Texas Theatre Marketing Plan

The Texas Theatre Marketing Plan
The Texas Theatre Marketing Plan

Group G: Thiri Khit, Kaylee Gross, Quynh-Huong Duong
April 23, 2015
Texas Theatre Marketing Plan

1.0 Executive Summary
The Texas Theatre is a well-established single-screen theatre that offers its visitors a
unique classical cinema experience. Located in Oak Cliff, just outside of downtown Dallas, the
theatre was established in 1931 and has been around for over eighty years. Since being acquired
by Aviation Cinemas in 2010, the theater has established a respectable reputation. The theatre
currently attracts a niche demographic of people interested in lesser-known artistic events and
films. It also caters to those budding filmmakers who seek advice and feedback in their different
stages of production. Although there are several smaller movie theaters in Dallas, one advantage
the Texas Theatre harbors over its direct competition is unparalleled history in connection with
John F. Kennedys assassination. However, many younger individuals are not fully aware of the
films and events the Texas Theatre has to offer. These individuals primarily the late teens to early
twenty year olds have yet to build families of their own giving them more disposable income to
spend. This particular segment is also one of the highest population of movie-goers in recent
years, and is consistently searching for opportunities to experience uniquely themed events.
Current trends indicate a shift toward all digital formats; many people look online for
films instead of going out to theatres. The pressure felt by mainstream theatres will not be felt as
adversely by The Texas Theatre as its offering are centered more so on the experience combined
with the film itself. The amenities (food service, upscale bar, filmmaking facility) the theatre
provides, coupled with the historic, one-of-a-kind cinema ambiance will continue to attract a
consistent stream of satisfied customers. Another consequence of the shift to an online
environment is the increased importance of word-of-mouth. The Texas Theatre is particularly
aiming to create awareness amongst college students, ages 18-24.

There is high potential to reach the younger demographic through an aggressive yet
focused marketing campaign. Through the combined use of social media, collaboration efforts
with local organizations and building customer relations, the theatre can spread awareness and
improve the overall experience offered. These strategies, combined with a well-defined business
model and the historical significance in the greater Dallas area, will propel the company into
higher revenue opportunities moving forward. The business can flourish in a modern world that
is continuously searching for experiences of the past. The Texas Theatre plans to be there to
address this growing need.

2.0 Situation Analysis
Located in Oak Cliff, The Texas Theatre opened in 1931. With over 80 years of history, it
is primarily known as the theatre Lee Harvey Oswald escaped to in 1963 following the
assassination of former President John F. Kennedy, the place where Oswald was ultimately
caught. The cinema underwent several structural and corporate changes in the preceding 50 years
as noted on the companys Web page.
According to a Seed and Spark fund-raising campaign, since Aviation Cinemas Inc.
acquired the theatre in 2010, the company renovated the theatre to its current state by installing a
35 mm changeover system, projection devices and a retractable 40 inch screen, upgrading to
Dolby Digital sound, building a full-scale bar and revamping its classic image (Help the Texas
Theatre get Digital Cinema! 2015). Aviation Cinemas plans to further enhance the theatre with
Digital Cinema Projector (DCP) and similar equipment. Currently, the theatre has one screening
room that can seat 645 persons and shows new independent films as well as restorations of older
films. As The Texas Theatre at Oak Cliff undergoes a new marketing campaign, it is of primary
importance that thorough records are kept in tracking the effectiveness of each individual
marketing strategy. The company expects substantial growth in awareness amongst younger
demographics. The key focus will be on branding the business through customer engagement,
partnerships with various organizations and social media outlets targeted to these particular
groups.

2.1 Market Summary
The Texas Theatre has potential to attract a specific market, which it has yet to reach. This
target market for the Texas Theatre is both male and female college students, ages 18-24, who
are located in the Dallas metroplex, primarily, the students of the University of Texas at Dallas
and Southern Methodist University.
Although the audience could vary greatly in terms of race and ethnicity, the ideal target market
shares a common liking for underrepresented arts and are loyal, avid film watchers. As the new
cool trends towards classical themes, the theatre has much potential in attracting this specific
niche. Fast-paced viral marketing strategies are particularly effective for younger groups;
therefore there are high expectations that these markets will be quickly reached by the theatre.
2.1.1 Market Demographics
Geographics
o Male and female college students (part-time and full-time) ages 18-24
o In 2013, ages 18-24 had the second highest population of moviegoers
The highest population percentage was ages 25-39
o Word-of-mouth marketing is one of the fastest ways to market a product or

service, especially on college campuses
o The theatre is targeting those who have a discretionary income.
In 2011, about 52% of college students work part-time while nearly 20%
worked full-time.
o Direct families of targeted students will be an indirect marketing target

o Other Adults
2.1.2 Market Needs
The Texas Theatre has a high quality selection of movies to screen.

