GLYNDŴR SCHOOL OF BUSINESS

ASSIGNMENT FRONT SHEET

Student Name: (PLEASE PRINT)

Certification: I certify that the whole of this work is the result of my individual effort and that all
quotations from books, periodicals etc. have been acknowledged.

Student Signature: Date:

Student Registration Number:

Student email address :

Programme : MSc Year/Level : Stage 1

Academic Year : 2009/10 Semester : 1

Module title : Developing Competitive Advantage Assignment no. : 2

Module code: BUS703 Word guide: 1500

Percentage Weighting of this assignment for the module: 50%

Issue date : w/c 26th October 2009 Return date : 11th January 2010

Lecturer : B Jones/ Alexis McLean Second marker :

Notes for students :

1. Hard copy of assignment should be stapled in the top left corner and submitted to the Business
School.
2. Electronic copy of assignment should be submitted through the Turnitin software.
3. 10% of marks are awarded for satisfactory use of language and/or good presentation.
4. 5% of marks are awarded for satisfactory referencing and/or presentation of a bibliography where
either is required. Note that all referenced work should be obtained from credible sources.
5. Students should ensure that they comply with Glyndwr University’s plagiarism policy.
6. Students should make correct use of the Harvard referencing method.

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Overall Comment :

Mark (%)

Glyndwr School of Business Feedback on Assignment

Student Number/
Academic Year: 2009/10
Name

Programme Title MSc Level Stage 1

Developing Competitive
Module Code BUS703 Module Title
Advantage
Assignment Indicative Mark /
2
Title/Number: Grade:

Would students please note that achievement of the learning outcomes for this assessment is
demonstrated against the assessment criteria shown below (which are not necessarily weighted
equally). Your assignment is marked as a whole and your grade is more than a summation of your
performance as rated below. All marks/grades remain indicative until they have been considered and
confirmed by the Assessment Board

Under 70%
Assessment Criteria 40%
40-49% 50-59% 60-69%
+

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 Identify the characteristics of the cinema service and
1 how they can impact on the marketing teams efforts to
re-position PIX Cinemas
Identify the types of information required to formulate a
2
pricing strategy
Ways to adapt promotion mix to respond to a changing
3 environment in order to further penetrate the cinema
market
Ability to construct coherent arguments fully supported
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with referencing throughout

Name of Tutor Date

Strengths of this assignment are:

Suggestions to improve this assignment are:

Grading & Marking Criteria

80 + Outstanding work of exceptional merit which is original in content or approach

allowing a novel perspective, going beyond what is available in the literature.

70 – 79 Work which is clearly articulated and well substantiated, based on extensive

reading, and demonstrates an authoritative grasp of the concepts, methodology and
content appropriate to the subject and to the assessed task. There is clear evidence
of originality and insight and an ability to sustain an argument, to think analytically
and/or critically and to synthesise material effectively.

60 – 69 Work which demonstrates a very good level of understanding of the concepts,

methodology and content appropriate to the subject and which draws on a wide
range of properly referenced sources. There is clear evidence of critical judgement
in selecting, ordering and analysing content. The work demonstrates some ability to
synthesise material and to construct responses which reveal insight and may offer
some occasional originality.

50 – 59 Work derived from a solid basis of reading and which demonstrates a grasp of
relevant material and key concepts and an ability to structure and organise
arguments. The performance may be rather routine but the work will be accurate,
clearly written and include some critical analysis and a modest degree of original
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 insight. There will be no serious omissions or irrelevancies.

40 - 49 Competent and suitably organised work which demonstrates a reasonable level of

understanding with minimal analysis and interpretation. It covers the basic subject
matter adequately but is too descriptive and insufficiently analytical. There may be
some misunderstanding of key concepts and limitations in the ability to select
relevant material so that the work may be flawed by some omissions and
irrelevancies. There will be some evidence of appropriate reading but it may be too
narrowly focussed.

30 - 39 Work lacks evidence of knowledge relevant to the topic and/or significantly misuses
terminology. There is either no evidence of literature being consulted or irrelevant to
the assignment set. Inaccurate or inappropriate choice of theory.
Unsubstantiated/invalid conclusions based on anecdote and generalisation only, or
no conclusions at all. Lacks critical thought, analysis and reference to theory.

0 - 29 Insufficient level of understanding and knowledge base unacceptably weak. No

evidence of logical structure and poorly presented. Referencing is unsystematic or
absent.

