Siam Elements

Aquisition and relaunch of a multiplex cinema

Relaunching an aged multiplex cinema

Bringing one of Germany’s first multiplex cinemas in a rural area back on the map.

  • VENTURE:

    aquisition, re-launch and operations

  • TYPE OF BUSINESS:

    fully owned

  • PROJECT:

    www.cine-royal.de

  • TASKS:

    Strategy, Corporate Identity, Marketing, Interior Design, Operations

Situation prior aquisition:

Cine Royal, a cinema that was opened in 1999, has been a success since its very first day of operation. However, after 10 or 12 years, the previous owner began to notice that the cinema was not as attractive to the younger generation as it once was. While it continued to draw in older guests, it failed to capture the attention of the majority of younger people. Despite investing heavily in new cinema technology over the years, the cinema’s popularity among young people continued to wane.
In addition, the previous owner noticed that on busy days when the cinema was well-attended, the concession sales per customer were lower than on other days where he had less guests.

Before:
Aged interior, cluttered spaces

Before:
outdated design, lack of customer friendly ambience

Analysis:

After conducting a thorough location analysis, we discovered that the cinema was still located in an affluent catchment area, and both older and younger generations in the area continued to go out and have fun. However, we also found that the previous owner had only invested in cinema technology and had never invested in the visual aspects that customers see and touch. The younger generation places more value on aesthetics and has a higher expectation of design and quality. Since the previous owner had only invested in technology and not in the appearance of his cinema, the cinema start to became less attractive to the younger generation.
And after examining the numbers of his concession sales per customer, we also noticed a significant difference between days with 600 visitors and those with 1,500 visitors. We then looked at the physical layout of his counter and the sales procedures of his employees, and discovered that both were the cause or at least play a bigger part of his situation with his concession sales per customer.

Taking action

A complete overhaul.

Solution:

Given the previous owner’s age, he was unable to implement a completely new concept to revive the business. Therefore, we made the decision to purchase Cine Royal and apply our own expertise and resources to revitalize the cinema. We implemented a completely new interior design for the reception area and reorganized the counter layout with additional sales points. We also fundamantally re-organized and re-structured the counter area for the employees to reduce their work steps and walking distances overall increasing the workload capacity 2.5x fold.

Following these changes, we launched a comprehensive image advertising campaign on all media platforms. Additionally, we developed new cinema event concepts tailored primarily to the younger generation but also appealing to the older generation, and successfully integrated them into the cinema program.

Software solutions: