Adopted By The Odeon Cinemas For Better Business Marketing Essay

Adopted By The Odeon Cinemas For Better Business Marketing Essay ABSTRACT In the present report the concept of E- Business and the importance of the E-Business in the present day Business operations has been discussed and analysed. The E-Business strategies adopted by the Odeon Cinemas for better business prospects and also the features included in the website for online customer relationships are analysed carefully. Online transactional facilities given by the Odeon cinemas are studied and also the networking sites used by the Odeon cinemas for promotions and advertisements are analysed. Details of page views of the website are included for better understanding of usage of website. After understanding the various E-Business strategies of the Odeon Cinemas few recommendations are made for better and more user friendly website. Introduction to E-Business: Electronic Business is defined as All electronically mediated information exchanges, both within an organization and with external stakeholders supporting the range of business processes (E-Business and E-commerce management, Dave Chaffey, 2009). It is also known as the process used to describe the information systems and applications for effective business operations. Companies across the globe are competing in serving the customers with varied interests and ideas. It is used for enhancing the competitiveness of an organisation by implementing the innovative technologies and advanced communication mediums in internal and external processes of the organisation (Dave Chaffey, 2009). E- Business has become the platform for the organizations and customers for better sharing of relationships. E-Business strategies help the company to reach the customers of various segments in an efficient way. The idea of E-Business takes the companies much closer to the customers and business partners a nd also it enhances the overall business performance by linking processes within the organization and outside the organization. Advantages of E-Business: Worldwide Presence Cost Effective Marketing and Promotions Developing a Competitive Strategy: Better Customer Service COMPANY INFORMATION: Odeon is one of the largest cinema chains with more than 100 cinemas spread across the country. It is also ranked among the best entertaining cinemas in the market, and it is also known for its eighty years of experience in entertaining the people of United Kingdom. The website of Odeon cinemas has all prerequisites required by the movie lovers; it also consists of many features which makes the loyal customers feel more satisfied. Majorly the content of home page of the website has been designed very user friendly so that the customers get almost every option by just viewing the home page. Odeon being a well known entertaining company in United Kingdom has been consistently working on the website for better look and user friendliness so that it can retain the esteemed customers in the long run. Odeon cinemas website has all options like Login/sign up option which is used for updating the customers with new offers and promotions regularly. It also has easier way of getting premiere club membership which helps in maintaining the good customer relations. Odeon cinemas are always been in first position in serving its premiere club loyal customers by best offers and promotions. It has made considerable progress during the last decade in terms serving the customers and revenue generation. Odeon has introduced point system for every visit of this site for its premiere club members so that the optimized use of the website can be done. Movie lovers will also get the updates like now booking, new releases and coming soon movies where in the customers can pre plan the visit the cinemas. The website facilitates high definition trailers on websites with movie ratings which gives the overview of the movie to the movie lovers and the loyal customers. The following graph gives daily traffic rank trend of the Odeon.co.uk for last six months, the gradual growth can be observed in the graph which is positive sign for the website and also gives monthly traffic rank. ODEON CINEMAS -BRANDING: Odeon cinemas Fanatical about Film is well known for its brand and existence in the UK entertainment market since decades. Its brand is key factor which makes the Odeon cinemas ahead when compared to its counter parts in United Kingdom. ODEON evolved as a market leader in United Kingdom in 1998 as a result of an extensive re-branding campaign and also it introduced Fanatical About Film to the UK cinema-goer. The re-branding and refurbishment campaign has enhanced the brand value of the company. Odeon- Brand Icon: The company has tremendous reach to the customers over seven decades with 100 cinemas across the United Kingdom. It is always been ahead in serving the customers by various promotional activities; the websites of Odeon cinemas is well segmented and has elements for every age of customers. Nevertheless the company has to concentrate on loyal customers as these customers promote brand indirectly. After acquiring the Odeon cinemas in 2004, the United Cinemas international as changed its name to Odeon cinemas in United Kingdom, which is much more familiar to the people in the United Kingdom. Odeon is looking ahead for exiting period of development, which makes Odeon cinemas unique in serving the loyal and esteemed customers. Challenges for Brand: Today the entertainment market has turned highly competitive and the companies have to be more customers centric for successful business operations. In this global arena it is challenging to the companies to maintain the brand value recognition in the market. It is very important aspect of having keen look on the customers tastes and preferences which are changing rapidly with the time. Particularly companies like entertaining are facing many challenges to keep their customers satisfied. Here in the present case the challenging aspect to the Odeon cinemas is to competition from other counter parts like Cine world Cinemas and VUE Cinemas which operates 68 cinemas in different parts of United Kingdom and Republic of Ireland. Brand popularity: In the present day scenario the popularity and the Brand value of the company plays a vital role in making the business successful. Odeon needs to adopt few marketing strategies like advertising on other popular websites which generates more business. Online branding is an important