The REAL The REAL IMAX TheatreIMAX Theatre

Presented By:Presented By:

RRyan Biggsyan Biggs

MikMikee Crisafulli Crisafulli

WWaayne Scharnhorstyne Scharnhorst

LLinsay Dutyinsay Duty

OutlineOutline

ObjectivesObjectives

SWOT AnalysisSWOT Analysis– Internal Internal

StrengthsStrengths

WeaknessesWeaknesses

– ExternalExternalOpportunitiesOpportunities

ThreatsThreats

Product Life CycleProduct Life Cycle

Quantified, Measurable, ProfitableQuantified, Measurable, Profitable

ObjectivesObjectives

Provide an IMAX entertainment Provide an IMAX entertainment experience for people in Billings and the experience for people in Billings and the surrounding areassurrounding areasCapture 20% of the movie theatre market Capture 20% of the movie theatre market (1 of 5) in Billings and Laurel(1 of 5) in Billings and LaurelTarget children and adults (ages 5-54 yrs)Target children and adults (ages 5-54 yrs)– No difference in movie attendance between No difference in movie attendance between

men and womenmen and women

Opportunity / Threat = ObjectiveOpportunity / Threat = Objective– 92,764 / 5 = 18,552 children and adults92,764 / 5 = 18,552 children and adults

Internal StrengthsInternal Strengths

Unique IMAX experience that few people Unique IMAX experience that few people have seenhave seen3D IMAX movies3D IMAX moviesSimultaneous IMAX and commercial Simultaneous IMAX and commercial movie releasesmovie releasesSuperior customer serviceSuperior customer serviceArcade Arcade Online ticket ordering with in-theatre pick Online ticket ordering with in-theatre pick up kioskup kiosk

Internal WeaknessesInternal Weaknesses

Increased prices due to high cost of running an Increased prices due to high cost of running an IMAX theatreIMAX theatre– According to a December 2006 Gallup Poll 36% of According to a December 2006 Gallup Poll 36% of

1,010 people polled stated cost as the thing they 1,010 people polled stated cost as the thing they dislike the most about going to the moviesdislike the most about going to the movies

Limited movie releases for IMAX Limited movie releases for IMAX Limited number of screens (3)Limited number of screens (3)Entering a mature market Entering a mature market CapacityCapacity– 200 seats per theater200 seats per theater

External OpportunitiesExternal Opportunities

New entertainment option for BillingsNew entertainment option for Billings– Total population of Billings 101,182 (2006 estimate)Total population of Billings 101,182 (2006 estimate)

Growing Billings populationGrowing Billings population– 115,800 residents by the year 2025 (28.9 % increase 115,800 residents by the year 2025 (28.9 % increase

above 2000 population)above 2000 population)

Competitive advantage by locating in expanding Competitive advantage by locating in expanding Billings HeightsBillings Heights– Current population of Heights 23,343 (2006 estimate)Current population of Heights 23,343 (2006 estimate)

External Opportunities Cont.External Opportunities Cont.

Community involvementCommunity involvement

DMR proprietary film conversion DMR proprietary film conversion technology technology

According to a Dec. 2006 Gallup Poll on According to a Dec. 2006 Gallup Poll on average, Americans have seen 5 movies average, Americans have seen 5 movies in the past year, an increase over 4 in the past year, an increase over 4 movies in 2005movies in 2005

External ThreatsExternal Threats

Competition from local theatresCompetition from local theatres– WynsongWynsong

– Carmike SevenCarmike Seven

– Cine SevenCine Seven– Amusement Park & Drive InAmusement Park & Drive In

Lack of other dining and entertainment Lack of other dining and entertainment establishments in Heights to draw customers inestablishments in Heights to draw customers in

Online movie piracyOnline movie piracy

Home theater systemsHome theater systems

Product Life CycleProduct Life Cycle

Product is in the mature market stageProduct is in the mature market stage– Oligopoly Oligopoly

Homogeneous productHomogeneous product

Relatively few sellersRelatively few sellers

Fairly inelastic demandFairly inelastic demand

REAL IMAX Theatre will focus on REAL IMAX Theatre will focus on differentiation through the use of IMAX differentiation through the use of IMAX technologytechnology

Quantified, Measurable, ProfitableQuantified, Measurable, Profitable

Competitor Competitor PricesPrices

Regular Regular IMAX IMAX

admissionadmission

AdultAdult $8.00$8.00 $12.00$12.00

ChildChild $6.00$6.00 $10.00$10.00

3 yrs and 3 yrs and underunder

Free for Free for

2 yrs and 2 yrs and underunder

FreeFree

The REAL The REAL IMAX TheatreIMAX Theatre

Presented By:Presented By:

RRyan Biggsyan Biggs

MikMikee Crisafulli Crisafulli

WWaayne Scharnhorstyne Scharnhorst

LLinsay Dutyinsay Duty

OutlineOutline

Target AudienceTarget Audience

– Segmentation StrategySegmentation Strategy

– DimensionsDimensions

– Decision Making ProcessDecision Making Process

Target AudienceTarget AudiencePopulation Distribution of Yellowstone

County for Ages up to 54 yrs old

20-24 Years

16-19 Years

25-34 Years

35-44 Years

45-54 Years 5-9 Years

10-15 Years

Under 5 Years

Segmentation StrategySegmentation Strategy

By GenreBy Genre

– Comedy, adventure, action moviesComedy, adventure, action movies

By AgeBy Age

– Teens and young adultsTeens and young adults

By Movie RatingBy Movie Rating

– PG-13 and PG moviesPG-13 and PG movies

Segmentation by GenreSegmentation by Genre

012345678

(number of movies in

genre)

ActionAdventure

Comedy

DramaMusical

Romantic Comedy

Thriller/Suspense

Top Grossing Films of 2006

Segmentation by Genre Cont.Segmentation by Genre Cont.

0100200300400500

$ (in millions)

Action: X-Men 3

Adventure: Pirates 2

Comedy: Cars

Drama: Pursuit of Happyness

Musical: Dreamgirls

Romantic Comedy: The Break-Up

Thriller/Suspense: The Da Vinci Code

Top Box Office Sales by Genre for 2006

Segmentation by AgeSegmentation by Age

Segmentation by RatingSegmentation by Rating

DimensionsDimensions

DemographicsDemographics– Males and females of various ages and income levelsMales and females of various ages and income levels

GeographicsGeographics– Billings Heights and surrounding areasBillings Heights and surrounding areas

BehavioralBehavioral– Movie attendees want the ultimate movie experience Movie attendees want the ultimate movie experience

that no other theatre offersthat no other theatre offers

PsychographicsPsychographics– In a person’s daily activities they are constantly In a person’s daily activities they are constantly

exposed to movie advertisements exposed to movie advertisements

Decision Making ProcessDecision Making Process

Identify the problemIdentify the problem– Potential customers do not know the Potential customers do not know the

difference between a regular movie and an difference between a regular movie and an IMAX movieIMAX movie

Gather InformationGather Information– Friends or familyFriends or family– InternetInternet– IMAX movie theatresIMAX movie theatres– Other movie theatresOther movie theatres

Decision Making Cont.Decision Making Cont.

Evaluate AlternativesEvaluate Alternatives– RentingRenting– PiracyPiracy– Regular movie theatresRegular movie theatres

Make DecisionMake Decision– Customers will pick IMAX over regular movie theatres Customers will pick IMAX over regular movie theatres

because of experience, comfortable seats, location, because of experience, comfortable seats, location, and good customer service.and good customer service.

Evaluate DecisionEvaluate Decision– Customers will realize they got a better experience by Customers will realize they got a better experience by

choosing IMAX movie theatre.choosing IMAX movie theatre.– Customers will return due to our unique promotions.Customers will return due to our unique promotions.

The REAL The REAL IMAX TheatreIMAX Theatre

Presented By:Presented By:

RRyan Biggsyan Biggs

MikMikee Crisafulli Crisafulli

WWaayne Scharnhorstyne Scharnhorst

LLinsay Dutyinsay Duty

OutlineOutline

StrategyStrategy– ProductProduct

Means End ChainMeans End ChainPerceptual MapPerceptual MapBrand PositioningBrand Positioning

– PricePriceObjectivesObjectivesStrategyStrategyCompetitor AnalysisCompetitor Analysis

– PlacePlaceObjectivesObjectivesStrategyStrategy

– PromotionPromotionObjectivesObjectivesStrategyStrategy

Product: Means End ChainProduct: Means End Chain

ProductProduct AttributesAttributes Physical Physical ConsequencesConsequences

Psychological Psychological ConsequencesConsequences

ValuesValues

Real IMAX Real IMAX TheatreTheatre

3 screens3 screens

(2 regular screens (2 regular screens and 1 3D)and 1 3D)

View either regular or View either regular or 3D movies on IMAX 3D movies on IMAX screensscreens

People can enjoy new People can enjoy new movies on IMAX movies on IMAX screensscreens

Not an Not an ordinary ordinary movie movie experienceexperience

Comfortable seatsComfortable seats Comfort during the Comfort during the moviemovie

