FACULTY OF ACCOUNTING, FINANCE & BUSINESS

ABDT3193 MARKETING STRATEGY

GROUP ASSIGNMENT
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TGV Cinemas
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No. | student name | student id no. | 1. | YEO SHUN QI | 13WBD07502 | 2. | TAN BOON BIN | 13WBD05262 | 3. | YAP SZE LING | 13WBD04996 | 4. | YONG KIAN SHENG | 13WBD0 | 5. | YAP SOON WONG | 13WBD0 |

ABDT3193 MARKETING STRATEGY

ASSESSMENT CRITERIA AND GRADING SHEET
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Assessment criteria | Weight (%) | Marks Awarded (%) | | | | Analysis of industrial competitiveness | 10 | | Analysis of strategy adoption | 15 | | Recommendation of strategies | 15 | | Introduction and conclusion | 5 | | Use of Harvard referencing system | 5 | | Total | 50 | |

KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN
FACULTY OF ACCOUNTANCY, FINANCE & BUSINESS
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TUNKU ABDUL RAHMAN UNIVERSITY COLLEGE
FACULTY OF ACCOUNTING, FINANCE & BUSINESS

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Tutorial Class ………………………
Date ………………………. No. | Assessment Criteria | Number of page | 1. | Introduction | 6 | 2. | Porter’s Five Forces | 7-8 | 3. | Strategy Adoption: Porter’s Generic Strategy | 9-11 | 4. | Strategy Adoption: Growth Strategy | 12-14 | 5. | Recommendation: Market Challenger Strategy | 15-16 | 6. | Recommendation: Defense Strategy | 17-18 | 7. | Conclusion | 19 | 8. | References | 20 | 9. | Appendix | 21-23 | 10. | Safe Assign Report | 24-36 |
Table of content

Introduction
Tanjung Golden Village Cinemas was founded in 1995 and they are fully-owned subsidiary of Tanjung Public Limited Company. They had grown as one of the premier film distributor companies in Malaysia and they are still expanding their marketplace. As we know that, TGV cinemas are the one who first launched multiplex concept theatre in Malaysia, this unique and innovative thinking help them to hold a stable position in film distributor market and one of the major pursuits of TGV cinemas is to provide their customer impressive movie-going experience. They currently have 27 cinemas in whole Malaysia, and they had plan of decoration in 2010 only for their flagship outlet which established before 2005. After refurbished, TGV cinemas improve their facilities which can deliver superior images to moviegoers with unmatched brightness, sharpness images in 2D, 3D as well as 3D-X and maximize the theatre in order to provide customer comfortable seats and wider leg room. (TGV Cinemas, 2015)

Compare to the main competitor Golden Screen Cinemas, TGV cinemas are using differentiation strategy and focus strategy to identify their position, they are now leading in technology because they get the exclusive partnership with IMAX® Corporation who help them deliver immersive movie-going experience in their cinemas. They also apply Ansoff’s product-market expansion grid’s strategy which can help their business growth. In pursuit of perfection, TGV cinemas was started to take the initiative for enhancement of movie-watching experience, in order to etch its brand as market leader, we will recommend market-challenger strategy and defense strategy to them for improve their services and make them impregnable.

Porter’s Five Forces
Bargaining power of supplier
In the textbook, supplier s refer to the companies provide products to the industry (Farah WJ, 2014, p.g.21). Bargaining power of supplier is as they have potential to increase the prices of products such as raw materials, services and labor. Bargaining power of TGV Cinemas’ suppliers is low. TGV Cinemas’ main service is on the film. Suppliers of TGV Cinemas are film producers also known as distributors; TGV Cinemas as exhibitor. Distributors couldn't set the price too high in the open market as there are variety suppliers in the same industry. Once the cost of film is too high, TGV Cinemas might choose another film producer company. Distributors of TGV are 20th Century, the Walt Disney, Universal Studios and so on. As conclude, suppliers have low bargain power in price and sales when they serve a major customer.

