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A PROJECT REPORT ON

“PVR CINEMAS: MARKETING STRATEGY”


SUBMITTED BY: SATISH SINGH )
SESSION: 2007-2010
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ACKNOWLEDGEMENT
The present work is an effort to throw some light on “PVR Cinemas: Marketing Strategy” . Th
With deep sense of gratitude I acknowledge the encouragement and guidance received by ………….
SATISH SINGH
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CHAPTERS:
I.
Acknowledgement………………………………………………..2
II.
Entertainment Industry Overview……………………………...3 a. Film and Exhibition Industry Overview…………
III.
PVR Cinemas: About the Company…………………………..19
IV.
SWOT Analysis…………………………………………………26
V.
Porter’s Five Forces Model ……………………………………27
VI.
Ansoff Matrix…………………………………………………..36
VII. STP Analysis……………………………………………………40
VIII. Marketing Mix: 7 P’s………………………………………….44
IX.
BCG Matrix……………………………………………………60
X.
Recommendations…………………………………………….61
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ENTERTAINMENT INDUSTRY
Over the last decade, India has registered the fastest growth among major democracies and i
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Indian Film and Exhibition Industry Overview
The Indian film industry is the largest film industry in the world in terms of the number o
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Although over 90 years old, the Indian film industry was only accorded the status of an ind
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The film industry comprises three sub sectors:
• Film production, which involves the making of movies; Over 900 Indian produced films were
the most popular films in India and account for over 40% of the total revenues of the India
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• Film exhibition, which involves the exhibiting of movies in cinemas. The Indian film exhi
Inadequate Number of Screens In India, the number of screens per million of population is j
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Concentration of Cinemas in Southern India Southern India accounts for a majority of the ci
Major Players in Indian Film Industry
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Indian Film Industry
Players Zee Telefilms Adlabs Films AVM Productions Mukta Arts Rajshri Productions Shringar
July 2005
a X Present Not present
Production Distribution Exhibition a a a a a X X a a a a a a a a a a a a X X a a X
PEST ANALYSIS
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Economic
The Indian Entertainment Industry is one of the fastest growing sectors of the Indian econo
Increase in disposable income in the hands of an ever expanding Indian middle class Multipl
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From 1999 to 2003, the average Indian household increased its spending on movies and theatr
Social
Movie watching is becoming an experience more than just a casual outing with the family. Th
entertainment and watching a movie for leisure. The movie experience goes much beyond just
Increase in Number of High Grade Hindi Films Demand for a particular movie is generally dri
Increasing corporatisation of the film production sector should result in an increase in th
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Political
The year 2004 also witnessed a change in the political scenario of the country with a posit
converted into Multiplexes and new Multiplexes being established as part of shopping comple
In order to encourage investment in the film exhibition sector, many state governments have
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with certain conditions specified by the relevant state. A synopsis of the key elements of
Technological
Film Distribution Holdups One of the main features of the Indian film industry that differe
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percentage of the average ticket price in India, distributors have adopted a policy of rele
cinemas within the first weeks of their release without incurring additional costs to produ
Challenges Faced by Transition to Digital Cinema in India The digital projection technology
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ABOUT THE COMPANY
Priya Exhibitors (p) ltd is a part of the diversified Bijili Group, which has
interests in transport, finance and construction sectors all over India. After a downturn i
The company was conceived as a Joint Venture between the Bijli family, headed by Mr. Ajjay
of 300 seats, the all new single screen auditorium has been renovated and refurbished to br
PVR IN BANGALORE PVR Cinemas has opened India s biggest multiplex (11 screens) in Bangalore
PVR FIRSTS
• • • • • • • • • • •
First to launch a multiplex in India - PVR Anupam Saket, Delhi First to launch India s bigg
PVR has also ventured into the business of film distribution and set up PVR Pictures, a ful
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Ajjay Bijli, Managing Director, PVR Limited, was conferred ‘The Theatre World Newsmaker of
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PVR AS A BRAND PVR has successfully assimilated the Standard operating business and operati
BU S IN E S S M OD E L
Hedged on Real Estate
• •
Anchor Tenant in FECs
• •
Widened basket of revenue Streams
• • •
Service Model No Real Estate Investments Rentals: Lower fixed rentals, due to advantage of
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Minimizing real estate risk and Maximizing services
RELATIONSHIP WITH VILLAGE ROADSHOW In 2002, Village Roadshow was undergoing a strategic and
Village Road show’s inability to support the growth plans of PVR, the Indian promoters offe
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SWOT ANALYSIS
STRENGHTS
First mover advantage in the multiplex business in India Updated technology Premium positio
WEAKNESSES
High cost perceptions T.A very specific (not mass service) Disjointed images for all PVR pr
OPPORTUNITIES
First mover advantage Growing family spendings on entertainment Large film industry – over
THREATS
Competition blooming large Government’s interference Entertainment Tax Other Multiplexs as
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THREAT OF COMPETITORS PVR Cinema currently faces competition from other companies in the In
COMPANY PVR Inox Liesure Adlabs Films Srinagar Cinema Wave Cinema E City Entertainment Tota
No. Of Properties 7 5 4 3 3 3 25 34%
No. of screens 34 25 14 14 13 14 114 41%
No. Of seats 7,333 7,344 5,666 4,588 4,380 3,952 33,263 37%
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Major Competitors • DT CINEMAS The DLF group, one of the largest real estate co’s with a tu
plan to add at least 2-3 sites every year on a rolling programme. By March 2004 Satyam will
PROMOTIONS
Recently, Jaypee Siddharth tied up with Satyam Cineplexes with an aim to provide some “exci
Café Coffee Day, a leading national retail chain of cafés, as part of its 2nd anniversary c
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• WAVE CINEMAS Wave cinemas were launched on the 27th September 2003. Wave is located at –
THREAT OF SUBSTITUTES Threat from other sources of entertainment In addition, PVR faces com
some of our cinema audiences to these competitors or lose advertising revenue to them. If t
THREAT OF NEW ENTRANTS • Costs of setting up a multiplex in India are coming down It can ta
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But owners are now realising that if done right, a stripped down multiplex can be set up mu
SUPPLIER POWER The cost of exhibition of a film varies across films and cinemas and if PVR
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is negotiated on a film to film basis in respect of movies produced in India and periodical
BUYER POWER PVR was the first to open a multiplex in India. It was one of its kind and due
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PVR cinemas is trying to penetrate into existing markets. It is also expanding its reach ac
MARKET PENETRATION AND DEVELOPMENT
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Beyond the existing markets, PVR is contemplating implementing new multiplex projects in De
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DIVERSIFICATION PVR has also ventured into the business of film distribution and set up PVR
operates under the PVR Pictures entity and has exclusive distribution rights in Delhi, Utta
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Segmentation, Targeting and Positioning
Segmentation On the basis of customer preferences, we may classify PVR under the Clustered
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Market because they only cater to the premium movie-going audience i.e. SEC A and SEC B. PV
Consumer Demographic Segmentation Age: 61% between 18 and 49 Gender: 47% Males / 53% Female
Consumer Psychographic Segmentation PVR Movie Goers are people with high resources and can
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1. 2. 3. 4. 5.
WHAT? What benefits that the customer seeks? – Complete moviegoing experience. Factors infl
HOW? 1. How does customer buy the product? – Online / Telebooking / In person 2. How long d
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Targeting PVR being the first of its kind has always been a market leader and therefore its
PVR had, and still has a very well planned market position. Its premium positioning affects
MARKETING MIX – 7 Ps SERVICE PRODUCT/ SERVICE PACKAGE
A product (in the marketing context) may be tangible, intangible or both. In case of servic
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E-booking and tele-booking PVR also provides the factility of e-booking, which was first st
Movie newsletter and magazine To keep its customers hooked on to movies and to PVR, it has
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The following options are available in Delhi/NCR The Delhi PVR Movie Money Voucher costs Rs
THE SERVICE PACKAGE The “package” concept of services product suggests that what you offer
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service it provides. There is no flaw in the quality of the service and is always delivered
PRICE
To many customers, high price means high quality. Services pricing follows the price and pr
PVR when started off had a huge advantage of being the only one of its kind in Delhi to beg
PLACE / DISTRIBUTION
Services are generally created and delivered to the buyer at the same time, therefore creat
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location keeping in view the potential markets is the most significant in channel selection
PROMOTION
Promotion is a very vital part of the marketing mix especially in the case of services. The
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promote these, the marketer generally employs indirect selling techniques, as it is usually
They are also in collaboration with cellular services like Airtel have SMSand-win contests
PVR also hosts premiere shows with leading movie stars visiting the various PVR cinemas. Th
A funfilled afternoon was organised at PVR Saket on 3rd Nov 05 during the show of animated
PVR organized a rendevous with French Cinema from 21st-27th October 2005. The glitterati fr
It also organizes socially responsive events. It organized a movie screening for the childr
PEOPLE
EMPLOYEES, CUSTOMERS and OTHER CUSTOMERS Service must be fully developed and internally acc
Measure & Reward Stress team play Leverage freedom factor Prepare to perform
Offer a vision Compete in talent Know the customer 53
PVR indulges in the following for their EMPLOYEES: • Complimentary ticket on payment of ent
employees are given full details on what they are representing and informed all about PVR t
Management Team The company has a dedicated management team at the corporate level which lo
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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 o
PHYSICAL ENVIRONMENT
AMBIENT FACTORS Air quality Quality of scent Degree of circulation
DESIGN FACTORS
SOCIAL FACTORS Appearanc e, Beheviour and number of service personnel Quality & quantity of
Aesthetics Architecture, colour scheme, material etc) Functional dimensions of design in te
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Ambient factors relate to background condition, deign factors, on the contrary are visual s
Peripheral – possessed as a part of service purchased e.g. Ticket, popcorn Core – Those tha
PROCESS
It was the first cinema company to introduce computerized ticketing through use of internat
SERVICE BLUEPRINTING Service design is a complex task that can benefit from a more sophisti
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blueprint identifies key actions to ensure that each front stage step is performed in a man
The stage or service escape includes both interior and exterior of PVR ACT 1: Before the co
move smoothly, quickly, and pleasantly with no shocking surprises in the end.
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RECOMMENDATIONS
Technological Innovation
When PVR came into being it was at the forefront of the technology involved in the Movie bu
Once inside...Service must match the price charged…
Many of the audiences feel that some of the services inside do not command the prices that
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improve the movie going experience as people would spend greater amount of time in the thea
Expanding reach…
Once a movie is past its prime and running in the second or third week where sales are low,
Riding high on sports…
Cricket is an obsession in India. PVR could capitalize the same by screening ‘hot’ matches
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