In 2011, Center Theatre Group landed the West Coast premiere of the recent Broadway hit God of Carnage. There were great expectations for the show before it started, and the demand for premium seats in the orchestra was high. However, there were areas in the midrange seats in the theater that were not selling.
Ticket Sales Director Shawn Robertson needed to create a pricing plan to solve this inventory issue and maximize sales that was consistent with the overall strategy of the organization.
This case gives the reader the opportunity to discuss the complex issue of setting prices in an unfavorable external environment. It provides detailed information on such variables that influence an organization’s pricing strategy: supply (capacity), demand, and competition. It also examines the use of revenue management tactics – dynamic pricing, discount, and inventory management – as well as the impacts of such tactics. This case is well suited to an advanced marketing course.
Publication Date: 2014-04-24
Suggested Citation: Louisa Balch, "Center Theatre Group (2011)," Yale Theater Management Knowledge Base #13-59, April 24, 2014
Keywords: Theater, Performing Arts, Marketing, Revenue, Pricing, Audience, California, Los Angeles
Teaching Notes: Yes
About the Theater Management Knowledge Base
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