Alltell Pavillion

Overview
Alltel Pavilion is an outdoor amphitheater that averages about 40 shows between April and October each year. Alltel Pavilion is run by SFX Entertainment, Inc., the largest promoter, producer, and venue operator for live entertainment events in the United States. Cellar Door, also owned by SFX, does all the booking for the pavilion.

Marketing is the most important part of Alltel Pavilion’s business. They depend on it to promote their shows, sell tickets and attract new acts. Another important aspect of the business is determining which pay structure is better for running shows, paying artists on a fixed cost basis or paying them on a per capita basis. As Alltel Pavilion budgets, it has to keep in mind cost-reducing strategies because the cost of performing artists grows annually.

SWOT Analysis

Strengths
• The amphitheater is a part of SFX Entertainment, Inc. which opens many doors for advertising, etc.
• They are very good at marketing to the geographic areas and also to the correct audiences of their performers.
• The Pavilion has many means for generating revenue, including ticket sales, concession sales, merchandising sales, parking sales, and sponsorship sales.
Weaknesses
• The Pavilion has a huge geographic area to market to, causing more money to have to be spent on advertising.
• They have a fixed marketing budget per performance of $20,000. This limits what they can do and they almost always go over it.
• The venue is only open part of the year since it is an outdoor amphitheater.
Opportunities
• Alltel Pavilion is the only major entertainment complex in Raleigh.
• They could use the facility for something else during the months they are not using the facility for performances, for example, build a skate park, etc.
• They have virtually no competition, so they can charge premium prices for tickets.
Threats
• The cost of performing artists goes up annually.
• The cost of advertising goes up annually as well, while...