Research Question: To What Extent Will The Marketing Strategies Adopted by PVR Help Achieve Its Growth Objective?

Extended Essay:
Business Management
Topic: Analysis on marketing strategies
Research question:
To what extent will the marketing strategies adopted by PVR help
achieve its growth objective?
Word Count: 3785
1
Acknowledgment:
I would like to thank my Business Management facilitator Ms. Nandhitha for her continuous
guidance and support throughout this essay.
Thank You.
2
Table of Contents
Introduction:...................................................................................................................................................................3
Methodology:..................................................................................................................................................................6
Main Findings:.................................................................................................................................................................7
SWOT analysis:..............................................................................................................................................................11
7P’S of Marketing Mix...................................................................................................................................................16
Product Perception Map:..............................................................................................................................................20
Porter’s Five Force:.......................................................................................................................................................21
Lewin’s FFA:................................................................................................................................................................... 23
Conclusion:.................................................................................................................................................................... 24
Bibliography:................................................................................................................................................................. 26
3
Introduction:
PVR Cinemas (PVR henceforth), is a major player in the Indian entertainment sector. It was
started as a JV between Priya Exhibitors Pvt Ltd and Village Road show Limited. Founded in 1997
by Mr Ajay Bijli, its headquarters is situated in Delhi. 1
With Mr Gautam Dutta as CEO, it currently has 706 screens in 152 properties in 60 cities in
India2.The company’s long term vision is to excel in the entertainment sector and to maintain its
leadership in the cinema industry.3
PVR has a net income of INR 1.3 billion approximately consisting of 9,862 employees 4.PVR
cinema’s major rivals are INOX, Cinepolis, Wave cinemas, Cinemax India Ltd, Divine
entertainment Ltd, etc.
PVR aims to penetrate and grow further into the industry by the acquisitions of its primary rivals
which is a part of their growth strategy. They have a target of reaching 1,000 screens by 2020 and
eyes INR 4000 Crore revenue in 5 years. As part of this, in December 2018, PVR announced
acquisition of SPI Cinemas for a cash and stock deal valuing the company at INR 850 Crore. 5 PVR
also has plans to acquire another player in the market, Wave cinemas for INR 400-450 Crore in
the near future.
Over the recent times, PVR has emerged as a largest player in the entertainment industry with
bullish acquisitions. It is also planning to enter global market by venturing into Saudi Arabia and
Sri Lanka6.
1
“PVR Competitors, Revenue and Employees - Owler Company Profile.” Owler, www.owler.com/company/pvrcinemas
2
“Pvr-Looks-South-and-Then-North-Leads-Race-to-Acquire-Wave-Cinemas.” The Economic Times, 30 Aug.
2018.
4
“PVR Competitors, Revenue and Employees - Owler Company Profile.” Owler, www.owler.com/company/pvrcinemas
5
Pti. “PVR Completes Acquisition of 71.6% Stake of SPI Cinemas.” The Economic Times, Economic Times, 17
Aug. 2018, economictimes.indiatimes.com/markets/stocks/news/pvr-completes-acquisition-of-71-6-stake-of-spi-
cinemas/articleshow/65443395.cms.
6
Online, FE. “PVR's Overseas Expansion Plans: 'Big Focus' on These Three Markets.” The Financial Express,
The Financial Express, 3 Sept. 2018, www.financialexpress.com/industry/pvrs-overseas-expansion-plans-big-
focus-on-these-three-markets/1301180/.
4
With 200 lavish digital cinema halls 7, the Indian film sector is relied upon to develop at 11.5%
every year, achieving complete gross profit of INR 23,800 Cr by 2020 8.With such huge growth
potential, Indian entertainment industry is going through remarkable changes ranging from new
entrants to take over by big players.
Indian Media and Entertainment (M&E) is relatively a new contributor to the Indian economy and
has immense growth potential.9With a gross revenue of INR 13,800 Crs 10, Indian entertainment
industry provides promising future for current and new players. The Indian M&E is estimated to
reach INR 3.73 lakh Cr by 2022 11. The major reason being increase in disposable income, growth
in population and awareness on various media opportunities. 12Given the magnitude of competition
and the potential for growth, will the marketing strategies adopted by PVR help achieve its growth
objective? This question made me inquisitive and has thus arrived at the below RQ:
“To what extent will the marketing strategies adopted by PVR help achieve its
growth objective?
7
G. Gaikwad, Prof.Swapnil. “7 P’S Of Making & Marketing Strategies of PVR Cinema Hall.” INTERNATIONAL
RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, vol. 3, no. 2, Feb. 2017.
8
Press Trust of India. “India's Media and Entertainment Sector May Touch Rs 3.73 Trn by 2022: Study.” Business
Standard, Business-Standard, 27 Jan. 2019, www.business-standard.com/article/pti-stories/media-and-entertainment-
industry-may-touch-usd-52-683-million-by-2022-study-119012700148_1.html.
9
“Brand India.” IBEF, www.ibef.org/industry/media-entertainment-india/infographic.
10
“Film Industry in India to Hit $3.7 Billion by 2020, Says Report.” The Economic Times, 9 Oct. 2017,
economictimes.indiatimes.com/industry/media/entertainment/media/film-industry-in-india-to-hit-3-7-billion-by-
2020-says-report/articleshow/60998458.cms.
11
12
5
Methodology:
The data required for this analysis has to be secondary in nature since information required has to
be collected from the industry and the firm itself involving multiple perspectives.
The secondary data will contain the financial statistics and the current status and objectives of
PVR and its competitors.
Mode of research Source Information

