Brooks Drive in Cinema
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Transcript of Brooks Drive in Cinema
Vision Statement
To become best and largest drive-in cinema of Pakistan. We play new produced and
contemporary plays and movies, to connect and stimulate people in the many
communities, primarily in Karachi. We recognize this is both an arrogant and humbling
intention. We find balance in the positive value of human connection - the interaction of
mind, imagination, and spirit. We believe the art of cinema invites a partnership between
the performance and the audience. We believe the event of cinema exists only in sharing
imagery through that communion, during the time of that performance. As such, we
believe that cinema is both a community event and a way to build community.
Mission Statement
“To inspire, inform and entertain through the universal language of cinema arts and to
serve as a cultural and educational resource for all. To make people feel watching movies
as an Indulging experience by providing them state-of-the-art technology and a
comfortable and secured environment, that is, they feel that they are living them rather
than just watching it.”
Values
Pakistan is an Islamic country and its citizens are religious and cultural, so we have to
take into account all the ethical, cultural, religious and moral values.
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Introduction
Brooks Drive In Cinema is a Drive-In Theatre, which can be classified as an
opportunity seeker for investors, service provider for the customers as well as at the same
time a profit generator type of business.
The drive-in theatre is a form of cinema structure consisting of a large screen, a
projection booth, a concession stand and a large parking area for automobiles.
The First Drive-In Theater was invented by Richard M. Hollingshead in 1932 at the
backyard of his house. The response that came was excellent and within 4-5 years dozens
of drive-in theatres were opened in other parts of the World. (See Appendix I for the
history chart of Drive-in cinema.)
In the past, there were 3 Drive-In Theatres in Karachi, all of them located at Rashid
Minhas Road near Gulistan-e-Johar. But they were all closed down in early 90s due to
various reasons:
Our society by enlarge never accepted Cinema as in art form.
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For various cultural, social reasons, everyone in our country loved the artists but
never accepted them as part of our society.
In the past, there were no other form of visuals like Television, Video Cassette
Recorder, Stereo Systems, DVD and VCD players etc.
Use of banned pirated movies of Bollywood was easily available for viewers.
After 1990, various senior directors and producers who had good script and strong
storyline either died or retired and they did not trained their juniors.
Good quality movies like Bandish, Armaan, Aaina, Insaaniyat, Anari, Andaleeb,
etc were no where to be seen.
Plagiarized movies were the new trend in Lollywood.
Loose storyline, pathetic acting, lack of technology, and vulgarity in Pakistani
movies brought the downfall of Lollywood and hence cinema goers.
Drive-In Theatre in Karachi was never a failure, in fact the climate of Karachi was ideal
for Drive-In Cinema, it was just that new movies were not being produced and
meanwhile the value of these properties had been increasing. Therefore, Cinema owners
started selling out their Cinemas and today we see Millennium Mall, and other projects at
the site where Drive-In Theatres once existed.
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Company Summary
The Brooks drive-in cinema, a movie house with two screens and a capacity of 400, is
located in defence phase 8 near Cineplex, Karachi. Brooks’s drive-in cinema, population
12,000, has been without a local movie theatre/cinema since 1992 when the old drive-in
cinema, closed down due to some reasons and the lack of an interested successor.
Company Ownership
The Brooks drive-in cinema will begin operations as a sole proprietorship, owned and
operated by its two founders: Kanwal and Erum.
Start-up Summary
Erum and Kanwal will be the main investors and operators of the Brooks drive-in
cinema. Erum has been managing a Cineplex theatre for the past seven years, gaining
valuable experience while she looked for an opportunity to run her own theatre. Kanwal
has been working part-time as a contractor in the local community.
The ground where the theatre will be housed has been vacant, except for the occasional
rental to a community group, since the closing of the former business.
Services
The cinema's management will be aided in movie selection by being able to see how
movies have fared in their initial run, especially those that have shown success in the
theatre's two target markets: families and young adults. With cinema in which to show
movies, both markets can be targeted at the same time with minimal cannibalization.
