Creek Drive-In Cinema

Creek Drive-In
Cinema
Submitted by:
M. Arsalan Sheikh(#7989)
Ahsan Bham(#8106)
Abdur Rehman(#8033)
Naresh Manglani(#6712)
Kaivan Afshari(#7668)
Submitted to:
Ms. Farah Ali Nawaz
Advertising & Brand Management – Sunday
3:00pm – 6:00pm
Sunday, April 18, 2010

Letter of Authorization
Dear Reader:
As authorized by our teacher Ms. Farah Ali Nawaz, we decided to
introduce a new service named Creek Drive-In Cinema.
This report contains complete information about the service and the
company’s strategy to achieve success. Also included in this report is a
detailed analysis of the company’s position in the market and the service
it will be providing. All information is presented in a very simple manner,
for the interest of a common reader.
This report consists of genuine and complete source of information on
both the companies. You may contact us for further queries or comment us
on our work.
Sincerely,
M. Arsalan Sheikh (#7989)
Ahsan Bham (#8106)
Abdur Rehman (#8033)
Naresh Manglani (#6712)
Kaivan Afshari (#7668)
~ ~
Letter of Transmittal
Ms. Farah Ali Nawaz

Visiting Faculty Member, Advertising Management
Iqra University, Defence View
Karachi
Dear Ms. Nawaz:
We are submitting here our term report on the launching of a new service
named Creek Drive-In. Initial pages of this report also contain the brief
information about company’s background and the service its offering.
All the information provided in the report is comprehensively discussed

with a satisfactory background of valid facts and figures.
If there are any questions or queries you have about the material presented
in this report, we will be extremely glad to appear before you.
Sincerely,
Ahsan Bham (#8106)
~ ~
Acknowledgement
Dear Reader:
With the blessings of ALLAH the almighty, the report enclosed has
reached its stage of final completion. This report is a result of exhaustive
and much enthusiastic work. We extend our heartiest thanks to Ms. Farah
Ali Nawaz, for conducting this course and making it interesting and
knowledgeable, without her efforts and co-operation the report would not
have been possible. We also thank for her confidence and trust she had in
us, importance of which can in no way be under estimated.
We are equally grateful to Iqra University for providing us the
opportunities to pursue our endeavor. We also appreciate the students of
Iqra University, who assisted us in providing us all the necessary
information and feedback that we required for completing this task.
We hope readers of this report can complement the depth of the study and
efforts put into it.
Thanking You
Sincerely,

Ahsan Bham (#8106)
~ ~
Table of Contents
1 Introduction & Background.......................................................................................1
1.1 Industry overview................................................................................................2
1.2 About the Company.............................................................................................4
1.3 Mission Statement................................................................................................5
1.4 Vision Statement..................................................................................................5
1.5 Values...................................................................................................................5
1.6 Symbol/Logo........................................................................................................5
2 Market Analysis Summary.........................................................................................6
2.1 Segmentation, Targeting, and Position...............................................................7
3 Sales Strategy............................................................................................................11
3.1 Sales forecast......................................................................................................11
3.2 Estimated Demand.............................................................................................12
3.3 Company Sales Forecast....................................................................................12
4 SWOT Analysis........................................................................................................14
4.1 Strengths.............................................................................................................14
4.2 Weaknesses........................................................................................................14
4.3 Opportunities......................................................................................................14
4.4 Threats................................................................................................................14
~ ~
5 Porter’s Five Forces Model of Competition...........................................................15
5.1 THREAT OF COMPETITORS........................................................................15
5.2 THREAT OF SUBSTITUTES..........................................................................16
5.3 THREAT OF NEW ENTRANTS.....................................................................16
5.4 SUPPLIER POWER..........................................................................................17
5.5 BUYER POWER...............................................................................................18
6 Ansoff’s Product-Market Expansion Grid..............................................................19
7 Marketing Mix – 7 P’s.............................................................................................20
7.1 SERVICE PRODUCT/ SERVICE PACKAGE...............................................20
7.2 PRICE.................................................................................................................23
7.3 PLACE / DISTRIBUTION...............................................................................24
7.4 PROMOTION....................................................................................................25
7.5 PEOPLE.............................................................................................................27
7.6 PHYSICAL EVIDENCE...................................................................................29
7.7 Process................................................................................................................31
8 Financials..................................................................................................................31
8.1 Initial Investment:..............................................................................................31
8.2 Land Details:......................................................................................................32
9 Recommendation......................................................................................................33
9.1 Technological Innovation..................................................................................33
9.2 Once inside...Service must match the price charged…...................................33
9.3 Expanding reach…............................................................................................34
9.4 Riding high on sports….....................................................................................34
10 Conclusion................................................................................................................34
11 Appendix-I................................................................................................................35
~ ~
Creek Drive-In Cinema April 18, 2010
1 Introduction & Background

Over the years, spending power has been steadily increasing in Pakistan. On an
average, 5-10 million people are joining the middle class every year. The
consumption spending is rising due to increasing disposable incomes on account of
sustained growth in income levels and reduction in personal income tax over the last
decade.
The Pakistan Entertainment Industry is expected to significantly benefit from this fast
economic growth, as this cyclically sensitive industry grows faster when the economy
is expanding. When incomes rise, proportionately more resources get spent on leisure
and entertainment than on necessities.
Film, unarguably, is the most important and influential means of entertainment,
information and education the world over. Film narrates a story to entertain, educate
or inform people either in a cinema, television or on video cassette. There are many
kinds of films such as feature films, animated films, documentary films, educational
films, television films and even amateur films.
The most popular kinds of films are for the sole purpose of entertainment which
makes it more attractive towards youth and families. While films are made and shown
throughout the world the size and scope of film industries of various countries varies
greatly in size. Hollywood has become a well known film industry of the world which
has made deep impact of the audiences not only in the US but countries far beyond its
borders. Indian film industry produces the most films in the world.
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1.1 Industry overview

