SALE PLANNING OF CGV

Kế hoạch bán hàng trong 6 tháng của CGV. Được nghiên cứu bằng tiếng anh phục vụ cho môn học Quản trị bán hàng. Kế hoạch 6 tháng bao gồm plan cụ thể về kế hoạch bán và phát triển của nền điện ảnh việt nam cũng như thế giới trong đại dịch Covid 19 bùng nổ

HANOI UNIVERSITY SALE PLANNING PROJECT CJ CGV Ha Noi For the first months in 2021 Group member: Tran Ngoc Ha Do Kim Chi Vu Thi Ngoc Anh Hoang Tuan Long Dang Ngoc Thu Trang Vo Nguyen Anh Class: QT Marketinng 60B Table of Contents I HISTORICAL PERFORMANCE .3 Industry (Movie Theater Business) .3 Company (CJ CGV) II KEY ASSUMPTIONS (6 months in 2021 - Hanoi) Market size .6 Market dynamics Spend .8 Organization changes: Government regulation (due to COVID-19): .9 Competitor activity 10 Demographic factors 11 III OBJECTIVE - GOALS .11 IV SALE STRATEGY .12 Account Targeting .12 Relationship 12 Sale Channel 13 Selling 14 V SALE FORECASTING 15 VI REVENUES AND COST BUDGET 16 VII TACTICS 19 VIII Saleforce Management 20 Planning for Recruitment & Selection .20 Recruitment: Locating Prospective Candidate 22 Selection: Evaluation & Hiring 23 Training: .24 Motivation & Reward .26 REFERENCE .27 I HISTORICAL PERFORMANCE Industry (Movie Theater Business) ● 2019: ● 2020: Covid-19 pandemic leaves Vietnamese cinema reeling: - 10% of Vietnamese cinema has closed - Every movie running in cinemas has fared much worse with revenues of less than 10 billion VND each - Many cinemas have hunkered down by offering more promotions and showing old blockbusters to get moviegoers back - Covid-19 fears have prevented movie fans (about 70% Vietnamese), especially families with children, from going to cinemas where crowds and closed spaces could spread the novel coronavirus Company (CJ CGV) 2.1 Market Trend (based on Market Research in 2019 & 2020) ● Sale volume - Sale value 2019: CJ CGV Company said that in 2019, the CGV movie theater chain earned about 3,660 billion VND in the Vietnamese market, an increase of more than 35% compared to 2018 The monthly revenue of CGV cinema system is 305 billion VND and the average daily revenue is over 10 billion VND 2020: The outbreak of COVID-19 in 2020 caused a serious decline in CGV's revenue According to CGV's statistics, in March 2019, the nationwide cinema chain attracted million visitors, with a turnover of 350 billion VND However by March 2020, CGV has only million visitors, equivalent to a revenue of about 76 billion VND, times lower compared to this time last year Only in March 2020, CGV lost about 500 billion VND ● Distribution achievements 2019: By the end of 2019, CGV Vietnam owns 82 movie theaters with 475 screens 2020: CGV currently has 80 operating theaters in 2020 (based on moveek.com) The most recent opening was in Vincom Mega Mall Ocean Park in mid-December 2020 2.2.Price movement ● Price trend The average movie ticket price at CGV is about 60,000 to 150,000 VND, not including food and beverages After a sudden price increase in 2018 (a 6% increase compared to previous years), movie ticket prices at CGV remained the same in 2019 and 2020 (Although there is a price difference in different theaters, this difference is not significant) ● Competitor prices Movie ticket prices at CGV are highest compared to other theaters in Vietnam (Average of about 80,000 - 100,000 VND for a 2D movie, 100,000 - 150,000 VND for a 3D movie) Meanwhile, other theaters such as Galaxy Cinema, BHD Star Cineplex, have relatively low prices, about 60,000 - 85,000 VND for a 2D movie, 80,000 - 120,000 VND for a 3D movie Example in HCM City: 2.3.Distributor performance According to Business Korea, the financial structure of CJ CGV has weakened significantly due to the impact of the Covid-19 pandemic The company's debt to equity ratio soared by nearly 200 percentage points in three months, to 845% in the first quarter of 2020, causing total equity to decline by 22% over the same period At the same time, CJ CGV's revenue decreased by 50% year-on-year, the loss increased from 85.7 billion won to 118.6 billion won President of CJ Vietnam announced that 15 member companies in Vietnam were all significantly affected, of which, the CGV movie theater chain was most affected II KEY ASSUMPTIONS (6 months in 2021 - Hanoi) The figures below are estimated based on secondary data published online in 2019 and 2020 Market size ● Volumes (demand & product availability) By 2020, the estimated population in Hanoi will reach 10.5 million people, of which 67% (about 7.035 million people) is the group of working age, which is also the potential customer group of the market (based on Population Projection for Vietnam 2009-2049, HaNoi Portal) According to the customer behavior report mentioned in part 1, about 55% of Vietnamese go to the cinema once a month or more It is estimated that this data will increase to 70% between 2020 and 2021 From there we can assume the number of target customers to be around 7.035M x 70% = 4.93M Despite facing many difficulties in 2020 due to the outbreak of COVID-19, with 43% market share, CGV's