This document provides a marketing plan for an Alamo Drafthouse Cinema location in Richardson, Texas. It begins with an executive summary that outlines the history and goals of Alamo Drafthouse Cinema and identifies the challenge of increasing brand recognition for the new Richardson location. It then performs a situation analysis that includes an analysis of the company, customers, competitors, context, and a SWOT analysis. The marketing strategy section outlines the market segmentation focusing on frequent moviegoers ages 18-39, and discusses targeting and positioning strategies. The plan proposes focusing initial efforts on enhancing products/services, broadening the customer base through advertising, and offering promotions to build recognition and retention in the short term. [END SUMMARY]

1. MARKETING PLAN
Written by:
Ricky Erling Chris Gillet Sean Jordan
Raymond Ray Amanda Pereira  David Romo
MKT 3300-008Due December 11, 2013Group 10

2. TABLE OF CONTENTS
I.
EXECUTIVE SUMMARY
II.
THE CHALLENGE
III.
SITUATION ANALYSIS
A. Analysis of the Company and the Collaborators
B. Analysis of the Customers
C. Analysis of the Competitors
D. Analysis of the Context
E. SWOT Analysis
IV.
MARKETING STRATEGY
A. Segmentation
B. Targeting
C. Positioning
V.
MARKETING PLAN
A. Product
B. Price
C. Promotion
D. Place (Distribution)
VI.
SHORT AND LONG TERM PROJECTIONS
VII. CONCLUSION
VIII. APPENDIX
IX.
REFERENCES

3. I. EXECUTIVE SUMMARY
Alamo Drafthouse Cinema (Alamo) originated in Austin, Texas in 1997 when a couple, Tim
and Karrie League, decided that they wanted to create a unique “Alamo Drafthouse
Experience” for local movie fans to enjoy great films with quality food and local beer. After
starting with only one movie screen, Alamo expanded into relatively larger theaters and
greatly expanded their number of locations to California, Colorado, Michigan, Missouri,
New York, Texas, and Virginia.
In August 2013, Alamo opened a new location in Richardson, Texas on North Central
Expressway and Beltline Road, but unfortunately, it is not well known. In the survey we
conducted, of the 42 who responded, only 50% had heard of Alamo, and no one selected it
as their favorite theater. Therefore, we concluded that increasing brand recognition
through new inexpensive advertising techniques, to ultimately increase customer
awareness and retention, is the first major step in making this theater successful.
Generally, Alamo relies heavily on word-of-mouth for advertisement to keep spending
costs to a minimum, and budget is the main factor inhibiting Alamo from becoming
recognized at a faster rate. Also, due to the budget constraints, Alamo, leased out an
inexpensive building, and in turn, it is in a location with limited exposure to the general
Dallas and Richardson public.
Although this location is not ideal, there are still a number of cost-efficient ways Alamo can
make their presence known and gain a stronger customer base. However, before we can
propose a solution to this problem, we first will analyze the Richardson market and
organize it into four segments based on demographic and behavioral segmentation
variables. However, our target market will be frequent moviegoers between the ages of 18
and 39. When approaching this market, we are aiming to differentiate Alamo from their
competitors and position Alamo so their potential customers will understand that Alamo is
not a traditional dine-in movie theater, but rather, it has the whole “Alamo Drafthouse
Experience” to offer.
Based on our marketing strategy, in the short run, we plan to focus our efforts in enhancing
Alamo’s products and services, broadening their customer base through different forms of
advertising and offering additional promotions. In the long run, we will look into how to
expand Alamo’s placement, discussing potential future locations.