o The selection of movies the theatre shows have good reason
They have influential (historical, social, artistic, etc.) impact
For example, this month the theatre will be screening
Out of Print
A documentary striving to preserve the 35 mm film

format and revival cinema
Selena
A story about the singer, Selena Quintanilla-Perez,

who was shot and killed holding historical and
artistic influence.
She influenced other Latinos with potential to

assimilate into mainstream American culture
without having to leave their deep-rooted culture
behind.
Literary Death Match
A live show with four authors reading their most

electric writing for seven minutes or less in front of
a panel of distinguished judges.
It gives a chance for writers around Dallas to

showcase their work and share creative stories.
o The theatre shows high in demand classic movies that are

no longer shown in mainstream theatres.
For example, Citizen Kane, which is considerably one of the best films in
history
o The theatre also occasionally shows larger, highly
anticipated films
This May it will be screening Avengers: The Age of Ultron over several
days
2.1.3 Market Trends
The company will market movies (in addition to screening movies popular among college
students) not available in other typical movie theatres
o Host video gaming events
Have video game competitions (i.e. Mario Kart) using the big screen
o Have a Movie-Con
Dress up as favorite movie characters and meet other moviegoer fanatics
The big movie theater companies have moved toward an all digital format
Online streaming of movies has become more and more common
2.1.4 Market Growth

According to the IBISWorld report for the Movie Theater industry from 2014, per capita
disposable income is projected to grow steadily in the next five years. By 2019, it will have
increased by almost 12%. Per capita disposable income is a key economic driver for this
industry as a whole (Ulama, 2014). Although the Texas Theatre targets a niche market,
disposable income still influences its ticket sales; simultaneously, the number of establishments
and enterprises has been declining in recent years, which will allow only the fittest or most
qualified movie theaters to survive. Given the 84 year-long history of the Texas Theatre, its
current status as a historic and unique theatre is impregnable.
According to a 2009 IBISWorld report also on the US Movie Theater Industry, single
screen theatres made up 32% of the industry in 2007. Although the number of screens increased
by 0.3%, the number of theatres (locations) decreased by 0.3% as well. This is relatively low
compared to the percentage changes for mini and multiplexes in the same time frame, which
respectively are 2.8% and 2.6% decreases in number of theatres. (IBISWorld, 2009).
2.2 SWOT Analysis

2.2.1 Strengths
Has a full-scale bar and classic movie palace ambiance
Historical significance as the theatre where Lee Harvey Oswald was caught
Provides booking and film screening options
Oak Cliff Film Festival, Dallas International Film Festival
2.2.2 Weaknesses
Single screen
Movies are only offered in the afternoons and evenings
Located in a shady part of Oak Cliff with inadequate security or potentially unsafe
surrounding lighting and parking
2.2.3 Opportunities
Focus on younger generations with an interest in older, classical technologies (namely 35

mm film format)
Partnership with local companies and stores
Collaborate with university organizations/clubs
Host workshops and classes for film making
2.2.4 Threats
Other locations that provide similar service offerings like the Angelika Theater, Kessler
Theatre among others pose internal industry competition
Downtown Dallas is very near Oak Cliff. The area is constantly competing for the
attention of the targeted demographic, young college students. Downtown has countless
venues which offer stimulating and unique activities for which college students are
consistently being marketed towards.
The location of the theatre has a high-perceived crime rate which poses a risk to potential
business.
2.3 Competition
The Texas Theatre faces competition in several industries and subcategories from direct
competition and indirect substitutes. As a form of entertainment, other recreational activities
around the Oak Cliff area could take its place. There are also quite a number of smaller theatres
in the Dallas metroplex area that a more similar offerings to the Texas Theatre of an intimate
atmosphere and lesser-known films. These would be Angelika theatres, The Inwood, The
Magnolia, Alamo Drafthouse, and other model theatres that have been exceptionally successful

