金融四
金融四
金融四
金融四
金融四
王妍心
陳定承
何宗翰
陳致勳
林冠廷
Outline
 Preface
 Industry Overview
 Introduction
 Pricing Strategy
 Conclusions & Advices
 Questions & Discussions
Preface
The rates of full house of theaters
in TW are often less than 10%.
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But VIESHOW CINEMAS make the
most expensive charge to highest
rate of full house in TW.
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There are 13 theaters in TW,
over 127 Cinema Halls.
VIESHOW CINEMAS just
dominant the market.
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Expensive and more Expensive!
Take the lead to show
IMAX, 4DX and Golden Glass.
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“Movie = VIESHOW”
is deeply rooted in TW.
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Why the highest price
for best sales?
What is the MAGIC?
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LET US
REVEAL
THE SECRET
FOR YOU!
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Industry
Overview
Characteristic of Cinemas
 rate of full house
. the time and quality of a show will not be
affected by amount of audiences, since the
cost of a show is fixed
(Philip Kotler,1998)
. the managers should pay attention to
“rate of full house”and the
“outflow rate of audiences”
→ to maximize their profits
Business Strategies
 increase numbers of showings
․ distinguish matinee and non-matinee
 broadcast all kinds of films to attract more
audiences
 expand food service, provide food and
beverages
Business Strategies
 improve audio-visual equipment
 combine with other places of entertainments
․ bookstores
․ fast food restaurants
․ record stores
Main Competitors
 take Vie Show in Taipei for instance:
․ Ambassador Theatres
․ ShowTime Cinema
Introduction
About Vie Show Cinemas
 the predecessor was Warner Village Cinema,
which was set up by two company:
. Warner Bros. Entertainment, Inc.(USA)
. Village Roadshow Entertainment Group(AUS)
 three theaters in Taipei now:
. Hsin Yi Vie Show
. Qsquare Vie Show
. Sun Vie Show
About Vie Show Cinemas
 also has locations in Hsinchu, Taichung, Tainan
 to give audiences better visual effect, some
theaters upgrades their equipments to 3D,
IMAX, or 4DX system
Initial Analysis
 we use comments of bloggers and PTT users as
basis
 since the quality of audio-visual equipment are
different among locations of Vie Show:
→ we take theaters in Taipei as example and
then analyze their equipment
→ we use the hierarchy system,
“1”means the worst,
“4”means the best
Initial Analysis
 after the comparisons within Vie Show, we make
comparisons with its competitors
→ we use Vie Show as standard, and analyze
whether its competitor is better or worse than
Vie Show
Comparisons within Vie Show Cinemas
Sound
Screen
Hsin Yi
3
2
Sometimes the proportion of screens
may cause weird visual effect.
QSquare
3
3
The seats are spacious, give
audiences more convenience.
4
1. The visual effect is the best.
2. The design of seats have few
problems, back row audiences may
be blocked by front row audiences
sometimes.
1
1. The seats are too crowd.
2. Back row audiences may be
blocked by front row audiences, too.
Sun (IMAX)
Sun (normal)
4
1
Note
Comparisons with competitors
Sound
Ambassador
ShowTime
better
worse
Screen
Note
better
1. The design of seats is also the best.
2. Takes quality into account, so the
showing is fewer than Vie Show.
even
1. The decorating is gorgeous.
2. Sometimes the sound of two
adjacent halls will affect each other.
Summary
 the quality of audio-visual equipment vary from
different locations of Vie Show
→ which give audiences the impact that
Ambassador is better than Vie Show
→ however, with the introduction of IMAX
and 4DX technology, actually the equipment
of Vie Show’s and Ambassador’s
is on the same level now
Summary
 to attract more people, sometimes Vie Show
also broadcast live concerts, classical music,
and opera
→ making topics, business opportunities, and
more entertainment fun
SWOT Analysis
S (Strength)
W (Weakness)
1. located in the cities or traffic
convenient location
2. successful marketing strategy
3. combine with commercial center to
attract more customers
4. IMAX, 4DX technologies have good
reputations
1. high ticket fees
2. the quality of audio-visual
equipment vary from different
locations of Vie Show
3. advertising and trailers are too long
4. Internet booking system is very
unstable
O (Opportunities)
T (Threats)
1. enhance information and services
1. the piracy problems
by the integration of IT systems
2. video rental shops are everywhere
2. purchase the POS machines in
Taiwan, which save a lot of money,
and can also provide customization
services
Pricing
Strategy
Pricing Strategy-among theatres
․Adult tickets = 全票
․Matinee tickets = 優待票
․Concession tickets = 早場票
Comparing
 Price:
Each kind of tickets sold by Vie show Cinemas
is often the most expensive. Between
Ambassador theatre & Showtime theatre, the
ticket price of Ambassador theatre is higher.
