s brand and to increase the numbers of spectators at race events, leagues,

and properties, promoters have started implementing alternative strategies to enhance the spectator

engagement at race events. (Richert, 2017) Many companies have produced events headlined by popular

musical acts, which have drawn thousands of fans as well as new possible customers to the racing tracks

(Richert, 2017; Gluck, 2016). (Gluck, 2016)

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According to Richert, the race track industry embraces technology on and off the track. Different

race properties are adopting technology to enhance the stadium experience, and with the inclusion of the

internet, a platform for all its participants has arisen (Richert, 2017).

Society as a whole seems to be spending more money on experiences over material items, thus

justifying our idea to create an event versus just giving away free items (Turner 2018). On top of that,

26% of global travelers go on trips due to some sort of festival or major entertainment event. (Graft

2018).

Business Opportunities
According to Eventbrite, more than 8 in 10 millennials (82%) attended or participated in a variety

of live experiences in the past year, ranging from parties, concerts, festivals, performing arts, races and

themed sports—and more so than other older generations (70%) (Eventbrite, 2019). There is an

opportunity to attract this younger generation to the sport, yet maintaining those true die-hard fans by

enhancing and adding perks to the event experience. Including experiential packages can ultimately

emotionally connect the audience to the sport.

According to Caldwell, the motorsport industry is engaging with millennials on social media

(Caldwell, 2018; Hookit, 2018; Tywalk, 2018). As an industry, motorsports could utilize social media

marketing campaigns as an opportunity to expand on the emotional connection, specifically with that

younger generation who is active in social media. (Tywalk, 2018) Also, with a 58% rise in video views

on the internet, we could capitalize in the opportunity of not only using the broadcasting abilities of the

facilities but providing a live stream of the entire event experience as well.

Business Threats
The economic status of millennials could pose a potential threat to their purchasing habbits.“Younger

people are spending less because they have less money to spend, the Fed concludes.” (Sullivan, 2018).
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3: Strategy Formulation
Operations

The addition of the 12-hour music event as well as the drive-in VIP experience will not only add value to

the Rolex 24 infield experience, but will allow Daytona International Speedway to convert new fans while

also catering to those returning individuals who are looking for an exclusive experience. Branches of the

organization that will be impacted will be management, human resources, media and marketing, and sales.

For an organizational chart, see Appendix Two.

Organizational Impact
The preliminary decision making will fall on our management department, as they will be making the

final decisions on the overall event. Human Resources are taking on the bulk of new staffing, hiring new

security and event personnel as well as enlisting new volunteers to cover expected numbers. The Media

and Marketing department will be creating both digital and physical tools to promote this event; those

tools will then be passed along for distribution. The Sales department will be in charge of the production

of purchased tickets as well as monitoring ticket sales.

Staffing Needs
As for staffing, we plan on hiring 20 new security personnel. Security makes about $14 per hour and we

will be asking them to work about 12 hours in two shifts of six hours. Therefore, the total amount spend

on security will average to about $3,400 in total (Glassdoor, 2019). As for VIP experience personnel, we

plan on hiring 40 new employees to tend to five cars each (capacity of 100 cars) and they will be making

the minimum wage of $8.46 per hour during one of two six hour shifts over the 12 hours (BIPC, 2019).

That comes to an average total of $2,030 in basic staffing for the entire 12-hour show.

Other Needs
As the location itself already exists, we do not need to construct any new facilities to accommodate our
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event. However, we may need to look outside the company for assistance for our staging and rigging

needs, as we do not have all of the necessary equipment on-hand. Furthermore, we may need to look into

some designing assistance depending on the stage plot needs of our artists.

Sales, Marketing, & Distribution

Price
Our product will have two major price points to consider. Tier 1 is simply the concert admission price

included within the price of the ticket. Daytona International Speedway offers admission wristbands for

different days all of which average at $120. To offset the cost of a 12-hour musical festival and virtual

carnival entertainment, the VIP experience would have to $3,000. Daytona International Speedway

already charges slightly below that range, capping at $2,500, so we can stand to reason that raising the

price by a few hundred dollars isn’t something that will put those VIP customers off. This is especially

reasonable because during our other events, like the Daytona 500, customers spend up to $20,000 on VIP

packages (Daytona, 2019). We are planning on using the parallel pricing strategy because we are keeping

the same event and various activities, just adding more to it.

