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The Media And Promotion Strategy Would Focus On Teaming Up With Local ...

The media and promotion strategy would focus on teaming up with local businesses and newspapers to offer special promotional packages (for example, the local florist could offer a two for one deal with each bunch of roses sold).

Advertising campaign

The advertising campaign would be highly targeted and local. 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 would be to focus on local customers and to ensure that they remained regulars.

Budget

A large marketing budget would not necessary as the focus would be on offering promotions such as half price tickets during the day and/or two for the price of one deals can be offered in conjunction with various local business/newspapers reducing marketing costs substantially. As the Gold Class cinema experience is unique, and marketed as an indulgence, it is suggested that many local businesses would be willing to be involved in such promotional activities.
While actual advertising costs will be low, printing and distribution costs will still need to be considered.

Management

The prospective owners of the cinema are the brothers James and Jack West. James West has recently completed his MBA and is working for one of the UK's largest cinema distribution companies. Jack West currently works as an advertising executive. In anticipation of a sale, the current owners have taken the last three months to show James and Jack the operational side to running a cinema. Both Jack and James intend to invest £250,000 of their own money and take on this project full-time.

In addition, James and Jack have already approached a friend who runs a small restaurant to assist them with the preparation of a suitable menu and have had plans for the refurbishment prepared.

It is intended that James manage the operational side of the cinema while Jack concentrate on the marketing.
Projected sales and pricing strategy

Pricing strategy

A regular ticket at West London cinema is currently £4 during the day and £6 in the evening for an adult. Gold class tickets will be priced at £8 during the day and £12 in the evening. In addition patrons will be able to buy food and drinks which will be brought into them while the movie is playing. The average price of food items and alcoholic drinks will be approximately £5 - £10.

Financial Considerations

The current owners hold a long-term leasehold interest over the premises at which the cinema is located.
The main costs incurred by a cinema relate to the percentage of box office takings that go to the film distribution companies.


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