MKT 420

ASSIGNMENT 1

COMPARE THE APPLICATION OF MARKETING MIX TOOLS FOR PRICE AND

PRODUCT BETWEEN BRICK AND MORTAR COMPANY AND ONLINE COMPANY

NAME : NUR SYAZWANI ATIQAH BINTI OMAR

STUDENT ID : 2019333999

CLASS : BA2431A

LECTURER : PUAN NORZEHAN BINTI ABU BAKAR

TABLE OF CONTENT
CONTENT PAGE

BIODATA 1

INTRODUCTION 2

Background of Company (Brick and Mortar) 3

Background of Company (Online) 4

Product (Brick and Mortar) 5

Product (Online) 9

Price (Brick and Mortar) 12

Price (online) 14

Conclusion 16
 BIODATA

I am Nur Syazwani Atiqah Binti Omar and I am 22 years old. I was born on 26th
January 1997 at Klinik Noor Shila Melaka. I am fresh graduated in Diploma In
Secretarial Science from Politeknik Sultan Idris Shah Sabak Bernam. And I currently
persuing my studies in Bachelor of Bussiness Administrations (Hons) Human
Resource Management at UITM Puncak Alam.
 INTRODUCTION

Marketing is the process by which companies create value for customers and
build strong customer relationships and create customer value in order to capture
value from customer in return. Marketing should have a new sense of satisfying
customers needs.
Company must have their own marketing strategies to achieve their goals. They
also must plan the details of marketing mix. The marketing mix is the set of
controllable tactical marketing tools that consists of product, price, place and
promotion that the firm blends to produce the response it wants in the target market.
The objective in this assignment, every student must learn more about price
and product and the origin of the company we choose to research. And we was given
a task to choose two company, which is Brick and Mortar Company and Online
Company to make a comparison between their product and price.
The company I choose for brick and mortar is netflix while company for offline
business is Golden Screen Cinema (GSC). I have tried to cover the price and product
company and brief history of the company, and objectives of the company. This brief
history and other sub heading under company background is compulsory to be
understood and researched well as they form the basis for marketing plan of the
company.
COMPANY BACKGROUND (BRICK AND MORTAR)

Company Background (Golden Screen Cinema)

Golden Screen Cinemas Sdn Bhd (GSC) is the largest cinema exhibitor in
Malaysia with over 41% market share, is a wholly-owned subsidiary of PPB Group (a
member of the Kuok Group). The GSC Group operates a total of 351 screens at 36
locations throughout Malaysia. The states with GSC are Johor (1), Kedah (2), Kuala
Lumpur (8), Melaka (2), Negeri Sembilan (2), Pahang (3), Penang (3), Perak (1),
Putrajaya (2), Sabah (2), Sarawak (2) and Selangor (8).. In Malaysia, the Group
operates a total of 344 screens across 36 locations in Malaysia, while in Vietnam it
manages 89 screens in 14 locations through a partnership with Galaxy Studio.
Aspiring to be a regional cinema and content operator that delivers enriching
cinema experiences, GSC manages the largest multiplex in Southeast Asia is GSC
Mid Valley Megamall has 21 screen cinemas and also has 2763 seats and offers a
multitude of innovative and high-quality offerings at its theatres nationwide. This
includes THX-certified halls, multi-dimensional Dolby Atmos surround sound,
D-BOX motion seats, and immersive 4DX technology, all of which has been expertly
engineered and refined to the highest cinematic standards. Other than that, the biggest
screen on the other hand is located Johor, which is the Paradigm Mall. It has features
of THX, DOLBY ATMOS, MAXX, 4DX, Full Laser Projection and Premiere Class.
The main objective is to cater to the ever growing sophistication of the movie
going audience by providing an alternative programming in the form of
award-winning non-mainstream films in all languages.
COMPANY BACKGROUND (ONLINE)

COMPANY BACKGROUND (NETFLIX)

Netflix is the world's leading internet entertainment service with over 148 million paid
memberships in over 190 countries enjoying TV series, documentaries and feature films across a
wide variety of genres and languages. Members can watch as much as they want, anytime,
anywhere, on any internet-connected screen. Members can play, pause and resume watching, all
without commercials or commitments.

