Blue Ocean Strategy ( Chapter 5 ) Reach Beyond Existing Demand – 3D Sex Zen

In this chapter, Professor W. Chan Kim introduces the way to maximize the size of the blue ocean. In order to achieve this result, you need to focus on the existing customer. Besides, you need to drive for finer segmentation to accommodate buyer differences. The managers should lead to finer segmentation and greater tailoring of offerings to better meet customer preferences. Those customers are non customers segment and they can create huge demand and sales volume to the business. Professor W. Chan Kim indicates the managers should study the buyers’ behavior. File up those non customers into 3 different types. Aggregate new demand and unlock those 3 type non customers.

Recently, Hong Kong cinemas are showing the first 3D erotic costume dram film, 3D Sex and Zen: Extreme Ecstasy. This is the first IMAX 3D erotic film in the world and it is showing in Hong Kong, Taiwan, South Korea, Australia and New Zealand on 14 April 2011. This movie is produced by Stephen Shiu from One Dollar Production. He added 2 popular Japanese AV idols Saori Hara and Yukiko Suo. Besides, a Hong Kong actress Vonnie Lui is showing in nude during this movie. This movie is banned in China. Therefore, Stephen Shiu organized a group purchasing online buying method in China. Stephen Shiu offers a package with movie ticket, hotel room service and train ticket for the free traveling visitors in China. Mouse pat and tee shirt is selling as gift items in flower market in Chinese New Year period as a kind of promotion scheme. 
http://www.3dsexzen.com/

The first tier of non customers

This kind of non customer is the closest to your market space. They cannot purchase the items or service in their local area and searching for a way to purchase or find something better. For instance, the local citizen in China would like to see this 3D erotic movie. However, this movie is banned in Hong Kong. They wouldn’t like to watch this movie in VCD, DVD or download version. As they prefer to watch this movie in IMAX 3D version with 3D glasses. During the Chinese New Year period, the gift items of this movie were selling in flower market in Hong Kong. Thus the first tier non customers who traveled to Hong Kong and got the message of this 3D movie promotion message in February. Stephen Shiu organizes a group purchase online for those buyers. They can purchase online and travel to Hong Kong to watch this movie in holiday. Usually, the managers should think a solution to close the gap to gain the first tier.

The second tier of non customers

The second tier of non customers refuses to use the products or service from your industry. They can be either dislike your offerings or they cannot afford to purchase. For example, some mothers and girls in free traveling group are not interesting in watching this movie. However, they purchase the package of the service from travel agent which includes this movie entrance. They wouldn’t like to waste this opportunity or separate the whole group visitors. Then they would like to enjoy this movie rather than finding an outdoor activity for 128 minutes. Usually, the managers should sell it as a package or free gift in order to gain the second tier.

The third tier of non customers

The third tier of non customers in the farthest away from an industry’s exiting customers. They are from the non explored market space. Those non customers don’t know your products or services. Stephen Shiu carried promotions for this movie from last 2 years. He travels world wide and find the investors for this movie. He visited several cinemas in Asia Pacific, Europe and USA to pursue the investors to show in theater in the local areas. Some promotions were carried out when this movie was not filmed yet. In order to reach those market space. This movie will be added with different languages and subtitle. Usually, the managers should carry out tailor made production to reach the third tier. 

3D Sex and Zen: Extreme Ecstasy - Hong Kong trailer

3D肉蒲之極樂寶鑑預告片(IIB級版)

3D Sex and Zen: Boom or bust?

《3D肉蒲團》製作特輯

肉蒲團包戲院長播

Blue Ocean Strategy ( Chapter 2 ) Analytical Tools and Frameworks – High School Musical 3, Step Up 3D & Street Dance 3D

In this chapter, Professor W. Chan Kim introduces the strategy canvas. This is the diagnostic and action framework for building a compelling blue ocean strategy. You can evaluate the investment, factors, customers’ feedback and product features etc.

Today I choose 3 dancing movies which are High School Musical 3 (2008), Step Up 3D (2010) and Street Dance 3D (2010). These 3 movies are dancing movie with romance and courage for teenage audience. I plot up the principle factors and value curve to show the graphic depiction of 3 movies. 

High School Musical 3 (2008)

Budget	$11 million
Gross revenue	$252,909,177
Profit ratio	2299.1%

Step Up 3D (2010)

Budget	$30 million
Gross revenue	$159,152,693
Profit ratio	530.5%

Street Dance 3D (2010)

Budget	£1.5 million / $ 2.4 million
Gross revenue	£9,617,687
Profit ratio	641.1%

High School Musical 3 is the 3^rd and final installment of High School Musical Trilogy. This is the first chapter showing in cinema apart from TV channel. The total budget of this movie is $11 million. This movie was showing in 2008 and it was linked up with Nintendo NDS and Wii video games. This movie is focusing in high school stories with sport and dance. All the actors are singing and dancing as on the opera stage. It was distributed by Walt Disney Pictures. According to the result of profit ratio, it shows that the High School Musical series are all having successful outcome.

After showing the sensational 3D movie Avatar, Hollywood movies are tending to perform a set of series of 3D viewing in the cinema. In 2010, two dancing movies which are showing in 3D are Step Up 3D and Street Dance 3D. They have the similar story lines of HSM3. However, they would like to shift the strategic focus on 3D viewing. This kind of 3D motion performance can let the audience to have a vision of standing on the dancing floor. The audience with the 3D eyewear can let them to join the contest in the movie at the same time.

Professor W. Chan Kim indicates that to reconstruct the buyer value elements in crafting a new value curve, a new concept of framework which can be used to redefine a new the business model. It is the four actions framework. Reduce, Create, Raise and Eliminate.

Compare with HSM3, both of the movies won’t add sport factor and won’t combine with video games products. They eliminate these factors as they are not longer to compete on or a good value factor. They reduce the songs and romance in the stories. As these two movies are not from musical and these factors are increasing the cost with no gain. Courage and dance performance are added in order to perform a dancing show to the teenage audience. 3D viewing motion pictures are new buyer value which can create a new demand and experience to the audience for a dance movie.

The Eliminate – Reduce – Raise – Create Grid is the tool to create blue ocean strategy.

Eliminate Sport & video games products	Raise Courage & dance
Reduce Songs and romance	Create 3D motion picture

3 characteristics of a good strategy which are: focus, divergence and compelling tagline. Apply these 3 characteristics, the manager can as a guideline to redefine value curve. The movie producers are focusing on 3D, courage and dance components and diverges the sport, songs, romance and video games products. The strong compelling tagline is the 3D viewing effect. This clear message can bring the HSM3 and non HSMS fans come to join to see these 2 new 3D dancing movies. This good tagline must be short and clear. The audience can understand and attract them to have this experience which is does not showing in HSM3.

The managers should list up the Eliminate – Reduce – Raise – Create Grid clearly, they should pursue differentiation and low costs to break the value – cost trade off. They can focus the relative factors and eliminate the high cost factors. Ultimately they can find out the implicit assumptions of creating new elements. Finally, the managers should plot the strategy graph in a coherent strategy which they can easily to distinguish the strategy canvas. 


High School Musical 3: The Trailer 

Trailer For The New HSM3 Nintendo DS Game!


High School Musical 3 - Wii Trailer


Step Up 3D' Trailer HD


Step Up 3D "3D" Featurette



StreetDance - Official Teaser Trailer