Guzzo Cinemas Marketing Project Assignment

Guzzo Cinemas Marketing Project Assignment Words: 5922

Cineplex Entertainment LP Current Situation Cineplex Entertainment LP With the amalgamation of Famous Players and the former Cineplex in October 2005, Cineplex Entertainment Limited Partnership (LP) gained a dominant leadership position (65. 1% of box office revenues) as the largest motion picture theatre exhibitor in Canada. The Toronto-based partnership serves approximately 60 million customers under the following five brands: Cineplex Odeon, Galaxy, Famous Players (including Coliseum, Colossus, and SilverCity), Cinema City, and Scotiabank Theatres.

This portfolio utilizes multi-branding to target a wide scope of quality seeking segments without damaging its premium end brands. Critical Success Factors in the Movie Theatre Industry The core service of exhibition theaters is its ‘full motion picture’, which is crucial to the success of the business as it accounts for 57% of the earned revenue. While the ‘digital pre-show’, which includes trivia and advertisements, has climbed in importance to 26% since its introduction with digital projection technology in early 2005[i], attracting advertisement contracts is reliant on patronship and the quality of the core business. In-lobby entertainment options’ continue to be popular differentiation strategies in the theatre business, but comprise less than 3% of revenues and contribute questionably to the pull of patrons to one specific theatre. Factors such as location, and a desirable movie portfolio have proven to be much more important to attracting customers. External Analysis: Opportunities to Improve the Core Business Industry and Competition

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The movie theatre industry’s core service business has increasingly come under threat from more relevant new competitors. In their heyday, Cineplex and Famous Players were easily able to exercise their sheer size to invest more heavily in state of the art equipment and theatre ambiance, as bargaining power to negotiate for exclusive showing rights. [ii] Theatres were only positioned against their brand competitors[1] on their quality and the competitiveness of their price offering.

Cineplex is not only being challenged by its brand competitors, who have made auxiliary order-taking improvements such as self-service, online ticketing and hospitality expansions within their food offerings, it is also encountering new product competitors[2] such as the iTunes store, Netflix, TiVo, and emerging digital streaming companies like Intel’s Viiv. Industry analysis under Porter’s Five Forces model clearly indicates that the power of buyers is increasing not only by the number, but also technical quality of substitutes near par with that of theatres, and often at cheaper prices.

Online options can even be free in the case of illegal downloading. The strongest product competitors have truly understood both the changing consumer entertainment desires toward convenience, personalization, and luxury and how technological advancements can fulfill it. Their core service product, a movie, remains the same, but their service innovations in the auxiliary delivery element of the flower of service are certainly better synergized and add value for consumers to the main service product. This introduction of at-home quality entertainment has lead to a positioning innovation.

Consumers now use a ‘convenience’ axis to evaluate their entertainment options in addition to the traditional ‘price’ element. Furthermore, as the old axis of ‘quality’ has been made commonplace by product competitors, consumers have added the ‘social excitement’ evaluation that they generally look for in other entertainment category competitors[3] such as bars, sporting games, and concerts. Future Implications Cineplex Entertainment LP continued to exhibit steady growth in annual revenues from 2003 to 2006 driven predominately by rising ‘per guest’ box office and concession expenditures.

During 2006, the company had a box office revenue growth of 3. 2% compared to industry growth of 2%. This market performance does not negate the significance of the threat posed by new service innovators. It simply means that Cineplex has a bit more time left to respond. As explained in the S-curve theory of popular innovation management academics, adoption and impact of new technologies are slow for many years and then explode at a very high growth rate, after which they plateau and are replaced by a new technology at the beginning of its s-curve. This growth path mimics that of the product life cycle theory.