At the starts of the 1990s, Pakistan's film industry was gripped with certain doom. Of
the several studios only 11 were operational in the '70s and '80s producing around 100
films annually. This number would lower further as studio went towards producing
short-plays and television commercials and let the industry astray in the wake of cable
television. By the early '90s, the annual output dropped to around 40 films, all
produced by a single studio. Other productions would be independent of any studio
usually financed by the filmmakers themselves
In early 2003, young filmmakers took on a stance to demonstrate that high quality
content could be produced by the local film industry using he limited resources
available. Cinema was declining in all major cities of the nation and a need for revival
was echoed in the media. It was during this time that Mahesh Bhatt, a celebrated
Indian director visited Pakistan looking for talent, particularly singers who could lend
their voices to his upcoming films in India. His visit to Pakistan was to attend the
third Kara Film Festival, for the screenings of his film Paap in Karachi. Bhatt would
later hire Atif Aslam for the soundtrack of his film Zeher and Pakistani actress Meera
to play a lead-role in one of his films.
Later in 2005, industry officials realized that the government needed to lift the ban for
the screening of Bollywood films in Pakistan. The issue was voiced by the Film
Producers Association (FPA) and the Cinema Owners Association (CAO) of Pakistan
after the release of the colorized remastering of the 1960 classic Mughal-e-Azam.
When the government turned down the request, Geo Films, a subsidiary of Geo TV
took on itself to invest in upcoming Pakistani directorial ventures and dubbed their
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efforts “Revival of Pakistani Cinema” and on 20 July 2007 released Shoaib Mansoor's
cinematic directorial début Khuda Ke Liye (In The Name of God). The film would
later become the first ever Pakistani film since the imposition of the ban in 1965 to be
released simultaneously in India and Pakistan. With its general release in India, the
four decade ban was finally lifted. The film was released in more than a 100 cinemas
in 20 cities in India.
As a city, Karachi began to grow at a fast pace in the late 60's, and the price of the
property shot up significantly. At the peak of Pakistani cinema industry in the mid
1970s, Karachi alone had more than 100 cinema halls and more than 200 films were
produced and released each year. This caused the film industry to lose a lot of
revenue, making the industry even less attractive for investment. Many professional
financiers left the cinema industry of Pakistan.
The Universal Multiplex in Karachi opened in 2002. The future viability of film-
making business in Pakistan is evidenced by the fact that now many global companies
are interested in investing in the theater business in the country. Cineplex is the first
dedicated Cineplex Company in Pakistan. They are building the country’s first
nationally branded Cineplex chain. The firm says that it is dedicated to introduce a
world-class, film-going experience to the people of Pakistan by building state of the
art film theaters in the urban areas. Cineplex will have multiple cinemas in each
location and is committed to screening premium content in a family-friendly
environment. Eventually, they intend to bring families back into the theaters by
providing a quality experience, and assert that the multiplex culture can only help.
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1.2 About the Company

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.
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. 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.
After a downturn in the industry in late 80s when the onslaught of video wars at its
peak cinema has now been rejuvenated with the latest international trends in cinema
exhibition reaching Pakistan’s shores swiftly with the arrival of satellite TV. The
capitals cosmopolitan audience is becoming increasingly aware of the advanced
cinematic technology that enhances the movie going experience and this has whetted
their appetite for watching movies on the “big screen “. To cater to the increasingly
sophisticated tastes of the audiences, we furnished the location with the best audio
visual equipment which includes quality projectors and Dolby stereo sound system.
We have also gained exclusive rights to screen blockbusters from major distributors
mainly Warner brothers, 20th century fox, united international pictures, small wonder
then that the cinema has become the focal point for entertainment in the capital for
both the young and old attracting over 30,000 patrons a week.
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1.3 Mission Statement

“A commitment to deliver the best quality cinema viewing everywhere and every time.
No boundaries, no discrimination, equal opportunity, and access to best entertainment.”
1.4 Vision Statement

Our vision is making our brand name synonymous with state-of-the-art cinema
exhibition in the mind of our customers in Pakistan. It wants to specialize in
developing and operating state-of-the-art Multiplexes. It will be the leading cinema in
the country with an emphasis on design, technology and service. In the near future, it
will establish itself as a very strong brand associated with movies, quality exhibition
and youth-targeted promotions.
1.5 Values
We ensure filmgoers can rely on us for a high quality environment with premium
facilities, we are not exclusive – every customer is valued at Creek Drive-In Cinema.
1.6 Symbol/Logo
CREEK
Dr iv e -In
2 Market Analysis Summary
Location plays a very important role in success of a cinema. Convenience of audience
and site free from political and social influences makes a plus point. Our business is
located on University Road, across KFC, Gulshan-e-Iqbal. We are located in the heart
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of Karachi, where large number of customer in surroundings and from distant places
as well, can reach in a few moments and have access to area easily. Ample parking
space is available, and a well reputed security service guarantees flaw less time spent
at our cinema.
Detailed analysis was carried with respect to what customers really ask for in a
cinema, making it an open air cinema was a totally different but not a new concept.
Middle age respondents were already aware of what kind of idea we were proposing
to them, whereas, teenagers were more excited due to the fact that they are more
prone to indoors. Youth and families are a regular viewer of movies in cinemas and
the advent of multiplexes has made it a more common activity. By introducing an
open-air cinema, this market segment can enjoy a whole new experience of watching
movies at comparatively cheaper rates. As the maintenance cost for operating a drive-
in cinema will be low, therefore, we plan to offer tickets with introductory
compensation offers and relatively cheaper rates with respect to our competitors in
long term.
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2.1 Segmentation, Targeting, and Position
Segmentation
On the basis of customer preferences, we may classify Creek Drive-In under the
Clustered category. This is owing to the fact, that out of the entire masses they have
clearly defined their target audience and aim to cater to them. Also, Creek Drive-In is
an undifferentiated Market because they cater to the movie-going audience, i.e. SEC
A and SEC B. – Creek Drive-In Cinemas has forecasted approx. 40 thousand movie
goers per month.
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2.1.1.1 Consumer Demographic Segmentation
Age: Below 18 years: 32%; between 18 and 29: 54%
Gender: Males: 47%; Females: 53%
Income: 61% have income over 50K
Education: 55% of adult movie-going audience has attended/graduated college*. Of

these adults, 37% have college degrees or higher
Demographics
Youngster
Adults
Senior Citizens
2.1.1.2 Consumer Psychographic Segmentation
Movie Goers are people with high resources and can be classified as “Experiencers”
who seek variety and entertainment. Spend a comparatively high proportion of
income on fashion, entertainment, and socializing. ‘Creek Drive-In attractions,’
generally have the following major tendencies:-
 Go outside the home for entertainment

