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“A STUDY ON CUSTOMER SATISFACTION TOWARDS PVR

CINEMAS”

REPORT SUBMITTED TO KARNATAK


UNIVERSITYDHARWAD

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE


AWARD OF DEGREE IN

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
PRAKASHSARAPURE

Reg no:19MBA336

UNDER THE GUIDANCE OF PROF.


SMITA NADIGER

2020 - 2021

INSTITUTE OF EXCELLENCE IN MANAGEMENT SCIENCE


HUBBALI – 580026
“A STUDY ON CUSTOMER SATISFACTION TOWARDS PVR CINEMAS”

ACKNOWLEDGEMENT

First and foremost, I thank almighty for keeping me hale and healthy for successful
completion of the project.

I express my deepest gratitude to Our Director Dr. S. R. Patil who had given this
opportunity to do this project.

I sincerely thank to my guide, Prof. Standifer, for her kind words and continuous
encouragement which has inspired me in completion of this project.

I am also taking the pleasure to express my sincere thanks to all other staff members of
The Department of Management Studies, Institute of Excellence in Management
Science B. School for their kind co-operation.

Last but not least, I would like to convey my sincere gratitude to my parents and

friends, who have always been source for the completion of this project.

Name: PRAKASH SARAPURE

Reg. No.: 19MBA336

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DECLARATION

I, PRAKASH SARAPURE, hereby declare that the Summer Internship Program


(SIP) entitled “A STUDY ON CUSTOMER SATISFACTION TOWARDS
PVR CINEMAS” Prepared under the guidance of prof. SMITA NADIGER,
Assistant Professor of MBA department, IEMS b. School.

I also declare that this the Summer Internship Program (SIP) is towards the
partial fulfilment of the university regulation of degree forasteros business
administration by Karnataka university, Hubli.

I have undergone the Summer Internship Program (SIP) for a period of two
months.

I further declare that this project is based on the original study undertaken by
me and has not been submitted for the award of any degree/diploma from any
other university/ institution.

Name: PRAKASH SARAPURE

Reg. No.: 19MBA336

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INDEXS:
PAGE
SI. NO CONTENT NO.

CHAPTER -1 EXECUTIVE SUMMERY 07–15

INTRODUCTION

INTRODUCTION OF THE TOPIC

NATURE OF THE STUDY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

NEED FOR THE STUDY

LIMITATIONS OF THE STUDY

RESEARCH METHODOLOGY

FINDINGS,

SUGGESTIONS,

CONCLUSION

ENTERTAINMENT INDUSTRY PROFILE

CHAPTER -2 INDUSTRY PROFILE 16-56

CHAPTER -3 THEROTICAL BACK GROUND OF THE 57-87


STUDY

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION 88-106

CHAPTER -5 FINDINGS, SUGESTIONS, CONCLUSIONS. 107-110

QUESTAIONARIE 111-113

BIBLIOGRAPHY 114

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CHAPTER-1
INTRODUCTION

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EXECUTIVE SUMMARY:

The study on customer perception and satisfaction towards PVR cinemas has been carried out
for academic purpose. The objective behind the project to evaluate the customer perception and
satisfaction.

The main function of this project is to analyse how the customer perception and satisfaction
towards PVR cinemas.

The 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.

PVR is a brand name synonymous with state-of-the-art cinema exhibition Industry. PVR
specializes in developing and operating state-of-the-art Multiplexes.

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INTRODUCTION:

Priya village roadshows known as PVR was established in the year 1997 in the month of
June. And it has 170 (800 screens).

Over the last decade, PVR 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 entertainment industry. 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 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.

INTRODUCTION OF THE TOPIC:

TOPIC NAME: The study on customer satisfaction towards PVR cinemas.

NATURE OF STUDY: The study was carried out by primary and secondary data.

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OBJECTIVES OF THE STUDY:

• To know the service provided by PVR cinemas to the customer.

• To know consumer perception level of PVR cinemas.

• To know consumer satisfaction level of PVR cinemas.

• To examine the impact of PVR cinemas on customer.

SCOPE OF THE STUDY:

• This study will help to know the concept of PVR cinemas.

• This study will help to know the how PVR reacts to the customer complaints.

• This study will help to know the opportunities for customer to select the cinema
houses of their choice.

NEED OF THE STUDY:

The main purpose of this study is to know the performance of PVR cinemas.

And also, its helps to find out the various opportunities to know customer needs wants and
demands of customer from the PVR cinemas

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LIMITATION OF THE STUDY:

The study is only based on secondary data.

As project t is prepared only for academic purpose so it suffers from the limitation of time.

RESEARCH METHODOLOGY:

Research can be defined as a systematic search for information on a particular topic. Research
is an academic and such the term should be the used in a technical sense. A design a
specification of methods and procedures for acquiring the information needed. Structurally to
solve the problem. Research design must be described as a series of advance decision that are
taken together from a model for the conduct of investigation. For the study there should be a

research design, so that the study is carried on systematically .

❖ Methodology

The purpose of any research is to find conclusion of a problem in a systematic manner in


view of various types of employees or respondent. The research methodology includes the
following.

❖ Sources of data

Data is collected from two types of sources – primary and secondary data. Primary data is
which is collected for first time and without any reference. The data collected from past record
is known as secondary data.

This project is purely based on secondary data .

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❖ Secondary data

Secondary data is the data which has been already collected and analyzed by
enumerators. Secondary data is collected through.

➢ Collected through Factsheets.

➢ Collected through Internet.

