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ISTANA BUDAYA MARKETING OVERVIEW

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Page 1: Istana Budaya

ISTANA BUDAYA

MARKETING OVERVIEW

Page 2: Istana Budaya

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

Part A: Pre-trip Preparation

A. Company’s Background

Istana Budaya, or more commonly known as “The Palace of Culture” is the first

of its kind in Asia to be equipped with such state-of-the-art stage equipment which

branded itself Malaysia’s national theatre. Located nearby Tasik Titiwangsa, we made

our way to the site by our own chartered bus. This high-flying landmark, or said to be the

icon of Malaysia is in the Top Ten list of most sophisticated theatres in the world and

managed to be standing on level par with the Royal Albert Hall of London. “Certainly a

world-class theatre with an individual character, the elegant Istana Budaya has been

proclaimed as one of Malaysia's celebrated landmarks," quoted by virtualmalaysia.com.

It’s marvelous distinctive frontage and displayed features consumed roughly RM 210

million in cost that spanned over 5.44ha with a floor space of 21,000 sq/m. The pioneer

behind such typical design was Muhammad Kamar Ya'akub. This heritage theatre

provides stages for local and foreign cultural performances.

The structural design of the building is remarkable which comprise various blend

of Malay and other cultures. The fact that it is situated nearby Tasik Titiwangsa, the

strategic location made Istana Budaya even more attractive. The dazzling design

somehow attracted our attention that we soon realized the inspiration for the design is a

traditional moon kite in flight. Everything from walls to floors and settings seem to be in

a perfect yet attractive state. The main building cultivates the form of the Sirih Junjung (a

traditional arrangement of betel leaves used during Malay weddings and welcoming

ceremonies). The building significantly reflects the nature and cultures of the country

such as the reflection of traditional Malay house design in the overall architecture.

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

The lobby’s decorative floor

The theatre is divided into three sections as determined by its functionality; the

serambi (lobby and foyer), rumah ibu (mother house) as the auditorium, and the rumah

dapur (kitchen) as the stage and rehearsal hall. The Malay traditions could be seen in the

overall design of the building whose roof resembles a traditional floral and leaf

arrangement. Based on the Malay architecural design, the layout of the building is closely

related to the verandah (serambi) for the lobby, the living room for the auditorium and

the kitchen for the stage and neighboring rehearsal area.

The interior design makes far-reaching use of Langkawi marble while the door

uses high-quality tropical wood which features hand-carved flower and leaf motifs. The

luxuriant carpets found in the foyer and lobby feature theme based on the cempaka flower

and the beringin tree (reminiscent of a traditional Mak Yong performance). The design

motif of the theatre’s interior is reflected by the Malaysian wau or kite where it could be

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

seen on the floors. The mesmerizing turquoise color of the roof and the intricate design of

the foyer managed to captivate the visitors’ breath once these features are spot on.

Though at times it is not playing host to any performance, Istana Budaya’s architecture

has intrigued experts and academics.

Hand-carved flowers on the high quality wooden doors

There are royal boxes on each side of the auditorium which reflect the Malay’s

house windows. The main entrance to the theatre imitates the Balairong Seri’s main hall

and is said to represent one of Malacca.  The auditorium itself could accommodate

around 1,412 people including 797 in the stalls on the first floor, 312 in the grand circle

on the second floor and 303 people in the upper circle. The orchestra pit itself could fit

around 98 people when it’s not in use. However, the disabled ones would not need to

worry about the lengthy stairs because Istana Budaya has wheelchair facilities, including

a ramp throughout the foyer, a lift installed with reachable buttons and a cozy

environment designated for the handicapped coupled with specified restrooms too.

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

The Panggung Sari hall

How To Get There

Istana Budaya is located at the premise of Jalan Tun Razak, along the busy road

where transportation could be seen around the area. The area is easily accessible with

public and private means of transportation. The parking space provided is wide enough

for all means of vehicle to be parked there. Although the roads are all jammed up, there’s

an alternative for us to reach this place by using the LRT train which is situated nearby.

The roundabout enables us to make necessary U-turn without having to drive till the other

end and free-parking system encourages more taxi and buses to ply around the area.

