Essays on Exporting Event Cinemas to South Africa Case Study

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The paper "Exporting Event Cinemas to South Africa" is an outstanding example of a marketing case study.   Event Cinemas is an Australian based movie theatre exporting its products and services to South Africa in Africa. It will target customers in Johannesburg, Cape Town, Durban, and Pretoria which are popular towns. The product and services of Event Cinemas will be to provide ultimate movie experience to children, teens, families, young adults and adults between ages 5 years to 54 years. The environment influences of Event Cinema in the target country are political issues, economic issues, technological issues, social issues, cultural issues and legal issues.

The business model to be used as an entry to the target country will be Bricks and clicks business model. The market is segmented by age, genre and movie rating. Event Cinemas targets about 30 million movie-goes in South Africa. The key competitors are Ster-Kinekor, Nu Metro Cinemas, and CineCentre. The current capabilities, experience and expertise of Event Cinemas are valuable physical assets, valuable intangible assets, intellectual capital and human assets, and specialized expertise. The capabilities, experiences and expertise needed to make the project successful are personnel experience, specialised expertise, powerful brand and valuable facilities.

The ‘ gaps’ are lack of cinema experienced and unestablished brand in the target country. The strengths of Event Cinemas include state of the art facilities, customer loyalty rewards, top-performing websites, and state of the art venues. Its weaknesses included unestablished market and high prices due to operating costs. Its opportunities in the target country are the increase of movie-goers to gain market share from, immigration to a digital platform, and rapidly expanding middle class with high spending power.

Its threats are already established competitors and other substitutes like pay-tv and pirated movie DVDs. Event Cinemas will position itself as a provider of ultimate movie experience and state of the art facilities for viewers in a caring manner. Event Cinemas will endorse a broad differentiation strategy an offensive strategy to attack the strong competition. Variable pricing method will be used as a pricing strategy. Promotion strategy will be establishing communication through website, blog and social media, advertising, and sales promotion. Event Cinemas will make a loss of approximately $30000 in Year1, a profit of $120,000 in Year2 and $190,000 in Year3 2.

Preliminary Analysis - Overseas Market 2.1 Target country/market area definition and key criteria The target country for Event Cinemas is South Africa in Africa. The company will target customers living in urban areas specifically in major cities; Johannesburg, Cape Town, Durban, and Pretoria. This was chosen based on the popularity of towns and the population of people; Johannesburg (7,860,781), Cape Town (3,430,992), Durban (2,786,046), and Pretoria (1,763,336) (Statistics South Africa, 2011). The cineplexes will be located in popular malls in those towns where people come to shop, hung around and seek entertainment.

Those locations are also easily accessible and relaxing environment to enjoy movies. 2.2 Definition of product/service opportunity Event Cinemas will provide ultimate movie experience to its families, children, teens, young adults and adults of age between 5 years to 54 years. Different movies will target different customers depending on their preferred genre such as comedy, adventure, action, thriller, drama, romantic comedy and musical. Children, teens, young adults and adults will be provided movies according to the rating as U, PG, 12, 15 and 18.

The customers live in urban areas in the top four popular towns in South Africa; Durban, Pretoria, Cape Town and Johannesburg, with a population of 15,841,155 people (Statistics South Africa, 2011). According to the South African Audience Research Foundation (2015), about 37,214,000 attended a cinema between January-December 2013. They need super experience when watching a movie; intimate seating, extra-large screens, waiter services and VIP experience.

Reference

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Department of Trade and Industry Republic of South Africa 2014, South Africa: Investor’s Handbook 2013/14. Deloitte.

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Nagar, D 2013, SA businesses seriously impacted by political instability, poor government service delivery and crime – Grant Thornton survey. Grant Thornton South Africa, viewed 30 May 2015, http://www.gt.co.za/news/2013/07/sa-businesses-seriously- impacted-by-political-instability-poor-government-service-delivery-and-crime-grant- thornton-survey/

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South African Audience Research Foundation 2015, Cinema Trends. SAARF,viewed 30 May 2015, http://www.saarf.co.za/amps/cinema.asp

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