➢ Collected through Websites

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❖ FINDINGS:

• THE IMPORTANT FINDINGS OF THE PRESENT STUDY ARE LISTED HERE,

1. It was revealed that the majority of the respondents were belonging to 22-32 age group.
2. It was found that 66% of the respondents are Male and 34% of the respondents are
Female.
3. It was depicted that 49% belongs to graduation and 39% belongs to post graduation.
4. It was found that from 100 respondents 51% belongs to student group, the majority of
the respondents were belonging to students’ groups.
5. It was found that 100 respondents 78% come to know about PVR cinemas by their
friends’ group, so friends play major role in watching movies in PVR.
6. It was depicted from 100 respondents 96% of the respondents do like the PVR
cinemas and only 04% of the respondent’s dislike PVR cinemas.
7. It was found that from 100 respondents 15% respondents visit PVR cinemas weekly,
and 18% respondents visit PVR cinemas monthly, and 44% respondents visit on
holiday’s and 23% respondents visit rarely.
8. It was revealed that from 100 respondents 71% of the respondents book the movie
tickets offline.
9. It was found that the majority of the respondents said the service provided in PVR
Cinema is good.
10. It was revealed that from 100 respondents 99% of the respondents are satisfied with
service provided by PVR cinemas and only 01% of the respondents are not satisfied
with service provided by PVR cinemas.
11. It was found that 79% of the respondents do like the food and beverage provided by
PVR cinemas.
12. It was revealed that 100% of the respondents are happy about the screen and sound
quality in PVR cinemas.
13. It was found that 39% respondents prepare to watch all type of movies, like action,
horror, comedy, thriller, etc.

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• SUGGESTIONS:

1. I would like to suggest PVR Cinemas has to concentrate on all the age groups.
2. I would like to suggest PVR Cinemas should give more safety and preference to
female customers.
3. I would like to suggest PVR Cinemas should concentrate on attracting retired people
and business professionals in order to earn more reputation.
4. I would like to suggest If possible PVR Cinemas can make family sitting arrangement
separately so they feel more secure and safe.
5. I would like to suggest PVR Cinema should increase its advertisement in order to
cover all the demographic and Geographic aspects.
6. I would like to suggest PVR Cinema should give more offers to its customers to
attract them.
7. I would like to suggest PVR Cinemas should give more concentration towards
ticketing and its related offers.
8. I would like to suggest PVR should increase its service quality to gain more customer
attention.
9. I would like to suggest PVR can give good quality of food and beverage as customers
feel hungry at the time of intervals.
10. I would like to suggest PVR should give parking place to park the vehicles customers.

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❖ CONCLUSION:

This study examined the customer satisfaction in PVR cinemas and found a significant
influence of the same. The study immensely helped to understand the quality of different
services offered by PVR Cinemas. And the study helped to understand the customer
satisfaction towards PVR cinemas by conducting the survey online in questionnaire form. It
provided insights to the marketers for focusing on constructs of service quality in the
organization. A proper understanding of requirement of customers will help the marketer to
formulate a strategy to maintain a long-lasting relationship with the customers which will
helps to retain the existing customers and reduce the customer churn and hence attain
customer loyalty.

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CHAPTER-2
INDUSTRY PROFILE

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ENTERTAINMENT INDUSTRY:

The media and entertainment industry in India consists of many different segments under
its folds such as television, print, and films. It also includes smaller segments
like radio, music, out-of-home advertising, animation, gaming and visual effects
(VFX) and internet advertising.[1] The entertainment industry in India has registered explosive
growth in the last two decades making it one of the fastest-growing industries in India. From
a single state-owned channel, Door darshan in the 1990s there are more than 400 active
channels in the country. Worldwide, 2010 saw the global economy begin to recover from a
steep decline in 2009. Improved economic conditions in 2010 played a major role in a
rebound in customer spend. Since the world economy began to recover from the global
financial crisis of 2008, improved economic conditions played a major role in a rebound in
consumer spending.

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While India was not critically impacted by the downturn in 2008 and 2009, it demonstrated
one of the highest growth rates this year and continued to at a healthy pace. The rising rate of
investments by the private sector and foreign media and entertainment (M&E) majors have
improved India's entertainment infrastructure to a great extent. As per the recent report
by PricewaterhouseCoopers[2] (PwC), Indians are likely to spend more on entertainment in the
coming years with steady growth in their disposable income. And as per the combined survey
report by KMPG and FICCI, the entertainment industry in India is expected to expand by
12.5% every year and is likely to reach US$20.09 billion by the year 2013. The industry
pegged at INR 5808 billion in 2009 as compared to INR 3565 billion in 2005. The Indian
media and entertainment industry grew from US$12.9 billion in 2009 to US$14.4 billion in
2010, a growth of 11 percent, according to a report by the Federation of Indian Chambers of
Commerce and Industry (FICCI) and research firm KPMG.

The report also states that backed by positive industry sentiment and growing media
consumption, the industry is estimated to achieve growth of 13 percent in 2011 to touch
US$16.2 billion. As the industry braces for exciting times ahead, the sector is projected to
grow at a CAGR of 14 percent to reach US$28.1 billion by 2015.

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➢ HISTORY OF ENTERTAINMENT INDUSTRY:

A wrestling match at the Hanging Gardens in Bombay. In 1897, a film presentation by


Professor Stevenson featured a stage show at Calcutta's Star Theatre. With Stevenson's
encouragement and camera, Hiralal Sen, an Indian photographer, made a film of scenes from
that show, The Flower of Persia (1898). The Wrestlers (1899) by H. S. Bhatavdekar showed
some character for the first time.

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Dadasaheb Phalke is considered the father of Indian cinema, including Bollywood.

Dadasaheb Phalke's silent Raja Harishchandra (1913) is the first feature film made in India.
By the 1930s, the industry was producing over 200 films per year. The first Indian sound
film, Ardeshir Irani's Alam Ara (1931), was commercially successful. With a great demand
for talkies and musicals, Bollywood and the other regional film industries quickly switched to
sound films.