 Participate in sports and other active lifestyles
 Hard to reach through other traditional media
 lighter television and radio users, but heavy internet users
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 Receptive to advertising in movie theatres, consider as part of their movie

going experience
2.1.1.3 Consumer Behavioral Segmentation
Usage rate: 1/3 of the population attends the movies one or more times per month.
2.1.1.3.1 WHAT?
1. What benefits that the customer seeks? – Complete movie going experience.
2. Factors influence Creek Drive-In demand? – Price, movie, day, time of the day, day
of the week, month etc.
3. What function can the product perform for the customer? – Entertainment.
4. What are the important buying criteria? – Price, ambience, placement, quality
service, premium positioning, status symbol.
5. What risks does the customer perceives – risk of being overcharged, risk of being
in an emergency like fire at the theater.
2.1.1.3.2 HOW?
1. How does customer buy the product? – Online / Telebooking / In person
2. How long does the buying process take? – Simple and prompt
3. How do the various marketing mix elements influence the customer at each stage of
buying? – (Explained later in the report)
4. How does product fit in to their lifestyle? – Entertainment product for the premium.
5. How much would they be willing to spend? – Creek Drive-In will start with tickets
being priced at Rs 350 with special counters available for tickets worth Rs 70, based
on complimentary/promotional pricing.
6. How much do they buy in one transaction? – Almost always more than 1 ticket.
Depends upon the person and movie playing.
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Targeting
Creek Drive-In Cinema targets to be the first of its kind and be the market leader; and
therefore, making innovative offering to its customer. Creek Drive-In Cinema has
broad pricing and we target mainly SEC A and SEC B. Creek Drive-In Cinema has
brought to its customers the experience of Luxury Open air Cinema at reasonable
price. Creek Drive-In Cinema uses the undifferentiated method as they have target a
much focused audience in the entire masses.
Positioning
Creek Drive-In c has a very well planned market position. Its undifferentiated
positioning affects the customers perceptual positioning. Therefore, we decide on our
marketing strategy and pricing, keeping the target market in mind. Creek Drive-In
Cinema makes use of all their tangible elements to prove to their customers that their
movie tickets are worth the price they are paying. Also, since some of the other movie
theatres (which are not multiplexes) are still offering movies at rates as low as Rs
200, it is the task of its marketer to ensure that Creek Drive-In comes across as a
superior brand in terms of cinema viewing as well as the experience. It’s positioning
is made evident through its mission statement.
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3 Sales Strategy
Creek Drive-In Cinema majorly focuses on two groups of market segment, i.e. youth
and family. Our sales strategy consists of various promotional activities that include
complementary tickets, multiple endorsements, and sweepstakes. We intend to appeal
the mass by providing them a venue to pass their time in quality environment and
ambience that will amuse customers at various levels. Creek Drive-In Cinema has an
extensive range of food selections which will provide the customers to choose from a
variety of options. Creek Drive-In Cinema believes Concession POS enables you to:
 Sell products your way with unlimited product, discount, price, and promotion option
 Integrate full-feature loyalty and gift card programs into your operation
 Customize the cashier screen and prompt
3.1 Sales forecast

Based on the market research carried out by the company, suitable estimation of
demand and necessary financial projections has been done. Necessary data is provided
in the annexure to support this information. Financial evaluation, based on projected
sales volume and necessary cost taken into account, shows that the project is a
profitable venture.
Working Capital of Rs. 2.75M has been employed with a cash balance of Rs. 0.28M
and a 12% growth rate of increase in yearly projected revenues. The company comes
in a tax bracket of 35%. The analysis is based on a 3-years venture, the scenario
represents that the project will be liquidated after its tenure and all assets will be
disposed.
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After 3-years, if the project seems feasible to continue, owners of the company will
have to make decision of restructuring. It might even include resolutions related to
creating a portfolio and public ownership as well.
3.2 Estimated Demand

The demand of the service won’t be completely reflected in the company’s sales
forecast in the initial years. As there will be an initiation in the delivery process, some
discrepancies are expected therefore demand might not be efficiently met due to
several reasons which will also be tried to overcome. As their will be progress in the
coming years of operations, demands will also rise gradually if everything goes as per
planned.
3.3 Company Sales Forecast

In the initial year of business the annual sales revenue forecast is expected to be
64,000 customers, with a price per ticket of Rs. 300, it aggregates a Net Revenue of
Rs. 19.2M. With an expected sales growth of 16% annually the sales volume in
persons will raise up to a hundred-thousand people in the end of third-year. These
estimates are taken based on the research that has been carried out by the sales team.
Keeping in mind the potential customer base for the service and the frequency of visit
figures have been derived.
Cash Flows statement based on the company’s sales forecast has been provided in the
annexure with a detailed chronological pattern. Profit earned through the annual sales
recorded, will be allocated to pay off debt and allocate the increase in the working
capital based on the increase in annual sales forecast.
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Operating Cash Flows Over the

Project's Life: Sales
30000000
25000000
20000000
15000000
10000000
5000000
0
Initial 2011 2012 2013 2014
Operating Cash Flows Over the

Project's Life: Net Income
12000000
10000000
8000000
6000000
4000000
2000000
0
Initial 2011 2012 2013 2014
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4 SWOT Analysis
4.1 Strengths
 First mover advantage in the open air cinema business in Pakistan
 Up-to-dated technology
 Premium positioning
 Plays Hindi, English, Regional & foreign movies
 Locational strength
 Open air ambience
 Promoting the concept of ‘a complete movie going experience’
 Market leader
 Blend of retail & entertainment
4.2 Weaknesses
 High cost perceptions
 Low standard perceptions
 Customer retention
 Parking problems
4.3 Opportunities
 First mover advantage
 Growing family spending on entertainment
 Diversified source of film industries
 Creek Drive-In Cinema loyalists
4.4 Threats
 Competition blooming large
 Government’s interference
 Entertainment Tax
 Other Multiplexes as competition
 Other ways of entertainment
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 Movies becoming bigger than the brand
5 Porter’s Five Forces Model of Competition
Threats of New Entrants:

Barriers to entry
Economies of scale
Product differentiation
Capital requirements
Switching cost to buyers
Access to distribution channels
Other cost advantages
Governement policies
Incumbants' defense of market share
Industry growth
Rivalry among existing firms:

Number of competitors
Relative size of competitiors Determinants of Buyer Power:
Determinants of Supplier Power: Industry growth rate Number of buyers relative to sellers
Supplier concentration Fixed cost vs. variable cost
Availability of substitutes inputs Product differentiation
Product differentiation Switching costs to use other product
Importance of suppliers' input to buyer Capacity diiferentiation
Suppliers' product differentitation Buyers' profit margins
Capacity argumented in large Buyers' multiple sources
Importance of industry to suppliers incrrments
Buyers' switching cost to other input Buyers' threat of backward integration
Buyers' switching costs Sellers' threat of forwards integration
Suppliers' threat of forward integration Diversity of competitors
Buyers' threat of bakward integration Importance of product to the buyer
Diversity of competitiors Buyers' volume
Exit barriers
Strategic stakes
Threat of Substitute Products:

Relative price of substitute
Relative quality of substitute
Switching cost of buyers
5.1 THREAT OF COMPETITORS

