EdgeMark Cinemas are a chain of movie theaters located in 37 states with 475 theaters in those states covering the west coast, east coast, and Midwest. EdgeMark’s profits, like other cinemas, have been in a small but constant decline over the last 12 years. Industry Wide Average of 2.05% ticket sales decline per year for the last 12 years also, when adjusted for inflation, revenue has dropped an average of 1% a year for the past 12 years (Domestic Movie Theatrical Market Summary, 2015). The chain is currently looking to increase ticket sales, loyal customers, and profits by adding additional products and services.
New Services Marketing executives for EdgeMark have proposed two new services, which are premium memberships and special viewings. These services are aimed at increasing patronage by loyal customers, and enticing new customers to become loyal patrons. Both services will be easy to setup and operate and will add to profitability for years to come. These new services are both feasible and will enhance the cinemas profitability in the following ways: ▪ Little cost to initiate and operate ▪ Added profit from membership fees and additional ticket sales ▪ Added profit from additional food and beverage sales ▪ Increased patronage by loyal customers ▪ Increased numbers of new loyal customers ▪ Higher gross margin on certain new services, such as screening older movies
New additional services will also confer competivie advantage in terms of offering services direct competitors do not offer as well as the possibility of luering new patrons into becoming loyal customers. Because upscale premiere movie theater, which are only located sparsely throught out the Unites States