gathered
Textbook – Business and  Concepts
management (IB) – “Paul
Hoang”  Analytical tools
Articles online  Marketing strategies

proposed by PVR.
Secondary research  Competitors/Rivals in

the market.
Academic Journals  7 P’S & Marketing
Strategies of PVR
Newspapers  PVR’s growth in film
industry
6
Main Findings:
(a) Competitive Analysis13
Revenue Figure 1(a): Screen count of PVR comparing it with SPI cinemas
Composition
Figure1(b):Market share holding for PVR
Category No. of shares Percentage

Promoters 9,465,305 20.25
Foreign Institutions 18,448,284 39.47
Financial Institutions 7,473,125 15.99
NBFC and Mutual Funds 6,659,517 14.25
General Public 2,593,544 5.55
Others 2,098,813 4.49
13
Govardan, D. “PVR Buys 72% in SPI Cinemas for Rs 633cr - Times of India.” The Times of India,
Business, 12 Aug. 2018, timesofindia.indiatimes.com/business/india-business/pvr-buys-72-in-spi-
cinemas-for-rs-633cr/articleshow/65379775.cms.
7
(a)Revenue Share14
Figure2(a): Revenue share chart comparing it with INOX

leisure(F AND B)
(b)Revenue Flow
Figure 2(b):Revenue Flow based on the Average Ticket Price
PVR different revenue streams ranging from films to beverages & food, advertisement etc. The
details are given below:15
14
Malvania, Urvi. “Outside Food Gives Multiplexes the Jitters; PVR, Inox Leisure Shares Fall.” Business Standard,
Business-Standard, 13 July 2018, www.business-standard.com/article/companies/outside-food-gives-multiplexes-the-
jitters-pvr-inox-leisure-shares-fall-118071400064_1.html.
Dhanuka, Saloni. “Why Analysts Are Betting On INOX Over PVR.” BloombergQuint, Bloomberg Quint, 27 Mar. 2018,
15
www.bloombergquint.com/markets/why-analysts-are-betting-on-inox-over-pvr#gs.4ITU83I.
8
Revenue streams Amount (in crores - INR) % of total sales
Income from films 1248.06 55.56
Beverages & Food 607.66 27.05
Income from advertisement 294.86 13.12
Fees and other charges 76.95 3.42
Other operating revenue 15.84 0.70
Income from film production 2.75 0.12
and distribution
Table 1: Revenue streams of PVR Cinemas
(c)Ad- Revenue Growth16
Figure2(c):Ad Revenue Growth Comparison
16
Dhanuka, Saloni. “Why Analysts Are Betting On INOX Over PVR.” BloombergQuint, Bloomberg
Quint, 27 Mar. 2018, www.bloombergquint.com/markets/why-analysts-are-betting-on-inox-over-pvr.
9
Figure 3: PVR Market competitors17
18
Figure 4: Total Media and Entertainment Growth in

