ADVERTISING AND PROMOTION
To promote the Alamo, Tim and Carrie use several low-cost methods. They take advertisements out in the three most read Austin papers including the Daily Texan, the University of Texas student newspaper. They also create three-month calendars that list special events. Upcoming showings are announced before every feature. They have formed a close relationship with the Austin Chronicle, an entertainment publication, and consequently get a lot of free public relations exposure in the form of articles previewing their special events.
Tim also engages in some inexpensive but effective loyalty building. He manages the Alamo’s website and answers every piece of e-mail personally. He also announces upcoming films and special events before every show and hangs around after shows to answer questions and talk to his customers. He is very open to suggestions and has used them to plan special events and to modify the menu. He notes that loyalty building has been a lot more effective with the Austin Film Society and cult film crowds.
Questions
1.Marketing analysts use market position maps to display visually the customers’ perceptions of a firm in relation to its competitors regarding two attributes. Prepare a market position map for Alamo Drafthouse using “food quality” and “movie selection” as axes.
2.Use the “Strategic Service Vision” framework to describe Alamo Drafthouse in terms of target market segments, service concept, operating strategy, and service delivery system.
3.Identify the service qualifiers, winners, and service losers for Alamo Drafthouse. Are the Alamo purchase decision criteria appropriate for the multiplex movie theater market? What do you conclude?
4.Use Porter’s Five Forces Model to assess the strategic position of Alamo Drafthouse in the “entertainment industry.”
5.Conduct a SWOT analysis to identify internal strengths and weaknesses as well as threats and opportunities in the external environment.
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