Cinema Business Proposal

EXECUTIVE SUMMARY

Nowadays, Kampar is lacking of entertainment and if the citizens in Kampar need to go cinema to watch movie, they need to go to the nearest cinema which is located in Ipoh. They have to travel almost 1 hour to Ipoh which is wasting their time and cost. So, we decided to buy a land to build a cinema near the New Town at Kampar, Perak to solve this problem. We estimated that this cinema will be fully constructed in one of the year.

We named our cinema as "Diamond Screen Cinema". The name of "Diamond" shows the elegant and the specialty of cinema since this is the first cinema that built in Kampar. We will start setting up our business start from 12/12/2010. At 1/12/2011 we are able to open our cinema's hall and start to do our business.

To start our business, a few steps are taken by us. Firstly we do marketing research and start to search the venue to build our cinema. After that, we will start to secure papers such as licensing and permits to operate the business. We also need to contract with concessionaires, movie studios, film makers, and advertisers. We also do, buy and prepare the list of equipment .Then we start to hire employees. After that, we start advertisement to promote the cinema. Finally, cinema can start operate in Kampar.

Our company's Diamond Screen Cinema is a reliable and licensed company. It is opened for citizen in Kampar to release their tension. The motto of our company is "Go Bright, Go Shine, and Go Future". The mission of our company is "to become a grant cinema for showing movies". The vision of our company is "Cinema will be the most comprehensive entertainment company in Kampar by bringing happiness and laughing to everyone".

The main product of our cinema is providing films to customer watch in cinema. While our service is providing transportation service and services that deliver food and drinks to the customers by the staff if the customer using our ordering system of the theatre seats.

Our feature have special seat with vibration and orderings system , order foods or drinks inside the hall using machine on the seats, vending machines, Samsung LED Plasma screen ,Pioneer live audio speaker system, subtitle supported ,ticketing system computer program, online booking and annual membership card. The benefit is audience can enjoy watching films by enjoy all the features in the cinema.

Our cinema will produce many types of film to satisfy customer needs and wants because different category of customer might require different types of films and services. We will focus more to provide more Chinese and English language films because we find out that our customer mainly is Chinese.

At the promotion, we are going to use electronic media, print media, internet advertising and flyers to promote our product and services. Moreover, our cinema will organize some community event and themed cinema night to attract more customers.. Business card also provided to the customers. Throughout all the promotion, we hope to give an elegant, systematic, and trustable image to the customer just like a diamond as our cinema names Diamond Screen Cinema.

The price for tickets in our cinema is different for members and non members. To become a member of our cinema, customers need to pay an annual membership fee of RM10 for adult and RM5 for concessions and kids. The roughly price of the ticket for new releases films is RM12 per person for non members and RM10 per person for members. For others films we set the ticket price as RM10 per person for non-members and RM8 per person for members. For concessions, we will set the tickets price of RM8 per person for non members and RM6 per person for members. We also set different prices for kids which is RM6 per person for non members and RM 4 per person for members.

Our cinema will be located near the Kampar, Perak New Town. Our starting cost is RM7, 200,000 while our running cost is RM2, 307,000.

In this business, our company would hire around 35 people. Our company would intend to hire different level of staff such as Video/Audio Processing Manager, Advertising and Promotion Manager, Supervisors, Trainee, Accountant, Cashier, clerk, Security guards and driver.

INTRODUCTION

Nowadays, there are many citizens in Kampar which is a small town. Not counted the Kamparian, there are almost 15000 of students from Universiti Tunku Abdul Rahman (UTAR) and College Tunku Abdul Rahman (KTAR) stayed in Kampar New Town. In this case, the population is keep increasing, but the number and type of entertainments here still maintain and has not been improved. We find out that this town is lack of entertainments,. For your information, there is no cinema in Kampar area and even the nearest cinema is in Ipoh. This is totally inconvenience for Kampar citizens to watch a movie in cinema because they have to travel almost 1 hour to Ipoh which is wasting their time and cost.

With this problem, we decided to buy a land in Kampar New Town to build a triple-storey cinema. We named our cinema as "Diamond Screen Cinema". The word "Diamond" shows that our cinema is elegant and valuable because of the services we provided for all the customers where they can enjoy and relax in the cinema.

Moreover, cinema is giving chances to Kampar's citizens and students to enjoy movies as one of their entertainment in Kampar. It is also convenient for them because they don't need to travel to Ipoh to watch a movie in cinema after the development of our cinema in Kampar. They can have a better choice to choose to watch a movie during their free time. In addition, it helps to release their stress and even decrease unemployment rate in Kampar.

The cost of starting the Diamond Screen Cinema is around RM7, 200,000 which includes business registration fees, fixed assets, machines and furniture. The running cost for Diamond Screen cinema is around RM2, 307,000 which includes the operating costs, wages and salaries, employee salaries, bank loan and other expenses.

We choose to build this business in Kampar for all the investors to invest in this business because we trust this can brings profit to all investors due to the lack of entertainment in Kampar that cannot satisfy customer needs and wants. As a result, we hope that we can get investment from investor to start our cinema business.

Statement of the problem

Kampar is located in the state of Perak which is a very small town. There are a lot of citizens who are staying in Kampar. Nowadays, especially now there has Universiti Tunku Abdul Rahman(UTAR), almost 15000 students included Tunku Abdul Rahman college(