Business level 3 unit 2 (Pop up cinemas) PDF

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Business level 3 unit 2 pop up cinemas mock...

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Miles Cresdee

Mock 3

15/12/21

Intro I have received a brief from Starlight Classics and their business including details of the market that they are involved in. Starlight classics organise their pop-up cinemas and play cult classics in venues such as sports grounds, city parks and old industrial sites. They promote that their business has a unique experience and that the staff they employ dress up as characters from the films that they showcase on screen, audience members are also included in this. It is said that cinemas in the UK generate revenues of over £2bn a year and that this figure grew by 2.7% between 2013 and 2018. Although, the market that starlight classics is mainly involved in is pop up cinemas which had an estimate of £10 mil in 2019 and that currently this market is growing by 20% - 25% each year. Starlight classics have given me a budget which is £45000 and have I have concluded that the best method for developing the businesses new products would be to offer ‘bolt on services’ like hiring chairs for those who brought cheaper tickets. Anticipating demand I anticipate that the best time of the year for the business would range from early may to early September, roughly this time of the year the weather clears up and the outdoor experience is much nicer due to it being dry and warm out during the day and cooling in the evening. In accordance to research the majority of pop up cinema screenings are based in London with 75% of them set there, this could be the ideal place to have the screenings as it is a highly populated area meaning that many people will see and hear of the business. However, Starlight classics could decide to do screenings in other locations across the UK due to London having such high competition which could reduce the revenue for this business. Recognising Recognising involves keeping up to date with competitors in the market with what they are selling and what we aren’t. Luna cinemas is currently the market leader with pop out cinemas and are approximately growing by 45% each year, they offer a Drive-in cinema which could be considered for Starlight classics as it would interest more people due to them having their own private space instead of sitting next to people. The picture house include student and retired tickets to people which includes a discount of the standard price that they charge, this would bring more retired people and students to their cinema instead of others due to the discount that they can give them. Here are some of the competitors to Starlight Name

Price

Luna Cinema

Beanbag seat= £20.50 Sofa seating= £58.50 General admission= £17.50 Drive in cinema = £32.50 £20-£25 per ticket

The Luna Winter Cinema

The Nomad cinema Where is the Nomad

The picture house The Picture House (picturehouseuckfield.com)

Adult=£10.70 Student/Retired=£8.70

Online presence Insta, Facebook, Twitter

Facebook, Twitter

Facebook. Twitter, YouTube Instagram

Miles Cresdee

Mock 3

15/12/21

Stimulating Using deals and promotions such as 50% off when you buy 2 could also benefit the business and help stimulate demand because this would reel customers in more if they new that they could go to the cinema at a cheaper offer. A survey done stated that 58% of people said they went to the cinema once a month which tells us that implementing these deals means people are going to use them instead of going to their regular cinema like Odeon or Vue because this can offer a wider range of experience as well as a discounted offer. Satisfying The process of the entertainment that Starlight offer needs to be quick and convenient, it must be on time and with little disruption from third parties. Starlight should provide customers with a quick and efficient service, if they offer food and drinks it must be fast and satisfactory to the customers. If this doesn’t happen then customers may lose interest in the business because they are not as convenient as they might want. Marketing aims & objectives Understanding customer wants and needs should be done through surveys and questionnaires to help the business understand what their customers want to see from them. Once the business has analysed the primary research done on customers they can then begin to implement them into their business which will help the growth of the business and in the long term maximise their revenues. S=understanding customer wants and needs. M=throughout responses from questionnaires. A=yes, through relevant questions’ quantitative, qualative. R= helps to manage business and develop new products T=… Starlight classics also want to maximise their revenues, this can be done by possibly increasing the price of the tickets that they are selling. By slowly and steadily increasing the cost of the ticket’s customers will still continue to buy them as they aren’t increasing by large portions at once. This will hopefully sustain the demand for the entertainment that they are offering as well as increasing their revenue. Starlight classics could also try to increase the brand awareness more than they are to help maximise their revenues, the more people that they promote their business too means the more customers that they will have because more people will know about this niche market of entertainment. This could be done online or through the use of mail and post, using flyers often are more effective as it is physical and people will see it more often and create a mental connection to the business. S= maximise businesses revenues M= increase In total revenues A= yes, through effective brand awareness and pricing R= Developing new products is something that starlight wish to do, the best way to achieve this would be through the use of primary research. If starlight knows what customers want they will be more successful because customers are willing to buy what they want or need rather than pointless products or services the business offers. Starlight can ask relevant questions to customers using their Facebook group, this means they also will reduce the costs of the primary research that they will do.

