Market analysis and management of Liberty Cinema

Market analysis and management of Liberty Cinema At the liberty cinema, the customer comes to the location in order to get the move entertainment, since the customer has to be physically present to experience the movie on the theater screen. The geographical cinema is conveniently located at No 35, Dharmapala Mawatha, Colombo-3. This location is very convenient since it is in the heart of Colombo making it easily accessible for all the customers from Colombo as well as out of Colombo. (Service schedules) Speak about time, only geographical location is mentioned People According to Lovelock and Wright (2002) people mean customer and employees who are involved in service production and provision, and many services depend on direct personal interaction between customers, firms and employees. The nature of these interactions strongly influences the customer perception of service quality. Customers often judge the quality of the service they receive largely on their assessment of the people proving services. From a cinema customer expect standard service, value for money and so on. On the other hand the employees need to enhance their profitability by satisfying customers fully. The targeted groups of customers for liberty cinema are mainly teenagers between 16-24 years of age, children under the age of 16 and families and therefore they screen cartoons, fictions and actions movies (English and Hindi only) in order to cater to their target market well. They screen these movies along with the worldwide release dates in order to cater the desperate customers well in advance. As you can see from the diagram, Liberty Cinema employees 17 staff that are recruited by the firm and 2 security officers from an outsourced company. Special training has been provided to the technicians to overcome any interruption .All employees are highly motivated and their efficiency can be easily seen on highly crowded days. Speak about front stage and Back stage employees in the organization try to divide employees The success of marketing a service is tied closely to the selection, training, motivation and management of people (Payne, 2001) Physical evidence According to Lovelock and Wright (2002) and marketing terminology glossary Physical Evidence refers to visual or other tangible parts or clues that provide evidence of service quality and performance which customers can actually see or experience when they use a service. (http://www.mshmgi.com/glossary,P,Physical+Evidence.html) (Lovelock and Wright, 2002 (Offline), Principles of Service marketing and management, Second edition) Or This is the service firms physical environment where the service is created and where the service provider and customer interact, plus any tangible elements that are used to communicate or support the role of the service. (the essence of service marketing, series editor: adrian buckley, author: adrian payne,2001) In this service which is the film entertainment the visual or the other tangible clues that provide evidence of service quality and performance comes in a number of various ways. The Paper works such as invoices which are given when advance booking is made by visiting as well as the e-mail when booked over the internet and tickets provided before entering the cinema hall, furnishings of the interior cinema and seats, Internet WebPages (www.eapmovies.com), uniforms of employees (the employees wear black color trousers and orange t-shirts with the name EAP movies printed on left pocket), the building, the advertisement provided in newspapers and websites and so on. Speak about Create and maintain physical appearances Buildings/landscaping Interior design/furnishings Vehicles/equipment Staff grooming/clothing Sounds and smells Other tangibles Manage physical cues carefully- can have profound impact on customer impressions Product All the components of core and supplementary products that create value for customer Core product and supplementary products of Liberty Cinema Core product In service marketing, product refers as a service. product must be unique from competitors because when customers approach to service organization customers must feel no other service providers offer such features, Libertys core service is entertaining customers so their core product Is movies, especially shows latest Hollywood and Bollywood movies, particularly U rated movies, Liberty targets only Family movie. Supplementary product Supplementary product is additional service, that is delivered during the core production process in order to enhance the core product value and make customers to feel more convenience, Liberty is a one of the best cinema hall in Colombo that provides supplementary services that are Car park (outsource) Snack shop Comfortable seats Air condition Reservation State of the Art Surround Sound System It is apparent is a cinema hall cannot have many other supplementary services however, Liberty provides necessary additional requirements. Other types of products Expected product Expected product (service) is directly links to Core product, Expected product, is customers expectation on the core product. Customers expectation entertainment movies, if customer is not satisfied shown movie. Lets say Two movies are released X and Y and liberty shows Y movie but customers expectation is X movie definitely that will ruin Libertys reputation and profit. Therefore, not only Liberty but also other Service organizations must consider customer expected product. Productivity and Quality Efficient and effectiveness in Service Productivity Better Service productivity is the degree to which organizations