Buses such as Intrakota are located about 15 minutes from the overhead pedestrian bridge

which stops in front of the Tawakal Medical Centre along Jalan Pahang. The availability

of trains eases the burden of customers without having to be stuck in a jam. The nearest

station is a walking distance from Istana Budaya for about 15 minutes.

Part B: Detailed Trip Log Book

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

1. Perceptions

The moment Dr. Nabsiah Abdul Wahid; our Services Marketing lecturer,

announced that we were going for a trip in Kuala Lumpur, to be precise; Istana Budaya,

excitement filled the air where most of us never been to this place. Being labeled as the

icon of Malaysia, we sort of imagine how great the place is based on the information we

had gathered from Internet. As mentioned, we do not really have a clear picture of what

Istana Budaya is all about from its background to the awareness within the public. Of

course, we do not expect much from what they could offer due to the fact that we assume

Istana Budaya is just another boring venue with typical historic heritage.

Based on the information we had, the building was named “The Palace of

Culture” because it reflects the nostalgia of the Malay’s culture. Upon knowing such fact,

we assumed that Istana Budaya do not have anything to do with marketing and

advertising fields. The hall only acts as an attractive centre with beautiful designated

decoration to attract tourists’ attention, thus contributing to the development of

Malaysia’s tourism centre. We had qualms as to whether it has any marketing strategy or

products to be promoted because we do not see any products or marketers involved.

Thus, in order to clarify all of our doubts and curiosities, we had prepared

questions to be raised during the interview session. Among the questions to be asked are

as follows:

i) Istana Budaya is known for its heritage values and norms, but does it

includes marketing and promotional strategies?

ii) How do you relate Istana Budaya to service industry?

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

iii) What are the services provided by Istana Budaya which made itself

recognized as an service-oriented industry?

iv) How Istana Budaya managed to maintain such high maintenance costs

without actually selling products?

v) What are the strategy used in improving the employees’ retention and

reducing employees’ turnover rate?

vi) Does Istana Budaya gain its profit from the services provided or relying on

government’s subsidy?

vii) How is Istana Budaya going to raise public’s awareness regarding the

reality of the cultural aspects?

Besides, it was once branded as the “Home of Integrity” due to its richness in

multicultural values. For instance, Istana Budaya hosts shows like Simfonic Ochestra and

Tun Sambathan performances which reflects its objectives. With the explanation given by

Puan Putri from the Division of the Perhubungan Awam, we knew that Istana Budaya

was fully subsidized by the government. Istana Budaya was owned by Kementerian

Kebudayaan Keseniaan Dan Warisan. It was been established by our former Prime

Minister Tun Mahathir Mohammad. Besides, we were also educated on the employees’

attitudes and practices provided for them to maintain the level of services. They have 400

employees from all of the departments. During the interview session, we were brought

around the building despite time’s running out. However, we managed to take a glimpse

at the halls decorated with extensive yet attractive interior design. We were briefed on the

stages’ specialty, the capacity of each hall, the cultural norms associated with each

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

design, the maintenance strategy used in sustaining its competitive advantage and the

number of performances held every month which translates to the amount of revenue.

2. Evaluation

Our arrival was greeted by Puan Putri from the Division of the Perhubungan

Awam, and then we proceed to the interview hall with the rest of the groups. Once we

settled down, she began to play a video which features a 10 minutes presentation of

Istana Budaya. After the video session, we were granted the chance to raise some

questions. Pn. Putri managed to enlighten us with information we never knew where it

was understood that Istana Budaya can be categorized as service industry due to the fact

that it provide outstanding stages for cultural performance to be held. These world-class

stages tend to attract various performers from all over the world and thus contributed to

the profits for Istana Budaya. Given the information is realistic and accurate, we could

judge that Istana Budaya is not just merely an attraction centre but also tend to instill a

great sense of cultural heritage among the youth or teenagers nowadays. They had this

objective since the day it was built because cultural values seem to fade away. However

they had difficulties in promoting its objective because most of the people are not fully

aware or even notice what Istana Budaya is all about. Their advertising campaigns and

promotional skills do not achieve the target in reaching out to the public in a large scale.

Overall, Istana Budaya failed to educate youngsters about the true value of its traditional

heritage in a wide scale due to its ineffective exposure brought upon merely by

advertising and words from mouth. However, Istana Budaya did assist Malaysia in

attracting more foreigners into the country which boost the country’s economy status.

