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Rural Cinema Marketing Management Report

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Published: Tue, 16 Jan 2018

This report is based on an organisational scenario which addresses and offer solution to the task. As a Marketing Consultant who works for Cine-Marketing Limited I have provided some observations and suggestions to the current situation on this report which requires knowledge, research and investigation the market for the Plaza cinema.

The Plaza is the cinema which located in rural area of Elderwood in UK. Barry Champion is the current owner of the cinema. Before Barry purchase the cinema was owned with someone else. When Barry Champion purchase that cinema it was in bad condition so as the Market Consultant decided to advice Barry Champion to use possible target marketing in terms of advance his Future Plaza cinema.

 

Plaza Cinema Business

In order for any business to be successful, one to needs very much to invest or put a lot of effort in marketing. Through Marketing, one can understand the market of his/her business so that business can run smooth due to good sales. So, any good marketing plan will lead to a good business.

For Barry Champion to be successful in his business, he needs to set very strategic marketing implication. Implications are ideas or suggestions that Barry needs to his Cinema business to be successful.

The following represents the marketing implications Barry Champion should consider in opening and developing his newly acquired cinema business.

Target Marketing

Barry should stay alert to trends which might impact his business market. For instance the environment of parking area was sucking, so he should be carefully with such trends which might cause some effects to his business.

Also Barry should collect details about their competitors. Once manages to do these will help him on his new business successful. Perhaps it will help him to know what their competitors luck so that for him can increase the services.

Barry should read the market research on what their consumer wants. And which groups suppose to deal with, the one s who are working or children.

Product Development

Quite often businesses in this particular industry want to develop a brand personality. Here Barry should create a difference services or product which will match with this cinema business, it can be a restaurant. So that before customer starts to watch movie they can go and buy some few drinks, instead of coming with their own foods from home.

Moreover offer a cheaper entrance fees. Due to small amount of entrance it will attract more customers coming and watch the movie.

Barry should also update his services. He must improvement the services like enlarge parking area and other minor innovation which will establish the product. Introduce new things every time and also he can change the theatre to look more attractive. Increase of the patrons seats and renovate the foyer.

PLACE

Here Barry champion can renovate his cinema product. He can renovate the cinema hall the building the parking areas. Also to create the auditoriums in good way and arranging of the chairs.

SALES PROMOTION

Barry should use this method to promote his new business, because for any activity undertaken by an organization to promote an increase in sales, usage or trial of a product or service may include an advertising campaign, a free-sample campaign, offering free gifts or trading stamps.

There are two basic promotion strategies which Barry Champion should consider in a new cinema, PUSH and PULL Strategies.

The PUSH STRATEGY

Barry can apply this method to maximize the use of all available channels of distribution to for his business. This generally require tightfisted discounts to achieve the objective of giving the channels incentive to promote the offering, thus can reduce his needs for advertising.

The PULL STRATEGY

Support the purchase frequently requires direct interface with the end user of the offering. So Barry once use of these channels of distribution is minimizing during the first stages of promotion and a major commitment to advertising is required. The plaza cinema adverts will definitely increase.

Methods of sales promotion

There are many customer sales promotional techniques available for a new cinema promoted.

Price discount

Evaluate his fee structure; Barry can look on different cinema the way payment is done. He also introduce credit card to attract more customers who do like to carry money. Barry must also lookout against the possible negative outcome of discounting on a brand’s reputation.

Coupons

For cinema, coupons are another very flexible way of offering a discount in a new Plaza cinema.

The key purpose with a coupon is to maximize the downfall rate of tickets; this is the proportion of customers actually using the coupon.

Use of coupon promotions is, therefore, often best for new products or perhaps to encourage sales of obtainable products that are slowing down.

ADVERTISING

Perhaps Here Barry champion need to do some research on which the advertisement he will based on product or service. Thus, an advertising plan for one product Services might be very different than that for another product or services. Clearly in this new business we can use different ways of advertising in order to create awareness within the society.

Barry can do his advertisement during the peak seasons. This is the best time to capture more customers. He can also promote his business jointly with other professional. So that he Bringing a product (or service) to the attention of potential and current customers

Barry can use the media. The commercial breaks are shown in breaks of about two minutes which occur in roughly minutes or more. So we can use this break effectively to advertise the new cinema. Here we can reach different type of people. Newspaper and magazine, can also be advertise especially for elders. Most of them are the one who interested in reading newspaper and magazine.