The 1930s and 1940s were tumultuous times; India was buffeted by the Great
Depression, World War II, the Indian independence movement, and the violence of
the Partition. Although most Bollywood films were unabashedly escapist, a number of
filmmakers tackled tough social issues or used the struggle for Indian independence as a
backdrop for their films. Irani made the first Hindi colour film, KisanKanya, in 1937. The
following year, he made a colour version of Mother India. However, colour did not become a
popular feature until the late 1950s. At this time, lavish romantic musicals and melodramas
were cinematic staples.

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Many actors, filmmakers and musicians from the Lahore industry migrated to the Bombay
industry during the 1940s, including actors K. L. Saigal, Prithviraj Kapoor, Dilip
Kumar and Dev Anand; playback singers Mohammed Rafi, Noorjahan, and Shamshad
Begum. Around the same time, filmmakers and actors from the Calcutta film industry began
migrating to Bombay; as a result, Bombay became the centre of Hindustani film production in
the Republic of India after partition. During this time period, actors such
as Shantaram, PaidiJairaj, and Motilal have made their mark.

Golden Age (late 1940s–1960s)

The period from the late 1940s to the early 1960s, after India's independence, is regarded by
film historians as the Golden Age of Hindi cinema. Some of the most critically acclaimed
Hindi films of all time were produced during this time. Examples include Pyaasa (1957)
and KaagazKePhool (1959), directed by Guru Dutt and written by Abrar Alvi; Awaara (1951)
and Shree 420 (1955), directed by Raj Kapoor and written by Khwaja Ahmad Abbas,
and Aan (1952), directed by Mehboob Khan and starring Dilip Kumar. The films explored
social themes, primarily dealing with working-class life in India (particularly urban life) in
the first two examples. Awaara presented the city as both nightmare and dream,
and Pyaasa critiqued the unreality of urban life.

Mehboob Khan's Mother India (1957), a remake of his earlier Aurat (1940), was the first
Indian film nominated for the Academy Award for Best Foreign Language Film; it lost by a
single vote. Mother India defined conventional Hindi cinema for decades. It spawned a genre
of dacoit films, in turn defined by Gunga Jumna (1961). Written and produced by Dilip
Kumar, Gunga Jumna was a dacoit crime drama about two brothers on opposite sides of the
law (a theme which became common in Indian films during the 1970s). Some of the best-
known epic films of Hindi cinema were also produced at this time, such as K. Asif's Mughal-
e-Azam (1960). Other acclaimed mainstream Hindi filmmakers during this period
included Kamal Amrohi and Vijay Bhatt.

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Nargis, Raj Kapoor and Dilip Kumar in Andaz (1949). Kapoor and Kumar are among the
greatest and most influential movie stars in the history of Indian cinema, and Nargis is one of
its greatest actresses.

The three most popular


male Indian actors of the
1950s and 1960s
were Dilip Kumar, Raj
Kapoor, and Dev Anand,
each with a unique acting
style. Kapoor
adopted Charlie
Chaplin's tramp; Anand
modelled himself on suave
Hollywood stars
like Gregory
Peck and Cary Grant, and
Kumar pioneered a form

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of method acting which predated Hollywood method actors such as Marlon Brando. Kumar,
who was described as "the ultimate method actor" by Satyajit Ray, inspired future generations
of Indian actors. Much like Brando's influence on Robert De Niro and Al Pacino, Kumar had
a similar influence on Amitabh Bachchan, Naseeruddin Shah, Shah Rukh
Khan and Nawazuddin Siddiqui.[51][52] Veteran actresses such as Suraiya, Nargis, Sumitra
Devi, Madhubala, Meena Kumari, Waheeda Rehman, Nutan, Sadhana, Mala
Sinha and Vyjayanthimala have had their share of influence on Hindi cinema.

Classic Bollywood (1970s–1980s)

The Salim-Javed screenwriting duo, consisting of Salim Khan and Javed Akhtar,
revolutionized Indian cinema in the 1970s and are considered Bollywood's
greatest screenwriters.

By 1970, Hindi cinema was thematically stagnant and dominated by musical romance
films. The arrival of screenwriting duo Salim-Javed (Salim Khan and Javed Akhtar) was a
paradigm shift, revitalising the industry. They began the genre of gritty, violent, Bombay
underworld crime films early in the decade with films such as Zanjeer (1973)
and Deewaar (1975). Salim-Javed reinterpreted the rural themes of Mehboob Khan's Mother
India (1957) and Dilip Kumar's Gunga Jumna (1961) in a contemporary urban context,
reflecting the socio-economic and socio-political climate of 1970s India and channelling mass
discontent, disillusionment and the unprecedented growth of slums with anti-
establishment themes and those involving urban poverty, corruption and crime. Their "angry
young man", personified by Amitabh Bachchan reinterpreted Dilip Kumar's performance
in Gunga Jumna in a contemporary urban context and anguished urban poor.

Amitabh Bachchan in 2014. The most successful Indian actor in the 1970s and 1980s, he is
considered one of India's greatest and most influential movie stars.

The name "Bollywood" was coined during the 1970s, when the conventions of commercial
Bollywood films were defined. Key to this was the masala film, which combines a number of
genres (action, comedy, romance, drama, melodrama, and musical). The masala film was
pioneered early in the decade by filmmaker Nasir Hussain, and the Salim-Javed screenwriting

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duo, pioneering the Bollywood-blockbuster format. Yaadon Ki Baarat (1973), directed by


Hussain and written by Salim-Javed, has been identified as the first masala film and the first
quintessentially Bollywood film. Salim-Javed wrote more successful masala films during the
1970s and 1980s. Masala films made Amitabh Bachchan the biggest Bollywood star of the
period. A landmark of the genre was Amar Akbar Anthony (1977), directed by Manmohan
Desai and written by Kader Khan, and Desai continued successfully exploiting the genre.

