Business Plan of Cinema Booking App in Indonesia

EXECUTIVE SUMMARY

The business idea is to introduce an application which can offer services to customers on their purchase of cinema tickets. With the introduced application it will allow customers to purchase the cinema tickets from any cinema that they prefer without having to face the hassle of standing in long queues. The business will also partner with the cinemas for providing abundant choices to customers about choosing the cinema that they prefer the most. This report is based on the introduction to cinema booking App in the Indonesian cinema industry. The report highlight the international political environment of Indonesia that can affect the progress of the business in the country. It further highlight the expansion planning of the business highlighting its 4P’s and marketing strategy.

Brief background of business

Considering the rapid increase in the online sales and mobile phones, online booking and ticketing is becoming common across the world. It helps people to be saved from standing in long queues which further increase their level of engagement towards an organization. The aim of this report is to introduce the business plan of an online booking application. The business idea is to introduce an application which can offer services to customers on their purchase of cinema tickets. With the introduced application it will allow customers to purchase the cinema tickets from any cinema that they prefer without having to face the hassle of standing in long queues. The business will also partner with the cinemas for providing abundant choices to customers about choosing the cinema that they prefer the most. The business will help in reducing the need for people to stand in long queues and wait for their turn to get the cinema tickets which can be a turning point for many consumers especially those who are busy or old aged.

Revenue of Indonesia film industry: (Statista, 2023)

The business is being introduced in Indonesia to increase the sales and revenue of the business by expanding internationally and enhancing the customers’ base of the company. The business will target the Indonesian cinema industry. The Indonesian film industry has been experiencing a rise in recent years where the production of films is increasing with growing audiences. Revenue in the Cinema Tickets market is projected to reach US$131.80m in 2023. Revenue is expected to show an annual growth rate of 6.52%, resulting in a projected market volume of US$169.70m by 2027 (Statista, 2023). Hence, it will provide an opportunity to increase the sales and revenue of the business.

International economics

Indonesia is experiencing a growing cinema industry. In 2019, the country’s cinema audience was over 52 million. The Indonesian film industry released 230 films in 2019. As of 2019, Indonesia has about 2,000 screens and is expected to reach 3,000 screens by 2020 (Cinema of Indonesia, 2023). Considering the statistics an online booking platform can help in tapping into the large market. There is a substantial potential for generating revenue especially considering the major cities of Indonesia (Ulum et al., 2021). Additionally, the online ticket booking platform will be convenient for users as it will save time and effort of customers and enhance their experience with the cinema industry.

However, there are also certain risks associated with the business. It is technically challenging to maintain a reliable and user-friendly app and save the personal data and privacy of customers. The business will have to invest significantly in increasing cyber security and protecting customers’ data (Mangku et al., 2021). Moreover, in Indonesia with the development in the film industry, there might be already established players in the industry, the business will have to face competition in acquiring customers and developing trust especially while being an international business idea.

Economic systems

Indonesia has a mixed economy which is based on a combination of elements that is capitalism and socialism (Wijaya and Ali, 2021). The government plays a significant role in setting rules and regulations in the entertainment industry which can create barriers for the business to enter in the market (Wijaya and Ali, 2021). Indonesia has made significant effort in liberalizing its economy which has provided an opportunity of foreign investment. To ensure that the business is sustainable and viable, it will be made sure that the business is providing promotional offers to customers such as buy one and get one ticket at half price and other bundle offers. Considering the rising inflation across the world, it will help in attracting customers successfully to the cinema industry in Indonesia.

The main challenge that the business may face is related to maintaining cyber security for protecting the data of employees and customers in the business (Amelia et al., 2021). The business will have to implement a high level of data security to ensure that the data of customers and employees are protected by cyber security.

Planning for overseas expansion

The business will enter the market through joint ventures. Joint venture will enable the partners in this business to share the loss equally and it will provide an opportunity to understand the needs and demands of locals of Indonesia (Nippa and Reuer, 2019). However, in joint ventures a person can not make the decision instead it has to be accepted by everyone which can lengthen the decision making process. The business will be introduced to the target customers through social media platforms such as Facebook and Instagram (Leonard et al., 2020). Freight forwarders can be beneficial in the business as it can help in negotiating favorable rates with the other businesses considering their relationship with the local cinema industry of Indonesia. It can help in saving the business cost (Huang et al., 2019). There are various taxation laws that can affect the prices of the tickets of Cinema introduced by the business in Indonesia. The corporate income tax, value added tax as well as withholding tax can increase the prices of tickets (Wijaya and Ali, 2021).

International marketing campaign

The international marketing campaign will be based on social media platforms such as Facebook and Instagram. The business will use videos and reels to explain about the application to customers. The prices of the tickets will be kept in collaboration with the cinemas which can also help in attracting the target customers. The marketing campaign will be based on attracting students, youngsters as well as middle aged people who have interest in watching movies in cinemas in Indonesia.

Financial commitments

For managing the business, I would hire someone who has technical skills related to online apps. During the first year of hiring it is estimated that it would cost me $ 30,000 during the first year. The most important document would be a contract that would be signed during the joint venture to ensure that the venture was established on mutual terms and agreements. While fund handling and record keeping it will be made sure to maintain transparency in all the financial data. It will be made sure that the financial transactions are being recorded and can be audited by both the parties involved in the Joint business venture.

Conclusion

From the above analysis it can be concluded that the business will enter the Indonesian market through joint ventures to gain more understanding about the needs and demands of local customers. The business will be introduced through social media platforms for attracting a large audience. The prices of the tickets will be kept affordable. The most important document will be contract of joint venture to ensure that both the partners entered in the contract on mutual terms and conditions.

References

Amelia, T.N., Thoyib, A., Irianto, G. and Rofiq, A., 2021. Tech Start-up Incubation Program: Business Model Evaluation on Government Based Incubator in Indonesia. TEM Journal, 10(1).

Cinema of Indonesia, 2023

Cinema Of Indonesia: Most Up-to-Date Encyclopedia, News & Reviews (academic-accelerator.com)

Huang, S.T., Bulut, E. and Duru, O., 2019. Service quality evaluation of international freight forwarders: an empirical research in East Asia. Journal of Shipping and Trade, 4, pp.1-16.

Leonard, T., Pakpahan, E.F., Heriyati, L.K. and Handayani, I.G.A.K.R., 2020. Legal review of share ownership in a joint venture company. International Journal of Innovation, Creativity and Change, 11(8), pp.332-45.

Mangku, D.G.S., Yuliartini, N.P.R., Suastika, I.N. and Wirawan, I.G.M.A.S., 2021. The Personal Data Protection of Internet Users in Indonesia. Journal of Southwest Jiaotong University, 56(1).

Nippa, M. and Reuer, J.J., 2019. On the future of international joint venture research. Journal of International Business Studies, 50, pp.555-597.

Ulum, M.B., Jannah, F. and Nadhiyah, F., 2021. Film Industry as Part of Global Creative Industry: Learning from Indonesia. TRILOGI: Jurnal Ilmu Teknologi, Kesehatan, dan Humaniora, 2(3), pp.220-227.

Wijaya, M.P.H. and Ali, M.Z., 2021. Legislation Impediments in Reorganising Government Bodies in Indonesia. BESTUUR, 9(1), pp.1-12.