market penetration in 2021 is quite likely to reach 40% If only the movie-watching service is included, the company's sales volume can reach approx 4.93M x 40% = 1.972M (ppl) per month ● Value (prices & product mix) Assuming 2,465 million guests, on average, each guest pays VND 200,000 for movie-watching services, including food and beverages, the expected sale value CGV can achieve is around 1.972M x 200 = 394.4M (VND) per month Especially in the first months of 2021 with many important holidays in January, February and March, this is considered a high expectation number to bring positive changes in business ● Distribution outlets: 23 outlets are now available in Ha Noi The CGV cinema sections are often located in large commercial centers, occupying prime locations with convenient traffic In the first months of 2021, CGV plans to expand one more location in Le Parc by Gamuda, which was the commercial center designed with a lush green landscape just steps from Yen So Park ● Users/ Consumers - For pre-show: Assuming that outlet of CGV shows an average of films a day, average a film can show 10 ad slots, average a movie can show in screens: we have 10 slots * films* screens = 300 ads are shown every day at cinema Multiplying the price by slot for advertising 300 * 180,000 = 54,000,000 VND / day / theater CJ CGV in HaNoi has 23 outlet so the total is 54,000,000VND *23*30 =37,260,000,000VND/day - For Concession: A popcorn + drink combo is almost equal to a movie ticket (at CGV a popcorn combo falls to 100,000 VND) while the cost of these dishes is only about 5% of the selling price That is, selling a combo of popcorn + water helps the theater earn an instant 95,000 VND profit The total profit CJ CGV (estimated) =95,000VND*1,972M (ppl) =187,34MVND/month - For Tickets: Assuming CJ CGV can hold 30% of the price of tickets and the average price is 95,000VND The profit is 30%*95,000VND=28,500VND The expected profit from selling tickets in the first half year in 2021 is 28,500VND*1,972M (ppl) = 56,202M VND/month Market dynamics ● Sector dynamics: - Before covid-19: + Movie theaters are profitable steadily and grow nearly 30% quarterly + Continuously opening more branches, creating a lot of events with offers to attract customers - After covid-19: + The cinema is recovering at a very slow pace, with almost all Vietnamese guests with no foreign visitors + Movie theaters have to cut a lot of staff, negotiate to reduce the rent + There are strong incentives to stimulate consumer demand to use products ● Distribution channel dynamics: - B2C: This is a distribution channel from company to consumer because the cinema will buy the film from the producer and sell it directly to customers without going through any intermediaries Spend ● Income: The total profit CJ CGV (estimated) =95,000VND*1,972M (ppl) =187,34MVND/month ● Interest rate: According to the report, the interest rate in 2019 increased by 156% compared to the previous year, this shows that this business thrives in Vietnam and will make Vietnam one of the top countries in the world in the cinema industry However, after a serious decline in interest rate in 2020 due to a global epidemic, CGV is estimated to quickly recover and increase the interest rate by 80% in the first months if covid-19 is controlled ● Employment: Due to Covid-19 in 2020, CGV needs a workforce reduction plan to begin recovering from the worldwide epidemic crisis Furthermore, online checkin will help socialize and reduce costs for businesses in hiring workers ● Proximity of product: An analysis report by Korean securities company KDB Daewoo said that the Vietnamese cinema market is dominated by main players, accounting for a total market share of 98%, including CJ-CGV (43%) , Lotte (30%), Platinum (10%), Galaxy (9%) and BHD (6%) Thus, CGV is having the largest coverage in the Vietnamese cinema industry In the near future, cinemas will be expanded in the provinces to increase brand awareness and closeness Mr Sim Joon Beom, General Director of CGV, by 2020, each year, CGV will open 1215 more screens, including 4-5 theaters in localities located far away from big cities, to bring High-quality cinema experience festivals for audiences across the country The average investment cost for a cinema cluster of CGV is about 3-5 million USD Organization changes: CGV needs to consider likely changes in company organization after a period of operation does not increase profits The organizational structure changes will be caused by the management of the company based on the actual situation and making appropriate Vacancy Media Sales Manager Media Sales Admin Cinema Marketing Specialist Job description • Works closely with Sale team support Develop Customer current clients and and Revenue data Relationship maintains a good management Management (CRM) relationship with • Check, collect strategies: them information and • Build CRM's full year • Invite clients to the prepare the Media strategy and develop Company's events Sales/Group Sales execution plans (establish