(Luận văn thạc sĩ) lack of training at CGV cinemas

UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN NGOC MINH LACK OF TRAINING AT CGV CINEMAS MASTER OF BUSINESS ADMINISTRATION Ho Chi Minh City – Year 2019 UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN NGOC MINH LACK OF TRAINING AT CGV CINEMAS MASTER OF BUSINESS ADMINISTRATION SUPERVISOR: Dr Nguyen Phong Nguyen Ho Chi Minh City – Year 2019 Acknowledgment First and foremost, I have to thank my research supervisor, Dr Nguyen Phong Nguyen Without his assistance and dedicated involvement in every step throughout the process, this paper would have never been accomplished I would like to thank you very much for your support and understanding over thesis implementation period I would also like to thank the experts who were involved in the validation interview for this research project: Mr Park Hye Sung, Mr Pham Van Dien, Mr Vuong The Phong, Mr Thai Gia Vuong, who are managers of CJ CGV Viet Nam Co Ltd Without their passionate participation and input, the validation interview could not have been successfully conducted I would also like to acknowledge Dr Pham Phu Quoc, of the International School of Business at University of Economic Ho Chi Minh city as the second reader of this thesis, and I am gratefully indebted to him for his very valuable comments on the proposal of this thesis I also would like to express my sincere thanks to all the members of MBUS class of the International School of Business at the University of Economics Ho Chi Minh City for discussion and recommendations along the process that I have undertaken this thesis The comments from you helped me have more information as well as materials to complete this thesis Finally, I must express my very profound gratitude to my parents and to my wife for providing me with unfailing support and continuous encouragement throughout my years of study and through the process of researching and writing this thesis This accomplishment would not have been possible without them Thank you Nguyen Ngoc Minh Excutive summary As a member of the operation department, after analyzing the report of Voice Of Customer (VOC), I noticed the number of customers complaining about the service quality at CGV movie theaters is increasing, always keeping on 20% of total customer contact to CGV As a business in the entertainment service industry, this greatly affects the image and brand awareness of the company which might cause losing customers, the company cannot achieve revenue and profit targets The customer complains about the quality of service comes from many problems, but the most important problem is the professionalism and service attitude of employees because the company is lacking training programs resulting in employees losing mindset as well as lack of soft skills in customer service To solve this problem, a number of solutions will also be launched with the aim of creating training programs as well as supporting cinemas with plans to improve qualifications and skills for employees at a cost appropriate to the current financial situation of the company which saves the cost of training compared with the current Contents I Introduction 1.1 Company background 1.2 Market overview Problem identification II 2.1 Symptoms & evidence 2.2 Initial cause & effect map 11 2.2.1 Qualitative research 11 2.2.2 External qualitative research 13 2.2.3 Internal qualitative research 15 2.3 Updated Cause – Effect maps 18 2.4 Potential central problem – Final Cause – Effects map 19 Problem justification 22 III 3.1 Problem definition 22 3.2 Problem existence 22 3.3 Problem importance 24 Causes analysis 25 IV Alternative solutions & Implementation plan 28 V 5.1 Apply compulsory practical coaching for trainers at cinemas – Train the trainer solutions 28 5.2 Conducting training course with external experts or professional trainers 30 5.3 Establish Task Force Training Team 32 Supporting information 36 VI 6.1 Interview guide 36 6.1.1 External interview guide 36 6.1.2 Internal interview guide 38 6.2 Sumary of qualitative research 40 6.2.1 Summary of finding from external qualitative research 40 6.2.2 Summary of finding from internal qualitative research 52 6.3 Summary of quantitative research 61 6.4 Questionnaire s of quantitative research 64 6.5 External expert training 66 6.5.1 Customer service excellence training course 66 6.5.2 Proactive customer service training course 67 6.6 Detail comparison cost of TFT plan 67 6.6.1 Current cost of training for a new cinema 67 6.6.2 Task force team cost 68 6.6.3 New trainer of University training schedule 69 6.6.4 Task force team re-training schedule 70 Reference 72 I Introduction 1.1 Company background CJ CGV Viet Nam is one of the most successful investments in the overseas market of CJ Group Korea CJ Group is the ninth largest group (Chaebol) in Korea which has invested in 21 countries around the world CJ CGV is the third largest cinema in the world and Korea's biggest cinema with 50% market share and the second-largest operator of joint venture IMAX screen in China just behind Wanda Cinema CJ CGV also