Product
Our product is a two tier experience: the upper VIP drive-in concert experience and the lower infield

concert experience. The highest tier will include the ability for the customer to drive their own vehicle

into the infield and watch the race and concert from their car. This drive-thru style show will include one

personal screen per car to see all the close-up action of the show as well as car-side service. This will be

limited to 100 cars, as that is the number we can fit safely into the location. The lower tier will be a concert

that is included with the standard ticket purchase.

Distribution
We are planning on promoting the event in a few different ways. We will promote this event at other
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Daytona Speedway events, like the Daytona 500. We will put ads in national racing publications like

Racer Magazine and NASCAR Scene magazine as well as on their websites and social media. We will

also distribute through our own social media as well as the websites/social media of featured racers, artists

and Rolex. Finally, we want to advertise on local radio stations, ideally either country or rock music.

Promotion
Advertisements will go in physical copies of magazines that are popular among our customer, like Racer

Magazine and NASCAR Scene magazine. Digital ads will be place on Racer Magazine’s website as well

as Daytona International Speedway’s website and social media pages, like Facebook and Instagram.

Furthermore, the promotion of the Rolex 24 expansion will extend to our other events, such as the Daytona

500 and the Coke Zero Sugar 400. As for other social media, we want to advertise on Rolex’s website,

possibly as a pay per click type of scenario. This will also be the case for the magazines’ websites as well.

As for radio, we would like to advertise on several different radio stations, depending upon the artist that

is booked. Sales are made through our website as well as given away at a few local giveaways, all of

which is managed by our in-house sales team.

Legal Factors
With the addition of an entirely new event plus revamped entertainment, Daytona International Speedway

will have to reexamine its regulations and insurance coverage. Furthermore, we will need to draft new

contracts for multiple facets.

Regulations
Daytona International Speedway already has a handful of regulations in place regarding their current

events. However, we need to reconfirm that any music that is featured at the festival is covered under

ASCAP, BMI, or SESAC. Furthermore, we will need public performance licenses, which we will obtain

by contacting one (or more) of the applicable licensing companies through our legal team (ASCAP 2019).

We will also contact the City of Daytona through our legal team to establish a noise ordinance that will
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allow us to play music throughout our allotted timeframe without disrupting the surrounding residences.

Finally, we will ensure that all liquor and food licenses are up to date to ensure the safety and quality of

the items being served to customers.

Contracts
Most importantly, we need to draft and sign a brand-new contract for every artist that will be performing

at our event. This will clearly outline what is expected from both us and them. Also, we need to establish

new contracts for the entertainment vendors that we are bringing onsite. This will, again, clearly outline

expectations and how any technological emergencies will be handled. Any new food or drink vendors will

be given the already existing contract that we already have for previous vendors.

Insurance
In regards to insurance, there are considerable changes we will have to look into for this proposal. We

want to get (or amend our current) general liability insurance, just to make sure we are broadly covered.

That way, if anyone is injured at this event, we will be covered. Liquor liability will prevent us from being

at fault should someone consume too much alcohol and injure themselves and auto liability will ensure

that we will not have to cover any accidents that may occur when customers are bringing their cars into

the infield. We are also considering property insurance should anything get damaged during the set up and

break down of the staging and vendors.

Intellectual Property
There will be no changes to Intellectual Property policies regarding this proposal.

4: Proposal Budget & Projections

Sales Projections

We decied to price the ticktes at $135, $15 dollars more than the Rolex 24’s Four-Day frontstretch

seating/infield/garage ticket + event hat. The first year we project to sell 130,000 tickets, exactly 10,000
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more than average, priced at $135 for the four day wristband. Which give us the projected net sales of

$17,520,100 for year one. For the second and third year to $18,868,9509 and $20,267,800, respectively,

due to the addition of additional artists according to relevance. According to The Business Insider, the

avarge a person spends on food & beverage on an event is $60 dollars. We project to sell at the least

$100 dollars worth of merchandise per person. This gives us a total of $7,150,000 net sales total for year

one, $8,7100,000 for year two and $8,400,000. Since Daytona already has a number of brands that

collaborate with the events, the cost of merchandise will be $45. Finally, we will sell 100 VIP tickets

priced at $3,000 per person. The Rolex 24 VVIP package ticket price is $2,500. The addition of the

Drive-In expericnce will only add $500 dollars to the attendee’s price, bringing it to $3,000.