Bargaining power of buyer
In the textbook, buyers are customers who finally consume the products or services. Bargaining power of buyer is low (Farah WJ, 2014, p.g.20). TGV offering the tickets prices fixable and thus consumers (buyers) unable control to drive down TGV’s ticket price. Bargaining power of buyer is low because TGV Cinemas provide facilities that could not found in GSC. Other than that, TGV Cinemas’ buyers want to consume at the lowest price, such as MBO Cinemas and GSC Cinemas. Thus, buyers could only refer another two companies to get the best deal.

Threat of new entrant
Threat of new entrant is low. Threat of new entrant is any entry into an industry might be potential threat or competitor to existing companies (Farah WJ, 2014, p.g.19). New entrants are not easily to open up a new company in this industry as they have to face a problem about capital requirement to compete TGV Cinemas and GSC Cinemas. New entrants need to have large capital to develop a new cinema such as purchase digital audio system, high-definition contents and comfortable seats. The new entrants also need to confront the government policy. The government shall be according the requiring license, access the raw materials and host of other regulations to limit or stop entrant into industries.

Threat of substitute product
Substitute products are the products or services that able to satisfy consumer’s need (Farah WJ, 2014, p.g.20). TGV Cinemas has moderate threat of substitute products as competing in entertainment industry. TGV cinemas will be release a new movie within one month to two month. After that, the film will not be showing at all times. Few months passed consumers able to enjoy movies through indirect competitors like channels such as 8tv, ntv7, HBO channel or even Fox Movies. HBO channel and Fox Movies are one of the channels of Astro. Despite consumers have to pay before enjoy it, but, they are paying the lowest price for the package and it is worth.

Rivalry among existing competitors
There is moderate for rivalry among existing competitors within the industry. All organizations are competitive struggle for market share in an industry (Farah WJ, 2014, p.g.20). In this situation, they will be competing by the way of advertising wars and pricing wars. Notwithstanding this will lead them to increase market share but it might affect a profitability of a company. In the Malaysia, there are few well organized cinemas. The direct competitor of TGV Cinemas is Golden Screen Cinemas (GSC). These two companies are doing the similar like privileges card. In other words, TGV launched out privileges card name as “Movie Club” recently; GSC has membership card for their loyal customers.