Comparing
 Equipment:
Ambassador theatres have the best projecting
system. And screens of Vie show Cinemas’
are IMAX screen. It’s hard to decide which
ones equipment is more fantastic. Yet the
equipment of Showtime theatre is apparently
the worst.
Comparing
 Locations:
In Taipei City, Vie Show Cinemas has most
theatres.
 Marketing strategy:
These three theatres all use the strategy of
bundling, have the cooperation with credit
card company, and social network
marketing.
Comparing
 Overall, the marketing strategies among
them are no clear difference.
Summary
 Among all aspects, why the price of Vie show is
the highest may be the reasons below:
. More Locations in Taipei-more people know it
. More advertisement-more people know it
. More popular among young people
 Although all these reasons may result in the
higher ticket price of Vie show Cinema,
The price gaps among theatres are still
not so big.
Pricing Strategy-among groups
Comparing
 Matinee tickets
It’s the application of peak-load pricing. Most
people watch movie after work or school. The
demand then is higher, so adopt the higher
price. Watch the show in the morning is less
demanded, so adopt the lower price.
Comparing
 Concession ticket
It’s the application of third-degree price
distribution. Give discount tickets to the people
who have less income to reach the largest
benefit.
Comparing
 Group ticket
It’s the application of second-degree price
distribution. Buying tickets at a certain amount
at once will get cheaper ticket. It’s for the
largest-benefit seeking, too.
Comparing
 Area – Taipei / Hsinchu / Taichung / Tainan
We can see that the more average income per
person the city has, the higher ticket price will
be. It’s the likewise idea of discount ticket..
Conclusions
&
Advices
Conclusions
 matinee/non-matinee
․ an example of peak-load pricing
․ use the inverse relationship of demand and
elasticity to set prices
 concession ticket/non-concession ticket
․ the third-degree of price discrimination
according to income
Conclusions
 group ticket / non-group ticket
․ the second-degree of price discrimination
․ enhance amounts of customers by giving
some discounts
 pricing according to region
․ Taipei > Hsinchu > Taichung > Tainan
․ another example of the third-degree
of
price discrimination
․ pricing according to income
Advices
 more credit cards promotions
According to website, Vie Show only has
promotions when using credit cards of Citi
Bank, Taishin Bank and Chinatrust Banks.
We think that Vie Show can enlarge its credit
cards promotions with other banks.
Advices
 exclusive counter for internet booking
Vie Show can set exclusive counters for
internet booking customers, so that they do
not have to line up again when picking up
tickets.
Advices
 cooperation with parking lots
Take Hsin Yi and QSquare Vie Show for
instance, Vie Show can try to cooperate with
surrounding parking lots, giving some
discounts to customers to increase their
convenience.
Questions
&
Discussions
Vie Show wants to release a special offer including
popcorn and movie ticket. The target customers
are people who like to have snacks. According to
the survey, there are two kinds of customers.
Q: How to set the pricing strategy to make Type A
customers only buy the movie ticket and Type B
customers choose the special offer? (A ticket costs
$150, popcorn costs $50)
Movie ticket
Popcorn
Type A
Willing to pay $240
Willing to pay $40
Type B
Willing to pay $210
Willing to pay $70
References
 Vie Show Cinemas
․http://www.vscinemas.com.tw
 PTT-Theater
․http://www.ptt.cc/bbs/Theater/index.html
 Mobile01
․http://www.mobile01.com/topiclist.php?f=386
 Wikipedia
 Yahoo! Answers
Thanks