Creek Drive-In Cinema currently faces competition from cinema theatres in the
Karachi. Some of the competitors have greater financial resources than it; and
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therefore, they may be in a better position than Creek Drive-In Cinema to invest in
open air Cinema projects or to sustain losses from such developments in the start-up
stage. In the future, we may also face competition from country-wide cinema theatres
if and when we make a foray into other cities of Pakistan.
There are currently seven major competitors in the film exhibition industry: Capri
Cinemas; Prince Cinema; Nishat Cinema; Bambino Cinema; Cineplex Universe; Ritz
Cinemas; and Jubilee Cinema.
5.2 THREAT OF SUBSTITUTES

Threat from other sources of entertainment
In addition, Creek Drive-In faces competition from other forms of entertainment
including, television, film DVDs, newspapers, magazines, radio, internet and theatre
and advances in technology related to entertainment, such as MP3 and multimedia
messaging etc. These other forms of entertainment compete with cinemas for the
discretionary spending of patrons and for the ad-spend of advertisers.
Films constitute 28% of the total entertainment industry of Pakistan. Television forms
a major 65%. Piracy and home-viewing may reduce the number of cinema patrons. On
account of inadequate enforcement of anti-piracy laws in India, and on account of
increasing home viewing options, the number of cinema patrons may reduce in the
future, which may have a material adverse effect on the company’s revenues and
results of operations. Television is expected to grow at a faster pace than cinema.
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5.3 THREAT OF NEW ENTRANTS

Costs of setting up a multiplex in India are coming down
It can takes approximately Rs 6.5 Million to set up a premium Drive-In Cinema in a
metro while the same in a smaller town costs about Rs. 1.5 Million.
But businesses can easily realize that if done right, a stripped down cinema can be set
up much cheaper. Typically, fit-out costs (cost of doing up the interiors) range
anywhere between Rs. 0.5 to Rs 1 Million per screen.
Owners have realized that cutting down on the ‘fancy stuff’ could bring down costs
by half’.
Though regulations maintain pressure on the compliance costs
The Cinema Owner Association is currently regulated by a numerous laws some of
which were written at a time when Drive-In Cinemas were not common and hence
these laws may not necessarily be relevant for Drive-In Cinemas. Some of the
provisions of these laws include:
1. Requiring a minimum distance between the screen and the front row seats,
which distances were set based on large screens used in single-screen cinemas
and not the smaller screens used at most Drive-In Cinemas.
2. The permissible pressure at which the electrical current may be supplied to a
projector, which provision does not reflect the technological advances in
respect of Drive-In Cinemas.
3. The reservation of playing times for a scientific film, educational film, news
reel or documentary.
4. Restrictions on ticket prices in certain states.
5.4 SUPPLIER POWER

The cost of exhibition of a film varies across films and cinemas and if Creek Drive-In
Cinema is unable to obtain films on competitive terms its operational results may be
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adversely affected. Cinema Owner Association in Pakistan relies on distributors to
obtain films for exhibition. For hiring a film, the distributor’s share is normally a
percentage of ticket receipts (net of entertainment taxes) and the applicable
percentage is negotiated on a film to film basis in respect of movies produced in
Pakistan and periodically for film releases by international studios.
Distributors work on a non-exclusive basis and there is competition between
exhibitors to acquire films. Competitive pressures may result in increasing the cost at
which we acquire the rights to exhibit films. If Creek Drive-In Cinema is unable to
recover such increased costs through higher box office collections or other forms of
revenue generation, our results of operations would be adversely affected.
5.5 BUYER POWER

Creek Drive-In Cinema will be the first to open a multiplex in Pakistan. It will be one
of its kinds and due to lack of similar Drive-In Cinemas around, Creek Drive-In
Cinema has an upper edge as far as buyers are concerned. It will charge a lower price
and position itself as an undifferentiated service.
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6 Ansoff’s Product-Market Expansion Grid
Present New
Products Products
Present Market Product

Markets Penetration Development
New Market
Markets Development Diversification
Creek Drive-In cinema is trying to penetrate into existing markets.
The market is new for the company and but similar products do exist in the market of
Pakistan. So for innovation of an existing product in the new market the whole
process is to be followed from the idea generation and screening, testing and
commercialization. Depending on exhaustive promotional strategies with a greater
focus on attracting customers, company will need to create achievable objectives
which will strengthen consumer base and eventually a stable market for future
products of the company as well.
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7 Marketing Mix – 7 P’s