India
SWOT analysis:
SWOT is a powerful tool to identify the internal and external factors that impact the organization.
Strengths, weaknesses, opportunities and threats of PVR are analysed, giving an insight on the
current scenario of the company and the industry as such. Also, this tool procured to assess the
current and future situation of a business, particularly a product. 19
“A Look into PVR's Two-Decade Magical Run and the Challenges That Lies Ahead.” The Economic Times, 28 Aug.
17
2018, economictimes.indiatimes.com/industry/media/entertainment/a-look-into-pvrs-two-decade-magical-run-and-the-
challenges-that-lies-ahead/articleshow/65569978.cms.
18
19
Hoang, Paul. International Baccalaureate Business and Management. Place of Publication Not Identified: Ibid,
2014. Print.
10
Strengths:
- PVR is the first cinema based industry established in 1997 20 and is a notable brand in India
in the field of multiplexes.21
- Most admired multiplex chain22
- PVR has planned a CAPEX of INR 450 Crore to enhance customer viewing experience. 23
- Plays most of the Indian regional language movies and Hollywood pictures.
- PVR is hoping to increase the quantity of premium screens from 9% to around 20% in the
following 3 years.24
- Brand strengthening after acquisition of SPI Cinemas recently 25
- PVR initiated its own form of film on-request administration, Vkaao, which empower
consumers to pick film from a collection of 500 movies. 26
- USP in the form of up to date technology like Dolby stereo system, Digital Cinema, Xenon
technology etc27
- PVR has thought of a few fresher formats of screens to give a more noteworthy bundle of
contributions to viewers like 4DX, PVR PXL, PVR Gold class and so forth. 28
20
(A Look Into PVR's Two-Decade Magical Run And The Challenges That Lies Ahead Read More At:
//Economictimes.Indiatimes.Com/Articleshow/65569978.Cms?
From=Mdr&Utm_Source=Contentofinterest&Utm_Medium=Text&Utm_Campaign=Cppst)
21
22
(A Look Into PVR's Two-Decade Magical Run And The Challenges That Lies Ahead Read More At:
//Economictimes.Indiatimes.Com/Articleshow/65569978.Cms?
From=Mdr&Utm_Source=Contentofinterest&Utm_Medium=Text&Utm_Campaign=Cppst)
23
“A Look into PVR's Two-Decade Magical Run and the Challenges That Lies Ahead.” The Economic Times, 28
Aug. 2018, economictimes.indiatimes.com/industry/media/entertainment/a-look-into-pvrs-two-decade-magical-
run-and-the-challenges-that-lies-ahead/articleshow/65569978.cms.
24
Ey.com. (2018). Re-imagining India's M&E sector. [online] Available at:
https://www.ey.com/Publication/vwLUAssets/ey-re-imagining-indias-me-sector-march-2018/%24File/ey-re-imagining-
indias-me-sector-march-2018.pdf
25
Press Trust of India. “PVR's Acquisition to Combine Brands Strength: SPI Cinemas CEO.” Business Standard,
Business-Standard, 13 Aug. 2018, www.business-standard.com/article/pti-stories/pvr-s-acquisition-to-combine-
brands-strength-spi-cinemas-ceo-118081301243_1.html.
26
27
11
- Strong marketing strategy aiming to satisfy smaller town viewers (INR 100 per ticket) as
well as gold-class urban customers (INR 1500 per ticket with recliner seats and top class
projectors).29
- Wide range of operations comprising of 706 screens in 152 properties in 60 cities in India 30
- PVR expands to digital platforms for bookings such as Paytm and Bookmyshow to reach
wider audience.31
- 26.71% contribution from F&B( Food and Beverages) in the total revenue(Refer Fig 2a) 32
Weakness:
- When compared to local players, PVR and other multiplexes have higher ticket costs.(Refer
Fig 2b).
- Poor cashing in Ad Revenue growth when compared to its competitorInox (Refer Fig 2c) 33
- Prominent presence only in North India. With recent acquisitions, PVR is gradually
venturing into neighbouring countries.34
- Due to low brand awareness in rest of India, PVR is struggling to establish itself due to the
single screen theatres.35
28
29
30
“Pvr-Looks-South-and-Then-North-Leads-Race-to-Acquire-Wave-Cinemas.” The Economic Times, 30 Aug.
2018.
31
Press Trust of India. “PVR's Acquisition to Combine Brands Strength: SPI Cinemas CEO.” Business Standard,
32
Business-Standard, 13 Aug. 2018, www.business-standard.com/article/pti-stories/pvr-s-acquisition-to-combine-

