Hanson Production: Pricing for Opening Day Case Solution
The strengths of the Hanson Production include:
- Hanson production is the well-established and well recognized production company. This helps the company to achieve the growth and productivity in the industry as a global producer.
- Skills of President of Production Joanne Shen are the main strength of the company.
- Another strength of the Hanson production is its focus on the quality of arts productions. In addition to this, a selection of art material has played an important role in their success in order to attract an audience in the industry.
- The company has also achieved many Tony awards for both musical and plays.
- Joanne Shen has a tremendous relationship with agents and managers as well as her association in the industry.
The weaknesses of the Hanson Production include:
- Inability to make timely and accurate decisions for its upcoming new production.
- Expansion of the work force at slow speed from the beginning of the Hanson Production is another weakness of the company.
- The company mainly dependent on the abilities and capabilities of the Joanne Shen.
- Hanson Production is mostly focused, on developing the market of New York City rather than different locations worldwide.
The opportunities of the Hanson Production include:
- To expand their market into another location around the world as this will help the company to increase the growth as well as the profitability of the Hanson Production.
- Another opportunity of the company is that it can attract the audience by targeting them on the basis of different segmentation groups.
- Serve the Venuses that are not currently assisted by the other companies in the industry. This will help the company to increase its brand awareness among the people.
The threats of the Hanson Production include:
- The major threat to the Hanson Production is associated with its current production of that based on the Detroit Riots. As, if this fails, it will negatively impact the performance as well as the publicity of Hanson Production.
- Making pricing decision for tickets is another threat that the company is facing as charging both high and low will impact the reputation of the company’s show.
- Termination of the show by the theatre owner as if the gross profits of the show fall below the operating cost for conducing the show is another important threat to the company.
- Decrease in the demand for their new production is another threat that the company may face.
- Changing lifestyle and the preferences of the people around the world that may create difficulties for the company in order to attract the customers to attend their show.
The president of production of Hanson Production was facing several problems related to the making of different decisions about their current production. The most important challenge for the Joanne Shen was making a final ticket pricing decision that attract the largest number of audience. As, making choices regarding the pricing structure of the ticket was the most critical issue that the company was facing since setting the price of tickets appropriately can influence the achievement of the production. Other problems have included location for the show, how many seats should be in the theater and how to promote as well as market the production.
How did Hanson Production deal with the problem
Hanson Production evaluated the financial situation of The Detroit Riots Production in order to come over the challenges of their new production. Furthermore, president of production of Hanson Production in order to target and attract the larger audience for their new show had conducted the market research. The reason for conducting market research was to evaluate the expected audience for their new production as well as to make effective and timely decisions about different aspects of their new show.
Additionally, the company had also made projections for the tickets as well as the estimated budget for conducing the show in the theater. While, Hanson Production had been in detail talks with the three theaters owners that include Hilton Theatre, the Longacre Theater and the St. James Theater .Also, the theater budgets for these three New York Theaters also analyzed in order to select the theater .According to the analysis conducted by Hanson Production, the total fixed cost for the Longacre Theater was $576,437 and total fixed cost for the St. James Theater was $623,298 whereas total fixed cost for the St. James Theater was $637,025.
Moreover, the theater seating charts and layouts for these Three New York Theaters also analyzed by the company in order to determine the placement and size of each theater so that the decisions about the numbers of the seat can be easily resolved…………….
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President of production at Hanson Productions, an off-Broadway production of the company was faced with the same situation for each production Broadway: where to find out how much space that to charge and how to promote and sell the produce. There are three separate places, with three separate offers value to the studio, the body and the audience. While bigger is more space and more revenue for each show, there is the potential percentage, which must be considered in the decision due to the increase in rental costs. Less space can lead to a higher percentage of capacity, but end up leaving money on the table. Ticket prices must be set in advance for the sale of, any price change after this period will effectively hurt future sales – especially if the price is at a discount. Definition promotion partner can reduce the risk of potential failure, but are more expensive, profit and return on effect on the chart. “Hide
and June Cotte, Peter Famiglietti Source: Richard Ivey School of Business Foundation 14 pages. Publication Date: May 20, 2010. Prod. # 910A11-PDF-ENG
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