The REAL
IMAX Theatre
Presented By:
Ryan Biggs
Mike Crisafulli
Wayne Scharnhorst
Linsay 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
Regular
Competitor
IMAX
Prices
admission
Adult
$8.00
$12.00
Child
$6.00
$10.00
3 yrs and
under
Free for
2 yrs and
under
Free
The REAL
IMAX Theatre
Presented By:
Ryan Biggs
Mike Crisafulli
Wayne Scharnhorst
Linsay 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
Under 5
Years
5-9 Years
10-15
Years
16-19
Years
35-44
Years
25-34
Years
20-24
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
8
7
6
(number of 5
movies in 4
3
genre)
2
1
0
Ac
ti
on
Ad
v
Mu
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Dr
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a
m
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ma
ic a
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a
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tic er/S
y
us
e
Co
me pen
se
dy
Segmentation by Genre Cont.
Top Box Office Sales by Genre for 2006
$ (in millions)
500
400
300
200
100
0
Ac
t io
Ad
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Mu
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am
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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:
Ryan Biggs
Mike Crisafulli
Wayne Scharnhorst
Linsay Duty
Outline
Strategy
– Product
Means End Chain
Perceptual Map
Brand Positioning
– Price
Objectives
Strategy
Competitor Analysis
– Place
Objectives
Strategy
– Promotion
Objectives
Strategy
Product: Means End Chain
Product
Real IMAX
Theatre
Attributes
Physical
Consequences
Psychological
Consequences
Values
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
Wynsong
Drive-In
Carmike
Cine Seven
Normal Comfort
Level
Ultimate Experience
Normal Experience
The Real
IMAX
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
Adult
Child
Carmike 7
$8.00
$6.00
Wynsong
$8.00
$6.00
Drive – In
$6.00
$4.00
$1.50 / $3.00
$1.50 / $3.00
Cine Seven
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
Place Objective
Low Cost
Provider
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