Essay on Merlin

1879 Words8 Pages
Assignment: Question one, essay on Merlin

Word count: 1,406

The purpose of this essay is to investigate future pricing policy for Merlin for the tower. A brief review of Merlin’s management of the Blackpool Tower will be highlighted, and then using economic tools of analysis, it will clarify the concept of pricing discrimination and how companies use prices to attract certain kinds of customer. Followed by, the use of price and attendance data from other attractions, such as Camelot and Alton Towers to support the argument. Finally the essay will come to a conclusion.
`Merlin Entertainment in 2010 took over the management of Blackpool Tower, one of the U.K.’s more iconic tourist attractions. The Tower was built in 1894, and
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This should also bring supplementary visitor spending of £36 million and create up to new 1,000 jobs (The Times of London, 2010). Placing these figures in a demand curve will show a dramatic change (See Figure 3, Appendix 1)
It is recommended a bit of both first and third pricing discrimination for Merlin. It is recommended that prices be raised, overall, as the service offering is improved. Recommending discounts for family groups, senior citizens, the disabled, and college students. Under prior management, entrance to the tower was priced at £17 for adults, £14 for seniors and children payable at the door, with a £3 discount for those booking online. For this, customers gained access to all facilities, as well as admission to the circus show. Merlin has the monopoly of the market therefore having market share in the entertainment sector put Merlin in advantage.
By recommending, as averred above, a very aggressive price discrimination strategy for Merlin’s as part of its pricing strategy for this project, and as a means to differentiate the theme park’s offerings from those of rivals, Camelot and Alton Towers. But this will be accompanied by other marketing changes. Rival Camelot currently charges £24 for adults’ entry to its theme park, the same price for children over a meter tall, and £15 for senior citizens. Alton Towers charges £31.68 for an adult ticket, £24.48 for a child, and does not offer a senior
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