SinganalluruPuttaswamyMuthuraj (24 April 1929– 12 April 2006), known magnanimously by


his stage name Rajkumar, was an Indian film actor and playback singer in the Kannada cinema.

Widely acclaimed as one of the greatest actors in the history of Indian cinema and a versatile
actor,

Rajkumar entered the film industry after his long stint as a dramatist with Gubbi
Veeranna's Gubbi Drama Company, which he joined at the age of eight before he got his first
break as a lead in the 1954 film BedaraKannappa. He went on to work in over 210 films
essaying a variety of roles and excelling in portraying mythological and historical characters
in films such as Bhakta Kanakadasa (1960), RanadheeraKanteerava (1960), Satya
Harishchandra (1965), ImmadiPulikeshi (1967), Sri Krishnadevaraya (1970), Bhakta
Kumbara (1974), Mayura (1975), Babruvahana (1977) and Bhakta Prahlada (1983).

In his film career, Rajkumar received eleven Karnataka State Film Awards, including nine Best
Actor and two Best Singer awards, eight Filmfare Awards South, and one National Film Award.] He
holds the record of receiving Filmfare Award for Best Actor – Kannada and Karnataka State Film

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Award for Best Actor the highest number of times. He received the NTR National Award in 2002.
He was awarded an honorary doctorate from the University of Mysore, and is a recipient of
the Padma Bhushan (1983) and the Dadasaheb Phalke Award (1995) for lifetime contribution
to Indian cinema. A mega icon and a socio-cultural symbol of Kannada, he has been credited
with redefining Kannada cinema and also putting the Kannada cinema on the national map. His
1986 movie AnuragaAralithu was the first Indian movie to be remade in six other languages.

Shivaji Rao
Gaekwad (born 12
December 1950), known
professionally
as Rajinikanth, is an
Indian actor who works
primarily in Tamil
cinema. In addition to
acting, he has also worked
as a producer and
screenwriter. He has won
many awards, including
four Tamil Nadu State
Film Best Actor
Awards and a Filmfare Best Tamil Actor Award. The Government of India has honoured him with
the Padma Bhushan (2000) and the Padma Vibhushan (2016).

New Bollywood (1990s–present)

Shah Rukh Khan, one of the "Three Khans", in 2012. He was the most successful Indian actor
for most of the 1990s and 2000s

Aamir Khan, one of the "Three Khans", in 2008. He has been the most successful Indian actor
since the late 2000s.

Known since the 1990s as "New Bollywood", contemporary Bollywood is linked to economic
liberalization in India during the early 1990s. Early in the decade, the pendulum swung back
toward family-centred romantic musicals. Qayamat Se Qayamat Tak (1988) was followed by

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blockbusters such as Maine Pyar Kiya (1989), Hum Aapke Hain Kaun (1994), Dilwale
Dulhania Le Jayenge (1995), Raja Hindustani (1996), Dil To Pagal Hai (1997)
and KuchKuchHota Hai (1998), introducing a new generation of popular actors, including
the three Khans: Aamir Khan, Shah Rukh Khan, and Salman Khan, who have starred in most
of the top ten highest-grossing Bollywood films. The Khans and have had successful careers
since the late 1980s and early 1990s, and have dominated the Indian box office for three
decades. Shah Rukh Khan was the most successful Indian actor for most of the 1990s and
2000s, and Aamir Khan has been the most successful Indian actor since the mid-
2000s. Action and comedy films, starring such actors as Akshay Kumar and Govinda.

The 2000s saw increased Bollywood recognition worldwide due to growing (and
prospering) NRI and Desi communities overseas. The growth of the Indian economy and a
demand for quality entertainment in this era led the country's film industry to new heights in
production values, cinematography and screenwriting as well as technical advances in areas
such as special effects and animation. Some of the largest production houses, among
them Yash Raj Films and Dharma Productions were the producers of new modern films.
Some popular films of the decade were KahoNaa... Pyaar Hai (2000), Kabhi Khushi
KabhieGham... (2001), Gadar: Ek Prem Katha (2001), Lagaan (2001), Koi... Mil
Gaya (2003), KalHoNaa Ho (2003), Veer-Zaara (2004), Rang De Basanti (2006), Lage
RahoMunna Bhai (2006), Dhoom 2 (2006), Krrish (2006), and Jab We Met (2007), among
others, showing the rise of new movie stars. During the 2010s, the industry saw established
stars such as making big-budget masala films like Dabangg (2010), Singham (2011), EkTha
Tiger (2012), Son of Sardaar (2012), Rowdy Rathore (2012), Chennai
Express (2013), Kick (2014) and Happy New Year (2014) with much-younger actresses.
Although the films were often not praised by critics, they were commercially successful.
Some of the films starring Aamir Khan have been credited with redefining and modernising
the masala film with a distinct brand of socially conscious cinema.

Most stars from the 2000s continued successful careers into the next decade, and the 2010s
saw a new generation of popular actors in different films. Among new conventions, female-
centred films such as The Dirty Picture (2011), Kahaani (2012),
and Queen (2014), Parched (2015), Pink (2016) started gaining wide financial success.

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❖ HISTORY OF RADIO ENTERTAINMENT INDUSTRY:

All India Radio (AIR), officially known since 1956 as Akashvani ("Voice from the Sky"), is
the national public radio broadcaster of India and is a division of Prasar Bharati. It was
established in 1936. It is the sister service of Prasar Bharati's Door darshan, an Indian
television broadcaster. Headquartered in the Akashvani Bhavan building in New Delhi, it
houses the Drama Section, the FM Section, the National Service, and is also home to the
Indian television station Door darshan Kendra, (Delhi).