in this niche. There is also always the option of not watching a movie. The theatre needs to
provide a selection that appeals to their targeted audience enough so they go out and spend their
discretionary income on movie tickets rather than this alternative of doing nothing.
2.4 Service Offering
The Texas Theatre has a distinct advantage in that the company can spend its time and
energy focusing primarily on a singular service. This service is a classical cinema experience for
the customers. By focusing on a specific niche, the company will be able to produce the best
product for those it serves. All of the theatres business decisions will be focused on maximizing
this particular customer experience. The classical movies offered cannot typically be viewed at
many other theatres in the area. The company provides special events year-round, ensuring the
theatre is consistently offering some variety for its regular customers. These events consist of
Q&A panels, special screenings, live performances and spoken word among others.
There are also many resources for movie production at each of the different stages in the
movie making process such as hiring cast and crew members, equipment rental and editing.
Another service offered is the ability to rent the entire theatre. This is an opportunity not just for
aspiring filmmakers to test and showcase their films but the room can be used for other events
(e.g. parties, receptions, video shoots) as well.
One more appealing feature is the full-scale bar put into place in 2010 as a means by
Aviation Cinemas to update the interior, which is well favored by frequent customers, and further
sets it apart from other local theatres. This bar area caters to those interested in social drinking
and can substantially increase revenue.
2.5 Keys to Success
Developing visibility to build awareness amongst UTD and SMU students
Creating strong partnerships with local businesses (those near the Bishop Arts District) to
promote and facilitate business in surrounding areas. These partnerships will establish a
lively, sociable environment and build customer loyalty.
Enhancing customer service. The communication between the theatre and its customers is
essential to understanding the customers needs.
Offering promotions on ticket prices for early showings or rewarding frequent customers
through loyalty programs
Staying true to the brands classical cinema experience that has allowed the theatre to
stand out from the various competition in the current market
Employing strategic plans for technological improvements like the recent funding efforts
of the DCP through Seed and Share to keep up with market trends
2.6 Critical Issues
Internal Factors
o Brand itself as a prevalent movie theatre
People generally think of the Texas Theatre as an old theatre. The theatre
needs to enhance its current image into one that people will want to and
can identify with.
o Customer relationship management
The theatre needs to establish a good relationship with its customer base.
If there is a lack of proper communication then the company most likely
wont address and meet the customers needs, which is essential for a
small theatre like the Texas Theatre.
o Increasing social media presence and upgrading company webpage to keep

customers informed
This will also allow the theatre to obtain timely feedback from customers
and ultimately improve its service offerings
o Consider branching out by showing more mainstream indie films or even

blockbuster movies to initially draw in the target audience
The company needs to remember to balance this with the qualities that
already set it apart from the competition
External Factors
o Direction competition local, small theatres that are growing in popularity
o Lower prices at competing theatres
The company has to keep at a constant price (for the most part) because of
the one theatre (single screen) the theatre relies on to uphold business.

3.0 Marketing Strategy
3.1 Mission
To consistently provide a timeless cinematic experience in Oak Cliff through independent
films, the local music scene, and other entertainment as well as provide budding
cinematographers a means to efficiently produce and exhibit their films, while preserving a
historical landmark.
3.2 Marketing Objectives
Maintain a monthly 1.5% growth of Texas Theatre Facebook page

o Currently, the page has 10,803 total likes
Reach 10,000 Twitter followers by the end of 2015
Organize at least one event in conjunction with UTD or SMU every quarter
Provide at least 12-14 films/events per week, allowing around 2 showings each day
o The Texas Theatre does not run on a constant and continuous weekly or monthly
schedule. By arranging a consistent schedule, marketing and financial objectives
will be met. For example, the week of March 29th, the theatre currently has 3
shows on Sunday, but no other showings until Thursday.
3.3 Financial Objectives
Employ and earn another $50,000+ through a Seed & Spark Campaign to fund
technological upgrades in Q4
Raise annual gross revenue of $500,000 to $550,000, a modest 10% in growth, by

December 2015
3.4 Target Markets
The Texas Theatre will primarily target college students (approximately ages 18-24)
attending Southern Methodist University and the University of Texas at Dallas
o Those already interested in what the theatre has to offer
o Those interested in exhibiting their own films surrounded by a community of
independent filmmakers
o The Texas Theatre is choosing this demographic because they are highly involved
with social media, sharing their experiences constantly, which is easy and fast
word-of-mouth marketing. Their social networking will be increasing the theatres
traffic and social media exposure.
89% of marketers said that social media has generated more exposure for
their business
Increase awareness amongst those who dont know about the Texas Theatre
o Many people who think of The Texas Theatre remember it as a historical
landmark, but usually forget it shows films and holds events on a regular basis.
3.5 Positioning
The Texas Theatre aims to maintain its status as a quality theatre, which screens films not
offered anywhere else in the Oak Cliff area, holds artistic and theatrical events on a weekly basis,