Porter’s Generic Strategy
In Porter’s generic strategy, TGV cinemas had used differentiation strategy and focus strategy, that can able be outperforming the others firms in the same industry and get competitive advantage. For differentiation strategy, TGV cinemas have to determine their business unique in the market and incorporate this characteristic into their marketing strategy, so that they can stand out in the crowded competitive market. TGV cinemas own and operate the largest multiplex cinema in the Malaysia which served broad range of customers. TGV targets a broad range of market and segment because it has the ability to fulfil their customers by offers the movie and features in the whole country.
TGV cinemas is actually differentiates from the competitors since it has reliable image and quality of services, this will make the TGV cinemas to create a strong brand name and build good reputation through good word of mouth received from customers. Other than that, TGV cinemas have cinema features and offer special services from their competitors. TGV Corporate Group’s provide entertainment as a core business activity, which is also responsible to offers highest quality cinema experience to their customers and ensure that to satisfy their customers. The services offered cover a wide scope of entertainment such as hall booking. TGV cinemas provides additional services to complement the corporate and private functions that allowed their customers to rent its equipment, convenient and comfortable cinema halls or auditorium for any purposes such as school play, fund-raising campaigns and other occasions which are not provided by some of their competitors. (TGV Cinemas, 2015)
Moreover, TGV Cinemas provided customized quality services that better than other competitors. They have well-trained front line staff to serve customer full with courtesy. More convenient to visit the customer services counter as well as display the detail information in the monitor. Operation hours are longer than the other cinemas so that TGV Cinemas has increasing the opportunity to compete their rivals. Membership reward has given to those members of MovieClub, the unique of TGV member reward accomplish their objective to satisfied MovieClub members like example one regular popcorn set plus two free movie tickets set may redeem by the member on their birthday month. In addition, TGV provides their movie shows that may differentiate from its rivals such as the higher cost and limited abroad movie that disallow to show in other cinema.
TGV cinemas are the first who launch the multiplex concept in Malaysia; they are providing 4 types of concept theatre which is Beanie, Luxe, Indulge and IMAX in their exhibition hall to fulfill customers need and want. For Beanie theatre, it had make people completely converts the traditional impression of cinema, is no longer the neat row of seat but the unique funky two seat bean bags that only available in Beanie theatre (show in Appendix 1), they advocate their exhibition hall is the most comfortable cinema in the world but they are not exaggerate themselves, because Beanie featuring funky bean bags that allow the people to kick back, relax and enjoy movies in unsurpassed comfort (TGV Beanie, 2014), and beanie also promote them as perfect place to have a movie date, without that obnoxious arm rest preventing people from snuggling with their date.
TGV cinemas also leading in technology compare to others film distributor, because they have exclusive partnership with IMAX ® Corporation. As we know that, IMAX ® Corporation is a Canadian theatre company that committed to pushing the border of cinema technology, and their purpose is to offer the most immersive movie-going experience to their audiences all around the world, and TGV cinemas get the unique opportunity to have cooperation with them, it makes TGV cinemas stand out in the crowded marketplace. TGV cinemas now can deliver the perfect audio and visual experience to their customers. Normally the exhibition hall with standard screens that are small compare to the TGV IMAX® screens which is spans wall-to-wall and floor-to-ceiling. The screen is wider and higher but the unique part is their screen is curved as well bringing customers closer to the screen and also will make people like there are in the movie because of the crystal-clear images and with IMAX® particular digital sound system. As a result that compare IMAX® with standard theatres, IMAX® provides 40% more contrast and 60% brightness which may bring movie goers to a real experience scene whether in 2D or 3D. After combine the propriety 3D projection technology, the image show clearly and magnified furthermore literally pop out from the screen contrast to the regular 3D cinema (TGV IMAX, 2015). Moreover, IMAX® theatre’s sound system is specialized consequently maximizes the volume surrounding the room with setting up the speakers around the hall.
TGV Cinemas focuses on a few target markets which is segments in all generation like provides limited age movies and free for all ages movies. For the new generation and young generation, TGV design their website with fully attractive image and media thus closer to them using technology as well as attract more those generation’s customers. Besides, TGV is segmenting upper and lower classes customers. Cheaper and higher prices are provided for customers to select. TGV charges a premium price for those upper class customers who willing to get high better performance of cinema service. By target the all classes of customer, standard prices offered to those who wish to enjoy their service too. Some high cost production of movie purchased by TGV to affect their opportunity to serve more around the whole country. TGV willing to invest more but also get better opportunities in fact to get more return and earn more profit.

Growth Strategy
TGV cinemas apply the market-penetration strategy, market-development strategy and product-development strategy to help their business growth.
Market penetration strategy is the companies penetrating its market more sufficiently, and it is typically the first step of a company to growth their business. For propose to gain more market shares by using their current services and markets, TGV cinemas through provide more value deals and distribution channel to their customer to fulfill the task. TGV cinemas were launched different type of value deals to their customer in a whole year. Firstly, they provided early bird price for their customers who choose to watch movie before noon (show in Appendix 2). There is an old saying, the early bird catches the worm which well express for this promotion. TGV cinemas be clear about the sales of morning session is not so popular, so they offer this promotion to get attention from people who are price sensitive, not only satisfied customer who are price sensitive, but also stimulate the sales in the morning. In general, the price will be cost RM8 per ticket, but there were some exception. For example, TGV cinemas in Kinta City, Ipoh and Mesra Mall, Terengganu are charging RM9 for this promotion, for Gurney Paragon Mall and Seberang Prai Mall which located in Penang and Miri Imperial Mall, Sarawak charge only RM6 for the early bird promotion (TGV Cinema 2015).