Barry can create a Posters or magazine for more attraction. Use this method because the cinema is in rural so it will be much better to advertise more the cinema in those posters. This poster is designed to be posted in some public area for the purpose of eye catching and also to pass the information. He can use magazine to attract older customer. Because this customer preferred reading magazine.

Billboards provide support and also attraction towards the customer. Barry should put some billboards more in different place especially towns, because there so many activities in that place. Hence will help to advertise the new cinemas in Elderwood, it is much easier to use such tool as new movies are out every now and then. Can also put some movies which will be shown in cinema.

MEDIA RELATION

Plaza cinema should be advanced in media relation like radios, television, and magazine. Barry updates his media list often so that once press releases are sent to the right media and outlets. He can also write a column in local business paper so that can create awareness toward consumer

Also he can create an annual award and publicity it. This will help him to capture more customers, because everyone wants to be the winner.

Moreover Barry Champion can create his own talk show so that he appears on Television different time. Here can create own TVs program then show it to local cable stations.

PRICING

Barry should consider the pricing strategy. A pricing strategy is mostly influenced by your requirement for net income and your objectives for long term market control.

There are two basic strategies which Barry should consider in his new plaza cinema.

SKIMMING PRICING

Plaza cinema is new business in a new environment so this strategy will probably work. Barry can start with high prices high, as a new cinema can use this approach. Perhaps, people are not aware of the cinema business in this environment. So it’s easy to attract more people. He can also introduce some new movies like Avatar; this will attract customers more attend without considering the price.

PRICING PENETRATION

Barry can apply this for his cinema Business. It is most often used businesses wishing to enter a new market or build on a relatively small market share here Barry can set the prices very low. For a new Elder wood cinema this strategy is very suitable. The strategy works on the expectation that customers will switch to the new brand because of the lower price.

TASK 2

Purchasing Behavior some purchasing situations are characterized by low involvement but significant brand difference. Consumer often has ability of brand switching; the consumer will try to look on different cinema and try to compare the Quality of place, the offering price and coupons. Before he or she make a decision to purchase.

Decision making unit is a group of employees, family members, consumers or members of any type of organization responsible for finalizing their major decisions, usually involving a purchase. So once Barry understands this Decision making unit it will be easy for him to gather and obtain the information concerning his cinema business.

Barry needs to able to deeply analyze the decision making process of his current customers and those who used to attend his newly acquired business and improve it to his best ability so that he can be consistent with it.

It’s good for Barry champion to understand this Decision making Unit involved in the purchase. In a generic sense, there are typically six roles within any buying center that will affect purchasing decision making for customers in a positive way.

They are:-

INITIATORS: is the person who first suggested or request of the idea to purchase the particular product or services.

INFLUENCERS: Are the people who influence buying decision. They often help define design and also provide information or they try to affect the outcome decision with their opinions.

DECIDERS: the people who decide on product requirement or on suppliers.

BUYERS: are the people who have formal authority to select the supplier and arrange the purchase terms.

END USER: those who will use the product or services being purchased.

Decision Making Process is the procedure by which consumers collect and analyze information and make choices among alternatives goods, services, people, places and ideas.

THE DIAGRAM EXPLAINING THE DECISION MAKING PROCESS

The Making decision processes consist of five basic stages: problem awareness, information search, evaluation of alternatives, purchase and post purchase evolution.

The model implies that consumer pass through all stages in every purchase. However, in more routine purchases, consumers often skip or reverse some of the stages.

The buying process starts with needs recognition. At this stage, the buyer recognizes a problem or need. For instance buyer needs to watch movie, he or she first needs to know what kind of movie he/she want to watch. So he or she needs to observe the type of the movie she or he wants to watch.

Then after a consumer decides a shortage desire is worth consideration, information is gathered.

Information search requires listing alternatives that will solves the problem. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins.

A customer can obtain information from several sources:

  • Personal sources, family, friends, and neighbors here a word of mouth is necessary. Clearly he/she goes to ask about the plaza cinema and what type of movie she wants to watch.
  • Public: mass media like magazine, radio, television, consumer organization if is available and so forth. Most of the time consumer receive information from public source but in this case is quite different consumer get information from personal source.