has received the Best Cinema Brand award in consecutive years in Korea CGV stands for “Culture, Great, Vital”, which is introduced Korea’s first cultureplex: an exciting venue with food, event programs, shopping experience and ultra-premium auditoriums CJ CGV Viet Nam is formed from Megastar which is established in Feb 2005 In August 2011, CJ Group acquired 80% stake in Envoy Media Partners, a British company, which is the founder of Megastar After the acquisition, they change the name to CGV from Jan 2014 CJ CGV Viet Nam is the largest film distributor and cinema operator in Vietnam and also one of the major media companies with its media sales business CJ CGV Viet Nam offers product and service with the vision “Beyond cinema” tailored specifically to Vietnamese customers There are many various screening halls such as general hall, Gold Class (premium movie), L’amour hall for watching films on beds, special 4DX hall with five-sense experience screening hall and an IMAX hall with ultra-large screen digital screening hall with a laser screening system In film distribution field, CJ CGV Viet Nam almost has been exclusive distribution of newest Hollywood blockbusters to serve customer’s demand Under the leadership of the head of CJ CGV Viet Nam - Mr Sim Boom Jeom, CGV has achieved successes, for instance, CGV Viet Nam ranks as the number one of cinema operator and film distributor with more than 60 cinemas across the country, 45% of box office sales and 65% of distribution In 2017, CJ Group decided to invest more $200 million to open 12-15 new cinemas/year until 2020 (cost $4 - $7 million/new cinema) In May 2018: thanks to the efforts in communication and marketing of “Avenger: The Infinity War” in Vietnam, CGV broke the record for the highest performance when it attracted million admissions, earning $10 million in ticket sales(1) In addition to business, CJ CGV Viet Nam is also very interested in developing the Vietnamese film market CGV activities are contributing to Vietnam’s cinema industry development through not only movies exhibition but also other outreach programs such as Movies for Everyone, Toto's Filmmaking Class, Vietnam Film Festival in Korea, and Yxine 1.2 Market overview According to CGV's internal performance report, CGV is the leader of the cinema market with more than 45% market share in movie exhibition and more than 65% market share in film distribution in Vietnam The average growth rate of cinema business in the big cities in recent years is very attractive, up to 20 - 25% per year If the national box office revenue in 2008 is 100 billion VND, then by 2017 reached about 3,500 billion VND, approximated 150 million USD(1) Currently, the cinema has become an important destination in the entertainment life of the Vietnamese According to a survey that CGV's marketing team made in 2017, 55% of Vietnamese come to the cinema once a month or more often This makes the Vietnamese film market as a "dream market" for investors, especially foreign investors Up until the beginning of December 2017, there was 630 cinema room in the whole country About 65% of the screening is owned by foreign companies, which are dominated by two Korean conglomerates, CJ CGV and Lotte Cinema CGV has more than 60 cinema complexes nationwide with more than 300 screens It is expected that in 2018, CGV will open six more cinemas Lotte Cinema, a "countryman" of CGV, is also a fast developer with 36 cinemas across Vietnam and continue increasing in 2018 Apart from the two Korean companies, Galaxy Cinema (Thien Ngan Co., Ltd) with 14 cineplexes and BHD Cinema (Binh Hanh Dan Co., Ltd - BHD) with a smaller scale of cinema complexes These companies are also having a revolution to change the quality of service to have a competitive advantage to involve in the race to expand market share According to unofficial sources, the Wanda Group, China's largest entertainment corporation which has the second-largest number of cinemas in the world, is also targeting the Vietnamese market If this source is really believable then the future cinema market will be even more attractive in the race of the big players It can be seen that the cinema market in Vietnam is growing quite fast as businesses continue to expand to compete However, besides market competition by opening more new sites or investing in facilities or keep upgrading cinema rooms with higher technology, the service quality is also really focused Compared with the service quality of the cinemas of ten years ago, it is possible to see customers are experiencing at a higher level of service as close to the quality of the major cinema markets such as America or Korea II Problem identification 2.1 Symptoms & evidence 3rd Quarter -2017 Channel Facebook Phone Email Total Percentage Last Quarter vs LQ Complaints 1539 3397 350 5,286 19% 3,820 38% Inquiries 6,537 14,615 1178 22,330 81% 19,663 14% 4th Quarter -2017 Channel Facebook Phone Email Total Percentage Last Quarter vs LQ Complaints 1897 3377 421 5,695 21% 5,286 8% Inquiries 6,569 13,876 1319 21,764 79% 22,330 -3% 1st Quarter-2018 Channel Facebook