and provides a unique filmmaking facility. It intends to serve the niche market for viewers of
independently made and restored classic films as well as those small time filmmakers interested
in producing and exhibiting their work. The full-scale bar and intimate ambiance of having only
one screen have allowed it to stand apart from its direct competition and deliver a cinematic
experience. It must continue to set itself apart as more than a place to watch movies but as a
whole experience, from the welcoming bar and bartender in the lobby to the vintage velvet,
wooden seats. To achieve this positioning, building customer rapport and overall awareness of
how the Texas Theatre differentiates itself from other individual theatres is essential.
3.6 Strategies
Increase awareness amongst potential customers through developing better relations with
local universities
o By posting flyers on bulletin boards and by visiting the campus, setting up a booth
and directly advertising at the students
A way the booth can draw attention is by holding a drawing for free tickets
or a voucher for food or drinks. Nothing draws in college students better
than something that says free in front of it.
o On UTDs campus there is a UTD TV and Radio organization. This will give us a
chance to reach those who listen or watch, and are interested in movies and
artistic events.
o SMU also has a highly acclaimed music and theatre program
Contact local organizations, institutes or companies in the area to partner with

o Consider working with The Sixth Floor Museum to offer an educational package
on JFKs assassination

o Will help develop awareness amongst wider demographic
Enhance social media efforts and acquire timely feedback online from customers
3.7 Marketing Mix
Price
o Comparable pricing with competing small theatres ($10-$20 a ticket depending on
the particular event) to keep up with industry norm
o Special pricings for the weekdays and morning.
The Texas Theatre screens movies solely in the evening starting at 6 PM.
Having morning or early afternoon screenings on the weekends will reach
a larger audience and give more opportunities to catch shows or events.
o Senior and student discount
The difference between a regular ticket and senior/student ticket is $1.50,

making it more affordable, but still able to reach financial objectives at
this price point.
o Family discount
This discount will make it a reason why a family of 3 or more should drive
far into Oak Cliff for a movie or event.
Promotion (Advertising)
o Increased social media presence on various platforms already in place
The Texas Theatre nearly has 8,000 followers on Twitter and 2,000 on
Instagram, both of which can be used as a source to quickly advertise the
weeks shows.

o Update company website and maintain timely purchasing avenues for customers
o Flyers and posters around said campuses (UTD, SMU)

o Free movie event for once a month
If not a free movie event for all customers, then a frequent visitor card for
those who do come back. After a certain amount of visits or ticket
purchases, the customer receives a voucher for a free movie or drink,
leading to an increase in turnover rates.
Place (Distribution)
o As the Texas Theatres main offering is a service, distribution would be direct
distribution to its customers at the theatre itself
Customer service
o The Texas Theatre aims to meet its personal standards of customer service that
has and will continue to build a loyal following amongst its customers
3.8 Marketing Research

According to an online article from IndieWire magazine, the author notes to maintain a
successful arthouse theater the organization must focus on its brand and sense of community
(Kaufman, 2011). It must go beyond offering a movie and deliver an experience. To do this, he
mentions not just providing food and drink but also eventicizing the offerings with
performances and activities that supplement the film. Another strategy offered from a
programmer of the Belmont Theatre is to find balance between obscure and mainstream
arthouse movies. The article emphasizes understanding ones audience to build a strong

following to the point the whole neighborhood relies on as a source of entertainment, income,
and buzz.
In order to develop a specific marketing strategy to meet the Texas Theatres goals, it
must first note what people are currently saying about it. The theatre intends to target younger
audiences who value new experiences and have a large social circle for which they can influence.
This is typically the case of many college students in the Dallas area.
The historic Texas Theatre was named in the Best of Big D awards as Best Movie Theater
in 2012 and 2013, and the Best Venue for Live Music in 2014. It was also featured on the
magazines 2011 list for The Things Every Dallasite Must Do. The theatre has an outstanding
reputation already in place and primarily needs to build awareness or visibility in the targeted
markets. As it will utilize word-of-mouth to do so, online reviews must be heavily considered.
On Yelp, the organization was given 4.5 stars (on a 5 scale) based on 58 ratings. The few
recurring negative comments were regarding the food (or lack thereof) and uncomfortable
seating inside the single theatre. Most reviewers admired the theaters vintage atmosphere and
the offbeat movies they offer. The bar is also popular amongst customers. Many state they know
of the historical significance of the venue and wish they had visited the theater sooner than they
had. One comment from Yelp described a museum experience (because of the original decor), a
night at the movies and cocktails all in one. (Yelp, 2012) Listening and more importantly acting
upon the feedback, both good and bad, will enhance the overall customer experience. And as
Kaufman wrote, the experience is what matters when it comes to these arthouse theatres.
Some people in the Dallas area who have attended the theatre have provided personal
feedback detailing what stood out in the experience. One comment received stated: The great