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A variety of quality, reasonably priced snack items and beverages will keep customers
satisfied during their movie experience. The founders understand that the entire
experience can be jeopardized by poor customer service and will seek to hire only the
most customer service oriented personnel.
Market Analysis Summary
The Brooks drive-in cinema is located in DHA Phase 8, Karachi. The local business
community has shown great support for a cinema since it would keep residents, and their
spending, in the community instead of one of the surrounding communities. A typical
family can expect to save approximately Rs.48 for a night out at the movies by coming to
a local cinema. This savings, along with quality movie selection, should keep people
coming back regularly.
Market Segmentation
Families - this segment focuses on adults and parents with younger children who
don't need to see the latest movies on release and seek an inexpensive, quality,
family-oriented entertainment experience.
Young adults - this segment is comprised of the 16-24 year old age group. This
group is interested in seeing comedy and action/adventure type movies that are
not directed at the younger and family markets.
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Service Business Analysis
The Karachi has been in need of a local drive-in movie house since the closure of its only
drive-in cinema eleven years ago. With the closest movie complex located 5 miles away,
movie goers options are limited - either a round trip drive of over 90 miles or in home
rentals. For people who enjoy the big screen, neither offers a satisfying experience. The
Brooks drive-in cinema can satisfy those needs with quality movies in a comfortable, old-
style movie cinema.
Competition and Buying Patterns
Competition for movie theatres comes in a number of different forms. In general you can
describe the indirect competition as any entertainment alternative in the local area.
Competition comes from the local skate park, pool hall and various restaurants.
Restaurants also present a potential complimentary offering that we might exploit later
through strategic alliances. As mention before, the direct competitor is the movie theater
located 45 miles from Brooks drive-in cinema.
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Target Market Segment Strategy
These two market segments, families and young adults, are targeted specifically because
they comprise the two largest segments of Karachi’s population. The Brooks drive-in
cinema is determined to be a community-oriented business and seeks to serve as much of
the population as possible. With a small college in town, there is an ample student
market, consumers who often have limited transportation options.
Strategy and Implementation Summary
The strategy is simple: provide fair-priced, quality entertainment away from crowded
places where security issues can be resolved easily for the population of Karachi.
Competitive Edge
Brooks drive-in cinema has a distinct competitive edge in that it is the only drive-in
cinema in Karachi. Competition will come mainly from several Cineplex theatres located
in Phase 8.
To ensure that Karachi residents are pleased with the products offered, the theatre will
rely on the expertise of Erum, who has seven years of successful theatre management
experience. Since she began managing the theatre in Karachi ticket sales have grown at a
consistent 4% annually. This is in part due to her skills in movie selection and her
emphasis on customer service. Once the theatre is up and running, her time will be
devoted to movie selection, staff hiring and supervision, theatre marketing, and ordering
for the snack bar.
Erum has also developed strong relationships with several movie booking agents serving
the area and has already negotiated an agreement. The agreement has the booking agents
collecting 60% of the first year's admission revenues. Each year after that the percentage
will be reduced by 1.5% through year 5 when it stabilizes at 54%.
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Kanwal has strong construction skills and is considered a craftsman by his peers. Initially
her talents will be used to restore the theatre from its current state of slight disrepair into
the theater’s main attraction for evening entertainment. Once the restoration is complete,
Kanwal will transition into a part-time role, maintaining the facility and equipment,
working the counter and ticket booth, and eventually, ordering concession items.
Marketing Strategy
Karachi is a big city that requires a lot of marketing campaigning. We anticipate that a
buzz will be created once the campaigning begins. Excitement will build as the grand
opening approaches. To encourage that excitement, we will have a countdown to opening
on the building's marquee. Concurrently, advertisements in both the local newspaper and
the college's daily will promote the opening with coupons for free items from the snack
bar. Since a large share of profits will come from concessions, we want to let people
know about our tasty snacks. Finally, we will use our website to keep our customers,
especially the more web salve college students, updated on the movie selection, which
will change every two weeks.
Sales Strategy
The Brooks drive-in cinema will appeal to two segments of the market:
Adults and parents with children who seek local, fair-priced evening
entertainment aimed at the whole family.
Young adults who are interested in seeing recent releases but are constrained by
an inability or unwillingness to travel.
The main sales strategy is to provide recent successful movie releases that appeal to both
audiences. With the premises for drive-in cinema, we will be able to target both segments
simultaneously.
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Sales Forecast
Sales will increase among both target segments as word spreads around town and to the
surrounding communities. The increase in concession sales reflects the increased
attendance. Concession sales are based on an average of Rs.250 spent per ticket purchase.
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Sales Forecast
Year 1 Year 2 Year 3
Sales
Family movies Rs.86,661 Rs.129,992 Rs.194,988
Young adult movies Rs.30,331 Rs.45,497 Rs.68,246
Concessions Rs.70,196 Rs.105,293 Rs.157,940
Total Sales Rs.187,188 Rs.280,782 Rs.421,173
Direct Cost of Sales Year 1 Year 2 Year 3
Movies Rs.70,196 Rs.105,293 Rs.157,940
Concessions Rs.21,059 Rs.31,588 Rs.47,382
Subtotal Direct Cost of
SalesRs.91,254 Rs.136,881 Rs.205,322
Web Plan Summary
The website will be very simple. Its main purpose is to communicate to our customers
what movies are showing at what times with links to each movie's website and reviews.
The design will feature an image of the theatre along with a list of current movies and
those that are coming soon and will be small enough to quickly load on most home
computers. Since the movies will change every other week, maintenance should be fairly
straight-forward. Arrangements have been made with both the local and college
newspapers for links to our web site from theirs.
Website Marketing Strategy
The website address will be printed on tickets and it will be prominently placed on
advertisements that we will run in the local paper.
Development Requirements
Development requirements are minimal, since the site will only be a few pages. The site
will be built by a local website development firm. Once it has been created, the founders
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will be responsible for updating it with the latest movie listing each week. It is expected
that this will take no longer than 1 -2 hours each week.
Management Summary
Erum's experience in theatre operations and management will be invaluable, she will
manage the key tasks that represent the theatre once it's up and running: film selection,
marketing, and personnel. She will also initially take care of the selection and ordering of
all the theatre's supplies, including the concessions. Kanwal will eventually take over this
role, once Erum has established the relationships and things have settled down somewhat.
Kanwal's main responsibility will be to manage and execute the theatre's restoration.
Once that task is complete and the theatre is open for business, Kanwal will manage the
maintenance of the building and work part-time in customer service (selling
concessions) and ordering.
Financial Plan
The following sections outline the financial analysis for Brook’s drive-in cinema.
Important Assumptions
The following shows the important General Assumptions for Brook’s drive-in cinema.
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
Break-even Analysis
The following Break-even Analysis shows the monthly break-even point.
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Break-even Analysis
Monthly Revenue Break-even Rs.23,7580
Assumptions:
Average Percent Variable Cost 49%
Estimated Monthly Fixed Cost Rs.12,1760
External Analysis
PEST/EL ANALYSIS:
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Political
Can have political pressure to promote their parties by running their adds in
interval.
Have got political instability and have culture of suicide bombing which may lead
to security risks or threats.
Economical:
Investors may not provide loan because investors don’t intend to invest in such
ventures.
Have to see that property is owned or rented because if rented bank will not give
loan due to liability.
Social:
Unacceptability from people because of social structure.
Will not allow tinted cars due to family environment.
Have to see which movie is for which age group and according to that have to
make arrangements.
Can be affected by day to day changing situations.
Technological:
Such a system and technology will cost a lot.
Will to have find engineers and software engineers to for support.
Ecological:
In summers we cannot show movies from 12-3 due to hot weather.
Have to follow weather forecast before setting the shows because in rain cannot
manage the shows.
Legal:
The issuance of license and other legal formalities can create issues.
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Positioning:
When we talk about Creek-Inn, we are talk about an experience which is larger than life.
We want our customers to live the movies rather than watch them as they already have
been in other cinemas. Creek-Inn is the place which would provide a different experience
and give value to its customers for each paisa paid.