Cost Analysis

We begin with a breakdown of our marketing strategy. Traditional billboards cost average $250

per month in rural areas to $1,500 – $4,000 in small to mid-size cities, and $14,000 or more in larger

markets (FSB, Billboards, 2019). Meanwhile, the cost of printing 500 flyers with company U-printing is

about $220 (U-Printing, 2019). The total estimate the cost of brochures and banners flyers and billboards

for direct marketing is $7,320 first year.

Radio advertising costs can range from $200 to $5,000 per week depending on location. That is a total of

$9, 600 on radio promotions. Sport advertisiments at local news papers like the Orlando Sentinel start

from $51.07 per week (FSB, Radio, 2019). We will adverstise every week for six months, giving us a

total of $1, 225.68. As for TV, the cost of advertising in local television stations, start from $200 to

$1,500 for a 30-second commercial (FSB, TV, 2019). This adds up to $62,000. We estimate a total of

traditional advertising at $72,887 for our first year.

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The average CPM (cost per thousand views) is $6.70 (McLeod, 2017). Twitter offers three types

of advertising options: promoted tweets, promoted accounts and promoted trends. The total amount we

estimate of social media impressions for the course of six months prior to the event is $10,000 plus a one

day trend promotion in Twitter which total $210,00 for the first year. This includes the average CPM for

Facebook and Instagram as well.

The hourly rate charged by graphic designers ranges from $20-$350, but averages $65-$75 an

hour nationwide, according to a survey by HOW magazine (Small Business, 2019) . The content creator

will provide all promotional content in the course of two weeks (40 hours per week) at $75 an hour

totaling approximately $6,000. Web hosts usually cost around $10 per hour depending on website traffic

or data. Services of a web host that will focus only on the Rolex 24 event for the course of six months,

20 hours a week is a total of $5,200 (The SiteWizard, 2019). The total amount for our public relations

expense is $11,200. There are 101,000 seats in the venue. We will be creating all tickets at $0.23 each,

making it around $29,900 for our number of units through TicketPrinting.com.

The Daytona International Speedway already has enough equipment and workers to make our

event possible. For that reason, we will rent extra sound equipment for a flat rate of $1,500 per day from

a Daytona music rental company (Concert Works, 2019). The total cost of equipment rental is $3,900.

The cost of six musical acts per day is $7,000; $1,000 per band and $2,000 for headliner. The total of

our four day artist cost is the in field area is $26,000. The total for our four day artist cost is $42,000.

The total amount of artist expenses is $68,000. Expenses chart available on appendix 4.
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5: Strategy Implementation

Timeline & Key Milestones

Pre-Launch
The Daytona Rolex 24 takes place mostly in January. We plan to begin arrangements nine months in

advance. During the first few months, we will map out all operational nuances, as well as make research

on the different companies and vendors we want to work with. After we have decided on vendors and

brands, we will begin the design stage. In this stage we will organize and develop online content,

marketing strategies and we will arragnge all permits and requirements. Once all of this is properly

organized we will begin pre-marketing the event six months prior to the date and three months before the

event we will launch our complete marketing campaing.

Year 1
Date (Time frame) Milestone (event)

April /May of ‘19 Meeting with Event Production Company

May /June of ‘19 Research of vendors and brands to collaborate

June /July of ‘19 Acquiring of licenses, permits, legal advice

July / Aug of ‘19 Contracting of graphic designer and web host

Aug / Sept of ‘19 Pre-marketing campaign (announcements, radio promotions)

Sept / Oct of ‘19 Official marketing campaing begins

Oct / Nov of ‘19 Hire extra staff for event/ Extra equipment rental

Nov / Dec of ‘19 Early ticket sales begin/ early VIP early ticket sales

Dec / Jan of ‘20 Offical ticket launch

Jan / Jan of ‘20 Finally Jan 26 Rolex 24’s Around the Clock Music Fest begins

Year 2

Date (Time frame) Milestone (event)

