A PROJECT REPORT

ON

SUBMITTED BY:

Name: Taniya Jain

Enroll No.: 12BSPHH011119

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Course: Marketing Manegement

Seat No.: 76 Sec: F

ACKNOWLEDGEMENTS

“Thanks giving seem to be the most Pleasant of all jobs, but it is difficult when one tries to put into words.”

I owe a great many thanks to a great many people who helped and supported me during my research for the project.

My deep sense of gratitude, to Prof. K.C. Prakash for his continued support and guidance. He has always lent a helping hand and been there when needed.

I also appreciate and would like to thank the helpful people at IBS Hyderabad who helped me knowingly and unknowingly in one way or the other.

At the end I would also like to thank ICFAI BUSINESS SCHOOL and my friends without whom this

Project would have been a distant reality.

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INDEX

S.NO. TOPIC PAGE NO.1 Introduction 4

2 Major Competitors 53 Market Share 64

4.14.24.3

Comparative Study ON SCALE OF 7 P’sPVRBig CinemasINOX

71113

55.15.25.3

Competitive AdvantagePVRBig CinemasINOX

141515

6 Recommendations 15

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1. INTORODUCTION

Priya Exhibitors Pvt. Ltd is a part of the diversified Bijli Group, which has interests in transport, finance and construction sectors all over India. After a downturn in the industry in late 80s when the onslaught of video wars as at its peak cinema rejuvenated with the latest international trends in cinema exhibition reached India’s shores swiftly with the arrival of satellite TV. The capitals cosmopolitan audience was becoming increasingly aware of the advanced cinematic technology that enhances the movie going experience and this had whetted their appetite for watching movies on the “big screen“. To cater to the increasingly sophisticated tastes of the audience Priya exhibitor Pvt. Ltd. totally refurbished the existing cinema in June 1991 including installation of a Dolby stereo sound system. They also gained exclusive rights to screen blockbusters from major distributors mainly Warner brothers, 20th century fox, united international pictures, small wonder etc.

Cinema had become the focal point for entertainment in the capital for both the young and old attracting over 30,000 patrons a week. In fact, “Speed” set a national box office world record of Rs.785000 in its first week of screening at PVR (the highest ever for an English film), which was remarkable considering the relatively low price of a cinema ticket in India. Buoyed by the overwhelming success of the cinema after upgrading, Priya exhibitors ltd took the next initial step for setting up the first multiplex in the country in a joint venture with Village Road show Ltd, Australia’s leading Entertainment Corporation.

PVR is a brand name synonymous with state-of-the-art cinema exhibition in India. PVR specializes in developing and operating state-of-the-art Multiplexes. PVR Cinemas are the leading cinemas in the country with an emphasis on design, 10 technology and service. Over the last three years, PVR has established itself as a very strong brand associated with movies, quality exhibition and youth-targeted promotions. The company was conceived as a Joint Venture between the Bijli family, headed by Mr. Ajjay Bijli as Indian Promoters and Village Road show Limited of Australia, one of the largest multiplex operators in the world with more than 1500 screens under operation.

PVR Firsts First to launch a multiplex in India - PVR Anupam Saket, Delhi First to launch India's biggest 11 screen multiplex - PVR, Bangalore First to bring premier movie viewing to India with the exclusive Europa Cinema and Lounge

at PVR Gurgaon First to introduce Gold Class Cinemas in India at PVR, Bangalore First to form a foreign joint venture with Village Road show, Australia First to receive institutional funding in the cinema industry – from ICICI Venture First to offer computerized & online ticketing

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First to accept credit cards in cinemas First to introduce mobile based information & ticketing service First to launch a loyalty program for movie-goers in India First to launch 'Movies First' - a monthly magazine that updates the movie lovers on the

latest happenings in Bollywood and Hollywood.

2. MAJOR COMPETITORS

PVR cinemas have the following key competitors:

Adlabs / Big cinemas - BIG Cinemas, a division of Reliance Media Works Limited, a member of the Reliance Group, is India’s largest cinema chain with about 516 screens spread across India, US and Malaysia. After pioneering the IMAX experience in India, it recently launched 3D and 6D technology and is the only cinema chain to screen films in all three formats. It is also launching the first megaplexes in the country.

