final exam report subject marketing service topic research on services of cgv cinema system

CGV will accomplish this goal by expanding its cinema network, upgradingexisting theaters to even higher international standards, including realistic images, diversefilm genres, industri

MINISTRY OF FINANCE UNIVERSITY OF FINANCE AND MARKETING

FINAL EXAM REPORT Subject: Marketing Service Topic: RESEARCH ON SERVICES OF CGV

CINEMA SYSTEM

Major : MARKETING Specialization : MARKETING MANAGEMENT Teacher: NINH DUC CUC NHAT

Students Class: CLC_19DMA02

DANG BAO TRAM - 1921005710

NGO HONG AN - 1921005337

TRAN THAO VY - 1921005798

LUONG TRAN NHAT TRANG - 1921005725

NGUYEN THI BICH HUYEN - 1921005080

NGUYEN THANH TUYEN – 1921005756

Ho Chi Minh City, 2021

CHAPTER 1: INTRODUCTION

1.1 Company and service introduction

CJ CGV is a unit under CJ Group - one of Korea's largest multi-sector economic groupspresent in 21 countries around the world

1.1.1 History of formation and development

CJ CGV is the largest multiplex cinema chain in Korea, established on December 20, 1996,

in Seoul, Korea In 1996, CGV was originally founded by South Korea's CJ Cheil Jedang,Hong Kong's Orange Sky Golden Harvest, and Australia's Village Roadshow After that,Golden Harvest and Village Roadshow withdrew from the group, so the company wasoperated by CJ, merged into CJ Golden Village, and changed its name to CJ CGV

Figure 1.1 Logo of CGV

Logo and Slogan: “Evolving Beyond Movies” – “Experience beyond cinema”

In 1998, CGV launched its first multiplex in Gangbyeon, and in December 2004, CGV wasthe first cinema chain to list on the Korean stock market CGV surpassed total sales of 100million viewers in 2004 The company released its first digital film in 2006, SMART PLEX

in 2008, 4D PLEX in 2009, and Cine City in 2011 Milestone 2006, CGV opened 8 cinemalocations in China, 1 in Los Angeles, and acquired MegaStar Cineplex - the largest cinemachain in Vietnam

At the end of 2005, CJ entered into a joint venture with Viet Gia Dinh Company (VIFA) withthe name CJ-VIFA to export Vietnamese films to foreign countries through local production.CJ-VIFA's first project is a 100-episode TV series, with a duration of 50 minutes/episodetitled "Smells of Coriander" This is the first step marking the development of CJ in theVietnamese film market

CJ CGV Vietnam also focuses on the audience in areas that do not have much access to thecinema, by creating opportunities for them to enjoy high-quality movies through programs.programs for the community such as "Smiling Moon" and "Cinema for everyone".

Reference source: www.cgv.vn

1.1.2 Market penetration in Vietnam

In July 2011, CJ CGV started buying the largest cinema system at that time, MegaStar for73.6 million USD, but it was not until January 15, 2014, that CGV officially took over andoperated the system This is the largest cinema system in Vietnam

After MegaStar was "changed owners", many viewers expressed concern about futurechanges of this foreign branded cinema system However, the leaders of the CJ CGV groupgave convincing opinions that: Rebranding is CGV's commitment to the mission of bringinghigh-quality cultural products and services international standards for Vietnamese audiences.CGV is an abbreviation of the words "Culture - Great - Vital" (Culture - Great - Essential forlife)

CGV opens up a unique concept of cinema with the idea of the cultural complex

"Cultureplex" - where audiences not only come to experience movies on a high-tech platformbut also can enjoy diverse cuisines, buy Buy products related to culture and entertainment,creating experiences that go beyond cinema following the motto that CGV has set out

In Vietnam, CGV's vision is to become the number 1 destination for movie and entertainment

activities; maintain its leading position, and provide products and services "beyond

cinema" CGV will accomplish this goal by expanding its cinema network, upgrading

existing theaters to even higher international standards, including realistic images, diversefilm genres, industrial development unique movie viewing technology, more culinary options,and more incentives for members