Netflix Timeline

16'-
97'-01' 02'-07' 08'-11' 12'-15'
present
2002 - netflix 2008 - stream on 2012 - available 2016 -available
1997 - founded
makes its initial the xbox in europe, uk, worldwide. netflix
by reed hastings ireland
public offering 360 ,blu-ray disc launches in 130
and marc
(ipo on nasdaq players and tv countries bringing
randolph
under the3 ticker set-top boxes. 2013 - netflix
their global
launched its first
1998 - launches .
“nflx” with
2009 - stream on slate of original
entertainment
the first dvd 600,000 service to 190
1 the ps3, internet programming
rental and sales members in the total countries
connected tvs and
site, netflix.com. us.) 2014 - launched around the world.
other internet
1999 - unlimited
P
2005 - the connected in 6 countries in
2017 - wins first
Europe. First
dvd rentals for numberR of netflix devices. oscar. netflix hits
internet tv
one low monthly members Orises 100 million
2010 - available on network.
price. to 4.2 members
D apple ipad, iphone
2015 - launches globally.
2000 -introduces 2007 - and ipod touch,
U
introduces the nintendo wii, in australia, new
2018 - netflix wins
a personalized zealand and
movie C which
streaming, and other internet oscar for best
connected japan, across
recommendation allows members
T documentary
devices. netflix europe in italy,
system, which to instantly feature for icarus.
launches its spain and
uses netflix watch television netflix announces
service in canada. portugal. the first
members’ (
shows and
netflix original
overall deals with
ratings to movies on their ryan murphy,
personal
B 2011 - netflix feature film
kenya barris,
accurately "beasts of no
R launches
predict choices computer.million jason bateman.
throughout latin nation" is
for all netflix I netflix’s films "the
america and the released
members kissing booth"
caribbean.
one of netflix’s
most-watched
movies of all time
 PRODUCT (BRICK AND MORTAR)
GOLDEN SCREEN CINEMA

3.1.1 What is product?

We can define product as anything that can be offered market for attention, acquisition,
use or consumption that might satisfy a want or need of a person. Products are a key element
in the overall market offering. Marketing mix planning begins with building an offering that
brings value target customers. This offering becomes the basis on which the company builds
profitable customer relationships.
Products for Golden Screen Cinemas (GSC) has a different services than other company
cinema in Malaysia. GSC provides more than 10 types of cinema around Malaysia. Such as :-
i) GSC Maxx is the largest 2D & 3D digital hall
in Malaysia. GSC Maxx incorporates dual
digital projectors to gain the most optimal
brightness for a large screen of this size.
ii) GSC Maxx incorporates active polarized 3D
system with 3D Tech active glasses.
 GSC MAXX

i) PlayPlus is a new sub-brand for Golden Screen

Cinemas, specially crafted to meet the needs of
families and children.
ii) More than just a hall or theatre for kids and
young adults, PlayPlus is built to entertain,
empower, and inspire audiences through
 PLAY PLUS edutainment.

i) Provide the largest number of multisensory

signature effects industry-wide. With over
different kinds of signature effects, 4DX
creates the most outstanding environment for
movies.

i)
 4DX ii)
iii)
i) First cinema to offer a Gold Class auditorium
with an attached lounge and toilets. The Gold
Class hall offers an even better service that
includes wide and comfortable reclining seats
and a table for every two seats with a service
 GOLD CLASS call button.
i)
 i) Malaysia's first boutique cinema features two
luxurious Gold Class auditoriums and five
spacious full twin-seating Premiere Class
auditoriums. Three F&B outlets complement
this cinema - Cafe Caro, Dessert Bar and
 GSC SIGNATURE Paradiso, a semi-fine dining restaurant offering
Western and Asian Cuisine.

