SERVICES MARKETING :-

6/05/2013 (Monday)

Acknowledgement

Letter of Acknowledgement 6th May 2013 It has been a pleasure to be Mr. Elia QazalBaksh's student. I would like to thank him for giving us the chance to apply the theories of Service Marketing in the real world . His lectures have been very interesting and motivating . I extremely am grateful to him and appreciate his efforts for providing us full support , encouragement and valuable guidance . Sincere regards , M.Azeem Saleem Nini (1235150)

EXECUTIVE SUMMARY :Since we bring in a fairly new concept, our first priority will be to gain as much as possible Market Share. We will keep our profit as the secondary priority throughout the first two years. Since our calculation of

profit / customer is fairly less, we would be focusing on more number of customers rather than more profit. Depending upon the response and feedback of our customers during the first two years, we will take into consideration about expanding our cinema. Expanding could be in terms of increasing number of halls in the current location or setting up a new cinema either in Karachi or outside.

Mission Statement To provide a healthy entertainment with a sense of privacy can be enjoyed by both family and friends with the use of latest and modern technologies

Number of halls

Location

Com..petitive advantage

Price Range(Rs)

Current Market Situation Cinemas are nothing new to the Asian Market. The cinema media market in Pakistan were at a low pace at the time of the tensions between Pak Indo Relations but since the relations between both the countries have stabled, the market for the cinema industry has grown rapidly. Currently Karachi, the metropolitan city of Pakistan, consists of well established Cinemas such as Cineplex, Capri and Nishat Cinema. Marketing Description

Nishat

M.A Jinnah Road

Being the Oldest Cinema of Karachi it attracts the highest number of people of the area due to its high comfort at normal price No such competitive advantage Targeting only Middle and upper class, catering to only families and couples Having largest number of seats among its competitors ,Atrium can seat about 700 people at a time and has high probability of available seats even at the last moment

100-250

Capri

M.A Jinnah Road Defence, Seaview

80-210

IMAX 3D target market consists of people who still have love and taste for the concept of 3d-cinema, may be they of old or young age group. Considering this not an ordinary cinema, its a new innovation-3d cinema that holds your breath till the last moments of a movie and grabs audiences attention at every scene. Also taking into consideration the security situation in the city IMAX 3D offers its target market high sense of privacy and privacy letting them enjoy the movies at full extent.

Product Review
300-450 IMAXS digital projection system combines the power of two modified projectors that incorporates IMAXS image enhancer to deliver crystal-clear image. The IMAX screen is larger than convential movie screen and is slightly curved to position the audience closer to the action and maximize your field of view. IMAX screens in the theatres designed for a multiplex setting range in size from 47*24 to 76*46. Proper ventilation will also be installed so that there is no lack of comfort in the cabins

Universe Cineplex

Atrium 3Dcinema

Saddars Atrium Mall

Rs300 -400 Rs500 and Rs150 for the eyeglasses

SWOT Analysis

Strengths: Equipped with latest and highly update technology

High level of privacy and comfort will be provided through cabins Moderate prices and high quality Ideally located geographically High Security with security cameras

Weaknesses: Unable to entertain individual customers Limited number of seats in a cabin can discourage larger groups Targeting certain class of customers

Opportunities: Increasing number of cinema halls Opening up chain of cinemas Temperature controller in each screen hall. Showing live Matches like; (FIFA World Cup & Cricket)

Threats: Pak-indo relation may cause ban on bollywood movies lack of hit films Big events like; (FIFA World Cup & Recently Cricket World cup 2011). Action Program IMAX 3D Will be launched in the month of June because from June to August is a summer vacations period and in this periods every schools and colleges are close so we can grab audience towards us and can easily generates higher profits in this period by arranging animated and action thrilling films as well as sci-fi and science fictions movies for the teenagers and this will also act as an advertising strategy. The following are some actions that we will take in order to increase our sales and reach the desired goal:

June- July: Since these will be summer holidays season we will try to show animated and kids movies as well. Attracting the major number of children as possible August September: Since the august will be holy month of RAMADAN, it will be reserved exclusively for private shows and religious movies/Islamic Budget In the first year we would spend huge amount of money on our cinema since in the introduction stage investment is always huge. After a couple of years by 2015 when we achieve a stable position in the market then we will strive for innovative ideas and extend our product line. Therefore our budget in the initial years would be comparatively greater than later years Controls We are planning tight control measures to closely monitor the quality of our cinema and the customer satisfaction. This will enable us to react quickly in correcting any problem that may occur. We will be doing research and feedback programs on monthly basis to find out the problems that are arising. Monthly sales and monthly expenses will also be monitored closely in order to keep an eye on the annual revenue. We will be developing our cinema technology from time to time in order to stay ahead of our competitors and to keep the right positioning of our service.