People feel like they are People feel like they are in the comfort of their in the comfort of their own homeown home

Comfortable Comfortable entertainmententertainment

Location Location

(In Billings Heights)(In Billings Heights)Do not have to worry Do not have to worry about West End about West End traffictraffic

Big city movie Big city movie experience without the experience without the hassle and stresshassle and stress

New addition New addition to the Billings to the Billings HeightsHeights

Good Customer Good Customer ServiceService

No frustration with No frustration with poor customer poor customer serviceservice

Always feel welcomeAlways feel welcome Satisfying Satisfying ExperienceExperience

Product: Perceptual MapProduct: Perceptual Map

Wynsong

Drive-In

The RealIMAX

Cine SevenCarmike

Normal Comfort Level

High Comfort LevelN

ormal E

xperienceU

ltimate E

xperience

Product: Brand Positioning Product: Brand Positioning StatementStatement

““The REAL IMAX Theatre provides the The REAL IMAX Theatre provides the ultimate in high quality picture and state of ultimate in high quality picture and state of the art sound allowing viewers to see the art sound allowing viewers to see movies the way they were intended, and movies the way they were intended, and with the comfort the customer desires.”with the comfort the customer desires.”

PricePrice

ObjectiveObjective– Sales orientedSales oriented

Unit sales growthUnit sales growthMarket share growth Market share growth

StrategyStrategy– Price skimming / PenetrationPrice skimming / Penetration

Adult: $12Adult: $12Child: $10Child: $10

– Predicted RevenuePredicted RevenueTarget: 18,552 (people) x 3 (visits/yr) = 55,656 Target: 18,552 (people) x 3 (visits/yr) = 55,656 55,656 x $11 (average admission price) = $612,21655,656 x $11 (average admission price) = $612,21655,656 x $7 (avg. concession spending)= $389,59255,656 x $7 (avg. concession spending)= $389,592$612,216 + $389,592 = $1,001,808 $612,216 + $389,592 = $1,001,808

Price: Competitor AnalysisPrice: Competitor Analysis

AdultAdult ChildChild

Carmike 7Carmike 7 $8.00$8.00 $6.00$6.00

WynsongWynsong $8.00$8.00 $6.00$6.00

Drive – InDrive – In $6.00$6.00 $4.00$4.00

Cine SevenCine Seven $1.50 / $3.00$1.50 / $3.00 $1.50 / $3.00$1.50 / $3.00

PlacePlace

ObjectivesObjectives– To be conveniently located in the Billings Heights to To be conveniently located in the Billings Heights to

provide our customers with a direct product channelprovide our customers with a direct product channel

StrategyStrategy– Located in the Billings Heights for direct channel Located in the Billings Heights for direct channel

distributiondistribution– Kiosk for online ticket purchasingKiosk for online ticket purchasing

Very convenient for customers who travel far distancesVery convenient for customers who travel far distancesNo waiting in line No waiting in line

– Website to view show times and listings Website to view show times and listings Very user friendlyVery user friendly

Place ObjectivePlace Objective

Low Cost Provider

High Quality Experience

PromotionPromotion

ObjectivesObjectives– To inform our customers about the IMAX To inform our customers about the IMAX

experienceexperience– To persuade movie goers to make the switch To persuade movie goers to make the switch

to IMAXto IMAX

PromotionPromotion

AttentionAttention– Movie TrailersMovie Trailers– Word of MouthWord of Mouth– NewspaperNewspaper– BillboardsBillboards

InterestInterest– Yellow Pages Yellow Pages – Web SitesWeb Sites– Word of MouthWord of Mouth

PromotionPromotion

DesireDesire– Customer ServiceCustomer Service– Movie ExperienceMovie Experience– Superior ComfortSuperior Comfort

ActionAction– Hot SeatsHot Seats– Ticket KioskTicket Kiosk

Sources of ResearchSources of ResearchDrive-In Amusement ParkDrive-In Amusement ParkAmusement Business Amusement Business http://en.wikipedia.org/wiki/Billings,_Montanahttp://en.wikipedia.org/wiki/Billings,_Montanawww.carmike.comwww.carmike.comUS Census Bureau (US Census Bureau (www.census.govwww.census.gov))www.fairus.orgwww.fairus.orgwww.hometownusa.com/mt/Billings.htmlwww.hometownusa.com/mt/Billings.htmlwww.IMAX.comwww.IMAX.com www.mpaa.orgwww.mpaa.orghttp://www.the-numbers.com/market/2006/Comedy.phphttp://www.the-numbers.com/market/2006/Comedy.phpwww.yellowstoneimax.com/rates.htmwww.yellowstoneimax.com/rates.htm