Cirque du Soleil Company’s Marketing Strategy Case Study

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Updated: Feb 2nd, 2024

Introduction

Creating the environment in which an organization will be able to excel in its performance and improve the quality of its products and services consistently is crucial to further success. However, to facilitate unceasing progress in the context of the contemporary global economy, the leader of an organization must set the company’s priorities straight and define the niche that it will take in the target market. The specified process is especially challenging for the firms operating in the entertainment industry since disruptive innovation technologies compel them to invest in R&D and marketing extensively.

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Background

Cirque du Soleil is a prime example of a company that has a well-established presence in the global market yet needs a renovation to meet the ever-growing quality standards of the target population. The current marketing strategy, in general, and the company’s positioning statement along with its purpose brand, in particular, will have to be altered so that Cirque du Soleil could remain competitive in the modern entertainment industry and measure up to the standards set by buyers.

To stay relevant in the present-day entertainment industry, the company should consider rethinking its pricing strategy and the current approach toward allocating its resources. Therefore, it will be reasonable for Cirque du Soleil to position itself not only as an elite entertainment company but also as the organization that is willing to provide its services to all those willing to attend.

Positioning Statement

Cirque du Soleil has cemented its image as an entertainment organization that has been pushing the envelope in the design of its attractions and the quality of performance.

Audience Segmentation

While a circus typically offers shows for audiences of all ages, Cirque du Soleil conducts a comparatively rigid age-based strategy when categorizing its performances. Therefore, there is a distinct audience segmentation strategy in the company. While the organization provides entertainment for children and teenagers, it also designs the shows that have age restrictions (Simon 4). Furthermore, Cirque du Soleil appeals to specific audiences based on their income.

Because of the innovative approaches used to design the performances, the pricing strategy of the organization is quite rigid, and most tickets are sold at very high prices that range from $200 to $700 and higher (”Garanta O Seu”). Therefore, the current audience segmentation implies catering to the needs of upper-class citizens for the most part. While the specified approach is rather sensible, there are reasons for Cirque du Soleil to consider the opportunities for attracting people from other social backgrounds (e.g., middle-class citizens) to attend their performances.

Frame of Reference

When considering how the organization frames itself, one must bring up the fact that the safety of both performers and viewers is deemed as the number one priority at Cirque du Soleil. The focus on enhancing the safety levels during performances is an important step for the company that positions itself as the entertainment organization that pushes the boundaries of entertainment and seeks new ways to shock its audience with masterful and artistic performances.

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Furthermore, the emphasis on quality remains consistent and essential to the very existence of the organization. The active promotion of innovative technology, regular training, and the use of only high-quality instruments to plan and arrange a show that will meet the quality standards set by the organization and that the target audience expects Cirque du Soleil actors to deliver. Furthermore, the necessity to make the show memorable and, therefore, cement the image of the company in the audience’s minds can be viewed as one of the top priorities at Cirque du Soleil.

Point of Difference

As stressed above, the quality and impression produced by Cirque du Soleil can be considered the primary characteristic that sets the company aside from other entertainers. However, apart from the performance technique, the company should also be credited for the effects that it creates. Also, the costume choices are truly outstanding. Therefore, the visual elements of the performance can be considered the primary point of difference that makes the organization unique and helps it create the brand image that the target audience will remember for years.

Purpose Brand

Artistic integrity and the promotion of global citizenship can be considered the basis for building the purpose brand for Cirque du Soleil. Therefore, in case the organization wanted to redefine itself as a purpose brand, it would have to explore the opportunities for encouraging multiculturalism and cross-cultural communication. Indeed, seeing that Cirque du Soleil tends to incorporate the elements of different cultures, themes, and ideas in its performances, the enhancement of multiculturalism seems the next logical step to take when shaping itself as a purpose brand. Thus, the premise for introducing the target audience and the company members to the idea of global citizenship and the relevant notions can be built.

In other words, the enhancement of intercultural communication using combining entertainment and art should be regarded as the primary goal of the organization. The company views itself as more than merely a team of entertainers. Instead, they believe that they create art and, thus, help people transform their understanding of the world and their place in it (“Introduction”). Herein lies the significance of redefining the company’s purpose and philosophy. As soon as the principles of multiculturalism start being promoted in the environment of the organization, new customers can be attracted.