The usefulness and influence of these sources of information will vary by product and by customer. Research suggests that customer’s value and respect personal sources more than commercial sources or the word of mouth. The challenge for the marketing team is to identify which information sources are most influential in their target markets.

Evaluation stage: – one alternative from the choices. This is easy when one alternative is clearly superior to the others. The consumer decides to go to plaza cinema that’s it. But he or she will come across all characteristics of a plaza cinema services, and start to evaluate it with good quality, and low price which plaza cinema has all the quality. Often the stage is not that simple, and consumer must be carefully in evaluation of alternatives before making a decision. The consumer must consider some features before he or she make decision. Such features are quality of the cinema, price, safety here will look on the security of the plaza cinema and the status of the place.

Another stage is Purchase; here the customer is ready for the purchasing. Payment is paid either cash or credit. The consumer will make payment once he or she satisfied with the cinema. In this case of cinema plaza Low involvement purchases is more considered. This case the consumer does not need to look for more information about the cinema as if he or she going to buy a house. The only thing she/he needs is to go buying ticket and watch movie. This process has very simple evaluation.

Purchase evaluation

The final stage after making a purchase, the consumer frequently is involved with the post-purchase evaluation of the decision. It is common for customers to experience concerns after making a purchase decision which lead to another purchase. In this cinema after the consumer attend the cinema plaza once he or she and satisfied usually the result is to join a member club of plaza cinema.

Importance of Barry Champion to understand Decision Making Process and Decision Making Unit

It helps him in considering the whole buying process; once Barry Champion understand all the stage of decision making unit and process it will be easy for him to make decision once he needs to buy the technique equipment of his cinema. No mistakes would appear because he already knows all the stages of making decision.

It will help to understand the relative influence for each patron in decision making process, and able to create features that are preferred by these participants. Moreover he will be able to create advertisement strategy headed for his customers. Once the customers are aware of the Cinema it will be easy for them to attend.

It will help him in making strategies of his new Plaza cinema. That means Barry will be able to understand what his patrons really want in his cinema, so that he can provide to them.

It will help him in making decision in possible consequences. When such an analysis is done well, it can provide important insights and understanding. So this clearly shows that once Barry Champion undergoes this decision making process well even his business will develop.

Barry Champion by understanding these decision processes it will help him to exctract information such patrons behavior or consumer influences for example (subculture, culture and Social roles class.

Furthermore it will help him to be able to take out data on the emotional process that affect purchaser behavior or his potential patrons such as stimulus, perception and so forth.

Ways which Barry champion should consider in obtain information

Focus Group Here Barry can take a group of 8 to 30 people based on the demographic and meet in arranged room. He brought them together to discuss on the areas which Barry need to search. This way of gather information it cost some little amount to pay the participants who attend the meeting.

He can also obtain information through talking with people. It can be used to collect information that is not openly obtainable. Barry might include meetings with patrons and suppliers. This information often has doubtful strength because it is highly personal and might not be delegate of the people.

Feedback forms, here at the end of the of the show patrons they can feel out the forms concerning the cinema. So by doing so Barry Champion would got the actually report concern the cinema Plaza.

Survey, he can see what happening elsewhere, Barry he can also go and visit other cinema so that he can receive the information of the other places how they conduct their business. Also he can use the information by renovate the cinema plaza. For example on how the auditorium and parking area they will be posses.

TASK 3

Today’s business environment is very competitive, this increase the need for companies to analyze their environment so that to be competitive and survive. SWOT Analysis provides a model for analyzing the competitive attractiveness or profitability of the industry. Gold screen should do this analysis so that to identify its key competition in the cinema Industry in Malaysia.

Golden Screen Cinema industry in Kuala Lumpur Malaysia is the main competitor for Plaza cinema in Elderwood. So once Barry identifies who are the competitors for his business. It will be easy for him to deal with the organization. And Barry Champion should consider understand the Competitive Forces. Michael Porter has identified five forces that determine the forces of the competitor in a market. The following are the forces of competitive.

STRENGTH

One of the best strength of Gold Screen Cinema is the technique to catch the attention of patron to use credit card is when they started to apply a credit card. Other than this is the given reduction of those customers who purchase more tickets him or she can get a discount which is Plaza cinema do not have this strategy.