The final barriers to explosion among alternate movie service offerings are diminishing. [iii] Currently, online models provide newer movies but with some access limitations and a limited viewing experience, while home theatres provide great quality and comfort, but at a more expensive movie rental cost and without newer options. Emerging competitors such as digital service innovator ‘Viiv’ are trying to bridge the gap between convenient digital access and quality in-home presentation currently imposed by incompatible formats and Digital Rights Management confusion. iv] These indications have been present and brewing for a while and will soon explode. Cineplex needs to move now to become relevant in another way before the time when product competitors will finally be strong enough to really steal their share. Cineplex’s very liability of its bricks and mortar format allows them the advantage in the movie business to inject the ‘social excitement’ element that could be lacking in the home. Internal Analysis Strengths and Opportunities Cineplex has been a strong adopter of the revolutionary digital theatre projection technology.

Currently only 7% of movie screens in the U. S. are using digital projection because units cost up to $100,000 USD each and exhibitors are concerned that they will not realize the projected 90% distribution cost-savings while digital copies must still be handled on hard drives or downloaded via satellite, which can take up to 16 hours. [v],[vi] Warner Bros. , Universal Pictures, and the Digital Cinema Implementation Partners alliance (AMC, Regal, and Cinemark[vii]) have banded together to catalyze improvement in the digital distribution network[viii].

As of the second quarter, Cineplex has converted 66% of its screens[ix] to digital technology giving it a huge advantage to quickly take advantage of the competitive benefits that digital technology offers. The change will not be in movie quality, but in flexibility of a theatre’s show scheduling, their ability to show a wider variety of niche film, t. v. , live concert and sporting game products, and a differentiated 3D capability. Areas for Improvement Based on this situational analysis, Cineplex Entertainment must redesign its service to reposition itself among an increasingly relevant and substitutable set of competitors.

The key areas of opportunity for improvement are to improve the convenience factor of the theatre going service experience to at least point of parity with in-home entertainment options, and to create a sustainable competitive point of differentiation that cannot be copied by other movie service providers. The opportunity area to do this is on the ‘social experience’ positioning element that ‘clicks’ competitors cannot offer and that Cineplex’s much smaller ‘bricks and mortar’ competitors cannot make the significant investment in for first-mover advantage.

Cineplex Entertainment should also consider leveraging the flexibilities and opportunities for 3D films from digital projection technology to stay one step ahead of the offerings that consumers can afford in home. Design & Delivery Improvements VIP Service Proposal To satisfy the needs and the market trend, Cineplex should develop the VIP Theater. The concept is essentially offering customers no line up at the door, in-theater food service, and a spacious relaxing environment at a premium price.

Unlike regular movie tickets, people get to pre-select seats upon purchasing the ticket. This avoids lineups right before the show. Guests have the privilege of ordering food and drinks without having to leave their seat. In a VIP theater, guests are provided with the most premium service in a comforting and spacious environment. With less than half of the seats in a regular theater, VIP theaters offer a more intimate setting, due to their small size, and have lazyboys seating to maximize overall comfort.

Finally, with the latest digital technology at work???both in terms of surround sound and screen quality???guests are bound to be transported into another world in no time. By having implementing such a different concept, never seen before for the general public in North America, VIP theaters provides Cineplex the opportunity to improve all aspects of its 8Ps. Upgraded 8 Ps Physical Environment Cineplex’s theatres currently have a separate division and floor for IMAX which offers an enhanced visual and sound system.

For the VIP service, it will be essential to have a separate section to create an added-value ambiance that will differ from the regular rooms. To create an exclusive experience around the service, the number of front-stage employees will increase, employing approximately 5 employees for each VIP room. With the proper training, the employees will learn the service-based components of quality which includes reliability, responsiveness, assurance and empathy. In the VIP room, the seats will be dispersed in order to create the spaciousness and comfort of a home environment.

An additional table attached to the seat will allow the customer to dine enjoyably in contrast to eating off of their laps or poorly adapted tables in a home theatre environment. Price The VIP experience is a premium service due to its preferential treatment of customers via line-jumping preference-based seating reservations, personalized food service, and premium atmosphere. Thereby, the price of the service will be $20 compared to $10 for a regular movie ticket. This value-based pricing is justified by its quality service and its extra service offerings only available for a VIP service.