To affirm its brand and position in the Vietnamese market, CGV is committed to makingefforts to contribute to the development of the Vietnamese film industry by investing in theproduction of high-quality films, introducing culture and Vietnamese cinema to the world,and at the same time bring top entertainment experiences from the world to Vietnam

Reference source:

https://tintucvietnam.vn/cum-rap-cgv-cua-ai-va-co-gi-dac-biet-d192566.html

1.1.3 Cinema system and screening room in Vietnam

Since coming to the Vietnam market, CGV has constantly developed its services to bring thebest experiences to customers According to enterprise statistics, CGV currently owns 76cinema clusters across the country, accounting for 61% of Vietnam's cinema market share.CGV expects each year to invest in building 12-15 new cinema complexes, including 4-5cinemas in remote provinces CGV also estimates that in 2020, it will invest about 15 millionUSD in building 8 cinema systems in the Hanoi capital alone

But since the Covid 19 pandemic broke out globally, from the beginning of 2020 until now,many businesses in the film industry business have been unable to keep up and have beenseverely affected Cinema systems nationwide were forced to close to ensure safety rules indisease prevention This forces them to have timely plans so that the business does not go tothe brink of bankruptcy

1.2 Objectives of the study

The topic focuses on analyzing in detail the services of the CGV cinema system to see thesuccess of a leading corporation in the film industry in the Vietnamese market Analyze thegrowth as well as the process by which CGV builds its brand with Vietnamese audiences.Thereby, it is possible to comprehensively evaluate the services of enterprises in theVietnamese market At the same time, consider the aspects that businesses have notperformed well to make timely assessments and suggestions to help the whole systemdevelop more and more in the future

1.3 Market overview

1.3.1 Industry and market overview

Name of the industry: The entertainment industry

Services: Cinema business

In recent years, the film market in Vietnam is becoming a potential market in the eyes of bothforeign and domestic investors There have been many famous brands with strong economicpotential that are "interested" in the market in Vietnam, CGV and Lotte are two brands fromKorea that have proved this Up to now, the CGV theater chain of CJ Group is leading with atotal of 76 cinemas nationwide and 21 cinemas in particular in Ho Chi Minh City Closely

followed is the Lotte cinema chain with 42 cinemas across the country and 8 cinemas in HoChi Minh City, besides two domestic brands, Galaxy and BHD, which also hold a rathermodest market share compared to the two "big guys" same sector It is expected that by 2030,Vietnam will have 1,050 cinemas across the country serving 210 million visitors per year.These are ideal numbers to show the potential of this market in Vietnam.

But now, the Covid-19 pandemic has brought heavy consequences to the film market Due tothe epidemic situation, a series of cinemas have had to close to ensure safety against theepidemic As a result, film projects have stalled, leading to a significant drop in box officerevenue Film producers began to look to a new platform, a streaming platform, and see it as

a "quack medicine" to avoid losses

1.3.2 Market growth rate

According to a survey and from CJ CGV Vietnam, Vietnamese cinema has many advantages,

in which, audience structure, movie viewing age and investment speed for film quality, andthe growth of the system Cinemas across the country are the key to sustaining growth.Compared to other countries in the region and the world, the age of Vietnamese audiencesgoing to cinemas is much younger (about 80% of viewers are under 29 years old) With thesenumbers, analysts believe that in the future, the Vietnamese film market will have a lot ofpotential for development

However, when the Covid-19 pandemic hit, most recently, many surveys said: After globalcinema revenue increased 3.6% in 2019 to $45.1 billion, the Covid pandemic -19 this yearwill cause the global market to plummet not only in Vietnam, research and accounting firmPricewaterhouseCoopers said in its annual forecast, predicting a 65.6% decline to 15.5 billionUSD “Many theaters were forced to close and major Hollywood movies were delayed.”The company warned that "the entire movie theater ecosystem will be significantlyimpacted", with cinema revenue, including box office and cinema advertising (but excludingin-cinema franchise revenue) screening and film business), is set to contract globally at a

compound annual rate of 2.4% in 2019 through 2024 for $39.9 billion

1.3.3 Market trend

The current Covid-19 epidemic has caused lots of disadvantages to the film market andcinemas, customers - movie enthusiasts cannot go to cinemas for many months because offear of being infected virus In addition, the regulations are issued and implemented very

strictly, so cinemas cannot open their doors, so filmmakers have "moved home" to streamingplatforms on the Internet to meet the needs of movie enthusiasts This also began to attract alarge number of consumers, who also began to turn to online movie service applicationsduring this prolonged epidemic period.

