Essay About Business Plan And Proposed Plan

Multiplex Cum Live Theatre
[pic 1]ASSESSMENT TASK 1: DESCRIPTION (BUSINESS PLAN)Subject Name: Strategic and Responsible Innovation ManagementSubject Code: LB5233Lecturer by: Adrian Bradshaw, Boon TanAssignment made by:Agam Arora (13376560)Ganesan Balamurugan Mithun (13395976)William Soetresno (13304650)Naseeb Sheoran (13355786)EXECUTIVE SUMMARY The report is a detailed business plan for opening a new multiplex theatre in Chennai, a metropolitan city in the state of Tamil Nadu in India. The proposed plan suggests the opening of a new multiplex theatre with six screens for movies and two screens that would be converted into live play stage as and when required. In addition, VIP lounges, different restaurants, and parking would help in providing additional amenities and services for attracting the larger number of customers.The industry overview and analysis has reflected that film industry is one of the biggest industries in India and that in Tamil Nadu consists of not only Hindi and English movies but also regional, Tamil movies. As the number of migrants and young, working population has massively increased in Chennai, the demand for entertainment options is also increasing. Though there are already many multiplexes that exist in the city, it has been found that supply is less than the demand and the existing theatres do not offer modern amenities and technologies. Though the competition in the market is very high, customers seem to be willing to accept an option that offers complete entertainment solutions and hence the proposed business is suitable and feasible from the market and industry point of view.The marketing strategies that have been developed have been focused on the target customer group or segment of 18-40 years’ young male and female consumers, which consist of both students and working people. The firm would be established as the entertainment hub that provides complete entertainment solution. The price of the theatre ticket would, however, be around $2.34 SG as capped by the government and the business would be opened in one of the prime locations of Chennai, Nungambakkam. Proposed promotional strategies include the use of social media, sales and discounts and loyalty programs. The initial fund required for the business has been calculated to be around S$1,515,470 which would be funded by owner’s funds and venture capitalist funding. The projected financial statements of the firm reveal that the firm would achieve positive cash flows from the first year and would become profitable in the third quarter of the second year. While the break-even can be achieved towards the end of the first year, the payback period for it has been calculated to be around 2 years.Table of Contents