SCHOOL OF BUSINESS AND MANAGEMENT
BANDUNG INSTITUTE OF TECHNOLOGY
2012
CHAPTER 1
INTRODUCTION
1.1. Background (ini gua tuker sama business situation, kayanya ga nyambung soalnya hehe)
The existence of cinemas in Indonesia was first introduced by the Dutch, not long after it started moving image technology commercialized in Europe. The industry has experienced a period of ups and downs are motivated by political, economic and socio-cultural from Dutch and Japanese colonial era until the time of the old order, the new order and reform. In the era of 1990, the Indonesian film industry through adversity, many Indonesian people who prefer to watch the broadcast of private TV, this is due to lack of supply of available movies in cinemas Indonesia, almost all movies in Indonesia struggled themes for adults, while the community at that time requires choices more hardcore variety. At that time, Indonesia has no films to host again in their own country.

1.2. Business/ Industry Situation
The development of film in the country is still far from expectations, appears an investor named Sudwikatmono, a businessman who is also the national younger cousin of former president Suharto. But lately Sudwikatmono withdrew from the group. Group 21 is now dominated by Benny Suherman and Harris Lesmana. In order to drive its business, the Group 21 established PT Nusantara Prosperous Kingdom which now dominates the national cinema chains. PT Nusantara Prosperous Kingdom is a master theater titled Cinema 21, Cinema XXI, and The Premiere.
In addition, to control the film distribution chain, 21 groups builds three companies that led by Harris Lesmana which is Camila Internusa, PT Satrya Perkasa Esthetika Film, and PT Amero Mitra Film. The first two name that dominate the distribution channels films Motion Picture Association of America/ MPAA whereas special Amero importing non MPAA movie. MPAA is an association comprised of six major producers of Hollywood films that Warner Bros., Paramount, 20th Century Fox, Sony, Universal, and Disney. So if there are American films that are still playing in theaters 21 mean that the film is not the sixth studio's output.
From the facts above, we can know that 21 groups already dominated the national cinema chains. Until now, the Group already has 21 of the total 178.130 cinema theaters in Indonesia. Seen by naked eyes and view the number of movie theaters as well as the possession distribution network, Group 21 has done monopoly practice, However there is now a single competitor, Blitz Megaplex in the world of cinema in Indonesia.
An investor named Ananda Siregar Haris who is the founder of Blitzmegaplex keen to see the market opportunity in cinema industries is still quiet. Cinema market in Indonesia is huge, given the number of Indonesia's population of 250 million people, and coupled with the increasing number of middle-and upper-class citizens in this country. Started since 2002, after deciding steady plunge in the cinema business man who is familiarly called Nanda, conduct a comparative study on the entertainment industry in Indonesia. After going through various studies and winding process, Nanda steady and began operating the Blitzmegaplex in mid-October 2006. What was originally located in a shopping complex called Paris Van Java, in numbers Sukajadi, Bandung, and expand the network to the Blitzmegaplex Jakarta and several other locations. Been running about four months, the Blitzmegaplex have controlled 52% of the market audience in Bandung, with the average number of visitors ranging from 4000 to 5000 on weekdays and reach 7500 visitors over the weekend. Blitzmegaplex concept itself, try to offer a different experience in watching movies at theaters. How to purchase tickets, movie information, movie selection, promotion, scheduling the film, the concept of waiting rooms, food and beverage, merchandise until the atmosphere in the studio. All are packed with interesting and unique concept. (yang gua tuker sama background)