The price of the ticket also considers the investment put into this type of service which is much higher than a regular one. By pricing the ticket at $20, it will be enough to cover the setup cost as well as attract customers to use the service. Process The VIP service process will be entirely different from a regular movie service. The process will begin not at the theatre, but with a phone call to the specially staffed VIP reservations desk where entertainment selection advice will be provided and preferred seats can be reserved.

VIP customers will be greeted at a separate ticket counter or may start the process here by inquiring as to the availability for reservations. The pre-show service will conclude with customers being escorted to their seats and menus being presented. During the core portion of the service, the servers will wait attentively in the theatre, available to take guests orders and serve them professionally. After a short setting in period, the movie or other showing will air and service will continue.

At the end of the show, guests are thanked for their attendance and servers offer to call taxis for patrons who have consumed alcohol and discuss the movie or solicit feedback on the service while patrons wait. At the exit, a porter opens the door for VIP patrons to maintain the special experience through to the end and invites guest to come again. Promotion Most of current promotions are done in theatres. For the new service, the promotion will also be done in the actual movie theatre through displayed billboards.

When partnering with different restaurants such as Baton Rouge and Dundees, these restaurants will offer premium package deals which include a meal and a movie ticket; it will be an external promotional package for Cineplex. Cineplex will also promoted the VIP service on their website and publish it in their monthly “Famous” magazine. Most importantly, Cineplex must create a viral marketing which will spread awareness for those who are looking a premium service. By building a word-of-mouth, it will create buzz marketing to attract the high-end customers who are not being targeted at the moment.

Redesign of Service As the goal of re-design is to appeal to entertainment consumers evolving needs for convenience and a social experience, the focal points will be process step changes on the front stage that provide hospitality pampering and a premium physical environment (please see appendix for the service blueprint diagram). The back stage activities will be designed to support the efficient and flexible execution of these things for customers. Critical success steps include the back stage order booking and preparation activities.

To fulfill customers’ social needs in the VIP setting, rooms can be rented out and staffed for dates, TV premiere parties, or hockey games bashes with friends. Accurate and efficient order-booking and information services will be critical to matching the desired service. This initial point of contact is also the first service impression, and is a high-contact point with the chance for Cineplex’s service agents to probe and learn about customers’ needs, and even to up sell them on a private experience, etc. Cineplex should prevent serious OTSUs (refer to appendix) by recruiting training employees well.

In general, moving into a higher contact and value added service means that customer satisfaction, and organizational success, will depend on the employee motivation as well as on enabling employees to serve customers flawlessly. The major challenge is that movie theatre employees are often younger, high school students who only hold their job to earn some spending money and often have no dedication. For this reason, Cineplex should hire the excess staff capacity more rigorously, looking for film students at a nearby university, film buffs, or motivated management students looking to get customer service experience on their resume.

Hiring in this way will be difficult, but necessary to maintain the level of excellence needed to make the VIP experience successful, and the investment made to obtain motivated employees is priceless because it is a key link in the cycle of success for an organization. On this note, employees should be trained intensively in service etiquette, movie knowledge, and how to react logically in difficult customer situations, so that they may be empowered with the autonomy to tailor the service experience. Finally, they must be given a reason to tailor the service experience.

An inspirational vision required to give employees a reason to care. Cineplex could use an inspirational vision that can also be shared with clientele. ‘Bringing magic back to the movies’ would be good because it describes the high bar of emotional experience that employees should be providing and it reminds clientele that at-home movies are not as special as the new VIP service. Implementation Strategy In the initial time frame, the company should go ahead to build a partnership with different restaurants such as Baton Rouge and Dundees.

It will be essential to get an agreement with these restaurants because it will be part of the core product offering. Once the company establishes a partnership with the respective restaurants, it should go ahead with the actual construction of the new facilities and equipment. The time frame in completing both processes will take approximately 6 to 9 months. While the facilities are being redesigned, the company should get started with the training of employees.

The training program need to ensure that employees smoothly and efficient implement the redesigned service to satisfy to customer’s demand. Once the physical construction and the employee training are completed, the actual advertising for the new VIP service will come begin. The company should allocate approximately 6 months to advertise via in-store billboards, in their monthly magazines and through their websites. The reason for its time frame will enable the company to build awareness and create buzz marketing among the consumers before the opening of the VIP service.

