Independant choice Flicks 3.0 Marketing Strategy ICFs marketing strategy will be based on generating visibility of ICF with its targeted population segment. This will be achieved through a multi-faceted advertising campaign. the campaign will utilize advertisements in a local art/entertainment weekly guide advertisements at the local artsy movie theatre, and promotional activities with a couple of local restaurants that have similar demographics 3.1 Mission Independent Choice Flicks mission is to provide the customer with independent non -commercia movies. We exist to attract and maintain customers. When we adhere to this maxim everything else will fall into place. Our services will exceed the expectations of our customers by allowing them to find films that they never expected to find at any video store 3.2 Marketing Objectives Increase repeat customers by 7% each quarter. Decrease customer acquisition costs by 8% per year. Increase brand equity measured by the number of new customers that are already familiar with icf and their niche before arrival into the store 3. 3 Financial objectiv At least 10% growth rate after the second year of operation A 5% decrease in overhead costs per year for the first three years. Profita bility by 18 months 3.4 Target Marketing ICF's customers can be divided into two general groups that are differentiated by age, over 30 and under 30 Under 30: This market segment has a diverse interest that certainly overlaps with the over 30 crowd. The under 30 movies might have more of a concentration on action, violence, drugs, sex, etc. This is not to say that the movies are about these subjects solely it is just that these topics might relate better to someone under 30 than over 30 Over 30: This market segment has a bit more mature tastes the humor may be more sophisticated, they are more likely to enjoy a foreign film relative to the under 30 group Generally, the topics of the movies will reflect issues that this group is most used to or closer to their experiences ICF is focusing on these two groups because they are underserved in Ann Arbor. Currently, there are two large corporate rental chains Hollywood video and blockbuster that hold the majority of the market. In order for them to be successful, they must concentrate on the middle of the market the mean. This allows them to use economies of scale to drive down the costs of operating a movie rental business. While this works for the general population, it does not address the fringes at all. ICF is addressing the fringe movie rental market. Page 73.0 Marketing Strategy ICF's marketing strategy will be based on generating visibility of ICF with its targeted population segment. This will be achieved through a multi-faceted advertising campaign. The campaign will utilize advertisements in a local art/entertainment weekly guide, advertisements at the local artsy movie theatre, and promotional activities with a couple of local restaurants that have similar demographics. 3.1 Mission Independent Choice Flicks' mission is to provide the customer with independent, non-commercial movies. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers by allowing them to find films that they never expected to find at any video store. 3.2 Marketing Objectives • Increase repeat customers by 7% each quarter. • Decrease customer acquisition costs by 8% per year. • Increase brand equity, measured by the number of new customers that are already familiar with ICF and their niche before arrival into the store. 3.3 Financial Objectives • At least 10% growth rate after the second year of operation. • A 5% decrease in overhead costs per year for the first three years. • Profitability by 18 months. 3.4 Target Marketing ICF's customers can be divided into two general groups that are differentiated by age, over 30 and under 30. • Under 30: This market segment has a diverse interest that certainly overlaps with the over 30 crowd. The under 30 movies might have more of a concentration on action, violence, drugs, sex, etc. This is not to say that the movies are about these subjects solely, it is just that these topics might relate better to someone under 30 than over 30. • Over 30: This market segment has a bit more mature tastes, the humor may be more sophisticated, they are more likely to enjoy a foreign film relative to the under 30 group. Generally, the topics of the movies will reflect issues that this group is most used to or closer to their experiences. ICF is focusing on these two groups because they are underserved in Ann Arbor. Currently, there are two large corporate rental chains, Hollywood Video and Blockbuster that hold the majority of the market. In order for them to be successful, they must concentrate on the middle of the market, the mean. This allows them to use economies of scale to drive down the costs of operating a movie rental business. While this works for the general population, it does not address the fringes at all. ICF is addressing the fringe movie rental market. Independant Choice Flicks Page 7