Besides, TGV cinemas also offer special price for student and senior citizens (show in Appendix 2), authentication will be based on valid student card and National Registration Identity Card (NRIC). And this promotion only carries out on weekday, movie before 6pm (Value Deals, 2015). In the modern time of internet, TGV cinemas also active in social network like Facebook, Twitter and Instagram to upload the latest movie information and promotion in these entire social networks and their customer can get the first-hand information and share with their family and friends. (For Immediate released)

Market development strategy is the companies expand their business to untapped market with existing product or services. For TGV cinemas, they are now focuses more on states that are being developed like Penang, Johor and especially Sarawak. Compare to the main competitor Golden Screen Cinema (GSC), their development plan are going slower than them. GSC already had 4 cinemas in Sabah and Sarawak but TGV cinemas just opened one at Miri, Sarawak in 2014 (TGV Cinema, 2014). But TGV cinemas choose Miri as the first market they entry in Sarawak, same as their competitor, what are TGV cinemas try to prove? Since GSC are pioneer who enter into East Malaysia’s market, what services are they provided are already well-known by the local residents, so TGV cinemas bring together with their unique Beanie theatre into Miri to give a pleasant surprise of its subversive concept innovation. And TGV cinemas plan to open two more cinemas in Sabah and Sarawak during 2016. (For immediate released)
And the last strategy TGV cinemas used to grow their business is product development strategy. For product development strategy, which mean the company launch new product or services to current markets. TGV cinemas often introduce their innovative popcorn favors like roasted chicken, cheesy corn, kimchi and curry (For immediate released). Recently, they launched Sour cream& onion popcorn (TGV promos 2015) and peanuts flavours royale popcorn (TGV promos 2015) (show in Appendix 3 and 4), the combination of peanuts with their signature popcorn in their cinemas. All these flavours are only serving in limited time, so that TGV cinemas can always bring out another special flavour to surprise their customers.
Moreover, TGV cinemas was launched a new concept theatre in 2014, which call Indulge. Indulge to provide one-stop services to their customer (TGV Indulge 2014), TGV cinemas know that most of the people will go for meal before or after the movie, so they are now offering fine dining combine with posh cinema experience. For Indulge theatre, they will provide blanket in every seat, and their reclining seat are allow their customer to adjust the angle that they are most comfortable with and the table in front of the seat is belonging with call button for waiter-services (show in Appendix 6). Besides, the most anticipated part is their restaurant, customers can enjoy their meal in posh ambience with classy jazzy tunes. Their restaurant are provided Asian-western fusion of fine-dining meals, same as the others high-end restaurant (show in Appendix 5), TGV Indulge also offer appetizer, main course and desserts. In a surprise twist, TGV Indulge are charging lower than others high-end restaurant even though they are offering almost the same service as others in posh environment, their price is reasonable with nothing over RM30. TGV Indulge will be the first choices for those who are looking for fine-dining with movie experiences.

Recommendation of Market Challenger Strategy
In cinema industry, the strongest competitions are exist between TGV Cinemas and GSC Cinema. TGV Cinemas and GSC Cinemas are having the same product which is service product. Not only having the same product, their price of product, place and promotion method is very similar. We recommend TGV Cinema to use bypass attack. Bypass attack is an indirect attack and it is most indirect assault strategy. TGV Cinemas can expand their business to new geographical markets. TGV Cinemas can diversify into new geographical markets that GSC Cinemas not enter yet. For example, TGV Cinemas can open new branches at the state that do not have cinemas which is Perlis, Kelantan and the Federal Territory of Labuan. Therefore, TGV Cinemas are able to avoid from frontal attack with GSC Cinemas. At the same time, TGV Cinemas also expanded their business to new geographical markets. Other than that, TGV Cinemas can also diversify into unrelated products. TGV Cinemas can build up a film school to educate teach somebody how to be a decent filmmaker and produce a good film. When students produce a good film, TGV Cinemas can broadcast the film in cinema. They can gain good reputation for their film school as they able to produce a good film. At the same time, TGV Cinemas can increase sales as customer only can find the film in TGV Cinemas.
In flank attack, TGV Cinemas and GSC Cinema are the strongest competitors between each other in cinema industry. To capture more market share, TGV Cinema must overcome GSC Cinemas’ weakness to attract GSC Cinemas’ customer come to TGV Cinema. The main reason people go cinema watch movie is to enjoy the better environment and sound system in cinema. Therefore, recommendation for TGV is to upgrade all seats, audio system to create a better environment. Customer who more concern about their satisfaction during movie session compares to price will choose TGV Cinemas. When customer enjoy every movie session with TGV Cinema, they will become loyal customer of TGV Cinemas. Besides that, TGV Cinemas should put more effort on Customer Relationship Management (CRM). TGV Cinemas newly launched privileges card name 'Movie Club' However, customer need to pay registration fees to get the privileges cards. TGV Cinemas should direct send a privileges card to their loyal customer so that customer will feel that TGV Cinemas care about them. Customer Relationship Management (CRM) will be easier when customer spend in TGV Cinemas by using the privileges card. System will record every transaction made by customer in TGV Cinemas. So TGV Cinemas can understand customer's preference by using Customer Relationship Management (CRM). Other than that, TGV Cinemas can provide variety of food attract customer who love to eat when watch movie. Some customers maybe will spend in TGV Cinema because TGV Cinemas have more choices on food. Therefore, provide variety of food also help TGV Cinemas to attract more customers.