7.1 SERVICE PRODUCT/ SERVICE PACKAGE
A product (in the marketing context) may be tangible, intangible or both. In case of
services, on the contrary, the tangible component is nil or minimal. In services, there
is no or very little tangible element because of which they are considered as benefits,
which are offered to the target market. First, a service is a bundle of features and
secondly, there benefits and features have relevance for a specific target market.
Therefore while developing a service product; it is important that the package of
benefits in the service offer must have a customer’s perspective. 4 product levels are
as follows:
Core Benefit is the MOVIES that the customer comes to a cinema hall for, along with
the attendant experience of Creek Drive-In Cinema. The expected product in Creek
Drive-In Cinema’s case would be ambience, hygiene, good service, parking, candy
bar, etc. PVR has augmented its product offerings:
Bulk Bookings
There are special arrangements for bulk bookings (of twenty or more tickets) done by
corporate. Details can be filled online and Creek Drive-In executives themselves get
in touch with the concerned people.
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E-booking and tele-booking
Creek Drive-In Cinema also provides the facility of e-booking.
Creek Drive-In will also start helping customers in planning birthday/casual get-to-
gather at Creek Drive-In Cinema. We will make Creek Drive-In Cinema a wholesome
entertainment experience than just a movie watching spree.
Movie newsletter and magazine
To keep its customers hooked on to movies and to Creek Drive-In Cinema, it has also
come out with an online newsletter, called ‘Creek Wire’, is directly mailed to the
subscribers and can also be downloaded from their website.
We will also launch a movie magazine called ‘Movies First’.
Movie vouchers
We will also take out a unique concept of movie vouchers which people can use as
gifts. Many corporate will also use it as incentives and rewards for their employees.
The vouchers will be available in denominations of Rs 350 to Rs 700 and a minimum
of 25 coupons needs to be purchased to avail of the offer.
The following options are available:
All Weekdays: Rs. 200 Entry per person + Rs150 Food and Beverages (optional)
All Weekends: Rs. 350 Entry per person
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THE SERVICE PACKAGE
The “package” concept of services product suggests that what you offer to the market
is a bundle of different services, tangible and intangible, but there is a main or
substantive or ‘core’ service and around it are built the auxiliary/peripheral/facilitator.
It is important to note that we are facilitating 3 services at mandatory and if these are
left out, the entire service would collapse. Yet another type called supporting services,
don’t facilitate the consumption of core services but are used to increase the value and
thus differentiate from the competition.
Focused on developing a procedure for quantifying customer’s service quality can be
measured in following dimensions:
Reliability – Ability to perform promised service dependably and accurately. Creek
Drive-In Cinema is a very well established brand name, and the audience is given
excellent experience of the basic product i.e. the movie as well as the other elements
involved. Hence, it is very much capable of good delivery of the service it provides.
There is no flaw in the quality of the service and is always delivered on time.
Assurance – Knowledge and courtesy of employees and their ability to convey truth
and confidence. Since Creek Drive-In Cinema is a high contact organization, the
employees are well trained in all areas regarding customer interaction and courtesy.
Creek Drive-In movies being a service, heavily relies on its employees, as they are the
only mode of direct communication made with the customers. They are well trained
and are definitely able to convey the confidence that the brand name represents.
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Tangibility – Appearance of physical facilities, equipment, personnel, etc. Creek
Drive-In movies have a lot of tangible elements present like the employees (staff), the
site, the candy bars, rest rooms etc, all of which are highly maintained and well kept.
Empathy – Caring, individualized attention to the customer. Even though in a
service like this customization is not possible, the employees of Creek Drive-In
Cinemas are always very helpful and provide the customers with good assistance
whenever needed. From the employees made to sit at the ticket counter to the
employee that guides customers to their respective seats in the cinema hall, all
employees deliver a very helpful attitude towards the target audience.
Responsiveness – Willingness to help customer with prompt service. The
employees of Creek Drive-In Cinema are fast and prompt at delivering their service
and are taught to cause as less inconvenience as possible to the customers. If a
customer places an order via tele-booking / online reservation etc, the delivery of the
tickets is made well before the show timing at the customer’s doorstep. The
employees are well trained.
7.2 PRICE
To many customers, low price means sub-standard quality. Services pricing follows
the price and practices of pricing of goods and therefore are either cost based or
market based. Within these categories of price may be profit oriented, government
controlled, competition or customer oriented. But the characteristics of services do
influence the pricing and therefore different methods of pricing are followed in this
case.
Page | 23
Its undifferentiated positioning affects the customers perceptual positioning.
Therefore, they decided on their marketing strategy and pricing, keeping the target
market in mind. Hence, we may say that the pricing as well pays a strategic role in
their marketing plans.
In case of Creek Drive-In Cinema, they make use of all their tangible elements to
prove to their customers that their movie tickets are worth the price they are paying.
Also, since some of the other movie theatres (which are not open air) are still offering
movies at rates as low as Rs 200, it is the task of its marketer to ensure that Creek
Drive-In Cinema comes across as a superior brand in terms of cinema viewing as well
as the experience. The movie theatres market is a Free Market, even though the
government in the past regulated it. This allows Creek Drive-In Cinema as the market
leader to set its own prices. Creek Drive-In has a slightly different pricing system,
which varies from Rs 200 to Rs 350 for different slabs of consumers. This has been
done to mainly attract the youth and to keep the concept of movie going.
7.3 PLACE / DISTRIBUTION

Services are generally created and delivered to the buyer at the same time; therefore
creation of time and place utilities is a vital function in services marketing.
Irrespective of middlemen or direct sales channel, the factor of location keeping in
view the potential markets is the most significant in channel selection and
distribution.
The issue of location here plays a very important role, as Creek Drive-In Cinema
cashes itself on the bases of being an open air cinema stationed at a good location in
the city, which gathers a large number of footfalls for them every day. Creek Drive-In
Page | 24
Cinema is opening at an eventful yet untapped location. The place is well situated and
well linked with its customers. Creek Drive-In Cinema does not have any other
channel of distribution, as the service is sold solely at the ticket booth. We do not
follow any franchisee outlets, even though we indulge in ticket sales online and via
tele-booking. The only intermediary involved for procuring movies are Indian as well
as international movie distributors, by way of whom we acquire the movies.
7.4 PROMOTION
Promotion is a very vital part of the marketing mix especially in the case of services.
The customer needs to trust or have belief in the service, as he has to pay for it pre-
experience. Therefore, it is very important to sell the service in the best possible way.
Usually the objective of promoting a service may be to create a brand image, establish
a personal relationship with the client and to create an impression of competence,
honesty and sincerity to win the buyers’ confidence in sellers’ abilities to deliver the
service efficiently. To promote these, the marketer generally employs indirect selling
techniques, as it is usually not possible to use the conventional promotion tools like
advertising. Promotion activities like community relations, event management, media
blitz, and corporate identity programs have relevance. 3 rd parties like government,
unions and interest groups are important, as they are capable of influencing market
access.
Creek Drive-In Cinema as a brand will indulge into print advertisements on every
Friday giving out the latest movie schedules. Any new developments are
communicated to the audience via press releases. They will also be in collaboration
with cellular services like Telenor and Zong, have SMS and win contests, and give
Page | 25
out free tickets to the winners. Also, Creek Drive-In Cinema will attract a lot of
commercial shooting / media coverage via programs, etc which promotes it as a brand
in a big way. Organizing Star Events on Premiers of movies like ‘Dhoom:2’ will help
Creek Drive-In Cinema relate better with its target audience i.e. mainly the youth. The
whole Creek Drive-In banner and its exterior environment including movie hoardings,
banners, etc. help promote the concept of movie viewing as well as Creek Drive-In
Cinema as a strong and successful brand.
Creek Drive-In will also plan to host premiere shows with leading movie stars visiting
the Creek Drive-In Cinema. We will also host numerous fun events for children while
screening animations, etc.
TV Ads: The ad which will be televised will be related to the initial viewing of the
movies that are going to be shown on ARYDigital.
Billboards: A billboard will be booked on Main Jauhar Road besides Millenium
Mall and other will be place on Main University Road.
Radio:
7.4.1.1 Radio 1 (FM91):
Promotional activities like sweepstakes, lucky draws and other attractive offerings
will be make to attract more customers in the initial stage. This will create media hype
and make people aware of our service.
Page | 26
7.4.1.2 Hum (FM106.2):
Same will be done at this radio station as well, besides this hourly time checks and
other infotainment promotions will also be aired regularly.
Print Media:
Through Dawn Newspaper, a large number of potential customers in the targeted
segment will be reached. The news ad will consist of movie that are being shown plus
the additional services that will be offered along with it.
7.5 PEOPLE
EMPLOYEES, CUSTOMERS and OTHER CUSTOMERS
Service must be fully developed and internally accepted before its launched.
Attracting, developing, motivating, retaining employees
 Leverage freedom factor  Offer a vision

