Exploration: Situation Analysis

Hi Class,

This campaign will be a little different because it is for the whole industry and not just one company. I might want to scale back later and focus on one company but for now I am looking at the industry as a whole. The public opinion seems to be pretty low right now. The big concern currently is skyrocketing prices, both for tickets and concessions. There also appears to be little disconnecting in the audiences mind between the movie theater industry and Hollywood. With the way we watch movies at home now it is more important for theaters to provide a service that entices the audience out of their homes.

                With most theater charging over $10 per ticket and at least that much for popcorn and a drink, it becomes a pricey date fast and even worse for a family. When you take into consideration the turnaround time for that same movie to be available for $15.99 on DVD is getting to be right around three months or less, the price doesn’t seem worth it. The customer service has gone downhill too. The ticket and concession lines are long and slow, the cahiers are listless and apathetic, and the fellow movie goer is becoming less considerate. It has gotten to the point where we get at least three cell phone reminders and still hear a phone ringing half way through a movie. Why put up with that when you have a 70 in High definition TV in your living room and the latest Blu-Ray for less than two admission tickets.

                The connection between movie theaters and Hollywood is pretty tight. This is another area where the theater companies might want to re-image. When Hollywood is in a lull and putting out films that aren’t interesting the public theaters suffer. This would be a good time to diversify entertainment options. Many theaters do have some live shows and closed circuit events, but the advertisement is shoddy and rarely reaches the right market. Movie marketing is huge and most big budget films create buzz through many outlets: trailers, actor interviews, web sites, magazines and the list goes on. Theaters need to vary their advertising as well, and promote the theater not the movie.

                With some re imaging and some slight re-structuring of the antiquated business model the theater industry can put the audience back in their seats.