4. II. THE CHALLENGE
As previously stated, Alamo’s main challenges are lack of extensive funds, brand
recognition in Richardson, and customer retention. Aside from those challenges, generally,
once people first learn of Alamo, they often compare it to Studio Movie Grill as if it is just a
dine-in movie theater.
Alamo’s goal is not to be a traditional dine-in theater. Their goal is to educate their movieloving customers that they are “dedicated to keeping the movie-watching experience safe
for movie fans, serving quality food and drinks, and upholding high presentation
standards” (Alamo Drafthouse Cinema, 2013).Therefore, since this is not the general
portrayal of Alamo, we are challenged with not only trying to expand Alamo’s customer
base but educating them of the unique experience Alamo has to offer.
III. SITUATION ANALYSIS
A. Analysis of the Company and the Collaborators
Who we are.
What we do.Alamo offers a variety of movies and other TV events with quality food and
beverages.
Goal.Alamo’s goal is to provide a unique movie experience for movie fans.
Strategy.Alamo “[maintains] the latest and greatest in projection technology so that every
show features crisp, bright digital or 35mm presentations with booming surround sound,
[and also programs] repertory titles and special event you won’t find anywhere else”
(Alamo Drafthouse Cinema). In addition to its high-quality picture, Alamo also supports
local breweries to gain more customers and offers various movie events, such as movie
sing-alongs and movie quote-alongs.
B. Analysis of the Customers
Alamo customers are mostly movie fans but also range to all people who are looking for a
dine-in movie experience.
C. Analysis of the Competitors
Other dine-in movie theaters.Studio Movie Grill
Regular movie theaters.Unless a customer is specifically looking for a high-quality dine-in
movie experience or to watch classic films, all other standard movie theaters, such as AMC
and Cinemark, may take high precedence over Alamo.
At-home movie experience.Due to the economic slowdown and online streaming options,
such as Netflix or Hulu, customers may prefer to watch movies from home.
D. Analysis of the Context (PEST Analysis)

5. When looking at the political and economical environments, we found that due to the
economic slowdown and Alamo’s major competitors, Alamo must focus on inexpensive
advertising to increase their customer retention. Currently, they hold some free events and
offer Groupons as a form of advertising; however, although they receive high turnouts for
those events, many of those customers do not return.
Additionally, when analyzing Richardson’s social environment, we found that aside from
the college population, Richardson is generally an older market. Therefore, to save costs,
Alamo should keep their current location but advertise more in areas with a younger
demographic, such as college campuses and advertising on the college’s student discount
program. Currently, Alamo Drafthouse does offer a $1 savings on the listed ticket price for
students; however, they do not actively advertise that.
Regarding the technological environment,Alamo keeps up with current film technology and
should continue to do so in order to maintain competitive qualities.
E. SWOT Analysis
STRENGTHS
Strict policies
Entry fess and food pricing
Beverage variety
Unique movie experience
Versatility with menu offerings
Comfortable
Online reservations
OPPORTUNITIES
Accessibility
Advertising
Adjust menu
Expand
Minor adjustments
WEAKNESSES
Too small
Limited public awareness
Location
Dining setup
Limited movie selection
Focusing on educating customer
Dining experience
THREATS
All other movie theaters
Economic slowdown
Loss of customers due to strict
policies
Other theaters’ versatility
STRENGTHS
Strict policies. A part of the Alamo Drafthouse Experience is watching a movie while
enjoying quality food and beverages in an unobtrusive environment. Therefore, Alamo
enforces a strict not talking/texting policy, and they also no not allow babies and young
children in the theater to keep interruptions to a minimum.
Entry fees and food pricing.In order to remain competitive, Alamo’s entry fees range
from $8.75-$13, depending on the time of the showing (matinee or not) and type of
movie (regular or 3D). Although their entry fees are relatively similar to competitors,
their food and beverage prices are slightly cheaper or equal to their competitors. For
example, a fountain soda at a standard theater cost approximately $5 while at Alamo
local craft beer prices start at $5.