 Measure & Reward  Compete in talent
 Stress team play  Know the customer
 Prepare to perform
Creek Drive-In will indulge in the following for their EMPLOYEES:
 Complimentary ticket on payment of entertainment tax amount at any point of

time (2 days in advance) to the employees, subject to availability.
 Tickets to employees are given for:
o 1+1 oneself and employees guest
o 2 for immediate family i.e. parents, spouse etc.
Page | 27
This has been done to encourage movie going among employees as well as customers.
 Gives 10 national holidays to employees

 Teaches employees to be helpful, polite, courteous to all patrons and co
workers – enthusiasm and cheerful
 Report customer grievances to managers
 Strict on rules on no smoking, etc.
 They are given personalized badges – symbolizes that the employees pride
themselves on being a part of the Creek Drive-In family
 Very great importance is given to person hygiene and appearance – clean
uniform and shoes.
 Not allowed to make a gesture to ask for any sort of a tip / gift from customers.
 Given bright blue uniforms – represents Creek Drive-In. This is done to ensure
uniformity of appearance and to project a well kept image.
 All trainees are made to train at all departments like ticket sales, computer
ticketing, tele-booking, sales enquiries, customer service skills, cash handling
sales, credit card sales etc.
 Special well kept rooms for the employees
 Lastly, it is made sure that all employees represent Creek Drive-In in the best
way possible and sell it as a strong and well-established brand. All employees
are given full details on what they are representing and informed all about
Creek Drive-In to make them a part of the family.
For the customers’ convenience, it is ensured by the organization that there are no
loopholes. In case of any customer complaints, the employees are immediately
directed to report the same to their managers. The nature of all employees is very
friendly, informed, helpful, reliable, soothing, cheerful and youth-like. Therefore, the
audience can easily relate and communicate with them.
Page | 28
7.6 PHYSICAL EVIDENCE

Though customers cannot see a service, but they can definitely see various tangible
clues of the service offer like facilities, communication, objectives, employees, other
customers, price etc. On basis of these, he forms his opinion as they help us to
tangibalise the service. . Therefore, it is essential to manage physical evidence.
Atmosphere – helps to shape opinions. The building, layout, colors of interiors,
tickets, labels, logo of the organization etc help to formulate a good unified corporate
image / identity.
Physical
Environment
DESIGN FACTORS
SOCIAL FACTORS
AMBIENT FACTORS Aesthetics
Appearance, Beheviour
Air quality Architecture, colour and number of service
scheme, material etc) personnel
Quality of scent
Functional dimensions of Quality & quantity of
Degree of circulation
design in terms of layout, other customers
comfort etc
Ambient factors relate to background condition, deign factors, on the contrary are
visual stimuli and social factors relate to interactive environment. The service factor
has an impact on not only the customers, but the employees as well.
The interior and exterior of the premises is such so as to project a hygienic and well-
maintained image at all times. The administration offices, booking offices, candy
Page | 29
bars, conference rooms, auditorium, foyers, corridors, wash rooms, staircases, walls,
projector room, basement area – all coordinated and hygienically maintained.
Both the external and internal ambience is very important and is maintained
excellently, as it is important to appeal to existing and even to the potential
customers. At Creek Drive-In Cinema, it is equally important to keep employees
happy. Therefore, even the employee’s workplaces in the premises are coordinated
with the whole hall’s ambience and are lively.
Exterior – the movie hoardings, movie schedules, computerized service, glass
entrance, Creek Drive-In banner, parking, etc. all contribute to the external
environment
Interior – Proper spots for parking cars and seats in proper coordination, hygienic
wash rooms, candy bars, corridors, stairs, sound and visual equipment, design of the
hall, ambience etc are all included here. Attention to detail and stress on high quality
cinema viewing experience is evident from the unique seating arrangement that
ensures unobstructed viewing from anywhere in the establishment.
Plush, ergonomically designed seats have been installed to provide flexibility and
ultimate comfort to guests.
Convenient cup holders have also been installed on every armrest. Edge to edge
screens and digital sound will contribute in creating the ultimate movie going
experience.
Page | 30
Station concession counters which offer customers a wide selection of the traditional
movie going fare of sweet and salted popcorn, hotdogs and soft drinks, as well as
candy, nachos, fruit juices and Mineral water.
Peripheral – possessed as a part of service purchased e.g. Ticket, popcorn
Core – Those that cannot be possessed e.g. the experience of the movie
7.7 Process
Process involves distribution of tickets and the audience will gather in an establishment
with their cars and for the rest seating arrangements will be available. There will be a
complete entertainment and exciting experience that will be exuberant for all the visitors.
8 Financials
8.1 Initial Investment:
(N-1) P re pa id Expe ns e s :
P romotion (Media) (P er Month) Rs . 150,000 Yearly Rs. 1,800,000
Ins urance  Rs . 24,000  Rs. 288,000
R&D  Rs . 41,000  Rs. 492,000
TOTAL PREPAID EXPENS ES Rs . 215,000 Rs. 2,580,000
(N-2) Fixture s & P roje ctions

Lis t P rice: Rs . 9,000,000
add: S etup Cos t Rs . 850,000
add: Fitting Cos t Rs . 150,000
Cos t Price Rs . 10,000,000
De prec iatio n S c ehd ule (Bfixtures & Pro jections )

Dim inis hing Balanc e Me thod (40%)
Ye a r De pre cia tio n Ex pe nse Accu. De pre cia tio n W.D.V
2010 - - Rs . 10,000,000
2011 Rs . 4,000,000 Rs . 4,000,000 Rs . 6,000,000
2012 Rs . 2,400,000 Rs . 6,400,000 Rs . 3,600,000
2013 Rs . 1,440,000 Rs . 7,840,000 Rs . 2,160,000
2014 Rs . 864,000 Rs . 8,704,000 Rs . 1,296,000
Page | 31
(N-3) S urround-S ound S ys te m

Lis t P rice: Rs . 5,200,000
add: Ins tallation Cos t Rs . 775,000
add: Tes t Run & Check Rs . 25,000
Cos t Price Rs . 6,000,000
Dep reciatio n S cehd ule (S urro und -S ound S ys tem )

S traight Line Metho d (20 Years ) - S alvag e Value(Rs . 500,000)
Ye a r De pre cia tio n Ex pe nse Accu. De pre cia tio n W.D.V
2010 - - Rs . 6,000,000
2011 Rs . 275,000 Rs . 275,000 Rs . 5,725,000
2012 Rs . 275,000 Rs . 550,000 Rs . 5,450,000
2013 Rs . 275,000 Rs . 825,000 Rs . 5,175,000
2014 Rs . 275,000 Rs . 1,100,000 Rs . 4,900,000
(N-4) Ge ne ra tor
Cos t P rice Rs . 1,480,000

Add: Trans portation-in Rs . 10,000
Ins tallation Rs . 7,500
Tes t Run / Dies el Rs . 2,500
TOTAL COS T OF GENERATOR Rs. 1,500,000
Depreciatio n S cehd ule (Gene rator)

