1. Situation Analysis#

1.1 Introduction#

Village Cinemas is one of the largest cinema operators in Australia (Village Roadshow, n.d.), with the first drive-in cinema established in 1954 (Village Cinemas Australia, n.d.). Since its inception, the brand has continued to expand the number of cinemas it operates and enrich the cinema experience to provide consumers with a high-quality cinema experience and service.

1.2 Internal Analysis#

Village Cinemas has a high level of tangible resources to provide customers with a high-quality cinema experience. Specifically for Village Cinemas M-City, the cinema is equipped with more comfortable seats, state-of-the-art laser projection technology and in-seat food and beverage delivery (M-City, n.d.). The unique selling point of Village Cinemas M-City is that it offers the Vpremium cinema experience between the traditional and gold classes (Village Roadshow, n.d.). This allows customers to make more use of the movie to meet the needs of the target segments. In addition, the strong brand image of Village Cinemas and its good reputation as intangible resources are strengths of Village Cinemas M-City.

Village Cinemas has combined in-house and agency resources to implement its IMC campaign. In past IMC campaigns, Village Cinemas has developed a branding project for internal audiences called “Where movies mean more”, which features real customers at a launch spot to remind the market of the special moments made possible by cinema (Marketing Mag, 2017). Another IMC campaign about the Vrewards program to increase repeat spend and brand loyalty was set up with Movio (Marketing Mag, 2017). Although Village Cinemas has the IMC capacity to organise IMC campaigns, most focus on promoting the brand in general rather than targeting specific locations. Therefore, the effectiveness of the promotion for Village Cinemas M-City has been limited, and the new M-City location has lower brand awareness than other established locations.

1.3 External Analysis#

1.3.1 Environmental#

Factor	Factors affecting this industry	Importance to brand
Political	Government support and funding for the screen industry (Screen Australia, 2022); global trade agreements/globalisation trends	More opportunities and resources for Village Cinemas and help it offer more movies from overseas, increasing the diversity of movies available.
Economic	High inflation and interest rates (Reserve Bank of Australia, 2023); the rising cost of living (Reserve Bank of Australia, 2023)	May lead to higher operating costs for Village Cinemas, thus affecting its profitability and growth; a drag on real household income, consumers may spend less on cinema services in Village Cinemas.
Social	After the pandemic, some customers turned to streaming (Morgan, 2021); moviegoers increasingly sought big-budget films (Screen Australia, 2022); demographic changes (population aging) have influenced the shift in key audience profiles (Kyriakopoulos, 2023)	Reduced the demand for Village Cinemas. Village Cinemas needs to adjust its movie screenings and promotions to meet audience needs and attract audiences back into cinemas to respond to these shifts.
Technology	New projection technology (Kyriakopoulos, 2023); online commerce and online ticketing; increased internet penetration (Kyriakopoulos, 2023) and competition from SVOD and digital movie download services	Technological developments have allowed Village Cinemas to provide better cinema services to customers, increase efficiency and reduce operating costs; however, there is increased competition from SVOD and digital download services.
Legal	Australia’s anti-piracy law (Thomas, 2015)	Protection for the copyright of Village Cinemas, reducing the incidence of pirated recordings in the cinema.
Environmental	Environmental issues and sustainability trends (Euromonitor International, 2022)	As consumers are aware of the impact of environmental issues and are more likely to choose the sustainable brand, Village Cinemas should respond to consumer expectations by incorporating sustainability into its strategy to build a positive brand image and reputation.

1.3.2 Customer#

Young adults

The young adults are probably between the ages of 18-39, single or with partners and come from all over the world. Most of them live in the southeast area or surrounding suburbs. They follow the trends in cinema and usually watch the latest movies with friends and lovers on weekends or weekday evenings after school/work. For them, the cinema is a social place where they can interact with others and enhance their relationships. Therefore, cinemas that can offer a high-quality experience will be more appealing to this segment.

What: Social place; heavy users; action, adventure, horror.
Why: Enjoyment and relaxation; social.
Where: Online, app.
When: Go out to play; on a date; when interested in a particular movie.
How: Credit card payment.
Who: Aged between 18-39; southeast area and surrounding suburbs; students or workers.