Companys decision making and strategy emphasize on building a product line. IMAX 3D is an entertainment concept of our company and it lies in entertainment product line. Our company can extend its product line by presenting new entertainment products or by bringing variety in IMAX 3D

Product Mix Decisions Several product lines of a company constitute to form a product mix. Our company is yet to formulate its product mix. But we can do it by introducing new product lines other than entertainment.

IMAX 3D as a specialty product IMAX 3D is a specialty product because of its strong brand and innovative concept. And it targets a specific segment of market using target promotion and exclusive distribution. It also has high prices due to market skimming pricing strategy.

Strong Brand:-

Brand Positioning of IMAX 3D

IMAX 3D will position its brand at the highest level in customers minds by emphasizing on product attributes and its benefits. IMAX 3D would also go beyond that by talking about beliefs and values. But the overall objective will be to place IMAX 3D at the desired position.

Brand Name Selection; IMAX 3D

IMAX 3D is a unique name correctly representing the uniqueness of the product. IMAX refers to Cinema and 3D represents the visual effects which you can have. The whole name describes the idea of the company to provide its customer with a freedom to watch without any restrictions.

Brand Sponsorship
IMAX 3D is a manufacturers brand as it is created, distributed and promoted under same entity.

Brand Development
IMAX 3D is a new brand as it lies in the new products category and having a new brand name. Pricing Strategy:

Market Penetration Pricing:

The reason for choosing Market Penetration Pricing Strategy is that this strategy guides us to attract customers from the competitors by keeping fairly low prices. This strategy shows to use competitive pricing in order to gain a customer line from our main and other competitors. It would not be wise to set up a high initial price for our Cinema as the market already consists of wellestablished competitors. Our pricing is based on market penetration since we need to pierce in the current market and build up a reputation for our own Cinema. After building up a market of our own, the pricing strategy would change accordingly. acting the major number of children as possible August September: Since the august will be holy month of RAMADAN, it will be reserved exclusively for private shows and religious movies/Islamic Budget

In the first year we would spend huge amount of money on our cinema since in the introduction stage investment is always huge. After a couple of years by 2013 when we achieve a stable position in the market then we will strive for innovative ideas and extend our product line. Therefore our budget in the initial years would be comparatively greater than later years Controls We are planning tight control measures to closely monitor the quality of our cinema and the customer satisfaction. This will enable us to react quickly in correcting any problem that may occur. We will be doing research and feedback programs on monthly basis to find out the problems that are arising. Monthly sales and monthly expenses will also be monitored closely in order to keep an eye on the annual revenue. We will be developing our cinema technology from time to time in order to stay ahead of our competitors and to keep the right positioning of our service. Macro Environment Technological Environment: IMAX is a motion picture film format that has the capacity to record and display images of far greater size and resolution than most conventional film systems. Our cinemas will be based on latest technology so we have to be aware of latest technologies and get updated on regular intervals Political Environment Since the movies will be bought from USA/DUBAI, the government relation with those countries plays a major role. Also the recent Pak-India relations have allowed Indian movies to be displayed in Pakistan

Economic Environment Changes in the economic variables such as income, interest rates, booms and recessions have a huge impact on the buying and spending patterns of the consumers. Productivity of a business tends to fall in recession and it also affects the cinema industry as not many people will be willing to spend their money on theater tickets. Bootlegged DVDs also prevents people

from going to cinemas, as a movie ticket costs about 200-300 bucks and people can get the same movie on a bootleg DVD which cost much less as compared to a cinema ticket.

Micro Environment: Company The organizational setup of IMAX 3D is rather simple. The three founders of the cinema will be in charge of making all major management decisions in addition to monitoring all other business activities. All departmental functions such as accounting and payroll will be divided among the founders according to their qualifications. Suppliers The Management of IMAX 3D will work with a series of suppliers to get the equipment necessary to carry out the business activities. The projection screens will be imported from an England based company UK CINEMA SCREENS. Our state of the art Cabins will be designed by GREY

STONE SEATINGS. IMAX 3D will purchase Film Prints from major U.S and Indian Disistributors such as Anchor Bay Entertainment, Columbia Pictures, Lions Gate Entertainment, United Artists, Eros Entertainment, UTV Motion Pictures etc.
Competitors IMAX 3D would be operating in a very competitive environment. Karachi consists of a chain of traditional cinemas such as Capri, Nishat, Prince, Cineplex plus a new generation of cinema which is Atrium 3D cinema Publics A Public is any group that has an actual or potential interest in or impact or an organizations ability to achieve its objectives.