Recommendation of Defense Strategy
As we know that, defense strategy is a weapon of company that reached a market-leading position, then they may need to use such strategies to protect their existing market competitiveness, while trying to expand total market size, Tanjung Golden Village Cinemas must continuously and actively defend it current business. We recommend Tanjung Golden Village Cinemas to use position defense strategy and mobile defense strategy.
For position defense strategy, which mean the most desirable market space in consumers’ mind, making the brand unable to replace with others competitor, when consumers want to watch movie, will preferentially choose TGV cinemas. We recommend TGV cinemas to give impetus to advertise their movie club not only in the cinemas, but also through social media, brochures and so on to let more people know the advantages of being a member. Since their movie club is almost perfect compare to their competitors, what they have to do is just to make the customer more familiar their services and increase customer loyalty through movie club.
Besides, we recommend TGV cinemas to use mobile defense strategy. TGV cinemas can stretches domain over new territories through market broadening which mean they can offer new services, entering to new market or making change in their existing services provided. TGV cinemas is a pioneer who first introduce of multiplex concept among cinema operator in Malaysia, they already had IMAX, Indulge, Luxe and Beanie concept in the marketplace, but they are only launched all these concepts in main city centre like Selangor, Penang, Johor Bharu and Kuching. Their innovation thinking is a source to attract a lot of customers, many consumers are expecting TGV cinemas to surprise them in their innovation. We suggest TGV Cinemas to create new concept in their cinemas like massage chair theatre. We believe that it will be a trend among film distributor and also make office worker become frenzy for the massage chair theatre. This is because most of the customer will choose to watch movie during weekday, the price in weekday is cheaper than weekend and normally they will watch movie after they worked. If TGV cinemas launch massage chair theatre, it make customer feel relax and comfortable when they are watching movie, not only the sensory enjoyment with high definition content and the best sound system but also the body massage in theatre.
The welfare of disabled people should have aroused the concern of the society, they are able to have the right to watch movie in cinemas. TGV cinemas can improve the facilities for disabled people and senior citizen, so that they can enjoy the movie in high definition and the best sound system same as the others. TGV cinemas can first to build elevator at their waiting area or entrance of theatre and commit to provide wheel chair access in all their cinemas for disabled people and senior citizen. Normally, most of cinemas only have staircase and escalator to enter into the theatre, but it is very inconvenient for people with disabilities and senior citizen. And also in the hall, TGV cinemas can arrange the top two rows of seats for disabled people and senior citizen, and they should separate into 3 areas that for wheelchair user, sight impaired people and hearing impaired people. For sight impaired guests, TGV cinemas can provide headsets at the start of the screening, and they are allow to bring along with their guide dog into the cinemas but have to inform cinema when they buy ticket, so that TGV cinemas can allocate the appropriate seat for them. And for hearing impaired guests, TGV cinemas can fit the hearing induction loop in the theatre to make sure they can feel the sound effect of the movie. In order to reduce the burden of their bodies, the top two rows is the best choice for them.
TGV cinemas also can first launch the family ticket combo in their company. We suggest them to offer family ticket combo is to make their customer more convenient. Nowadays most of the family choose to watch movie together during weekend and public holiday, but they can only buy in normal ticket price. The main objective of family ticket is to attract the attention of people that they are now can bring their whole family to TGV cinemas and enjoy the special price for family tickets, and this promotion are only offer to family minimum with 2 children that below 13 years old and only valid for PG and G rated movie. Besides, this family ticket combo also include drinks and snacks, this may be a price worth paying for the greater convenience offered by TGV cinemas.

