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THE ALAMO DRAFTHOUSE
Group 3
Anurag Awasthi 120208411xx
Gaurav Karanwal 12020841136
Nitin K Gond 12020841148
Shubham Singh 12020841167
Sukhjit Singh Ghuman 12020841170
Vishal C.Patel 12020841173
Introduction
• Started in Bakersfield, California but failed by picking the wrong place
• In 1996 they opened Alamo Drafthouse in Austin’s Entertainment district.
• Second – run movies for 25-40 year olds• Special events– Austin Film Society Events– Cult films (18-30 years )
Key Highlights
• Unique order servings of beer/wines, appetizers • Waiters serve and collect bill before and during
movie with no verbal communication• Ticket Price: $ 4.00• Average spending $5 to $12• 55% of income comes from food and rest 45%
from alcohol.• Limited capacity of 214 seats and high labor costs
Question 1
Marketing analysts use market position maps to display customers' perceptions of a firm in relation to its competitors regarding two attributes
“Food quality" and “Movie selection" as axes.
Good
Bad
BroadNarrow
Movie Selection
Food
Qu
alit
y
ALAMO DRAFTHOUSE
Question 2
Use "Strategic Service Vision" framework to describe “Alamo Drafthouse” in terms of target market segments, service concept, operating strategy, and service delivery system.
Target market segments
• Austin's residents
Region
• Smart 25~40 year-olds→ Second-run movies-
• 18~30 year-olds predominantly male→ Cult-movies
Demographic
Service concept
Theater that serves food and alcohol during movie
Serving second-run movies
Not disturbing the moviegoers
Operating strategy
Providing pleasing experience movies along with food and drinks
Long skinny tables with enough space for undisturbed serving
Service delivery system
Waiters don't speak during movie and they explain the rules to customers
Many waiters (15-17)
Effective facilities (space and paper communication)
Good food service
Answering every piece of e-mail personally
Question 3
Identify service qualifiers, winners, and service losers for “Alamo Drafthouse”. Are the Alamo purchase decision criteria appropriate for the multiplex movie theater market? What do you conclude?
Service Qualifiers
Movie playing selection
Food Quality
Service Winners
Convenience
Shorten hours and
raise satisfaction
by doing two things at the same time
Unlike most theaters,
accommodate tables where
consumers can place their food and drinks
Enough space between rows exists so that personnel can
take orders and serve and
customers can slip out
Price
Keep ticket price low, typically
$4.00
Adequate location
Downtown area with floating
population
Service Losers
Alamo has just 215 seats, reason being that they wanted to leave enough space in between each seat
Showing second-run features and cult movies, it is limited to particular age groups
Alamo purchase decision criteria
Alamo is located in downtown. Short walk from one of the main
club and restaurant areas.
Attracts people who like second-run features and
cult-movies.
Provides three services with
minimum verbal communication
Conclusion
• Purchase decision criteria not matching multiplex– Central Location not Needed–Mass audience
• Purchase decision criterion matching multiplex– Special services provided by GOLD class cinema
for limited seats.
Question 4
Make recommendations for Tim and Carrie that would increase profitability.
Suggestions
Price of movie ticket should be based on
• Day Screened• Age Group (Student Discount etc)
Increase ticket prices of Special Events
It needs to show recent movies, not just second-run features and cult-movies.
THANK YOU