SWOT Analysis

Strengths
  • A highly profitable company with an increasingly high revenue streak;
  • Has a loyal audience willing to watch the show even if the price of admission is comparatively high;
  • Has well-established presence in the market as an entertainment organization with unparalleled performances;
  • Has a well-defined brand image as a company providing expensive, high-quality, and culturally relevant entertainment;
  • Sets unforgettable shows that are viewed as artistic experiences rather than simply a ply for a cheap laugh;
  • Diversified products (live performances, TV shows, movies, merchandise, etc.);
  • Loyal staff members willing to engage in active professional growth (Ghazzavi et al. 27);
Weaknesses
  • Has a very rigid pricing strategy that is defined by the quality of the performance, the types of materials used for the show, the level of staff training, etc.;
  • Sets very high prices that do not allow middle- and low-class citizens to attend its shows;
  • Is not prone to changes as far as its marketing framework and the choice of customers are concerned.
Opportunities
  • Attracting new customers;
  • Reinventing the brand image;
  • Promoting multiculturalism and encouraging cross-cultural communication;
  • Exploring new ideas and how they can be interpreted using the available artistic tools;
Threats
  • Possibility of failing to attract new audiences ;
  • Failure to retain the current public due to a change in the pricing policy and the types of performances;
  • Increasingly high production expenses combined with a drop in the number of viewers attending the show;
  • The emergence of organizations offering similar services that are slightly worse in quality and significantly lower in price than the ones of Cirque du Soleil;
  • Failure to appeal to the representatives of middle- and low-class population due to poor research and inadequate product branding (“Working with Cirque du Soleil”).

As the results of the SWOT analysis indicate, there is a necessity to reconsider the current approach toward audience segmentation and the organization’s method for allocating the available financial resources. Particularly, the pricing strategy will have to become more customer-friendly. Cirque du Soleil’s administration will have to invest in its production values, though, seeing that the expenses for the required resources are bound to rise.

It should be borne in mind that the company has been trying to target middle-class spectators along with the ones belonging to higher classes (Gateau and Simon 12). While the specified approach can be deemed as sensible in the light of the fact that the organization needs to expand, it could use certain adjustments. For instance, a change in the choice of the performance types can be considered a necessary step in addressing the needs of customers. Particularly, Cirque du Soleil will have to appeal to the specifics of other customers’ cultures and social backgrounds.

The specified approach will require a careful market analysis. Strong emphasis must be placed on studying the current culture-related issues and the ways of rendering them artistically. Thus, Cirque du Soleil has a plethora of opportunities that it can explore, yet it is the choice of marketing and branding tools that will define its further success.

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Works Cited

“Garanta O Seu.” Cirque du Soleil, 2017. Web.

Gateau, Thierry, and Laurent Simon. “Clown Scouting and Casting at the Cirque du Soleil: Designing Boundary Practices for Talent Development and Knowledge Creation.” International Journal of Innovation Management, vol. 20, no. 04. 2016, pp. 1-31.

Ghazzawi, Issam A., et al. “Cirque du Soleil: An Innovative Culture of Entertainment.” Journal of the International Academy for Case Studies, vol. 20, no. 5, 2014, pp. 23-35.

“Introduction.” Cirque du Soleil, 2017. Web.

Simon, Laurent. “Setting the Stage for Collaborative Creative Leadership at Cirque du Soleil.” Technology Innovation Management Review, vol. 5, no. 7, 2015, pp. 1-4.

“Working with Cirque du Soleil.” Cirque du Soleil, 2017. Web.

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IvyPanda. (2024) 'Cirque du Soleil Company's Marketing Strategy'. 2 February.

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IvyPanda. 2024. "Cirque du Soleil Company's Marketing Strategy." February 2, 2024. https://ivypanda.com/essays/cirque-du-soleil-companys-marketing-strategy/.

1. IvyPanda. "Cirque du Soleil Company's Marketing Strategy." February 2, 2024. https://ivypanda.com/essays/cirque-du-soleil-companys-marketing-strategy/.


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IvyPanda. "Cirque du Soleil Company's Marketing Strategy." February 2, 2024. https://ivypanda.com/essays/cirque-du-soleil-companys-marketing-strategy/.

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