Conclusion
In conclusion, TGV Cinemas is second largest cinema in Malaysia. They have moderate bargaining power of supplier as they could not increase too much on price. However, bargaining power of buyer is low because customers do not have the power to make any changes on ticket price. Threat of new entrant is low as new entrants need a large capital to start up a new company to compete existing companies. Threat of substitute product is moderate because consumers may found movies after cinemas are not display. There are also moderate rivalry competitors in cinema industry. In Porter Generic Strategy, TGV Cinemas choose to use differentiaton strategy to compete with other competitors in cinema industry to get competitive advantage. TGV Cinemas focus on differentiate themeselves from competitors. In order to differentiate them, TGV Cinema creates good reputation and strong brand name. TGV also provide special services that couldn't get from competitors. For defense strategy, we recommend TGV Cinemas to use position defense strategy and mobile defense strategy to defend their business from competitors' attack. TGV Cinemas should do more advertising to promote Movie Club so that customer will know more about the benefit of getting a Movie Club card. TGV Cinemas can offer new services, entering to new market or making change in their existing services provided for mobile defense strategy. Besides that, we recommend TGV Cinemas to use bypass attack strategy and flank attack strategy for Market Challenger Strategy to attack against competitors.

References

1. TGV Cinemas, 2015, Overview, viewed 22 February 2015,
<http://www.tgv.com.my/about-tgv/about-us.html >

2. Farah W.J, Ezatul Emililia M.A, Hen K.W, Wan Anisha Wan Mohammad, Noor Akma M.S. , Yew K.H. , Esther C.W.Y. , 2014, Information System, Hong Kong, Mexico City, Taipei, Toronto, Oxford.

3. TGV Beanie, 2014, WELCOME TO THE WORLD’S MOST COMFY CINEMA, viewed 24 February 2015, < http://www.tgv.com.my/cinemas/halls/beanie.html>

4. TGV IMAX, 2015, IMAX®, viewed 24 February 2015,
< http://www.tgv.com.my/cinemas/halls/imax.html>

5. TGV Cinemas, 2015, Value Deals, viewed 25 February 2015,
<http://tgv.com.my/promotions/promos/value-deals>

6. TGV Cinemas, For immediate released, viewed 26 February 2015,
<http://tgv.com.my/about-tgv/media/General_Post%20_v1.pdf>
7. TGV Cinemas, 2014, Permaisuri Imperial City Mall, viewed 26 February 2015, <http://tgv.com.my/cinemas/permaisuri-imperial-city-mall>

8. TGV Promos, 2015, Sour Cream & Onion Popcorn, viewed 26 February 2015,
< http://www.tgv.com.my/promotions/fnb/sour-cream-onion-popcorn>

9. TGV Promos, 2015, Royale Peanuts Popcorn, viewed 26 February 2015, http://www.tgv.com.my/promotions/fnb/royale-peanuts-popcorn

10. TGV Indulge, 2014, Here is where style meets cinema, viewed 27 February 2015,
< http://www.tgv.com.my/cinemas/halls/indulge.html>

Appendix
Appendix 1

Sources: <http://www.tgv.com.my/cinemas/halls/beanie.html>

Appendix 2
Sources: http://www.tgv.com.my/promotions/promos/value-deals

Appendix 3
Sources: <http://www.tgv.com.my/promotions/fnb/sour-cream-onion-popcorn>

Appendix 4
Sources: <http://www.tgv.com.my/promotions/fnb/royale-peanuts-popcorn>

Appendix 5

Sources: <https://jannahmdisa.files.wordpress.com/2014/09/lounge.jpg>
Appendix 6
Sources: <https://farm6.staticflickr.com/5594/14882260647_2ebd70d36f_z.jpg>