Presentation on theme: "Premier Cinema Kelly Hecht, Emmett Corboy, Maria Tagle."— Presentation transcript:
1 Premier CinemaKelly Hecht, Emmett Corboy, Maria Tagle
2 Table of Contents Industry Background 4 Company Snapshot 5 Brand ReviewCompetitive ReviewBuyer AnalysisSWOT AnalysisMarketing GoalsTarget MarketPromotional ProgramSituation AnalysisReview of Past/Existing ProgramsBefore & AfterIMC Objectives & StrategiesPositioning & CampaignThemeCreative RecommendationsObjectives for AdvertisingSales Promotions RecommendationsDirect Marketing RecommendationsInternet/Interactive RecommendationsPR RecommendationsPersonal SellingRecommendationsCampaign FlowchartMeasurement &EvaluationBudget SummaryConclusion
3 Executive Summary Target Audience: Families & young adults Time period:Launch campaign in January 2010Opening date goal: July 2010Objectives: Excite the public for a new theater experienceTheme/Slogan: “Experience the spotlight.Treating moviegoers like the stars (Red carpet treatment)Overall Budget Total: -- millionMedia Used: TV Ads, print ads, billboards, radio spots, direct mailings
4 Industry Background (MPAA) Size (2007)#of Teens/College-age moviegoers : 48 million# of year-old moviegoers: 47 millionGrowth: Negative (July ’06-July ‘07)12-24 year old movie-goers decreased 3%25-39 year old movie goers decreased 7%Current Trends:overall decrease in attendanceincrease in ticket pricesslow growth in core demographic groupMarket share dominated by 4 main exhibitorsOperate 19% of theaters, but control 42% of screensMacro-environment Factors/Issues:Economic: recession causing decreased disposable income and increased costs & pricesLegal: increase in Black market activities to provide bootleg DVDsTechnological: development of home theater systems, HD content, shorter time period between theatrical & DVD releaseLegal: FCC requirement for broadcasters to convert to digital consumer movement to use grade televisions
5 Company Snapshot Brief Description Place in the Industry: At Premier Cinemas, our goal is give the moviegoer the red carpet treatment as if they are the stars of the film.We will offer first-run movies, have a restaurant in every multiplex, and have a gift shop that sells movie memorabilia.To cap off the experience of being a star, there will be a red carpet leading to the entrancePlace in the Industry:Premier Cinema is going to be a nation-wide chain of multiplexes holding 14 theaters in each facility.We will have to start out in limited, prime locations, but plan to grow to suburbs and other locations.
6 Brand Review Description Market share, sales, growth Strengths Movies tend to wither during economically trying times.However, in this economy Premier Cinema will offer the top movie-going experience that will be worthwhileMarket share, sales, growthFor the last three years, the movie industry has brought in over $9 billion each year. That number has risen in each of the previous three years.StrengthsThe public is always willing to go see a movie. It offers a release from the everyday stresses of life.Weaknessescompeting movie theaters may be able to offer tickets at a lower price than Premier Cinema.
7 Brand Review Continued… Key Benefitsstable industry that has been in business since the early 1900sBrand ImagePremier Cinema will offer a new way for the public to go see and experience movies by treating the customer like the star.Positioningwe are offering the customer a unique movie going experience that has never been offered beforePerceptual MapPremier Cinema will offer a high quality experience at a reasonable price for the middle-class American.
8 Competitive ReviewKey Direct Competitors: other major theaters & brandsRegal (Regal, United Artists, Edwards)Cinemark (Cinemark, Century)Carmike (Carmike)Indirect Competitors:black market (bootleg movies)substitutes for entertainment (plays, concerts)Home viewing optionsInternet sourcesCable & TV2006200706-07SalesShare %Change %Regal1,72718.21,832196.1AMC1,44215.21,59816.510.8Cinemark8478.99069.46.9Carmike3243.43271All other5,14754.24,99351.7-3Total948710096561.8Sales $ millionStatistics provided by MintelOverall AssessmentRegal holds leadership in sales & screen countAMC leads sales growth (acquisition of Loews)Outside top 4, market is fragmented & market share is diminishing
9 Buyer Analysis User Profile Demographics: most frequent movie goers are ages 12-24Psychographics: attendance due to the desire for entertainment, appreciation of film, and/or a place to “escape”Behaviorist Factors: frequent movie goers attend a movie at least once a monthWho buys? All demographics ages 12 and upWho influences purchase decision?Advertisers, peers, family membersDecision CriteriaPriceMovie times & locationsAvailable movies showing (quality: are there movies worth seeing?)