brands-strength-spi-cinemas-ceo-118081301243_1.html.
33
Dhanuka, Saloni. “Why Analysts Are Betting On INOX Over PVR.” BloombergQuint, Bloomberg Quint, 27 Mar.
2018, www.bloombergquint.com/markets/why-analysts-are-betting-on-inox-over-pvr#gs.4ITU83I.
34
35
12
Opportunities:
- India’s media and entertainment sector grows faster than its GDP. This is due to rising
income levels and stable economy.36
- Media usage in India has improved at a CAGR of 9 %(2012-18), just about multiple times
that of US &China.37It is additionally expected to develop at a CAGR 11.7 % (USD 52, 683)
in 2022.38
- According to Ficci-EY, there has been a 64% increase in digital video consumption in
India.39
- It is expected that India will have the second biggest video viewers group by 2020, with
13%+ CAGR.40
- In 2009, there were around 9710 single screens (91%) across India. Whereas, in 2017, it
has come down to 6780 screens (71%).41
- Rise in urban consumption spending.42
- Films are the major source of entertainment with around 2000 films released per year. 43
- Faster multiplex segment growth 20-22% compared to single screens. 44
- Indian M&E sector might cross INR 3.73 Lakh by 2022(Refer to Fig 4). 45
36
37
38
“Media and Entertainment Industry May Touch Rs 3.73 Lakh Crore by 2022.” Media and Entertainment Industry
May Touch Rs 3.73 Lakh Crore by 2022, 27 Jan. 2019, 12:33 pm IST, www.news18.com/news/india/media-
and-entertainment-industry-may-touch-rs-3-73-lakh-crore-by-2022-study-2015579.html
39
40
41
42
43
44
13
- 100 % FDI is possible in film and its related services. 46
- Steady GDP growth between 6.5% to 7.5 % through 2020.
- Indian Government has signed film coproduction treaties with UK, New Zealand, China,
Canada, Germany, Italy and Brazil.47
Threats:
- Hefty taxes on cinema tickets in India (28%) 48 compared to other developed
markets/countries.
- Prevalence of intense competition (INOX, Cinepolis, Fun Cinemas, Wave Cinemas etc) 49
and rivals adopting bullish acquisition way of growth. 50
- Decrease in theatrical content i.e., number of films released per year in India. 51
- Regardless of delivering the highest number of movies annually, India remains as a
standout amongst the underpenetrated markets among significant nations with 8 screens
per million.52The reason being major players ignoring tier 2-4 cities.
45
and-entertainment-industry-may-touch-rs-3-73-lakh-crore-by-2022-study-2015579.html.
46
47
48
Livemint. “PVR's Ajay Bijli: Nowhere Do Movie Tickets Get as Heavily Taxed as in India.”
Https://Www.livemint.com, Livemint, 8 Mar. 2017,
www.livemint.com/Companies/VHIqQ9G0MzBUaSf6tfZ6cN/PVRs-Ajay-Bijli-Nowhere-do-movie-tickets-get-as-
heavily-ta.html.
49
“Will PVR Retain Its No. 1 Position in the Face of New Challenges?” Business Today, 20 Mar. 2015,
www.businesstoday.in/magazine/features/will-pvr-cinemas-retain-first-position-among-
multiplexes/story/216643.html.
50
51
52
14
- Major operating challenge faced by multiplex companies is to obtain licences from each
state government which has different requirements to expand in their respective states. 53
- Compared to developed western countries, Indian cinema operators pay higher rental fee
which accounts to 30% of their box office collection.54
- Per capita spending by Indians on media and entertainment will be limited to USD 32 by
2021. This is comparatively lesser when compared to China (USD 222) and USA (USD
2260).55
- Satellite pay channels are gaining popularity among Indians resulting in ticket sales down to
20% between 2002 and 2017.56
- New digital platforms named as over-the-top (OTT) services 57 or on-tap demand (Eg:
Netflix) slowly appear to be a substitute to cinema theatres. Around 40 OTT platforms are
available in India with nominal subscription rates. 58 This will reduce the footfall to the
cinema theatres.
- Indian OTT market will be among the main 10 advertises internationally by 2022 with a
market size of USD 823 million (Rs 5,363 crore)59
- Online Piracy of film contents is a major threat for Indian media and entertainment sector.
Within hours of release in theatres, films are made available online. This has resulted in a
revenue loss of around 10% to 30% for the segment. 60
53
54
55
56
57
Press Trust of India. “India's Media and Entertainment Sector May Touch Rs 3.73 Trn by 2022: Study.”
Business Standard, Business-Standard, 27 Jan. 2019, www.business-standard.com/article/pti-stories/media-
and-entertainment-industry-may-touch-usd-52-683-million-by-2022-study-119012700148_1.html.
58
59
15
Evaluation of SWOT analysis:
Well established brand image, strong financial position, good marketing strategies along with
India’s rising income, steady GDP and increase in digital audience, provides a strong platform for
PVR to grow. However, its limited presence outside major cities, high ticket costs, intense
competition, OTT platforms, online piracy and high bureaucracy among Indian State Governments
requires PVR to carefully formulate its growth strategies. Among the factors, external threat seems
to be more prominent, on which PVR has less control. With the gained insight on PVR position
and market scenario, let us now dig deeper into its marketing strategies through 7P analysis.
7P’S of Marketing Mix
The traditional marketing mix is to be known as the 4Ps, a word by formulated by marketing
professor Edmund Jerome McCarthy in the year 1960. 61 The extended 3P’s is based on the
marketing of services in the company. Combination of various elements of marketing strategies to
make a successful product/service. It is used to review the marketing strategies adopted by PVR
with respect to product, price, place, promotion, physical evidence, people and process.
Product:
PVR offers superior ambience to its customers, with single, double and multiple screen
theatres.62It is also involved in production and distribution of Indian regional movies. PVR has
entered into deals with coffee shops,pub, food courts etc to provide a holistic entertainment. 63Apart
from that PVR is unique in the following ways:
- Luxury Cinema: PVR Cinema has brought the experience of luxury cinema, a journey
which started 20 years back in New Delhi by introducing Cinema Europa. 64
60
61
2014. Print.
62
Livemint. “PVR Adopts Customer Segmentation Strategy to Boost Footfall.” Https://Www.livemint.com, Livemint,
2 Mar. 2017, www.livemint.com/Consumer/4WVKelwCYi26fethmPEMnN/PVR-adopts-customer-segmentation-
strategy-to-boost-footfall.html.
63
64
“PVR Premiere.” Delhi NCR, delhi-ncr.mallsmarket.com/malls/select-citywalk-saket/stores/pvr-premiere.
16
- PVR Playhouse: To make film viewing less demanding for children and peaceful for
guardians, intended for children aged 3 – 12 years, it highlights motion pictures that are
reasonable for that age gathering – even the advertisements, trailers, promotions. 65
- Parties at PVR: Customers can even make a private occasion, like a birthday get-together
with companions and book the whole venue. 66 Special events such as cricket matches and
other festivals are screened on respective days of the year. 67
- PVR wishes to strengthen its film distribution by releasing more internationally acclaimed
films in the hope to boost their sales trend 68.
Place:
With Pan-India presence majorly in urban communities like Delhi, Noida, Faridabad 69PVR also has
subsidiaries- Lettuce Entertain You, PVR bluO stimulation and PVR Leisure.PVR hold their own
distribution channels for their films. With an investment of INR 3 – 4 Crores.
Launched in January this year, PVR introduced a web platform, Vkaao.com that enables film
viewers to choose a film from the display chain's library and sort out a show at a date and time
helpful for them.70
Promotion:
It has executed few special promotions to make positive brand awareness in the consumer
market.PVR has entered into collaboration with Airtel (mobile service provider) to promote
viewership by offering complimentary tickets.
65
“Check Out the Colourful PVR Playhouse – Hyderabad's First Theatre Dedicated to Kids! | Editorial Article by
NamrataSadhvani.” Momspresso, 14 Sept. 2018, www.momspresso.com/parenting/article/check-out-the-
colourful-pvr-playhouse-hyderabads-first-theatre-dedicated-to-kids.
66
67
68
“PVR to Expand Distribution Business.” The Economic Times, 11 Sept. 2015,
economictimes.indiatimes.com/industry/media/entertainment/media/pvr-to-expand-distribution-
business/articleshow/48906682.cms.
69
“Marketing Mix Of PVR - PVR Marketing Mix.” Marketing91, 30 Nov. 2018, www.marketing91.com/marketing-
mix-pvr-cinemas/.
70
Livemint. “PVR Adopts Customer Segmentation Strategy to Boost Footfall.” Https://Www.livemint.com, Livemint,
2 Mar. 2017, www.livemint.com/Consumer/4WVKelwCYi26fethmPEMnN/PVR-adopts-customer-segmentation-
strategy-to-boost-footfall.html.
17
PVR has few dispatch gatherings for its motion pictures and welcomes famous film stars.PVR also
has few interesting strategies like special screening for ladies only shows, Mondays dedicated to
senior subjects and different days for expats which feature Indian films with English
subtitles.71They likewise organize business shooting and fun occasions for kids while screening
animations.72 Also, drop in ticket fares on Tuesdays or Wednesdays to address families from lower
salary gatherings, special screening for the disabled are strategies adopted. 73 Cafe marketing is a
new platform introduced by many multiplexes to promote food and beverages. 74 To promote
customer loyalty, PVR has introduced loyalty program, where reward points can be redeemed on
ticket or F&B purchase.75
Price:
PVR has focused on upper-white collar class (semi-urban and urban) segment as its target
market.PVR has acquired a premium pricing strategy 76which requires to keep the ticket costs more
than other players. PVR has executed a special valuing arrangement and offers incentives in type
of free tickets and coupons at drinks at diminished costs and different vouchers to expand its
business volumes and earn additional incomes.
People:
The provision of services relies on the behaviour of the employees. PVR provides continuous
employee training focusing on various dimensions to improve their way of addressing the
customers. They wear uniforms and portray a professional appearance.Employees are also
trained to manage security issues with respect to fire, bomb, danger, robbery etc. 77
71
Livemint. “PVR Adopts Customer Segmentation Strategy to Boost Footfall.” Https://Www.livemint.com, Livemint, 2
Mar. 2017, www.livemint.com/Consumer/4WVKelwCYi26fethmPEMnN/PVR-adopts-customer-segmentation-strategy-
to-boost-footfall.html.
72
73
“PVR to Make Cinema Accessible for Disabled.” The Economic Times, 3 Dec. 2018.
74
75
76
“Marketing Mix Of PVR - PVR Marketing Mix.” Marketing91, 30 Nov. 2018, www.marketing91.com/marketing-mix-
pvr-cinemas/.
77

