Professional Documents
Culture Documents
INTRODUCTION ..................................................................................................................... 2
Background of the study ............................................................................................................ 2
OBJECTIVE OF INOX ............................................................................................................. 3
FACTORS WHICH MAKE INOX UNIQUE ........................................................................... 3
Objectives of the study............................................................................................................... 3
Discussion .................................................................................................................................. 4
Strategies of PVR CINEMA ...................................................................................................... 4
Expansion ............................................................................................................................... 4
Future outlook ........................................................................................................................ 4
raising exhibition standards .................................................................................................... 4
Improving Advertising Revenue per Screen .......................................................................... 5
Strong visibility from new screen .......................................................................................... 5
MARKETING MIX- 4P’S......................................................................................................... 5
PRODUCT ............................................................................................................................. 5
PRICE..................................................................................................................................... 5
PLACE ................................................................................................................................... 6
PROMOTION ........................................................................................................................ 6
CONCULSION .......................................................................................................................... 6
References .................................................................................................................................. 7
Books ...................................................................................................................................... 7
Websites…………………………………………………………………………………… 7
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INTRODUCTION
The Indian entertainment sector is among the largest in world, contributing about 1% to India’s
GDP. Also, according to the FICCI-CII report, the Indian entertainment sector grew from US$
7.7 billion in 2007 to US$ 19.0 billion in 2015, at a CAGR of 12% p.a., making it one of the
fastest-growing entertainment sectors in the world, the reason behind which can be favorable
demographics, increasing literacy rates, development of technology, and governmental support.
This research paper is about marketing strategy of INOX CINEMAS which is India’s one of the
largest cinema exhibition company currently having 108 properties, 425 screens in 57 cities, with
a capacity of 109,406 seats. Though PVR CINEMAS are the leader among the multiplex
industry, INOX is a market challenger with 365 screens. The Indian film industry is the largest in
the world, with around one thousand two hundred movies released every year in fifty-two
languages attracting the Indian public towards the multiplex culture at an increasingly faster rate.
The aim is to find out the reason why people will choose INOX among its various competitors.
In terms of geographical distribution, in the East, INOX had the highest presence (74%),
followed by PVR Cinemas (20%) therefore this research paper is aimed at finding out various
strategies that made to flourish INOX CINEMAS in the multiplex industry.
The Jain Family trust with business started more than 90 years ago. In the 1920s, Shri Siddhomal
Jain established Siddhomal and Sons, a successful paper and newsprint trading business. In the
1960s, his son Devendra Jain, a history honours graduate from Delhi's prestigious St Stephen's
College, decided to go beyond the trading business and become an industrialist. He saw great
promise in the business of extracting, liquefying and selling gases from natural air as these
industrial gases were widely used in steel, manufacturing as well as the healthcare sectors - all of
which were flourishing in India at that time.
In order to better understand the business, He teamed up with his brother Lalit, travelled to
Germany and the US, visited companies that were already in the business, bought an oxygen
plant from Germany and established Industrial Oxygen in Pune in 1963.
Industrial Oxygen's journey of over five decades has been punctuated by many firsts and
diversifications - right from setting up plants for manufacturing refrigerants, PTFE resin and
other chemicals and gases to building a brand called INOX - the most popular chain of
multiplexes in India. Today, the USD two billion INOX Group runs six different businesses -
and still generates much of its revenue from natural air. The Jain family, first through Mr.
Devendra Jain's sons Pavan and Vivek Jain and now through grandsons Siddhartha & Devansh
Jain, continues to be involved in every aspect of the business.
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Currently the Group's business includes leadership positions in industrial gases, fluorocarbons,
multiplexes and cryogenic engineering. The Group has two highly successful listed companies
and alliances with global majors including Fortune-500 companies. Together, the Group
Companies employ more than 10,000 employees nationwide, and have an asset base of more
than INR 9,895 Cr as of March 31, 2016. The Group has also actively participated with
governments and non-governmental organizations for societal growth and development. All of
INOX Group's charitable activities & social initiatives are conducted through Siddhomal
Charitable Trust.
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DISCUSSION
The entertainment sector has been booming since the last decade. This has mainly been due to
the changing spending pattern among consumers. The multiplex sector is an oligopolistic market,
with a few players dominating the market, and fierce competition between these players. Several
acquisitions have taken place in the sector since 2011, adding to the consolidation in the sector.
The results of the analysis indicate that INOX and Carnival Cinema are very close competitors.
Though they have recently acquired Satyam Cinema, INOX still has very less presence in North,
so that they should try to expand their presence further in the North through horizontal and
vertical integration.
Expansion
INOX also acquired Satyam Cinema through horizontal integration and increased its presence in
the North. INOX had very low presence in the North, and hence took over New Delhi-based
Satyam Cinema to expand its geographical territory. INOX acquired Satyam for Rs. 182 crore in
2014, adding 38 screens and Fame Cinemas for Rs. 153.6 crore in 2011, adding 95 screens to its
total. INOX Leisure, the second largest cinema exhibitor in India after PVR, has entered into
agreements with real estate developers and upcoming shopping malls to expand its presence.