All India Radio is the largest radio network in the world, and one of the largest broadcasting
organizations in the world in terms of the number of languages broadcast and the spectrum of
socio-economic and cultural diversity it serves. AIR’s home service comprises 420 stations
located across the country, reaching nearly 92% of the country’s area and 99.19% of the total
population. AIR originates programming in 23 languages and 179 dialects Broadcasting

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began in June 1923 during the British Raj with programs by the Bombay Presidency Radio
Club and other radio clubs. According to an agreement on 23 July 1927, the private Indian
Broadcasting Company Ltd (IBC) was authorized to operate two radio stations:
the Bombay station which began on 23 July 1927, and the Calcutta station which followed on
26 August 1927. The company went into liquidation on 1 March 1930. The government took
over the broadcasting facilities and began the Indian State Broadcasting Service (ISBS) on 1
April 1930 on an experimental basis for two years, and permanently in May 1932 it then went
on to become All India Radio on 8 June 1936.

On 1 October 1939, the External Service began with a broadcast in Pushtu. It was intended to
counter radio propaganda from Germany directed at Afghanistan, Persia and Arab nations.
1939 also saw the opening of the Dhaka station of Eastern India, in what is now Bangladesh.
This station catered and nurtured the pioneers of Bengali intellectuals. The foremost among
them, Natyaguru Nurul Momen, became the trail-blazer of the talk-show in 1939. He wrote
and directed the first modern radio-play for this station in 1942. When India became
independent in 1947, the AIR network had only six stations
(Delhi, Mumbai, Calcutta, Chennai, Lucknow, and Tiruchirappalli). The three radio stations
at Lahore, Peshawar and Dhaka remained in what became Pakistan after the division. The
total number of radio sets in India at that time was about 275,000. On 3 October 1957,
the Vividh Bharati Service was launched, to compete with Radio Ceylon. Television
broadcasting began in Delhi in 1959 as part of AIR, but was split off from the radio network
as Door darshan on 1 April 1976. FM broadcasting began on 23 July 1977 in Chennai, and
expanded during the 1990s.

Deccan Radio (Nizam Radio 1932), the first radio station in Hyderabad
State (now Hyderabad, India), went live on air on 3 February 1935. It was launched by Mir
Osman Ali Khan the 7th Nizam of Hyderabad with a transmitting power of 200 Watts. On 1
April 1950, Deccan Radio was taken over by the Indian Government, and in 1956 it was
merged with All India Radio (AIR). Since then, it has been known as AIR-Hyderabad
(100 kW).

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❖ TELEVISION INDUSTRY:

Television is one of the major mass media of India and is a huge industry and has
thousands of programs in all the states of India. Today India boasts of being the second-
largest television market in the world.[4] The small screen has produced numerous celebrities
of their own kind some even attaining national fame. TV soaps are extremely popular with
housewives as well as working women. Approximately half of all Indian households own a
television. Television first came to India in the form of Door darshan (DD) on Sept 15,
1959.[5] Door darshan is the National Television Network of India and also one of the largest
broadcasting organizations in the world. Apart from the state-run Door darshan, there are
six direct to home players with 54.52 million DTH users in India with the present prediction;
it is likely to overtake the US in terms of the largest DTH market in the world. As of 2012,
the country has a collection of free and subscription services over a variety of distribution
media, through which there are over 823 channels of which 184 are pay channels. Total
television viewership of 415 million is amongst the world's highest with nearly 15-16
Television companies beaming programmers to India. The major players being Door
darshan, STAR TV (Satellite Television Asia Network), Zee Television, United

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Television, CNN, Sony Television, ATN (Asia Television Network), BBC World, SUN
TV, Discovery Channel, TNT and others.[6]

India's television business has an estimated $3.4 billion in revenue in 2005, according to
PricewaterhouseCoopers. With the government focusing more on digitalization, TV
distribution is taking a new shape. Digitalization has been a major challenge for the
government as the digital cable is not gaining momentum. According to the new deadline, pan
India digitalization is expected to happen by December 31, 2014. Another challenge for the
Television Industry is Average Revenue Per User (ARPU). India is amongst the countries
with the lowest ARPU as compared to developed countries like the US and UK where ARPU
is around US$45 to US$60, India has an ARPU approximately US$3.5.

❖ PRINT INDUSTRY:

The Indian print media industry is expected to grow by 9.6 percent over the period
2010-15.[7] The print industry is expected to grow from Rs 128 bn in 2006 to Rs 232 bn by
2011, at 12.6% CAGR. While the newspaper industry is estimated at Rs 112 bn, the magazine
segment is valued at Rs 16 bn.[8] The newspaper industry is also projected to perform well for
the next five years growing at a CAGR of 10.1 percent according to a report titled "India
Entertainment and Media Outlook 2011" by PricewaterhouseCoopers. Indian print industry is
growing strong and is expected to grow similarly while the global print industry is moving
towards digitalization and showing a negative growth rate year on year. The print industry in

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India is the world's second-largest with over 90 million copies in circulation daily after China
with 130 million copies in circulation daily. Most newspaper has an online [9] presence and a
growing view counts on their portals. Much of the entertainment and media segments are now
focusing on growth in regional areas and smaller towns. In 2009, when there was a
slowdown, the regional print showed growth in local to local advertisement. [10] In 2010,
regional print further increased its share in overall print advertisement revenue pie. Regional
papers give advertisers access to localized populations and their niche target audience,
difficult to do via national broadcast media. Newspapers have realized the value and have
gone one step further and have launched area specific newspapers.[11] With the rise in literacy
in past decade has led to the rise of regional newspapers, they have much greater reach and a
large audience to entertain. Magazines have not been at their best performance in past few
years. However, niche magazine is doing well and is expected to show positive growth. The
major challenge faced by this segment of media and entertainment industry is newsprint
which continues to threaten profitability.

