MBA Handbook-5

Moving towards a Digital India-Snapshot

First week of July 2015 was celebrated as Digital India WeekDigital India focuses on 3 key areas;

-Digital Infrastructure as a utility-Governance & services on demand-Digital empowerment of citizensWill help synchronize & co-ordinate

engagement of entire Government. Programme envisages digitally connecting

urban & rural India

Current & On-going e-governance initiatives revamped to align with Digital India

The goal is to help India become a knowledge economy & bring good governance to citizens

Private participation a key factor that will determine the success of the programme

Government Initiatives on Digital India

The programme envisages providing high-speed internet connectivity

through

public Wi-Fi hotspots to every Gram Panchayat cities with a population of

over 10 lakhs & tourist centersAll schools to be connected with

broadband & free Wi-Fi that will revolutionize the delivery of education

Applications such as ;Digital Locker SystemMyGov.inSwachh Bharat Mission Mobile AppE-Sign framework(All the above will allow citizens to digitally avail these services online or on their smartphones )

Programmes such as e-sign are aimed at eliminating difficulties faced by ordinary citizens in accessing & providing copies

their own documents & certificates

The government has already introduced some of the

initiatives like;eHospitals that provides important services such as on line registration Payment of fees & appointmentOnline diagnostic reports Enquiry about availability of blood(The above initiatives will at par with many private hospitals)

According to Industry veterans & analysts, the Digital India Programme is

meant to connect many dots physically as well as virtually

The Government is spending;-$ 18 Billion in the next few years on initiatives such as;-Connectivity for all-Internet for all-Providing Healthcare-Banking education-Other services

Challenges FacedThere are many

challenges at the State, Local & Political levels. Digitization is a critical

enabler for India to establish itself as an

economic giant in the world & mobile services will play a central role in this journey given their

ubiquitous reach

1.India has a long-way to go to improve the quality of

its digital infrastructure(However, spectrum, permissions for the fibre

on the ground, investments & easy availability of mobile towers are the essential

prerequisites to realize this vision

2.Issues such as strengthening net connectivity & bandwidth across the

country ,improving e-literacy particularly in the interiors of the country are challenges that need to be overcome speedily in order to derive better mileage

out of the Digital India Programme

3.Setting-up telecom towers is one of the

main requirements to provide broadband & voice services across

the country. At present, there are about 5 lakh cell towers which is

very much on the lower side. In the last 18 months only

16,000 towers has been added while the actual addition to support the

growing no. of connections should have been atleast

50,000 to 60,000 towers

4.When it comes to telecom connectivity

rural India still lags. As of April 30 2015total tele-

density(telephones pr 100 people)was just 48.37 in the rural sector nearly 1/3

rd of the 149.13 in urban areas according to TRAI

5.Apart from the user experience, relevant

mobile content & applications are necessary

for improving connectivity. Telcos & Govt should look at

bringing-in affordable devices to improve services in the rural

segment

6.Compared with other nations, India has low spectrum per million

customers. This affects the quality of services in the country which is the

second largest telecom market in the world

7.The transport & automobile, safety

& security industries will benefit

most from a networked society. There is a common need for

Information, Communication &

Technology solutions within these industries

After Malls in big cities, multiplexes are moving into smaller towns.PVR

Cinemas plans to expand to over 1,000 centres by 2018

• A KPMG study shows that in 2014 most screens opened by exhibitors were

in Tier II & Tier III cities• The rural centers are flush with cash but

have no sources of entertainment

• Apart from Hindi films, dubbed Hollywood films are a big hit in these

centers

• Research suggests that in some areas people travel more than 200 Kms to visit a

multiplex•

•A multiplex is a big customer need in these centers that are awash with cash from

land transactions

•The price per ticket ranges between Rs.100 to 130

PVR’s decision to open a multiplex at Kolhapur & Tier II/III citiesKolhapur district is known

for its sugarcane farms, mills & footwear industry.

