Outline Preface Industry Overview Introduction Pricing Strategy Conclusions

Outline Ø Preface Ø Industry Overview Ø Introduction Ø Pricing Strategy Ø Conclusions & Advices Ø Questions & Discussions

Preface

The rates of full house of theaters in TW are often less than 10%. >> 0 >> 1 >> 2 >> 3 >> 4 >>

But VIESHOW CINEMAS make the most expensive charge to highest rate of full house in TW. >> 0 >> 1 >> 2 >> 3 >> 4 >>

There are 13 theaters in TW, over 127 Cinema Halls. VIESHOW CINEMAS just dominant the market. >> 0 >> 1 >> 2 >> 3 >> 4 >>

Expensive and more Expensive! Take the lead to show IMAX, 4 DX and Golden Glass. >> 0 >> 1 >> 2 >> 3 >> 4 >>

“Movie = VIESHOW” is deeply rooted in TW. >> 0 >> 1 >> 2 >> 3 >> 4 >>

Why the highest price for best sales? What is the MAGIC? >> 0 >> 1 >> 2 >> 3 >> 4 >>

LET US REVEAL THE SECRET FOR YOU! >> 0 >> 1 >> 2 >> 3 >> 4 >>

Industry Overview

Characteristic of Cinemas Ø rate of full house . the time and quality of a show will not be affected by amount of audiences, since the cost of a show is fixed (Philip Kotler, 1998). the managers should pay attention to “rate of full house”and the “outflow rate of audiences” → to maximize their profits

Business Strategies Ø increase numbers of showings ․ distinguish matinee and non-matinee Ø broadcast all kinds of films to attract more audiences Ø expand food service, provide food and beverages

Business Strategies Ø improve audio-visual equipment Ø combine with other places of entertainments ․ bookstores ․ fast food restaurants ․ record stores

Main Competitors Ø take Vie Show in Taipei for instance: ․ Ambassador Theatres ․ Show. Time Cinema

Introduction

About Vie Show Cinemas Ø the predecessor was Warner Village Cinema, which was set up by two company: . Warner Bros. Entertainment, Inc. (USA) . Village Roadshow Entertainment Group(AUS) Ø three theaters in Taipei now: . Hsin Yi Vie Show . Qsquare Vie Show . Sun Vie Show

About Vie Show Cinemas Ø also has locations in Hsinchu, Taichung, Tainan Ø to give audiences better visual effect, some theaters upgrades their equipments to 3 D, IMAX, or 4 DX system

Initial Analysis Ø we use comments of bloggers and PTT users as basis Ø since the quality of audio-visual equipment are different among locations of Vie Show: → we take theaters in Taipei as example and then analyze their equipment → we use the hierarchy system, “ 1”means the worst, “ 4”means the best

Initial Analysis Ø after the comparisons within Vie Show, we make comparisons with its competitors → we use Vie Show as standard, and analyze whether its competitor is better or worse than Vie Show

Comparisons within Vie Show Cinemas Sound Screen Hsin Yi 3 2 Sometimes the proportion of screens may cause weird visual effect. QSquare 3 3 The seats are spacious, give audiences more convenience. 4 1. The visual effect is the best. 2. The design of seats have few problems, back row audiences may be blocked by front row audiences sometimes. 1 1. The seats are too crowd. 2. Back row audiences may be blocked by front row audiences, too. Sun (IMAX) Sun (normal) 4 1 Note

Comparisons with competitors Sound Ambassador Show. Time better worse Screen Note better 1. The design of seats is also the best. 2. Takes quality into account, so the showing is fewer than Vie Show. even 1. The decorating is gorgeous. 2. Sometimes the sound of two adjacent halls will affect each other.