This is also a great risk and challenge for the movie theater service system, recently in Koreathere is a new trend to "save" the movie theater system, which is called "Cinema non-contactfilm” Accordingly, this contactless cinema system has set up automatic ticket vendingmachines and self-service kiosks so that customers can buy popcorn and drinks on demand.Customers only have to scan a QR code or barcode on a smartphone instead of giving theticket to the conductor

Especially, the contactless cinema is part of CGV's digital transformation project of CJGroup, which aims to help customers save time waiting for tickets and food and ensuresafety while satisfying the needs of customers during the current Covid-19 pandemic

1.3.4 Market demand

The Covid-19 epidemic has broken out since the beginning of 2020 and so far, the filmmarket in the world as well as in Vietnam has not been able to recover to its normal state.Even suffering huge losses when the pandemic persists in the country, Vietnam still expressed

an optimistic belief that if the epidemic is controlled well, the movie theater market willrecover and thrive in the future For example, after the epidemic subsided in the last March,several films that hit theaters had huge sales such as The Godfather (VND 395 billion), Kong

vs Godzilla (VND 135 billion), Flip 48H (163 USD) billion, according to Box OfficeVietnam)

The commercial success of these films shows that the audience still has a high demand forentertainment and social needs after a long time of these activities being frozen With movieswith good quality content, the purchasing power of viewers is still extremely abundant,enough to fill cinemas non-stop The cinema industry therefore also promises a brighter andmore prosperous future to gradually recover and develop strongly

Figure1.2 : The sales records of the movie The Godfather in Vietnam released 1 month after

Vietnamese firms like Galaxy Cinema and BHD are also trying to expand their business.BHD aims to have at least 20 cinemas by 2021 Besides large cinemas, With strong financialpotential, CGV and Lotte have quickly expanded the market in Vietnam First was Lotte, thenCGV stepped into this potential market with a market share of 30% and 43%, respectively

It can be said that up to this point, the CGV cinema system is leading the market with a fairlyhigh market share, so the challenge of competing with other brands is also very high,especially now that there are many Many domestic companies have begun to focus oninvesting in this market Typically, Beta Cineplex (Beta Vietnam Media Joint StockCompany), was established and operated with the mission of bringing modern cultural values and quality, always listening, researching to understand and satisfying customers' needs,being creative in each product, dedicated to providing top quality service Although thiscinema system is new and has not developed many cinema clusters, specifically, there areonly more than 10 cinema clusters across the country, but the awareness of this cinema

system is quite remarkable because the system of these cinemas is active Active with manypromotions for customers and the décor for each theater is very eye-catching and attractive.

Figure 1.3 Beta Cineplex Cinema Decor

Besides, the Beta Cinemas theater system is also considered as one of CGV's competitors.Beta Cinemas has always been one of the cinema chains with the fastest recovery when theepidemic ends The executive board of this cinema chain believes that: Cinema is an essentialentertainment need, meeting the experience and social communication needs of people Afterthe pandemic, the entertainment demand of the audience will gradually increase again andeven more due to the pressure and stress during the isolation period People's consumptiontrends will also be more careful, somewhat tightening their spending and looking for moreaffordable models Because of that, Beta Cinemas was put into operation with a cinemamodel with moderate investment, reasonable ticket prices, along with policies to optimizehuman resources, optimize costs, and target customer groups students and middle-incomepeople

Figure 1.4 Decor of Beta Cinemas Quang Trung

tri-han-quoc-sau-dai-dich-covid19-20200429172954607.htm

https://baotintuc.vn/the-gioi/rap-chieu-phim-khong-tiep-xuc-xu-huong-moi-cua-nganh-giai-http://baochinhphu.vn/Van-hoa/Dien-anh-Viet-van-la-manh-dat-day-trien-vong/409446.vgphttps://www.dealtoday.vn/ha-noi/pos/he-thong-rap-lotte-cinema-22365

of the product that set them apart from other competing products in the market Positioning isthe effort to create awareness, difference in the customer's mind about the product/service.

