Question

Assume you manage a cinema complex containing 6 separate movie theatres;

1. Explain the pattern of demand fluctuation that is likely to occur at your cinema complex and the management challenges it would present

2. Would the pattern of demand best be described as random or predictable? Why? (1 mark)

3. Explain and give examples of 2 demand-oriented strategies to smooth the peaks and troughs in demand at the cinema

4. Explain and give examples of 2 supply-oriented strategies to smooth the peaks and troughs in demand at the cinema

Answer 1

1. As having managing movie complex with six differnet movie theaters the demand fluction we can read that as there are 6 different theaters and there is are 2 movies which got released at same time lets say movie A and movie B so what we can do is we can give equal theaters i.e 3 -3 to each movie to be telecast so we can see that which movie there are more audience more sale more demand and for which vice versa so we can change the screen and manage the theaters accordingly lets say for A the more demand is there than B we can use 4 theaters for A movie and 2 for B one in this way we can manage in two or more than two movies and when there single movie than we can 1st run the shows in 2 theaters in complex if that turns out to be housefull we can increase the no. Theaters accordingly and vice versa.

2. The pattern of demand fluctuations would be Predictable. That is because we can predict if the movie will be hit or be flop if it will recive positive response or negative responses that is by the response of the tailor or by stardom of the actor/actoress or by in what direction is the air does it creat positive or negative vibe among peoples of the locality. But trailors and stardom have greater impact on predictions.

3. For most the demand oriented pricing strategies is very effective i.e pricing accordingly the demand. And also utilizing the price insensitivity of regular movie goer with higher ticket price. Also attractive prices to those show which doesnot have more attendence.

4. Adopt the demand driven and business operating and planning for deman shaping and sell of tickets.

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