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3. Problem Statement

Istana Budaya has reached the point that is acts as an icon representing Malaysia

in a way that it contributes to the domestic market share. However, the objective in

creating a desire and interest in the cultural values of multiracial among youths tend to

backfire. Besides, Istana Budaya depends solely on the subsidies provided by the

government in order to survive in competitive market because the exposure of the

services provided is not at the highest order. The difficulties in penetrating into the global

market tend to prevent Istana Budaya from achieving a large economy of scale.

4. Positioning

High Service

Moderate

Service

Expensive

Istana Budaya

Industry Competitors

ya

Less Expensive

Royal Albert

Hall

Petronas Philharmonic

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Istana Budaya is one of the most established art centers in Malaysia with

outstanding services provided for stage performances. Based on a global scale, Istana

Budaya is rated below the Royal Albert Hall of London and Petronas Philharmonic. The

prices of the shows are basically charged at a reasonable rate compared to Petronas

Philharmonic and the services provided are not at the level comparable with Royal Albert

Hall. Thus, Istana Budaya sits between less expensive and moderate service category.

Istana Budaya did not suffer severely because the governments subsequently support the

development of its services with substantial amount of subsidy. This explains why Istana

Budaya can price its tickets at a low price compared to others,

5. The Russell Model of Affect

The Russell Model of Affect is used to better understand the emotional responses

towards the service environments which can be described in two dimension; pleasure and

arousal. According to the diagram above, Istana Budaya could be described as follows:

relaxing

sleepy

pleasantUnpleasant

distressing

boring

exciting

Arousing

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a) Exciting

The decorations throughout the building managed to attract our attention

which arouse our feelings towards the quality of the interior design

The high level of arousal coupled with high level of pleasure categorized

Istana Budaya into the excitement dimension (arousing)

b) Relaxing

The ambience and architecture of the hallway created a calm and pleasant

feeling among the visitors

However, the traditional experiences failed to excite the public motivation

which places Istana Budaya in the relaxing zone (high level of pleasure

but low level of arousal), pleasant zone

c) Boring

The briefing session was typically dull with no excitement installed to

arouse the audiences

Such low level of arousal and pleasure granted Istana Budaya in the boring

dimension (sleepy)

d) Distressing

The overall design of the building is similar throughout the hall

Such simulation is quite distressing particularly at times when we

experience the same kind of design from time to time

6. SWOT analysis

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

a) Strength

Istana Budaya’s strength focuses on its remarkable yet world-class stages which

can be altered in all sorts of directions according to the performers’ preferences. The

outstanding stages proved to be vital to the success in attracting more foreign cultural

performances across the world. Given the support by the government, Istana Budaya

managed to avoid such competition either locally or internationally. This strength

provides a base for Istana Budaya to succeed further in terms of promoting the cultural

values to the public, with one main objective; to protect the heritage of our late ancestors.

b) Weakness

Even though Istana Budaya has the full support of the government, it still lacks

superior quality in both the services provided and the equipments used. Some

performances cannot be held due to the absent of some advance equipment or barely

suited for a foreign play. The ineffective promotional campaigns used to educate the

public tend to halt the progress of Istana Budaya.

c) Opportunity

However, Istana Budaya does have the edge to develop as a world-class provider

in terms of stages. The excellence of the stage enables Istana Budaya to attract more

foreign shows which will increase the exchange currency rate and established a platform

for it to penetrate into the global market in the future. Substantial amount of subsidy

provided by the government supports the future plan of Istana Budaya in reaching out to

a larger target segment.

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d) Threat

As mentioned before, Istana Budaya rarely experience direct competition in its

domestic market. This is due to the full ownership under the government which protects

the interest of Istana Budaya in seeking profits without the expense of social constraints.

However, indirect competitors such as Petronas Philharmonic posed little threat to Istana

Budaya where foreigners prefer to rent the services provided by Petronas Philharmonic

due to its superiority in every aspect. The risk of losing potential customers triggered the

loss of potential profits.

7. Marketing Mix (4Ps)

a) Products

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

The main product of Istana Budaya is the stage for performances. The superior

stage is made of quality materials which guarantee the reliability of the value created.