Miles Cresdee

Mock 3

15/12/21

S= developing new products M= throughout response from questionnaires. A= Yes, through relevant questions R= Strengths Staff/audience dress as movie characters

weaknesses Cult classics are dying out, not a current trend

Games and competitions Online ticket purchasing Facebook group Opportunities Growing market Covid/ regular cinemas will decrease in sales due to people being close and have to wear mask

Threats Netflix,Film 4, Prime movies Seasonality Regular cinemas Vue, Odeon Market leader Luna

Current trends One trend for the pop-up cinemas is that out door cinemas are growing in popularity, this could be due to the experience they offer. Romance movies do well in pop up cinemas due to the couples and families attending, it makes it suitable for all ages and can be a romantic date idea for young couples. New movies tend to be more popular than cult classics currently.

Political One political factor affecting the business might be the tax that businesses have to pay, this would increase their total costs and to counter it Starlight might have to increase their ticket pricing. Another factor would be Covid-19, recently new rules in cinemas stated that people must wear a mask when seated to stop the spread of the virus. This could affect Starlight especially if they also have to follow these regulations because not all people are willing to sit and watch a movie with a mask on the whole time and as a result might affect the success of the business Economic Inflation would affect the business because it means that the prices of the tickets, food / drink, blankets and any extras would also increase. If the business doesn’t increase the amount that they are charging for these then they will struggle as a result. . Exchange rates might affect the business, if the business does decide to lease chairs to customers they might want to get the imported in from another country but if the exchange rates change the business could lose money or end up paying more for the chairs instead. Social

Miles Cresdee

Mock 3

15/12/21

One social factor might include Covid-19, people might not feel comfortable going to pop up cinemas if they feel they are putting themselves at risk especially around the holiday season. Knowing that last year the public’s Christmas was cancelled and that we were not allowed round family members houses, people are more likely to stay safe and take safety precautions to prevent them being stopped from seeing family around Christmas again. Technological One technological facto could be the need for new projectors and equipment, the businesses entertainment system needs to be mobile and portable for it to be moved around and set up in lots of different locations. The equipment they use must support projecting as well as surround sound because it all adds up to the experience that the business is offering. If people feel like the equipment used isn’t up to the standard that a regular cinema can provide then they will lose interest and go somewhere else instead. Legal The business must have a licence and a permit to be screening movies and using a public space, otherwise they have just set up on possibly private area which could also be dangerous to customers and it is unlawful. They should also have public liability insurance in case someone injures themselves when they are at one of the venues, this will protect the business in case anyone tries to sue. They should also follow the online and distance selling laws, these involve giving precontractual information to buyers before they sell, this protects the customer from buying anything from the business. Environmental Starlight classics should be appropriate with any waste left over from people from the screenings. Any waste should be cleared and thrown away and not left in or on the venue that they use, if the business is not responsible for this then they could damage the environment as well as create a bad reputation for the business which might discourage customers as they might think that they are irresponsible. They should also think about what the can do to reduce the energy consumption that the entertainment system uses, this would also give the business a bad reputation because it seems like they are wasting energy just for entertainment.

Primary & secondary research Some of the primary research conducted on Monday 1st December 2021 completed by 50 people in a city centre from 10 am to 2 pm states that 58% of people said they went to the cinema once a month and that and that 72% of the 50 people asked said they would spend from 0-£10 for a ticket into the cinema. This gives us an insight to how often people go to the cinema as well as how much they would pay. Knowing this helps us to properly price the tickets Starlight is selling which can range from 0-£10. When asked ‘’what is the most important factor when going to the cinema’’ the majority with 38% stated that the food and drink options would be the most important factor. This helps the business to understand that people are happy to pay for a slight increase cost for food and drink at the cinema which Starlight could do to help maximise their revenue. 74% said that the purchase their cinema tickets online before they are even at the cinema, this is something that starlight already offer to customers however they could consider redeveloping their

Miles Cresdee

Mock 3

15/12/21

website to make it even easier for customers trying to buy tickets. A large portion of websites have ‘’book tickets’’ section on their website which can be a bit confusing for people so maybe they could also have their own app. This would be great for returning customers as they would be able to book tickets whenever they wanted without using the businesses website. All info used is accurate and up to date, secondary data is entirely valid and has been sourced from reliable websites: tutor2u which all have current data/info Marketing message; to offer cheap viewing of films in an outdoor environment, strays away from the normalities of cinema.