10 SWOT Analysis Strengths Weaknesses Opportunities We offer a movie going experience that nobody else doesCustomer Full TreatmentWeaknessesTo compensate for our excellent service, the movie tickets will have to cost more than regular theatersOpportunitiesTap into a market that traditionally looks more toward plays by offering more of what they are used to getting.ThreatsCompeting movie theaters might begin to offer the same kind of serviceCompeting theaters may be able to offer the same movie ticket for less money to somebody who is only interested in viewing the movie.
11 Marketing GoalsOverall objective: To excite the public by providing a new, exciting, & enjoyable movie theater experienceIncrease overall attendance in order to:increase sales volume, market share, sales revenue, and ultimately PROFIT in order to compete with competitorsGoals:Sales Volume (in millions):Based on AMC sales (mother company) and Regal sales (leading exhibitor)Market Share: 20%Increase AMC’s market share from 16.5% to surpass Regal
12 Marketing Goals continued… GENERATE SALES REVENUE:PROFITAnnual Revenue: 7.5 millionBox Office Receipts: $5.2 milConcessions: $2.25 milAdvertising: $375,000After including many costs (labor, facility), Premier Cinemas hopes to generate approximately 2.8 million gross profit annually- Gross profit based on Regal Cinema’s annual revenue and gross profit margins profit accounts for 28% of total revenue annually
13 Target Market Primary Target Market: Secondary Target Market: Families and Young adults (ages 12-34)With making the customer the movie star, everyday ordinary families and young people would best fit this visionSecondary Target Market:ElderlyAdditional customers that exist outside of our primary target market who may or may not choose the movies as a preferred choice of recreation
14 Promotional Program Situation Analysis Current Situation: Tired brand, bought out by AMC TheatresCompany’s History: Family-controlled drive-in theater chain in the early 1950sProducts and Services: Movie Theatre- first drive-in, then indoor theatres, then acquired hip, new graphics
15 Promo Program cont… Past Market Research: Competitive status: Suggested people ate either before or after a movie and this led to partnering with restaurant brandsCompetitive status:General Cinema was competing with the major theatre chains including AMC, Carmike, Cinemark and Regal, and all the other chains out thereStrengths:more personalized experienceWeaknesses:lots of competitionhave less screensless outlets
16 Review of Existing/Past Programs Originally drive-in theatre and as society started modernizing cinemas, built indoor theatresPast Promotion Mix:Created a joint venture with Cinema Grill.Goal was to provide excellent food service while showing a movie for $15Sales for gift cards that year was $40,000Strengthshave a very unique, personalized experience most movie goers wouldn’t get elsewhereWeaknessesmajor competition with many more screens and outlets make it hard forOverall Assessment: Recently bought out by AMC in 2002, General Cinema (now Premier Cinema) became a dead brand that needs a new brand management team to revive it.
17 Before & AfterPremier CinemasGENERAL CINEMAS…………
18 IMC Objectives & Strategies Awareness Objectives:Increase exposure and awareness of Premier Cinemas by 50% by its opening in July 2010Preference Objectives:Increase attendance by 65% in a 3 month period after openingCampaign Strategies:Increase exposure and awareness by using a large variety of marketing literature, such as direct mailers and radio spotsAdvertise in special interest magazines, on radio, TVHave an interactive website and in-store displays in related retailers. (i.e.: Best Buy)Sponsor events (i.e.: Oscars)
19 Positioning & Campaign Theme *Positioning Statement: Premier Cinemas provides a unique “night on the red carpet” experience, offering high quality visual & sound systems, comfortable luxury seating, restaurant and bar, and exceptional VIP customer service.* Positioning Strategy: Premier Cinemas will be more than just a movie theater, it will be an total “night out” experienceTheater Attributes: comfortable luxury seating, restaurant and bar, delicious concessions, retail storePrice/Quality: Affordable prices for high quality products & serviceCompetitors: While others offer a standard movie-going experience (i.e.- Regal), Premier Cinemas treats every customer like a star*Campaign Theme: A Night on the Red Carpet“Premier Cinemas…Where you’re the star!”