Looking at the overall time frame, the company would need to allocate at least 1 year in redesigning the service and process before it can be accessible to consumers. Cineplex currently invests many millions of dollars in its infrastructure and the opening of new movie theatres yearly. Cineplex’s cash flow statement and this level of current investment demonstrate that the company has the financial ability to go ahead with the recommended program. Looking ahead, the company may encounter risks and problems. The first concern is the agreement licensing of different restaurants.

If the agreement process end up taking more than the projected timeframe, the whole project can be delayed and potentially dissatisfy the awaiting customers. Another concern is the actual training program of employees. The purpose of the training is to ensure that the front-line workers provide a value-added service to their clients by building a rapport in a proper manner. However, employees may be reluctant in providing quality service which can decrease customer’s expectations and create a bad word-of-mouth in the long run. Conclusion As the world around Cineplex has changed, it has become necessary for

Cineplex to adapt its service model to match new positioning innovations that make ‘convenience’ and ‘social experience’ relevant to the competitive nature of any entertainment company. Cineplex must create a point of parity on convenience and use its bricks and mortar format to its advantage to create a competitive social edge to its service. Re-designing the service process to offer movies and showings in a VIP format will achieve this level of convenience through value-added physical environment auxiliaries such as comfortable chairs and spacing, and especially the hospitality auxiliary of attentive in-movie service.

Cineplex’s cash flow situation allows them to cover the necessary investments for this venture, and implementation risk will be minimized by front-loading partner contract negotiations before construction investments are made. Risk of success in attracting an audience is low because this format has been successfully implemented in similar environments in other countries. Appendices Appendix A: History Cineplex Odeon Corporation Founded in 1979, Cineplex Odeon Corporation opened its first complex theatre in the basement of the Toronto’s Eaton Centre.

Throughout the 1980’s, the company expanded through new construction and through acquisitions of regional theatre circuits in the United States. In May 1998, Cineplex Odeon Corporation was merged with Loews Theatres, creating one of the world’s largest motion picture theatrical exhibition companies. However, Onex Corporation, and Oaktree Capital Management bought Loews Cineplex Entertainment 4 years later. In November 2003, the Canadian assets of Cineplex Odeon Corp were merged with Galaxy Entertainment Inc. , to create Cineplex Galaxy LP. Galaxy Entertainment Inc.

Galaxy Entertainment Inc (GEI) was co-founded by Ellis Jacob, the former CEO for Cineplex Odeon Corporation and Steven Brown, the former CFO for Cineplex Odeon Corporation in December 1999. They created a partnership with Onex Corporation who held a majority share in the partnership. In February 2000, the partnership expanded with a contractual agreement with Famous Players and Alliance Atlantis Communications who invested in the partnership. Galaxy was created as state-of-the-art entertainment theatres that were generally served by older, out-of-date cinemas in mid-size Canadian cities.

The company was successful and has developed 19 theatres encompassing 154 screens over the next five years in six provinces across Canada. Cineplex Galaxy LP Cineplex Galaxy LP was created with the merger of Galaxy Entertainment Inc. and the Canadian assets of Cineplex Odeon Corporation in November 2003. Two years later, Cineplex Galaxy announced an agreement to purchase the Famous Players theatre exhibition business from Viacom Inc which is now Canada’s two leading theatre exhibition companies. Famous Players Famous Players, formally known as Famous Players Canadian Corporation, was created in 1920. In 1994, Viacom Inc. urchased Famous Players and invested $500 million dollars in re-building new infrastructures in 43 theatres across Canada from 1997 to 2001. Famous Players currently operates 80 theatres, including partnerships with IMAX?? and Alliance Atlantis at the time Cineplex Galaxy completed the acquisition. Appendix B : Listing of Current Cineplex Theatres Appendix C: Consumer Profile Appendix D: Marketing Mix Appendix E: Flower of Service [pic] Information Available information concerning location, movie schedule, and ticket prices is made available through newspapers, magazines, websites, and their own website

Order Taking, Billing, and Payment These three occur at the same time. There is on-site order fulfillment, as it is only at the cinema that one could place and order for tickets. Billing and Payment are done immediately after the order is placed. Cineplex offers the typical counter with service agents to take orders and payments from customers. However, they do offer ‘electronic payment counters’ where customers could pay via debit card or credit card through a self-service system to save time for them.