IMPACT: There has been very aggressive acquisition activity in the multiplex industry since
2011. This has dramatically changed the face of the multiplex industry in last half a decade. A
mix of organic and inorganic expansion has enabled us to have an entrenched position in the
domestic multiplex industry and emerge as one of the largest multiplex players in India with
approximately 8% market share in domestic box office collections.
Future Outlook
Our key strategy is to go beyond movies to reach customers in newer ways, maximize revenue per patron
and increase the frequency of movie-going by driving downstream revenue opportunities. We will
continue to maximize our revenue streams outside of the traditional theatre exhibition model, with a clear
focus on driving improvement in footfall monetization. Strong content and higher footfalls will assist in
upscaling advertising revenues. For increasing profitability, we are focusing on high value, long term
deals and taking initiatives to monetize on-screen and off-screen advertising revenue, such as monetizing
our lobby areas to improve our advertising revenue per screen.
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seating and state-of the-art projection and sound systems. We are consistently improving the
quality of our theatre assets by renovating existing lobbies and screens and adding new screens
to increase screen density. We are upgrading our locations and focusing on improvements that
have the most tangible impact on our guest experience and our bottom line.
IMPACT: This will further enhance the cinema viewing experience and further strengthen our
position in the industry.
IMPACT: We expect that higher advertising rates will be accepted by advertisers on the back of
strong content, leading to higher footfalls.
IMPACT: Footfalls are being driven by the addition of more screens and regular organic growth.
Visibility from new screens is being backed by signed agreements.
MARKETING MIX-4P’S
PRODUCT INOX believes in serving to its best potential and hence offers quality products and
excellent services to its customers. INOX has control over most multiplex screens in India. It has
been involved in designing, constructing and operating prestigious multiplexes that are equipped
with state-of-the-art facilities like modern projection, latest acoustic systems, international
standard interiors and high-back and comfortable stadium-styled seating arrangements with arm-
rests having cup-holder options. A very high standard of hygiene is maintained with regular
cleaning of theatres as well as washrooms. It also offers diversified food and beverage of non-
alcoholic variety at the theatre.
PLACE INOX is one of the recognized brand names in the entertainment industry and according
to the recent survey has its operations spread over most parts of India. It operates nearly four
hundred and forty-six screens and one hundred and fifteen multiplexes in an estimated fifty-
seven cities like Rajkot and Vadodara in Gujarat, Ajmer, Jaipur and Udaipur in Rajasthan,
Rohtak in Haryana, Mumbai, Thane and Pune in Maharashtra, Kolkata, Siliguri, Durgapur,
Burdwan and Darjeeling in West Bengal, Chennai in Tamil Nadu, Bangalore in Karnataka,
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Lucknow in Uttar Pradesh, Hyderabad in Andhra Pradesh, Bhubaneswar in Orissa and Bhopal in
Madhya Pradesh.
PRICE INOX faces a strong competition from other rival companies and this might result in
less market share and ultimately profit margins. Moreover, it has also decided to penetrate in
areas that are situated far and wide. INOX has taken into consideration all these factors and has
adopted a competitive as well as penetration pricing strategy so that it can deal efficiently with
its competitors as well as solve the problem of new market shares. It has a mid-premium
pricing policy that helps in keeping the rates of various products and services like tickets and
food items reasonable and affordable. In order to increase its revenues, it organises special
screenings of new and popular movies so as to tap new section of customers. One of the most
important sources of revenue for INOX is the advertisements it shows at periodic intervals .
PROMOTION INOX has a high brand recall and has adopted several promotional activities to
maintain its visibility amongst customers. Its shows are advertised via newspapers, leaflets and
hoardings. Offers and incentives are advertised at the start of a week so that people can reap its
benefits. INOX also advertises extensively via a social platform, News about timings, prices and
new movies are forwarded to its site and other related portals so as to provide information
beforehand. INOX has been the recipient of several awards and recognitions. It was
awarded ICICI Entertainment Retailer of the year Award in the year 2005, TAAL Multiplexer
Award in the year 2007 and most recently in the year 2016 Technology Adopter of the year.
CONCLUSION
The main purpose of doing the research was to fulfill the objectives of INOX cinemas based on
the strategies formulated by the strategy makers of the company. INOX are expanding strategically
to compete with each other and with PVR which is the only best multiplex as compared to INOX.
The strategies formulated also works towards the marketing mix of INOX. INOX are constantly
working towards raising the bar for operational excellence and a national footprint to sustain our
industry leadership. In 2016, we crossed the mark of are one of the first companies to develop the
multiplex concept in India. Our vision is to become India’s largest multiplex operator in every
aspect – from quality and choice of cinema to varied services offered.
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REFERENCES
Books
• Marketing management by Philip Kotler.
• Movies first PVR magazine.
Websites
• Google scholar
• www.economicstimes.com
• www.inoxmovies.com