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Internal Analysis
SWOT Analysis:
Strengths:
Privacy.
State of the art technology
Quality of service
Quality of infrastructure
Equipments.
No distractions.
Quality food.
Lack of entertaining options in our city.
No direct competition.
Pleasant and calm environment away from the city centre.
Nice, cool sea breeze helps in forgetting all the tensions of a busy life.
Weaknesses:
Already created image of drive in cinema in the minds of people.
People not ready to try something new
Cinemas are termed as not very decent places to hangout.
Opportunities:
People of this city are more outdoor-oriented.
Lack of entertaining outlets for people of Karachi.
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Threats:
Religious issues , as Hollywood and Bollywood movies would be
premiered
Already existing cinemas or upcoming cinemas.
Security issues
MARKET OPPORTUNITY ANALYSIS:
Drive-In cinema in Karachi
Family and Adults
First drive-in cinema is present in Pakistan
Assess the Company’s Resources to Deliver the Offering
Assess Market Readiness of Technology
Specify Opportunity in Concrete Terms
Assess Opportunity Attractiveness
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PORTER 5 FORCES MODEL:
1. Suppliers:
There are other cinemas currently operating in Karachi among which Cineplex has
been leading due to better quality. Other than that, cinemas like Capri and Prince have
been operating as well. Of all the current suppliers in Karachi, none have been
operating a drive-inn cinema.
2. Buyers:
4 NEW ENTRANTS
2 BUYERS
1 SUPPLIERS
3 SUBSTITUTES
5 INDUSRTY COMPETITORS
INTENSITY OF RIVALRY
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Film lovers are in abundance in Karachi, so who wouldn’t want an environment that
Creek drive-inn would provide them to watch their favorite movies. Customers in
Karachi do not have competing offers from other cinemas as there is no other drive-inn
cinema in operation in Karachi.
3. Substitutes:
There are no substitutes to the drive-inn cinema in Karachi.
4. New Entrants:
Threat of new entrants would always be there for Creek drive-inn. As it is a re-launch
of an old idea at the right time, other business entities would seek to seize an
opportunity to get their share of the market. It is an era of innovation, survival of the
fittest, drive-inn cinemas in Karachi is the “next big thing”.
5. Industry Competitors:
Cineplex is the leading cinema in Karachi with other cinemas also competing. For
other cinemas, the challenge is to survive rather than compete with Cineplex.
However, with Indian movies on the big screens, there is a hope for the industry to
survive.
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Marketing Objective
The main marketing objective is make the people of Karachi realize that a secured,
healthy environment and an economical entertainment facility have been launched in the
city. Therefore, we will have to promote our product accordingly, which will be done
through extensive amount of Advertising, Sales Promotion and Publicity.
We are planning to use TV ads, billboards, radio advertising, brochures, e-brochures,
print media (through newspapers and movie magazines) and if possible blobs as well. We
will have to allocate our budget accordingly because Television marketing is very
expensive and we have limited finances available. The expenses in our first year will be
relatively high but we hope to achieve our target in coming years through good customer
service and finances from other sources.
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Marketing Mix
Product:
Brooks Drive-In Cinema’s mission is to excel in providing the best cinematic experience
together with pleasant sea side weather at a secured and prime environment. We want to
make our customer feel as if he is not living in this World; in fact he lives in a fantasy
where he can do whatever he likes to do( like it happens in movies, where the hero could
do anything).
On the other hand, he can also enjoy good quality food in our healthy food court, where
he will find all the major brands like KFC, McDonald’s, Pizza Hut, Coca Cola etc. To
ensure that any kind of misbehavior does not happen, we only allow families and couples.
We also provide privacy for our customers as there is at least 10 feet gap between each
parking slot. We even have 2 push carts, which will provide food, popcorn and soft drink
to customers who do not wish about coming out of the car. We have a local radio
frequency installed so that anyone who does not like open air and wants to enjoy with his
air-conditioner can tune the sound through his car stereo player.