6. Beverage variety.Regardless of location, Alamo supports and collaborates with local
breweries for a unique beer list. Aside from beer, Alamo also has a full bar with a
variety of wines, cocktails, and other alcoholic and non-alcoholic beverages.
Unique movie experience.In addition to a full food and drink menu, before every
showing, they show an Alamo-original pre-show, consisting of video clips that relate to
the movie about to be shown, and they advertise upcoming events at Alamo. They show
and offer current films, classic films, classic movie sing-alongs and quote-alongs, and
occasionally big TV events, such as college football games.
Versatility with menu offerings.Because they are a smaller company, they can change
the menu according to customer demands.
Comfortable.Offers comfortable seating in clean, spacious theaters.
Online reservations.Alamo provides its customers the option to reserve seats online to
avoid long lines and to ensure good seating.
WEAKNESSES
Too small.Alamo has a limited movie selection, number of screens, locations, and it’s
not well known, so it can be difficult to retain customers.
Limited public awareness.Due to budget limitations, Alamo relies heavily on word-ofmouth advertising; therefore, they have trouble reaching out the mass public.
Location.Their location is somewhat hidden and is not a high traffic area, making it
difficult to establish brand recognition in Dallas. Also, Richardson is generally an older
market, which may not be who they want to market towards.
Dining setup. Tables are too far from seats to eat comfortably, seats are too close, and
reading menus and writing orders is difficult in lighting provided.
Limited movie selection. Small movie selection caters to less people, making it difficult
to retain more customers.
Focusing on educating customer. The different concept causes the customer to learn
how to enjoy the movie in this new set up.
Dining experience.The dining service is limited causing the customer to rethink coming
back.
OPPORTUNITIES
Advertising.Alamo could offer text alerts to customers for special events, expand its
social media presence,and work with other local companies and colleges to increase
customer retention and spread word-of-mouth.
Adjust menu.The menu is slightly cluttered and some items are difficult to visualize, so
they should add pictures for easier viewing of popular items.
Expand.Once Alamo generates more revenue at this location and has a larger budget,
they should expand into other Dallas locations, such as the Arts District, where there
might be a larger audience interested in film appreciation and the Alamo Drafthouse
Experience.This would greatly increase brand recognition, customer retention, and
advertising by word-of-mouth.
Minor adjustments. Making minor changes in the service, such as ordering procedure,
can enhance the movie experience. Currently, customer must write down what they

7. want or need from the server and place it in a clip in front of their seat. Occasionally, the
paper will not get taken right away, and it is difficult to see what is being writtenin the
minimal lighting provided.
THREATS
1. All other movie theaters.Alamo’s main competitor is Studio Movie Grill because most
first-time customers see Alamo to simply be a dine-in movie theater. On the other hand,
for those movie enthusiasts who see Alamo as a place to watch and appreciate a good
film and meal, Angelika would be Alamo’s other main competitor. Other competitors
include AMC, Cinemark, iPic, which are increasing their market share, and some are
starting tooffer alcoholic beverages.
2. Economic slowdown. A slowdown in the economy will cause less disposable income for
customers. Therefore, there is a lower demand for an outing at the movies.
3. Loss of customers due to strict policies. Families are less inclined to come Alamo due
to strict no babies or young kids’ policy, potentially hurting Alamo’s overall reputation
among families regardless of the occasional family, kid-friendly events they hold.
4. Other theaters’ versatility. Larger theaters have more versatility with showtimes and
multiple locations.
IV. MARKETING STRATEGY
A. Segmentation
Considering Alamo has a limited marketing budget, we are focusing on segmenting
Richardson. However, in the future, if our Richardson location becomes fully stable and our
budget permits, we will adjust our focus to the remainder of Dallas. To segment the
Richardson market in Alamo’s favor, our segmentation strategy is based off the following
two segmentation variables: demographic and behavioral segmentation.
As previously stated, Alamo does not allow children under the age of 18 into the theater
unless accompanied by an adult for a specified event/viewing intended for minors.
Therefore, demographically speaking, we segmented our market based on two age groups:
people ages 18-39 and 40+, which make up approximately 76.8% of the Richardson
population as of 2012 (U.S. Census Bureau, 2012).
Of those age groups, we further segmented our market using behavioral segmentation,
measuring their movie viewing frequency. Within each age group, we segmented them
further into two categories: frequent moviegoer and infrequent/occasional moviegoer. For
our purposes, we consider frequent moviegoers those who go at least once a month on
average, and infrequent/occasional moviegoers are those who do go less than once a
month on average.
To ensure effective segmentation, we organized our segments to be homogenous within,
heterogeneous between, and operational.*Refer to appendix*In 2012, Motion Picture
Association of America (MPAA) conducted a study, analyzing the frequency of moviegoers
within various age groups in the U.S. and Canada. Since we are unable to conduct such an

