Carmike Cinemas Competition
Now Viewing Carmike Cinemas's competition in: Movie Theatres (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What types of consumers does the company target? - Theatres often target consumers by demographics, income, or special interests.
What media does the company find most effective for marketing movies? - Major types of industry marketing are newspaper ads and movie schedule listings, and Internet advertising.
How satisfied is the company with the extent of promotional help it receives from distributors? - Film distributors pay for most newspaper ads and for radio and TV spots to promote special movies and events, while theatres pay for newspaper directory listings.
What are the company’s current ticket and concession prices? How competitive is the pricing? - Typical prices nationwide range from $5 to $10 for admission and $2 to $6 for a drink, popcorn, or candy.
How important is non-movie competition for the consumer dollar and leisure time? - Theatres compete with other forms of leisure activity, including non-fee activities like sports participation and hobbies, and for-fee entertainment like concerts, sports events, and amusement parks.
How effective a marketing and sales tool is the company’s website? - Theatre websites enable customers to see previews (“trailers”); read about actors; access schedules; and buy advance tickets or gift cards.
What marketing advantages or challenges do competitors have? - Large chains often have promotional programs with distributors that include moviegoer contests; third-party cross-promotions, such as merchandise sales; and radio, TV, or cell phone ads.
Competitive Landscape
Personal income and leisure time drive demand. The profitability of individual companies depends on securing access to popular movies and sales of high-margin food and beverages. Large companies have advantages in negotiating with movie distributors; marketing; and economies of scale in purchasing. Small companies can compete effectively by specializing in movie type or audience, or providing better service and amenities. Average annual revenue per worker is $80,000.
Business Challenges
CRITICAL ISSUES
Dependence on Movie Production, Distribution Companies - Theatres rely on movie production companies and distributors for films, license rights, and marketing. Theatres need movies that appeal to local markets. Distributors decide which venues can license specific films, so theatres’ relationships and negotiations with movie suppliers are important. Theatres increasingly depend on production studios and distributors to market first-run films. A studio’s or distributor’s problems, such as strikes or finances, can directly affect theatre revenue.
Dependence on Consumer Spending - As a discretionary spending item, movie-going depends on personal income and competes for the consumer dollar with other forms of paid entertainment. Changes in average national income typically indicate fluctuation in movie theatre business. When consumer spending is healthy, theatres typically increase per-customer revenue through concession sales.
Industries Where Carmike Cinemas Competes
- Leisure
- Entertainment
- Movie Theaters(primary)
- Entertainment
