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Furthermore, Along With Work And Family Commitments, Older Cinema Patrons ...

Furthermore, along with work and family commitments, older cinema patrons have less free time available to them and more options with respect to how to spend that time. This means that they are more likely to want to spend more money when they do go out to make sure that they utilise their time optimally.
Market Research
The purpose of the market research undertaken was to determine whether the Gold Class concept has been successful elsewhere, to gauge whether or not Hammersmith is the best location for a Gold Class cinema and to establish a price point for Gold Class tickets, food and drinks.
The market research allowed the prospective owners to establish that the Gold Class concept has proven successful in Australia. While it was not possible to obtain financial figures, the prospective owners were able to determine that the concept has been around for several years and they were able to test it for themselves (a sample menu from an Australian Gold Class cinema is attached at Appendix A and can also be found here: http://www.greaterunion.com.au/goldclass/moviemenu.asp).
In order to determine whether or not Hammersmith was a reasonable location for a Gold Class cinema, the prospective owners researched the demographic trends and the types of new businesses that were opening in the area. They found that many new business were opening and established businesses were being renovated to meet the tastes of the new residents moving into the area. As such, it was concluded that Hammersmith was a suitable location for a Gold Class cinema.
Establishing price points for Gold Class tickets, food and drinks was quite difficult as the measures against which these price points can be determined are not perfect substitutes for each other (ie does a portion of fish and chips in a Gold Class cinema equate to the same meal in a pub?). It was decided that the only feasible approach was to go for higher price points, but offer various promotions which would mean that most people would not end up paying the full advertised price.
Competition Analysis
As noted, the market is extremely concentrated with the multiplexes taking a lion's share of box office receipts. At the other end of the cinema market, are small, family run cinemas which are often seen by the public as being run down and in need of renovation, but priced competitively. There is little between these two extremes.
However, while the multiplexes offer a certain type of experience, the prospective owners' believe that there is still a potential untapped niche which small cinemas can exploit and which the multiplexes would have trouble competing with in the short term. Other potential competitors are similar niche cinemas which focus on selling a lifestyle (eg cinemas which only screen independent movies).


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