Fun Cinemas - One of the premier cinema chains in India, Fun Cinemas has a Pan-India footprint covering 76 screens across 17 cities. It garners about 10% of market share among all multiplexes despite the huge growth in the category with numerous new players. What sets the company apart is its unique marketing focus of delivering ongoing value to its patrons. This value is delivered through many initiatives, most significant being its loyalty program – Fun Rewards. As much as 20% of the total footfall comes from the loyalty patrons making it the most successful and the largest loyalty program in the Indian cinema industry.

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INOX - INOX Leisure Limited is the diversification venture of the INOX Group into entertainment and is a subsidiary of Gujarat Flurochemicals Ltd. INOX Leisure's mission is to be the leader in the cinema exhibition industry, in every aspect right from the quality and choice of cinema to the varied services offered and eventually the highest market share. INOX currently operates 40 multiplexes and 154 screens in 26 cities making it a truly pan-Indian multiplex chain. Winner of the 'ICICI Entertainment Retailer of the Year' Award 2005, TAAL Multiplexer 2006 and Emerging Super brand of the year 2006 - 2007 Award, INOX Leisure Ltd. will continue its expansion into places like Jodhpur, Ahmedabad, Bhopal, Mangalore, Coimbatore, Kanpur, Hubli, Bhuvaneshwar, etc.

3. MARKET SHARE

44%

25%

17%

8% 6%

Market Share

PVR CinemasBig CinemasFUN CinemasInoxOthers

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Thus we can conclude that PVR cinemas have the largest market share in Indian multiplex industry and Big cinema is the closest competitor.

4. COMPARATIVE STUDY ON SCALE OF 7 P’S

4.1 PVR

1) PRODUCT - A product (in the marketing context) may be tangible, intangible or both. In case of services, on the contrary, the tangible component is nil or minimal. In services, there is no or very little tangible element because of which they are considered as benefits, which are offered to the target market. First, a service is a bundle of features and secondly, there benefits and features have relevance for a specific target market. Therefore while developing a service product; it is important that the package of benefits in the service offer must have a customer’s perspective. Core Benefit is the MOVIES that the customer comes to a cinema hall for, along with the attendant experience of PVR. The expected product in PVR’s case would be ambience, hygiene, good service, parking, candy bar etc. PVR has augmented its product offerings: Luxury cinema - PVR has brought to its customers the experience of luxury cinema. After

the tremendous success of Cinema Europa in Delhi, PVR Cinemas has introduced the concept of luxury viewing to Bangalore as well. Gold Class Cinemas have been introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each equipped with plush and fully reclining seats and generous legroom. Patrons can also enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent pre cinema experience with scrumptious food and beverages.

Bulk Bookings - There are special arrangements for bulk bookings (of twenty or more tickets) done by corporate. Details can be filled online and PVR executives themselves get in touch with the concerned people.

E-booking and Tele-booking - PVR also provides the facility of e-booking, which was first started by PVR, it has now been copied by Satyam Cineplex as well. It also offers Tele-booking.

Parties at PVR - PVR has also started helping customers in planning birthday/kitty parties at PVR. They have made PVR a wholesome entertainment experience than just a movie watching spree.

Movie newsletter and magazine - To keep its customers hooked on to movies and to PVR, it has also come out with an online newsletter called ‘PVR Wire’ is directly mailed to the subscribers and can also be downloaded from their website. They have also launched a movie magazine called ‘Movies First’.

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Movie vouchers - They have also taken out the unique concept of movie vouchers which people can use as gifts. Many corporate have also started using these as incentives and rewards for their employees. The vouchers are available in denominations of Rs 100 to Rs 350 and a minimum of 25 coupons needs to be purchased to avail of the offer.

2) PRICE - PVR when started off had a huge advantage of being the only one of its kind in Delhi to begin with. Therefore, they could charge a higher amount to its target audience, as they did not hesitate to pay the sum for the new concept. This high pricing helped them make maximum gains. Also, PVR had, and still has a very well planned market position. Its premium positioning affects the customer’s perceptual positioning. In case of PVR, they make use of all their tangible elements to prove to their customers that their movie tickets are worth the price they are paying. Also, since some of the other movie theatres (which are not multiplexes) are still offering movies at rates as low as Rs 35, it is the task of its marketer to ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the experience. The movie theatres market is a Free Market, even though the government in the past regulated it. This allows PVR as the market leader to set its own prices. Prices that had originally started from Rs 125 (for evening shows) and Rs 90 (for morning shows and weekday plans) have increased to a high of Rs 150 and the lowest is Rs 100. The high pricing however has not led to any change in the footfalls that PVR gets. Even in slighter crowded shows, the occupancy rates as low as 35% reaches PVR’s break-even points. The pricing at PVR Europa is Rs 160 and a Gold Class ticket is charged at Rs. 750. It offers superior ambience, environment, seating, viewing etc in the sum