8. extensive study due to budget limitations, we are using their results as an approximate
representation of the moviegoers in Richardson. After segmenting the Richardson market,
we determined each segment’s estimated size, their characteristics and preferences, their
needs and wants, when they will most likely utilize our products and services, and the best
way to reach them. The following table depicts are our findings:
18-39 Frequent
Moviegoer
40+ Frequent
Moviegoer
Estimated Size
(%)
45% of frequent
moviegoer
population
Characteristics
& Preferences
Slightly price
sensitive
Relatively less
likely to have kids
Enjoys the ideal
movie experience
Needs & Wants
Good Food,
Beverages, & Variety
of Movies/TV events
33% of frequent
moviegoer
population
Not Price
sensitive
Relatively more
likely to have
kids; familyfriendly
atmosphere
Enjoys the ideal
movie experience
Good Food,
Beverages, &
Variety of
Movies/TV events
Product/
Service Use
General Outings
General Outings
Best Way to
Reach
Social Media
For college
students: local
campus student
discount program
TV/Mail
Advertisements
Less social media
exposure
18-39 Infrequent/
Occasional
Moviegoer
~25% of infrequent
moviegoer
population
40+ Infrequent/
Occasional
Moviegoer
~50% of infrequent
moviegoer
population
Price sensitive
Relatively less
likely to have kids
Less interested in
the ideal movie
experience
Price sensitive
Relatively more
likely to have kids;
family-friendly
atmosphere
Less interested in
the ideal movie
experience
Inexpensive prices &
newest/popular
movies
Inexpensive prices &
newest/popular
movies
Special Weekend
Outings
Social Media
For college
students: local
campus student
discount program
Special Weekend
Outings
TV/Mail
Advertisements
Less social media
exposure
B. Targeting
We chose to use the Single Target Market Approach, focusing on the 18-39 Frequent
Moviegoers. Since Alamo’s core competency lies in the “Alamo Drafthouse Experience”
centered on the enjoyment of the movie, this segment of the market has the most to gain
from the Alamo Drafthouse Experience.
Additionally, the 18-39 Frequent Moviegoer demographic is appealing to Alamo because
they are less likely to have children and more disposable income to spend on
entertainment, dinner, and drinks. Furthermore, this segment is highly exposed to social
media, making them fairly easy to reach without requiring a heavy marketing expense.
Using social media marketing will allow Alamo to maintain in contact with their customers
before and after the experience at the theater, potentially creating an increase in customer
retention.
We chose not to target the 40+ Frequent Moviegoers and the Infrequent/Occasional
Moviegoers because they will benefit less from the Alamo Drafthouse Experience. 40+

9. Frequent Moviegoers will be more expensive to reach since a smaller percentage of them
use social mediain comparison to the 18-39 age group. Also, this segment is more likely to
have children and be more price sensitive, so they may not see as many movies, and if they
do, they are more likely to want to go to a family-friendly theater. On the other hand,
Infrequent/Occasional Moviegoers mostly go to the movies to only see the movie, whereas
the Alamo Drafthouse Experience is more geared around film appreciation while enjoying
quality food and drinks.
C. Positioning
Because Alamo is a small share of the market, relative to other movie theaters, it must set
itself apart from the competition by positioning itself as a unique experience and not just a
dine-in movie theater. However, showing potential customers how Alamo is different from
its competitors is one of the more difficult aspects of marketing this company because most
view it as a dine-in movie theater similar to Studio Movie Grill. Therefore, Alamo must take
a step further to market the Alamo Drafthouse Experience as a whole.
“To 18-39 year old frequent moviegoers, Alamo Drafthouse is the movie theater
that creates the ideal movie experience for adults by shaping the experience
around their love of movies and movie culture.”
Separating Alamo from the common movie theater is paramount. Thus, when the customer
is considering seeing a movie, we want them to remember Alamo’s distinct movie culture,
environment, and dining. We also want these customers to be connected via social media
so that they can benefit from Alamo’s unique programming that sets it apart from other
theaters.
V. MARKETING PLAN
A. Product
The Alamo brand is about the classic movie experience for the movie enthusiast.
Therefore, Alamo continues to expand on its humble beginnings in Austin, Texas and
expands on Founders Tim and Karrie League’s love for watching movies and enjoying fine
food and beer/wine with friends. To combine these passions for movies, food, and drinks
with friends, Alamo has intentionally designed their service model to be as unobtrusive as
possible. To succeed at this goal of an unobtrusive environment, Alamo highly encourages
arriving early to enjoy the pre-movie entertainment, consisting of old commercials and
movie clips supporting the movie to be shown and to order food and beverage ahead of the
movie. Alamo Drafthouse offers a vast array of modern movies and classic movies to the
audience, creating an environment for the movie nostalgic. To support a pleasing movie
experience, Alamo Drafthouse enforces a series of strict policies in regards to electronic
devices and even small children. However, for the more outgoing movie enthusiasts, Alamo
Drafthouse does invite audiences to participate in the movie experience through special
events including sing-a-longs and quote-a-longs with reruns of classic movies. On a side
note, in order for Alamo Drafthouse to rerun these classic movies in the atmosphere they
were meant to be seen, they have to first acquire the films on the original media, having the
benefit of preserving these movies for future generations. Also, they have special events

