Essay on ALLTEL Pavilion Individual Memo

Submitted By Huirui-Liu
Words: 498
Pages: 2

To: ALLTEL Pavilion
From: Huirui Liu
Subject: Individual Memo
Date: 11/13/2014

The ALLTEL Pavilion is an outdoor amphitheater that provides live concerts to the public. The mission of the company is “a concert…it’s better live” and the job of the staff during a concert is to make sure every customer of the ALLTEL Pavilion has a pleasure experience. So the strategy of ALLTEL Pavilion is differentiation. The critical success factor for Pavilion to achieve its goal of continuous annual growth in operating income is to ensure the each individual customer has pleasant experience during each show. Each show, for different artist, ALLTEL Pavilion should analysis different audience and make corresponding preparation and setting for the concert. In this way, ALLTEL Pavilion can meet different audiences’ need and ensure the continuous success in operating income.

Pam, manager of the ALLTEL Pavilion, will want to know how to better differentiation each concert and how to meet different audience. The pop artists should be differentiating from classic singer, the music voice, the lighting effect, the ticket price should meet the corresponding scenario. Pam will want to know more detail about how to differentiate the price, the cost and profit as for different audience and for different seating area. So the CVP analysis is crucial to indicate how to earn the maximum profit and forbid the unnecessary cost as much as possible.

I recommend to do CVP analysis, including total variable cost, total fixed cost, total contribution margin, variable cost per ticket holder, fixed cost per ticket holder and average revenue per ticket, contribution margin percent, breakeven point to calculate the number of ticket to sale so that ensure the certain satisfied profit, operating leverage. The sensitive analysis will allow the manager use “what-if” scenarios to identify the uncertainties in ALLTEL Pavilion profit planning. At meantime, the ALLTEL Pavilion sells…