Families with children

These families with children mostly live in the southeast and surrounding suburbs. As this segment goes to the cinema to spend time together and enhance family relationships, they prefer cinemas with a safe and comfortable viewing environment.

What: Family-friendly place; light users; family, animated.
Why: Enhancement of family relations.
Where: Online, app.
When: All family members are available; when interested in a particular movie.
How: Credit card payment, cash.
Who: Southeast area and surrounding suburbs; middle or higher household income; parents are decision-makers and their decisions are influenced by their children.

1.3.3 Competitor#

Village Cinemas M-City competitors include both direct and indirect competitors.

Direct competitors
- Hoyts Chadstone
  - Strengths: message integration; excellent location; strong follower base on social media; more types of rewards (Hoyts, n.d.) such as Hoyts Rewards Members and Hoyts Rewards VIP.
  - Weaknesses: relatively higher ticket prices.
- Reading Burwood
  - Strengths: gift cards available (Reading Cinemas, n.d.); first Titan Luxe auditorium (Melbourneplaygrounds, n.d.).
  - Weaknesses: smaller cinema size; relatively small number of followers.
- Waverly Cinemas
  - Strengths: low ticket prices.
  - Weaknesses: small cinema size; website is outdated and difficult to use; low brand awareness.
Indirect competitors
- At-home streaming (Netflix, Amazon Prime Video, Disney+, Apple TV+…)
  - Strengths: convenience, flexibility, low price.
  - Weaknesses: lack of movie-going experience and social role.
- Other out-of-home entertainment options (restaurants, sport, concerts, theatre).

Village Cinemas Mcity competitors include both direct and indirect competitors. Firstly, Hoyts Chadstone, Reading Burwood and Waverly Cinemas are direct competitors of Village Cinemas Mcity, not only because they are all cinemas offering similar products and services, but also because of their proximity to each other and the similarity of their target audience. Each of these competitors has its own strengths and weaknesses and competes in terms of ticket prices, cinema facilities and the quality of the cinema experience. One of the unique strengths of Hoyts that need to be noticed is its well-integrated message, implying verbal and visual consistency (Belch et al., 2020). Across the different IMC channels, Hoyts uses its red brand colour to communicate messages that make it stand out and increase consumer awareness and recognition of the brand. In addition, Village Cinemas Mcity faces indirect competition from at-home streaming and other out-of-home entertainment options. To counter these competitors, Village Cinemas Mcity should continue to build on its strengths of offering a more unique cinema experience and promoting its loyalty programme. It should also learn from the strengths of its competitors and focus on the important dimensions of IMC, using multiple marketing channels to attract and retain customers to increase brand awareness and loyalty.

1.4 SWOT#

Strengths
- High-quality cinema equipment and experience
- Strong brand image
- Good reputation
Weaknesses
- Lower brand awareness
Opportunities
- Government support and funding (Screen Australia, 2022)
- Globalisation trends
- New projection technology (Kyriakopoulos, 2023)
- Online commerce – online ticketing
- Australia’s anti-piracy law (Thomas, 2015)
Threats
- High inflation and interest rates (Reserve Bank of Australia, 2023)
- The rising cost of living (Reserve Bank of Australia, 2023)
- The shift in cinema-going behaviour
- Increased competition from SVOD and digital movie download services (Kyriakopoulos, 2023)
- Environmental issues and sustainability trends (Euromonitor International, 2022)

2. Marketing Objective#

The marketing objective for Village Cinemas M-City is to reach 250k admissions to achieve sales revenue of $5.75–6.25 million from 1 July 2023 to 30 June 2024.

tickets

3. Target Audience#

Young adults (mainly students, couples and residents nearby M-City)

These young adults are likely to be between 18-35 years old and are mainly students, couples and residents nearby M-City. Most of them live in the southeast or are students attending the Monash Clayton campus. They usually watch the latest movie releases on weekends or after work and school. For young people, seeing a movie in a high-quality cinema with affordable ticket prices is more appealing.

Geographic: Southeast Melbourne; live near M-City.
Demographic: Aged 18-35; male and female; from different nationalities.
Psychographic: Enjoy the high quality visual and sound effects of the cinema; use social media apps frequently; willing to try trendy things.
Socioeconomic: Middle and high income; majority have high school & university degree; white or blue collar.