ii) D-BOX’s technology is leading edge. After

sound and image, D-BOX is the natural
evolution of cinema. Much like a movie
soundtrack, motion effects are created
frame-by-frame by their Motion Designers in
 D-BOX their California Studio creating the unique
patented D-BOX Motion Code.

i) The Dolby Atmos is the most significant

development in cinema audio since surround
sound, taking a unique layered approach to
sound design. It redefines the cinema
experience by offering content creators new
 DOLBY ATMOS
ways to tell their stories.

i) THX defines quality and performance for the

world’s premiere movie theaters. Not to be
confused with the surround sound technologies
from Dolby® Laboratories and DTS®, THX
Certified Cinemas provide standards and best
practices for architectural design, acoustics,
 THX
sound isolation and audio-visual equipment
performance.

i) GSC laser projection halls are now using

cinema laser projector that brings brilliant
brightness levels and cutting-edge image quality
to the screens,
.

 LASER PROJECT HALL

Marketing strategy
Have 4 major steps in designing a customer value-driven marketing
strategy

Select Customers to serve Decide on a value proposition

SEGMENTATION DIFFERENTIATION

GSC dividing a market into distinct GSC involve actually differentiating

groups of buyers who have different
needs and charecteristics. GSC
providing cinema PlayPlus Special for
kids
TARGETING
GSC has more than 10 features of
cinema for market segments to
enter. Such as Gold Class, GSC Lite,
D-Box and many.
the firm's market offering to create
superior customer value.
CREATE VALUE
FOR TARGETED
CUSTOMERS
POSITIONING
GSC arranging for a market offering
to occupy a clear, distinctive and
desirable place relative to
competing products in the minds of
target consumers.

Product Life-Cycle (PLC) Strategies

Product life cycle (PLC) is the course of a products sales and profits over its lifetime.
It have five distinct stages that is product development, introduction, growth, maturity
and decline.
a) Product development - begins when Golden Screen Cinema finds and develops
a new-product idea. During this product development, the sales are zero because
GSC is still in process and the company investment costs mount.
b) Introduction – In this stage, sales grow slowly in the market and profits are
minimal. On 1987 through hard work and an enterprising spirit GSC was founded
as Golden Communications Circuit before the name change to Golden Screen
Cinema.
c) Growth - is a period of rapid market acceptances and increasing profits. IN this
stage GSC try to generate selective demand in the face increasing competition
that occurs during the growth stage of the product life cycle. GSC offers new
features such as Laser Project Hall, Dolby Atmos and so on.
d) Maturity - A product’s sales growth will slow down, and it will enter the
maturity stage. This maturity stage normally lasts longer than the previous stages,
and it poses strong challenges to marketing management. The competitors of
GSC is the Coliseum Theatre. The first cinema in Malaysia. On 2012, Lotus Five
Star reopened the cinema with two digital halls. Another competitors of GSC is
TGV Cinema, Cathay Cinema and also MBO Cinemas
e) Decline - is the period when the sales is drop down and the profits is also drop
down. This is happen because there is another product, which is more attractive
than before and a consumer tend to buy a new product. Golden Screen Cinema is
not in this stage.
 3.2 PRODUCT (OFFLINE)
NETFLIX
Netflix provides a service that begins when Netflix sources entertainment content
from movies and television studios, and continues as Netflix optimizes that content
for viewing, creates unique and personalized interfaces for every single subscriber,
and provides a seamless viewing experienceNetflix's video on demand streaming
service, formerly branded as Watch Now, allows subscribers to stream television
series and films via the Netflix website on personal computers, or the Netflix software
on a variety of supported platforms, including smartphones and tablets, digital media
players, video game consoles and smart TVs. Netflix have 2 categories which is for
kids and for adult.