Criteria Consumer market segments

Geography Area, region, urban, rural, plain, mountainous, domestic,

international Population

population

Age / generation, gender, income, occupation, educational attainment, religion, nationality, race, marital status, family size, family

Personal

characteristics

Personal characteristics Class/class in society, personality, lifestyle, concept, etc

Behavior Buying occasions/opportunities, benefits sought, buyer

readiness, usage, loyalty…

Table 2.1 Requirements for effective segmentation

Figure2.1 : Description of the level of demand in the market segment

2.1.1.2 Applying the theory to the market segment of CGV

Based on theory, CGV has selected 3 criteria in analyzing the consumer market: Geography,Demographics (age, gender, occupation, income), Psychology

a) Demography

 Gender: Male/Female

 Age:

o 16 - 22 years old: This is a new age, the need to have fun with friends is alsoquite high Therefore, the activities of eating and watching movies are alsopaid more attention But most, at this age, do not have high financial capacity,still dependent on their parents So the ability to pay the ticket price is alsomoderate

o 23 - 29 years old: At this age, they already have a stable job, and have a stablemonthly income, no longer depending too much on the family The need forentertainment and stress relief at work also increases This age group oftenprioritizes choosing movie studios with good quality, less interested in ticketprices and services that must be suitable for themselves

o From 30 years old and above: The job is gradually stabilized, has a certainposition in society, and most of them are married The need for entertainment

is still there, but they often invest their money in family rather thanentertainment There is interest but the level is not high

a Geography: In 2018, 66 cinemas were put into operation in 23 provinces and cities

across the country (Hanoi, Ho Chi Minh City, Hai Phong, Tay Ninh, Quang Ngai ).And by 2021, CGV has invested in building 11 more cinemas, of which 7 are located

in remote provinces and cities, so the total number is 77 cinemas Although livingstandards and incomes are different, everyone has the need for entertainment and fun.Understanding that, CGV has made efforts to expand its operation area nationwide

b Mentality:

Motivation to use the service: Customers who come to cinemas in general and come to CGVmostly for the purpose of entertainment and relaxation should require a service that integratesmany other services to satisfy their needs their desire for comfort and entertainment.

Personality: The tendency to want to satisfy the entertainment needs after studying andworking, requires attentive service, integrates many different services to be able to use theservice comprehensively, in accordance with the demand

2.1.2 Target market selection

2.1.2.1 Theory

a Definition: Target market: is the market that the business identifies and focuses all

efforts to meet

Select target market: evaluate and select one or more appropriate market segments

b Principle: select and focus

 Need detailed information about segments

 Analyze and evaluate market segments

c How to choose “Target Market”

 Evaluate the attractiveness of each market segment

 Select the number of market segments as the target market

2.1.2.2 Applying theory to CGV's target market selection:

Based on 3 criteria in analyzing the consumer market outlined above: Geography,Demographics, Psychology CGV has selected its main target market based on the criterion D

N Arithmetic

CGV targets many different types of customers, for CGV, the target customers are extremelylarge, however, the age factor is mainly targeted by CGV as well as a lot of interest and use ofCGV's services Therefore, in recent times, CGV has always focused on catching trends aswell as creating trends in the media, especially on social networking sites

CGV actively works on Fanpage Facebook, Instagram, Youtube with movie showtimes aswell as information about upcoming attractive movies that are updated regularly Trailers ofupcoming movies are uploaded quickly with the number of viewers and shares reaching

thousands and millions Especially, minigame programs revolve around hot movies,humorous images to increase interaction and curiosity for customers aged 16-22 years old.

