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How to Increase Earned Revenue
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How to Increase Earned Revenue

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Three month long market research project to determine how a small theatre could increase earned revenue. Also, complicated math.

Three month long market research project to determine how a small theatre could increase earned revenue. Also, complicated math.

Published in Business , Technology
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  • Lisa
  • Lisa
  • Lisa
  • Devon
  • Devon
  • DevonAttendees mostly associate the Cabaret with its intimate/casual atmosphere and its variety of showsNon-attendees differ most in terms of not thinking of the Cabaret as having an intimate atmosphere or short showsNeither group strongly thought of the Cabaret as a place to get dinner
  • Devon- Consolidate with “Sources of Information” slide but make sure to call it Sources of Information to match “Observations” slide. Highlight the 0% of very unlikely in the pie chart. Put in Net Promoter Effect under pie chart. What is the scale on the right?
  • PaulSatisfaction is high, with 85% saying they are “satisfied” or “very satisfied” with the Cabaret overallSatisfaction with the shows closely mimics overall satisfaction, but food and drink satisfaction lags behind
  • Paul
  • Paul
  • Paul
  • LisaAttendees: Single ticket: 50.9% just right, 24.6% good deal (75.5%)10-ticket package: 32.4% just right, 61.4% good deal (93.8%)
  • AdamFood: Affiliates 6.67x more likely to spend more than $10 on food 18.33x more likely to spend anything Non-affiliates 10x more likely to spend more than $10 on food 43x more likely to spend anything Satisfaction with time of show, predicts high food spend Weekly attendees are 1/3 as likely to buy any food as <monthly guests, Drink: YSD 88x/ grad 6.45x/ affiliate 19x/ unaffiliated 14x/, unaffiliated still most likely to spend >$10 10-ticket package buyers are 2.2x more likely to buy drinks
  • Adam
  • LisaAttendees:Entrée: 32.2% ok, 7.5% good deal (39.7%)Small plate: 37.6% ok, 7.9% good deal (45.5%)
  • Athan- updated “Price” section to have this be the final slide with hard recommendations- ADD AND ADJUST “VOLUME” AND “FREQUENCY” AREAS TO PROVIDE FINAL RECOMMENDATIONSPriceIndividual Tickets: Price up according to WTP10-Tickets: Adjust price or decrease flexibility of redemptionEntres: Cut and offer only small dishes/dessertsConsider renaming “10-ticket package”
  • Athan- updated “Price” section to have this be the final slide with hard recommendations- ADD AND ADJUST “VOLUME” AND “FREQUENCY” AREAS TO PROVIDE FINAL RECOMMENDATIONSPriceIndividual Tickets: Price up according to WTP10-Tickets: Adjust price or decrease flexibility of redemptionEntres: Cut and offer only small dishes/desserts
  • Athan- updated “Price” section to have this be the final slide with hard recommendations- ADD AND ADJUST “VOLUME” AND “FREQUENCY” AREAS TO PROVIDE FINAL RECOMMENDATIONSPriceIndividual Tickets: Price up according to WTP10-Tickets: Adjust price or decrease flexibility of redemptionEntres: Cut and offer only small dishes/desserts
  • Adam
  • Devon
  • Devon

