Not for profit – for revenues in Eastern Europe: The Birch House Zoo

Istvan Maklari (University of Pennsylvania, Pennsylvania, Philadelphia, USA)
Richard Szanto (Corvinus University of Budapest, Budapest, Hungary)

Emerald Emerging Markets Case Studies

ISSN: 2045-0621

Publication date: 1 January 2011

Abstract

Subject area

Marketing management, pricing strategies, zoo management, non-profit organizations.

Study level/applicability

Difficult. Recommended for courses: marketing, strategy, pricing, customer behaviour, management of non-profit organizations, emerging markets.

Case overview

The case study deals with the pricing dilemma of the Birch House Zoo located in an Eastern European country. The zoo has implemented capital-intensive developments in the recent years its main attraction the Tropic World included. The organization is managed and subsidized by the city where it is situated, yet the City Council lately expressed that they wanted the zoo to be self-financing by the end of 2011 by finding new source of revenue. In 2009, the operational expenses of the zoo exceeded EUR five million; however, the revenues were far bellow this level. The tariff structure did not change in the last 30 years as pricing always had to be adjusted to the local purchasing power; recent developments and new attractions are only partly priced in at the moment. In the light of the special environment in which Birch House Zoo operates, the director has to initiate key actions that could bring the zoo to the level of breakeven in its operations and make it financially independent.

Expected learning outcomes

Ability to create pricing and revenue generating strategies; understanding idiosyncrasies of the management of non-profit organizations regarding this matter; understanding price elasticity issues.

Supplementary materials

Teaching note.

Keywords

Citation

Maklari, I. and Szanto, R. (2011), "Not for profit – for revenues in Eastern Europe: The Birch House Zoo", Emerald Emerging Markets Case Studies, Vol. 1 No. 1. https://doi.org/10.1108/20450621111130067

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

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