S traight Line Metho d (10 Years ) - S alvage Value(Rs . 250,000)
Ye a r De pre cia tio n Ex pe nse Accumula te d De pre cia tio n W.D.V
2010 - - Rs . 1,500,000
2011 Rs . 125,000 Rs . 125,000 Rs . 1,375,000
2012 Rs . 125,000 Rs . 250,000 Rs . 1,250,000
2013 Rs . 125,000 Rs . 375,000 Rs . 1,125,000
2014 Rs . 125,000 Rs . 500,000 Rs . 1,000,000
8.2 Land Details:

The proposed location was previously occupied by a welding firm which was forced
to shut down by the government owing to the noise pollution created in an
educational zone. For several years the structure remained vacant and transformed
into a dilapidated condition. However, its owner has recently renovated the entire
structure and it’s now available for rent. The ground is owned by Mr. Khawaja Iqbal
Ahmad, who is a non-resident Pakistani. Mr. Arsalan has been in touch with him
Page | 32
regarding the terms & conditions and soon a 4 year contract are going to be inked.
Luckily, M. Arsalan was able to make arrangements for semi-annual prepayments and
convincing Mr. Khawaja Iqbal Ahmad to waive any security deposit.
The ground is situated on the corner facing both the main University Road and the
side road leading to Gulshan Cooperative Housing Society. There is ample parking
space available at the rear end of the site.
9 Recommendation
9.1 Technological Innovation
Creek Drive-In will be at the forefront of the technology which involves in the Movie
business. Quality products will be used to enhance the movie watching experience of
the viewer. This attribute will resonate with the customers on a very large scale.
9.2 Once inside...Service must match the price charged…

Many of the audiences feel that some of the services inside do not command the
prices that is charged for them, example, even the first two rows in the theatre
command a price that is relatively higher than the normal. Most people feel that a
lesser price should be charged as sitting too close to the screen is not as good an
experience as sitting in one of the back rows. Also the prices charged at the food and
beverage counter are way above the MRP, which we feel is an undue premium that is
being charged. We as a group also feel that introduction of a food court that has a
variety of offerings, not just snacks but wholesome meals as well would greatly
improve the movie going experience as people would spend greater amount of time in
the theatre and the food court could work as an ancillary to the theatre.
Page | 33
9.3 Expanding reach…

Once a movie is past its prime and running in the second or third week where sales
are low, Creek Drive-In could do promotional campaigns and reduce the prices
marginally for one show a day. This would encourage more people to experience the
Creek Drive-In experience, especially those that are inhibited by high prices. For eg.
Special promotional campaigns for students for instance could help in attracting the
vast price sensitive student audience. Such promotions could happen once or twice a
month without diluting the superior brand image.
9.4 Riding high on sports…

Cricket is an obsession in Pakistan. Creek Drive-In could capitalize the same by
screening ‘hot’ matches live for eg. A crucial Pakistan-India match, World cup
semifinals/finals etc. The growing popularity of soccer and other sports can also be
tapped. This would be an instant hit even at very high prices charged. To add on to
the excitement we could couple this with cricket contests and give prizes like
paraphernalia with autographs of eminent sports-persons.
10 Conclusion
In the end we may conclude that this will be a lucrative venture, on a basic condition
of fulfilling whatever that has been promised to the customers of our brand. Being a
distinctive service provider, it will be our utmost priority to keep complete check and
balance towards best quality services and positive feedback. This all will be done with
the intention that the brand resonate with its consumer and continue having repeated
sale, as it will be a sign of positive prospects for the company.
Page | 34
11 Appendix-I
Page | 35
Page | 36
Page | 37
Brio Bars
Balance Sheet
AS S ET Initial 2011 2012 2013
Current As s ets :
Cas h Rs . 280,000 Rs . 4,784,513 Rs . 9,871,353 Rs . 15,936,801
Inventory Rs . 165,000 Rs . 533,640 Rs . 961,262 Rs . 1,457,304
Offic e S upplies Rs . 15,000 Rs . 15,000 Rs . 15,000 Rs . 15,000
P repaid Expens es (N-1) Rs . 2,580,000 Rs . 2,580,000 Rs . 2,580,000 Rs . 2,580,000
TOTAL CURRENT AS S ETSRs . 3,040,000 Rs . 7,913,153 Rs . 13,427,615 Rs . 19,989,106
Fixed As s ets :
Land Rs . 2,500,000 Rs . 2,500,000 Rs . 2,500,000 Rs . 2,500,000
Fixtures & P rojections (N-2) Rs . 10,000,000 Rs . 6,000,000 Rs . 3,600,000 Rs . 2,160,000
S ound S ys tems (N-3) Rs . 6,000,000 Rs . 5,725,000 Rs . 5,450,000 Rs . 5,175,000
Generators (N-4) Rs . 1,500,000 Rs . 1,375,000 Rs . 1,250,000 Rs . 1,125,000
TOTAL FIXED AS S ETS Rs . 20,000,000 Rs . 15,600,000 Rs . 12,800,000 Rs . 10,960,000
Rs. 23,040,000 Rs. 23,513,153 Rs. 26,227,615 Rs. 30,949,106
LIABILITIES
Current Liabilities :
S upplier Credit Rs . 290,000 Rs . 290,000 Rs . 290,000 Rs . 290,000
Non Current Liabilitie s :

Long-term liability Rs . 7,750,000 Rs . 6,333,786 Rs . 4,615,341 Rs . 2,530,166
TOTAL LIABILITIES Rs . 8,040,000 Rs . 6,623,786 Rs . 4,905,341 Rs . 2,820,166
EQUITY
Inves tment Rs . 15,000,000 Rs . 15,000,000 Rs . 16,889,367 Rs . 21,322,275
Add: Net P rofit - Rs . 1,889,367 Rs . 4,432,908 Rs . 6,806,665

TOTAL EQUITY Rs . 15,000,000 Rs . 16,889,367 Rs . 21,322,275 Rs . 28,128,939
Rs. 23,040,000 Rs. 23,513,153 Rs. 26,227,615 Rs. 30,949,106
Bas e Cas e
Dis count Factor 15%
Year Cas h Flows P VDF P VCF

2010 0 (Rs . 22,750,000) 1.0000 (Rs . 22,750,000)
2011 1 Rs . 4,504,513 0.8734 Rs . 3,934,072

2012 2 Rs . 5,086,840 0.7628 Rs . 3,880,048
2013 3 Rs . 6,065,448 0.6662 Rs . 4,040,605
2014 4 Rs . 20,834,384 0.5818 Rs . 12,121,566

