The REAL IMAX Theatre

Presented By: R yan Biggs Mik e Crisafulli W a yne Scharnhorst L insay Duty

Outline

Objectives SWOT Analysis – Internal Strengths Weaknesses – External Opportunities Threats Product Life Cycle Quantified, Measurable, Profitable

Objectives

Provide an IMAX entertainment experience for people in Billings and the surrounding areas Capture 20% of the movie theatre market (1 of 5) in Billings and Laurel Target children and adults (ages 5-54 yrs) – No difference in movie attendance between men and women Opportunity / Threat = Objective – 92,764 / 5 = 18,552 children and adults

Internal Strengths

Unique IMAX experience that few people have seen 3D IMAX movies Simultaneous IMAX and commercial movie releases Superior customer service Arcade Online ticket ordering with in-theatre pick up kiosk

Internal Weaknesses

Increased prices due to high cost of running an IMAX theatre – According to a December 2006 Gallup Poll 36% of 1,010 people polled stated cost as the thing they dislike the most about going to the movies Limited movie releases for IMAX Limited number of screens (3) Entering a mature market Capacity – 200 seats per theater

External Opportunities

New entertainment option for Billings – Total population of Billings 101,182 (2006 estimate) Growing Billings population – 115,800 residents by the year 2025 (28.9 % increase above 2000 population) Competitive advantage by locating in expanding Billings Heights – Current population of Heights 23,343 (2006 estimate)

External Opportunities Cont.

Community involvement DMR proprietary film conversion technology According to a Dec. 2006 Gallup Poll on average, Americans have seen 5 movies in the past year, an increase over 4 movies in 2005

External Threats

Competition from local theatres – Wynsong – Carmike Seven – Cine Seven – Amusement Park & Drive In Lack of other dining and entertainment establishments in Heights to draw customers in Online movie piracy Home theater systems

Product Life Cycle

Product is in the mature market stage – Oligopoly Homogeneous product Relatively few sellers Fairly inelastic demand REAL IMAX Theatre will focus on differentiation through the use of IMAX technology

Quantified, Measurable, Profitable

Adult Competitor Prices Regular IMAX admission $8.00

$12.00

Child $6.00

3 yrs and under Free for 2 yrs and under $10.00

Free

The REAL IMAX Theatre

Presented By: R yan Biggs Mik e Crisafulli W a yne Scharnhorst L insay Duty

Outline Target Audience

– Segmentation Strategy – Dimensions – Decision Making Process

Target Audience

Population Distribution of Yellowstone County for Ages up to 54 yrs old 45-54 Years 35-44 Years Under 5 Years 5-9 Years 10-15 Years 25-34 Years 20-24 Years 16-19 Years

Segmentation Strategy

By Genre – Comedy, adventure, action movies By Age – Teens and young adults By Movie Rating – PG-13 and PG movies

Segmentation by Genre

Top Grossing Films of 2006 (number of movies in genre) 3 2 1 0 8 7 6 5 4 Acti on Ad ven tu Co re me dy Dra ma Mu sic al Ro ma Thr ntic ille Co r/Su me dy spe nse

Segmentation by Genre Cont.

Top Box Office Sales by Genre for 2006 500 400 $ (in millions) 300 200 100 0 Act ion : X Ad -M ven en 3 Co m : P edy irat Dra : C es 2 ma ars : P Mu urs sic uit o Ro al: D f H m rea ant mg app Th ic C irls yne ss rille om r/S edy usp : T ens he B e: T rea he D k-U p a V inc i C ode

Segmentation by Age

Segmentation by Rating

Dimensions

Demographics – Males and females of various ages and income levels Geographics – Billings Heights and surrounding areas Behavioral – Movie attendees want the ultimate movie experience that no other theatre offers Psychographics – In a person’s daily activities they are constantly exposed to movie advertisements

Decision Making Process

Identify the problem – Potential customers do not know the difference between a regular movie and an IMAX movie Gather Information – Friends or family – Internet – IMAX movie theatres – Other movie theatres

Decision Making Cont.

Evaluate Alternatives – Renting – Piracy – Regular movie theatres Make Decision – Customers will pick IMAX over regular movie theatres because of experience, comfortable seats, location, and good customer service.

Evaluate Decision – Customers will realize they got a better experience by choosing IMAX movie theatre.

– Customers will return due to our unique promotions.

The REAL IMAX Theatre

Presented By: R yan Biggs Mik e Crisafulli W a yne Scharnhorst L insay Duty

Strategy – Product Means End Chain Perceptual Map Brand Positioning – Price Objectives Strategy Competitor Analysis – Place Objectives Strategy – Promotion Objectives Strategy

Outline

Product: Means End Chain

Product Attributes Physical Consequences Psychological Consequences Values

Real IMAX Theatre 3 screens (2 regular screens and 1 3D) View either regular or 3D movies on IMAX screens People can enjoy new movies on IMAX screens Not an ordinary movie experience Comfortable seats Comfort during the movie People feel like they are in the comfort of their own home Comfortable entertainment Location (In Billings Heights) Do not have to worry about West End traffic Big city movie experience without the hassle and stress New addition to the Billings Heights Good Customer Service No frustration with poor customer service Always feel welcome Satisfying Experience

Product: Perceptual Map

High Comfort Level

The Real IMAX

Carmike Cine Seven Wynsong Drive-In Normal Comfort Level

Product: Brand Positioning Statement

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

Price

Objective – Sales oriented Unit sales growth Market share growth Strategy – Price skimming / Penetration Adult: $12 Child: $10 – Predicted Revenue Target: 18,552 (people) x 3 (visits/yr) = 55,656 55,656 x $11 (average admission price) = $612,216 55,656 x $7 (avg. concession spending)= $389,592 $612,216 + $389,592 = $1,001,808

Price: Competitor Analysis

Carmike 7 Wynsong Drive – In Cine Seven Adult

$8.00

$8.00

$6.00

$1.50 / $3.00

Child

$6.00

$6.00

$4.00

$1.50 / $3.00

Place

Objectives – To be conveniently located in the Billings Heights to provide our customers with a direct product channel Strategy – Located in the Billings Heights for direct channel distribution – Kiosk for online ticket purchasing Very convenient for customers who travel far distances No waiting in line – Website to view show times and listings Very user friendly

Low Cost Provider

Place Objective

High Quality Experience

Promotion

Objectives – To inform our customers about the IMAX experience – To persuade movie goers to make the switch to IMAX

Promotion

Attention – Movie Trailers – Word of Mouth – Newspaper – Billboards Interest – Yellow Pages – Web Sites – Word of Mouth

Promotion

Desire – Customer Service – Movie Experience – Superior Comfort Action – Hot Seats – Ticket Kiosk

Sources of Research

Drive-In Amusement Park Amusement Business http://en.wikipedia.org/wiki/Billings,_Montana www.carmike.com

US Census Bureau ( www.census.gov

) www.fairus.org

www.hometownusa.com/mt/Billings.html

www.IMAX.com

www.mpaa.org

http://www.the-numbers.com/market/2006/Comedy.php

www.yellowstoneimax.com/rates.htm