In addition, in order to target its large customers who are students - students, couples, CGValso has special offers for this customer

In addition, for the price-sensitive customer market such as students, CGV students apply thesame price strategy of 45,000 VND from Monday to Friday The elderly and children alsoreceive discounts There are also other discount programs for audiences over 22 years old(such as Culture Day, Happy Wednesday) aimed at always stimulating customers to watchmovies

2.1.3 Locate

2.1.3.1 Theory

After deciding which market to enter, the company needs to differentiate its product fromcompetitors' products of the same type, positioning itself in the minds of consumers To besuccessful, businesses always need to have a different and unique way of offering andintroducing products and in Marketing called "product positioning" Positioning productbrands in the market helps businesses determine the right direction for themselves Inaddition, it also helps businesses focus resources, determine the right tactics in today'sMarketing Mix, create advantages and increase competitiveness in the market

• Basic steps to build a market positioning strategy

 Step 1: Research the target market

 Step 2: Make a positioning chart

Positioning chart is a coordinate system describing the values of different attributes thatresearchers can rely on to build the concept of the desired product/business image in mind ofcustomers (attributes that businesses want to use as core values to differentiateproducts/brands) From here, determine the position for the product/business

Figure2.2: Illustration of the positioning chart

 Step 3: Develop market positioning plans

Describe the available positioning options and choose a location for the product/brand on thepositioning map Strategies can be chosen: next to the existing competitive product position

or the position strategy where there is no competitor Some common positioning methods areapplied:

• Product positioning based on product attributes

• Positioning products based on the value (benefits) of the product to customers

• Positioning products based on target customers

2.1.3.2 Applying the theory to the positioning of CGV

=> Product positioning based on the value of the product to customers

CGV positions itself as a provider of high-quality movie screening services at a suitableprice for a wide range of customers of all ages and classes

CGV distributes selectively Up to now, CGV has 77 cinemas across the country, butthey are only located in central locations where the potential customers that CGV wants

to target Most of the locations with CGV are in large shopping centers, with a largenumber of customers With such a customer base, CGV can promote its brand andeasily carry out other campaigns, targeting customers in the lower segment

CGV's positioning is high quality with reasonable price, so for each cinema, the ticketprice is also different

Ticket price for CGV Su Van Hanh Theater in HCMC

Figure 2.3 Ticket price of CGV Cinema Nguyen Chi Thanh in Ho Chi Minh City

With the goal of providing the best possible service to customers The quality of the

film is not only in the content of the film but also in the external factors, especially the sound, the screen, etc Realizing these important factors, CGV has invested in the

infrastructure and implement strategies to help diversify choices for customers

CGV currently has 8 different types of screening rooms with special formats, providing the best and most suitable choices for all customers

The quality of these screening rooms fully meets the different needs of customers depending

on the type of film Compared to watching movies at home, these types of screening rooms fully meet other needs besides watching movies such as: wide screen, vivid sound, 3D effects,

For customer care services, CGV provides pre-show services such as waiting seats, food counters, etc and during screenings such as on-site service, these factors make customers always want to come to CGV return

In addition, CGV has links with many domestic and foreign film production studios, so that CGV customers often get to see movies first Screenings are widely distributed by time and theater, customers have many choices for their movie screenings Popular movies will be prioritized for many screenings and vice versa, serving the majority of customers with their movie viewing needs.

2.2 Marketing Mix Strategy

2.2.1 Product strategy

2.2.1.1 Theory

A service product comprises all elements of service performance, both tangible and

intangible, that create value for customers Service products consist of:

- Core Product -> central component that supplies the principal, problem-solving

benefits customers seek

- Supplementary Services -> augments the core product, facilitating its use and

enhancing its value and appeal

A Hierarchy of New Service Categories:

 Major Service Innovations: New core products for previously undefined markets

 Major Process Innovations: Using new processes to deliver existing products with added benefits

 Product Line Extensions: Addition to current product lines

 Process-line Extensions: Alternative delivery procedures

 Supplementary Service Innovations: Additions of new or improved facilitating or enhancing elements

 Service Improvements: Modest changes in the performance of current products

 Style Changes: Visible changes in service design or scripts

Based on the above theory, in the product section, CGV provides customers with the

following services

2.2.1.2 Core Products

a) Space inside and outside the theater

Designed in a luxurious, classic style, with a

variety of shooting angles for customers

Regularly display frames according to each film,

or model according to festive occasions (Valentine,

Lunar New Year, )