Financial Public
Financial public influences the companys ability to obtain funds. IMAX 3D would be taking financial assistance from Hong Kong and Shanghai Banking Corporation (HSBC). Media public: IMAX 3D will also effectively use Media publics such as newspapers, magazines, radio and television stations. Customers IMAX 3D would be mainly catering the consumer market. Its main customers would consist of young people willing to enjoy a good movie in a comfortable environment. The Promotion Mix Non-personal communication channels will be mostly used. These may include print media, broadcast media and display. Thus, the marketing campaign of C-Mix can be summarized as follows: Print media Newspapers like dawn will print out our ads and Billboard will be placed among the busiest streets of Karachi like Shah-re-Faisal, Karsaz, and 3 Talwar etc Social Group: For Promotion and Brand awareness .We will create groups on Face book, and Orkut. Brand Awareness at Universities and Shopping Malls: Our representatives will be allotted in universities and Shopping Centers Promoting our brand and creating awareness in the minds of potential customers Loyalty Cards: We will offer loyalty cards to executive employees and high profile customers so they can avail discount at every visit at our cinema. This will cause an attraction to those customers making them visit our cinema more frequently Online Media: Our website will give detail information current and upcoming movie schedules. The facility of online ticket booking will also be provided

BUYERS BLACK BOX: Culture Pakistani cultures promotes cinema to a great extent just like it promotes other forms of performing arts. In the early 60s and 70s cinema was a major source of entertainment. The 60S decade is often cited as the golden age of the Pakistani Cinema. This era produced many legends such as WAHEED MuraD, ,Zeba, Nadeem and many others, these people not only played an important role in making cinema a permanent part of the Pakistani culture but they also have a great influence on the Pakistani nation. Subculture Each culture contains smaller sub cultures. Pakistan consists of four provinces Sindh, Baluchistan, N.W.F.P and Punjab and these geographic divisions have their unique norms, rituals and values which make up a sub-culture. The four provinces differ in terms of films and other forms of arts and create important market segments. Social Class: Social classes are society's ordered divisions which are based on income, education, wealth, occupation etc. IMAX 3Ds targeted social class would be middle and upper class. Personality A persons personality also influences his or her buying behaviour.Most of the movie lovers favor theaters that offers comfort and privacy. Thus to attract such customers IMAX 3D will create an environment where people can enjoy a good movie by having some privacy.

Buying Decision Process

Since the concept of IMAX 3D is a bit different from other traditional cinemas the behavior of the people towards IMAX 3D would consist of the following steps

Awareness:

In this stage the individual will become aware of the product. Interest: In this stage the individual will seek information about the product by making use of newspapers and other media channels. Evaluation: In this stage the individual considers whether trying the new product makes sense and he will evaluate our product by comparing our attributes with competitors, if satisfied he will proceed otherwise he will back out. Trail: In this sage the individual might watch a single show at IMAX 3D to experience the difference that IMAX 3D offers. Adaption In this stage the consumer might start making regular visits to the theatre experiences with a lot of innovation. We always realize that customers are buying much more than just products and services. IMAX 3D target market consists of people who still have love and taste for the concept of 3d-cinema, may be they of old or young age group. Considering this not an ordinary cinema, its a new innovation3d cinema that holds your breath till the last moments of a movie and grabs audiences attention at every scene. Also taking into consideration the security situation in the city IMAX 3D offers its target market high sense of privacy and privacy letting them enjoy the movies at full extent.

Conclusions
IMAX 3D comes under the broader definition of product. But it is a wholesome of experience which one can get for his entertainment. Experiences have always been important in entertainment industry. IMAX 3D is providing entertainment experiences with a lot of innovation. We always realize that customers are buying much more than just products and services. IMAX 3D target market consists of people who still have love and taste for the concept of 3d-cinema, may be they of old or young age group. Considering this not an ordinary cinema, its a new innovation3d cinema that holds your breath till the last moments of a movie and grabs audiences attention at every scene. Also taking into consideration the security situation in the city IMAX 3D offers its target market high sense of privacy and privacy letting them enjoy the movies at full extent.