3) PLACE - The issue of location here plays a very important role, as all PVR Cinema Halls are stationed at good locations in the city, which gathers a large number of footfalls for them

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every day. PVRs usually open at an eventful yet untapped location, followed by which (as we saw in case of Anupam PVR Saket) other retail chains get opened around it as well. Their places are always well situated and are well linked. PVR does not have any other channel of distribution, as their service is sold solely at their chains. They do not follow any franchisee outlets, even though they indulge in ticket sales online and via Tele-booking. The only intermediary involved for procuring movies are Indian as well as international movie distributors, by way of whom they acquire the movies.

4) PROMOTION - PVR as a brand indulges into print advertisements on every Friday giving out the latest movie schedules. Any new developments are communicated to the audience via press releases. Hence there is a strong element of PR involved. Apart from that, they usually have contests pertaining to latest festivals like Valentine’s Day, New Years Eve, Oscar Movies Week etc. PVR also has a host of online promotional contests associated with movies. They are also in collaboration with cellular services like Airtel have SMS and- win contests and give out free tickets to the winners. Also, PVR attracts a lot of commercial shooting / media coverage via programs etc which promotes it as a brand in a big way. Organizing Star Events on Premiers of movies like ‘Kuch Kuch Hota Hai’ helps PVR relate better with its target audience i.e. the youth. The whole PVR banner and its exterior environment including movie hoardings, banners etc help promote the concept of movie viewing as well as PVR as a strong and successful brand. PVR also hosts premiere shows with leading movie stars visiting the various PVR cinemas. They also host numerous fun events for children while screening animations etc.

5) PEOPLE – This indicates the Employees and Customers. Service must be fully developed and internally accepted before it’s launched. PVR indulges in the following: Complimentary ticket on payment of entertainment tax amount at any point of time (2 days in advance) to

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the employees, subject to Availability, Tickets to employees are given for: 1+1 oneself and employees guest and 2 for immediate family i.e. parents, spouse etc. This has been done to encourage movie going among employees as well as customers, Gives 10 national holidays to employees, Report customer grievances to managers, Strict on rules on no smoking, drinking on job etc, They are given personalized badges – symbolizes that the employees pride themselves on being a part of the PVR family, Very great importance is given to person hygiene and appearance –Clean uniform and shoes, Not allowed to make a gesture to ask for any sort of a tip / gift from customers, Job performance evaluation at the completion of first 90 days of employment. They are evaluated once a year on their anniversary of date of joining by individual superiors and records regarding employees’ progress are evaluated, all employees are taught to deal with safety problems like accidents, Fire, bomb threat, armed robbery etc. All trainees are made to train at all departments like ticket sales, computer ticketing, Tele-booking, sales enquiries, customer service skills, cash handling sales, credit card sales etc. Lastly, it is made sure that all employees represent PVR in the best way possible and sell it as a strong and well-established brand. All 55 employees are given full details on what they are representing and informed all about PVR to make them a part of the family. For the customers’ convenience, it is ensured by the organization that there are no loopholes. In case of any customer complaints, the employees are immediately directed to report the same to their managers. The nature of all employees is very friendly, informed, helpful, reliable, soothing, cheerful and youth-like. Therefore, the audience can easily relate and communicate with them.

6) PHYSICAL EVIDENCE - Though customers cannot see a service, but they can definitely see various tangible clues of the service offer like facilities, communication, objectives, employees, other customers, price etc. On basis of these, he forms his opinion as they help

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us to tangibalize the service. Therefore, it is essential to manage physical evidence. Atmosphere – helps to shape opinions. PVR ha the best building, layout, colors of interiors, tickets, labels, logo of the organization etc which help to formulate a good unified corporate image / identity.7) PROCESS - It was the first cinema company to introduce computerized ticketing through use of international box office software in its cinemas; first cinema to accept credit cards in India against tickets; and the first to offer cinema tickets on Internet with online payment gateway for payment.. PVR was the first to install surround sound and Dolby in Delhi. Gurgaon 7 screen megaplex is equipped with the latest THX approved sound system for the real life sound effects and the state of the art Xenon based projection technology.