- Design suitable for young people's preferences

- CGV's toilet is decorated with many mirrors,

yellow light but bright enough not to distort the

photo color, clean and fragrant toilet

- There are tables and chairs for customers to sit

and drink, waiting for the movie time

- The space in the theater is always turned off andthere is only the light of the projection screen andsmall lights on each step

- The theater floor is always lined with softcarpets

- The theater is always in a clean state, withoutcorn chips and garbage when it comes to the newscreening

- CGV has applied a high-quality strategy toCGV's space service

Table2.2 : Products and services inside and outside the theater of CGV

b) Movie content

Movie content is diverse in Genre; National production; Voiceover, voiceover, subtitles

CGV has built a diversified strategy in the product set size

c) Sound technology and type of film projection

- Audio technology: Theater sound is played from the Atmos sound system Dolby Atmos

uses an advanced layering design to create audio tracks The background layer consists ofbands of static ambient sound mixed in the familiar threaded audio method The layers on theceiling consist of dynamic sound elements that are precisely oriented and changed according

to the image displayed on the screen in the theater By installing speakers overhead andaround, Dolby Atmos can make the audience experience the true and natural sounds of themovie

With this sound system, customers can feel the space from many different dimensions: Top front - back - bottom - right - left Customers can feel the detailed, realistic sound and noise

-in each scene

But this sound system is only being set up at 2 special theaters out of a total of 55 theatersnationwide

Figure 2.4: CGV’s Dolby Atmos sound system

Figure 2.5: Cinema technology room Screen X

Source: www.cgv.com

 IMAX

IMAX is the most powerful movie projection technology in the world today A movieformatted in IMAX will be better than a regular movie because of its large resolution

Normally, current plastic films are shot with 35mm film format and images with 6Kresolution (horizontal) Meanwhile, IMAX technology uses film formats up to 70-mm, whichcan produce images with 18K resolution This movie projection technology is being applied

at CGV SC Vivo City, CGV Vincom center Landmark 81, and CGV Vincom centerMetropolis Lieu Giai

Figure 2.6: Cinema technology room IMAX

Source: www.cgv.com

 STADIUM

On July 1, 2016, CGV Vietnam opened a new cinema complex at Aeon Mall Binh Tan(HCM) and this is also the first cinema in Vietnam to have a Stadium Laser cinema room.Stadium Laser is a cinema standard created by CGV as a product to compete with IMAXtheaters and applied exclusively to its cinemas around the world They now have a total of 8

of these screens worldwide CGV AEON Binh Tan is a cluster of cinemas applying thismovie projection technology

Figure 2.7: Cinema technology room STADIUM

Source: www.cgv.com

Figure 2.8: Cinema technology room 4DX

Figure 2.11: Cinema technology room L'AMOUR

Source: www.cgv.com

Thereby showing that CGV has been making continuous efforts to innovate and applyproduct strategy theory to improve the services provided to customers Specifically, thetheory of Major Service Innovations, Product Line Extensions and Style Changes (AHierarchy of New Service Categories) has been applied by CGV in its movie projectiontypes In addition to the traditional cinemas and the 7 types mentioned above, there are alsocountless types of cinema with different advanced technology.

Figure 2.12: All current cinema technology of CGV

Source: www.cgv.com

2.2.1.3 Supplementary Services

a) Ticketing service

Tickets of CGV can be purchased in 2 forms: Direct purchase and Internet booking

 For direct purchase, customers can directly see the seats, as well as receive advice anddetailed instructions on the entry time and how to give tickets to the ticket control staff.But, this form will also easily cause customers to miss their tickets because they do notcome in time to buy And then, customers will have to wait a long time for the next one

 For the way to buy tickets via the Internet, customers will be able to control their ticketissuance, and buy it in advance But it will be difficult if customers do not know, or arenot familiar with how to book tickets online Customers when paying online will be able

to use many forms, such as e-wallets, internet banking, visa cards, redeeming rewardpoints, etc In addition, on the CGV application, CGV also shows news about movies,cinemas, and deals

