BIG CINEMAS: MARKETING RESEARCH

VAIBHAV SANTOSH VILANKAR

DPGD/JA09/0367
SPECIALIZATION: MARKETING

Welingkar Institute of Management

Development & Research
December 2010

ACKNOWLEDGEMENT

I am heartily thankful to my Area manager, Mr. Rohan Bhansali, whose encouragement,

guidance and support from the initial to the final level enabled me to develop an understanding
of my research project report.

Lastly, I offer my regards and blessings to all of those who supported me in any respect during
the completion of the project.

Vaibhav Vilankar

Index
Certificate from the guide

Introduction

History of the company

17

Methodology SWAT analysis of the Big Cinemas

34

Porters Five Forces Model of Competition

35

Threat of competition

37

MARKETING MIX 7 Ps SERVICE PRODUCT/ SERVICE PACKAGE

49

Understanding Big Cinemas as a Service Brand

58

CONCLUSIONS & RECOMMENDATIONS

60

LIMITATIONS

61

Bibliography

62

CERTIFICATE FROM THE GUIDE

This is to certify that the Project work titled BIG Cinemas Marketing Research

is a bonafide work carried out by Vaibhav Vilankar (Admission No.) DPGD/JA09/0367

a candidate for the /Post Graduate Diploma examination of the Welingkar Institute of Management

under my guidance and direction.

SIGNATURE OF GUIDE:
NAME: Rohan Bhansali
DESIGNATION: Area Manager (Operations)
ADDRESS

: Big Cinemas, 2nd floor Meadows,

Sahar Plaza Complex, JB Nagar
Andheri.

DATE:

PLACE:

INTRODUCTION
ENTERTAINMENT INDUSTRY
Over the last decade, India has registered the fastest growth among major democracies and is
now the fourth largest economy in terms of purchasing power parity. Over the years, spending
power has been steadily increasing in India. On an average, 30-40 million people are joining the
middle class every year. The consumption spending is rising due to increasing disposable
incomes on account of sustained growth in income levels and reduction in personal income tax
over the last decade. The Indian Entertainment Industry is expected to significantly benefit from
this fast economic growth, as this cyclically sensitive industry grows faster when the economy is
expanding. When incomes rise, proportionately more resources get spent on leisure and
entertainment than on necessities.

Source: Industry Estimates & PwC Analysis

Note: The figures taken above include only the legitimate sales in each segment.
Revenues from the gaming and animation and Gaming segment have not been included
in the entertainment industry size as these figures have been traditionally been included
in the Indian IT and Software Revenue.

Indian Film and Exhibition Industry Overview

The Indian film industry is the largest film industry in the world in terms of the number of films
produced and admissions each year. The Indian film industry revenue for 2004 was estimated at
Rs. 59 billion (US$1.3 billion), which was less than 1% of global film industry revenue and a
fraction of the U.S. film industry revenue, which was US$9.49 Billion in 2003. The pie chart
below sets forth the percentage contribution of various revenue sources to the total revenue of
the Indian film industry in 2004.

Although over 90 years old, the Indian film industry was only accorded the status of an industry
in 2000. Consequently, it is only during the last five years that the Indian film industry has been

able to attract financing from banks, financial institutions, private equity investors and
corporations. Prior to 2000, the industry was almost solely reliant on private and largely
individual financing. Although corporatization of the film industry has started, the film industry is
currently largely unorganized and fragmented. Going to the cinema is one of the most popular
entertainment options in India. In 2004, the total admissions in cinemas in India were 3,100
million. The second largest number of admissions is in the United States, which had 1,500
million admissions in 2004.

The film industry comprises three sub sectors:

 Film production, which involves the making of movies; Over 900 Indian produced films were
released in 2004. Hindi films constituted the bulk of films produced in India closely followed by
regional films in Telugu, Tamil, Kannada and Malayalam.
Hindi films are the most popular films in India and account for over 40% of the total revenues of
the Indian film industry. The majority of Hindi films are made in Mumbai, popularly referred to as
"Bollywood". Around 30% of the films made in India generate 90% of the Indian film industry's
revenue.
Film distribution, which involves the distribution of movies to cinemas, television and video
stores;
The film distribution system in India is territory-based. The country is geographically divided into
14 distribution territories and film producers tend to sell distribution rights for each territory. Most
film distributors in India are small businesses. This has resulted in the film industry being highly
fragmented, with each territory having 50-75 distributors, while 810 distributors operate on an all
India basis.
A distributor generally sells its rights to sub distributors who cover certain sections in a territory
Film distribution sector characteristics and trends
In the recent past, some of the larger producers have vertically integrated into
distribution, especially into overseas markets.
A number of new entrants have entered the distribution business, resulting in an
increase in acquisition cost for distributors.
Distributors are trying to lock in the content at a very early stage by financing film
producers.
Distributors are playing an increasing role in marketing of films.
New films are being released in satellite/ video formats within a shorter period after
theatrical release, thereby reducing the window for theatrical exploitation.
New films are being released across a larger number of theaters with a large number of
prints in order to maximize theatrical revenues in the shortest time period.
New distribution formats, like digital distribution DVD, are being implemented.
The increasing size of the home video market is also expected to provide growth for the
distribution sector. As of the end of 2004, over five million Indian households had a VHS or DVD
player, an increase of 50% compared with the end of 2003. Increasing wealth should result in
more Indian households owning a VHS or DVD player and expand the home viewing market.

 Film exhibition, which involves the exhibiting of movies in cinemas. The Indian film exhibition
sector can be divided into two segments: single and double-screen cinemas and multiplex
cinemas, i.e., a cinema complex with three screens or more. As of March 2005, there were
approximately 12,000 cinemas in India of which 73 were multiplexes with a total of 276 screens.
Indian Film Exhibition Sector
The Indian film exhibition sector had revenues of Rs. 34 billion in 2004. Despite the higher
number of tickets sold in India, the total reported box office revenue is significantly lower in India
compared with the United States.
This is primarily due to the fact that ticket prices are much lower in India, with an average of Rs.
15 . The lower ticket prices in India are due to lower income levels, especially in rural and semi
urban parts of the country, and the lack of good quality cinemas. The average price of a ticket
for a multiplex cinema is Rs. 75 - 85 but the number of screens in multiplexes represented only
2.3% of total screens in India as of March 2005.
(Source: Yes Bank Report)
An increase in the number of Multiplex screens should result in an increase in film exhibition
revenues, so the opening of new Multiplexes represents a significant growth opportunity for the
industry. The total reported box office revenue in India is also lower because the amount of
revenue collected at the box office is under reported due to the fragmented and non-transparent
nature of the film exhibition sector.
Inadequate Number of Screens In India, the number of screens per million of population is just
12 whereas the average in western countries is approximately 40.

Concentration of Cinemas in Southern India Southern India accounts for a majority of the
cinemas in India. Andhra Pradesh has the most number of cinemas in India followed by Tamil
Nadu, Kerala and Karnataka. Whilst Southern India accounts for the majority of all cinemas in
India, as of March 31, 2005, only five out of 73 multiplex cinemas in India were in Southern
India.
Major Players in Indian Film Industry
Players

Productio
n
A

Distribution

Exhibition

Zee Telefilms

AVM Productions

Mukta Arts

Rajshree Productions

Shringar Group

PVR Cinemas

Pritish Nandy
Communications

Reliance Media Works

BACKGROUND

10

Economic
The Indian Entertainment Industry is one of the fastest growing sectors of the Indian economy
riding on the economic growth and rising income levels that India has been experiencing in the
past few years. The entertainment industry is expected to grow faster than GDP growth and
consequently more spend is expected on leisure and entertainment.
The film segment will ride on the growth of multiplexes and digital distribution formats. 18%
year-on-year growth is expected in this segment.
There are 73 multiplexes in India, with 276 screens and about 89,470 seats. The numbers are
expected to increase to 135 multiplexes with more than 160,000 seats by the end of 2006. In
India the multiplex business is modeled to the ones in developed countries. The main revenue
stream is box-office collections from movies.
Other revenue streams include rent from display systems, restaurant rentals, food and beverage
collections, product launch rentals and promotions by companies. In several cases the other
revenue streams are often larger than box-office collections, but movies are the main pull of
such complexes.

Increase in disposable income in the hands of an ever expanding Indian middle class Multiplex
Cinemas generally cater to middle and high income households. The emergence of the Indian
middle class with greater earning power and a higher disposable income is one of the key
factors that will drive the growth of the Multiplex Cinema segment. The table below shows the
growth in the number of middle and high income households in India. Because of Indias status
as a good IT hub for outsourcing by U.S. companies, young Indians between 20 to 24 years old,
who ordinarily wouldnt be able to find work easily, are finding jobs with call centers straight out
of college. Now they have disposable income thats totally discretionary and about 20 to 30%
higher than prevailing wages, which they are spending on books, movies, music, cell phones,
food and brand-name clothes

From 1999 to 2003, the average Indian household increased its spending on movies and
theatre as a percentage of its disposable income from 1% to 4.6%.

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Organized retail boom

A growth in consumption levels, changing lifestyles, the availability of quality real estate and
significant investments in malls are expected to result in an increase in the size of the organized
retail business in India. The organized retail market in India is expected to increase its share of
the total retail market from 2% as of 2004 to reach 5-6% by the 2007. The number of malls in
India is expected to increase from approximately 50 as of the end of 2004 to around 250 by the
end of 2006. One of the key elements for the success of a mall is its ability to drive footfalls
consistently. Multiplexes are one of the anchor tenants in large format malls, as their presence
increases footfalls by approximately 40-50%. The expected organized retail boom should result
in a significant increase in the number of Multiplex Cinemas.

Social
Movie watching is becoming an experience more than just a casual outing with the family. The
lines are blurring between watching a movie for entertainment and watching a movie for leisure.
The movie experience goes much beyond just watching a film. The encouraging growth in the
number of multiplexes is making the movie goers, especially in urban India, experience a new
way of enjoying movies. Higher consumption spending and consequent changes in lifestyle are
also spurring the growth of the Indian Entertainment sector. Since the late 90s distribution has
become equally as important as production to the Indian movie industry. Multiplexes were the
natural choice for distributing movies in large cities. Space was at a premium and several
movies were competing for limited number of screens. Multiplexes not only increased the
number of available screens, but also provided them with excellent acoustics and enhanced
picture display.
Increase in Number of High Grade Hindi Films Demand for a particular movie is generally driven
by both its critical reviews and word of mouth from patrons. An increase in the average quantity
of high grade Hindi films released per week should increase the total demand for movies, as
these movies tend to be more popular. As shown in the table below, from 2001 until 2004, there
was an increase 48% in the number of releases per week for high grade Hindi films.

Increasing corporatization of the film production sector should result in an increase in the
number of high quality films produced, which should increase demand for movies. In an
increasingly corporate environment, unviable movies with weak scripts should find it difficult to
garner funding. Consequently, although the average number of films produced annually in India
is expected to fall from over 900 in 2004 to around 600 by 2010, the quality of the movies
produced is expected to increase.

Political

12

The year 2004 also witnessed a change in the political scenario of the country with a positive
impact on the regulatory scenario. A new set of policy makers are looking at this segment with a
fresh perspective, which is a positive sign. On the other hand this does give rise to delayed
policy decisions, a fact not favored by all. Several state governments provided incentives to
encourage the growth of multiplexes. A positive concession given to the cinema theatre industry
in 2002/03 was the deduction of 50 to 100% of the profit earned by multiplexes that came to
them in the next two to five years. The waiver was restricted to multiplexes, which were
essentially in metropolitan cities, but the concession has been extended to smaller cities too. To
boost the sector, the government has opened large parts of the sector to foreign direct
investment (FDI). It allows 100 per cent FDI on automatic basis in the film industry with no entry
level pre-conditions.
Entertainment tax benefits
In the late 1980s various state governments imposed steep increases in entertainment taxes,
which lead to a decrease in the profitability of cinemas. This adversely affected investment in
cinemas and maintenance standards as cinema owners tried to reduce their costs, which lead
to a fall in the ambience of cinemas and a decrease in the quality of audio and visual standards.
The fall in cinema standards coupled with the availability of watching movies on videocassette
players lead to a decline in cinema patronage. Most cinemas were during that time, and still are,
run as small business and these businesses did not have access to capital to improve the
cinema ambience and quality to arrest the declining patronage.

Source: Reliance Media works research on tax structure in various states.

In order to encourage investment in the film exhibition sector, many state governments have
announced policies offering entertainment tax benefits. This has encouraged the growth of
Multiplex Cinemas and also encouraged single-screen theaters to convert into Multiplexes. The
quantum of entertainment tax benefit which may be available in each state is different and the

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availability of these exemptions would be dependant on compliance with certain conditions

specified by the relevant state. A synopsis of the key elements of the entertainment tax
exemptions which may be available in the following states is given below:

Source: Reliance Media works research on tax structure in various states

Technological
Film Distribution Holdups

14

One of the main features of the Indian film industry that differentiates it from those in western
countries is the limited initial release of films. Due to the high print costs for films (approximately
Rs. 70,000 per print) as a percentage of the average ticket price in India, distributors have
adopted a policy of releasing a limited number of prints in each territory and rotating them in the
territory, starting with A-grade cinemas in A-class centers. The bigger movies are released with
300 400 prints to satisfy a potential market of 12,000 cinemas. The practice of rotating prints
and the resultant delay of the release of films in B and C-class centers create three major
problems for film exhibitors in B and C-class centers:
Pirated DVD/VCD copies of the film are generally available by the time the film is released in B
and C class centers, which reduces demand;
If the film was not a hit on its initial release in the A-class centers it is unlikely to do well on its
delayed release; and
The quality of the celluloid film print is negatively affected each time it is played, so poor
picture quality is also an issue - often the dark and scratchy print is hardly visible on the screen.
The above factors result in the box office potential of movies not being realized. Many cinemas
in B and C class centers operate on a 7% to 8% occupancy ratio.
Impact of Digital Technology on Cinemas in IndiaTo counter this issue of low first instance release, digital cinemas are being opened in B and Cclass centers in India and movies are being released in those cinemas at the same time as
movies are released in the A-class centers. Digital copies of films cost significantly less than film
copies (approximately Rs. 3,000 for digital compared with Rs. 70,000 for film) and the cost of
digital projection equipment being used in India is also significantly less than that of film
projection equipment (approximately Rs. 800,000 for digital compared with Rs. 1.5 million for
film). The significant reduction in the cost of digital cinema compared with celluloid film makes
an India-wide simultaneous release of a movie economic. As of March 2005, 100 digital
cinemas had been opened in India, of which an estimated 65 were in operation. As of March
2005, 100 digital cinemas had been opened in India, of which an estimated 65 were in
operation.
Digital technology helps overcome the problems faced by B and C-grade cinemas. First,
digitalized motion pictures are not required to be transmitted through physical media. This
means digitalized motion pictures can be distributed to more B and C-grade cinemas within the
first weeks of their release without incurring additional costs to produce additional prints.
Secondly, digitalized motion pictures maintain consistent and identical picture quality that is not
compromised by use, time, and transmission. Thirdly, reducing the time between the release of
a motion picture and its screening in multiple cinemas helps take advantage of the heightened
demands of cinema patrons during the initial five to eight weeks of a motion picture's release.
This helps to combat the market for pirated motion pictures and helps increase attendance rates
at B and C-grade cinemas.

Implementing digital technology in cinemas in India should expand the market for B-grade and
C-grade cinema owners and operators and thereby increase their profitability through:
increased number of screens on which newly released movies are shown, without incurring
additional production costs;

15

 Improved and consistent picture quality without regard to the location of the cinema; and
Satisfaction of cinema patrons' demands at the time when the demand for screening of a
movie is at its highest, which should reduce the loss of demand caused by the availability of
movies on pirated DVDs/VCDs.
Challenges Faced by Transition to Digital Cinema in India
The digital projection technology currently being used in India (mostly in B-class and C-class
centers) satisfies the requirements of the B and C-grade cinemas in India but does not produce
a picture quality as good as the picture in A-grade cinemas, where celluloid film is used.
In order to have a digital picture quality as good as the current celluloid film quality in A-grade
cinemas, as well as to meet Digital Cinema Initiative standards, we need to use at least
projectors, which cost between Rs. 4-5 million (US$ 90,000110,000), which is significantly more
than the cost of celluloid film projectors.
As and when the digital projection technology up-gradation will be required in the A-grade
cinemas in India, the issue of financing of such equipment will need to be addressed. In the
United States, digital projection equipment is being financed by Hollywood production houses
rather than the film exhibitors, as the production houses get substantial savings from not having
to produce celluloid prints.

History of the company

Reliance Media Works formerly known as Adlabs Films ltd

16

Mr.Manmohan Shetty and Mr.Vasanji Mamania started Adlabs as a partnership firm in 1978
by undertaking processing of advertising films in a laboratory at Dadar. Considering the vast
business opportunities in processing documentaries and feature films at the lab, the two
partners decided to form a separate private limited company in 1987.
In 1989, the Company made a foray into motion picture processing by setting up
a film processing lab at Andheri. With an increase in its client base and leading production
houses as its customers, the Company set up a film processing laboratory at Film City Complex,
Goregaon a state of the art processing facilities and a preview theatre rated at par with the best
in the world.
At present the Companys film processing operations are carried out here.
The Company went for an initial public offering in December 2000 and got listed on the Mumbai
Stock Exchange and The National Stock Exchange in January 2001.

Reliance MediaWorks Limited is Indias fastest growing film and entertainment services
company and a member of the Reliance Anil Dhirubhai Ambani Group.
Reliance MediaWorks operates BIG Cinemas, India's largest cinema chain with over 540
screens spread across India, the United States, Malaysia, Nepal and Netherlands.
Reliance MediaWorks currently has a dominant and comprehensive presence in Film Services:
Motion Picture Processing and DI; Film Restoration and Image Enhancement; 3D; Digital
Mastering: Studios and Equipment rentals; Visual Effects; Animation; TVC Post Production with
presence across India, USA, UK and Japan.
Reliance MediaWorks television venture, BIG Synergy, is among the top players in the
television programming industry

Brand Transition From Adlabs to Big Cinemas.

INDIAS LARGEST CINEMA CHAIN BECOMES BIG CINEMAS
Mumbai, 24th October 2008: Adlabs Films Limited, a member of the Reliance Anil Dhirubhai
Ambani Group and Indias largest cinema chain announced today the launch of BIG Cinemas
with the tagline Ab Bada Mazza Ayega.

17

The entire rollout will happen simultaneously on Tuesday, 28th October 2008 across BIG
Cinemas 73 properties throughout the country, totaling 186 screens and 71000 seats. On
Tuesday, BIG Cinemas guests across the country will see a major transformation in BIG
Cinemas signages, collaterals and all promotional material including TV, radio, print, outdoor
and online campaigns, reflecting the new brand. Guests can make bookings on the new website
www.bigcinemas.com. Over three million visitors are expected to visit a BIG Cinema in the next
year and the brand change will be a significant transformation for them.
Anil Arjun, Chief Executive Officer Adlabs Films Ltd, Indias largest cinema chain is now
clearly reflecting its place as part of BIG, the premier entertainment brand in India. In line with
the Reliance ADA Groups philosophy for a single monolithic consumer entertainment brand
BIG, India is the first step in our international brand rollout; BIG Cinemas will also be rolled out
across over 200 cinemas in US and Malaysia shortly. All future cinemas will also be launched
under the BIG Cinemas brand.
Tushar Dhingra, Chief Operations Officer BIG Cinemas, commented on the rollout saying,
This is the largest consumer brand change in the entertainment domain. We feel that the
brands fresh new look will appeal to our wide range of guests from both metros and smaller
cities alike. The emphasis is on giving our guests a larger than life or BIG experience when they
visit any Big Cinema across the country and to give the brand a more relatable and
approachable feel, in line with the strong tradition of thoughtful customer care we have been
known for.
About Adlabs Films Ltd: (BSE: 532399, NSE: "ADLABSFILM")
Adlabs Films Limited (www.adlabsfilms.com), a member of the Reliance Anil Dhirubhai Ambani
Group, is Indias fastest growing film and entertainment services company. Adlabs has a
dominant and comprehensive presence in Film Services: Motion Picture Processing and DI,
Film Restoration, Digital Mastering, Studios and Equipment rentals.
Adlabs Films also operates India's largest cinema chain with about 400 screens spread across
India, US and Malaysia. It has a significant presence in the film distribution space with a
nationwide presence across India as well as offices in London, New York, Los Angeles and
Malaysia. Adlabs' television venture, Synergy Adlabs, is among the top players in the television
programming industry.
About BIG Cinemas
BIG Cinemas, a division of Adlabs Films Limited (www.adlabsfilms.com), a member of the
Reliance Anil Dhirubhai Ambani Group, is Indias largest cinema chain with about 400 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.

Iconic Big Cinemas

IMAX Big Cinemas

18

Adlabs Films Limited successfully ventured into film exhibition business with the
commissioning of the IMAX Dome theatre which was opened to public on 31 st March 2001.In
second phase Screen 2 was opened to public on 26th October 2001.In 3rd phase, finally all the
screens were subsequently opened to public Nov15 2001.
Adlabs Wadala is a landmark in itself due to Imax Dome Theatre.It houses Indias first and the
worlds largest dome screen (12,700 sq.ft). A hemispherical screen that wraps the entire theater,
filling entire field of vision giving an incredible feeling of immersion within the movie and motion
along with the movie. This IMAX dome is 30 meters wide in diameter making it the largest in the
world.
Metro Big Cinemas
The Art Deco Metro cinema opened in June 1938, primarily to exhibit the MGM movies and
gradually became Bollywood's favorite red carpet destination. Over the past seven decades,
Metro Cinema has become a landmark on the Mumbai's cityscape and part of city's movie
traditions.

BIG Cinemas acquired the theatre in 2005 and refurbished it with state of art facilities and
opulent interiors which blend today's audience requirements with the theatre's heritage charm
and results have been remarkable.

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Metro BIG Cinemas now houses 6 contemporary screening rooms with a seating capacity for
1491 people including a luxurious Ebony Lounge with recliners, offering moviegoers the finest
customer amenities and a dynamic screen presentation, along with a greater choice of films and
viewing times. The auditoriums are furnished with wall-to-wall screens, stadium-style seating in
plush, high-backed push back sofas and Dolby sound systems.
Big Cinemas Odeon
Odeon Cinema in Connaught Place in Delhi has seen its fair share of romance, drama and
action both onscreen and off screen since it started in 1939. Over the past seven decades,
Odeon Cinema has become a landmark on the capitals cityscape and its with fond memories
of yesteryears that Delhi movie lovers look at Odeon since it closed down for renovations.

Now known as BIG Cinemas, Odeon is designed as a flagship luxury boutique cinema that is
inspired from the pure white ambience at Connaught Place. Housing 2 luxurious screening
rooms, it has 592 plush seats including 60 lavishly designed sofas for its guests. Every guest is
the star of the show and his journey and experience is uplifted in both ambience and offerings.

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Starting from buying a ticket at the box office, to a glitter carpet-like treatment at the entrance,
the glamour factor has been well incorporated. As soon as you open the cinema main door, you
are dramatically transported into an inverse aesthetic of the soothing vastness of the white and
gold minimalistic interiors of the lobby.
The bling factor is carried through the entire space with a hint of olive green in the cozy seating
lounges against a background of pure white shimmer drapes. There is an exclusive range of
unique food and beverage offerings. Overall an exclusive cinema that promises to be an
unforgettable experience.

70 years after its first movie screening, BIG Cinemas Odeon fulfills todays needs with the
theatres old world charm.

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R City Big Cinemas

BIG Cinemas at R City lets Mumbai's movie lovers experience movies like never before.
With 9 screens, 45 shows a day and a total seating capacity of 2109, it provides a variety of in
cinema experiences to choose from.

Savor sumptuous delicacies at Cine Diner, the world's first ever cinema-cum-fine dining
restaurant. Discover new angles to movie viewing at 180, an exclusive screen with All Luxury
Recliner Seating. Relax as you wait for friends at Pause, the private in-cinema lounge.
Or let your kids have a blast at Mischief, an exclusive in-cinema play area for kids.
India's first megaplex offers you an array of in-cinema experiences that the country has never
seen before.

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Premium Offerings
IMAX 3D
IMAX at BIG Cinemas, Wadala has redefined the entertainment landscape by providing movie
buffs the world's largest digital flat screen right in the heart of Mumbai.
With images of unsurpassed size, clarity, and impact, it provides the world's most impressive
experience, allowing audiences to feel the on-screen excitement.

This experience is taken a step further with the IMAX Experience in 3D. It is the world's most
immersive movie experience, which has entertained and enlightened millions of people
worldwide. The IMAX 3D camera is one of the highest resolution image-capturing devices in
the world. By simultaneously recording separate left and right-eye images onto two 65mm wide
filmstrips - one for each eye - the camera captures spectacular images.
This technology promises the most interactive movie experience enabling images to leap off the
screen and into the laps of the audience!

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The new IMAX digital flat screen at BIG Cinemas, Wadala opened with the magic of 'Harry
Potter and the Half Blood Prince'. IMAX at BIG Cinemas also showcased the highly applauded
Academy Award winner Avatar, the full length 3D movie from director James Cameron.
With enhanced picture and sound quality, IMAX 3D puts you IN the movie.
Cine Diner
On Fridays, most cinema halls premiere new movies. We premiere new dishes.
If ever you've been torn between visiting a restaurant and going to the movies, you will love
Cine Diner at BIG Cinemas, R City. Cine Diner is the world's first of its kind, having a diner
within a cinema screen. A whole new concept in movie watching, Cine Diner sieves only the
very best of both worlds for you, to create an experience that envelopes the senses. Here,
sumptuous delicacies crafted by veteran chefs meet modern day cinema luxuries under one
roof for the first time ever, to create a cinematic experience that's guaranteed to have you
coming back for seconds.

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180degrees
180 raises the bar on in-cinema comfort. A unique concept, 180 is a screen that's equipped
with elegant and comfortable recliner seating at BIG Cinemas R City. It's the ultimate luxury
destination for cinema-goers and takes the movie experience to another level.

Discover the nuances to the word comfort with opulent recliner seats that let you tilt your seat all
the way back, kick off your shoes and sink into a plush recliner, to create a cinematic experience
so comfortable, you'll wish the movie never ends. But that's just the seats. In-cinema services
like pillows and blankets provided on demand, personalized seat service and much more await
you at 180.
Located in a separate alcove within BIG Cinemas, Pause is a private in-cinema lounge
exclusively for guests going to Cine Diner and 180. Complete with mood lighting, soft music, a
bar serving fresh mock tails plus a live kitchen, Pause is designed to offer our guests a place to
sit back, relax and catch up and mingle with friends and family before the show.

25

Pause
At Pause, you can enjoy a variety of starters and sumptuous finger foods, as well as an equally
inviting selection of mock tails and juices as you wait.
A welcome break, Pause, ensures that every guest who steps leaves calm, fresh, and
rejuvenated, to thoroughly enjoy their movie viewing experience at BIG Cinemas R City.

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Achievements of Big Cinemas!

ADLABS OPERATES 100 SCREENS ACROSS INDIA
~ The 1st multiplex chain to reach the 100 mark milestone ~
Mumbai, 30th July 2007... Adlabs Films Limited, a member of the Reliance Anil Dhirubhai
Ambani Group and the leading entertainment conglomerate in the country, today announced
that it has reached the significant milestone of operating 100 screens across the country,
making Adlabs the largest cinema chain in India. .
The 100 screens are spread across 29 properties in 22 cities and will provide a total of
approximately 31,000 seats bringing the Adlabs cinema experience to 2 crore patrons this year.
These not only include several properties in previously under-served tier II cities, but also cover
major film territories.
Manmohan Shetty, Chairman and Managing Director - Adlabs Films said, Adlabs Cinemas is
fast progressing towards our aim of providing quality film-viewing experience to everyone in the
country. In spite of having the biggest film-producing industry and one of the largest filmwatching audiences in the world, India is still vastly under-served in terms of cinema screens.
We see immense potential in this.

ADLABS WINS BEST RETAILER IN ENTERTAINMENT CATEGORY AT IMAGES RETAIL

AWARDS 2007
Mumbai, 10th September 2007... Adlabs has won the Best Retailer in Entertainment
Award at the Images Retail Awards 2007, the culminating event of the India Retail Forum held
in Mumbai recently.

The definitive benchmark of excellence in the business of retail from concepts, innovations
and designs to consumer recall - the Images Retail Awards felicitates India's top retail
companies, professionals and concepts at a time when India is rated as the foremost emerging
market for global retailers and the business of retail in India is undergoing dramatic shifts. The
selection process follows a nationwide consumer and industry poll and nominations, backed up
with performance assessment by an Images Retail Awards team of analysts and jury

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Tushar Dhingra, COO Adlabs Cinemas says, As the largest cinemas chain in India, growing
at an incredible speed, its extremely important that we keep in touch with our core consumer
through pioneering initiatives like Baby Bliss for young parents and Silver Screen for senior
citizens amongst many others and living up to our promise of never a dull moment at an
Adlabs Cinema. This Award is an indication that we have been on the right track.

Adlabs Cinemas is the largest cinemas chain in India and presently has 102 screens spread
over 30 properties nationwide. It recently became the first cinemas chain in India to cross 100
screens. Last year, Adlabs was also awarded the Retailer of the Year Award in the
Entertainment category by the Awards Jury of India Retail Summit 2006 at the Reid & Taylor
Awards for Retail Excellence.

ADLABS TO PREMIERE
JOURNEY TO THE CENTER OF THE EARTH
IN BIG DIGITAL 3D FORMAT
~ Becomes the first cinema chain to show both 3D & 6D formats ~

Mumbai, 11th September 2008: Adlabs, part of the Reliance Anil Dhirubhai Ambani Group and
India's leading entertainment conglomerate, announced that it will premiere 3D Hollywood
blockbuster Journey to the Center of the Earth in BIG Digital 3D for the first time at Adlabs
cinema in Vashi, Navi Mumbai.

Digital 3D technology is a new form of cinema entertainment that allows audiences to

experience the latest blockbusters like never before. Hollywood studios are backing the new
format with animation hits like Disneys Chicken Little and concert films like Miley Cyrus/Hannah
Montana and U2-3D showing in 3D in US and Europe. Adlabs now brings this experience to
India with BIG Digital 3D. Adlabs had also pioneered the use of 6D in the first screen of its type
in India in Agra earlier this year through a partnership with Israel-based Cinema Park Network. It
now becomes the only cinema chain in India to offer both 3D and 6D formats.
Patrick von Sychowski, Chief Operating Officer Adlabs Digital Cinema explains the
advantages of digital screens over analogue: The BIG Digital 3D experience is a quantum leap
from old analogue 3D that involved red-blue glasses or cumbersome headgear that gave you a
headache. He adds, Within a few years most Hollywood blockbusters are expected to be
made in Digital 3D and we at Adlabs are proud to be bringing this experience to India for the first
time.

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Tushar Dhingra, Chief Operating Officer Adlabs Cinemas said, BIG 3D Digital is certainly the
most superior quality of cinema viewing available in the world today and is clearly the future of
cinema. After launching IMAX and 6D, we are excited to offer our patrons yet another cuttingedge international cinema viewing experience at Adlabs.
Based on the classic Jules Verne novel, Journey to the Center of the Earth is the first live-action
feature film to be shot and released entirely in digital 3D. With spectacular photo-real
environments and revolutionary new filmmaking techniques, it is an epic adventure, one that
takes audiences directly into the heart of the adventure, bringing them along for an
unprecedented, wild and visceral ride.

The digital screen which was earlier operating in the analogue format has a seating capacity
of 272. There are four shows a day. Tickets are priced between Rs. 120 and Rs. 180 and can be
booked over the internet at www.adlabscinemas.com, via telebooking on 022 39894040 and
through Mobile Box Office.

Adlabs Cinemas is the largest cinema chain in India and presently has 181 screens spread over
70 properties nationwide. It is also building up a sizable international presence, having recently
acquired majority interest in Malaysia-based Lotus Five Star Cinemas, and will be operating a
51 screen cinema chain in Malaysia. The international network, in addition to Malaysia, also
includes 221 screens covering the East, Mid West and West Coast of USA as also Mauritius
and Nepal. It was the first to introduce entertainment destinations to India such as the IMAX
experience at the largest dome theatre in the world, 6D cinema and has also pioneered the
concept of megaplexes.

ADLABS ACQUIRES MAJORITY INTEREST IN

MALAYSIAN CINEMA CHAIN LOTUS FIVE STAR

Mumbai, 5th May 2008 Adlabs Films Limited, part of the Reliance Anil Dhirubhai Ambani
Group, has entered into an agreement for acquisition of majority and controlling interest in
Malaysia-based Lotus Five Star Cinemas and will be operating a 51 screen cinema chain in
Malaysia.
The chain will have a footprint across Malaysia and will be playing mainstream Hollywood films
as well as Chinese and Malay, in addition to movies in Indian languages such as Hindi and
Tamil.

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Anil Arjun, Senior Vice President Reliance ADAG, said, This acquisition will strengthen
Adlabs Cinemas international presence. The international network, in addition to Malaysia,
comprises 220 screens covering the East, Mid West and West Coast of USA as also Mauritius
and Nepal.
Adlabs Cinemas is the largest cinema chain in India and presently has 160 screens nationwide.

ADLABS IS "RETAILER OF THE YEAR" IN ENTERTAINMENT AT

INDIA RETAIL SUMMIT 2006

Mumbai, 24th November 2006 The Awards Jury of India Retail Summit 2006 presented
Adlabs Films with the "Retailer of the Year" Award in the Entertainment category at the Reid &
Taylor Awards for Retail Excellence on 24th November 2006.

"Retailer of the Year" is the ultimate award presented to an individual, exclusive brand or multibrand retailer of Fashion, Food, Beauty, Leisure, Entertainment etc. which has a single outlet or
more and has shown outstanding performance with expansion within the boundaries of its
operation in the previous year. Tushar Dhingra, COO Adlabs Cinemas, accepted the award on
behalf of the company. Other nominees included PVR Cinemas, Shringar, Inox and Fun
Republic.
In the year to come, 13 million people are expected to watch a movie on an Adlabs screen. With
two IMAX theatres, 13 cinemas, 50 screens and counting, Adlabs Cinemas is one of the largest
motion picture exhibitors in the country and is on its way towards redefining entertainment in
India with its differentiated marketing strategy cutting across metros and non-metros. A
customer service orientation has ensured that the company always remains in touch with its
core consumer through pioneering initiatives like Silver Screens for senior citizens amongst
others and living up to its promise of "never a dull moment" at an Adlabs Cinema

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BIG Cinemas enters Bengaluru with the opening of a multiplex at Arch Mall

Romance; Drama; Comedy; Action get a new luxurious destination in Bengaluru with the
opening of BIG Cinemas at Arch Mall. The launch of this multiplex marks the entry of BIG
Cinemas, Indias largest cinema chain and a division of Reliance MediaWorks Ltd and a
member of the Reliance Anil Dhirubhai Ambani Group in Bengaluru.

BIG Cinemas at Gopalana Arch Mall in Bengaluru houses 3 contemporary screening rooms with
a seating capacity for 1019 people, offering moviegoers the finest customer amenities and a
dynamic screen presentation, along with a greater choice of films and viewing times. The
auditoriums are furnished with large screens, stadium-style seating in plush high-backed push
back sofas and Dolby sound systems. The company would also offer Movie Munchies, a unique
range of food and beverage offerings which have been developed in-house, exclusively for BIG
Cinemas guests.

Commenting on the occasion Ms. Archana Jhangiani, Head Brand Experience and Design
said, The development of BIG Cinemas in Bengaluru has been remarkable and we are honored
to present it as such a distinguished venue with a modern and contemporary feel to the movie
loving residents of the city. Through BIG Cinemas, we aim to reinvent the multiplex experience
for Bengaluru and provide world class amenities to our audiences.

BIG Cinemas is planning to further expand and strengthen its presence in Southern India by
adding 22 screens through launch of three new cinemas in Bengaluru, Coimbatore and
Hyderabad in 2010. The other two BIG Cinemas that will come up in Bengaluru is a 3 screen
multiplex located at Innovation mall and 8 screens megaplex at Whitefield.

Commenting on the occasion Mr. Ashish Saksena, COO, BIG Cinemas (West and South) said,
We are pleased to establish our presence in Bangalore and see considerable untapped
potential in Southern India which is a growth territory for us as we are expanding the BIG
Cinemas network in not just major towns and cities, but also are focusing on taking the brand
and finest cinematic experience to smaller territories which currently lack in good entertainment
infrastructure. We believe that everyone deserves to indulge in true cinematic experience the
BIG way.
BIG Cinemas has established a strong presence across Southern India with over 23 properties
and 44 screens spread across Karnataka, Tamil Nadu and Andhra Pradesh.

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BIG Cinemas has also successfully promoted South Indian movies across its global network
and today through its pan-US footprint, BIG Cinemas accounts for over 75% of Tamil and Telegu
box office collections from the US.
Big Cinemas is Indias largest cinema chain with over 500 screens spread across 115 cities in
India, US, Malaysia and Netherlands and caters to over 35 million consumers. BIG Cinemas
has been awarded the Entertainment Retailer of the Year honor at the India Retail Forum 2009
and has also been awarded International Exhibitor of the Year 2008 by CineAsia 2008 at
Macau.

On 8th March women get to watch their favorite movie for free at BIG Cinemas
as women are indulging in a girls day out watching free movies as BIG Cinemas, Indias
largest cinema chain celebrates International Womens Day on 8th March, 2010.
Offer: BIG Cinemas, invites all women to come and watch movies for free on Womens Day. To
avail the offer, women would have to arrive at the box office 45 minutes prior to the movie show
and collect their free tickets. They also get a chance to participate in a lucky draw and win gift
vouchers from kaya skin clinic and Titan Raaga.
BIG Cinemas had screened Road Movie, Teen Patti, Karthik Calling Karthik, Atithi Tum Kab
Jaaoge, Thanks Maa, My Name Is Khan, and Legion on Womans Day.

According to Mr. Ashish Saksena, COO, BIG Cinemas, "Women patrons, besides being our
most loyal customers are a prominent and growing customer demographic and at BIG Cinemas,
on the occasion of International Women's Day, through this celebration we would like to express
our gratitude and appreciation for their continuous support."
Big Cinemas is Indias largest cinema chain with over 500 screens spread across 115 cities in
India, US, Malaysia, Nepal and Netherlands and caters to over 35 million consumers. BIG
Cinemas is a division of Reliance MediaWorks Ltd and a member of Reliance ADA Group.

BIG Cinemas has also been awarded the Entertainment Retailer of the Year honor at the India
Retail Forum 2009 and has also been awarded International Exhibitor of the Year 2008 by
CineAsia 2008 at Macau.

BIG Cinema acquires 188 screens in 27 US cities

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Lalit K Jha/PTI / Washington April 26, 2010

In an effort to cash in on the craze for Bollywood films among the South Asia population, which
is estimated to be nearly four million in the US, the Big Cinemas has acquired 188 screens in
the country and is planning to expand further.
In little over a year, the Big Cinemas has acquired a chain of 188 screens in more than two
dozen cities in the US, covering almost all the major centers of South Asian population from
Manhattan and Edison in East Coast to Los Angeles and San Jose in California and Chicago in
the Mid-West.
By the end of the year, it plans to acquire about 250 screens across the US and expanding to
new centers of South Asian population like Florida and Texas, says Anil Arjun, CEO of Reliance
Media Works. BIG Cinemas is a division of Anil Ambani-owned Reliance Media Works and a
member of Reliance ADA Group.
The company now accounts for 20-35 per cent of Hindi features box office collections and over
70 per cent of Tamil and Telegu box office collections from the US.
Noting that North America is an attractive market for Indian films (Hindi, Tamil and Telugu) with
nearly four million south Asians with strong affinity to Indian films, Arjun said film distribution in
the US has been highly fragmented and disorganized.
"Limited number of prints, inadequate marketing and promotion and exhibition in screens that
are inadequate in terms of quality of ambience," he said. This previously meant that the
penetration of a movie in terms of admits vis-a-vis the Indian population was under nine per
cent, he said.
"That has now changed and there has been a major organized play in the marketing, promotion
and distribution of films in the US," Arjun said. Talking about its future plans, Arjun said BIG
Cinemas is setting up stand alone properties and cinemas in malls in the United States. Existing
properties are being taken over and being renovated by BIG Cinemas.
Arjun said not all its screens show Indian movies all the time. "It is mix and match." Close to 130
screens have Hollywood movies, while the balance 50 screens run Indian movies. "There is no
dedicated property for India or American movies," he said.
One of the recent big hits of the BIG Cinemas in the US was '3 Idots', which generated massive
revenue of $6.7 million, he said, adding that it is almost double in size of the past collections
'Om Shanti Om' at $3.6 million and 'Jodha Akbar' at $3.4 million

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METHODOLOGY

SWOT ANALYSIS of Big Cinemas

STRENGHTS

First mover advantage in the multiplex business in India

Updated technology
Premium positioning
Plays Hindi, English, Regional & foreign movies
Location strength
Ambience
Started the concept of a complete movie going experience
Market leader
Very strong brand equity
Original multiplex
Blend of retail, entertainment, leisure, dining.

WEAKNESSES
High cost perceptions
T.A very specific (not mass service)
Disjointed images for all PVR properties
Customer retention
Lack of loyalty offers
OPPORTUNITIES
First mover advantage
Growing family spendings on entertainment
Large film industry over 200 hindi films every year
Offers to create loyalists
THREATS
Competition blooming large
Governments interference
Entertainment Tax
Other Multiplexes as competition
Other ways of entertainment
Accused of increased crime rate
Piracy
No control over surroundings
Movies becoming bigger than the brand

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Porters Five Forces Model of Competition

Threat of New Entrants

Barriers to entry
Economies of scale
Product Differentiation
Capital Requirement
Switching cost to buyers
Access to distribution channels
Other cost advantages
Government policies
Incumbents defense of market share
Industry growth rate.
Determinants of supplier power

Supplier concentration
Availability of substitute inputs
Importance of supplier inputs to buyers
Supplier product differentiation
Importance of industry to suppliers
Buyers switching cost to other inputs
Supplier threat of forward integration
Buyers threat of backward integration
Rivalry among existing firms

Number of competition (concentration)

Relative size of competition (Balance)
Industry growth rate
Fixed cost vs. variable costs
Product Differentiation
Capacity augmented in large increments
Buyers switching costs
Diversity of competition
Exit Barrier
Strategizing stakes

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Determinants of buyer power

Number of buyers relative to sellers

Switching costs to use other products
Buyers profit margin
Buyers use of multiple source
Buyers threat of backward integration
Sellers threat of forward integration
Importance of product to the buyer
Buyer volume
Threat of substitute products

Relative price of substitute

Relative quality of substitute
Switching cost to buyers

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THREAT OF COMPETITORS
Big Cinemas currently faces competition from other companies in the Indian film
exhibition sector. Some of their competitors have greater financial resources than them and
therefore they may be in a better position than PVR to invest in Multiplex Cinema projects or to
sustain losses from such developments in the start-up stage. In the future, they may also face
competition from global entertainment companies if and when such companies make their foray
into the Indian exhibition sector. There are currently seven major competitors in the film
exhibition industry: PVR Cinemas; Inox Leisure Limited; Big Cinemas; Shringar Cinemas
Limited; E City Entertainment; Wave Cinemas; Cinemax India; and DT Cinemas.
Brief about competitors of Big Cinemas
Cinemax
Cinemax was incorporated on May 22, 2002 under the Companies Act as Cineline
Entertainment (India) Private Limited to primarily carry on the business of building, owning, and
operating Multiplexes, Theatres and entertainment centers. The name of our Company was
changed to Cinemax Cinemas (India) Private Limited on December 23, 2005. We were
converted to a public limited company by a resolution of the members passed at the AGM held
on June 12, 2006. The fresh certificate of incorporation consequent to the change of name of
our Company was issued by the RoC on July 27, 2006.

Cinemax was incorporated with its registered office at Acme Commercial Arcade, 4th Floor
Trikamdas Road, Kandivali (W) Mumbai-400067, which was subsequently shifted to 5th Floor,
349 Business Point, Western Express Highway, Andheri (East), Mumbai 400069 consequent to
the approval of the Board on March 28, 2006. Pursuant to the approval of our Board on August
25, 2006, the registered office of our Company was shifted from 5th Floor, 349 Business Point,
Western Express Highway, Andheri (East), Mumbai 400069 to 805, 8th Floor, 349 Business
Point, Western Express Highway, Andheri (East), Mumbai 400069, where it is presently situated.

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Cinemax had carried out a restructuring exercise, wherein seven of our group companies i.e.
Rupam Private Limited, Hariyash Theatres Private Limited, Kanakia Shelters Private Limited,
Kanakia Creators Private Limited, Vrushti Theatres Private Limited, Cineline Cinemas (India)
Private Limited, and Cineline Multiplex Theatres (India) Private Limited (hereinafter referred to
as the merged entities) were merged with us with effect from April 1, 2006. The High Court of
Bombay sanctioned the Scheme of Amalgamation on March 24, 2006. The restructuring
exercise was done with a view to consolidate the Theatres and Multiplexes operated by us
through various subsidiaries under the brand name of CINEMAX and also to facilitate cost
effective regulatory compliance. Some of the salient features of the Scheme of Amalgamation
are as follows.

The entire business and whole of the undertakings of Rupam Private Limited, Hariyash
Theatres Private Limited, Kanakia Shelters Private Limited, Kanakia Creators Private Limited,
Vrushti Theatres Private Limited, Cineline Cinemas (India) Private Limited and Cineline
Multiplex Theatres (India) Private Limited, as on the appointed date of April 1, 2006 was
transferred to and vested in our Company so as to become assets and properties of our
Company.
The entire equity share capital of Rupam Private Limited, Hariyash Theatres Private Limited,
Kanakia Shelters Private Limited, Kanakia Creators Private Limited, Vrushti Theatres Private
Limited and Cineline Multiplex Theatres (India) Private Limited was being held by our Company
and subsequently on the Scheme of Amalgamation becoming effective, stood automatically
cancelled. However, we along with Rupam Private Limited, Hariyash Theatres Private Limited,
Vrushti Theatres Private Limited and Kanakia Shelters Private Limited held collectively only

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71.64% of the equity share capital of Cineline Cinemas (India) Private Limited and the
remaining 28.36% equity shares was being held by the other shareholders, who were issued
twelve redeemable non-convertible Preference Shares of Rs 10 each of our Company for every
one equity share held by them in Cineline Cinemas (India) Private Limited.
Currently, Cinemax has four wholly owned subsidiaries namely Vista Entertainment Private
Limited (VEPL), Growel Entertainment Private Limited (GEPL), Cinemax Motion Pictures Ltd.
(CMPL) and Nikmo Finance Private Limited (NFPL), a wholly owned subsidiary of Growel
Entertainment Private Limited. Vista Entertainment Private Limited and Nikmo Finance Private
Limited operate our Multiplexes at Versova i.e Cinemax-Versova and at Kandivali (East) i.e
Cinemax- Kandivali (East) respectively.

Fame Cinemas
Movies, Trailers, Premieres and more Fame is a place of constant innovation.
Fame (I) Ltd (formerly Shringar Cinemas Ltd) is a company dealing with Distribution, Exhibition,
Multiplexes and Negative rights. It has been instrumental in bringing the highest quality of
entertainment to Indian audience with over 28 years of experience in distribution and over five
years experience in exhibition of films.

First Multiplex was launched in Andheri (W) Fame Adlabs and till date we have 25 multiplex
across India. Currently, we operate 93 screens and 26269 seats across 12 cities in India with
presence in states of Maharashtra, Gujarat, Haryana, West Bengal, Jharkhand and Karnataka.
We expect to roll out at least 9 screens further in the year 2009-10
The brand Fame (I) Ltd has stood for ethical, fair practices and transparent dealing over the last
several decades. This is the core strength on which all our businesses are built.
Entertainment an Experience - Fame Cinemas constantly endeavors to bring in the highest
quality of entertainment to Mumbais film going audience. Fame has transformed the experience
of movie lovers into a pleasant, very user-friendly and delightful experience. Given the
commitment to the quality of service & films being screened, there is little wonder then that,
Fame has a burgeoning set of loyal customers who love getting pampered here. Our mission is
to offer a world class viewing experience to the consumer through a chain of Multiplexes.

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The years between 2002 and 2009 witnessed what may have been the most significant
transformation in Indian film industry through Fame (I) Ltd.

We benchmark ourselves with global multiplexes, and strive to enhance our service offering in
line with the emerging trends globally. To provide exceptional consumer experience, we have
introduced the Gold Class screens which feature natural leather recliners, where each recliner
stretches to 150 degrees, super size screens, state of the art projection and sound systems.
Apart from popcorn and soda, we also offer specialty food, which can be ordered and delivered
on ones seat!
PVR Cinemas
PVR Cinemas leading and premium Multiplex Cinema Exhibition company. We pioneered the
multiplex revolution in India by establishing the first multiplex cinema in 1997 and the largest 11screen multiplex cinema in the country in 2004. Currently, our geographically diverse cinema
circuit in India consists of 33 Cinemas with 142 screens spread over Delhi, Faridabad,
Gurgaon, Ludhiana, Ghaziabad, Mumbai, Bangalore, Hyderabad, Chennai, Lucknow, Indore,
Aurangabad, Baroda, Allahabad, Chhattisgarh, Ahmedabad Latur and Raipur.

Taking India to the movies, the PVR brand has been successful in entertaining more than 16
million patrons in FY 2009-2010. We are the only film exhibition company in India to have had
an international film exhibition operator as a strategic investor.

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We were incorporated in April 1995 pursuant to a joint venture agreement between Priya
Exhibitors Private Limited and Village Roadshow Limited, one of the
largest non-U.S. cinema exhibition companies in the world with more than 1,000 screens under
operation. Village Roadshow's international experience enabled us
to begin our film exhibition business operations at PVR Saket, the first Multiplex Cinema in
India, using international best practices. In November 2002, as part
of Village Roadshow's planned divestment of its investments in 18 countries, it sold its entire
shareholding in our Company to Priya Exhibitors Private Limited.

The company operates a film distribution and production business through PVR Pictures, a
subsidiary of the company. PVR Ltd holds 60% shareholding in the
subsidiary with the balance 40% stake held by JP Morgan Mauritius Holding Ltd and ICICI
Venture in equal proportion (20% each). The movies co-produced by PVR
Pictures include "Taare Zameen Par", "Jaane Tu Ya Jaane Na", "Contract" and "Mere Khwabon
Mein Jo Aaye". Apart from the movies co-produced, some of the other
movies distributed by us include "Ghajini", "Golmaal Returns", "Dasvidaniya", "Sarkar Raj", "Bal
Ganesh", "Lions of Punjab", "Tum Mile", "Aviator", "Chicago", "Hannibal Rising", "Don",
Twilight, to name a few.

To ramp up our presence across the retail entertainment landscape, we have entered into a JV
with Major Cineplex Group, a leading Film exhibition and retail
entertainment company based out of Thailand, to bring lifestyle entertainment concepts to
Indian consumers. The Joint Venture enjoined setting up of bowling
alleys, karaoke centers, ice skating rinks and gaming zones across the country to enhance the
out of home entertainment experience for Indian consumers. bluO,
Indias largest bowling alley was set up in Gurgaon in 2009.

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Our long-term vision is to remain India' most premium and most preferred Retail Entertainment
Company. To achieve this vision, we continue to provide the highest
exhibition standards at our cinemas besides increasing the number of cinemas under operation
on a pan India basis. We further look forward to bringing allied
retail entertainment concepts to India to complement and complete the entertainment
experience for our consumers.

Inox Cinemas
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 has traversed its own path by bringing in a professional and service oriented approach to
the cinema exhibition sector. With strong financial backing, impeccable track record and strong
corporate ethos, 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.

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INOX currently operates 38 multiplexes and 144 screens in 25 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 Superbrand 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. Its merger with CCPL (89 Cinemas), has given
INOX access to an additional 9 multiplexes in West Bengal and Assam.
INOX was also chosen post a nationwide tender to design, construct and operate the
prestigious multiplex in Goa that hosts the International Film Festival of India.
All INOX cinemas have state of the art facilities in terms of modern projection and acoustic
systems, interiors of international standards, stadium styled high back seating with cup holder
arm-rests, high levels of hygiene, varied theatre food, a selection of Hindi, English and regional
movies, computerized ticketing and most importantly high service standards upheld by a young
and vibrant team.

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THREAT OF SUBSTITUTES
Threat from other sources of entertainment In addition, BIG CINEMAS faces competition from
other forms of entertainment including, television, film DVDs, newspapers, magazines, radio,
internet and theatre and advances in technology related to entertainment, such as MP3 and
multimedia messaging etc. These other forms of entertainment compete with cinemas for the
discretionary spending of patrons and for the ad-spend of advertisers. Accordingly, BIG
CINEMAS cannot be certain that they will not lose some of our cinema audiences to these
competitors or lose advertising revenue to them. If they are not able to compete effectively, their
business, results of operations and financial condition could be adversely affected. Films
constitute 28% of the total entertainment industry of Rs. 20000 crores in India. Television forms
a major 65%.
Piracy and home-viewing may reduce the number of cinema patrons. On account of inadequate
enforcement of anti-piracy laws in India, and on account of increasing home viewing options, the
number of cinema patrons may reduce in the future, which may have a material adverse effect
on the companys revenues and results of operations.
Television is expected to grow at a faster pace than cinema.

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THREAT OF NEW ENTRANTS

Costs of setting up a multiplex in India are coming down It can takes around Rs 40-50 crores to
set up a premium five-screen multiplex in a metro while the same in a smaller town costs
between Rs 1015 crore.
But owners are now realizing that if done right, a stripped down multiplex can be set up much
cheaper. Typically, fit-out costs (cost of doing up the interiors) range anywhere between Rs 2
crore to Rs 2.75 crore per screen. Owners have realized that cutting down on the fancy stuff
could bring down costs by half. DT Cinemas is toying with the idea of setting up low-cost
variants in smaller cities, like Nagpur or Nashik.
Though regulations maintain pressure on the compliance costs The Indian film exhibition sector
is currently regulated by a numerous laws some of which were written at a time when Multiplex
Cinemas were not common and hence these laws may not necessarily be relevant for Multiplex
Cinemas.
Some of the provisions of these laws include:
1. Requiring a minimum distance between the screen and the front row seats, which distances
were set based on large screens used in single-screen cinemas and not the smaller screens
used at most Multiplex Cinemas.
2. The permissible pressure at which the electrical current may be supplied to a projector, which
provision does not reflect the technological advances in respect of Multiplex Cinemas.
3. The reservation of playing times for a scientific film, educational film, news reel or
documentary.
4. Restrictions on ticket prices in certain states.
5. The minimum area of washroom that is required for setting up any cinema hall.
6. Provision of art gallery in the lobby area. Minimum of 100sqft area has to be kept reserved for
art gallery to display paintings and art work of any form.
SUPPLIER POWER
The cost of exhibition of a film varies across films and cinemas and if the multiplex company is
unable to obtain films on competitive terms its operational results may be adversely affected.
The film exhibition industry in India relies on distributors to obtain films for exhibition. For hiring
a film, the distributors share is normally a percentage of ticket receipts (net of entertainment
taxes) and the applicable percentage is negotiated on a film to film basis in respect of movies
produced in India and periodically for film releases by international studios. Distributors work on
a non-exclusive basis and there is competition between exhibitors to acquire films. Competitive
pressures may result in increasing the cost at which we acquire the rights to exhibit films. the
multiplex company is unable to recover such increased costs through higher box office
collections or other forms of revenue generation, our results of operations would be adversely
affected. Big Cinemas has itself diversified into film distribution and hedged this risk partially.

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Ansoff Matrix

Big Cinemas is trying to penetrate into existing markets. It is also expanding its reach across
new markets. Reliance Media Works has diversified into film distribution and set up business
and came out with their own film magazine The Plot.

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Segmentation, Targeting and Positioning

Segmentation
On the basis of customer preferences, we may classify Big Cinemas under the Clustered
category. This is owing to the fact, that out of the entire masses they have clearly defined their
target audience and aim to cater to them. Also, Big Cinemas is a Concentrated
Market because they only cater to the premium movie-going audience i.e. SEC A and SEC B.
Big 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 Big Cinemas Movie Goers are people with high
resources and can be classified as Experiencers who seek variety and entertainment. Spend a
comparatively high proportion of income on fashion, entertainment, and socializing.
Big Cinemas Movie Buffs generally have the following major tendencies:Go outside the home for entertainment -Participate in sports and other active lifestyles -Hard to
reach through other traditional media -lighter television and radio users, but heavy internet users
-Receptive to advertising in movie theatres, consider as part of their movie going experience
Consumer Behavioral Segmentation Usage rate: 1/3 of the population attends the movies one
or more times per month

Targeting
Big Cinemas being the first of its kind in innovation has always been a market leader and
therefore its offering to the customer is Innovative. Big Cinemas has premium pricing and they
target mainly SEC A and SEC B. Big Cinemas has brought to its customers the experience of
Luxury Cinema. Big Cinemas uses the concentrated method as they have target a much
focused audience out of he entire masses. Big Cinemas witnessed tremendous success Ebony
Lounge in Metro Big Cinemas Mumbai. Big Cinemas has also recently introduced the concept of
luxury viewing to Bangalore. Gold Class Cinemas have been introduced for the first time in
India, are two ultra luxurious exclusive auditoriums, each equipped with 32 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.
Big Cinemas chain use Differentiation method for pricing. It practices different price slabs for
different target audience. For instance, they have tickets ranging from Rs 50 (for the youth) to
Rs 140 (for the upper class i.e. Platinum).

Positioning
Big Cinemas had, and still has a very well planned market position. Its premium positioning
affects the customers perceptual positioning. Therefore, they decided on their marketing
strategy and pricing, keeping the target market in mind. In case of Big Cinemas, 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 Big
Cinemas comes across as a superior brand in terms of cinema viewing as well as the
experience.

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MARKETING MIX 7 Ps SERVICE PRODUCT/ SERVICE PACKAGE

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 customers perspective.
5 product levels are as follows:
Core Benefit is the MOVIES that the customer comes to a cinema hall for, along with the
attendant experience of Big Cinemas. The expected product in Big Cinemass case would be
ambience, hygiene, good service, parking, candy bar etc. BIG CINEMAS has augmented its
product offerings: Luxury cinema BIG CINEMAS has brought to its customers the experience of
luxury cinema. After the tremendous success of Ebony Lounge in Metro Big Cinemas Mumbai,
BIG 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 32 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 BIG CINEMAS executives themselves get in
touch with the concerned people.
E-booking and tele-booking
BIG CINEMAS also provides the facility of e-booking, which was first started by BIG CINEMAS;
it has now been copied by Satyam Cineplexs as well. It also offers telebooking
Parties at BIG CINEMASBIG CINEMAS has also started helping customers in planning birthday/kitty parties at BIG
CINEMAS. They have made BIG CINEMAS a wholesome entertainment experience than just a
movie watching spree.
Movie newsletter and magazine
To keep its customers hooked on to movies and to BIG CINEMAS, it has also come out with an
online newsletter called BIG CINEMAS newsletter is directly mailed to the subscribers and can
also be downloaded from their website. They have also launched a movie magazine called
Plot.
Movie vouchersThey have also taken out the unique concept of movie vouchers which people can use as gifts.
Many corporates 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.

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The following options are available in Delhi/NCR The Delhi BIG CINEMAS Admit One Voucher
costs Rs 150/- and is valid right through the week across all cinemas BIG CINEMAS Movie
Money Vouchers cost Rs 160/The following options are available in Bangalore Classic Mon
-Thur : Rs 100/All Week (including Weekends) : Rs 130/ Mon -Thur : Rs 130/All Week (including
Weekends) : Rs 150/Gold Class All Week (including Weekends) : Rs 350/- + Rs150/- for food
and beverages (optional)
The expected product in BIG CINEMASs case would be ambience, hygiene, good service,
parking, candy bar etc. BIG CINEMAS has augmented its product offerings: Luxury cinema BIG
CINEMAS has brought to its customers the experience of luxury cinema. After the tremendous
success of Ebony Lounge in Metro Big Cinemas Mumbai. BIG 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 32 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
BIG CINEMAS executives themselves get in touch with the concerned people.

THE SERVICE PACKAGE

The package concept of services product suggests that what you offer to the market is a
bundle of different services, tangible and intangible, but there is a main or substantive or core
service and around it are built the auxiliary/peripheral/facilitator.
It is important to note that facilitating 3services are mandatory and if these are left out, the entire
service would collapse. Yet another type called supporting services, dont facilitate the
consumption of core services but are used to increase the value and thus differentiate from the
competition.
Quality Assessment through mystery audit in case of BIG CINEMAS is focused on developing a
procedure for quantifying customers service quality can be measured in following dimensions:
Reliability
Ability to perform promised service dependably and accurately.
BIG CINEMAS is a very well established brand name, and the audience is given excellent
experience of the basic product i.e. the movie as well as the other elements involved. Hence, it
is very much capable of good delivery of the service it provides. There is no flaw in the quality of
the service and is always delivered on time.
Assurance
Knowledge and courtesy of employees and their ability to convey truth and confidence. Since
BIG CINEMAS is a high contact organization, the employees are well trained in all areas
regarding customer interaction and courtesy. BIG CINEMAS movies being a service, heavily
relies on its employees, as they are the only mode of direct communication made with the
customers. They are well trained and are definitely able to convey the confidence that the brand
name represents.

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Tangibility
Appearance of physical facilities, equipment, personnel etc BIG CINEMAS movies have a lot of
tangible elements present like the employees (staff), the movie halls, the candy bars, rest rooms
etc, all of which are highly maintained and well kept.
Empathy
Caring, individualized attention to the customer. Even though in a service like this customization
is not possible, the employees of BIG CINEMAS are always very helpful and provide the
customers with good assistance whenever needed. From the employees made to sit at the
ticket counter to the employee that guides customers to their respective seats in the cinema
hall, all employees deliver a very helpful attitude towards the target audience.
Responsiveness
Willingness to help customer with prompt service. The employees of BIG CINEMAS are fast and
prompt at delivering their service and are taught to cause as less inconvenience as possible to
the customers. If a customer places an order via telebooking / online reservation etc, the
delivery of the tickets is made well before the show timing at the customers doorstep. The
employees are well trained.

PRICE
To many customers, high price means high quality. Services pricing follows the price and
practices of pricing of goods and therefore are either cost based or market based. Within these,
categories of price may be profit oriented, government controlled, competition or customer
oriented. But the characteristics of services do influence the pricing and therefore different
methods of pricing are followed in their case.
BIG CINEMAS 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, BIG CINEMAS had, and still has a very well planned market position. Its premium
positioning affects the customers perceptual positioning. Therefore, they decided on their
marketing strategy and pricing, keeping the target market in mind. Hence, we may say that the
pricing as well pays a strategic role in their marketing plans. In case of BIG CINEMAS, 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 BIG CINEMAS 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 BIG CINEMAS 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 BIG CINEMAS gets.

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Even in slighter crowded shows, the occupancy rates as low as 35% reaches BIG CINEMASs
break-even points. BIG CINEMAS has a slightly different pricing system, which varies from Rs
45 to Rs 150 for different slabs of consumers. This has been done to mainly attract the youth
and to keep the concept of movie going still affordable at one of its chains. The pricing at BIG
CINEMAS 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.

PLACE / DISTRIBUTION
Services are generally created and delivered to the buyer at the same time; therefore creation of
time and place utilities is a vital function in services marketing. Irrespective of middlemen or
direct sales channel, the factor of location keeping in view the potential markets is the most
significant in channel selection and distribution. The issue of location here plays a very
important role, as all BIG CINEMAS are stationed at good locations in the city, which gathers a
large number of footfalls for them every day.
BIG CINEMAS usually open at an eventful yet untapped location, followed by which other retail
chains get opened around it as well. Their places are always well situated and are well linked.
BIG CINEMAS 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 telebooking. The only intermediary involved for procuring movies are Indian as
well as international movie distributors, by way of whom they acquire the movies.
Distribution of Movies
The Company has also recently forayed into the Distribution of Hollywood film titles in the
country through its 100% subsidiary, BIG CINEMAS Pictures. By virtue of its strong brand equity
and partnerships with major independent Hollywood studios like Miramax, Newline Cinemas etc.
that are not represented in India through their own offices, BIG CINEMAS has managed to
procure and distribute titles in the country. With the advent of the multiplex revolution across the
country, the company sees a great opportunity to fill up these upcoming multiplex screens with
Hollywood titles.
PROMOTION
Promotion is a very vital part of the marketing mix especially in the case of services. The
customer needs to trust or have belief in the service, as he has to pay for it pre-experience.
Therefore, it is very important to sell the service in the best possible way. Usually the objective
of promoting a service may be to create a brand image, establish a personal relationship with
the client and to create an impression of competence, honesty and sincerity to win the buyers
confidence in sellers abilities to deliver the service efficiently.
To promote these, the marketer generally employs indirect selling techniques, as it is usually not
possible to use the conventional promotion tools like advertising. Promotion activities like
community relations, event management, media blitz, and corporate identity programs have
relevance. 3rd parties like government, unions and interest groups are important, as they are
capable of influencing market access. BIG CINEMAS 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

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involved. Apart from that, they usually have contests pertaining to latest festivals like Valentines
Day, New Years Eve, Oscar Movies Week etc.
BIG CINEMAS also has a host of online promotional contests associated with movies.
They are also in collaboration with cellular services like Aircel have SMS and-win contests and
give out free tickets to the winners. Also, BIG CINEMAS 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 Jodha Akhbar, 3 Idiots, Raajneeti, Rock On
helps BIG CINEMAS relate better with its target audience i.e. the youth.
The whole BIG CINEMAS banner and its exterior environment including movie hoardings,
banners etc help promote the concept of movie viewing as well as BIG CINEMAS as a strong
and successful brand.
BIG CINEMAS also hosts premiere shows with leading movie stars visiting the various BIG
CINEMAS cinemas. They also host numerous fun events for children while screening
animations etc.
PEOPLE
EMPLOYEES, CUSTOMERS and OTHER CUSTOMERS
Service must be fully developed and internally accepted before its launched.
Attracting, developing, motivating, retaining employees
Measure & Reward
Stress
Team play
Leverage freedom factor
Prepare to perform
Offer a vision
Compete in talent
Know the customer
BIG CINEMAS indulges in the following for their EMPLOYEES:
Complimentary ticket on payment of entertainment tax amount at any point of time (2 days in
advance) to the employees, subject to availability.
Tickets to employees are given for: o 1+1 oneself and employees guest o 2 for immediate
family i.e. parents, spouse etc. This has been done to encourage movie going among
employees as well as customers.
Makes all employees train at different levels from time to time
Teaches employees to be helpful, polite, courteous to all patrons and co workers enthusiasm
and cheerful
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 BIG CINEMAS 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.

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 Given bright uniforms represents BIG CINEMAS. This is done to ensure uniformity of
appearance and to project a well kept image.
All employees are taught to deal with safety problems like accidents, fire, bomb threat, armed
robbery etc.
Certified first aid course given to all employees
All trainees are made to train at all departments like ticket sales, computer ticketing,
telebooking, sales enquiries, customer service skills, cash handling sales, credit card sales etc.
Special well kept rooms for the employees
Lastly, it is made sure that all employees represent BIG CINEMAS in the best way possible
and sell it as a strong and well-established brand.
Management Team
The company has a dedicated management team at the corporate level which looks after each
area of its business i.e. programming, marketing & event management, operations, business
development, projects and finance. It has about 30 employees at the corporate level. At the
cinema level the company has a strong team at each of its cinemas, ably headed by a Cinema
General Manager. He has a team of 50-60 employees at each cinema. The total employee
strength across all cinemas is about 300 employees. The company has had a good track record
of being able to attract top class management talent. 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.
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 us to tangibalise the service. . Therefore, it
is essential to manage physical evidence. Atmosphere helps to shape opinions. The building,
layout, colors of interiors, tickets, labels, logo of the organization etc help to formulate a good
unified corporate image / identity.

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Ambient factors relate to background condition, deign factors, on the contrary are visual stimuli
and social factors relate to interactive environment. The service factor has an impact on not only
the customers, but the employees as well. The interior and exterior of the premises is such so
as to project a hygienic and well-maintained image at all times. The administration offices,
booking offices, candy bars, conference rooms, auditorium, foyers, corridors, wash rooms,
staircases, walls, projector room, basement area all coordinated and hygienically maintained.
Both the external and internal ambience is very important and is maintained excellently, as it is
important to appeal to existing and even to the potential customers.
At BIG CINEMAS, it is equally important to keep employees happy. Therefore, even the
employees workplaces in the premises are coordinated with the whole halls ambience and are
lively.
Exterior The movie hoardings, movie schedules, computerized service, glass entrance, BIG
CINEMAS banner, deign of BIG CINEMAS building, parking etc all contribute to the external
environment.
Interior Seats, color coordination and combination (blue in case of BIG CINEMAS), hygienic
wash rooms, candy bars, corridors, stairs, sound and visual equipment, design of the hall,
ambience etc are all included here.

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Attention to detail and stress on high quality cinema viewing experience is evident from the
unique seating arrangement that ensures unobstructed viewing from anywhere in the
auditorium.
Plush, ergonomically designed seats have been installed to provide flexibility and ultimate
comfort to guests. Convenient cup holders have also been installed on every armrest. Edge to
edge screens and digital sound will contribute in creating the ultimate movie going experience.
The multiplex has an avant-garde lobby with studio effect interiors. Station concession counters
which offer customers a wide selection of the traditional movie going fare of sweet and salted
popcorn, hotdogs and soft drinks, as well as candy, nachos, fruit juices and Mineral water.
Peripheral possessed as a part of service purchased e.g. Ticket, popcorn Core Those that
cannot be possessed. E.g. The experience of the movie
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. The
company had a turnover of Rs 41 Crores in 2001-02, which is expected to rise to about Rs 60
Crores in 2002-03, and with the growth envisaged, the turnover in the next 3 years is expected
to be over Rs 250 Crores. IMAX BIG Cinemas Wadala 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.
SERVICE BLUEPRINTING
Service design is a complex task that can benefit from a more sophisticated version of
flowcharting known as blueprinting. Developing a service blueprint requires identifying all the
key activities involved in service delivery and production and specifying the linkages between
these activities. A central aspect of service blueprinting is to distinguish between what the
customer experiences front stage and the activities of employees and support process
backstage, where the customer cannot see them. Between the two lies what is called the line of
visibility. Standards can be set for each service activity but should be based on good
understanding of customer expectations. Below the line of visibility, the blueprint identifies key
actions to ensure that each front stage step is performed in a manner that meets or exceeds
those expectations. Service blueprints clarify the interactions between customers and
employees and how these are supported by additional activities and system backstage.
Because blueprints show the inter relationships between employee roles, operational process,
information technology, customer interactions, they can facilitate the integration of marketing,
operations, and human resource management within a firm Blueprinting also gives managers
the opportunity to identify potential fail points in the process that pose a significant risk of things
going wrong and diminishing service quality. Blueprinting the BIG CINEMAS experience To
illustrate blueprinting of high contact, people processing BIG Cinemas service, we examine the
experience of watching a movie in BIG Cinemas that enhances its core movie service with
variety of other supplementary services.

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The key components that we will include in BIG Cinemas experience blueprint:
1 Script for each front stage activity
2 Physical evidence for front stage activities
3 Line of interaction
4 Front stage actions by customer-contact personnel
5 Line of visibility
6 Backstage actions by customer contact personnel
7 Identifying failure points Identifying failure points Running a good movie experience is a
complex business and much can go wrong. The most serious fail points, marked by small F in a
circle, are those that will result in failure to access or enjoy the core product. Because service
delivery takes place over time, there is also the possibility of delays between specific actions,
requiring the customer to wait. A W within a triangle identifies common locations for such waits.
Excessive waits will annoy customers.
Blueprint of BIG CINEMAS is divided into three acts representing activities that take place
before the core product (movie) is encountered; delivery of core product, activities after core
product is encountered.
The stage or service escape includes both interior and exterior of BIG CINEMAS
ACT 1:
Before the core product is encountered In this particular act, the first act begins with making
ticket booking or reservation- either by arriving at BIG Cinemas in person or on telephone with
an unseen employee. Also tickets can be booked online called as arms length interaction. If
tickets are booked according to first two procedures then impression is created on the evidence
of respondents voice, speed of response, and style of the conversation and if booked online
then impression is made by the outlook of website and how easy it is to book a ticket online.
The act concludes with customer entering the respective auditorium and being seated. These
six steps constitute our customers initial experience of BIG Cinemas, with almost each involving
an interaction with an employee. By the time customers reach the auditorium; they have been
exposed to several supplementary services, including booking, eating counter, seating. They
have also seen sizable cast of characters, including contact personnel and many other
customers.
ACT 2:
Delivery of core product In this act, our customers are finally about to experience the core
product they came for, that is to watch a movie. As the customer enters the auditorium its
important how the employee interacts and guides the way to the customers respective seats.
Light and sound effects of theater are one of the most important aspects of good movie
experience. Also interval time of the movie is important time period to provide service. Because
generally during interval time people either go out to eat something or goes to washroom or
both. So if they go to eat then most important dimension is not only quality of food and drink,
availability, pricing but also how promptly it is served and style of service. Here backstage
activities plays really important role like to keep check on availability of food etc and if go to
washroom then hygiene is the most important dimension.

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ACT 3:
The movie may be over but much still is taking place both front stage and backstage like getting
ready for next show. The core service has now been delivered, and we will assume that our
customers are happily moving out of BIG Cinemas. Act 3 should be short. The action in each of
remaining scenes should move smoothly, quickly, and pleasantly with no shocking surprises in
the end.

Understanding Big Cinemas as a Service Brand

Service brands
The term product also includes intangible services along with tangible physical products.
The world of commerce is made up of a basic agricultural sector, a manufacturing sector
and a service sector. The services undertakes activities which aid the trading and
commercial activities e.g. banking services, transportation services, hoteliering
consultancy services, etc. There are also personal services like beauty parlors and
dentists clinic.
The cinema industry is also a form of a service based product.
Characteristic of a service based product
Intangible
As services are not physical objects, they cannot be touched or smelt. Physical goods can
be touched, seen, tasted, Smelt or heard before they are bought.
Perishable
A service is perishable to a higher degree. If not used, services are lost forever.
Services cannot be stored. For e.g. A seat in the plane for a particular destination must be
occupied before the flight commences. If it remains unoccupied it is a waste. An
unoccupied hospital bed or unutilsed credit facility is thus economic wastes. They cannot
be restored or reused.
Inseparability
Services are not separable from the persons who provide them. Dancers, musician,
dentist, and doctors create offer the services at the same time. This inseparability of
services creates challenges for the service marketers.
Heterogeneity
Services are not easy to standardize because they are heterogeneous by their very
nature. Even when the same price is paid for a particular service, the same level of quality
cannot be ensured.
Services are predominantly performed by people. It is difficult therefore to maintain the
same standard.
Ownership
The goods change hands on the price being paid. The buyer gets a title of ownership to
the good. However, services are not physical in nature. So we can have only access to
them. We can make use of services without any rights to ownership. Thus medical
services at a hospital can be used on payment of a price without any claim on the
ownership of the hospital bed. Similarly the services at a cinema hall can be used on
payment of the price without claiming the seat.

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Simultaneity
Service providers bring the customers to the point of service delivery or they themselves
Go to the user for the delivery of service. This puts a natural limitation on the size of
geographical area being covered by the services. Goods are produced and then sold, and
finally consumed. Service are sold first, then simultaneously produced and consumed.
The consumer participates in the production process. It greatly influences his perception.
Quality Measurement
It is difficult to quantify the total purchase of a service. We can put a quality rating on hotel
food, but the delivery of service by the waiter, or the ambience in which the food is served
are difficult to quantify. Services are judged on the basis of overall satisfaction of the
users.
Physical goods can be checked for quality before they leave the supplies. Service quality
can be assessed only when consumers come in contact with the staff. Staff training is an
important area for the service brands.

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CONCLUSIONS & RECOMMENDATIONS

The cinema industry (Exhibition) is a service based product. Hence more emphasis has to
be given to ensure customer satisfaction. The services must be designed keeping in mind
the requirements of the customers as they are the end users of the services and if there is
no demand for the services then the business will not be profitable.
The below mentioned recommendations will explain the same
Loyalty program (Membership offers)
Big Cinemas has introduced many offers for its customers but till now there is no such
offer which has membership offer for its loyal customers. This will ensure the retention of
existing customers and also bring in new customers. The customers are always in search
of discounts, benefits, free gifts, and a loyalty program will give the customers of Big
Cinemas just that. The offer to be designed that the customer is given the benefits on the
basis of the number of times he watches movies at Big Cinemas. There can be a system
of redemption of points, and free gifts or benefits on watching movies at Big Cinemas.
Service should be of the standard of the price charged.
Many customers feel that some of the services inside do not command the price that is
charged for them, e.g. even the first two rows in the theater command a price of 150/-.
Most people feel this is not a good 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
is undue premium that is being charged. Option of wholesome meals must be made
available at all the cinemas of Big Cinemas.
Increasing the potential of a movie
Every movie has its own potential to do business at the Box Office. But few alterations
from the exhibitors will support the film to sustain for more weeks in cinema halls.
Once a movie is past its prime and running in the second or third week where sales are
low, Big Cinemas could do promotional campaigns and reduce the prices marginally for 1
show a day. The students form a major percentage of audience for most of the moves.
Hence offering discounts of students can be a added advantage for any movie to increase
its business.
Sports as option to replace movies in cinema hall.
Cricket is an obsession in India. Big Cinemas could capitalize the same by screening
crucial matches like India Pakistan match. The growing popularity of soccer and other
sports can also be tapped. This would be an instant hit even at higher prices charged.

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LIMITATIONS
The cinema industry is a business that involves too many factors. And hence the business of
movies may not be so profitable at all times .There are many limitations that could be the cause
for the cinema industry to not do a good business even though there are hundreds of films
releasing every year.
The below mentioned points explain the same

The number of films releasing in a year are increasing every year. That means many
films are releasing every week unlike in the past where only one film would release in a
month or two. This is creating a stiff competition at the start itself for the movies to make
profits at the box office.

The pricing for per ticket is not entirely the decision of the cinema hall. The distributors of
the film also influence the decisions and in many cases distributors make it mandatory
to charge high prices (This was seen during the release of the film 3 Idiots the prices
were at an all time high)

The technology has been so fast developed and has also affected the movie business.
The latest films are available on the internet; pirated DVDs are sold so cheap in the
market hence the number of customers coming to watch a film in a cinema hall is very
less.

The government tax structure is also a factor that is causing the price hike in cinema
hall. The tax should be bare minimum for entertainment. This will benefit the films and
the customers and also the cinema hall.

Bibliography

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Web Sites referred to compile the data

1. www.nfdcindia.com
2. www.indiaonline.in
3. www.thehindubusinessline.com

Books referred for the project research1) Marketing Management, 13th edition, by Philip Kotler and Kevin Keller
2) Marketing Management Global Perspective Indian context, by V.S Ramaswamy & S.
Namakumari
3) Case Studies In Marketing: The Indian Context by Srinivasan, R
4) Strategic Marketing Problems: Cases and Comments by Roger A Kerin, Robert A
Peterson
5) GLOBAL MARKETING STRATEGY by Susan P Douglas
6) Marketing Management Text & Cases by S Jayachandran, Chennai
7) Services Marketing the Indian perspective text & cases by Ravi Shanker

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