4. Communication Objectives#

Learn: Increase brand awareness of Village Cinemas M-City; at least 25% of customers will have Village Cinemas M-City within 12 months as the first cinema that comes to mind when choosing a cinema.
Feel: The target audience can identify with Village M-City by the deadline of June 2024 and have a high repurchase rate, among which 25% become loyal customers.
Do: By June 2024, Village M-City is among the top three popular movie cinemas in the region, with 50% repeat purchases from its target audience.

5. Marketing Communication Elements#

5.1 Advertising#

Village Cinemas M-City can advertise through outdoor and digital marketing to attract more potential consumers. Maloney (1962) argued that advertising messages that arouse curiosity in consumers tend to be effective. One form of outdoor advertising is the placement of posters and billboards in public places; 93% of Australians see outdoor advertising in and around capital cities every day (D’Amato, 2022). In order to ensure that the advertising messages are seen by as many potential customers as possible, it is wise to place posters and billboards in prominent locations.

Additionally, it can also be very effective to do digital social media marketing advertising. The positive influence of social media is received differently by age groups, with young people relying mainly on social media for entertainment, with Facebook, TikTok, and Instagram users expected to reach 3,025 million, 2,198 million, 1,521 million in 2026 (Statista, 2022). The use of digital social media allows advertising to be placed on social media frequented by the target group based on a large user base and a large database.

5.2 Sales Promotion#

To increase awareness and attendance at Village Cinemas M-City, several strategies are proposed. The first is offering Wednesday half-price tickets and couples’ packages to attract audiences to the cinema on weekdays, as consumers tend to go to the cinema on Friday and Saturday nights (Screen Australia, 2022). In addition, giving away popcorn and drinks will increase promotional outcomes, and giveaways are useful for increasing awareness and belonging.

Village Cinemas M-City can similarly hand out coupons to increase awareness and attract more new consumers. There are two ways to give coupons to consumers. The first is to collaborate with M-City Mall, where consumers who spend more than $150 at the mall will receive a 20% discount coupon for the Village cinema. Alternatively, after three cinema visits to the Village M-City, consumers can receive a$ 10 voucher. This promotion will help Village M-City to gain more sales revenue and new customers, as well as maintain brand loyalty with existing customers.

5.3 Direct Marketing#

5.3.1 Email marketing#

Direct marketing is a marketing system by which Village Cinemas M-City can communicate directly with customers to generate a response or transaction (Belch et al., 2019). Considering the marketing objective and budget, using email marketing as a form of direct marketing to deliver messages to potential or existing customers is a good option for Village Cinemas M-City, as it has a high ROI of $36 for every$ 1 spent (Kirsch, 2023).

To achieve email marketing, Village Cinemas M-City first needs to collect emails from potential customers through registration or membership subscriptions on the official website. Then regular emails should be sent to customers to maintain brand awareness. Regarding the content of the emails, Village Cinemas M-City can focus on newly released big-budget popular movies to cater to the preferences of the customers. Besides, the emails could include recommendations for revisiting old low-budget movies to respond to the reduced supply of low and mid-tier content. It is also worth noting that to encourage the audience to open the emails, promotional messages can be included to increase customer engagement.

5.3.2 Public Relations#

As a high-end cinema affiliated with Village Cinemas, M-City has a relatively low visibility and recognition. In response, the brand can conduct exposure through the official account of Village Cinemas on social media to attract the attention of target consumers to M-City, so as to generate more and frequent interactions. As a cost-effective platform, social media can regularly interact with existing audiences and constantly convey brand positioning, value, concept and other information to communicate with audiences (Master’s in Strategic Communication and Leadership, 2021).

The high page views and popularity of Village Cinemas’ Instagram account can be used on the social platform Instagram to attract target audience for M-City. This approach takes into account that the target audience gets information mainly through social media, so M-City can interact with the target audience more directly and accurately. Social media can provide a more efficient publicity platform for M-City, and at the same time, M-City can make improvements and crisis management through the comments and feedback of the target audience, so as to create a deeper connection between consumers and M-City.