10. from time to time for big college football games and large sporting events available to be
watched on their movie screens.
B. Price
Alamo Drafthouse, currently engages in a pricing strategy that seeks to keep box office
prices low in the range of about $7.00 to $10.00 per ticket.This pricing strategy was
developed to gain market share from other dine-in amenity based chains. We actually met
with Alamo Drafthouse executives and were given some raw data of box office tickets
purchased between September 16 and October 31 of this year. After some analysis of this
data, it is evident that the average amount of revenues Alamo saw from movie tickets
purchased (net of discounts and refunds given) in this month and a half period was $8.00
per ticket before taxes and $7.00 per ticket after taxes. The average net revenues per day
(taxes excluded) in ticket sales during this period is about $1,372.00. This means, if they
average the same business throughout the year, their projected net revenues after taxes
over the course of a year would total $500,780.00 from ticket sales alone. We know that
they make most of their profit from the food and beverages they sell, but based on the
survey we conducted, it seems that most people in our target market would be willing to
pay about $15 to $20 per ticket at Alamo Drafthouse. This being the case, they could
probably keep the prices of their tickets to about $10 to $12 per ticket and maximize the
ticket revenues they bring in. The reason for undershooting is to stay lower than
competitors and help them attract new customers.
C. Promotion
Alamo Drafthouse currently engages in radio marketing avoiding the high cost of TV
advertisement. Furthermore, on December 3, 2013 Alamo Drafthouse rolled out their
loyalty rewards program in the DFW area, “Alamo Victory.” This loyalty program is a very
big step in the promotion of their business and really adds some extra benefit in an arena
they are struggling in, keeping customers coming back. These loyalty programs give free
movie tickets on birthdays, atleast two “special offers” per year, surprises (these are
rewards you pick up after earning visits and purchasing new tickets), and weekly emails
and offers. This is a completely free program to join. There are four levels that can be
achieved. The way it works is that everybody starts at level 1. Based on how many visits
you make, each movie tallied up differently, you can move up to the next level. Each level
increases in the amounts of discounts and offers you receive, basically rewarding the
higher level customers for their loyalty to Alamo Drafthouse. Now that they have this
program, they can create returning loyal customers as they bring more in from their other
promotions. Their main way of advertising is by word of mouth. They may want to
consider investing in advertising that would speed the process of bringing more people in
the door by exploiting their main target market, which we have identified as 21-35 year old
adults. They already send out mail advertisements and coupons for discounted movie
tickets in the immediate area neighborhoods in Richardson, so sending these out to specific
neighborhoods/apartments in zipcodes where they are lacking many customers, such as
West Plano and Addison, could be effective ways to help get the word out. Also, they could
hand out promotions at UTD, Richland, and Collin College and/or provide special student
discounts to students with student ID for any college or university. Another idea is to

11. advertise on social media websites and eventually develop and Alamo Drafthouse App for
smartphones so people can look up showtimes and order their tickets online with ease.
D. Place (Distribution)
Currently, Alamo Drafthouse has only one location in the DFW area which is located in
Richardson, Texas at 75 and Beltline. This location provides a centralized location in the
North Dallas area, however it is not a prime location. It was just easily accessible for Alamo
Drafthouse to expand into this market for monetary reasons. It doesn’t appear that they
looked for strategically placing the theater in a great place for their target market. Since
this is not a very good location, Alamo Drafthouse is currently planning six future locations
in the area. They are primarily focusing on locating towards the downtown Dallas Area.
Some good strategic locations that would make sense for them to look into based on the
target market we are focused on would be places like Addison, Oak Lawn, Frisco/Allen
area, and Uptown.
VI. SHORT AND LONG TERM PROJECTIONS
VII. CONCLUSION
VIII. APPENDIX

12. IX. REFERENCES
http://quickfacts.census.gov/qfd/states/48/4861796.html