 In the ticketing service, CGV has applied a diversified strategy in product size

b) Parking service

 Customers who come to see CGV will park their cars in the basements of commercialcenters, with security guards keeping and controlling vehicle cards, and monitoringcameras Because the car is kept in the garage of the commercial center, the parking spacealways ensures cleanliness, security, and order

 In car parking, CGV has chosen a strategy of high service quality And the quality isexpressed through the characteristics: clean, safe, process, divided parking area, enoughlight, many basements,

c) Foodservice

CGV has applied the theory of Supplementary Service Innovations: Additions of new orimproved or enhanced elements ( A Hierarchy of New Service Categories ) Therefore, CJCGV tries to build Cultureplex cultural and entertainment complexes by adding entertainmentand relaxation areas such as food stalls, cafes, selling cultural snacks such as books,newspapers, etc DVD, and also organizes events related to music and movies

 CGV is the only cinema in Vietnam that has a restaurant in the cinema area Here, therestaurant provides customers with many choices of food and drink, not just corn andcarbonated water like other normal cinemas

 Customers are only allowed to bring food sold by CGV into the theater CGV alwaysimproves and updates more dishes and drinks to suit the many tastes of customers Corndishes are offered by CGV in a variety of flavors from sweet to savory, such as sweetcorn, salty corn, cheese corn, caramel corn

 Fast foods will be plentiful such as Hot dogs, dumplings, mixed baguettes, grilled chickensandwiches, to serve the needs of many customers Catering service at CGV is mainlyfast food and snacks to meet the "snack" needs, not to eat full of customers

 With beverage products, there are also many choices for viewers from carbonated water

to juice In addition, CGV also actively follows the trend of milk tea drinks, but this drinkonly has one type, black tea with 3 different toppings Perhaps due to the consumptionhabits of customers who often drink soft drinks when watching movies, CGV does notoffer the same variety of milk teas as regular milk tea shops

Figure 2.13: Food and drink menu at CGV

Source: www.cgv.com

 In addition to the normal combos just mentioned above, customers will have morechoices with special, collectible combos, designed according to each blockbuster.Although these combos are sold at a much higher price, they make up for it to attractcustomers by hitting on the psychology of customers who want to own souvenirs related

to their favorite movies At the same time, it creates a highlight for CGV that no othertheater cluster can do

Figure 2.14: Combo The Dragon CGV with memorabilia on the lid

Source: www.cgv.com

d) Membership card

 CGV has a way to accumulate points and become a member of CGV Customers canexchange accumulated points to deduct the service fee Our customers can alsoaccumulate to upgrade their membership value at CGV

 The program includes 4 members U22, CGV Member, CGV VIP, and CGV VVIP, withdifferent benefits and incentives Every time you make a transaction at the CGV cinemasystem, you will receive several bonus points corresponding to your membership level:

Table 2.3: Table of regulations on bonus points of CGV membership levels

Source: www.cgv.com

Reward Points U22 |

Member

VD: 100.000 VND 5 Points 7 Points 10 Points

VD: 100.000 VND 3 Points 3 Points 5 Points

Figure 2.15: All types of membership cards at CGV

Source: www.cgv.com

e) Incentives

 Using CGV service, customers will always have a variety of preferential policies duringuse, such as the Rewards program, birthday gifts, first show, preferential ticket prices forstudents members, U22 fare, Culture Day fare…

 In addition, CGV also offers special incentives and gifts for customer groups, especiallyVIP and VVIP, such as giving Movie Pass in exchange for tickets to see specialscreening rooms with combos or early screenings, showtimes specials and watchweekends

 For important customers, partners and artists, famous stars, reporters, and journalists,CGV also gives them their own Royal Vip Exclusive, Star, Press cards to thank them fortheir contributions to the development of the company company

 In particular, CGV also issues vouchers for groups of customers when using services thatCGV associates with brands such as ticket vouchers or gives honor vouchers tocustomers who encounter unexpected problems

Figure 2.16: CGV Last Monday fare promotion

Source: www.cgv.com

f)New additional services during the Covid-19

CGV has applied the theory of Product Line Extensions: Addition to current product lines ( AHierarchy of New Service Categories ) to expand new services in the context of covid-19.Examples are the following activities:

Figure 2.17 Tarot the serise of CGV

Source: www.cgv.com

 CREATIVITY CARD WITH DO-IT-YOURSELF SERIES (ASMR)

 CGV has put into operation a series of new DIY series (Do-It-Yourself), officiallybroadcasting the YouTube channel CGV Cinemas Vietnam every Sunday night

 A special feature of this series is the application of ASMR sound generation technology,which promises to inspire and stimulate everyone's creativity and is easy to manipulatewith detailed instructions in the video

Figure 2.18: Poster Do it yourself of CGV

Source: www.cgv.com

 "EAT ALL" SAI GON WITH SERISE MIDNIGHT HUNGRY

 New series Midnight Hungry officially kicks off on YouTube channel CGV CinemasVietnam, scheduled to air every Tuesday night

 CGV hopes not only to introduce new nightlife places to foodies but also to promote tointernational friends the typical late-night dining culture of Vietnamese people

Figure 2.19 Poster Midnight Hungry of CGV

Source: www.cgv.com

2.2.1.4 New product strategy at CGV Korea during the Covid season:

CGV applied the theory of key process improvement: Using new processes to deliver existingproducts with added benefits ( A Hierarchy of New Service Categories ) Therefore, CGV haslaunched a particularly interesting entertainment service, which is a contactless cinema - one

of a chain of complex cinemas operated by Korean entertainment giant CJ And helped CGVsuccessfully attract customers while the epidemic was still lingering

According to Yonhap News, the COVID-19 pandemic has prevented movie enthusiasts fromgoing to cinemas for months due to fear of contracting the SARS-CoV-2 virus Therefore,cinema operator CGV came up with the idea of deploying a movie viewing service withoutany direct interaction

At ticket and fast-food counters, there are no more cashiers and crowded waiting customers.Instead, the contactless cinema has set up vending machines and self-service kiosks socustomers can buy popcorn and drinks on demand Visitors to the theater can also choose tobuy their sausages at a vending machine next door 12 boxes are equipped in front of the

popcorn counter, the sales staff only need to prepare the food after receiving the order fromthe kiosk and put them in these boxes.

Figure 2.20 A pick-up box at a contactless movie theater in Yeouido, west of Seoul.

Source Yonhap News

A small scanner will be placed at the entrance of each cinema Therefore, customers onlyhave to scan QR codes or barcodes on smartphones instead of giving tickets to the conductor.Customers can also do all the processes on their phones, such as ordering a box of popcorn, adrink, etc

The contactless cinema is also equipped with two self-driving robots, called "Check-bots",about 1.5 meters tall, set up to go around the corridors to provide information to customersabout showtimes movies every day or show them the way to the toilet

Figure 2.21: Self-driving robot at CGV cinema in Yeouido, western Seoul.

Source: Yonhap News

2.2.2 Pricing strategy

2.2.2.1 Theory

a) Pricing based on cost factor

This is a fairly simple yet effective pricing method to be able to make a profit on eachproduct or service But it can bring some risks for the business because deciding the pricebased on the cost means that the business does not care so much about what customers think,making them no longer want to experience that service lead to loss of profit for theorganization

b) Pricing based on competitors

First, price competition increases due to Increased competition, increased substitutionincentives, wider distribution of competitors, and increased surplus capacity in the industry.However, in these cases, price competition can be reduced: High non-price-related costswhen using alternatives, important personal relationships, high switching costs, specificitytime and location effects reduce choice, and managers should examine all associated financialand non-monetary costs

c) Pricing based on the value brought to customers:

Take customers as a guideline for deciding prices for services The question must beanswered: how much are your customers willing to pay to experience the service,

Strategies to improve the value of services to customers, businesses need to improve the totalvalue - benefits: Add benefits to core products, enhance additional services and manageawareness of customers benefits are provided In addition, businesses need to reduce costsincurred: reduce the cost of acquiring and using currency, cutting down the time needed toevaluate, purchase, use the service and reduce the effort involved in purchasing and using

d) Value-Based Pricing: Strategies for Enhancing Net Value:

 Enhance gross value – benefits delivered

- Add benefits to core product

- Enhance supplementary service