❖ FILM INDUSTRY:

Films are the most important form of entertainment in India. Film industry in India is among
the largest in the world in terms of films produced[13] (approximately 1000) in different
languages which include films in Hindi, Kannada, Bengali, Tamil, Marathi, Telugu, Punjabi
and Malayalam.[14] Approximately twenty-three million Indians go to see a film every

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day. Film Federation of India is the apex body of the film industry in India whose objective is
to popularize and promote the cinema[15] According to unofficial estimates available in
January 2001, the Indian film industry has an annual turnover of Rs. 60 billion
(approximately US$1.33 billion). It employs more than 6 million people, most of whom are
contract workers as opposed to regular employees. As at the start of 2001, a reasonable
budget film in any Indian language could cost US$1.75 million. A low budget Indian
language film can be made for even as low as Rs. 15 million. A big-budget Indian language
movie can cost in excess of US$30 million. The 'bigness' of the budget is attributable mainly
to the high fees paid to 'stars', celebrated music directors, high-end technologies and
expensive travel costs to shoot in exotic locations worldwide. At the time of writing, it is
believed that lead actors 'stars' are paid around Rs. 100 million (US$440,000) per film. India
has a National Film Development Corporation (NFDC) which finances some films. A few
filmmakers, who would find it hard to obtain finance from the regular sources, have been
financed by the NFDC.[16] However, NFDC cannot be considered to play a central role in the
film industry because it finances too few films which, too, are not of the type that has made
the Indian film industry so vibrant.

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❖ ANIMATION INDUSTRY:

The Indian Animation Industry encompasses traditional 2D animation, 3D animation and visual
effects for feature films.[1][2][3] In 1956, Disney Studios animator Clair Weeks, who had worked on Bambi,
was invited to Films Division of India in Mumbai to establish and train the country's first animation studio
as part of the American technical co-operation mission.[4] He trained a core group of Indian animators,
whose first production was a film called The Banyan Deer (1957). Veteran animator Ram Mohan started
his career at Films Division's Cartoon Unit.

Another landmark animated film from Films Division is EkAnekAur Ekta, a short traditionally
animated educational film released in 1974.[5][6] The film is presented as a fable meant to teach children the
value of unity, and was frequently broadcast on India's state-run television station, Door darshan. The first
Indian animated television series was GhayabAaya, which aired in 1986 and was directed by Suddhasattwa
Base. The first Indian 3D and VFX were done for the television series Captain Vyom by animation.

The first Indian 3D animated film was Roadside Romeo, a joint venture between Yash Raj Films and
the Indian division of the Walt Disney Company. It was written and directed by Jugal Hansraj.

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❖ RADIO INDUSTRY:

Radio broadcasting in India started in British India in 1923 with the Radio Club of
Bombay. All India Radio (AIR) was established in 1936 which is one of the largest radio
networks in the world including the AIR FM. AM, FM and even Satellite Radio have made a
huge impact on the Industry in India.[17] Most of the media houses either already have a
presence in the industry or are looking to get a license in the next round. Famous stations are
Radio Mirchi (of the Times Group) has maintained a lead position in most cities it operates in
and other channels like Radio City, Red FM, Big FM, Fever, Radio One have also been able to
get significant traction.[18] Till 1990 Indian economy was closed, no private player was allowed
to enter and Akashwani has the sole responsibility to cater to the wide and culturally diverse
Indian consumer base. In the last 5 years, the Radio industry in India has seen a compound
annual growth rate of approximately 20% and has grown to a size of around Rs. 8.3 billion in
2008. By the end of 2010, there were 245 active radio stations in India and had a market size
of INR 10 billion. It registered a cumulative growth rate of 11 percent from 2007 to 2010. The
industry is projected to grow at a CAGR of 20 percent over 2010- 2015 and is expected to be

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INR 25 billion in terms of revenue. Phase III privatization of the radio FM is expected to add
839 new radio stations in 294 cities.[19] The government has approved Foreign Direct
Investment (FDI) in FM radio channels to 26 percent from the current 20 percent. Ministry of
Information and Broadcasting is planning to release additional frequencies in all markets,
automatic renewal of the license at the end of the initial term of the license of the term.[20] One
of the major reasons for such an interest in the industry is the increased profitability. The
government has cut the license fees to 1/10th of the previous amount.

❖ CONTROVERSIAL IP PROTECTION BY THE INDIAN FILM


INDUSTRY:

The Indian film industry has allegedly engaged in illegal activities by hiring IT professionals
who were said to have launched a Denial-of-service attack against websites that they believe
are violating the intellectual property of their clients.

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❖ COMPANY PROFILE:

Type: Public
NSE: PVR
BSE: 532689

Industry Entertainment (movie theatres)

Founded June 1997; 23 years ago,

Headquarters Gurugram

Number of locations 170 (800 screens)[1]

Key people Ajay Bijli


(Chairman and MD)

Products Movie

Revenue ₹31,187 million (US$440 million)

Net income ₹1.83 billion (US$26 million)

Number of employees above 1,600

Website www.pvrcinemas.com

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PVR Cinemas is a film entertainment public limited company in India. The company started
as a joint venture agreement between Priya Exhibitors Private Limited and Village
Roadshow Limited in 1995 with 60:40 ratio. It began its commercial operations in June 1997.
The company is founded by Ajay Bijli who is the chairman and managing director of PVR
Cinemas. Ajay Bijli's brother Sanjeev Kumar Bijli is the Joint Managing Director of PVR
Ltd. The company also operates a pro-active CSR wing under PVR. The first PVR Gold
Screen was introduced in Forum Mall, Bangalore.

PVR Cinemas has its origin as Priya Cinema in South Delhi, which was bought by Ajay
Bijli's father in 1978, who also owned a trucking business, Amritsar Transport Co. In 1988,
Bijli took over the running of the cinema hall, which was revamped in 1990, and its success
led to the founding PVR Cinemas.

