The REAL IMAX Theatre

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

2. Outline • Objectives • SWOT Analysis • Internal • Strengths • Weaknesses • External • Opportunities • Threats • 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 • 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

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

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

24. Product: Means End Chain

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

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

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.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