Hence, Cineplex offers the option for customers, minimizing the time and effort required for both customers and them, while also ensuring orders are complete, accurate, and fast. Payments are limited to onsite and methods available are cash, credit card, and debit card. Consultation The dialogue involving “What do you suggest? ” is present but not substantial. Service agents at the counter for both theatre tickets, as well as food stations, are available to answer questions and help the customer receive all that they wish from their experience.

However, it is not one that is at the level of tailored service or customization, as the experience at the movie theatre is mostly standardized. Hospitality Cineplex offers hospitality elements such as a nice greeting at point of contact with service agents, food and beverages are offered at the various establishments within the theatre, as well as toilets and washrooms for their customers. Safe-keeping Elements offered in this category are incredibly limited, as they only include security personnel, and cleaning services for the theatres and other facilities. Exceptions

Offers that are outside of the routine of normal service delivery are limited or non-existent. As it is a standardized product, customers expect that service and Cineplex limits itself to doing so. Hence, customers are satisfied, but not impressed and they tend to go to theatres depending on location more than on specific service elements. Appendix F: Branding Scotiabank Theatres are flagship locations for Cineplex Entertainment. They are the cinema brand located in major downtown areas in Toronto, Vancouver, and Montreal. These theatres were previously branded Paramount theatres.

Scotiabank purchased the naming rights to this specific brand. It has an urban, young, and busy brand image due to its located in order to target a market including University students and young professionals that live and work in the downtown area of major cities in Canada. This is a joint branding effort to attract a younger market to ScotiaBank as bank customers, as well as reinforce the young and urban brand of Scotiabank Theatres. Famous Players is a “traditional” brand theatre, typically targeted at young teenagers and young couples, as they are located in older downtown areas specializing in mall locations.

SilverCity/StarCite cinemas are a sub brand within Famous Players. They are the medium to large size location in medium-sized cities, suburbs, or secondary neighboorhoods, with a size slightly larger than their Galaxy sister brand. Their theatres are stadium-style seating. Coliseum, as their name implies, are the largest brand within Cineplex Entertainment. They were created as a response to the AMC Theatres and are located in the suburbs of Montreal, Toronto and Vancouver. They are the brand known to provide for the largest selection of movies, and hence theatres, in a single branch.

Galaxy brand is a modern and young persona, as it targets the younger teenagers as their social spot, with stadium-style seating. It is the predominant brand in mid-sized markets. Cineplex Odeon Cinemas is the company’s most widespread brand, having the widest range from small mall multiplexes to large, ultra-modern locations. Their targeting depends on specific branches and their location, targeting all customers interested in going to the cinemas. Appendix G: Current 8 Ps Product Elements The primary product at the heart of Cineplex is movie exhibition. It is a place to watch the newest premiered movies.

Secondary product elements provided include food and drink services, parking, and other forms of entertainment such as arcade. There is little differentiation between different movie offerings; the only noticeable value-added experience is IMAX theaters which had enhance visual and sound. Place and Time The nature of interaction between customer and service organization for Cineplex is that customers visit the service site. The convenience to the customers of service factory locations and operational schedules assume great importance when a customer has to be physically present.

Hence, Cineplex theaters can be found in most populous locations to offer customer convenience. There are 130 theatres spread throughout Canada and is the largest motion picture exhibiter in the country. Show times are generally between 12pm until the latest show at 11pm. Special premieres sometimes have midnight shows. Price Cineplex’s currently has cost-based pricing. The prices are set sufficiently high to recover the full costs of producing and marketing the service, and add a sufficient margin to yield the desired profit at the predicted sales volume.