We are aiming at providing the best sound and video quality that anyone could have ever
imagined. For this reason, we are using state-of-the-art equipment, which is brand new
and latest in technology.
We have a capacity to accommodate around 250-300 cars during one show, and the food
court has a seating capacity of around 100 people.
Price:
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The price of the ticket will be determined on the basis of the amount of all the
expenditures incurred by the company and its initial investment like infrastructure,
equipment and land cost. Our main aim in the first financial year will be to cover up at
least our sunk cost and installment of land that has been taken on lease from the
government. Any further profit will be readily welcomed.
We also want to determine a price which is affordable and economical for people. This is
because our competitor (Cineplex) charges relatively high as compared to the services it
provides. Therefore, we will be determining price that will be either equal to our
competitor’s price or will be lower than that. For the first 6 months, we will also carry out
a sales promotion campaign.
We will also earn revenue through the stalls that will be taken by the brands in our food
court. We will earn that revenue in the form of rent.
Besides all that, we have ample space for promotions of other brands in the form of
Billboards, tiles, walls and ample area of food court. We expect to earn a relatively high
amount of revenue through them.
Ticket Price: Rs. 250/= each
Promotions:
Promoting the product is the most important objective of our marketing plan. As stated
before, we will be targeting the A1, A2 and B class audiences mostly. Therefore, we will
have to use advertising, sales promotion and publicity.
TV Ads: TV ads will be televised on GEO TV for a month. Before the opening, a teaser
will be shown for 15 days, and then the promotional ad will be aired for further 15 days.
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We selected GEO TV because it is the most watched channel of Karachi and urban
population prefer it over PTV, whom we expect as our prospective customers. The
response from customers will devise the upcoming decision of airing ad on TV.
Billboards: At least 2 billboards will be booked of about sizes 60 x 90 feet through
Waqas Advertising at Karsaz and 2 at Shahra-e-Faisal in front of FTC Building and the
other in front of Regent Plaza of about 40 x 80 feet through A and A Advertising.
Radio:
Hum FM 106.2: Mostly famous for Indian songs, in order to attract Bollywood Lovers.
Time Checks
Time Allowed 10.00 am to 4.00 am Charged (Time check )
Rate Rs.35,000/-per minute
4.00 am to 10.00 am Free
Minimum Commitment Quarterly
Advertisement Max 15 secs
Frequency Hourly
Radio 1 FM 91: This channel is famous for English songs so we will be targeting
Hollywood Movie lovers.
Intervals
6 Months
Advertisement Max 1 minute
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Time 8.00 pm to 2.00 pm
Rate Rs 43,000/- per minute
Time 2.00 pm to 8.00 pm
Rate Rs 30,000/- per minute
City FM 89: This channel is famous for English listeners and therefore we will target
them for Hollywood movies.
Time Checks
Time Allowed 6.00 am to 2.00 am Charged (Time check)
Rate Rs. 46,000/-per minute
2.00 am to 6.00 am Free
Minimum Commitment Quarterly
Advertisement Max 15 secs
Frequency Hourly
Print Media:
DAWN: Most prestigious and one of the oldest newspapers of South Asia, for targeting
the A1,A2, and B class customers. The back page will be selected for advertising and
accordingly 15 days before a teaser will be shown, followed by an ad for around 3
months.
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Sales Promotion:
Bucket of popcorn and 1 large Pepsi.
Memberships Passes of 200 will be discounted to Rs.100, 30% discount on food items.
Annual subscription Rs.1000 Membership form Rs.5000
Place:
Location: The Brooks Drive-In Cinema is located at the prime location of Phase VIII
(ext.) jus adjacent to Creek In and in front of DHA Golf Club. This is an ideal location
because a sea side is near; therefore, a cool sea breeze is always making the evening
weather a pleasant experience.
People:
Our clients are those which we have discussed earlier in the segmentation and targeting.
(See Market segmentation, targeting and positioning.)
Whereas, the people who are involved in running our service will include: Managers,
Workers and Technicians.