In 2003, ICICI Ventures invested ₹40 crore in PVR when Priya Village Roadshow decided to
pull out of the partnership. In 2012, Kinaki group owned Cinemax cinema chain was bought
by Cine Hospitality Private Ltd, a subsidiary of PVR Cinemas for ₹395
crore (US$55 million), making PVR the largest cinema chain in India. In May
2016, DLF group owned DT Cinemas was bought by PVR Cinemas for ₹433
crore (US$61 million). Recently PVR Cinemas ventured into a new cinema concept-
Superflex in Noida. The cinema has 15 screens with IMAX, 4DX, Gold Class, a playhouse
and mainstream auditoriums. PVR Cinemas has invested ₹48 crores in this new venture.
PVR's first "Gold Screen" was launched in Indore in 2007.] Recently, PVR Cinemas in
association with HP India has launched Asia's first Virtual Reality (VR) Lounge at PVR
ECX, Mall of India, Noida.

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Locations:
PVR has a strong presence with 822 screens in 172 locations across 69 Indian cities (21 States
& UT) & Sri Lanka.

Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Priya Vasant Vihar 01

PVR Rivoli Connaught Place 01

PVR Shalimar Bagh Shalimar Bagh 04

PVR Prashant Vihar Rohini 03

National
PVR Select
Capital Delhi
Citywalk ( IMAX & Saket 03
Region
Gold)

PVR Select
Saket 03
Citywalk (Premiere)

PVR Vikaspuri Vikaspuri 03

PVR Naraina Naraina 04

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Anupam Saket 04

PVR Plaza Connaught Place 01

PVR Director's Cut Vasant Kunj 04

PVR 3C's Lajpat Nagar 01

PVR Sangam R.K Puram 02

Pvr Pacific (Premiere


Subhash Nagar 06
and 4dx

PVR Superplex
Dwarka 12
VEGAS MALL

Pvr Logix (IMAX


Sector 32 15
and 4DX)

Noida
PVR ECX Mall of
India (P[XL] and Sector 18 07
4DX)

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Number
State or
City Theatre name Theatre locality of
territory
screens

Faridabad PVR Crown Plaza Sector 15 02

PVR East Delhi Kaushambi 03

Ghaziabad PVR Opulent Gandhi Nagar 04

PVR Mahagun Vaishali 04

PVR MGF MGF Mall 07

PVR Ambience &


Ambience Mall 6+
Paytm IMAX 3D

PVR Shahara Shahara Mall


Gurgaon

PVR City Centre DLF City Centre Mall

PVR MGF 4DX MGF Mall

PVR DLF Mega Mall DLF Mega Mall

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Flamez Firozpur Road 04

Ludhiana PVR Pavilion Mall Fountain Chownk 06

PVR Silver Arc Ferozpur Road 06

Sahibzada Ajit
PVR Mohali Sector 117 09
Singh Nagar

BMC Chownk Sehdev


PVR MBD Mall 04
Market
Punjab
Jalandhar

Punjabi Bagh
PVR Curo Mall 05
Extension

Tribune Chowk,
PVR Centra 04
Industrial Area Phase I

Chandigarh

Purv Marg, Industrial


PVR Elante Mall 08
Area Phase I

Pathankot PVR Novelty Novelty Mall 04

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Number
State or
City Theatre name Theatre locality of
territory
screens

Amritsar PVR-SCT City Centre 06

PVR Aura Mall Goldmohur 03

Bhopal

PVR Crown Mall Hoshangabad Road 04

PVR Tansen Plaza


Hazira, Gadhaipura
Mall (Opening Soon)

PVR Keshar Mall


Keshar Apartments
(Opening Soon)
Madhya
Pradesh
PVR Shatabdipuram Commercial Block,
Complex (Opening Shatabdipuram-2,
Gwalior
Soon) Bhind Road, Gwalior

PVR Ambience /
Elixir MK City Sirol
eminence Mall
Main Road
(Opening Soon)

PVR Gravity Mall


City Center Extension
(Opening Soon)

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Treasure Bazzar


Ujjain Jawahar Nagar 03
Mall

PVR Treasure Island


Indore M.G. Road 05
Mall

NH-75 Panna Road


Satna PVR Utsav Mall 03
Satna

PVR Magneto Mall Telibanda 04

Raipur
PVR Cinemax City
Devendra Nagar 05
Center Mall

Chhattisgarh
PVR Rama Magneto DeenDayalUpadhay
Bilaspur 04
Mall Chowk

PVR Surya Treasure


Bhilai Surya Vihar 04
Island Mall

PVR Centre Point


Jharkhand Dhanbad Bank More 04
(opening soon)

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Number
State or
City Theatre name Theatre locality of
territory
screens

Bokaro Steel
PVR Bokaro Mall Sector III/C 03
City

Ranchi PVR Nucleus Mall Lalpur 04

PVR Ampa Skywalk Aminjikarai 07

PVR SKLS Galaxy


Red Hills 05
Mall

PVR Grand Mall Velachery 05

Chennai PVR Grand Galada Meenambakkam 05

Tamil Nadu

PVR VR Chennai Anna Nagar 10

PVR Play House Uthandi ECR 10

PVR Airport
Tirusulam 05
(Opening Soon)

Vellore PVR Velocity Gandhi Nagar 05

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Number
State or
City Theatre name Theatre locality of
territory
screens

Uttarakhand Dehradun PVR Pacific Mall Jakhan 05

PVR Vinayak City


Allahabad Civil Lines 04
Center

Gorakhpur PVR Venus Mall Cinema Road 04[12]

Moradabad PVR Parshvanath Ashiyana Colony 04

Bareilly PVR Phoenix United Mahanagar 04

Uttar
Pradesh PVR Cinemax South
Kanpur Kidwai Nagar 03
X

PVR Deep Plaza


Kanpur Saket Nagar 03
(Opening Soon)

