INDIVIDUAL EXTENDED EXECUTIVE SUMMARY
A cinema company, Hoyts, is looking to expand through more franchises in Australia. Hoyts is currently holding around 18% of cinemas across the country. It is tied with its subsidiary Val Morgan, an advertising agency focused on the cinema business, in capturing 95% of the market. With the emergence of the Internet, that percentage faces the threat of declining market share. Also, the profitability of expansion would be in question, as people shift to a relatively easier and cheaper access to movies than buying tickets in the cinema.
In this regard, Hoyts seeks to recapture the market. Thus, it needs to understand its customers in relation to its product offering and experience. Also, it must understand the insight on why the market behaves towards the products offered. From here, the marketing mix, especially the price and place, would be determined to encourage positive response from the consumers.
Researchers have conducted a qualitative data gathering. The perception of university students in Sydney is examined. Based on the findings from in-depth interviews, these students prefer engaging yet reasonably priced forms of entertainment. Since the students only have weeknights and weekends as time off, they resort to watching on the television and computer. If ever they would visit the cinemas, the price range they are willing to spend is from $10 to $20.
With these findings, the study recommends targeting university students aged 18 to 25 who value convenience and affordability. In rebuilding Hoyts’ market share, it is recommended that they stimulate the experience through special occasions and events such as weekend viewings, premier nights, and special semester break events. These would be held in the highly accessible Centennial Park since it is adjacent to the universities. Ads would be put on the television, social networks, billboards, and bus shelters. The message must highlight the affordable pricing advantage of $9.95 and the unique and fun experience it will bring both family and friends.
Personal Learning from the Project
I learned how difficult a marketing research could be. It’s tedious. Gathering and interpreting the responses of the interviewees needs focus, understanding, and empathy. The theme, strategy, and execution of a campaign would be based on the data. Thus, it is important to clarify the numbers being presented and understand what they mean. Empathy is also important. We are handling human responses, which have various ranges of values, feelings, and motivations. What one wants may not be as welcomed by others. As market researchers in this project, we must immerse ourselves into the perspective of the consumers. That’s how we would know what they need and want.
Fortunately, this task has a team working behind it. The market research moves forward to the campaign strategy and implementation. Yet before the actual execution, the team has to come up with a plan. I learned that creating such plan would definitely test the cooperation among members. Each one was assigned to a specific delegation such as conducting interviews and other sources, analyzing and interpreting data, and creating strategy. The ones assigned in the strategy would need the data and sources along with the findings. The representatives from each delegation must communicate clearly with each other. Otherwise, something may be off or may not work well when the strategy is implemented. Nevertheless, this project enabled me tremendously improve. I came to know myself more and at the same time, it enabled me to reach out to others.