However, due to its relatively undifferentiated services, Cineplex needs to monitor what competitors are charging as well. General admissions range between 8 to 12 dollars. Most theaters offer senior and student discounts, and on Tuesdays tickets are reduced to around half price. Special theaters such as IMAX tend to more expensive. There is a lack of segmentation in pricing strategy which is reflective of the lack of service offerings. Promotion Cineplex only uses two channels of promotion: website and in-theater screening.

Despite having such a limited number of communication channels, Cineplex is effective in promoting to those that visit the theater and website. When people look for movie trailers and show times on the website, they are naturally induced to Cineplex’s advertising. Similarly, when people are waiting for their movie to start, they are inclined to watch Cineplex ads as well. The problem with the existing promotion is that reach is only limited to existing and previous customers. The forms of communication do not reach and attract new customers. Process

Movie theaters in general are considered people processing services, where customers are part of the service process. When a person arrives at a movie theater, they must cooperate in order to get the ticket and proceed to watch the movie. The resulting output of the service is a satisfied customer who enjoyed the movie. Movie theaters use to be considered a high contact service, however due to innovations in technology; customers are now able to bypass certain contact points such as ticket purchase before the movie. Currently, the service process is not always efficient as there are long waiting lines during peak hours.

Physical Environment Cineplex theaters are attractive and impressive from the outside. Their flashing lights and bright colors attract customers into the theaters where they are further amazing by the interior decoration relevant to current premieres. These tangible clues demonstrate the quality of the service at hand. People Cineplex employees are induced to intensive training and are well prepared for customer interactions. The only concern is that there is high turnover ratio in the cast member positions,who are at the frontline of the entertainment experience. Productivity and Quality

The generic dimensions used by customers to evaluate service productivity and quality are tangibles, reliability, responsiveness, assurance and empathy. There areas are relatively standard in movie theaters. Consumers’ expectations are met with easy access to the theaters, on-time shows, competent and courteous workers and clear audio and graphical display. There is a lack of differentiation factors in general movie theaters, including Cineplex. Appendix H: Flow Chart of Service Key Visible Action Core Product Invisible Action The Flow Chart portrays two key aspects of service delivery: time and degree of contact.

After they have chosen a movie and time slot, they proceed to the first point of direct contact with Cineplex’s service agent: the ticket counter (this might be replaced by electronic purchases through Bell Mobility, but for the purpose of illustrating the flow chart, it will be considered minimal to direct methods of payment). The degree of contact here is high as the service agent provides the means of ordering, billing, payment, and ticket production for customers. This can produce a long waiting time and hence waste customer’s time when purchasing a ticket for the movies.

To ameliorate the situation, Cineplex also has available automatic self-service ticket counters to make the process go by faster and efficiently. If the customer prefers the self-service ticket counter, the degree of contact is decreased considerably. After purchasing and receiving the movie ticket, the customer proceeds to the second point of contact: entering the entertainment area. This refers to the area of food and beverage counters and other entertainment sections, such as arcade games. This might also, in the case of some cinemas, to be where the ticket is asked by another service agent.

This point has a high degree of contact, where the customer interacts directly with Cineplex’s service agent. They also will be having direct contact/interaction with the concessions of food, which could be establishments such as New York Fries, Pizza Hut, TCBY, Tim Horton’s, etc. Therefore, the contact may not be exclusively with agents of the Cineplex brand, but with others as well. At this point, the customer has already gone through the two points of highest contact degree, but has not gone through the receiving of the core product of watching the movie at the theatre.

Now, the customer will enter the movie theatre (he could be asked for his ticket by another agent, at some of the firm’s theatres) and enjoy the service for which he paid for. At this point and thereafter, the degree of contact is null; there is only backstage operations, such as setting up to play the movie and the cleaning service prior/after they enter/leave the cinema. In conclusion, the highest degree of contact is done prior to the customer receiving Cineplex’s core product, movie theatre watching. During and after the customer watching the movie, they have minimal or none interaction with the cinema.