reduce input and increase output that is the existing trend in service sector this will help to increase profitability so as Liberty Follows this concept. Productivity can be easily seen when present at the cinema. The staff is highly efficient and productive, helping keep the environment clean and having the viewers enjoy the movie with maximum clarity and quality. Due to this success, Liberty Cinema enjoy houseful shows every time a box office movie is released, which earns an average revenue of Rs 600,000.00. In terms of productivity, Liberty Cinema employees 14 staffs and manages motivate them to gain their potential output. The premises is kept clean after every show so that everyone is able to enjoy. Customer driven approach productivity used in Liberty cinema Changing the timing of customer demand Liberty Cinema, tries their best to cater to the growing demand. They only provide the latest movie and they try their maximum to shows movies on simultaneous release all over the worlds. Example : Raavan was released simultaneously with the world wide release. Robin Hood is delayed due to the growing demand for the movie Eclipse. Involving customer more in production Customers involvement is huge during service production because they have to do all the task to get the service, technologies introduced to reduce the involvement of employees For E.g. Customers can get information such as show time ,place and can reserve tickets from Libertys website, Eticketing or can reserve ticket within a minute using Dialog SMS. Customers willing to server by themselves than others so as liberty follows this concept. For e.g. self-service pumps have increased gas station productivity (book) These factors shows Liberty currently involving improve productivity in order to unique among competitors. Service Quality Liberty Cinema enjoys to be the best state of the art modern theatre, its only competitor is also managed by their parent company that Savoy Cinema. Customers always compare the service with other competitors, when quality is below than competitors that shows poor service quality. Analyzing Libertys service quality dimension Reliability At the liberty cinema there 17 staffs including a manger, they works as a team to provide service accurately without any delay that is what customers always expect. In addition, it is a cinema hall so complete operation is depends on back stage staff, for e.g. they have three operating staffs, an accountant to keep organization finance record. Tangibles Liberty Cinema has been recently undergone refurbishment to give a modern touch. The exterior is more of a classic theater and interior is cozy making the viewer to enjoy the movie. The seats of highest quality and is placed and arranged to provide a clear view of the giant screen. Responsiveness and Empathy Liberty shows movies on time, but customers mostly need to wait to get tickets but they can book in advance by Email/Dialog SMS and can obtain the ticket in less than 2 minutes. Assurance To have good relationship with customers Libertys front stage people are ability to speak fluently in three languages and they are very polite with customers, and backstage staffs well trained to perform services for E.g. To be a Libertys main operator needs minimum two year experience as a co operator. Liberty should improve and maintain quality in order to acquire benefits in long run. Price http://www.eapmovies.com/internal/rates-and-show-times/ Management team tries their best not to vary the price of the ticket depending on what movie you watch. Since, there is less crowd attendant the cinema on weekdays; the management has reduced the ticket prices by Rs 20.00. They believe that this is successful to some extent. Marketers must recognize that customer outlays involve more than price paid to seller Traditional pricing tasks: Selling price, discounts, premiums Margins for intermediaries (if any) Credit terms Identify and minimize other costs incurred by users: Additional monetary costs associated with service usage (e.g., travel to service location, parking, phone, babysitting, etc.) Time expenditures, especially waiting Unwanted mental and physical effort Negative sensory experiences Promotion and Educational Liberty Cinema collaborates with other firms for its promotional campaign. Liberty Cinema uses the following Media for their promotional activities. Radio they collaborate with leading radio station and give away movie tickets to lucky winners. Paper Every weekends in all leading newspapers, Liberty Cinema gives away tickets to winner for question that are based on the current movie that is showed at the cinema. TV- With the help of the sister company Liberty Cinema promotes their movies on Swarnawahini providing review of the movie also promoting their service. Facebook Fan Page Depending on the movie that is screened, the promotion depends. Kids Movie- advertisement and posters at schools and also ticket is slashed by 40 % if a group visits. Teens and Adults Promotions at institutes and firms a Since they are located in a metropolitan area, any traveler or passer can easily notice the latest movie. They also have a large Screen providing movie trailers to passer, allowing them to see a glimpse of the movie. Instructional Material This is where the user or consumer is being helped with services that are provided. Liberty Cinema, does provide sign boards for the supplementary services that they provide additionally in case of emergency they will also project it on to the screen. Ex Vehicle Block. Liberty Website, Facebook and newspapers do provide full details the services that a movie fanatic can expect. Process