NP V Rs. 1,226,292
IRR 16.52%
Page | 38
WORKING CAPITAL Cash Flow Details

Initial Investment in Working Cap $2,750,000 Reve nues (Units ) in 2010 64,000
Working Capital as % of Yearly Revenue 12.00% P rice (pe r unit) Rs. 300
Variable Expe ns e s as % of Revenue s 30%
Tax Rate on Net Income 35%
Growth Rate of Re venue 16%
Brio Bars
Cash Flow Analysis
Initia l 2011 2012 2013 2014
Inv es tm ent Outlays at Tim e Zero:
Fixed As s ets (Rs . 20,000,000)
Working Capital (Rs . 2,750,000)
(Rs . 22,750,000)
Operating Cas h Flows Over the Projec t's Life :
Re ve nue s Units 64,000 74,240 86,118 99,897
S ale s (Rs .) Rs . 19,200,000 Rs . 22,272,000 Rs . 25,835,520 Rs . 29,969,203
le s s : Expe ns e s
Varia ble Expe ns es (Rs . 5,760,000) (Rs . 6,681,600) (Rs . 7,750,656) (Rs . 8,990,761)
Fixed Expens e (Rs . 3,996,214) (Rs . 4,298,445) (Rs . 4,665,174) (Rs . 2,580,000)
To ta l Ope ra ting Ex pe nse s (Rs . 9,756,214) (Rs . 10,980,045) (Rs . 12,415,830) (Rs . 11,570,761)
Gro s s Profit Rs . 9,443,786 Rs . 11,291,955 Rs . 13,419,690 Rs . 18,398,442
Deprecia tion (Rs . 4,400,000) (Rs . 2,800,000) (Rs . 1,840,000) (Rs . 1,264,000)
EBIT Rs . 5,043,786 Rs . 8,491,955 Rs . 11,579,690 Rs . 17,134,442
Intere s t Expe ns es (Rs . 1,389,094) (Rs . 1,086,863) (Rs . 720,134) (Rs . 275,142)
Tax (Rs . 1,765,325) (Rs . 2,972,184) (Rs . 4,052,891) (Rs . 5,997,055)
(Rs . 3,154,419) (Rs . 4,059,047) (Rs . 4,773,025) (Rs . 6,272,196)
EAT Rs . 1,889,367 Rs . 4,432,908 Rs . 6,806,665 Rs . 10,862,246
Deprecia tion Rs . 4,400,000 Rs . 2,800,000 Rs . 1,840,000 Rs . 1,264,000
P ayment of Debt (Rs . 1,416,214) (Rs . 1,718,445) (Rs . 2,085,174) (Rs . 2,530,166)
∂ Work. Cap (Rs . 368,640) (Rs . 427,622) (Rs . 496,042) -
Rs . 2,615,146 Rs . 653,932 (Rs . 741,216) (Rs . 1,266,166)
Ope ra ting Ca sh Flo w s Rs . 4,504,513 Rs . 5,086,840 Rs . 6,065,448 Rs . 9,596,079
Term inal Y ear Cas h Flows :
Return of Ope rating Working Ca pital Rs . 4,042,304
Net S a lva ge Value s Rs . 7,196,000
To ta l Te rm ina tio n o f Ca sh Flo w s Rs . 11,238,304
Cas h Flo w (Rs. 22,750,000) Rs. 4,504,513 Rs. 5,086,840 Rs. 6,065,448 Rs. 20,834,384
Be ginning Cas h Balance Rs. 280,000 Rs. 4,784,513 Rs. 9,871,353 Rs. 15,936,801
Ending Cas h Balance Rs. 4,784,513 Rs. 9,871,353 Rs. 15,936,801 Rs. 36,771,185
Page | 39

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Creek Drive-In Cinema

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Creek Drive-In

Sunday, April 18, 2010

As authorized by our teacher Ms. Farah Ali Nawaz, we decided to

introduce a new service named Creek Drive-In Cinema.

company’s strategy to achieve success. Also included in this report is a

it will be providing. All information is presented in a very simple manner,

for the interest of a common reader.

This report consists of genuine and complete source of information on

M. Arsalan Sheikh (#7989)

Ahsan Bham (#8106)

Abdur Rehman (#8033)

Naresh Manglani (#6712)

Kaivan Afshari (#7668)

Ms. Farah Ali Nawaz

Dear Ms. Nawaz:

All the information provided in the report is comprehensively discussed

M. Arsalan Sheikh (#7989)

Ahsan Bham (#8106)

Abdur Rehman (#8033)

Naresh Manglani (#6712)

Kaivan Afshari (#7668)

reached its stage of final completion. This report is a result of exhaustive

us, importance of which can in no way be under estimated.

We are equally grateful to Iqra University for providing us the

opportunities to pursue our endeavor. We also appreciate the students of

Iqra University, who assisted us in providing us all the necessary

information and feedback that we required for completing this task.

efforts put into it.

M. Arsalan Sheikh (#7989)

1.1 Industry overview................................................................................................2

1.2 About the Company.............................................................................................4

1.3 Mission Statement................................................................................................5

1.4 Vision Statement..................................................................................................5

2 Market Analysis Summary.........................................................................................6

2.1 Segmentation, Targeting, and Position...............................................................7

3.1 Sales forecast......................................................................................................11

3.2 Estimated Demand.............................................................................................12

3.3 Company Sales Forecast....................................................................................12

5.1 THREAT OF COMPETITORS........................................................................15

5.2 THREAT OF SUBSTITUTES..........................................................................16

5.3 THREAT OF NEW ENTRANTS.....................................................................16

5.4 SUPPLIER POWER..........................................................................................17

5.5 BUYER POWER...............................................................................................18

6 Ansoff’s Product-Market Expansion Grid..............................................................19

7 Marketing Mix – 7 P’s.............................................................................................20

7.1 SERVICE PRODUCT/ SERVICE PACKAGE...............................................20

7.3 PLACE / DISTRIBUTION...............................................................................24

7.6 PHYSICAL EVIDENCE...................................................................................29

8.1 Initial Investment:..............................................................................................31

8.2 Land Details:......................................................................................................32

9.1 Technological Innovation..................................................................................33

9.2 Once inside...Service must match the price charged…...................................33

9.3 Expanding reach…............................................................................................34

9.4 Riding high on sports….....................................................................................34

1 Introduction & Background

consumption spending is rising due to increasing disposable incomes on account of

and entertainment than on necessities.

Film, unarguably, is the most important and influential means of entertainment,

films, television films and even amateur films.

1.1 Industry overview

produced by a single studio. Other productions would be independent of any studio

usually financed by the filmmakers themselves

to play a lead-role in one of his films.

financiers left the cinema industry of Pakistan.