18
Physical Evidence:
It refers to the substantial parts of administration.PVR has satisfied the variables under the
physical condition.
Ambience & Design: In terms of design and comfort, PVRhas fulfilled the necessities of their
customers with the best comfort provided. State of the art facilities and interior colours provide a
unique brand identity for PVR.78
Seats, clean wash rooms, pieces of candy, hallways, stairs, audio & video gears, structure of the
corridor are customer centric strategies adopted.The physical environment of PVR is one of the
areas where it has had success as this factor has helped PVR to have a stable revenue share of
$22.76 billion.79
Process:
Process refers to a manner by which service is being delivered to the target group of customers.
PVR presents mechanized ticketing along with a wide range of payment methods. As mentioned
earlier, PVR has introduced web platform, Vkaao.com that enables film viewers to choose a film
from the display chain's library.80
Evaluation of 7P’s:
PVR uses the right mix of marketing strategies to gain brand loyalty through customer targeting
and segmentation. Every aspect of providing customers a comfortable and luxurious entertainment
experience is taken care of. However, it is to be noted that these strategies can easily be
implemented by the rivals too. In that case, the conservative Indians will seek differentiation only
through the price of the ticket. Any alteration in prices will have an impact on revenue thereby
hitting the profits. Let us now have a look at brand perception to understand the position of PVR
among its rival.
Product Positioning Mapping:
78
79
Malvania, Urvi. “Outside Food Gives Multiplexes the Jitters; PVR, Inox Leisure Shares Fall.” Business Standard,
Business-Standard, 13 July 2018, www.business-standard.com/article/companies/outside-food-gives-multiplexes-the-
jitters-pvr-inox-leisure-shares-fall-118071400064_1.html.
80
Livemint. “PVR Adopts Customer Segmentation Strategy to Boost Footfall.” Https://Www.livemint.com, Livemint, 2
Mar. 2017, www.livemint.com/Consumer/4WVKelwCYi26fethmPEMnN/PVR-adopts-customer-segmentation-strategy-
to-boost-footfall.html.
19
This tool was devised by marketing guru Jack Trout in the year 1969. 81This tool help us
understand where the particular company/brand stands when compared to other players in the
market. To compare the consumer’s perception of PVR with respect to price and quality, this tool
is used. The below map reveals customer perception on PVR in relation with other players in the
Indian market. Quality of service provided and price per ticket are taken as parameters, as these
are the metrics adopted by customers to assess a brand.
Quality
High
Low
High
Price
Low
Figure5: Product position mapping
PVR is perceived as premium brand with high quality and high price range.However, it is to be
noted that INOX, Cinepolisare close behind and pose serious competition, adopting similar
strategies and techniques. With PVR acquiring SPI Cinemas and the plan to buy Wave cinemas
too, it is killing competition, thereby evolving as a major dominant player in the sector. Still, in tier
2-4 Indian cities, multiplex culture is yet to catch up, where the market is dominated by single
screen operators.
81
2014. Print.
20
Porter’s Five Force:
This tool was originated by Harvard Business School professor Michael Porter. To predict an
industry’s likely profitability.82This tool is utilized for understanding the forces that impact
competition and attractiveness of industry. PVR’ impact from these 5 forces is studied using this
tool.
Figure 6: Porter’s Five Force Analysis
Threat of new entrants:

Though this industry is more capital intensive, the industry is attractive with 12.2% growth in Indian
film segment in 2018 reaching INR 174.5 billion. Recently, UAE based Aries group is planning to
enter Indian multiplex industry with an investment of $5 billion to construct 2000
screens.83However, PVR with other multiplexes along with regional single screen operators
dominating the industry pose high barriers to entry for new entrants. Hence, the threat of new
entrants is moderate.
Bargaining Power of Suppliers:

Suppliers take form of film producers, food and beverage manufacturers and other service
providers. Given the size of PVR, the ability to switch suppliers is easy. Since there is no product
differentiation from supplier perspective and the high dependence on multiplexes for screening
films, makes the bargaining power of suppliers low.
82
“Porter's Five Forces: - Understanding Competitive Forces to Maximize Profitability.” Strategy Skills Training
From MindTools.com, www.mindtools.com/pages/article/newTMC_08.htm.
83
Online, FE. “UAE-Based Aries to Invest $5 Billion to Set up 2k Multiplex Screens in India.” The Financial
Express, The Financial Express, 26 Apr. 2018, www.financialexpress.com/industry/uae-based-aries-to-invest-5-
billion-to-set-up-2k-multiplex-screens-in-india/1147351/.
21
Bargaining Power of Buyers:
Customers are highly price sensitive when it comes to entertainment. However, the high cost is
justified by the luxury experience PVR provides. Poor facilities and infrastructure by single screen
operators84 gives an upper hand for multiplex operators. Since the competitive rivals are adopting
cut throat marketing strategies, thereby making the customers to switch brand easily, it is
concluded that the bargaining power of customers is moderate.
Threat of Substitutes:
Recently, the revenue from offering digital rights grew from INR 8.5 billion to INR 13.5 billion in
Indian filmed entertainment sector.85It is predicted that, by 2022, the OTT market will have a
market size of $823 million and India will be among the top 10 global markets. 86
This means that the OTT (over the top) platforms are gaining prominence and film makers see
better monetization through them. Amazon prime, Netflix, Hotstar emerges as strong alternative
for customers to view films rather than visiting expensive multiplexes. However, people still prefer
movie theatres for its wide screen and sound experiences. Also, online piracy is another mode for
people to watch newly featured films. Hence, threat from substitutes are considered to be
moderate.
Industry Rivalry:
Among the five forces, industry rivalry seem to be the strongest for PVR. Carnival cinemas has
adopted inorganic growth strategy by taking over E-square cinemas in June 2018 along with plans
to enter into overseas market.87 Apart from Carnival, INOX is closely competing by opening 58
new screens across India recently. 88 Good infrastructure, choice in food & beverage, adopting new
technology are something all players are readily following. Small players like Mukta, KG Cinemas
along single screen operators, pose severe threat to PVR. Hence, industry rivalry is considered to
be intense.
84
85
86
87
88
22
Summary:
Forces Intensity
Industry rivalry High
Threat of substitutes Moderate
Bargaining power of suppliers Low
Bargaining power of customers Moderate
Threat of new entrants Moderate
Table 2: Summary of Porter’s Five Force
Among all the forces, competitive rivalry seem to be the strongest toPVR. This can be tackled by
careful differentiation strategy. Though it is adopting unique strategies, it is soon copied by the
rivals too. Continuous innovation in this field is required to ensure PVR stays ahead of the other
players.Also, the OTT platforms along with price sensitive customers pose a moderate challenge.
To an extent, digitization of movies is inevitable due to advancement in technology. Though they
are external factors, tackling it is necessary for PVR to achieve its growth objective.
Lewin’s FFA:
FFA was evolved by social psychologist Professor Kurt Lewin in the year 1951. He claims that a
business must keep changing and adjusting business practices and keep away and avoid obsolete
practices.89This model was designed to assess the driving and restraining forces that impact the
strategy adopted by PVR Cinemas.
To what
extent will
the
Driving Forces Restraining Forces
marketing
Strong marketing strategy
High Taxes levied on
3
strategies cinema tickets (28%) 3
adopted by
PVR help
Strong financial position achieve its Low brand awareness in
3 rest of India 2
growth
objective?
89
2014. Print.
23
3 Threat from OTT/online
USP in the form of up to
piracy
date technology 3
Recognised and established