The main attraction of paying for watching a movie is the movie itself, which is a highly substitutable offering by competitors as well as movie rental or downloading at the comfort of home. Therefore, the time has come to consider attracting customers beyond the privileged of watching a movie they want to see. Cineplex, as an establishment, should increase its appeal beyond its core service through facilitating and enhancing services or it will run the risk of being replaced by other activities at the reach of the consumer. Appendix I: Financial Reports Appendix J: Porter’s 5 forces

Appendix K: SWOT Analysis |STRENGTHS |WEAKNESSES | |. Largest motion picture exhibitor in Canada & prominent market |. Consumers are not brand conscious | |position | | |. Variety/Special viewings |. No accommodation | |. Provides services for businesses |.

Popcorn Price on the Rise | |. Offering different modes of ordering and payment | | |. Enhanced CRM Solutions | | |. High revenues generated by high margins | | |OPPORTUNITIES |THREATS | |.

Meeting place and an entertainment destination for people |Risk of bad presentations | |. Scene Loyalty program- understanding of the demographics and |. Subject to Competitor responses | |movie going habits | | |. Diversification Portfolio |. Alternative choices of entertainment | |.

Implementation of new Technologies | | |. Concentration of partnership | | Appendix L: Service Blueprint , Key Front-Stage Core product Backstage Appendix M: VIP Cost Breakdown VIP Cost Breakdown 1. Cost of VIP infrastructure Property, plan and equipment$200 000 Construction$400 000 Other fees: contractor, material$100 000 Total$700 000 2. Additional Employees One employee annual expense$15 000

Number of employees15 Total$225 000 3. Restaurant Issuance cost Partnership Fees$35 000 Promotional Packages$25 000 Maintenance$35 000 Total $95 000 4. Capital Expenditure Bank Fees $35 000 Interest fee$25 000 Total $60 000 5. Advertising Cost Billboards$90 000 Website $5 000 Famous Magazine$15 000 External Advertising Fees$140 000 Total $250 000 Breakdown Summary Cost on VIP infrastructure$700 000 Additional employees$200 000 Restaurant Issuance cost$95 000 Capital Expenditure$60 000 Advertising Fees$250 000 [4]Total expenditure$1 305 000 References Ideaca (2006).

Cineplex Entertainment rolls out Microsoft Dynamics CRM from Ideaca Knowledge Services [Electronic Version]. Retrieved November 19, 2007, from http://www. ideaca. com/news/archive_news/nov_27_06. aspx Olivia Yu or Tina Gladstone (2005). Tap and Go’At Cineplex Entertainment Theatres with Master Card PAYPASS [Electronic Version]. Retrieved November 19, 2007, from http://www. mastercard. com/ca/company/en/press/2006/02_13_cineplex. html Cineplex Entertainment LP (2007). [Electronic Version] Retrieved November 20, 2007, from www. cineplex. com Cineplex Galaxy Cinemas (2007) Disclosure Plus Investor Relations. Electronic Version] retrieved November 20, 2007, from http://dplus. cineplexgalaxy. com/ Cineplex Galaxy Income fund; Initial Annual Information Form (2006) Investor Relations [Electronic Version, PDF] retrieved November 23, 2007, from http://dplus. cineplexgalaxy. com/content/objects/AIF%203%2027%202007%20FINAL. pdf . p 3-18, 55-58. Summerfield, P. (2005). Cineplex Galaxy- Famous Players merger creates one-stop shop for cinema ad buys. Retrieved November 23, 20077, from Media In Canada Web site: http://www. mediaincanada. com/articles/mic/20050616/cineplex. html Cinema Guzzo (1998).

Illegal actions by Cineplex Odeon and Famous Players towards the most important independent movie exhibitor in Quebec: Les Cinemas Guzzo. Retrieved November 23, 2007, from Cinema Guzzo Communique Web site: http://www. cinemasguzzo. com/html/en/cinema_guzzo/communiques_detail. php? id_nouvelle=24 Intel Viiv and AMD Live. (2007). Intel and AMD Jump on the Set-Top Console Market. Retrieved November 24, 2007 from Home Theatre Focus Web site: http://www. hometheaterfocus. com/components/intel-viiv. aspx Mello Jr, J. P. (2007). Studios, Theater Owners Drive Digital Distribution.

