Research Article
Value Innovation of the Credia
1 Chung-Ang University
Published: January 2020 · Vol. 24, No. 2 · pp. 1-27
DOI: https://doi.org/10.17287/kbr.2020.24.2.1
Full Text
Abstract
The purpose of this study is to analyze the strategies of the Credia, a highly touted agency in the classical music performance field, from the perspective of value innovation theory. The classical music performance industry has been recognized as having low profitability and growth potential due to its labor-intensive nature of being dependent on a small number of famous artists, limited seating capacity, and small audience pool. Despite this hostile environment, Credia is performing well in the box office, hosting the largest number of performances annually in the country and winning the largest number of audience awards at the Seoul Arts Center. Credia differentiated itself from its competitors by offering new values that were not provided by the existing performance agencies or even the customers themselves never knew, thus attracted non-customers of the existing classical music performances to its new customers. Utilizing K-Pop agencies idol group management strategies, Credia formed an Ensemble Ditto, a group of artists for Chamber music, which is called the idol of the classical music field by its fans, Credia emphasizes life stories and attractive appearance of Ensemble Ditto’s artists for its marketing and let the artists to actively engage in non-musical activities and communications with fans, These are new values different from the existing customer value of famous performers and familiar repertoires emphasized by traditional agencies, thus Ensemble Ditto attracts non-customers of the existing classical music to its new customers. Credia also was able to effectively meet the needs of its customers by expanding its business vertically through the membership system called Club Balcony and ticket sales service. Credia's Park Concert solves the problem of limited seating capacity by moving performance venues to outdoor parks and drastically alleviates the formality required for listening to classical music, allowing admission of children, on-site food and beverage consumption and taking pictures, and the sales of MD products. It provides new value and recruits family-level customers who were non-customers of existing classical music performances as new customers. Credia's series of strategies were considered to create the ‘Blue Ocean’ and provided useful implications for understanding the value innovation theory.