4 brand
Per capita expenditure is less in
India on M&E 4
4 Growth potential of Indian

M&E market
Intense competition from other
multiplex and singe screen 3
opertors
Rise in urban spending and
3 growth in multiplex sector
Total Score: 20 Figure 7: Lewin’s FFA Total Score: 15
The forces are weighed from 1 to 5, 1 being the lowest. Among the driving forces, well established
brand and growth potential of Indian M&E sector are the major motivating factors. Lower per
capita spending by Indians and threat from OTT are the major opposing forces. Overall, the driving
forces outweigh the restraining forces, which gives a thumbs up for PVR to go ahead with its plan
to expand across India thereby achieving its growth objective.
Conclusion:
This extended essay focuses on the below RQ:
To what extent will the marketing strategies adopted by PVR help

achieve its growth objective?
By critically evaluating the internal and external factors under SWOT, it is found that PVR has a
significant brand image, strong financial position and a lot of first mover advantage. The Indian
Media and entertainment sector too promises growth with various social and political reforms.
However, its limited presence outside major cities along with high ticket cost combined with
intense competition pose serious challenges to PVR.
From the analysis of 7P and product positioning, it is found that PVR leaves no stone turned to
ensure luxurious, high quality and diversified entertainment experience to its customers. Though
PVR is perceived to be a premium brand, the high cost is justified by the unique experience it
24
gives compared to single screen operators. However, these strategies are not unique to PVR
alone. Its close competitors (INOX, Cinepolis, Carnival etc) too adopt similar strategies which
makes it difficult for PVR to differentiate itself.
Porter’s 5 force analysis reveals that the industry rivalry is the strongest among all forces. Also,
threat of substitutes (OTT and other digital platforms) along with bargaining power of customers
seems to pose moderate threats. However, given the high barriers to entry and the size of existing
players, make the new entrants and buyer power to be negligible.
The Lewin’s force field analysis recommends that PVR can go ahead with plan to expand across
the country thereby achieving its growth objective. Well established brand and growth potential of
Indian M&E sector are the major driving forces. Lower per capita spending by Indians and threat
from OTT are the major restraining forces.
Finally, it is concluded that PVR has all the required capabilities to achieve its growth objective of
reaching 1000 screens by 2020 with revenue of INR 4000 Crore in 5 years. To achieve this, it is
required that PVR focuses on Tier 2-3 cities too so that market penetration and brand awareness
is improved. Also, formulating unique strategies to differentiate itself, improvising on viewing
experience will ensure sure shot success for PVR. Since the external factors plays major role in
this industry, PVR is required to evolve over the period of time to stay put in this otherwise highly
competitive sector.
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12 Aug. 2018, timesofindia.indiatimes.com/business/india-business/pvr-buys-72-in-spi-cinemas-for-rs-
633cr/articleshow/65379775.cms.
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positioning/positioning/.
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Livemint, 2 Mar. 2017, www.livemint.com/Consumer/4WVKelwCYi26fethmPEMnN/PVR-adopts-customer-
segmentation-strategy-to-boost-footfall.html.
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Https://Www.livemint.com, Livemint, 8 Mar. 2017,
www.livemint.com/Companies/VHIqQ9G0MzBUaSf6tfZ6cN/PVRs-Ajay-Bijli-Nowhere-do-movie-tickets-get-as-
heavily-ta.html.
26
11) “Marketing Mix Of PVR - PVR Marketing Mix.” Marketing91, 30 Nov. 2018, www.marketing91.com/marketing-
mix-pvr-cinemas/.
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gives-multiplexes-the-jitters-pvr-inox-leisure-shares-fall-118071400064_1.html.
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Industry May Touch Rs 3.73 Lakh Crore by 2022, 27 Jan. 2019, 12:33 pm IST,
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2015579.html.
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vkaao-customise-movie-screening/.
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The Financial Express, 3 Sept. 2018, www.financialexpress.com/industry/pvrs-overseas-expansion-plans-big-
focus-on-these-three-markets/1301180/.
16) Online, FE. “UAE-Based Aries to Invest $5 Billion to Set up 2k Multiplex Screens in India.” The Financial
Express, The Financial Express, 26 Apr. 2018, www.financialexpress.com/industry/uae-based-aries-to-invest-
5-billion-to-set-up-2k-multiplex-screens-in-india/1147351/.
17) Pinto, Viveat, et al. “Single GST Rate on Cinema Exhibition, Plead Multiplexes.” Business Standard,
Business-Standard, 13 June 2017, www.business-standard.com/article/economy-policy/single-gst-rate-on-
cinema-exhibition-plead-multiplexes-117061201000_1.html.
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From MindTools.com, www.mindtools.com/pages/article/newTMC_08.htm.
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and-entertainment-industry-may-touch-usd-52-683-million-by-2022-study-119012700148_1.html.
27
20) Press Trust of India. “PVR's Acquisition to Combine Brands Strength: SPI Cinemas CEO.” Business Standard,
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combine-brands-strength-spi-cinemas-ceo-118081301243_1.html.
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spi-cinemas/articleshow/65443395.cms.
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screens/article17068491.ece.
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28

