brand management - pvr cinemas by rajat jhingan

8/4/2019 Brand Management - PVR Cinemas by Rajat Jhingan

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PVR Cinemas


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INTRODUCTION

The magical word in cinemas today is - multiplex.

PVR Limited (PVR) is a leading, premium multiplex cinemaexhibition company with a growing presence across variousverticals of the lifestyle entertainment domain.

Belongs to the film exhibition industry. Film exhibition is keyinterface between the Film Audience and the Movie content.

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THE INDIAN EXHIBITION INDUSTRY

According to the - KPMG report domestic theatrical revenuescontributes 57% of the total Rs59bn film industry revenuesand are expected to grow at 17%.

Overall, the Indian film industry is expected to grow at 16%

CAGR it is expected to reach Rs143bn in 2010.

Extreme paucity: A UNESCO study estimates that while Indiacurrently has 12,900 cinemas, around 20,000 more cinemasare required to meet the increasing demand for film

entertainment.

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An analysis of drivers on the supply side: growth in film industry

improving real estate supply, and

favourable tax exemptions.

An analysis of drivers on the demand side:

Favorable demographic changes

An increase in disposable income in the hands of ever-expanding Indian middle class

India is one of the fastest growing economies in the world High quality of creative and technical talent pool

Indian consumers willing to spent more on Entertainment

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PVR CINEMAS

Indias largest cinema chain. Started in the year 1997.

101 screens across the country.

First to launch Indias biggest 11 screen multiplex PVRBangalore.

First to receive institutional funding in the cinema industryfrom ICICI Venture.

First to introduce THX approved three way surround soundsystem with real life sound effects and projection facility with

latest Xenon based technology. PVR Pictures made its production debut in December 2007

with Taare Zameen Par, a co-production with Aamir KhanProductions Ltd. Distributed by PVR Pictures.

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Corporate structure of PVR Limited

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PVR AS A BRAND

Brand synonymous with quality.

PVR has successfully assimilated the Standard operatingbusiness and operational practices of Village Roadshow andset new standards in the quality of exhibition in India.

Brought in a whole new paradigm shift to cinema viewingexperience, high class seating, state of the art screens andaudio visual systems.

By attracting a record number of urban middle & upperincome consumers to the complex, major national &international brands - McDonalds, TGIF, Archies, Benetton,Pizza Hut, Nike, Reebok, Adidas - have opened their outletsin the multiplexes, making PVR the destination for completefamily entertainment.

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MARKET SEGMENTATION

PVR is a Concentrated Market because they only cater to the

premium movie-going audience

PVR Cinemas has approx. 22 million movie goers per month.

Consumer Demographic Segmentation

Age: 61% between 18 and 49

Gender: 47% Males / 53% Female

Income: 61% have income over 50K Education: 55% of adult movie-going audience has

attended/graduated college. Of these adults, 37% have

college degrees or higher.

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Consumer Psychographic Segmentation: PVR MovieGoers are people with high resources and can be classified

as:

Experiencerswho seek variety and entertainment.

PVR Movie Buffs

Consumer Behavioral Segmentation

Usage rate:1/3 of the population attends the movies

one or more times per month.

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DISTRIBUTION STRUCTURE

PVR has ventured into the business of film distribution and setup PVR Pictures, a fully owned subsidiary of PVR Ltd.

PVR Pictures has also signed a 50:50 joint venture with RamGopal Verma's - K Sera Sera's production company 'Factory.

PVR/Factory has exclusive distribution rights in Delhi, UttarPradesh and Uttranchal.

Tie up with Oxigen Services India Pvt. Ltd.

book movie tickets through Oxigens pan India retailnetwork of approximately 5000 digital web vendors

walk into any Oxigen outlet and book tickets for PVRcinemas

PVR tickets directly on the Oxicash website.

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Consumers Information and the

consumer insights

Purchasers

0

2

4

6

8

10

1214

16

Response in

numbers

2-4 times a

month

Once a month Once in 3

months

Once a year

Months

How often do you visit Multiplexes?

Majority, i.e, 20 out of 35 respondents visit multiplexed once amonth, followed by 15 people who are more frequent and theyvisit the multiplexes 2-4 times in a month.

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Use and usage behavior

What is your monthly expenditure on movies?

Less than 200

200-400

400-1000

1000 and above

Whcih show do you prefer to watch a movie?

Morning

Matinee

Evening

Night

Do you buy the food and the refreshments sold inside the multiplex?

Yes

No

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end-consumer's needs, desires, preferences

0

5

10

15

20

25

Response in

numbers

Wave Fun Cinemas PVR Inox

Multiplex

Which Multiplex do you prefer to visit?

PVR came out to bethe most preferredmultiplex asselected by 25 outof 30 respondents

What is the best and unique feature of the multiplex selected by

you?

Seating, Projecting, Screensize, picture and sound quality

Service

Food Quality

Ticket pricing

Ease of booking tickets.

Seating, Projecting,Screen size, pictureand sound quality,and ease of bookingtickets is the mostimportant parameter

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Perceived branding

0

2

4

6

8

10

12

14

16

18

20

Excellent Good Satisfactory Poor

How are the seating, screen and sound systems?

0

5

10

15

20

Excellent Good Satisfactory Poor

What are the standards of food and refreshments available Inside?

Majority perceiveit to be good,followed by somewho perceiveexcellent

20 Out of 35respondents feel thatthe food qualityavailable inside themultiplexes is good,while 10 respondentsfeel that the foodquality is poor.

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Brand attribute:

variable pricing

What are the rates at which the tickets are available for the show

selected by you?

0

5

10

15

20

25

50-80 90-150 150-200 200 and above

What makes a multiplex better source of entertainment?

0

5

10

15

20

25

30

Ambience Food Court Shopping Mall Crowd

Added Value

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CONCLUSION

PVR is best among the competitors

Not driven by promotion but through word of mouth.

First mover advantage.

People come for the complete experience and not just themovie.

Quality of the food and prices need to be improved.

Seating and projection are the most important criteria for the

selection of any multiplex and not just the price.

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RECOMMENDATIONS

Quality and price of the food need to be improved.

Constant innovation required because the competition isincreasing.

Screening of matches during IPL final stages.

Join hands with other competitors to start an anti piracy drive.

Very strong scope in other forms of Entertainment likeBowling alley, Gaming and Ice Skating Rink. So PVR shouldtry to accommodate these facilities in its zone.

Reintroduce the students discount concept to gain popularityamongst youth which forms a major chunk of its customers.

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THANK

YOU

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brand management - pvr cinemas by rajat jhingan

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