There is a huge hypermarket that sold goods worth more than

Rs.3.5 Crores every month

People@ Kolhapur had given up watching films at local cinemas & travelled upto 200 Kms to

larger cities to catch their favorite movie at a multiplex

PVR finally decided to include Kolhapur on a list of cities that the company would expand into. There was absolutely no entertainment in Kolhapur & no places for young

people to date. This is where PVR targeted

PVR aims to set up as many as 1,000 screens across India by

2018 from the 467 screens that it operates today. This has set off the trend of one of the India’s

most sophisticated brands establishing theatres in districts

known for farming

People have a misconception that PVR is

an urban brand. This could be on account of

the fact that most people in big cities are unaware of the pace at which the rural areas are morphing

into small towns complete with malls ,entertainment

complexes & cinema houses

According to PVR the audiences who visit multiplexes in Tier II & III cities have a primary income from agriculture & a secondary one from real-estate transactions. An order for 160

BMW’s was placed by a few farmers & traders from ‘Vapi’ recently .The kind of deep pockets that exist in non-urban areas in increasing. The credit for taking quality cinema

viewing to rural areas does not go to PVR alone. It all began with the malls being set-up in smaller centers.

PVR’s entry into non-urban areas began around

2009.According to people in many of the country’s

agricultural belts are flush with cash & are demanding quality services like never before. They want to be

identified with good brands & that is why PVBR chose to foray into Tier II & III Cities. People in smaller

centres had the same expectations of the brand as

the cinema-goers in big cities.

In Raipur, movie watchers are broadly classified into 2

categories;1.Landed farmers & traders2.Farm laborers & marginal

farmersThe first category watch movies on weekends whereas the second

set prefers weekdaysFast & Furious Avengers &

Jurassic Park have all done well as have the Hindi block busters.

Locals encourage watching English Movies & PVR gets

bulk bookings

When PVR surveyed Tier II & III cities,

they found that there is an appetite for

cinema. The need for better entertainment is higher in these areas

as they have very few options

PVR Cinemas is not the only chain that is travelling far & wide

in the country to scout for fresh territory to set up multiplexes. Almost every well known multiplex

brand in the country is moving into small

town IndiaToday many films are not only shot in smaller towns but

even form a significant part of

promotions spends. Ex: Aamir Khan

began PK promotions from

Patna & SRK extensively

promoted Happy New Year in cities

such as Ahmedabad & Indore

A KPMG report suggests that

while the metros & the NCR

contribute 60% of total box-office collections in

India, they have reached a point of saturation & the

next phase of growth is

expected to come from Tier II & III

centres

The markets targeted by PVR are not

entirely dependent on farm incomes as there

are other customer profiles too.Ex: Bhilai in

Chattisgarh has a number of students in institutions(such as Bhilai Institute of

Technology & Rungta Group of Institutions)Bokaro in Jharkand has a steel factory

Brand LocationInox Leisure Udupi, Jalgaon, Bhilwara, Vizag

PVR Cinemas- Hubli, Aurangabad, Raipur, Ujjain, PanipatCinepolis Vijayawada

Mukta Arts Sangli, AurangabadPriya Entertainment Haldia

K Sera Sera Abohar, Nawanshahr, Hoshiarpur

Silver-Screens in small-town India

There are two significant reasons behind the push towards smaller centers.

•Most of the centers have many people who are flush with cash after selling land to developers as the rural landscape gets rapidly urbanized•It is difficult to find space in bigger cities which is now increasingly available in Tier II & Tier III locations

Films-Mass Audience

Now there is nothing called a mass audience. Producers realize that there are two orts of audience;

1.Multiplex2.Single Screen

The business done by Hollywood films is measured through two

markets;1.Delhi/UP2.Mumbai

Till three years ago the above two major markets accounted for

3/4th of the business done by Hollywood films in India. But

ever since multiplex chains moved to smaller centers, the

share of business done in these two markets has come down to

about 68%which means that more people are watching these

films in other centers According to Inox, in small centers

movies with good mix of drama, romance & action attract the

maximum audience. Inox has seen guests coming-in with family/friends

for a evening or day of complete entertainment

Anup George RebelloAsst.Manager

The Catholic Syrian Bank Ltd(anuprebello.6@gmail.com)

http://www.slideshare.net/anuppresentations