In addition, it has got a Strong brand name company whereby the competitors are afraid of the services provided inside the industry. A new innovated product or services become a good strength to the organization as Golden Screen Cinema; it has all the quality the customer wants.

Also a good location Golden Screen Cinema business leads to force of the company. Possibly when the cinema is far away from the patron, no customer would like to go because usually patron do not like to travel for long time just for watching moving.. But when the location is good and easy for every customer to reach on time is a key success for the business.

Good reputation among customers leads to strength of the business. Once the customer spread the words about good services provided in the Golden Screen Cinema. Many populaces would like to be there the cinema and watch the movie which is strength of the business and also will bring more profits to this Golden Screen cinema. For Example Tuesday rates special

WEAKNESSES: – The absence of acertain strength can be a weakness. For example

The Golden Screen Cinema main weakness is lack of market expertise will bring the market down and for the Plaza cinema the Auditorium is in bad condition so it needs to be decorated; also the seats were too few

Location of the business, Golden Screen cinema must consider this weakness. Other people are unlikely to travel a long distance just for watching movie. So the good location leads to consumers to attend the cinema frequently. Plaza cinema environment is in a bad condition, there are no enough parking areas also any toilets.

Hence plaza cinema patrons are only likely to pay a premium price for a movie when blockbuster movies are released. A lack of hit movies could make it difficult to sell tickets.

OPPORTUNITIES

Quickly adapt of new technologies like latest digital visual and audio equipment which increase entertainment and customer are free to buy tickets online, this will increase the revenue of the Golden Screen cinema

Cinema worker must charge multiskilled and stretchy employees like young and informal workers who settled to work daily, twelve-monthly and work order.

Loosing of regulations, once rules and regulation are not tight easy to make profit for the cinema. And the Malaysian rules are quiet well. So this is the good opportunity for Golden Screen cinema.

THREATS

It is too parked during Wednesday and Thursday in Golden Screen cinemas like a marketplace, it is very hard to buy a ticket if you arrive at the place late. In Plaza cinema the technical equipment of plaza cinema has been regularly repaired.

Price it is rouse expensive especially on Thursday, because they know on Saturday a lot of people prefer going to cinema. Hence, can leads people to move to the other cinema near them. Perhaps the price strategy with competitor must be different but o rouse the price.

Once the competitor has a new innovative product or services this leads to customer to prefer to go to the other cinema rather than attend to Golden Screen cinema.

TASK 4 MARKET PLAN

Executive Summary

Barry Champion has recently negotiations have been undertaken to purchase the rural cinema, the Plaza in Elderwood. Barry Champion Bought the cinema from the private person, the cinema failed to make a profit for the past five years. It has been having trouble competing since Golden Screen cinema .The purpose of this business plan is to seek support of introduce new business and transform it into a modern cinema. This transformation will involve the renovation of one of the screens, decoration in a classy, movie theme style and parking area.

Plaza cinema will give customers the opportunity to watch blockbuster movies from the comfort of luxurious, reclining lounge chairs while enjoying food and drinks brought directly to them

Business Summary

The business objectives are to develop one of the current cinemas which have capacity for 350 seats and with the both downstairs stalls area and gallery upstairs. Once the necessary renovations have been completed, the owners will need to obtain the necessary licensing permissions, hire staff and market the concept.

Current Situation and Background

At present The Plaza cinema is a small cinema industry maximum with two parts downstairs and gallery and patrons numbers has been down. The cinema has had a relatively steady customer base, but the recent opening of plaza cinema meant that patron numbers have been down.

Even before the opening of the new Plaza cinema, the cinema had already been suffering a recession for the past of five years. These have included a pre- semi derelict property, education college. While these issues have affected the cinema in a negative way, these are also the issues on which the prospective owners believe they can take advantage of.

Future Industry Developments

The increase in other entertainment options, for instance computer games, pubs, enlarge cinemas restaurant. And also to make sure the parking areas are renovated in good way, buildings of toilets and

However, the stabilization of the market at the top end does not as yet seem to have filtered down to the smaller cinemas and as such, many continue having trouble turning a profit. It is the owners’ belief that the current market is ideal for the development of a new concept which gives movie patrons an entirely unique cinema experience.

COMPETITION

Plaza cinema is forming his own market although there are few companies that do make cinema business also. After Plaza cinema suffering from making the profit in his own environment, now this Gold Screen cinema become direct competitor by introduce the same product offering.