Summary Ø the quality of audio-visual equipment vary from different locations of Vie Show → which give audiences the impact that Ambassador is better than Vie Show → however, with the introduction of IMAX and 4 DX technology, actually the equipment of Vie Show’s and Ambassador’s is on the same level now

Summary Ø to attract more people, sometimes Vie Show also broadcast live concerts, classical music, and opera → making topics, business opportunities, and more entertainment fun

SWOT Analysis S (Strength) W (Weakness) 1. located in the cities or traffic convenient location 2. successful marketing strategy 3. combine with commercial center to attract more customers 4. IMAX, 4 DX technologies have good reputations 1. high ticket fees 2. the quality of audio-visual equipment vary from different locations of Vie Show 3. advertising and trailers are too long 4. Internet booking system is very unstable O (Opportunities) T (Threats) 1. enhance information and services 1. the piracy problems by the integration of IT systems 2. video rental shops are everywhere 2. purchase the POS machines in Taiwan, which save a lot of money, and can also provide customization services

Pricing Strategy

Pricing Strategy-among theatres ․Adult tickets = 全票 ․Matinee tickets = 優待票 ․Concession tickets = 早場票

Comparing Ø Price: Each kind of tickets sold by Vie show Cinemas is often the most expensive. Between Ambassador theatre & Showtime theatre, the ticket price of Ambassador theatre is higher.

Comparing Ø Equipment: Ambassador theatres have the best projecting system. And screens of Vie show Cinemas’ are IMAX screen. It’s hard to decide which ones equipment is more fantastic. Yet the equipment of Showtime theatre is apparently the worst.

Comparing Ø Locations: In Taipei City, Vie Show Cinemas has most theatres. Ø Marketing strategy: These three theatres all use the strategy of bundling, have the cooperation with credit card company, and social network marketing.

Comparing Ø Overall, the marketing strategies among them are no clear difference.

Summary Ø Among all aspects, why the price of Vie show is the highest may be the reasons below: . More Locations in Taipei-more people know it . More advertisement-more people know it . More popular among young people Ø Although all these reasons may result in the higher ticket price of Vie show Cinema, The price gaps among theatres are still not so big.

Pricing Strategy-among groups

Comparing Ø Matinee tickets It’s the application of peak-load pricing. Most people watch movie after work or school. The demand then is higher, so adopt the higher price. Watch the show in the morning is less demanded, so adopt the lower price.

Comparing Ø Concession ticket It’s the application of third-degree price distribution. Give discount tickets to the people who have less income to reach the largest benefit.

Comparing Ø Group ticket It’s the application of second-degree price distribution. Buying tickets at a certain amount at once will get cheaper ticket. It’s for the largest-benefit seeking, too.

Comparing Ø Area – Taipei / Hsinchu / Taichung / Tainan We can see that the more average income person the city has, the higher ticket price will be. It’s the likewise idea of discount ticket. .

Conclusions & Advices

Conclusions Ø matinee/non-matinee ․ an example of peak-load pricing ․ use the inverse relationship of demand elasticity to set prices Ø concession ticket/non-concession ticket ․ the third-degree of price discrimination according to income

Conclusions Ø group ticket / non-group ticket ․ the second-degree of price discrimination ․ enhance amounts of customers by giving some discounts Ø pricing according to region ․ Taipei > Hsinchu > Taichung > Tainan ․ another example of the third-degree of price discrimination ․ pricing according to income

Advices Ø more credit cards promotions According to website, Vie Show only has promotions when using credit cards of Citi Bank, Taishin Bank and Chinatrust Banks. We think that Vie Show can enlarge its credit cards promotions with other banks.

Advices Ø exclusive counter for internet booking Vie Show can set exclusive counters for internet booking customers, so that they do not have to line up again when picking up tickets.

Advices Ø cooperation with parking lots Take Hsin Yi and QSquare Vie Show for instance, Vie Show can try to cooperate with surrounding parking lots, giving some discounts to customers to increase their convenience.

Questions & Discussions

Vie Show wants to release a special offer including popcorn and movie ticket. The target customers are people who like to have snacks. According to the survey, there are two kinds of customers. Q: How to set the pricing strategy to make Type A customers only buy the movie ticket and Type B customers choose the special offer? (A ticket costs $150, popcorn costs $50) Movie ticket Popcorn Type A Willing to pay $240 Willing to pay $40 Type B Willing to pay $210 Willing to pay $70

What are Vie Show’s greatest strengths and weakness?

Please simply describe at least three kinds of Vie Show’s pricing strategies.

References Ø Vie Show Cinemas ․http: //www. vscinemas. com. tw Ø PTT-Theater ․http: //www. ptt. cc/bbs/Theater/index. html Ø Mobile 01 ․http: //www. mobile 01. com/topiclist. php? f=386 Ø Wikipedia Ø Yahoo! Answers

Thanks