Netflix for kids

Netflix for adult

Marketing strategy
Have 4 major steps in designing a customer value-driven marketing strategy

Select Customers to serve Decide on a value proposition

SEGMENTATION DIFFERENTIATION

Netflix dividing a market into distinct Netflix involve actually

groups of buyers who have different
needs and charecteristics. Example
Netflix providing cartoon movie for
kids.
TARGETING
Netflix has more than 100 movies
for market segments to enter. Only
in Netflix can watch that movies.
The best movies in Netflix is All the
boy’s I loved before and Bird Box.
differentiating the firm's market
offering to create superior
CREATE VALUE customer value.
FOR TARGETED
CUSTOMERS
POSITIONING
Netflix arranging for a market
offering to occupy a clear,
distinctive and desirable place
relative to competing products in
the minds of target consumers.

Product Life-Cycle (PLC) Strategies

Product life cycle (PLC) is the course of a products sales and profits over its lifetime.
It have five distinct stages that is product development, introduction, growth, maturity
and decline.
a) Product development - begins when Netflix finds and develops a new-product
idea. During this product development, the sales are zero because Netflix is still
in process and the company investment costs mount.
b) Introduction – In this stage, sales grow slowly in the market and profits are
minimal. Netflix has been leading the way for digital content since 1997
Netflix is the world's leading internet entertainment service with over 148 million
paid memberships in over 190 countries enjoying TV series, documentaries and
feature films across a wide variety of genres and languages.
c) Growth - is a period of rapid market acceptances and increasing profits. In this
stage Netflix try to generate selective demand in the face increasing competition
that occurs during the growth stage of the product life cycle. Netflix offers new
genre such as action crime, horror, sport and so on.
d) Maturity - A product’s sales growth will slow down, and it will enter the
maturity stage. This maturity stage normally lasts longer than the previous stages,
and it poses strong challenges to marketing management. The competitors of
Netflix is Viu provides Asian dramas, variety programs, anime and entertainment
news. Iflix shows movies and dramas from Hollywood Hong Kong, Seoul,
Shanghai, Thailand and Tokyo.
e) Decline - is the period when the sales is drop down and the profits is also drop
down. This is happen because there is another product, which is more attractive
than before and a consumer tend to buy a new product. Netflix still has not reach
this stage.
 4.2 PRICE (BRICK AND MORTAR)
GOLDEN SCREEN CINEMA

What is price?
Price is the amount of money charged for a product or service. In other meaning the
sum of the values that customers exchange for the benefits or having or using the
product or service. Price is the only elements in the marketing mix that produce
revenue while all other elements represent costs. Price is also one of the most flexible
marketing mix elements.
Every feature and film at GSC cinema have difference in price. And the price for new
film and old film also different. GSC also provide the best price for foods and
beverages.

Chicken wing RM16.50 Combo Hot Dog RM6.90

Price Adjustment Strategies
Companies usually adjust their basic prices to account for various customer
differences and changing situations.
DISCOUNT AND ALLOWANCE PRICING
For GSC they will have their promotional pricing which is temporarily pricing
products below the list price and sometimes even below cost to increase short-run
sales. For example, GSC offers discounts for students who have student ID cards.
Student must buy ticket before 6p.m to get the discount price. And GSC also provide
discount price on Wednesday. They also offer the member card so they can use the
card and get the point to redeem.

Student price Discount price on Wednesday

 4.2 PRICE (ONLINE)
NETFLIX

Netflix provide 4 plan. Which is plan for a month for mobile, basic, standard, and
premium. The cheapest plan for Netflix is plan Mobile. This plan can be only using
on 1 mobile phone only. And HD is not available in this plan. But the expensive plan
in Netflix is premium. This plan can be open using more than 3 phone. And also can
open on laptop and TV. Netflix also give people to pay buy weekly or monthly.
Product Mix Pricing Strategies
For Netflix the product mix pricing situation is product bundle pricing. Seller often
combine several product and offer the bundle at a reduced price. For example they
sell their collections in bundles which costs from RM17 for a month.
Plan for a month

Plan for a week

 CONCLUSION

In conclusion both product have the different way of producing product which is
GSC is about to shows the latest movies from selected countries. But netflix shows
only their own films and some movies that are not from Netflix. Other than that the
way GSC promote their movies from buying a ticket at one time for one movie.
Meanwhile Netflix promote their movies through monthly or weekly for unlimited
movies and tv shows.