aspect of marketing strategies which gives both the identity and helps in maintaining the reputation and it leads to competitive edge over other cinemas in United Kingdom. Comparisons with other key market players in United Kingdom: Scale is based on the average worldwide traffic of Odeon cinemas in all years The above clearly shows that the average worldwide traffic range of the Odeon cinemas website is in second position just after the one of its counter parts. Odeon cinemas also has 50:50 joint venture on cinema advertising with Cineworld group PLC (Interactive Investor Jun 10 2008). ODEON CINEMAS SEGMENTATION: According to the recent survey by the FAME (Film Audience Measurement Evaluation), it is been found that approximately eighty seven percent of the people said that the cinema is their most enjoyed activity. In the recent days the rate of cinema goers is increased considerably when compared to the previous years. The number screens across the UK continuous to increase leading the increased revenues. It is found that 28% cinema-goers would like to visit multiplex cinemas and 10% prefer independent/arthouse cinemas and the 62% are open to the suggestion. The 20% of respondents consider cinema tickets to be too expensive. Keeping the findings in to consideration the Odeon cinemas has to concentrate on various sectors of the audiences. Segmentation plays significant role in the concept of Online Business. Segmentation is the process of understanding the grouping of customers in target market in order to understand the needs of the customers treating as potential revenue for developing the strategies to satisfy the customers (Dave Chaffey, 2009). Properly designed website with all the prerequisites required by the customers of various interests and tastes. Identifying the key target audiences is an important aspect and adopting the best ways of communicating with them yields good results in enhancing the brand image and also for business generation. Here in the present case the target group would be the movie lovers for the Odeon cinemas and majorly the segmentation can be carried on sex and age groups of the people. The other segments and potential online targeting market are new contacts, existing customers, social group, geographic location, responsiveness to different offers, responsiveness to campaigns (Dave Chaffey, 2009). Cinemas should concentrate on each individual segment by allotting the screens to specific movies. Cinemas should come up with different promotional activities like gift vouchers and lucky draws in order to grab the attention. In the present case the Odeon cinemas has premiere club membership option to target the loyal customers and retain them for long term relationships. New customers can be targeted by effective promotional activities like mobile marketing strategies, group tickets, student discounts, children films, unlimited access cards. Different premiere club membership options like quarterly and half yearly also grabs the attention of the customers. ONE ELEMENT OF E-MARKETING MIX: The concept of E-marketing mix is a bit different from when compared to the traditional marketing mix, traditional marketing mix involves product, price, promotion and place strategies are developed for traditional counter business. Due to the rapid technology growth the internet has brought considerable change in the way we sell our products and services. Today the consumers make use of internet to get the required information before they service or product and also people prefer to buy products or services online in order to avoid walking in to the counters. The companies have to be quick in serving the customers in an easier way with less cost. Today many international organizations implementing for better business operations internally and externally. Particularly the entertainment companies have scope for optimizing their business operations by going on internet. Cinema sector has significant role in satisfying the customers by implementing the advanced internet services and com munication revolution (Principles of Marketing by Philip Kotler). The digital media advancement has affected every aspect of business processes, marketing and marketing mix strategies (Dave Chaffey, 2009). Marketing mix is a concept of varying the mix elements like price, promotion, place and product to serve the customers in best possible way. Today the entertainment companies need online strategies for attracting and retaining the customers in long run. The concept of E marketing mix considers the following elements of presenting the marketing mix online. E-product strategies E-Price strategies E-Place strategies E-Promotion strategies In the present case the E- promotion strategy has been chosen for Odeon cinemas. Promotion: Being an entertainment company Odeon has seven decades of experience in entertaining the people of United Kingdom. But today promoting business traditionally cannot reach the movie lovers with varied interests and tastes. It is also a challenging task of promoting the business online which involves many issues with practical importance. An Odeon cinema has a recognisable domain name which is prerequisite for e-promotion (Principles of Marketing by Philip Kotler). Banner promotions: Most organisations make use of webpage for advertising and also placing a banner on other frequently used websites is a common form of e-promotion.the potential customers are traced by placing the Banner advertisements on the sites which people browse most often (Principles of Marketing by Frances Brassington). The e-marketing mix must have to be efficient and effective in coordinating with individual elements for successful online marketing strategy. Key elements in Promotion: Sales Promotion. Odeon has come up with the sales promotion activities like cash price and cinema tickets every day for who earns more points by visiting the cinemas. This promotional activity generates the business and also enhances the brand value. The promotional activities like free soft drink also helps in making customer satisfied and it leads in making the customer prefer to visit Odeon cinemas frequently. Web Public Relations The scope for bringing the customer in is a bit high for this method of promotion. Odeon places the News worthy stories like Golden globe awards on the webpage. This creates an interest in audience to watch the films. The other way of is to send WPR articles to review sites for consumers to read by which the