Additional Comments from Second Marker or External (if required)

Glyndŵr School of Business

MSc. :Module: Developing Competitive Advantage

Assignment 2

This assignment assesses the following module learning outcomes:

1 Understand the nature and variety of business organizations and the effects of the
business environment upon them
2 Explain the context of and process for, marketing planning including related concepts
of target marketing and the marketing mix
3 Critically evaluate the differences in the application of the marketing mix involved in
marketing products and services within different marketing contexts

TASK

Read the case study ‘PIX Cinemas’ and answer the questions below -
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You have been employed by PIX Cinemas in a newly created marketing post. PIX Cinemas
are looking to reposition their brand and you have been made responsible for the
development of a number of areas. Based on a brief presented to you by your manager
below, write a report that;

1 Explains the key characteristics of services and the main problems which face PIX
Cinemas’ marketing team when trying to reposition the service and market a cinema
experience.
2 Identifies the types of information required for the formulation of a pricing strategy.
3 Discuss the ways in which this organisation could adopt its promotion/communications
mix to respond to the changing environment and to implement further the market
penetration strategy.

All questions carry equal marks.

Case Study PIX Cinemas

PIX Cinemas is Europe’s leading cinema chain, with 30 years of experience in the cinema
industry. It first entered the UK in 2002 when it bought full control of an existing cinema
chain in an outright purchase. In Europe, PIX Cinemas has 84 cinemas and enjoys 15%
market share.

However, once the acquisition had taken place, PIX Cinemas wanted to position themselves
as being serious about films. Film was their number one priority, although the concession
areas (including snacks and drinks) in the foyers were considered important.

Research conducted by Mintel (2008) found that household penetration of satellite and cable
TV increased significantly during the past 6 years; that more people were renting videos to
watch at home and more people were subscribing to movie channels. However, it appears
that this growth in home entertainment has not affected cinemas, for it is actually the
heaviest cinema goers who are also more likely to rent videos to watch at home and to
subscribe to satellite/cable TV and movie channels. This suggests that they view these
forms of entertainment as complements to, rather than substitutes for, going to the cinema.
Ultimately, the experience of the big screen is something that cannot be truly replicated in
the home and it seems that this will always give cinemas the advantage.
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In July 2009, PIX Cinemas launched the first subscription card – ‘Unlimited Pass’, which is a
subscription-based card whereby members sign up for a minimum of 12 months at the rate
of £12.99 per month. The can then visit a PIX cinema as often as they wish. The card is a
magnetic card with a digital photo and it also provides PIX Cinemas with valuable
information about the cinema-going habits of their most frequent customers. This is
designed to increase market penetration and encourage its target audience to see films that
they would never normally have considered. The subscribers to the ‘Unlimited Pass’ number
75,000 in the UK. The target is to achieve 100,000 subscribers by 2010.

The activities undertaken by PIX Cinemas to promote the ‘Unlimited Pass’ have included
internal point of sales and an internal sales team who were taken from the front of house
team. The sales team was mainly trained in the practical skills of selling the ‘pass’.
Feedback from the selling team suggests that customers seem to associate a ‘risk’ with the
commitment to a 12 month contract for the ‘pass’.

In order to increase awareness among less frequent cinema goers, PIX Cinemas have
recognised that they should be developing plans to market the ‘pass’ further. As yet, external
marketing of the card has relied on word of mouth from customers who have already
invested in the pass, or who have seen the point of sale in the cinema.

While the cinema chain which PIX Cinemas purchased has a strong brand image and
distinct market position, the PIX Cinema brand has no values associated with it in the minds
of the target audiences. As a consequence, PIX Cinemas are able to choose how to position
themselves, but a great deal of work is needed to create awareness of the brand and its
values.

A further area which PIX Cinemas needs to consider is the practice of customers’ advance
booking and gathering information. Advanced bookings now account for around 20% of UK
ticket sales, thanks largely to centralised telephone booking facilities, offered by the majority
of cinema chains. Mintel’s research (2008) showed that a very small proportion of cinema
consumers book tickets on the internet. This is a reflection of the fact that only two of the six
major cinema chains in the UK offered such a service. However, it plays a far more
important role in providing information to consumers about films being shown, screening
times, admission prices, how to find the cinema and facilities in and around the cinema. All
the major competitors now have a website; but surprisingly PIX Cinemas does not. In the
future, it is likely that the internet will become a more important channel for booking tickets
and this is an area which needs to be developed by PIX Cinemas.

It was also noted in the research that with every new subscriber, visits to the cinema
increased by a factor of 3 to 4 suggesting that the ‘pass’ holders were extremely influential
in attracting other customers to visit PIX Cinemas. Interestingly most of these visitors are not
pass holders themselves paying full price of around £5 per visit offering PIX greater
opportunities to increase sales and revenues.

The information is broadly fictitious and does not in any way reflect the policies of any
cinema chain

GUIDELINES

The assignment calls for a report so use a report style format including to and from,
subject heading and date. Use headings to answer your 3 questions and
sub-headings where appropriate to identify and discuss the issues raised.

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