and functions and Contracts and yearly policy & fetch take care of them to Proposals for detail direction, new maintain a strong Clients function innovation) relationship • Update and key in • Ensure CRM’s KPI - • Handle efficiently sales revenue developing specified and effectively reported from promotions/plans to clients’ inquiries to Media sale team maintain member loyalty ensure clients are into Action Plan, & drive direct traffics to happy with our Master File the cinemas services weekly, monthly, • Nurture customer • New Clients quarterly and relationships & value Searching: yearly through exclusive proactively search for • Be one of the activities/gifts & other new clients from main contact events other media such as points with Manage and Control newspaper, magazine, Accounting, HR CRM Communication television, radio, Channels: Department about 22 billboard, actual revenue • SMS: Create content recommendation and report and send SMS to the other connections • Conduct and target audience for • Major account management, support Sales team specific to complete closing campaigns/promotion including making monthly • EDM: Build template joint calls and being • Update pipeline and content for specific involved in key daily, make sure EDM campaigns; account activity database is always optimize efficiency of • Approach for up-to-date, keep EDM campaigns with meeting to introduce record of new client given budget the services and send to Sales • Other Online channels: • Encouraging and team to approach Manage content related enforcing positive Budget and to specific CRM forces, leadership expense record Campaigns on Web/App skills and above- (không lấy vào & SNS (Facebook, average job slide) Instagram, ) performance within • Double check and Manage, control and analysis Customer record all team the department • Prepare reports for expenses Database: clients if necessary (Entertainment, • Provide executive (admission, movies Travel, Project analysis for upcoming list, photos etc.) Expenditure, etc.) campaigns or certain • Take photos on • Book and follow requests from other teams each client’s all team expense on • Suggest direction & campaign for clients E-accounting strategy based on and/or for our library 23 to demonstrate to system executive analysis other clients for their • Keep track team • Conduct market reference budget to reach research/surveys based • Prepare precise effective operation on current customers to quotations Proposal as well as ensure explore new for clients and keep company policy insights/market study track correctly Manage and develop • Update accrual of CGV Membership monthly expense to Program: Accounting and • Yearly propose FP&A Department membership policy Other tasks • Monthly and weekly • Collect invoice tracking membership and ask Accounting performance and Department to issue proposing directions for invoice improvement as needed • Save all the • Nurture customer contracts and relationship & value related document through exclusive • Follow payment activities and events and debt, remind • Manage suppliers to sales for settlement produce & deliver • Request voucher membership materials, and distribute to gifts, to the cinemas on particular Media time for specific Sales member campaigns 24 • Book • Build workflow for accommodation and specific membership submit document on campaigns/ promotion system and work closely with the digital team for smoothly automation running • Work closely with the IT team for system development which directly supports CRM campaigns • Maintain effective communication with the operation team regarding the membership program (i.e guideline, policy, POSM & other issues related to customer service) Job • Bachelor’s degree • Graduate in • Bachelor Degree in Economics, Marketing fields communications or Commerce, • 3-4 years of experience similar field – Business in CRM/social/digital required Administration, marketing Experience • 03- 05 years of Hospitality major working in E-commerce, related media • A minimum of Retail, Marketing requirements in business, 25 management years Sales Admin, Agencies is a plus experiences – Sales Operation, • Good experience in required Administration or CRM systems and data • Good knowledge of Personal Assistant experience in an Media Market and strong relationships international with Media Agencies company are advantages • Hard-working, • Excellent written high sense of and oral confidentiality analysis is a plus • Independent, selfmotivated with excellent interpersonal and communication skills • Willingness to learn in a fast-moving communication • Customer Services environment skills as demonstrated mindset • Good command of by proposals, email • Willing to work English correspondence and under tight departmental communications – required deadline • Good in Excel and other Microsoft • Good at presenting office and convincing • Ability to skills, Sales oriented communicate in • Good command of English English Recruitment: Locating Prospective Candidate - Internal Sources:  