CINEMAS Are In The RETAIL BUSINESS

Movie theatres, whether or not they want to recognize it, are in the retail business. They deal directly with the public, and market/sell a product called a movie.  They have no control over the making or distribution of the products they sell but they do have control over how that product is delivered to the end-user and have the responsibility of selling 'ancillary' or 'accessory' products.  In the case of cinemas those ancillary products are popcorn, soda, and candy bolstered by other concession items.

These concession items are where cinemas make all of their profits, as the admission revenue - shared with the movie's distributor - only contributes to overhead costs.
However, this business model is not unlike what many retailers face - from car dealers to big-box stores - selling the big ticket items at or near cost and making large margins on the ancillary or accessory products that compliment the larger purchase.

In retail, the name of the game is to segment the market, in most cases by age and/or gender, and target your marketing and advertising programs toward that group.  All advertising is based on one of three components or a combination of the three, which are: sex, fear, or novelty. In addition to 'basing' your marketing, segmenting potential buyers (consumers), is essential.  Be it for a 'point-of-sale' lobby display or advertised coupon discount, cinemas should know the breakdown of their 'moviegoers' so as to stay relevant and meet the evolving social and product needs of Generations X, Y, and Z, as well as, Baby Boomers and the Silent Generation.

Generation Z  Born: 2001 - present, Age: 13 or less
Generation Y  Born:1980 - 2000, Age: 13-33 (referred to as Millennials)
Generation X  Born: 1965 - 1979, Age: 34-48
Baby Boomers Born: 1946 -1964, Age: 49-67
Silent Generation Born: 1925 - 1945, Age: 68 - 88

So, determining the make up of a cinema's customer base provides great insight into their buying needs and desires, and presents the foundation for your cinema's marketing and promotion.

Start today,
Jim Lavorato