6. Creative Strategy#

6.1 Positioning Statement#

Village Cinemas M-City caters to young movie enthusiasts, providing an immersive cinema experience with a diverse selection of the latest films, comfortable seating, and cutting-edge technology, ensuring unforgettable moments and connections.

6.2 Advertising#

According to van Meurs and Aristoff (2009), brand recognition can be improved by having a clear brand identity on the poster and leaving out other distracting content. Posters and billboards for the launch of Village Cinema M-City are biased towards delivering popular movies for the second half of 2023 and also include promotions such as a $10 free coupon and a 20% discount coupon on movies.

Posters are time-sensitive, visually striking, relatively inexpensive and less demanding on the environment. Designing visually compelling posters increases the effectiveness of the message and expands its impact. Also, placement in the right location can have a significant impact on marketing effectiveness. Choosing a fixed coverage area and placing posters in high-traffic areas, incorporating cinemas targeting students, couples or residents of M-City communities, etc., can be effective. The outdoor advertising places can be targeted according to the lifestyle habits of the target audience, for example, in M-City Mall, Monash University Clayton campus and train stations.

poster

6.3 Email#

Below is an example of a direct marketing email based on Mission: Impossible – Dead Reckoning Part One, which will be released on 13 July. The creative strategy for this email starts with a compelling email headline that summarises the main content of the email. It emphasises the popularity of the movie and the associated promotional offer, thus increasing the incentive for customers to view the follow-up content of the email.

Multiple mentions of limited time offer and the booking link in the email help to motivate customers to purchase tickets with a sense of urgency. In addition, the use of the movie imagery adds visual impact to help create an emotional connection, and the Village Cinemas brand logo contributes to increasing brand awareness. Ultimately, the combination of these marketing elements is designed to attract potential customers to the Village Cinemas M-City to see movies and to reinforce customer awareness and loyalty to the brand.

6.4 Coupon#

The coupons are offered in both electronic and physical formats. Firstly, the use of the latest movie posters as the context for the coupons conveys the message that the latest movies are available at Village Cinemas M-City, raising awareness of the cinema and attracting the attention of the target audience.

Secondly, labelling Village Cinema M-City, using contextual and brand name associations based on search clues (Alice M, 2021), draws consumers’ attention to the newly opened outlet. Thirdly, the 20% discount and the $10 offer are clearly stated in large print, which increases the motivation for consumer purchase behaviour.

Fourthly, the expiry date is stated. The time frame impacts consumer willingness (Mingrui, 2021), and the expiry date makes consumers want to use the coupons as soon as possible to avoid wastage, thus increasing the efficiency of coupon use and boosting sales of movie tickets.

Finally, discount coupons with M-City Mall are given to customers in the form of physical tickets. Physical tickets are more likely to drive consumers’ willingness.

coupou1

coupou2

Through the previously mentioned use of the Village Cinema Instagram account for the M-City guide, attention to raising awareness is an efficient, low-risk method. The specific way of implementation is to screen the recent popular movies in Village M-City and produce posters, which encourage consumers who have had a movie experience in Village M-City to leave a reply about their fond memories.

Data show that most Australian Instagram users are aged between 25 and 34, with females accounting for 26.58% and males for 22.05% (Hughes, 2023). By choosing Instagram as the messaging platform, Village M-City can reach its target audience more accurately.

For the design of the posters, dark yellow is chosen as the background. Yellow often gives people the image of light, warm feeling. The aim is to simulate the movie-watching experience in Village M-City through dark yellow colour, so that consumers can recall good memories. At the same time, the choice of cover film is targeted at the target audience (young people, young couples). Love Again and Book Club are movies about love and friendship, respectively. The hope is that the movies chosen can strike a chord with the target audience, to create deeper communication and connection with the target audience.

poster1

poster2

7. Media Strategy#

7.1 OOH#

Maloney (1962) argued that advertising messages that arouse curiosity in consumers tend to be associated with heightened response. Out-of-home advertising is one of the most intuitive forms of marketing; it requires no additional investment once placed, can be published 24/7 and has the most time to spread. Outdoor advertising has a certain compulsive nature, and even consumers in a hurry may be impressed by a casual glance at an advertisement, and by repeatedly being impressed by certain products.

