JYDC (Jozi Youth Dance Company) is a platform to showcase up-and-coming dancers. Dancers perform on a professional stage and are exposed to many different professional choreographers. Currently, JYDC has a company for kids, and young adults, who pay a fee after having made the cast, and the final aim is to produce a professional show. The owner is considering opening a dance company for adults working and getting paid as a full-time job. This investigation will assess and recommend the implementation of this decision for the long-term success of JYDC.
Ansoff’s matrix for growth: Analyze entering a new market and product as an option for growth. Ansoff’s options for growth consider 2 variables market and product. This matrix will display the options for JYDC and discuss the risk of diversification.
Break-Even Analysis: Compare and determine when JYDC will be profitable when opening the new company vs. currently. A break-even analysis will determine what quantity of products JYDC needs to sell (when paying dancers – cost) to be profitable. Compared to how many products they sell for the current youth company (do not pay dancers).
Target market (audience type, demographics): Identity which market to enter, thus what market segment to target. An evaluation of the target market. Importance of customer’s need vs. the new product being offered
Firstly, an Interview with a JYDC spokesperson to ask about profit, costs, and target audience. Also, a short Interview with a past Youth Company teacher. Moreover, contact Roodepoort theatre (where big productions happen in Johannesburg- including JYDCs previous shows) to determine theatre rental fees. Finally, survey to adult dancers and future adult dancers.
Secondary research includes databases and posts on South African dance studios or companies. For guidance, Business Management Guide.
| Difficulties | Solutions |
|---|---|
| Financial data - Not given enough access to all the financial accounts of the company. | Determine only what is needed for a Break - Even analysis and ask the owner for this information in a conscience manner. |
| Surveys and convenience sampling - Due to time and cost constraints, the surveys are sent out by convenience sampling. Convenience can lead to bias and not very accurate results. | Many survey responses will be collected to increase different characteristics (individuals) within an audience. Also, to access a wider range of population of concern. |
| Surveys - Can be more general than specific | Add 1 or 2 open-ended questions to get more specific insight and responses about the business and its product. |
| Confidentiality issue | Establish information to be shared and which not to be shared beforehand. |
| Limited access all costs of a show | Include the most crucial costs to compare in Break Even Analysis |
Figure 1 - Table On Anticipated Difficulties
I would like to thank JYDC for sharing information with me about the business. I would also like to thank the South African Dance industry for further information, as well as for inspiring this investigation.
Jozi Youth Dance Company (JYDC) is a dance studio and company in Johannesburg, South Africa. Since last year the owner has been contemplating the idea of opening a new South African Dance company for young adults/adults who can take this as a professional job. This investigation aims to assess and recommend the implementation of this decision for the long- term success and profit of JYDC. Primary research was the main method of research: An Interview with a JYDC spokesperson was carried out to ask about profit and target audience. Also, Interviews with past Company teachers. Finally, a survey was sent to local dancers. The investigation found that JYDC needs to develop a new product in a new market – diversification - and if successful long term, it can be rewarding. The survey found that dancers care about diversity and salary. Market research needs to be carried out to implement diversification correctly in accordance with consumer needs. Finally, it appeared that JYDC's opening a new company would result in a considerable increase in profitability. This investigation focused on company productions, and it did not consider other factors of cost and revenue that can affect a company due to factors in the external environment.
Jozi Youth Dance Company (JYDC) is a dance studio and company owned and directed by Jayd. Since 2013 Jayd opened a company for young dancers who would train additionally to their regular dance classes, to put on a professional show. The company aims to train professional dancers and showcase these dancers, along with South African choreographers. Currently, their priority is the company show and studio, both income forms, as the students/cast pay a monthly fee. Since last year the owner has been contemplating the idea of opening a new South African Dance company for young adults/adults who can take this as a professional job.1 This investigation researches various aspects and stakeholders to assess the risk and/or benefits of entering this new market and audience. The business tools utilized in this report include an Ansoff Matrix to discuss diversification, target market discussion to evaluate the audience, and a break-even analysis of the current vs. possible profit to analyze the benefit of the decision.
Firstly, an Interview with a JYDC spokesperson who obtained information from director Jayd. The interview happened over text messages. The interview obtained information about the audience of the adult company as well as information about the profit and cost of the current company. While the data was clear and useful, it was limited due to confidentiality and timing issues. Second, a simple question was asked to a past Youth Company teacher to find out the salary per class. Also, an email conversation with Roodepoort Theatre (where JYCD shows are held) revealed the prices of renting the theatre.
Finally, to include an external stakeholder and target audience, a survey was sent out to 11 local dancers between the ages of 16-32. The survey included multiple-choice and open- ended questions about what dancers looked for in a paying adult company in the context of South Africa. The survey was convenience sampling, which can lead to less reliable results. Some respondents have participated in the Youth company, although some have not. The survey included 11 diverse dancers with experience in the South African Industry. The information from the Roodepoort theatre via email showed theatre rental fees, which is a fixed cost. Secondary research includes social media posts from JYDC. The information from JYDC, the teacher, and Roodepoort Theatre was used to determine variable costs, fixed costs, and revenue info. to complete and compare two break-even analyses – one for the current company and one for the possible paying company. The survey was used to discuss the target audience and the needs and wants of the dancers, useful when assessing entering a new market. An Ansoff Matrix will illustrate and discuss JYDC's idea of entering a new market and audience. Ansoff Matrix displays options for growth, while the risk is measured reward or success is not directly assessed.
The survey revealed that most dancers between the ages 16 - 32 (72.7%) are interested in joining an adult company as a job. Followed by 18% having said maybe. Moreover, there seemed to be a division between part-time and full-time jobs. 55% mentioned they would prefer a part-time job in a dance company. From the pie chart, it can observe that the majority (54.5%) of dancers would accept a minimum of 20,000 - 30,000 ZAR per month as a salary. Followed by 27% accepting R10,000 - 20,000 and finally, a minority having said R40,000 +. The survey also included open-ended questions, which will be discussed more in detail later.