Process:
There is not any big process is involved in providing this service. Visitors have to buy
tickets before all tickets are sold and vehicles should stand in an open area facing the
projection screen.
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Integrated Marketing Communication
AIDA
Attractive
The Brooks Drive-In Cinema would be an attraction itself as the concept is currently not
practiced in any other place in Karachi. It would be the new experience for the people to
watch their favorite movies in an uncovered place where quality still exists.
Interest
Interest would be developed through entertaining movies. Movies will be shown
according to the interest of the audience and at such times where they will be more
interested to watch.
Desire
All those living in Karachi with their tiring and busy lives, have desired to have a place
where they can go with their families and friends to spend a quality time. The place is
finally here, it's Brooks Drive-In Cinema.
Action
Brooks Drive In Cinema is opening shortly and as forecasted, after its success. Brooks
Drive In Cinema, would be launched in Lahore and Islamabad. The time is right to take
an affirmative action to revive the dying cinema industry in Pakistan.
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Financials
Initial Investment:
Technology costs:
1. Server / player : Rs : 74,100 Total Cost : 74,100
2. Projector : Rs : 615,000 Total Cost : 615,000
3. Pole Speakers : Rs : 10,500 / piece Quantity :40 Total Cost : 420,000
4. Drive-in Speakers : Rs : 3,000 / piece Quantity :100 Total Cost : 300,000
Total Technology Costs: 1,409,100
Infrastructure costs:
1. Push Carts : Rs : 210,000 / piece
Quantity: 2 Total cost: 420,000
2. Human Resource :
Security Guards : Rs : 3500 / Security Guard / 12 hours
Number of security guards: 6 Total Cost: 21,000
Technical Staff : Rs : 7500 / person
Number of persons: 4 Total Cost: 30,000
Workers : Rs : 6,000 / person
Number of persons: 5 Total Cost: 30,000
3. Building Infrastructure : Total Cost : 2,500,000
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Total Infrastructure Costs: 3,001,000
Promotional costs:
1. T.V. Advertising :
Making Cost : Rs : 1,200,000 / min. ( Orient Advertising )
(Optional)
Airing Costs :
1. GEO : Rs : 1,100,000 / Day No. of Days : 30
Total Cost: 34,200,000
Source: http://www.geo.tv
2. Print Advertising :
Dawn (Images): back page : Rs : 204,000 / edition
Number of Editions: 4 Total Cost: 816,000
Dawn : back page : Rs : 430,920 / day at backpage
Number of Days: 90 Total Cost: 38,782,800
3. Bill Boards : 550,000 / Billboard / Month on Shahrah-e-Faisal (A & A Ad)
250,000 / Billboard / Month on Karsaz (Waqas Ad)
Number of Billboards: 4 (2 on Shahrah-e-Faisal and 2 on Karsaz)
Total Cost: 1,600,000
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Land Costs:
The land will be leased by Government as we will apply for this project as an ammunity
plot (Low cost plot leased by govt. to people who provide services to them like
Amusement Parks, Social Clubs etc.). The loan will be paid back in 4 annual instalments.
Total Covered Area: 15,000 sq. yards (3 acres)
Rate: Rs. 1,200/sq. yard
Total Cost: 18,000,000
Source: Naeem Razzaq
VIP Estate Agency
Gulshan-e-Iqbal Block 13
0300-2034979
Monthly costs including Advertising and Salaries:
Advertising : 75,398,000
Human Resource : 81,000
Extra Curricular and Maintenance : 50,000
Total Monthly Expenses: Rs.75, 529,800
Note: we have to maintain an average Income above our Monthly Expenses
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Control
To make ensure that all the things will go rite, we have setup security cameras at different
locations which cover all the areas and tinted cars are not allowed in the area and only
families are allowed.
Our vision is to be the best and the largest drive-in cinema of Pakistan, we have bought a
license from the Government of Pakistan that after the launch of Brooks Drive-In
Cinema, nobody could open any drive-in cinema in Pakistan.
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APPENDIX I
Number of Drive-in cinemas (History)
Print Ads
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APPENDIX II
Attached CD contains video ads.
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