The target market for pop up cinemas would be people from the ages of 18 – 45, this is because people who where born in the 70’s and 80’s probably watched cult classics when they were young and now want to relive those films in an entirely new experience. Youngsters might like the idea of pop up cinemas due to them being fun and exciting which all the family can enjoy as. Teenagers probably like pop up cinemas because they are cheap and would be fun to take friends or a partner with where they can relax and enjoy the entertainment. The key competitors for the business would include the market leader in pop up cinemas Luna cinemas as well as some others like The Nomad Cinema and The Picture House. Luna cinema offer a few benefits which starlight might want to consider: Gift tickets can be brought and used for any events at any of Luna’s screenings The tickets can be brought online or delivered Twitter, Instagram, Facebook they use as well as their own mailing service which notifies customers who register that there is upcoming events. They have their own kid’s cinema Luna is promoted by many popular event websites

Luna appears to work with a full-service marketing agency (Booments) Which provides a comprehensive set of marketing support services for Luna's pop-up programme and brand. Ticket sales to view film outside on a mobile cinema / bar and hot food as well as blankets which can be brought https://www.thelunacinema.com/ The USP for this business would have to be the theme of cult classic movies which have the staff as well as the audience dress as characters from the movies, as well as the food and drink which is inspired by the film. It is an interesting theme and creates an ambiance that intrigues the audience into the movie. They also offer games and competition which engages the audience when the movies haven’t stared.

Place Starlight cinemas will use areas such as sports grounds, city parks and unused areas with permission to host their screenings. Some screenings could be related to the them of the movies playing and they could even consider using venues like graveyards for Halloween to add to the experience. Starlight might want to consider using drive in cinemas with premium prices for people who aren’t interested in going to cinemas or going into large social spaces.

Miles Cresdee

Mock 3

15/12/21

Price Pricing is currently £10 per person with blankets costing an additional £5 per person. The food and drink is available at an extra cost and does not come included with the ticket. The premium packages are between £150 to £500 per person which is an extreme price to pay, I suggest they lower them but put a limit on the amount of bundles the provide. If the charge £150 total for the premium package total but make it so that there is only 10 available then the demand for them will automatically increase, especially if you let customers know they are selling at a reduced price. I think the pricing strategy Starlight should use should be penetration pricing, they have a low or lower price first but gradually increase the cost. They should also charge more for the more popular for summer tickets (£2.50 more) rather than during the colder times of the year. Promotion I recommend using an app for the Starlight cinemas, this would be useful to the business because it is a more efficient route to buying tickets rather than doing it off of the website. Using a mobile app would therefore increase brand loyalty and could help to better understand customer wants and needs. In 2020 more than 142 billion apps were downloaded which is a 34 billion increase

from 2019 showing the increase in app popularity. Using print media makes it so people can see us as a physical presence as well as an online presence. This will increase brand awareness of the business and a method of contact which buyers and whole sales can use. Using print media will create a physical presence which can be used to help target older generations. Facebook could benefit a business because it helps to promote their

product or service to customers online. This would increase the brand awareness of the business because which would help bring more revenue into the businesses because more people are aware of what the business is promoting. Facebook has 48 million UK users which and 26% are aged between 25-34 meaning that this social media is extremely large and can help the business find the right customers to promote to. Process The process for customers to buy tickets might be a bit annoying if they have to keep going onto the website and signing in every time just to pay. Using an app could make this process more efficient and convenient for the customers. Purchasing food and drinks at the venues as well should be considered, they should use contactless payment for people to pay because it is a much more popular payment method now and that is continuing to rise. I think that Starlight Classics should offer chair hires to people as well as cushions because it is more important to keep people happy especially the large majority of the group that brought the standard cheaper tickets.

Promotional Method

Budget Cost

Success Factor

App

£38000

Gives people a place to continue to purchase tickets from especially returning customers and will increase the loyalty of those customers.

Miles Cresdee

Mock 3

Print media (Flyers)

£159.24

Facebook ads

£3000

Billboards Bus shelter panels

£2000

Method App Print media Facebook ads Billboards Total cost

15/12/21

Handing someone a physical copy creates a much stronger connection than digital notifications and will increase the brand awareness for the business Facebook ads would be successful because the age range Starlight is aiming for is mainly on Facebook (25-34) this will increase the brand awareness for the business Bus shelter advertisement catches people’s eyes especially if they are waiting for a while, this would also increase a business’s brand awareness

Cost £38000 £159.24 £3000 2000 £43,159.24...