Flanagan Theme Parks
23 Rongotai Road
25 November 2012
Dear Ms. James,
In response to your request, I am providing you with this report concerning the improvement of the profitability at the company`s theme parks.
As known, your theme park company recently had struggles. The waiting lines are shorter than those at competing parks. To improve Flanagan`s theme park customer experience, you should consider improving the traffic flow in and out of the parks as well as the services provided by your employees As the consultant of Flanagan theme parks, you have to respond to these problems. As the head of DeniaEs consultants, I have dealt with many cases involving improvement of the profitability, and I will provide you with a well-balanced recommendation like we have done in previous DeniaEs cases. Next, I will analyse if accepting this promotion with DailyDilly is a wise business move.
Firstly, I would like to emphasize that Daily Dilly `s bulk discounts will attract a lot of new people who are looking for an inexpensive deal, a chance to save money and are predisposed to a quirky experience. However most of the participants using those services are going to be low-end customers whose main priorities are for bargaining for low prices (To Muse). This will bring to Flanagans theme park no quality customers that eventually are willing to pay more for good products, services or attractions because they will spend as little as necessary at your establishment in order to redeem their deal.
Secondly, the profitability of the company would not be improved by the suggested promotion from DailyDilly. The deals appear to be a loss. Let’s assume that you give 50 % cut in your price and after splitting up the prices with DailyDilly at 50% rate, the chances for you to have a margin are less because you could expect to have 25% of your normal value (Cybergate). In...