Present CGV Employees through Promotions and Transfers  Former CGV Employees 26  Employee Referrals (The existing employees refer their family members, friends and relatives to the company as potential candidates)  Previous Applicants - External Source  Employment Agencies in Ha Noi: RGF Executive Search, Adecco Vietnam,  Online (Website such as Ybox.vn, Vietnam.recruit.net, & Social Media such as Facebook, LinkedIn, )  Professional Association  Campus Recruitment  Competitors or Employee Poaching - Others:  Deputation  Advertising  Word-of-Mouth 27 Selection: Evaluation & Hiring b Screening Resumes and Applications - Step 1: Ticking off the basic or must-have requirements - Step 2: Scanning for preferred or good-to-have qualifications - Step 3: Matching the holistic picture of the candidate to the role c Interviews - Follow their CVs to know about their background information - Ask them to tell more about their job experiences - Create situations to see how they react and deal with the problem - Look for clues about the candidates' body language in arm movements, gestures, handshakes, and eye contact d Testing Testing interviewers on the hard and soft skills: - Identifying requirements for participants: need to focus on the skills, tools, or knowledge that will get them to their jobs better 28 - Matching Session Learning Objectives With Job Requirements: Have a list of the things participants must on the job to align the learning objectives with participant needs - Create assessment methods allowing you to determine if employees have met the learning objectives in a way appropriate to the job requirements - Assessing Performance During And Upon Completing The Training e Selection Decision  Identify the five core behavioral traits you want employees to have for this role  Evaluating The Training Effort After A Period Of Time  Choosing the most suitable candidate instead of the best one Training: a Assess sale training needs - Method: salesforce audit (strictly control each cluster of sales staff at different locations) - Define your need area (CGV in HaNoi) - Analyze and assess your current state (Promote sales of movie tickets to recover from the Covid-19 pandemic) - Specifies the evaluation of particular tasks or skills: connect with clients, develop customer relationship by telephone sales appointment, giving customer care gifts - Engage experts - Assessment Roll-ups - Survey on Salesforce: New movie introduction - Survey your front-line sales managers 29 b Set training objectives - After joining training, sales staff will have comprehensive skills in sales, case handling and advertising - Create positive attitudes (proves that CGV is a young, dynamic and suitable working environment for all ages) - Develop salespeople for future management position (after working as media sale admin, if you achieved KPI, you will be promoted as manager) - Media sales managers can work closely with current clients and maintain a good relationship with them Moreover, they can also invite more potential clients c Evaluated training alternatives - Sale trainers: internal and external (media sale specialist) - Sales training locations: regional offices - Training methods:  Classroom training  On the job training  Focus on behavioral learning by means: case study, sharing experience  Allowing salespeople to experience the consequences of their action  Sales training media: online if Covid-19 pandemic or Force Majeure d Design sale training program: Learning Management System (LMS) - Integration with CRM: Putting the learning platform "inside" the CRM system makes it that much easier for salespeople to access training They don’t need to log into a separate training system to get the latest courses that will aid their ability to sell 30 - Gamification: Salespeople are competitive by nature, so up the ante by gamifying training and letting them compete for who’s highest on the leaderboard, most current on new courses, or scoring highest on tests and quizzes - Off – the – shelf content: Companies will always require some amount of proprietary information that’s conveyed via training courses However, for universal skills within the realm of sales mastery, for example, there’s no need to recreate the wheel Sales training content should be bought off the shelf and loaded into the LMS for easy access - Video assessments: A feature that should be included in the LMS, video assessments enable salespeople to record videos of themselves performing critical actions, such as delivering a product pitch and post them to the LMS for assessment via both AI and human feedback - Reporting: Know who has completed which training and when, and who needs further coaching to get caught up Built-in reporting makes it easy to regularly track progress on learning paths, test scores, and stay on top of anyone who’s falling behind e Perform sale training - Lead generation: Converting prospective customers through job applications, blog posts, online content, etc - Sales funneling: The process by which