April /May of ‘20 Meeting with Event Production Company

May /June of ‘20 Research of vendors, brands and collaborators

June /July of ‘20 Acquiring of licenses, permits, legal advice

July / Aug of ‘20 Contracting of graphic designer and web host

Aug / Sept of ‘20 Pre-marketing campaing (announcements, radio promotions)

Strategic Business Proposal Page 20 of 33

Sept / Oct of ‘20 Official marketing campaing begins

Oct / Nov of ‘20 Hire extra staff for event

Nov / Dec of ‘20 Early ticket sales begin/ early VIP early ticket sales

Dec / Jan of ‘21 Offical ticket launch

Jan / Jan of ‘21 Finally Jan 25 Rolex 24’s Around the Clock Music Fest begins

Year 3

Date (Time frame) Milestone (event)

April /May of ‘21 Meeting with Event Production Company

May /June of ‘21 Research of vendors, brands and collaborators

June /July of ‘21 Acquiring of licenses, permits, legal advice

July / Aug of ‘21 Contracting of graphic designer and web host

Aug / Sept of ‘21 Pre-marketing campaing (announcements, radio promotions)

Sept / Oct of ‘21 Official marketing campaing begins

Oct / Nov of ‘21 Hire extra staff for event

Nov / Decof ‘21 Early ticket sales begin/ early VIP early ticket sales

Dec / Jan of ‘22 Offical ticket launch

Jan / Jan of ‘22 Finally Jan 27 Rolex 24’s Around the Clock Music Fest begins

6: Future Plans

Long-term Opportunity & Development Plans

The long-term goal for the VIP experience and 12-hour festival is to gain more customers to the Rolex

24-hour racing event. Over a three-year period, by slowly adding more technological and modern events,

we will reach a younger fan base as well as our target market. We see the potential to add virtual reality

elements to our technology booths as well as develop a collaboration with an app company to create a

phone app to give customers the opportunity to enjoy the event card free.
 Strategic Business Proposal Page 21 of 33

7: Appendices and References

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Appendices

Appendix 1: Competitive Analysis

The following chart gives us a visual representation of our industry competitors giving us a clear vision
of the areas we can improve on or capitalize on. We have taken in consideration venue capacity, square
feet, social media numbers and services provided. This charts allows us to view our strengths and
weakness compared to other organizations who might target the same audience as the Rolex 24.
Strategic Business Proposal Page 31 of 33

- Capacity Square Ft. Facebook, Twitter & Services

Instagram Following

Daytona 167, 785 1,400,000 square 1M Facebook Followers Racing Events

International feet
Speedway 157K Instagram Followers Corporate Events

24.1 K Twitter Followers Weddings

Birthday Events

Private Events

Musical Acts

Community Events

Charity Events

The Pea Body 2,521 3,000 square feet 15K Facebook Followers Community Events
Auditorium
255 Instagram Followers Musical Acts

Civic Programs

Theatrcial Events

The Ocean 9,440 205,000 square 7.1K Facebook Followers Music Venue
Center feet
3. 8 Twitter Followers Corporate Events

Art Exhibitions

National Conventions

Social Events

Daytona Beach 8,505 17,000 square 7.2 Facebook Followers Lodging

Resort Hotel and (Grand feet
Suites Ballroom) 2.8 Twitter Followers Corporate Events

Music Events

Weddings
Strategic Business Proposal Page 32 of 33

Appendix 2: Organizational Chart

Color Distribution:

Red: Organizational tasks; at the top of the desicion making branch.

Blue: Internal tasks related to the company.

Purple: Exrernal tasks and audience reach.

Appendix 3: Financial Charts

Strategic Business Proposal Page 33 of 33

(Yahoo Finance, 2019)

Appendix 4: Expenses Chart

- Year 1 Year 2 Year 3

Expenses - - -

Marketing $342,157 $344,100 $350,350

Employees $6,672 $6,814 $7781

Payroll Taxes $1,334 $1,363 $1,556

Prof. Services/artists $1,340,000 $1,372,000 $1,412,000

Equipment $3,975 $3,980 $3,985

Facilities Expense $121,776 $121,776 $121,776

TOTAL Expenses $1,815,915 $1,850,033 $1,897,449

Net Profit/loss $5, 006,485 $5,697,667 $6,375,851