1.3. Competition Situation
The current world of cinema in Indonesia is controlled by two large companies, Blitzmegaplex and Cineplex 21, which has a wide network in Greater Jakarta (Jabodetabek) and Bandung. In 2006 Blitzmegaplex comes first in Bandung by targeting middle up segment. The enthusiasm of the audience to Blitzmegaplex is marked by the acquisition of its market share that shows more than 40%. Therefore, the network Cinplex 21 to make changes in a variety of ways, one of them did a pretty drastic price reduction so that viewers now have another alternative.
Cineplex 21 has a number of buildings and theaters more than Blitzmegaplex. Cinema’s visitors of Cineplex 21 have economy-class backgrounds that are diverse, from the lower middle, upper middle, and upper. This cinema was only play movies that are in celluloid concept and movie characters are played more to common-themed movie and easily understood by the general public.
While Blitzmegaplex despite having a smaller number of theaters, this cinema’s network continues to grow the good experience in visitors. Blitzmegaplex has more exclusive image compared to Cineplex 21 and has visitors coming from the upper middle class and above. This is because in addition to showing films that general theme, Blitzmegaplex also aired movies are unique, independent-spirited films which are intended market niche (certain communities that has little scope). Blitzmegaplex also often used to hold an international film festival.
But when talking about the comfort offered, many visitors prefer to watch at Cineplex 21 rather than Blitzmegaplex. Sofa in Cineplex 21 had a higher comfort level with the extra large size sofa. Then Cineplex 21 has a distance between the couch-to-couch, the front and rear even further, so that the audience can freely move. There are also many visitors who considered Blitzmegaplex seats are smaller and when while watching, be hindered by the shadow of the audience’s head in front of our seat.
Network Cineplex 21 which has become a giant theater company in Indonesia is a major difficulty for Blitzmegaplex that stood just for several years. The concept formed by Blitzmegaplex, "Spread The Wings, Challenge The Giant", is represent a new and young company that will expand the industry reaching the big screen in Indonesia with increasing size, synergy, and enhance the position of the competition. While the "Challenge The Giant" is a representation of the challenges facing Blitzmegaplex as direct competitors market authorities that have stood for decades, have great resources and have a strong network.

1.4. Problem Definition
How Blitzmegaplex compete their only competitor, Cineplex 21, that already stand for decades, have a great resources and have a strong network?

CHAPTER 2
THEORETICAL BASED

2.1. Marketing Mix Theory
Marketing mix is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market.
The 4Ps are:
• Product (or Service)
• Place
• Price
• Promotion

2.2. Segmenting, Targeting, and Positioning Segmenting, Targeting, and Positioning are one of fundamental things in marketing. Segmenting, Targeting, and Positioning are:
• Segmentation: grouping consumers by some criteria, such that those within a group will respond similarly to a marketing action and those in a different group will respond differently.
• Targeting: choosing which group(s) to sell to.
• Positioning: select the marketing mix most appropriate for the target segment(s).

2.3. SWOT Analysis (tolong dong tambahin penjelasan tentang SWOT analysis  )

CHAPTER 3
BLITZMEGAPLEX

3.1. Company Profile
Blitzmegaplex was first established in Bandung at 16 October 2006. Blitzmegaplex is a cinema that able to give their customer a different experience when watching movies. Blitzmegaplex have total 7 branches which is 1 branches in Bandung (Paris Van Java Mall) and the other 6 branches in Jakarta (Grand Indonesia, Mall of Indonesia, Teraskota Mall, Central Park Jakarta, and Bekasi Cyber Park).
Various movies can be enjoyed in here, because Blitzmegaplex has minimal 8 cinema screen in each location. The number of the screen provide an opportunity to watch a wide range of film genres, not just Hollywood movies, but also Film Festival, Art House, Film India, animation and a variety of films from all over the world with different languages.
The technology used by Blitzmegaplex can also provide its own comfort for the audience. . While waiting for the movie aired, customer can spent their time by playing games on BlitzGameSphere, RealD 3D technology makes the 3D movie event becomes more comfortable, buy merchandise in BlitzShoppe movies, and spending time at the café Blitzmegaplex to a WiFi network that allows you to always be connected to the Internet.
Blitzmegaplex always provide promotional program to satisfy the customers. Innovation is their priority to attract the customers. Blitzmegaplex have some achievement due to their innovation and get recognition from customers through awards received, including:
• Blitzmegaplex received MURI (Museum Rekor Indonesia) award as "the biggest cinema in the country" in 2007.
• Blitzmegaplex Paris van Java Bandung reached a record breaking 1,000,000 admissions in only a year after its launch in October 2006.
• Blitzmegaplex Grand Indonesia achieved a record of 10.600 admissions in one day during the 2007 summer blockbuster release period (June 2007).

3.2. Product Information (ini gua cut dari 4P)
Reguler Class
Regular class is the most standard of Blitzmegaplex product. This class has an auditorium with the standard of capacity about 200 seats.