In particular, some people who go shopping at M-City are drawn to the cinema by the posters outside, or in high-traffic areas of the train station, increasing the exposure of Village Cinemas M-City.

7.2 Print#

Printed coupons typically offer a higher return on investment (Knowledge Networks Trend Report, 2016). Purchasing products over $150 at the M-City shopping mall will give customers a 20% physical discount coupon.

Physical coupons with discounts or special offers drive consumers to make purchases they would not otherwise consider, while also increasing brand awareness and introducing consumers to new products or services. When they interact with a physical coupon, they become more familiar with the brand, which leads to better recall and recognition of it in the future. This also drives traffic, as physical coupons often require customers to visit a shop or other physical location to redeem the offer, which helps drive traffic to the business.

7.3 Digital Media#

7.3.1 Email#

In the digital age, the email medium is the most widely used and important digital communication channel (WalkMe, 2022), and it is also Australia’s most popular internet activity (Safari Digital, 2023). Email has a large number of users. It can reach a wide audience at a low cost and can also send targeted and personalised messages to meet the needs and preferences of the target audience.

Through the medium of email, Village Cinemas M-City is able to establish a direct channel of communication with its audiences, keeping them up to date with the latest movie information and promotions, which can include coupons to attract them to the cinema. Village M-City can also display brand elements through well-designed emails to ensure the visual appeal of the emails and brand consistency, which helps to raise brand awareness and build recognition of the cinema among the audience.

In addition, according to data on weekday email volume and performance provided by the Ultimate Australian Email Guide (Specht, 2017), open and click-through rates perform best on Mondays. Therefore, Village Cinemas M-City can take advantage of this trend by sending out regular emails to subscribers and customers every Monday.

Digital social media is now an important channel for brands to communicate their messages. It is more affordable than traditional, substantive media such as banners and TV ads, while still creating continuous interaction with the target audience.

According to the data, it is estimated that the number of internet users in Australia will reach 23.3 million in 2025, 91% of which are active users and 45.2% are mobile phone users (Cycles & Text, 2022). As of February 2022, the active users of social media in Australia account for 82.7% of the total population (Statista, 2022). The huge user base of social media is enough to show that the message of a brand can be spread more widely through the use of social media.

Village Cinemas M-City can use social media to send customers information about discount days and special offers on movies. This can guide consumers to generate sustained consumption so as to strengthen the brand loyalty and stickiness of the existing customers of Village M-City, and obtain new users through the M-City channel to improve brand awareness.

Media Schedule#

schedule

8. Budget and Time Frame#

budget

9. Effectiveness Measures#

Marketing Objective

To evaluate this market objective, it will be done primarily by tracking the audience for the movies and the ticket sales. The number of customers will be closely monitored, both those who purchase tickets online and those who purchase tickets at physical ticket windows. This will be reviewed through the production of the financial statements to determine whether the objective has been achieved.

Communication Objectives

Learn: By sending out online questionnaires to users who have made purchases in Village M-City and asking key questions such as: “When it comes to watching movies today, which cinema do you want to go to first?” Viewers are rewarded with a popcorn coupon after they complete their answers, and the effect is evaluated according to the data collected from the questionnaire.
Feel: Customer feedback on the Village M-City experience will be actively sought by collecting customer data through surveys and gathering relevant data on the target audience, including preferences and behavioural patterns. Customer satisfaction with the product and perception of the brand will be obtained through surveys, social media monitoring and reviews. Customer retention will be monitored by calculating a Net Promoter Score (NPS) by subtracting the percentage of customers who gave a score of 6 or less (“critics”) from the percentage of customers who gave a score of 9 or 10 (“referrers”).
Do: Customer retention is a key performance indicator to achieve this goal. A high customer retention rate means that Village Cinemas M-City’s customers tend to continue to buy or not choose other cinemas to see movies, preventing them from losing customers and losing marketability. The company should calculate the number of customers owned at the beginning of the cycle divided by the customers lost during the period and then multiply by 100%. The period for calculating the retention rate can be one month, one quarter or one year, and the company can evaluate the retention rate in one quarter to prevent losing customers to the market.

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