character House entertainment: the moana character expansion Harvard Case Solution & Analysis

character House entertainment: the moana character expansion Case Study Solution

With Corporate events, Character House would have almost net profit of almost $3618 because they are charging more as compare to previous prices from this group of customers. Because this theme requires Character House to spend more in order to organize professional event with fun filled performances that can encourage the substantial amount of revenues along with more brand recognition and brand. With the advertising expense of $3000, Character House would be capable enough to generate almost $10,000 sales. By assessing the Moana themed opportunity solely for corporate events, 84 % would be the contribution margin in terms of sales from this customer group.

A differential analysis is being done in order to understand the opportunities of both including residential and corporate customers when considering the addition of Moana characters. We can see from the analysis that an additional net cash flows amounting $7962 is being estimated from residential customers.

The return on investment is high for the residential customers with an estimation of 87% while corporate customers have only 21% ROI. So there is an increase of almost 66% from the residential customers while considering the Moana characters. The whole investments would be recovered in almost Nine years from residential customers while corporate would take almost 39 years which is a huge time period and with the passage of time, the new customer’s preferences would be adopted in order to sustain in the market.

So based on the analysis, we would recommend Character House Entertainment for the Residential customers for Moana characters because in this way not only the profits would be generated but positive word of mouth would be increased that leads to high customer base.

Qualitative Analysis

Based on the quantitative analysis of every alternatives, the founder, Daisy Stargell, is recommended to avail the Moana-themed opportunity for residential customers because with the doubled marketing expenditure for corporate events, sales are not as much generated as of residential customers. Prices would be charged same from the residential customers as of the previous year so there are more chances that customer base would increase because every parent would like to have more fun with their kids at their special day and kids would be happier with the new theme of Moana and Maui. While Character House would charge more prices as compare to previous year for this Moana-themed opportunity so there are chances that this group of customer may not organize events from Character House. The Net profit margin is also high in residential customers as compare to corporate customers..............................

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