Phone Email Total Percentage Last Quarter vs LQ Complaints 2730 3328 563 6,621 19% 5,695 16% Inquiries 9,050 17,915 955 27,920 81% 21,764 28% 2nd Quarter-2018 Channel Facebook Phone Email Total Percentage Last Quarter vs LQ Complaints 3048 3847 998 7,786 22% 6,621 19% Inquiries 9,483 15,284 3253 31,596 78% 27,920 0% Figure 1: Voice of Customer in recent quarters by channels (Source: CGV VOC report) Voice of customer in year from July 2017 to June 2018 31,596 35,000 27,920 30,000 25,000 22,330 21,764 5,286 5,695 6,621 7,786 Total Total Total Total 3rd Quarter -2017 4th Quarter -2017 1st Quarter-2018 2nd Quarter-2018 20,000 15,000 10,000 5,000 Complaints Inquiries Figure –Voice of customer in year from July 2017 to June 2018 (Source: CGV VOC report) CGV Customer Service Center is the main channel where customers can contact to get support about information related to CGV and can reflect on the quality of service through many channels such as social network CGV Fan page, email or call center Through the analysis of data and the chart above, it can be seen that there was a increment of complaint in the total Voice Of Customer (VOC) from July 2017 to June 2018 with 20% average ratio Overall, the number of cases which customers complained about the service quality of CGV increased slightly from 5,286 cases in the third quarter 2017 to 5,695 in the fourth quarter same year with an increased rate of 8% By the first quarter of 2018, this is the time of Tet holidays, so there is a significant growth in total VOC that customer service center received when the total number of customers complain about the quality of service increased 16% from 5,695 cases to 6,621 cases and accounted for 19% of total VOCs Furthermore, the total number of complaints reached the peak in the over a year at 22% of total VOCs in the second quarter of 2018, with a 19% increment compared with the previous quarter As a result, the total number of customer complaints about service quality increased steadily in the continuous quarters, next quarter kept higher than the previous quarter, and maintaining an average of 20% of total VOC was a clear indication of decrement in CGV's services quality It affects to customer satisfaction and leads to customers could leave CGV brand, made the sales sharply decrease Customer service quality is defined as an assessment of how well a service is provided meet customer expectations (2) Business service operators often evaluate the customer service quality provided to their customers in order to improve their service, to exactly identify problems and to better achievement of repurchase loyalty which represents for customer’ satisfaction On the other hand, service quality is also noted as the comparison between expectations of customers about the service and performance of the company(3) The higher the performance represented, the higher expectations are fulfilled Especially for service enterprises such as CGV, the quality of service is the overall assessment of results from comparing the company's performance with the customer's expectations of how firms in that industry should perform(3) CGV is a big company in the movie exhibition industry, therefore, service quality is always the core factor as well as one of the competitive advantages that help CGV holding the market leader position However, the increase in the ratio of complaint about the quality of service at CGV is a sign that CGV gradually loses its competitive advantage It also leads to customers could leave CGV as well as the company loses its revenue by CGV is no longer trusted by customers Since service is intangible, enterprises faced with difficult to understand how customer evaluate their service quality Most of the evaluation of customer base on the experience the service Unlike tangible products, the consumers fewer cues to evaluate(4) Service quality problem are no longer the sole concern of service companies Many firms realized that their offering may be partly a tangle product and partly intangible service(5) Improving service quality at CGV is one of the very important mission because CGV is a company whose main product is the service that brings the cinema experience to customers In addition, there are many competitors in the market which can have many advantages over CGV in terms of price, location, brand identity, etc Therefore, service quality that satisfies customers is very important to encourage them to revisit and to earn their loyalty so CGV should seriously pay attention to this 10 ...UNIVERSITY OF ECONOMICS HO CHI MINH CITY International School of Business NGUYEN NGOC MINH LACK OF TRAINING AT CGV CINEMAS MASTER OF BUSINESS ADMINISTRATION SUPERVISOR:... as one of the competitive advantages that help CGV holding the market leader position However, the increase in the ratio of complaint about the quality of service at CGV is a sign that CGV gradually... the aim of creating training programs as well as supporting cinemas with plans to improve qualifications and skills for employees at a cost appropriate to the current financial situation of the