salesperson funnel customers, starting from a large potential group to a smaller focused one - Drafting proposals: A clear and concise document that focuses on product features and customer objectives - Up-selling and cross-selling: Ways by which customers are either led to buy a high-end product or other relevant products 31 - Methods of customer delivery: Know what to sell, be confident, show respect, and be attentive to the customer’s needs f Conduct follow up and evaluation Considering points from the Kirkpatrick Model: - Reaction: Discuss the strengths and weaknesses of the program Importantly, try to get insights into understanding the learner’s pace and styles - Learning: Analyze whether the obtained learning has influenced performance KPIs Moreover, provide course certificates on completion to motivate trainees Set up a feedback forum where questions can be raised that can be answered by supervisors - Behaviour: Spend time on understanding whether the program has had a positive attitude change in the employee Use multiple methods such as self-assessment questionnaires, focus groups, surveys to evaluate effects on behaviour - Results: Although this seems like the core evaluation criteria, ensure you carry out the ones mentioned above as well Outline important metrics that can be measured before and after the program Some examples are:  Employee Productivity  Employee Retention  Improved Business Outcome  Customer Satisfaction 32 Motivation & Reward a Financial compensation - Straight salary:  Cashiers will have a salary range from 6.000.000 - 7.500.000VND/month based on experience, knowledge and working time Cashiers' salary will increase after passing the test every months The salary can increase around 10-20% based on their efforts It can be evaluated by supervisors  Supervisor will receive around 8.000.000 - 10.000.000VND/month for a 9hours working shift The salary will be higher if you have the experience and good management capacity They also need to take the test every months as the cashier to have a chance of increasing salary - Straight commission: Every staff member has a chance to get a 10% commission when they find customers who want to rent the theater or rent CGV to host the show - Performance bonus: CGV cinema also has a reward system Staff of the month can earn 500.000VND - 1.000.000VND bonus/month and receive a voucher from CGV’s client - Combination plan: Each staff can have movies free ticket/month and a bonus from tip every month b Non-financial compensation - Promotion: You can be promoted at CGV theater if you have long-term commitment, pass all the tests, completely understand cinema process and manager job - Sense of accomplish: A sense off accomplishment emanates form the salesperson’s psyche 33 - Opportunity for personal growth: Opportunity to develop communication skill, management skill, technique skill, and complaints handling skills - Recognition: CGV’s staff of the month will be honored on reward wall - Job security: Postpartum women are still contracted to support up to months' salary 34 REFERENCE 2.1.1.1 Q&Me Viet Nam Market Research (May, 2019), “How Vietnamese enjoy at the cinema?”, https://qandme.net/en/report/vietnamese-cinema- watching-behaviors.html 2.1.1.2 Long Nguyen (11/9/2020), “Covid 19 horror show continues for Vietnam cinemas”, VNExpress, https://e.vnexpress.net/news/life/culture/covid-19horror-show-continues-for-vietnam-cinemas-4158733.html 2.1.1.3 Linh Do (12/4/2020), “Covid 19 leaves Vietnamese cinema reeling”, VNExpress, https://e.vnexpress.net/news/life/culture/covid-19-pandemicleaves-vietnamese-cinema-reeling-4081156.html 2.1.1.4 Lâm Tuyền (15/2/2020), “CGV Việt Nam lợi nhuận 156% năm 2019”, Tạp chí điện tử Kinh Tế Chứng Khốn Việt Nam, https://kinhtechungkhoan.vn/cgv-viet-nam-loi-nhuan-156-trong-nam2019-59837.html#:~:text=C%C3%B4ng%20ty%20m%E1%BA %B9%20CJ%20CGV%20cho%20bi%E1%BA%BFt%2C%20trong %20n%C4%83m%202019,b%C3%ACnh%20h%C6%A1n%2010%20t %E1%BB%B7%20%C4%91%E1%BB%93ng 2.1.1.5 Châu Cao (27/3/2020), “Đại diện CGV: “Đóng cửa rạp giống sập nguồn hồn toàn””, CafeF, https://cafef.vn/90-so-rap-da-dung-hoat-dongdai-dien-cgv-dong-cua-rap-giong-nhu-sap-nguon-hoan-toan20200327104431471.chn 2.1.1.6 Ngọc Diệp (4/4/2020), “Rạp chiếu khủng hoảng mùa Covid 19: Khó phục hồi đại dịch qua đi?”, Tuổi Trẻ, https://tuoitre.vn/rapchieu-khung-hoang-mua-covid-19-kho-phuc-hoi-ngay-ca-khi-dai-dichqua-di-20200404105200193.htm 35 36 ... while the cost of these dishes is only about 5% of the selling price That is, selling a combo of popcorn + water helps the theater earn an instant 95,000 VND profit The total profit CJ CGV (estimated)... After A Period Of Time  Choosing the most suitable candidate instead of the best one Training: a Assess sale training needs - Method: salesforce audit (strictly control each cluster of sales staff... =187,34MVND/month - For Tickets: Assuming CJ CGV can hold 30% of the price of tickets and the average price is 95,000VND The profit is 30%*95,000VND=28,500VND The expected profit from selling tickets in the