20 Creative Recommendations Advertising Objectives:To increase awareness of the differentiated experience of customer as movie starTo persuade target that Premier Cinemas are worth coming to and that the experience will prove worth the money to have a fun night outAdvertising/Message Strategy:Attempt to illustrate and convince target that the Premier Cinema experience is unlike any other theater experienceTo promote the idea that our experience is worth the money and has greater value than any other normal theatreParticipating in our experience will make you realize how fun a family outing can be and other activities will have a hard time looking as attractive and exciting
21 Advertising: Overall Marketing Objectives Primary Target Audience: Families and Young adultsSecondary Target Audience: Elderly, other movie goersObjectives:To establish clear brand identity to target marketTo increase advertising in rural and urban areasStrategy:Use celebrity/movie star sponsors to promote brandUse TV and radio ads to reach young people and familiesIncrease print advertising in selected markets (i.e. internet)Advertising: Overall Marketing Objectives
22 Media Plan for Premier Cinemas Jan ‘10Feb ‘10Mar ‘10Apr ‘10May ‘10Jun ‘10Jul ‘10TV CampaignNBC & ABCMagazine & PrintEntertainment MagazineRadio SpotsOnline/WebsiteMedia Plan for Premier Cinemas
23 Sales Promotions Recommendations Target Audience: young adults and familiesObjectives: increase market share by 80% and increase sales 60%Budget-Rationale- add value to and give consumers incentives to choose Premier Cinemas over another theaterRecommendations:CouponsDirect mailingsLoyal Reward ProgramMembership card and gather points to earn benefits
24 Direct Marketing Recommendations “Invitation” MailingsPrior to its opening, Premier Cinemas will directly mail “invitations” in the form of Oscar-like Envelopes“Bring this invitation and a guest to receive a free admission pass to the movie of your choice!”Tracking the number of used coupons allows us to measure its successTarget Audience: Households (families, students apartments)Objectives: To initially establish and communicate the red carpet image of Premier CinemasRationale: Attractive mailings more likely to be opened and usedBudget:
25 Internet Recommendations Target AudienceYoung adults through Facebook & similar mediumsFamilies through yahoo mail ads & similar mediumsObjectivesReach target through relative and widely used outletsBudget
26 Public Relations Recommendations Target Audience: Media and movie-goersObjectives:Get publicity from newspapers, radio, and TV news that will build the brand awareness and generates consumer attention and awarenessHost or sponsor an event during the Oscars, such as an after party that will create interest in Premier CinemasHold a press conference to announce the grand opening of Premier Cinemas answering all questions about the five star treatment customer will receiveBudget:
27 Personal Selling Recommendations Target Audience:Young adults and ParentsObjectives:Establish a partnership with electronic retail and video rental stores that allows us to set up in-store displaysSet up mall kiosks that allow us to directly answer any questions customers may have as well as directly distribute literature to the customerGain customer interest through direct, face-to-face communication with them.Budget:
28 Campaign Flowchart *Opening of Premier Cinemas Place advertising Billboards in major cities, print ads in entertainment magazinesEvent marketing: The OscarsHost/sponsor Oscar events (interviews, party)New Media MarketingBegin TV ads and Internet campaignDirect Mailings & Personal Selling (will overlap with launch)Send invitations, set up mall kiosks*Opening of Premier CinemasJuly 2010June 2010March 2010Feb. 2010Jan. 2010
29 Measurement and Evaluation give out coupons at our in-store displays, with our direct mailing pieces, and with print adskeep track of what percentage are cashed inCount # of hits using website counterEvaluationcompare use of coupons to total number of customers.Looking at this will let us know who came because they saw our ad
30 Budget Summary Media & Production Sales Promotion Direct Marketing Public RelationsSponsorshipEndorsementsMeasurement & EvaluationTotal$50,000 (screens & projectors)$10,000$5,000$25,000$25,000 (celebrity PR)$130,000
31 Conclusion Ultimate Goal: Strategies to reach ultimate goal: Provide a unique, valuable movie going experienceStrategies to reach ultimate goal:Customer Value & Satisfaction: communicate a clear distinguished brand that embodies a “VIP, red carpet” theme towards our target market.Create solutions that address the current trends of decreased attendance to the movies through satisfying needs and wants of targetPrior to the opening of Premier Cinemas, we will implement a range of marketing communication strategies in order to establish a unique image for the PC Brand.Through creating solutions that address the current trends of decreased attendance to the movies, we hope to meet the ultimate need of our clients: providing value for a unique movie going experience