4.2 ADLABS / BIG CINEMAS

1) PRODUCT - The Core Competency here is SCREENING OF MOVIES. The supplementary products / services are enormous like the Video Games Parlour & the Food Court. Good options for food like the Cafeteria where you get food made in hygienic conditions. The ambience is pleasant with centrally air conditioning, well-illuminated layout. FAME ADLABS is well known for its DOBLY DIGITAL SOUND.

2) PRICE - FAME uses differential or flexible pricing for its Multiplex theatres.Rates: In the multiplex averages between Rs. 90 & Rs.220 depending upon the box office performance of the movies screened. The prices are popularly estimated to be extremely fair prices for the complete entertainment experience. Reasonable pricing is possible thanks to the government policies regarding the partial wavier on the extremely high entertainment tax that multiplex enjoy.

3) PLACE - It is located at Andheri, Mumbai. From the point of view of public transport it’s closest to Andheri station. From this station one has an option of hiring a rickshaw, taxi or local BEST buses. However, all said and done, there is no denying that FAME is off the beaten track for most Mumbaikars. Since it is located in the suburbs of city it is not easily accessible and hence loses out here.

4) PROMOTION - Initially hyped, FAME attracted a lot of press attention and subsequently the public flocked to Andheri to witness the spectacle. However after the initial hype died down FAME did not take a more aggressive role in promotion but instead took a back seat. FAME beat IMAX by offering its clientele innovative methods of buying tickets via the

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MOBILE PHONES (SMS) that completely excluded the requirement of the customer to visit the theatre before the actual movie experience. The most effective way of promotion is the daily advertisements in the paper, which promote the movie, which is currently being screened in the theater, and informs the public. One of the new ways adopted in online ticket booking which is quickly becoming quite popular.

5) PEOPLE - Courteous and well-dressed people characterize the Multiplex.The employees are highly motivated and trained and exude an aura of energy and vibrancy as they perform their duty with a smile on their lips and a spring in their step.Whilst actually experiencing the movie, the sin-goers around us are just as important as the employees that escort us to the theater. Therefore FAME, which attracts the upper strata of the society, is a very conducive atmosphere and a pleasant environment to enjoy a movie with the entire family.

6) PROCESS - The process is a sequence of actions to deliver the service to the customer. In this case the following is the process followed by FAME. The customer arrives to FAME by car and first goes to the ‘pay n park’ to park the car. The customer then moves on to the ticket window to purchase the ticket for the movie he is interested to watch. Then the customer enters the building.Here the usher at the door checks for the tickets. Then the customer will move on to the screening area and watch the movie. In the interval the customer will mostly come out to eat or drink something from the cafeteria. The customer goes back to the screening area to continue the movie. Watching a movie at Fame Cinemas is like taking a short vacation. There is a cool ambience, quality service and convenience in booking.

7) PHYSICAL EVIDENCE - Ambient factors Air conditioning Excellent ventilation

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Design factors Uniform appearance Extensive parking lot Spacious interiorsSocial factors Well dressed employees Courteous Elite and up market crowd Family atmosphere

4.3 INOX CINEMAS

1) PRODUCT - SCREENING OF MOVIES is the core product of INOX cinemas. INOX cinemas are well known for its DOLBY DIGITAL SURROUND SOUND. INOX has established a strong presence in the cinema exhibition industry in the short span of a little over eight years since the opening of its first multiplex. INOX has traversed its own path by bringing in a professional and service oriented approach to the cinema exhibition sector.

2) PRICE - INOX uses differential or flexible pricing for its Multiplex theatres.In the multiplex averages between Rs.100 & Rs. The prices are popularly estimated to be extremely fair prices for the complete entertainment experience. Reasonable pricing is possible thanks to the government policies regarding the partial wavier on the extremely high entertainment tax that multiplex enjoy.

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3) PLACE - It is located at GVK One, Hyderabad which is one of the posh areas. Footfall here is greater than rest of the theatres of inox in Hyderabad. This is due to the theatre being at the same place as shopping.

