Student

1. ALLTEL has attempted to create a competitive advantage as the major outdoor concert venue in a multi-city region. The firm has distinguished itself from its competitors by providing a unique experience to its customers. The unique value of the product would be: advanced technology, no bad seat in the house, beautiful outdoor setting, wonderful atmosphere, outstanding parking and food concession. Their strategies are to maximize net operating income by reducing the non-artist costs of operating an event. ALLTELL will have to find creative ways to reach a large audience while minimizing all costs unrelated to the talent. The critical success factors for the Pavilion are numerous: the only sheltered outdoor venue in the area, availability of parking, excellent and clean facilities, well maintained grounds, customer’s opportunity for reserving VIP (A) seats, advanced technology, and the following of current trends concerning artist booking. The Key Performance Indicators are based on advertising media. They have researched the most effective advertising in each region of the state in order to maximize ticket sales with the least advertising costs, which eventually will create profitability. Finding ways such as flyer distribution in the parking lot for upcoming events are clever ways to advertise at a very low cost.

2. In order to determine the cost-profit analysis of the KFBS concert at the pavilion, two groups must be addressed – those customers who paid for tickets, and the customers who received complimentary tickets. Because there are multiple ticket types, we must use the total variable costs and the total revenues.

Type | Variable | Fixed | Total (from Flash report) | Parking | .1*19,767 = $1977 | $4,448-$1977= $2,471 | $4,448 | Concession | .1*79,273 = $7927 | $43,456 - 7,927 = $35,249 | 43, 356 | Merchandise | .1*36,428 = $3,643 | $17,826 -3,643 = $14,183 | 17,826 | Total | $13,547 | $52,083 | $65,630 |

Other Variable Costs and