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Extended Essay:

Topic: Analysis on marketing strategies

Word Count: 3785

Mode of research Source Information

Articles online  Marketing strategies

Secondary research  Competitors/Rivals in

(a) Competitive Analysis13

Figure1(b):Market share holding for PVR

Category No. of shares Percentage

Figure2(a): Revenue share chart comparing it with INOX

Figure 2(b):Revenue Flow based on the Average Ticket Price

Table 1: Revenue streams of PVR Cinemas

(c)Ad- Revenue Growth16

Figure2(c):Ad Revenue Growth Comparison

Figure 4: Total Media and Entertainment Growth in

Business-Standard, 13 Aug. 2018, www.business-standard.com/article/pti-stories/pvr-s-acquisition-to-combine-

“Brand India.” IBEF, www.ibef.org/industry/media-entertainment-india/infographic.

7P’S of Marketing Mix

RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, vol. 3, no. 2, Feb. 2017.

RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, vol. 3, no. 2, Feb. 2017.

RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, vol. 3, no. 2, Feb. 2017.

RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, vol. 3, no. 2, Feb. 2017.

RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, vol. 3, no. 2, Feb. 2017.

Product Positioning Mapping:

RESEARCH JOURNAL OF MULTIDISCIPLINARY STUDIES, vol. 3, no. 2, Feb. 2017.

Figure 6: Porter’s Five Force Analysis

Threat of new entrants:

Bargaining Power of Suppliers:

Recognised and established

4 Growth potential of Indian

Total Score: 20 Figure 7: Lewin’s FFA Total Score: 15

This extended essay focuses on the below RQ:

To what extent will the marketing strategies adopted by PVR help

2) “Pvr-Looks-South-and-Then-North-Leads-Race-to-Acquire-Wave-Cinemas.” The Economic Times, 30 Aug.

Aug. 2018, economictimes.indiatimes.com/industry/media/entertainment/a-look-into-pvrs-two-decade-magical-

2) “Brand India.” IBEF, www.ibef.org/industry/media-entertainment-india/infographic.

NamrataSadhvani.” Momspresso, 14 Sept. 2018, www.momspresso.com/parenting/article/check-out-the-

5) Ey.com. (2018). Re-imagining India's M&E sector. [online] Available at:

12 Aug. 2018, timesofindia.indiatimes.com/business/india-business/pvr-buys-72-in-spi-cinemas-for-rs-

8) “Introduction to Positioning.” Market Segmentation Study Guide, www.segmentationstudyguide.com/all-about-

9) Livemint. “PVR Adopts Customer Segmentation Strategy to Boost Footfall.” Https://Www.livemint.com,

Livemint, 2 Mar. 2017, www.livemint.com/Consumer/4WVKelwCYi26fethmPEMnN/PVR-adopts-customer-

Https://Www.livemint.com, Livemint, 8 Mar. 2017,

Standard, Business-Standard, 13 July 2018, www.business-standard.com/article/companies/outside-food-

The Financial Express, 3 Sept. 2018, www.financialexpress.com/industry/pvrs-overseas-expansion-plans-big-

Express, The Financial Express, 26 Apr. 2018, www.financialexpress.com/industry/uae-based-aries-to-invest-

Business-Standard, 13 June 2017, www.business-standard.com/article/economy-policy/single-gst-rate-on-

From MindTools.com, www.mindtools.com/pages/article/newTMC_08.htm.

Business Standard, Business-Standard, 27 Jan. 2019, www.business-standard.com/article/pti-stories/media-

Business-Standard, 13 Aug. 2018, www.business-standard.com/article/pti-stories/pvr-s-acquisition-to-

Aug. 2018, economictimes.indiatimes.com/markets/stocks/news/pvr-completes-acquisition-of-71-6-stake-of-

26) “PVR Premiere.” Delhi NCR, delhi-ncr.mallsmarket.com/malls/select-citywalk-saket/stores/pvr-premiere.

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