The concept: PROVIDING LOW COST TO THE CONSUMER
Easygroup was created in 1995, when the young Greek entrepreneur Stelios Haji-Ioannou launched Easyjet, a famous airline company known for its competitive airline ticket prices.
Today, Easygroup is present in many sectors, like Finance, Telecom, Cruise, car rental, internet café, DVD rentals, pizza…..
The company makes benefits by selling shares in the various businesses and by licensing or franchising the brand.
This is a successful business model, as it gives opportunities to people that cannot afford to pay higher price. For example; the EasyCruise.
And also, the company which has targeted the mass as its customers, is conscient that they would definitely continue to use its products and services.
Yield management, which is the process of understanding, anticipating and reacting to consumer behaviour in order to maximize revenue or profits, is used by Easygroup. The company is applying the principles of yield management in all the different sectors in which it has invested.
The Easy group offers higher discounts more frequently for off-peak times, while raising prices only marginally for peak times, resulting in higher revenue overall.
EasyCinema had opened in 2003, in Milton Keynes, a town in the South East of England, with 2000 seats.
The booking policy: Reserve early to pay less.
The tickets costs from 20p to 5£, depending also on time, at off peak-time, the rates was cheaper.
The customer reserved his booking on internet; either printed his ticket from home or printed it on the PC provided in the cinema lobby.
There was a choice of 10 movies, but not the Box Office.
At the beginning, there was no Pop corn, and then the option was proposed for £1. However, people were allowed to bring their own food
According to some interviews on the BBC news website, customers were satisfied with the concept and mainly with the low price.
EasyCinema used yield management to price the tickets based on demand and thus maximise yield, while reducing the average price.
Most cinemas run on a 20% occupancy rate, while the EasyCinema had around 50%.
The business stopped in 2006, after 3 years fight with the major film distributors who wanted to charge £1.30 per ticket.
EasyCinema is now on the DVD rental business. People book on internet and pay the rental around £2 (while rental in other shops costs rental £3.13). They received it by post and then just return it by post to get another one. There is no late fee.
EasyCinema proposes various movies, and even Bollywood films! The Website proposes a summary on every proposed movie and a rating.
EasyCinema should better send the download version of films via internet to have more members, and to save cost.
Sources:
http://www.easy.com/
http://en.wikipedia.org/wiki/Yield_management
http://www.easycinema.com/
http://news.bbc.co.uk/
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