Retrieved November 24, 2007, from E-Commerce Times Web site: http://www. ecommercetimes. com/story/56127. html Burger, A. K. (2007). At the Movies: Digital Delivery Takes Off, Part 1. Retrieved November 24, 2007, from Tech News World Web site: http://www. technewsworld. com/story/57489. html Burger, A. K. (2007). At the Movies: Digital Delivery Takes Off, Part 2. Retrieved November 24, 2007, from Tech News World Web site: http://www. technewsworld. com/story/57557. html Wikipedia. (2007). Stereoscopy. Retrieved November 21, 2007, from Wikepedia Web site: http://en. wikipedia. org/wiki/Stereoscopy

Access IT. (2007). Access IT and Services for Digital Cinema. Retrieved November 20, 2007, from Access IT Web site: http://www. accessitx. com/ McNulty, M. (2007). Warner Bros. Entertainment, Universal Pictures and Digital Cinema Implementation Partners to Form New Digital Cinema Distribution Venture. Retrieved November 19, 2007, from Times Warner Web site: http://www. timewarner. com/corp/newsroom/pr/0,20812,1596955,00. html [? ] http://www. mediaincanada. com/articles/mic/20050616/cineplex. html [? ] though this was thwarted by the competition bureau in 1998 after a challenge by Guzzo cinemas http://www. inemasguzzo. com/html/en/cinema_guzzo/communiques_detail. php? id_nouvelle=24 [? ] http://www. hometheaterfocus. com/components/intel-viiv. aspx [? ] http://www. hometheaterfocus. com/components/intel-viiv. aspx [? ] http://www. ecommercetimes. com/story/56127. html [? ] ???http://www. technewsworld. com/story/57557. html [? ] ???http://www. technewsworld. com/story/57489. html [? ] http://www. technewsworld. com/story/57557. html [? ] http://www. timewarner. com/corp/newsroom/pr/0,20812,1596955,00. html [? ] http://dplus. cineplexgalaxy. com/section. cfm? section_id=55 ———————– 1] Those who offer nearly identical service products under different brands (AMC, Empire, Guzzo, etc. ) [2] Those who offer the same fundamental service product in a different format (Blockbuster, Rogers Video, Digital Cable on demand, iTunes Video store, Netflix, TiVo, many legal and illegal on-line downloading/ streaming options, home theatre companies, HP DVDs, Intel’s ‘Viiv’) [3] Category competitors – [4] These calculation are based on an approximation ———————– ———————– Anoochka Gokhool – 260189700 Heather Kaptein ‘ 260133975 Theresa Kim ‘ 260188472

Alice Lin – 260166583 Teresita Salamero ‘ 260171805 Yana Yuan – 260178220 Purchasing movie ticket Entry to entertainment area Watching movie Purchasing food and beverages Entry to movie theatre Exit the movie theatre Purchase rights to play movie Arrange movie schedule Set-up theatre for movie Concession agreements with food chains Prepare food and beverages Clean-up after a show Set-up theatre for next movie if applicable Salute Feedbacks Return Car, Bid Customer Clean-up after a show Greet, Check reservation If not done previously Maintain Facilities/ Equipment Verify Satisfaction

Maintain Order, Billing Records Maintain clean, Restroom supplies Exit the movie theatre Seating Ticket Counter VIP Room Valet Parking Make a reservation by phone W W Greet, Take orders Place Order with Kitchen Pick up Food, Deliver Food toTable Prepare menu copies, Maintain seating plan Escort guest to table, Help seat, Offer menus Verify reservation, Pick up menus Maintain Facilities Greet Customers, Take Car Keys Take Car to Packing Lot Check availability Insert booking Capacity Customer Record Orders and Billing Inventory/purchase W W F Prep room requirements and staffing F F F F F F F F F F

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