1. The REAL IMAX Theatre Presented By: Ryan Biggs Mike Crisafulli Mike Crisafulli Wayne Scharnhorst Wayne Scharnhorst Linsay Duty Linsay Duty

2. Outline Objectives SWOT Analysis –Internal StrengthsWeaknesses –External OpportunitiesThreats Product Life Cycle Quantified, Measurable, Profitable

3. 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 Opportunity / Threat = Objective – 92,764 / 5 = 18,552 children and adults

4. 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

5. 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

6. 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)

7. 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

8. 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

9. 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

10. Quantified, Measurable, Profitable Competitor Prices Regular IMAX admission Adult$8.00$12.00 Child$6.00$10.00 3 yrs and under Free for 2 yrs and under Free

11. The REAL IMAX Theatre Presented By: Ryan Biggs Mike Crisafulli Mike Crisafulli Wayne Scharnhorst Wayne Scharnhorst Linsay Duty Linsay Duty

12. Outline Target Audience – Segmentation Strategy –Dimensions –Decision Making Process

13. Target Audience

14. Segmentation Strategy By Genre –Comedy, adventure, action movies By Age –Teens and young adults By Movie Rating –PG-13 and PG movies

15. Segmentation by Genre

16. Segmentation by Genre Cont.

17. Segmentation by Age

18. Segmentation by Rating

19. 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

20. 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

21. 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.

22. The REAL IMAX Theatre Presented By: Ryan Biggs Mike Crisafulli Mike Crisafulli Wayne Scharnhorst Wayne Scharnhorst Linsay Duty Linsay Duty

23. Outline Strategy –Product Means End Chain Perceptual Map Brand Positioning –Price ObjectivesStrategy Competitor Analysis –Place ObjectivesStrategy –Promotion ObjectivesStrategy

24. Product: Means End Chain ProductAttributes Physical Consequences Psychological Consequences Values Real IMAX Theatre 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

25. Product: Perceptual Map Normal Comfort Level High Comfort Level Normal Experience Ultimate Experience

26. 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.”

27. 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

28. Price: Competitor Analysis AdultChild Carmike 7 $8.00$6.00 Wynsong$8.00$6.00 Drive – In $6.00$4.00 Cine Seven $1.50 / $3.00

29. 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

30. Place Objective Low Cost Provider High Quality Experience

31. Promotion Objectives –To inform our customers about the IMAX experience –To persuade movie goers to make the switch to IMAX

32. Promotion Attention –Movie Trailers –Word of Mouth –Newspaper –Billboards Interest –Yellow Pages –Web Sites –Word of Mouth

33. Promotion Desire –Customer Service –Movie Experience –Superior Comfort Action –Hot Seats –Ticket Kiosk

34. 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.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