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Lady Gaga's Tour with Kanye West

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Lady Gaga A
As Robert Burns said “The best laid plans of mice and men often go astray”. In the third quarter of 2009 Things were looking up for Lady Gaga. She had just announced a joint tour with Kayne West. Together they would be able to sell out big arenas and put on that grand production. This collaboration was a cost effective way to put on a grand performance. It was cost effective because they were splitting the cost of a large scale production. This gave each of them the cost of a mid size theater while getting the venue of a large one. This could serve as a spring board for Lady Gaga’s career. She had a larger than life style, but did not yet have the proven market to go it alone. The two of them together gave a security …show more content…

How could this option positively or negatively affect her brand? As I stated earlier it is better to sell out small than have an empty large venue. This is not only true because of the greater variable costs associated with the large arena, but selling out are essential to building her brand. When you look at her headlining performances in early 2009 she was successful selling out small arenas. All have less than 2000 seats. For her to jump to the 6-8 thousand seat area after a few hit records and several awards is a reasonable expectation. These venues are still three to four times larger than she did just six months earlier. Selling this amount of seats would be a lot more attainable than 16-20 thousand would be. This brand factor is the most important thing to consider.
The show won’t go on
The last option is to cancel the tour all together. This in an interesting option because at first glance it may appear to have some important benefits. While no one likes to throw money away any good business person will tell you it is worse to throw good money after bad. There is a reason that a coach calls a time out when something goes wrong. It is to stop and evaluate the situation and come up with the best plan to move forward.
From a cost perspective it would certainly be the most affordable to not spend the money on a tour, but what would that do to her overall revenue stream. When you look at the industry trends it is very clear that people are not

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