Regular Class Interior in Blitzmegaplex
Satin Class
Satin Class is a product that the level is above the regular class. This product is currently only available in Grand Indonesia, Central Jakarta. Rows of satin class is located on top of the podium with a shape more comfortable seats, a small table, and a wider leg room. The capacity is made up of each of the 64 reclining seats for 2 satin class lounge in auditorium auditorium 1A and 2A Blitzmegaplex Grand Indonesia. Today, the cinemas in Indonesia are no longer applied the class system in the auditorium seating, influenced by the concept cineplex brought by 21 Cineplex. After all this time Indonesian customer have been familiar with the concept of 21 Cineplex, now Blitzmegaplex offers a class concept seat cinema like in the past such as the concept of opera or where there are regular classes as well as VIP. Class Satin interior in Grand Indonesia
Velvet Room
Velvet Room offers comfort in auditorium with special sofa bed. The customer can watch movies with extra comfort pillow while sleeping has soft and warm blankets. Blitzmegaplex also provide slippers bed that can be used if you want to go to the toilet. If you need help, viewers can call the clerk simply by pressing the button located on every sofa bed. This product is available at Pacific Place Mall and Mall of Indonesia. The capacity is made up of 21 sofa beds for 42 people in the Mall Of Indonesia and 17 sofa beds for 34 people at Pacific Place Mall. Velvet Room in Pacific Place Mall and Mall of Indonesia
Dining Cinema
Blitzmegaplex open dining cinema as a product innovation on November 5, 2008 at Mall of Indonesia. Concept Dining Cinema combines the enjoyment of watching movies fun and enjoyment in a special dish, special comfortable auditorium and elegant limited capacity. Cinema auditorium dining atmosphere is much like velvet class, but the seat is not sofa bed, it’s a ordinary seat but superbly fitted out with a dining table. The capacity is made up of 32 reclining seats in Mall Of Indonesia. Dining Cinema
3D Cinema
To keep up with technology in the world of audio video, Blitzmegaplex indulge the audience with 3D movie playback supported by RealD technology. Blitzmegaplex first 3D Cinema presents in Grand Indonesia in April 2009. Blitzmegaplex intentionally provide special auditorium to play 3D films to maximize the ability of RealD technology. This is different from the main competitor, Cinema XXI, which is playing a 3D movie on regular studio. To watch 3D movies, the audience will lend special glasses so that the images shown may appear more dimensional. Auditorium with a special silver screen that is used to support RealD technology can also be used to show films non 3D so the resulting picture is better. It often causes Blitzmegaplex also play regular movies (non-3D) at the auditorium which is used to play 3D movies. Ticket prices for 3D movies are various for each cinema.
Side Product
Beside selling tickets, Blitzmegaplex also has supporting facilities that called a business unit. Blitzmegaplex side product consisting of:
- Blitzshoppe the movie merchandise sales facility.
- BlitzgameSphere the game play area with a variety of console like PS3 and Xbox Blitzcard special holder.
- Blitzcafe providing beverage menu choices.
- Blitzbeat the media to download music.
- Billyard and karaoke entertainment facilities
- Professional service for business or promotional Auditorium rent, booking movie screening, screen ad/ branding packages, cafe booking, booking hall.
Blitzcard
Blitzcard is the name for a pre-paid card Blitzmegaplex. Blitzcard enable the customers to book tickets via the internet as well as choose the seat by himself. Blitzcard also can be used to enjoy treats like gamesphere entertainment and karaoke. Customer can top-up the blitzcard through several bank accounts in cooperation with Blitzmegaplex and the balance will be reduced when customers use the facilities Blitzmegaplex. Blitzcard user customers also get various attractive offers such as discounts, vouchers, free tickets, and so on. The uniqueness of these offering alternatives to purchase tickets directly at the counter so customers do not need to queue for hours before the movie starts to get your favorite seat.

