Tourists will see it as a means to experience American history. Even if Hanson avoids any direct mention f the socio-political significance of the work, the subject matter itself ensures a solid core audience to attract.. Maintain an attendance of at least 90% for a minimum of the first nine months. 2. Recoup capital investment within the next year 3. Allocate the $1. 5 million marketing budget proportionately to the target audience of the musical. There are multiple advertising options for the musical.
These have been separated into four bundles, each one option: The first bundle consists of print ads such as posters, brochures, bus ads, and newspaper advertisements. This focuses around appealing to those who prefer traditional media and advertisements to word of mouth. The second bundle centers around electronic media such as television commercials, radio ads, and a Tony Award show campaign. This focuses around appealing to those who don’t like discrete advertisement but don’t mind it mixed in with other media. The third bundle is Internet-centered.
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This bundle would include a website dedicated to the musical; internet marketing such as online banners and email blasts. This option is useful to travelers and younger people for whom other options re inaccessible. The fourth bundle is directed towards direct contact through things such as direct mail, group sale prices, educational programs, hiring a press agent, and a press video. This option is useful for appealing to those who like a personal connection with the company rather than cold, directionless advertisements. 4 THEATRE OPTIONS There are three theatres available, with four options between them.
Analysis performed per Exhibit 2 provides figures for both low and high attendance levels and low and high ticket prices. Low attendance, low ticket price is the “worst case” scenario. High attendance, high ticket price is the “best case” scenario. The Longer Theatre is the only theatre for which Hanson may experience a loss at low attendance levels. Even in the best case scenario, it would take 123 weeks to recoup Hansom’s James Theatre will recoup Hansom’s capital investment in 51 weeks in the worst case scenario, requiring 93% attendance rate to do so.
At the higher ticket rate, Hanson will recoup their capital investment in 52 weeks with only 86% attendance rate, and will earn a profit of $251,884 per week thereafter. The Hilton, without its financing offer, requires 84% attendance in the worst case scenario to recoup Hansom’s capital investment. The best-case scenario requires only 79% attendance. However, with this option, critical reception may suffer due to “empty’ theatres, and the weekly profit at that minimum level being only $261 ,482 is not enough of a gain over the SST.
James option to Justify taking this risk to Hansom’s long-term goals. As well, the 90% necessary capacity at the Hilton is 1631 seats?? greater than the maximum capacity at SST. James, meaning reaching that level is unlikely. The Hilton, with its financing offer, presents an interesting dilemma. The cost reduction more than makes up for the reduction in profit, and the necessary audience levels to recoup capital investment within a year drop to 75% at the higher ticket price.