Here are the features:

Wagons System

TYPE QTY AREA

Side Stage Equalisers & Underwagon Equalisers

4  32 sq.m

Rear Stage Equalisers 3 32 sq.m

Rear Stage Underwagon Equalisers 2  128 sq.m

Side Wagon 4  64 sq.m

Rear Stage with Tilting Top Floor 1  256 sq.m

Flying Bars & Point Hoists

FLYING BARS QTY & CAPACITY

Total 61 bars

Length 20.0 m/bar

Maximum load 1000 kg/bar

Maximum used (moving) 10 bars per combination

POINT HOISTS QTY & CAPACITY

Total 145 hoists

FOH (forestage) 24 hoists

Maximum Load 200 kg/hoists

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Maximum Used (moving) 25 hoists per combination

Stage Gallery

GALLERY DATA

Total 4 levels

Gallery (1) Control room

Protrude 1.5 m

Curtain

CURTAIN  DATA

Main 2 types of movements

Type (1) Up & Down

Type (2) Left & Right

Colour Green

Controlled by button SL (Prompt Side)

b) Promotion

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Istana Budaya uses promotional campaigns and advertising firms in order to

promote its services through performances held every month. Billboards, media

advertising, booklets and others are the ways practiced in nurturing the public of the

importance of cultural heritage. The official website helps to promote Istana Budaya in

the eyes of foreigners which are accessible throughout the whole world. The user-friendly

website helps in providing a clear picture of what is to be expected.

c) Physical Environment

Physical environment is very essential to a service oriented business because

services are perishable and intangible. Thus it is hard to evaluate services and to

distinguish them among the competitors. Thus, it is difficult to assess important feature in

advance of use and to evaluate the quality of the performances. Basically customer will

perceive physical environment as a cue to evaluate the services. Physical environment

here involves the appearance of building, size and color of building, architectural style,

wall decoration and lighting.

d) Price

The pricing strategy includes the low and affordable level of prices. The prices

vary according to the type of performance and depend largely on the demand for that

particular show. The stage rental fees are as follows; RM 15 000 per night, RM 2 250 per

day for rehearsal and RM 15 000 per additional performance. These fees include

technical equipments, labor force and customer services.

CONCLUSION

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As a service provider, Istana Budaya should evaluate

its target market more deeply in order to identify the target market preferences and

behaviors towards certain stimuli. We do believe that Istana Budaya should implement

strategies which will trigger the targeted segment’s interests before educating them more

on the values and traditions of multiracial cultures. Given the outstanding stage, Istana

Budaya cannot depend solely on the product which they offer. Based on the marketing

mix strategy, the best product will not be enough to bring success to a firm without

emphasizing much on the other marketing aspects. Thus, a world-class stage is not

enough to attract people without having a proper promotion or people dimensions to

support the core services. Pricing strategy reflects the willingness of customers to

purchase such services and thus must be evaluated thoroughly.

In a nutshell, Istana Budaya serves as an icon of Malaysia in promoting its

multiracial population and in the meantime generating profits for further plans. Overall,

we evaluated that Istana Budaya will have the opportunity to shine in the global market in

years to come. However, massive improvement in various dimensions needed to be

carried out in order to achieve such objective.

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Appendix

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REFERENCES

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

CJCM, (26 March, 2007). Tune Hotels: Kuala Lumpur’s latest affordable, cheapest, no

frills hotel, (http://www.kualalumpurishome.com)

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The Star

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(http://biz.thestar.com.my)

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Thailand, Philippines & Singapore, (malaysiahotelnews.blogspot.com)

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ISTANA BUDAYA MARKETING OVERVIEW MOHD RIZAL KISMATH BATCHA 2007

Zeithaml, V. A; Berry, L. L; & Parasuraman, A (1996). The Behavioral Consequences of

Service Quality. Journal of Marketing, 60, 31-46.

Lovelock, C. H (1992). Cultivating the Flower of Service: New Ways of looking at Core

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(http://www.sun2surf.com)

Wirtz (2007), SERVICE MARKETING People, Technology, Strategy: 6th edition.

(Pearson Education)

http://www.istanabudaya.gov.my/

http://www.virtualmalaysia.com/destination/istana%20budaya.html

http://www.pmo.gov.my

www.ticket2u.biz

[email protected]

http://www.istanabudaya.gov.my

http://www.cybermelayu.com

Kementerian kebudayaan , Keseniaan dan Warisan (KEKWA)

[email protected]

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