CHAPTER 4
ANALYSIS OF BLITZMEGAPLEX

4.1. Marketing Mix
• PRODUCT (berhubung di cut ke product yang di company profile, harus ditambah ga yang disini?)
Core product: As a theater company. The biggest income of Blitzmegaplex is comes from the sale of movie tickets.
• PRICE
In setting ticket prices at a given location, the Blitzmegaplex’s management had been surveying the purchasing power of customers. And the ticket prices are set by the adjacent competitors. Here is a table showing Blitzmegaplex ticket prices based on the place, and day classes. (WHERE IS THE TABLE??)
• PLACE (ini foto2nya gua cut demi me-minimize halaman, masukin ke slide aja kalo mau)
Blitzmegaplex apply different interior designs for every cinema adapted to the target market in the area.
 Blitzmegaplex Paris van Java Bandung set the targets for young people so the interior design is more fashionable, minimalist and warm.
 Blitzmegaplex Grand Indonesia minimize shades of red and white to give the impression of modern because its target audience is young employees (young adult to adult).
 Blitzmegaplex Pacific Place predominantly have brown color to give the impression of elegance and warmth, because the Pacific Place target is the upper middle class executives who is more mature age (late adult) than Grand Indonesia.
 Blitzmegaplex Mall of Indonesia (MOI) has dominant oriental red shades because mostly visitors are Indonesian ethnic Chinese descent.
Management of Blitzmegaplex is more advance with the implementation of the concept of interior design, so customers can feel different atmosphere when they comes in every cinema of Blitzmegplex. Blitz focuses on the location of the center's key businesses, such as Bundaran HI, Kelapa Gading, Senayan, and Serpong. It is intended because of their target market is middle-up class that has a lot of activity or live in the area surrounding the business center.
• PROMOTION
Customer Relationship Management (CRM)
To establish a good relationship with customers and maintaining relationshop with them, Blitz has conducted orientation to the customer. CRM Blitz performed well online and offline, by utilizing networking sites Facebook to listen and communicate directly with customers or by holding festivals and events promotion.
Blitzmegaplex had been collaborated with RCTI / MNC Innoform Sports and Media that hold a live broadcast of some of the European Cup (UEFA EURO 2012) from June 8 to July 1, 2012 in Poland and Ukraine.
There is a link to the community website like Facebook, this is very good strategy and efficient because it has compatibility with the intended target segment. It can be said the implementation of the internet, especially Blitzmegaplex website has been more mature and experience factor, retention, and bonding.

4.2. Segmenting, Targeting, Positioning
Segmenting:
Based on Ages:
- Kids (5-11)
- Teenager (12-17)
- Young Adult (18-34)
- Adult (more then 35)
Based on economic background
- Lower Class
- Middle Class
- Upper Class
Based on behavior
- Movie goers
- Movie buff
- Movie critic ?
Targeting:
- Young adult
- Middle & Upper Class
- Movie buff
Positioning:
A one stop entartainment that provide different experience in watching movie, food & beverages, games, and other entairtainment with luxurious facilities and unique atmosphere.
Blitzmegaplex is targeting their market to upper medium class people. It is shown by the price of their ticket, the dinning, and their facilities. In Blitzmegaplex we can rent the auditorium to held a meeting or studying also to watching a movie. There is another facilities that blitz provide to their customer such as gaming zone, billiard room, stage, live music, DJ, and function room. We can held an event in their function room, it`s just like all entertainment under same roof (one stop entairtainment).
Blitzmegaplex more concern about customer whose have desire to watch movie with different way. That is why they make stadium seating in purpose to make unobstructed view. Blitz often shows the movie that very uncommon in Indonesia. Their movies are not mainstreams.
With this kind of facilities, Blitzmegaplex is really wants to pleasure their customers. They bring the movie more exclusive than 21 because they want their customer have an exclusive experience when watching movie.

4.3. SWOT Analysis
Strengths:
• Blitzmegaplex still superior in terms of quality screen and digital studio.
• Wide screen in the studio over and supported by a clear sound.
• The presence of a network 21Cineplex Blitzmegaplex make clean up a lot of renovating theaters with increasing grade of Studio 21 being studio XXI. (maksudnya gimana?)
• Blitz Megaplex very open to importers films outside Hollywood movies MPAA.
• Blitzmegaplex have a wide range of movie’s genre by routinely play movies from India, Thailand, Korea, as well Europe.
Weaknesses:
• Cinema 21 has more cinema in Indonesia than Blitzmegaplex.
• Luxury class (velvet and satin) is only available in Jakarta.
• They still have a cinema that have uncomfortable seats.
Opportunities:
• Selection of movies offered by Blitzmegaplex more diverse than XXI.
• Many people who spend their spare time to watch at the cinema.
• The growth of movie in world as well as in Indonesia are increase.
Threats:
• XXI built a premium class like XXI Premier.
• XXI develop facilities to compete with Biltzmegaplex.
• XXI offer cheaper ticket prices than Blitzmegaplex.

4.4. Conclusion
To dealing with their weeknesses and to face the threat in front of them, our group have made a several recommendation to improve Blitzmegaplex performance :
• Blitzmegaplex should be able to maintain excellent service quality to the customers. Such as constantly giving discount price promo for loyal customers.
• Expanding the network by opening new outlet in around of Indonesia to compete 21 Groups.
• Improve amenities by replacing the existence seat with a more comfortable seat.
• Open premium class in every place of Blitzmegaplex