4) PROMOTION – Inox promoted itself many forms: Print advertising (posters + ads in newspapers & magazines) Internet sites (including Facebook 'fan' pages) Viral Videos Merchandising — the list is endless books, t-shirts, food, soundtrack CDs, computer

games, toys, cars, mobile phones, anything that can be associated with the brand of the movie

5) PEOPLE - Courteous and well-dressed people characterize the Multiplex.The employees are highly motivated. Whilst actually experiencing the movie, the sin-goers around us are just as important as the employees that escort us to the theater. Therefore INOX, which attracts the high society, has a very conducive atmosphere and a pleasant environment to enjoy a movie with the entire family.

6) PROCESS - The process at INOX is not very well executed. The customer first buys the ticket. He then proceeds to the physical checking of goods and self. The draw back here is that the ladies are not allowed to carry hand bags inside which create a lot of problems for shoppers. The customer is then left stranded to find out the auditorium in which the movie is being telecasted.

7) PHYSICAL EVIDENCE – The ambience at INOX cinemas is very fine. The air conditioning facility is up to the mark and the theatres have excellent ventilation. The surround sound system gives the customer the best experience while watching the movie. The interiors are very spacious. The employees are trained and well dressed.

5. COMPETITIVE ADVANTAGE

5.1 PVR Cinemas

First mover advantage in the multiplex business in India Updated technology Premium positioning Plays Hindi, English, Regional & foreign movies Location strength

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Ambience Started the concept of ‘a complete movie going experience Market leader Very strong brand equity Original’ multiplex Blend of retail & entertainment

5.2 Big Cinemas/ Adlabs

• Site administration: This is used to update cinema schedules for a particular week, and initiate and close online ticket booking for a particular movie. Also, the information layout of the web site can be altered dynamically, according to priority. Adlabs has a call centre open for all 7 days of the week, home delivery services are also provided by the company

• Movie schedule: Users can view a movie schedule for an entire week, and also the ‘next change’ films of Fame Cinemas, for which online ticket booking is available. Weekly schedules of films are delivered to registered users via e-mail.

• Customer profiles: The web site has a facility to capture data on users’ personal preferences related to films. Based on this information, selective information on films can be sent to users, who have registered at the web site via e-mail.

• With nearly a 100 multiplexes coming up in the country, the market is now ready for international films in a big way.

5.3 INOX Cinemas

Brand Equity “FAME” Experienced Management Team Professional board Distribution Arm Robust Processes Growing middle class with higher disposable income

6. RECOMMENDATIONS

6.1 Technological InnovationWhen PVR came into being it was at the forefront of the technology involved in the Movie business but now much more has been done in this field and PVR needs to keep up. Like the

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IMAX theatre that Adlabs has introduced, PVR should also foray into new technological advances in the entertainment business.

6.2 Once inside...Service must match the price charged…Many of the audiences feel that some of the services inside do not command the prices that is charged for them, example, even the first two rows in the theatre command a price of Rs. 150/-. Most people feel that a lesser price should be charged as sitting too close to the screen is not as good an experience as sitting in one of the back rows. Also the prices charged at the food and beverage counter are way above the MRP, which we feel is an undue premium that is being charged. A lot of audiences that were interviewed feel that the leg space in between the rows is less and it makes the audience uncomfortable after sometime. We as a group also feel that introduction of a food court that has a variety of offerings, not just snacks but wholesome meals as well would greatly improve the movie going experience as people would spend greater amount of time in the theatre and the food court could work as an ancillary to the theatre.

6.3 Expanding reach…Once a movie is past its prime and running in the second or third week where sales are low, PVR could do promotional campaigns and reduce the prices marginally for one show a day. This would encourage more people to experience the PVR experience, especially those that are inhibited by high prices. For e.g. Special promotional campaigns for students for instance could help in attracting the vast price sensitive student audience. Such promotions could happen once or twice a month without diluting the superior brand image.

6.4 Riding high on sports…Cricket is an obsession in India. PVR could capitalize the same by screening ‘hot’ matches live for e.g. A crucial India Pakistan match, World cup semifinals/ finals etc. The growing popularity of soccer and other sports can also be tapped. This would be an instant hit even at very high prices charged. To add on to the excitement they could couple this with cricket contests and give prizes like paraphernalia with autographs of eminent sportspersons.

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