BBMK601 Hoyts Group Marketing Strategy Assignment Sample

Subject Code : BBMK601
Subject Name : Service Marketing

Services Marketing

Introduction to Hoyts Group

Hoyts Group of companies encompassing Hoyts Cinemas and Val Morgan is headquartered in Sydney, Australia (Hanson 2019). It is regarded to as the country's second-largest movie exhibitor with 450 cinema screens. It came into existence in the year 2001 as an independent distributor.

Evaluation of Hoyts Group

Product

The product and service portfolio of an organization is a key part as it attracts the customers. Hoyts Group's key services involve broadcasting quality blockbuster movies and shows. It distributes the modern movies of the Australia cinemas. It is appreciably showing the content which people love and is in trend. Val Morgan specializes in the advertising and displays high-quality advertisements in the cinemas (Buchner 2017). The Hoyts Group sells its cinema screens and digital billboards. The seats in the cinemas vibrate in synchronisation with the actions on the screen; this service has been introduced in some of the cinemas in the country in the D-Box technology. It is located in more than 40 places in the country which makes it easier for the customers to get access to its services (Buchner 2017).

Price

Pricing is the mechanism that enables an organization in converting the sales into revenue. The Hoyt Group makes sure that sophisticated revenue management systems are employed to ensure that effective pricing is used to generate the profits. Hoyts Group trails cost-based pricing stratagem (Vujicic et al. 2019). A ticket type is a proxy for the organization in selling its products based on age. It involves child, students, adult and seniors. It launches the loyalty programs that are intended to gather the interest of the customers. The average price of the ticket falls between the range of $15.50 and $16.50. As a part of this program, customers have to pay $10 per year and get a free movie on joining and enjoy the latest notifications.

Place

The cinemas of Hoyts are spacious and incorporate large high-resolution screens of Xtremescreen brand which offers a superior experience to the customers. The cinemas are also equipped with the reclining chairs and dine-in menus that fall under the Hoyts Lux brand. The Val Morgan advertisements are displayed in the service stations, shopping centres, outdoor digital billboards and service stations. As a part of the expansion, it also collaborated and displayed its advertisements in Saudi Arabia. The Hoyts cinemas also provide its services in the events and functions as a part of a collaboration with the third parties. It also supports one-off screenings (Buchner 2017).

Promotions

Most of the screen advertising is done through the Val Morgan. It has allowed the firm to gain around 95 per cent access to the market share (Hanson 2019). It has strengthened its promotional activities by purchasing the Australian Multiplex Cinemas (Ferrés and Labayen 2018). It also releases promo codes and vouchers to further inflate its sales. It does promotions via online platform especially Val Morgan platforms.

Proposing Recommendations on Hoyts Group

Product

Quality and productivity are interrelated with each other. Hoyts Group can further enhance its product portfolio by making sure that the latest customer trends are considered. Netflix and other such applications have changed and revolutionized the perceptions of the customers about movies in Australia as the total numbers of subscribers have peaked up to 11.6 million. It witnesses growth in the country by at least 18 per cent each year (Dwyer et al. 2018). They usually prefer movies that are short and are not restricted to a few genres. Hoyts must lay prominence on its services and ensure that it incorporates a series or it can also collaborate with Netflix and come up with the short-dramas.

Price

Hoyts Australia must transition to the value-based pricing. This is so because it will be helpful for the firm in ensuring that the benefits are added with the service. This will allow the firm to compete with the competitors. Value-based pricing is a tactic that ensures that the supplementary services are added to the product as this is beneficial in making sure that the customers’ loyalty is inflated (Kienzler 2018). Also, it can further make sure that the customers prefer the Hoyts Group for the movie experience. This can involve the provision of popcorn at the theatres.

Place

As people are becoming busier in their daily lives and rarely have time to interact with friends or go for a movie. Considering this, Hoyts need to strengthen its home services. Flexibility in the place where the services are provided adds to the comfort of the customers. Also, it is beneficial in making sure that the customers enjoy the premium movie experience from their homes via subscriptions.

Promotions

The degree of personalization and customization is a great tactic that lures the customers and enhances the loyal customers' framework. Hoyts can make sure that the movies are recommended to the customers based on their last movie preferences. This will persuade the customers to prefer the services of Hoyts on its competitors such as Village Roadshow and Reading Entertainment.