Transcript

  • 1. Yale Cabaret
    Survey Analysis by:
    Paul Jessen, Lisa Law, AthanSlotkin, Devon Smith, Adam Stone
  • 2. Agenda
  • 3. Client Description
    • Mission: to provide a laboratory for Yale School of Drama students’ daring and illuminating experimentation.
    • 4. New 1-hour show every week
    • 5. 8PM and 11PM Thursday – Saturday
    • 6. Food and drinks available for purchase
  • Business and Research Problems
    Marketing Research Problem
    Management Decision Problem
    How can the Yale Cabaret increase earned revenue?
    What types of communications, product offerings, and product pricing will increase revenue?
    Increased revenue could result from:
    Price
    Volume
    Frequency
    Cabaret Attendance/Tickets:
    What are customers&apos; motivations for attending or not attending the Cabaret?
    What are customers&apos; consumption patterns for the Cabaret?
    What are customers&apos; perceptions, attitudes, and awareness of the Cabaret?
    What types of marketing efforts by the Cabaret are most effective with customers?
    How does the Cabaret fit into customers&apos; weekend entertainment decision-making process?
    How do potential customers decide what to do in the evening?
    Food/Drinks: 
    What are customers&apos; consumption patterns for food/drinks at the Cabaret?
    What are customers&apos; perceptions, attitudes, and awareness of the food and drinks at the Cabaret?
    What are customers&apos; motivations for ordering or not ordering food and drinks at the Cabaret?
  • 7. Methodology
  • 8. Answering the Market Research Problems
  • 9. Overall Brand Perception
  • 10. Sources of Information
    Importance of Communication Channels for Cabaret Information
    (by % Very Important or Important)
    • Net Promoters = 59% (Very Likely – Somewhat Unlikely – Unlikely – Very Unlikely
  • Satisfaction
  • 11. Factors Driving Satisfaction
    A linear regression model shows that 63.4% of variance in overall satisfaction can be explained by the following factors:
    Show satisfaction (p-value=0.000)
    Atmosphere satisfaction (p-value=0.000)
    Food and drink satisfaction (p-value=0.000)
    Size of tables satisfaction (p-value=0.003)
    All factors have a positive correlation with satisfaction rating.
    Overall satisfaction =
    0.098 + 0.514(show satisfaction) + 0.243(atmosphere) + 0.152(food/drink satisfaction) + 0.111(size of tables)
  • 12. Barriers to Attendance
    Reason Non-Attendees Did not Attend Cabaret
    (by % of Respondents)
    • Nearly 50% of respondents claimed lack of knowledge prevented them from attending
    • 13. Cost does not appear to be a barrier
    • 14. Only 4% of respondents said they did not attend because they do not like the theater
  • Factors Driving Frequency
    A linear regression model shows that 64.7% of variance in the number of performances attended can be explained by the following factors:
    Whether someone is a YSD student (p-value=0.000)
    Whether someone bought a 10-ticket package (p-value=0.000)
    Whether someone is a non-student Yale affiliate (p-value=0.021)
    Overall satisfaction rating (p-value=0.000)
    Size of tables satisfaction (p-value=0.012)
    All factors have a positive correlation with frequency.
    Ln(performances attended last season)=
    -0.768 + 1.90(YSD student) + 1.03(bought 10-ticket) + 0.241(Yale affiliate) + 0.181(overall satisfaction) + 0.098(size of tables)
  • 15. Size of Table Satisfaction
    44.6% of the variance in table size satisfaction can be explained by the following factors:
    “Seating arrangements” satisfaction (p-value=0.000)
    Importance of “how crowded” restaurants are (p-value=0.013)
    Not eating at Cabaret due to poor service (p-value=0.058)
    Not wanting to eat with strange people at Cabaret (p-value=0.032)
    Seating has a positive correlation with table size satisfaction; all others have a negative correlation.
    Size of table satisfaction = 2.98 + 0.562(seating satisfaction) - 0.118(how crowded) - 0.0949(poor service) - 0.080(don’t like eating with strange people)
  • 16. Willingness to Pay-Tickets
    • Single Tickets - $15, $10 for Students
    • 17. Non-Attendees WTP suggests that 50% of respondents are willing to pay approximately $15 or higher.
    • 18. 10 Ticket Package - $65, $45 for Students
    • 19. Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $75 or higher.
  • Drivers of Food/Drink Spend
    Logistic Analysis predicts drivers of food and drink consumption:
    Food:
    • Non-student Yale affiliation (18x undergrads)
    • 20. Non-Yale affiliates (43x undergrads)
    • 21. Satisfaction with show times
    • 22. Less frequent performing arts attendance
    Drink:
    • YSD affiliation (88x), non-YSD graduate students (6x), non-student Yale affiliates (19x), non-Yale affiliates (14x)
    • 23. 10-ticket buyers
  • Barriers to Food/Drink Purchases
    Reason Attendees Did Not Eat at the Cabaret
    (by % Strongly Agree or Agree)
    • Cost is primary barrier
    • 24. Customers don’t think of the Cabaret as a restaurant.
    • 25. Customers are concerned about the food + show aspect of Cabaret.
  • Willingness to Pay – Food
    • Entree – Approximately $17
    • 26. Non-Attendees WTP suggests that 50% of respondents are willing to pay approximately $15 or higher.
    • 27. Small Plates and Appetizers – Approximately $6 – $8
    • 28. Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $9 or higher.
  • Recommendations-Price
  • 29. Recommendations-Volume
  • 30. Recommendations-Frequency
  • 31. Questions?
  • 32. Appendix
  • 33. Feature Satisfaction
    Satisfaction with Cabaret Attributes
    (by % Strongly Agree or Agree)
    • Consumers tend to be most dissatisfied with anything relating to the kitchen and bar, perhaps due to a perception of the Cabaret not being a dining experience
    • 34. Those who do go to the Cabaret tend to be highly satisfied with the show; hence the need to get customers in the door
    • 35. Show satisfaction and ticket price inelasticity seems to present an opportunity to move away from 10-ticket packages and price up
  • Segmenting the Market
    • Cluster analysis of consumer behavior/attitude data in any form failed to produce distinct, meaningful, stable customer segments
    • 36. Distinct: On standardized or non-standardized scales, cluster centroids were too close together to suggest real differences in behavior and attitude
    • 37. Meaningful: Cluster centroids often contained confusing or contradictory combinations of factors/variables, producing no actionable results
    • 38. Stable: 20-25% of individuals were reclassified based on changes in linkage method, distance measure, and K-means reclustering
  • Free Response Suggestions
    • Only do 1 show per night
    • 39. Have breaks during the show to get food/drinks
    • 40. Do something pre-show
    • 41. Student discount on food
    • 42. Keep table reservations
    • 43. More types of beer
    • 44. Waitlisted people get to order/eat
    • 45. Post-doc or staff night early in season
    • 46. More food options at late night
    • 47. Run shows for 2 weeks
    • 48. Budget night w/ fixed price (all included)
    • 49. More vegetarian options
    • 50. Online ticket purchases for YSD
    • 51. Use YDC and GPSS to get word out
  • Eating Out
    Attribute Importance for Eating Out
    (by % Very Important or Important)
    • Consumers need to perceive that they are getting value for their meal both in food quality, ambience, and reservation time
  • The Combo Package
    • Consumers seem to be interested in purchasing a fixed price package of tickets, food, and drinks for a reasonable price. This could be an opportunity to increase margins, and better predict food purchases for the evening, thereby alleviating some operational issues.
  • Willingness to Pay – Dessert and Beer
    • Dessert – Approximately $3 – $5
    • 52. Non-Attendees WTP suggests that 50% of respondents are willing to pay approximately $7 or higher.
    • 53. Beer – Approximately $4 – $6
    • 54. Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $5 or higher.
  • Willingness to Pay - Wine
    • Glass of Wine – $4
    • 55. Non-Attendees WTP suggests that 50% of respondents are willing to pay approximately $6 or higher.
    • 56. Bottle of Wine
    • 57. Non-Attendees WTP indicates that 50% of respondents are willing to pay approximately $20 or higher.
  • Population Validity
  • 58. Population Validity