probability of business generation increases (Principles of Marketing by Philip Kotler). Public Relations are defined as the deliberate, planned and sustained effort to establish and maintain mutual understanding between an organization and its publics (Institute of Public Relations). Good public relations are very important for any organization in long run for successful business operations and enhanced brand image. Odeon cinemas has premiere club membership option which helps for retaining the loyal customers and also it helps in serving the esteemed customer by special offers. Direct Mail: In the present day scenario as a result digital media communication revolution and rapid growth of internet services made drastic changes in advertising methods and also in customer relation management methods. The concept of direct mail is an efficient method for targeting customer group with the available database which is developed by login/ sign up option. The promotions and offers ate mailed to the potential customers. It helps in retaining the loyal customers. It also helps for monitoring the responses of customers which gives scope for further development of website and serving methods (Principles of Marketing by Philip Kotler). Advertising: Though the term advertising sounds quite familiar in traditional marketing strategies, it also plays a vital role in online business operations. Today the companies are very much concentrated on Internet advertising along with traditional marketing approaches as online advertisement gives wider coverage and reaches to more number of people in an easier way. Online advertisement has gained a prominent position because of the technological revolution across the globe. It is also a cheaper and efficient way of taking product or services to the customer front. SOCIAL NETWORKING SITES: Social networks gained considerable popularity during last five years because many people think that these are online communities where people share the ideas and interests with each other. Odeon being an entertainment company has sharing with various social networking sites like Digg, Delicious, Reddit, face book, Stumble upon, which are most viewed social networking sites across the globe. Social media networks like My space and Beebo are also falls in most frequently browsed websites. The viral nature of these social online networks helps for better business profits. Today companies from different sectors make use of this networking sites for better reach to the customers, especially for entertainment companies these websites gives better business prospects(E-Business and E-commerce management, Dave Chaffey, 2009). Social networks play an important role in influencing the perceptions about brands, products and suppliers (Dee et al, 2007). The research proves that the age and gender differences are large on the types of products discussed in the sites. The recommendations are mostly on restaurants, computers, movies and vehicles among all categories. Odeon has to advertise its offers and promotions on other frequently used sites apart from the social networking sites because upper age class audiences are still not much familiar with the social networking sites. These are the following opportunities created by social media networking Odeon Cinemas can add a human element to the business by promoting on various social networking sites. Can join the customers while they are online and it is an easy way to take the promotions offers to customer notice. It also increases the traffic to the website and enhances the brand image results in increased trust and loyalty. TRANSACTIONAL FACILITIES: An online transactional facility helps the companies for providing efficient and effective service to its loyal customers. Companies should encourage online transactions as the cost and the time involved are less when compared to the traditional transactions. In the case of Odeon cinemas the website has rich online transaction facilities like simple way of booking tickets online, readily available movie ratings, present UK top ten movie list, online premiere club card activation, online booking for conference venues. This makes the movie lovers more comfortable for transactions with Odeon cinemas. RECOMMENDATIONS: From the analysis made on the Odeon cinemas website it is found that it has many prerequisites which are required for its loyal customers. Based on the results of analysis carried on the E-Business strategies of Odeon Cinemas there are few recommendations are suggested for further business development and increase the brand value. It is well designed with most of the information on home page which increases the user friendliness and clarity of the website. Movie lovers of any age group can easily browse through the site and get the required information. Weekly newsletters with show time and announcement can be sent to potential customers by making use of advanced digital media communication. Better business generation by sending the text-based Showtime listings to mobile devices. By monitoring the UK market segment wise, each segment can be targeted with the different promotional activities which satisfy the customers. Customers can also be targeted by following the latest trends across the cinema screens and also by targeting the potential customers before the other market players target. E-business strategies also help in business generation if a proper Odeon cinema comes with offers and promotions according to the distinctive attitudes of the potential customers. CONCLUSIONS: Here in the present report the e-business strategies of the Odeon cinemas have been studied and found that the website has many prerequisites which are useful for the customers. Odeon cinemas also has good brand image and segmentation of the market has been done based on the various factors like distinctive attitudes of the customers, responsiveness for offers and promotions and responsiveness to the campaigns. The website has well connected to the social networking sites to take the offers and promotions to the large number of people in simpler way, which yields good business prospects. It also has online relationship marketing like premiere club membership and Login/sign up option which helps the Odeon cinemas in maintaining the long term relationships and also in retaining the potential customers. Based on the findings of the study few recommendations are suggested for better business opportunities with increased revenues and brand value.