SWOT Analysis

WEAKNES

The main weaknesses of the Plaza cinema are, the car parking has been discouraged and the technical of the plaza cinema had been up-to-date severally times and also the projector and sound system has been installed one year ago.

They allowed children’s to bring their sweets from home into auditorium.

THREAT

There is possibility of customer to desert the plaza cinema and look for a modern cinema.

OPPORTUNITY

Barry Champion is very experienced man in this cinema industry so can use his knowledge to drive his plaza cinema and against Golden screen class as his competitors.

Market Analysis

The possible ways in which the market cinema can be defined are: cinema complex, cinemas all ways of watching films including cinemas, DVDs and pay-television; and all ways of using discretionary spend including films, going to pubs, clubs or other ways of spending time and money in or out of the home.

As explained above, it is the prospective landlord view that cinemas can no longer focus on the narrow definition of the market. Some guidance can be taken from the Golden Screen cinemas which offer patrons an experience. Often these cinemas are attached to shopping centers and as such going to the cinema is simply part of a person’s shopping day. Golden Screen, like the shopping centers to which they are appended, rely on the principle that if something is large and loud, no one will dare to think that it is anything but the best and it must be said that they do this well. Teenagers are particularly impressed by this logic.

Market Segmentation

Cinema consumers generally fall within the 15-24 year age group with over 54% of people surveyed in this age group having attended the cinema most of the free time and they like to watch movies like Ice age, Madagascar, Alvin and the Chipmunks, Avatar. These decline in the 25-34 year old age group to 35% and normally the movie they like to watch are Jack the Giant killer, Julie and Julia, Twilight, Death in the Funeral, and further within the 40-45 age group to 14%. They go to cinema once in awhile.

These facts imitate, maybe the fact that older cinema patrons who do not enjoy the nature of Gold Screen cinema have limited options with respect to indulging in a cinema experience. Furthermore, along with work and family commitments, older cinema customers have less free time available to them and more options with respect to how to spend that time.

Market Research

The purpose of the market research undertaken was to determine whether the Plaza cinema concept has been successful elsewhere, to estimate whether or not Elderwood is the best location for a cinema and to establish a price point for plaza cinema tickets, food and drinks.

The marketplace research permitted the potential owners to establish that, the two parts concept has proven successful. While it was not achievable to obtain fiscal records, the potential owners were able to decide that the concept has been around for several years and they were able to test it for themselves.

Marketing mix

Plaza cinema marketing mix is compromised of the following approaches

Advertising and Promotion

The advertising would be highly targeted to local and outside. It is assumed that, people are unlikely to travel a long way to attend a cinema especially if they have a local one close by. As such, the goal is to advertise on local customers and to ensure that they remained regulars. So Barry should consider using advertisement like posters, Billboards, magazine and radio and TVs commercial break. Also can use promotion strategies like coupons, all these will promote the cinema plaza in a grand way.

Pricing strategy

Recently in plaza cinema the tickets were so cheap. So for Barry to penetrate the new market can uses the pricing strategies like are skimming and penetration pricing. He can start with Penetration pricing strategy because he wants to capture the market, so he can use low price foe entrance. Additional after the establishment of the Plaza cinema now can use the skimming pricing penetration, here can decide to rouse the price because the industry will be already renovated. Also will spotlight on arranging the ticket, at the cinema plaza is currently $4 during the day and £6 in the evening for an adult. So he can introduce $5 for day movies and $8 for weekend movies.

GOALS OF PLAZA CINEMA

Prioritize the task of designing the Plaza cinema, into two auditoriums and in a modern way and work effectively. In this design the cinemas it will consist of an increase of patron’s seats and make the cinema more luxurious.

Building the foyer and maintain the parking areas in good environment. Also Barry can build the shops, instead of patrons carry their food they can buy the drinks and foods in the cinema place.

To make sure the quality of the cinema is good. The quality of the plaza cinema need to be more maintained so that increases the profit of the company.

Increase the profit of the Plaza cinema. Here to make sure that the advertisement and promotion are conducting effectively so that to pull those people to attend more the plaza cinema. And by doing, so it will increase the profit of the company.

Focus on team work. Plaza cinema need to increase the employees so that they work hard and in a team. When his employees are more focus on the job to done this will help Barry Champion to reach his goals in easier way.


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