Areas Where the Customer Expectations Exceed the Company's Performance

Gap model is a diagnostic tool that is beneficial in ensuring that the expectations of the customers are aligned with the quality standards (Fischer et al. 2016). This model will be utilized to check the areas where improvements are needed.

Quality gap	Proposed solutions
Service delivery gap	Educating the management regarding proper and steady delivery of information to the customers
From the reviews of customers, it is evident that the staff at the cinema is not cooperative with the customers and relevant information is not provided to them (Hoyts Australia 2020). This creates a negative impact on customers. Also, the process of renewing the membership is quite sluggish and the customers receive delayed response through the website.	This can be probably solved by the increased interaction between the customers and the management (Stelzer et al. 2016). Since there are a lot of hierarchical levels between the customer and the management and this results in the decrement of loyalty as well. The managers can make sure that the increased communication is facilitated with the frontline employees including the managers at the theatres. A customer feedback system can be implemented. Hoyts can make sure that a discussion forum is set in its website where the customers can share their queries in the queries section and complaints in the complaints section. For both the sections, separate panes can be set up so that a feeling of being heard and valued is cultivated within the customers.
Poor maintenance and infrastructure	Urgent update of the facility
From the reviews on Facebook and Tripadvisor, the cleaning and management of the cinema are not up to the mark in Sydney. Customers have reported that theatre has spilled popcorns and containers on the seat and is not cleaned after the completion of one movie session (Tripadvisor 2020). Customers have also reported improper cleaning of the restroom facility. The complaints are regarding the aid-dryers and poor paper and towel dispensers.	To deal with this situation, there is a need to reconsider and communicate the roles of the employees. This can be done by the training curriculums. A cross-functional service team must be built so that the management team can take actions whenever such issues are incurred (Stelzer et al. 2016). It is not just an issue with the service delivery but with the infrastructure as well. A team of surveillance team must be set-up by the firm so that such issues are tracked immediately and the necessary actions are taken at the time. A managerial committee can keep a check of the cleanliness of the theatres via CCTV cameras. This will be a cost-friendly and time-effective measure to keep a check of the smooth conductance of the operations.

Table 1: Gap model for areas requiring improvement

References for Services Marketing Strategy

Buchner, N. 2017. Christie and Hoyts deliver for definition. Inside Film: If, 177, 51.

Dwyer, T., Shim, Y., Lee, H. and Hutchinson, J., 2018. Comparing Digital Media Industries in South Korea and Australia: The Case of Netflix Take-Up. International Journal of Communication, 12, p.20.

Ferrés, A. M., and Labayen, M. F. 2018. Argentine Cinema in the Age of Digitization: Between Foreign Dominance and Discussion of Benefits. In Contemporary Latin American Cinema, pp. 171-194.

Fischer, R., Bohn, F., de Paula, M.D., Dislich, C., Groeneveld, J., Gutiérrez, A.G., Kazmierczak, M., Knapp, N., Lehmann, S., Paulick, S. and Pütz, S. 2016. Lessons learned from applying a forest gap model to understand the ecosystem and carbon dynamics of complex tropical forests. Ecological Modelling, 326, pp.124-133.

Hanson, S. 2019. The Multiplex in Australia. In Screening the World, pp. 217-231. London: Palgrave Macmillan, Cham.

Hoyts Australia. 2020. We are taking an intermission. https://www.facebook.com/hoytsaustralia/.

Kienzler, M. 2018. Value-based pricing and cognitive biases: An overview for business markets. Industrial Marketing Management, 68, pp.86-94.

Stelzer, A., Englert, F., Hörold, S. and Mayas, C. 2016. Improving service quality in public transportation systems using automated customer feedback. Transportation Research Part E: Logistics and Transportation Review, 89, pp.259-271.

Tripadvisor. 2020. Hoyts Cinema. https://www.tripadvisor.in/ShowUserReviews-g261607-.d9709594-r578063154-HOYTS_Cinema-Chatswood_Willoughby_Greater_Sydney_New_South_Wales.html.

Vujicic, M., Vujicic-Tomic, B., and Klaric, M. 2019. Meeting halfway--comparison between cost-based and demand-based pricing methods. UTMS Journal of Economics, 10,2.

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