thing about the theatre is that from the time I arrived, I felt the historic significance of the theatre.
After watching a film from several decades ago, I felt immersed in the theme of the place. Not
many places have offered such a unified experience. Such comments make it clear that
marketing efforts should be wholly focused on giving future customers a small insight into the
potential experience.
There are positive characteristics that make the Texas Theatre stand out from its direct
competition, the Kessler Theatre and the Angelika Film Center. The Angelika certainly offers
historic films, but the appearance of the building and the location near Mockingbird doesnt align
as well with a historic theme. Additionally, the Angelika Film Center, being founded in 1942,
does not hold the same historical weight as the Texas Theatre which has over 80 years of history.
The Kessler theatre, founded in 1942, has more historical weight, yet still falls short in rivaling
its eighty-plus-year-old counterpart. Upon visiting the three theatres, the contrast is clear; The
Texas Theatre emphasizing its strength of unified historical dominance in the local film industry
will provide the highest opportunity for market adoption.

5.0 Conclusion
The movie industry as a whole is changing due to the technological advances and of the
influence of the Internet. The Texas Theatre will be resilient during societys transition into
online video streaming. It will keep to its roots based around the classical cinematic experience.
The Texas Theatres key service offering cannot be replicated by technology alone. The intent of
the marketing campaign toward young college students in major universities in the Dallas area is
to spur an awareness among this audience of the unique experience offered by the business. The
marketing strategy, focused on inexpensive online tactics and hands-on collaborations with
organizations that build off of its established reputable positioning, can grow awareness of the
Texas Theatre. The targeted younger demographic, which comprises a bulk of movie-watchers, is
likely to be responsive to a viral marketing campaign focused on word-of-mouth and social
media. There is an obvious opportunity for the theatre to respond to these trends, concentrate on
developing the overall customer experience and continue making history.

References
About the Texas Theatre. (2015). Retrieved from http://www.thetexastheatre.com/history/
Bennett, Shea. (2013). Adweek. Retrieved from http://www.adweek.com/socialtimes/marketingbenefits-social-media/486178
Davis, Jessica. (2011). U.S. Census Bureau. Retrieved from
https://www.census.gov/prod/2013pubs/acsbr11-14.pdf
Help the Texas Theatre get Digital Cinema (DCP)! (2014, December). Retrieved from
http://www.seedandspark.com/studio/texas-theatre?snstoken=MF81MTA4X1RX
IBISWorld. (2009, March). IBISWorld Industry Report 51213: Movie Theaters in the US. Retrieved
from http://moneysoft.com/wp-content/uploads/2010/04/ibisi1.pdf
Filmmaker Services. (2015). Retrieved from http://www.thetexastheatre.com/booking/filmmakerservices/#dailies-screenings
Kaufman, A. (2011, May 2). How To Create a Thriving Arthouse Theater (Almost) Anywhere.
Retrieved from
http://www.indiewire.com/article/how_to_create_a_thriving_arthouse_theater_almost_anywhere
Manta. (2015). Manta Media. Retrieved from http://www.manta.com/c/mtmhv9w/texas-theatre?
ftoggle-frontend-prod-on=abTests.revenue.second_adsense_a&utm_expid=8278963237.WBDX7gXdSGiiUSeuLQXRug.2&utm_referrer=https%3A%2F%2Fwww.google.com%2F
The Texas Theatre. (n.d.). Retrieved March 26, 2015, from
http://directory.dmagazine.com/attractions/The-Texas-Theatre/48787
Ulama, D. (2014). IBISWorld Industry Report 51213: Movie Theaters in the US. Retrieved March
25, 2015 from

http://clients1.ibisworld.com.libproxy.utdallas.edu/reports/us/industry/keystatistics.aspx?
entid=1244
Yelp. (2015). Texas Theatre. Yelp Inc. Retrieved from http://www.yelp.com/biz/texas-theatredallas

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