SYNOPSIS

“A STUDY ON MARKETING STRATEGY OF INDIAN

MULTIPLEX CINEMA INDUSTERY”

Submitted to Bangalore University

In partial fulfillment of requirement for the degree of
Master in International Business
By

NAME: Ullas Jose

Register Number: 09SLMIB004

Under the guidance of

MR.ARAVIND

THE OXFORD COLLEGE OF BUSINESS MANAGEMENT,

4th SECTOR, HSR LAYOUT, BANGALORE – 560102.
2009-2011
TITLE
A study on Marketing Strategy of Indian Multiplex Cinema Industry

INTRODUCTION

The Indian Multiplex Cinema Industry is dynamic business environment with the
frequently changing tastes of cinema patrons and perishable nature of the product. The
single screen theater of the past has given way to multi-screen theaters, and
acquisitions have reduced the number of industry participants . Theater customers are
demanding more than just the movie; they are requesting stadium seating, gourmet
food and beverages, and luxurious setting s. This has caused dramatic expansion in
theater capacity, resulting in the creation of multiplex (multi-screened) theaters.

Film patrons have consistently demanded a high-quality theater experience including

updated sound systems, large screens, and comfortable seating. In recent years,
theater owners (theater exhibitors) have built a number of multiplex theaters to replace
older facilities and meet increasing demands. However, several reports contended that
theater profitability on a per-screen or a per-theater basis has not justified the capital
investments required to fund new construction and new technology. multiplxes
constitute just 1% of the total number of cinema halls, and 4-5% of the 12,900 screens,
in India, the industry is talking about the end of single screens. Single screens, with their
low quality ambience, would find it tough to survive in the long run. The decrease of
revenues per screen and, at the same time, growth of revenues per film, may be
indicative of the fact that the theater owners have expanded the theater capacities
without properly identifying and scheduling the best films for their theaters.
STATEMENT OF THE PROBLEM

The cinema exhibition industry in India is growing at 10% per annum driven by
multiplexes, which are expanding rapidly in major metropolitan cities as well as second
and third tier cities. Favorable demographics in a cinema-crazy nation, tax exemptions,
and quality locations such as malls, are driving growth of multiplexes in India.
 
 The report provides a snapshot of the market including the two segments multiplexes
and single screen cinemas. An overview gives a quick picture of the market with
estimated market size, growth rate and theatre distribution in India. Various business
models adopted by Indian multiplex operators are presented along with typical revenue
streams and cost base. An analysis of drivers reveals that on the supply side - growth in
film industry, improving real estate supply, and favourable tax exemptions have help in
growth of this sector while on the demand side favourable demographics, rising income
levels and willingness of people to spend on entertainment are increasing footfalls. The
key challenges identified include slowdown in economy, alternate modes of
entertainment, development delays, piracy and uncertainty over entertainment tax
exemptions.
 
 The industry is characterized by seasonality, low screen density, increasing average
ticket prices, and reducing shelf life of movies. The key trends identified include
producers bypassing distributors, shift to digital cinema, and alternate content in
multiplexes, retail partnerships, and new single screen formats. The competitive
landscape identifies and compares the major multiplex operators in the market since
they dominate an industry where single screen cinemas are highly fragmented.
Comparison parameters include number of screens, number of cinemas, footfalls and
occupancy ratio.

OBJECTIVES OF THE STUDY

 To study strategic Planing for markerting multiplex cinemas t the auience,

theories and models.

 To study relevant application of these concepts to the multiplex field.

 To study the benefits of Strategic talent management practices in multiplex

organizations.

 To evaluate the strategic management measures adopted by Marketing

professionals.

 To suggest new ideas and measures in the field of Marketing management.

SCOPE OF THE STUDY

The study is a Comprehensive in depth study of all marketing management practices.

The study will have a special focus on the multiplex field. Study mainly will focus on
companies in Bangalore but has a wide relevance. The study has a practical
interpretation of the subject with industry professionals. The time frame of the study is
three months.

RESEARCH DESIGN

 PRIMARY DATA

The primary data will be collected from issuing questionnaires and conducting
personal interviews with a sample of marketing professionals in multiplex
companies in Bangalore.

 SECONDARY DATA

The secondary data will be collected by reading journals on marketing talent

management, data from blogs, websites and marketing forums, marketing
Management surveys conducted by organizations, attending conferences,
seminars on marketing management and referring research articles in prominent
dailies and also relevant newsletters.

LIMITATIONS OF THE STUDY

 Limited level of industry interaction is possible due to limited scope of the study.

 Limited practical information is available about internal company policies due to

confidentiality agreements signed by employees.

 The study is relevant to only IT sector and based on limited time frames.
CHAPTER SCHEME

Chapter 1:- Provides insight to the industry. It consists of the history and present
scenario of the industry. The first chapter also consists of the theoretical information
related to the study.

Chapter 2:- It includes the design of the research. The primary data, secondary data
and the sampling techniques.

Chapter 3:- Is concerned with the studied companies profile which gives detailed
information about the origin, growth and development, present status, future plans,
functional departments and organizational structure

Chapter 4:- Here the analysis and interpretation of data is done, which is collected
through market survey.

Chapter 5:- This chapter includes all the findings, conclusions and recommendations.
BIBLIOGRAPHY

ANNEXURE