AMC THEATERS Millennials Strategy Project / 24th June 2011
AMC STUBS BUSINESS CHALLENGE • Millennials make up 60% of weekend traffic. • AMC Stubs is a paid program and one • of the only paid movie theatre loyalty • programs. • Millennials are not likely to pay for • a loyalty program.
OBJECTIVE • Engage Millennials by creating an emotional connection to AMC and exposing them to the AMC Stubs program through social media and mobile usage.
FOCUS GROUP • 13 smartphone owning Millennials • Mobile Habits • Loyalty Programs • Movie Going Experiences • AMC • Apps • Survey
OBJECTIVE: MILLENNIAL CONNECTION
EMOTION “Millennials respond to content that is emotionally intense. A well-crafted performance that rings true will meet their deep-seated desire for authentic experiences. Brands that understand this increase their emotional appeal by staying committed to intensely dramatic story lines and characters.” http://www.scribd.com/doc/46219699/Tipping-the-Culture
JOYNING Millennials get joy from joining organizations, groups, teams, and other larger entities. JOYNING motivates the target market and makes them unique. Millennials don’t think of themselves as individual consumers: in JOYNING with brands, they become members of a community.
WORD OF MOUTH 80% say they often tell friends and family about products that interest them
MOBILE “Millennials are 57% more likely than the average mobile owner to have looked at a texted ad.” eMarketer.com “51% of mobile users aged 12-24 use mobile internet.” eMarketer.com “41% of Millennials use only a cellphone and have no landline.” usatoday.com
WHATIF? …instead of selling Millennials just a loyalty program, we created an interactive mobile application?
MILLENNIAL CONNECTION: MOBILE ENGAGEMENT
KAREN Karen, 23, is part of a larger group of young people called Millennials. Millennials, also called Echo Boomers, are the generation of consumers between the ages of 14 and 24. Millennials like Karen make up the largest generation in history and are the primary target for AMC’s Stubs program.
THE AMC MOBILE APPLICATION Cell phone ownership for 18-34 year olds is near universal at 92%. Experian Simmons NCS
STUBS MEMBERSHIP ID “I lose those cards all the time.”
FEATURETTES “That would be awesome, but I’ve never seen an app do that.” AMC existing content “Want to see it” feature
RATINGS AND RECOMMENDATIONS “I like to know what my friends think of a movie.” “I want to be able to rate the movie.” 69% of internet users ages 14-26 believe online consumer reviews/ratings influence their buying decisions. eMarketer.com
SMS GROUP TEXT 56% of Teens enjoy going to movies in groups of 3+. Adults without kids enjoy going in pairs. “It’s a hassle to text all the information to all of my friends.”
MOBILE TICKET PURCHASING In 2000, AMC co-founded online ticket services with MovieTickets.com and Fandango to add convenience to even the busiest AMC theatres. AMC will now allow Stubs members to conveniently order and purchase their movie tickets through the AMC mobile application. Paperless Ticket Confirmation
PHOTOS / STUBS PERSONALIZATION Allow for all types of stubs Millennials are involved activists, young people who believe they can make a difference. honolulu.hawaii.edu
MOVIE TRIVIA “I want to see everyone’s responses.” “It makes me feel more competitive.” “I feel better when I win.” IMAGE: People at theater watching screen This generation of multi-taskerscan easily manage to listen to music, work on the computer and watch television at the same time. This means they need a lot of stimulation in their environments and may be more focused than it seems. Mintel
MOVIE QUOTE TEXT & TWEET “One of my favorite parts about going to movies is quoting it with my friends after.” “The best part about IMDb is the quotes.”
FINANCIALS: THE BOTTOM LINE
WHERE DOES AMC STAND? SALES FOR ALL THEATERS IN THE U.S. IN 2010 WAS $10.6 BILLION SALES FOR AMC IN 2010 WAS $2.4 BILLION AMC HAS ABOUT 23% OF THEATER MARKET SHARE http://www.mpaa.org/Resources/93bbeb16-0e4d-4b7e-b085-3f41c459f9ac.pdf Previous AMC deck for an investor pitch related to their IPO efforts.
AUDIENCE DEMOGRAPHICS http://www.valmorgan.com.au/au/audiences/demographics/age-gender/
WHO’S OUR TARGET? • This only showcases frequent users to date. However, CNET recently released a report stating people download 61% more apps than they did a year ago. http://news.cnet.com/8301-1035_3-20078388-94/apples-app-store-sees-sales-surge-report-says/?tag=cnetRiver http://www.mpaa.org/Resources/93bbeb16-0e4d-4b7e-b085-3f41c459f9ac.pdf http://millennialmarketing.com/2010/10/mobile-millennials-leading-the-way/ http://www.valmorgan.com.au/au/audiences/demographics/age-gender/
GET ALL YOUR MONEY BACK, PLUS MORE AVERAGE MAXIMUM COST TO MAKE A COMPLEX RECOGNIZED BRAND APP IS APPOXIMATELY: $150,000.
FINANCIAL CONCLUSIONS Millennials make up 60% of weekend traffic 54% of millennials have a smartphone Millennials are the most engaged generation ever THIS APP APPEALING TO MILLENNIALS AND MAKING AMC A LARGE PROFIT IS INEVITABLE. IF WE CONVINCED JUST 10% of MILLENNAILS TO BUY THIS APP: AMC WOULD HAVE 171,396 NEW STUBS USERS AND A REVENUE OF $22,056,752.
FOCUS GROUP INSIGHTS • 13 Millennials participated. • Most would not pay $12 for a loyalty program alone. • However, they would pay for a loyalty program plus an app with interactive features. • They prefer mobile apps that have a social aspect. “The most interesting notifications I get on my phone are the ones about what my friends are doing.” – Participant, 27
FOCUS GROUP CONCLUSIONS • App and Loyalty Program must be joined. • Millennials are social • Millennials want to JOYN. • Millennials find value in intangibles. “The most interesting notifications I get on my phone are the ones about what my friends are doing.” – Participant, 27
CAPTURE YOUR MEMORIES AMC Stubs: “Collect memories. Get rewards.”