Cinemex Case Study - 821 Words

a) The opportunities that made Cinemex’s success possible was: - The collapse of the Mexico economy allowed the owners to buy land at a cheaper price, and also help run off competitors - Since all theater had the same films, they focused on the quality of the theater as a form of differentiation (bigger and better screens, carpeting, emergency lights on floors, attractive marquees), while this was standard in the USA, this was new to Mexico - Candy shops were located in the complex, and employees were trained to be polite and provide quick service - Cinemex was the 1st movie chain to allow customers to purchase and reserve their tickets by the web and their phones - Only chain that had 100% digital sound *While these opportunities†¦show more content†¦I would assume that even if his attendance increased, he was offering a lower price so he wouldn’t be bringing in as much money to increase the total revenue, along with the price of tickets dropping I would assume that his revenue dropped. d) The 2 for 1 deal would be better for exhibitors than a straight reduction in price, because with the deal you are able to double the attendance which allows consumers to see more of what you have to offer. Consumers are always looking for a bargain, so a 2 for 1 deal will appeal to the customer more than a reduction in price, as they perceive that they are getting more than what they are paying for. Consumers will feel as if they are saving money, which may help increase sales in refreshments. e) I believe that matching the 2 for 1 deal, was not in the best interest of Cinemex. While it did help boost attendance, Heyman is cutting the prices of the tickets drastically since implementing which in turn cuts down his revenue. Even after his competitors initiated the sale, Weeks 27 – Week 34, Cinemex showed a steady increase in attendance before even implementing the 2 for 1 deal. There are so many outside factors that can help determine the attendance at a movie theater (ex.popularity of films, weather, location, time of year). With the special, more consumers will attend the movies on a Wednesday when they are receiving the deal, which slows down your revenue for the remainder of the week. While Cinemex is