Alltel Case.docx - Case Study on Alltel Pavilion Submitted...

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Case Study on Alltel Pavilion Submitted By INTRODUCTION
Alltel Pavilion The ALLTEL Pavilion in Raleigh, North Carolina is an outdoor amphitheater that provides live concerts to the public from April through October each year, hosting as many as half a million patrons a year. The seven-month season usually hosts an average of 40 concerts, and 12 year-round staff plan and manage each season. SFX Entertainment Inc. SFX is one of the largest diversified promoters, producers, and venue operators for live entertainment events in the United States. It has 71 venues either directly owned or operated under lease or exclusive booking arrangements in 29 of the top 50 U.S. markets, including 14 amphitheaters or pavilions in 9 of the top 10 markets. Pavilion has two types of customers (paying ticket holders and free ticket holders) and earns profits from three types of revenues (ticket revenues, concession revenues, and parking fees). They have certain competitive advantages as they have beautiful ambience and technologically advanced. Focusing on the 5 market regions in Marketing is working well for them and allows them to target the right customer segments. They have a good market reputation still they are currently failing to earn budgeted profit and goals. This could be due to several factors like artists charges high fees due to the ongoing trends and as they lack a major entertainment complex. They still need to resolve these problems if they want to generate higher profits. The world is moving fast and just because they are earning above break-even point that does not ensure their long-term success. Our analysis and recommendations will highlight these factors further.
CRITICAL SUCCESS FACTORS FOR ALLTEL The ALLTEL Pavilion has a distinguished competitive strategy that should allow the company to achieve its goal of annual growth in operating income in the future. While ALLTELL did not earn the budgeted profit goal this year, the firm has the right characteristics and flexibility to adapt for the coming years. Generally, how a business is positioned relative to its industry will determine whether its profitability can be maintained above the industry average. In order to be profitable long term, a business must have a sustainable and competitive advantage and surpass average performance in the industry. Product Differentiation: Exceptional product ALLTEL Pavilion establishes itself as the only major outdoor concert venue, setting it apart from its rivals. ALLTEL outsources parking, food concessions, and merchandise operations to other service providers to ensure that each customer has a positive experience. The land and equipment are well managed to ensure customer satisfaction. Branding : ALLTEL Pavilion provides consumers with a consistent brand experience by bringing concerts to life and offering a high-end experience. To establish its brand in its 5-market region, marketing has played an important role in the success of ALLTEL Pavilion. The company makes sure to appeal to the fans by

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