alamo final

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THE ALAMO DRAFTHOUS E Group 3 Anurag Awasthi 120208411xx Gaurav Karanwal 12020841136 Nitin K Gond 12020841148 Shubham Singh 12020841167 Sukhjit Singh Ghuman 12020841170 Vishal C.Patel 12020841173

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Page 1: Alamo Final

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

Page 2: Alamo Final

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 )

Page 3: Alamo Final

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

Page 4: Alamo Final

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.

Page 5: Alamo Final

Good

Bad

BroadNarrow

Movie Selection

Food

Qu

alit

y

ALAMO DRAFTHOUSE

Page 6: Alamo Final

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.

Page 7: Alamo Final

Target market segments

• Austin's residents

Region

• Smart 25~40 year-olds→ Second-run movies-

• 18~30 year-olds predominantly male→ Cult-movies

Demographic

Page 8: Alamo Final

Service concept

Theater that serves food and alcohol during movie

Serving second-run movies

Not disturbing the moviegoers

Page 9: Alamo Final

Operating strategy

Providing pleasing experience movies along with food and drinks

Long skinny tables with enough space for undisturbed serving

Page 10: Alamo Final

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

Page 11: Alamo Final

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?

Page 12: Alamo Final

Service Qualifiers

Movie playing selection

Food Quality

Page 13: Alamo Final

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

Page 14: Alamo Final

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

Page 15: Alamo Final

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

Page 16: Alamo Final

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.

Page 17: Alamo Final

Question 4

Make recommendations for Tim and Carrie that would increase profitability.

Page 18: Alamo Final

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.

Page 19: Alamo Final

THANK YOU