PVR Saharaganj Hazratganj 04

Lucknow
PVR United Phoenix LDA Alambhagh
07
Mall Colony

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Mani
Maniktala Main Road 04
Square Mall

Kolkata PVR Uniworld Action Area III, New


05
Downtown Mall Town
West Bengal

PVR Diamond Plaza Jessore Road 05

PVR Avani Riverside Jagat Banerjee Ghat


Howrah 04
Mall Road

PVR Dona Planet Bhangagarh 02

Assam Guwahati

PVR City Center Ganeshguri 05

PVR Forum
Udaipur Bhuwana 04
Celebration Mall

Rajasthan

Indraprastha Industrial
Kota PVR Cinemall 03
Area

Karnataka Bengaluru PVR Forum Mall Koramangala 11

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Orion Mall Rajajinagara 11

PVR Vega City Bilekahalli 12

PVR VR Bengaluru Mahadevapura 09

PVR Market City Mahadevapura 09

PVR Arena Mall Marathahalli 06

PVR Central Spirit


Bellanduru 04
Mall

PVR MSR Elements


Thanisandra 07
Mall

PVR Vaishnavi
Yeshwanthpura 06
Sapphire

PVR Kempegowda
Gandhinagar
Road (Opening Soon)

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Garuda Mall Agrahara 04

Mysuru

PVR Mysuru Forum Nazarabad 06

PVR Mangalore
Mangalore Pandeshwara 06
Forum

Hubballi PVR Laxmi Mall Coen Road 04

PVR Central Panjagutta 05

PVR R K Complex Banjara Hills 03

PVR Inorbit Mall Cyberabad 06

Telangana Hyderabad PVR Forum Mall Kukatpally 09

PVR ICON L&T


HITEC City 06
Metro Mall

PVR Play House


Panjagutta 08
L&T Metro Mall

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR 4DX L&T


Irrum Manzil 07
Metro Mall

PVR L&T Metro


Musarambagh 06
Mall

PVR Preston Prime Gachibowli 04

PVR Maruthi Infinity


Chanda Nagar 05
Mall (Opening Soon)

PVR ADT Atrium


Gachibowli 05
(Opening Soon)

PVR PatnyCenter
Secunderabad 11[13]
(Opening Soon)

Andhra
Vijayawada PVR Ripples Labbipet 04
Pradesh

Kerala Kochi PVR LuLu Mall Edappally 09

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Cinemax Oberon Edappally 04

PVR Acropolis S.G. Highway 06

PVR
Ahmedabad ArvedTranscube Ranip 07
Plaza

PVR Motera Motera 04

Surat PVR Rahul Raj Mall Dummas Road 08

Gujarat
PVR Deep Old Chhani Road 03

PVR VedTranscube
Vadodara Sayajigunj 07
Plaza

PVR Eva Mall Manjalpur 05

Gandhinagar PVR Suman Mall Sector 11 04

Mehsana PVR Hubtown Modhera Cross Road 02

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Dynamix Mall Juhu 05

PVR Nirmal
Mulund 06
Lifestyle Mall

PVR Oberoi Mall Goregaon 06

PVR High Street


Lower Parel 07
Phoenix

PVR Phoenix
Maharashtra Mumbai Kurla 07
Marketcity

PVR Citi Mall Andheri 05

PVR Orion Mall Panvel 05

PVR Milap Kandivali West 02

PVR Lodha Xperia Dombivli 06

PVR Sion Sion 03

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Empress Mall Empress City 05

Nagpur

PVR Eternity Mall Sitabardi 03

Aurangabad PVR Aurangabad Chikalthana 03

Latur PVR Latur Ekmat Chowk 03

PVR Utsav at Kirti


Jalgaon Jaikisan Wadi 03
Mall

Kolhapur PVR DYP City Mall Shahupuri 03

PVR Phoenix Market


Viman Nagar 09
City

PVR City One Mall Pimpri 05


Pune

PVR Nitesh Hub Koregaon Park 07

PVR Inorbit Mall Vadgaon Sheri 04

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Number
State or
City Theatre name Theatre locality of
territory
screens

PVR Kumar Pacific


Gultekdi 04
Mall

PVR ICON The


Shivaji Nagar 06
Pavilion

• PVR IN FARIDABAD:

In May 2017, the company inaugurated its sixth multiplex, PVR Located at the popular Ansel
Crown Plaza in Faridabad, this two-screen multiplex has a total seating capacity of 522 seats.
It is the first of its kind in Faridabad.

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PVR launched its first ever franchised Cinema-PVR SRS in Faridabad. PVR SRS is a 3-
screenmultiplex that opened to the public on 12th November, 2017. It has a total capacity of
776 seats.

• PVR IN DELHI:

PVR has been a pioneer in multiplex development by setting up India’s first


multiplex PVR Anupam4 at Saket in city of Delhi. The company has since grown to become
the largest cinema exhibition player in the country and has 5 theatres with 19 screens in city
of Delhi/Gurgaon under its
operation. The Cinema can boast of the highest box office collections in India for five
consecutive years since its opening. Located around the Cinema in the same complex are a
number of up-market restaurants, pubs and fast-food eateries that make it a popular youth
hangout place and indeed an entertainment experience for the entire family Priya, a 25-year-
oldcinema still considered the best Cineplex in Delhi, was completely renovated and brought
into the fold of PVR in January 2000. PVR Priya boasts of the highest box office collections
in the city of Delhi after Partake. It also has the distinction of having the widest screen in
India. Following the tremendous success in South Delhi, PVR expanded to West Delhi
in2001 with the launch of two new multiplexes -- PVR Nagaina, and Vikaspuri. PVR
Naraina, with four screens and830 seats, was launched in August 2001. PVR Vikaspuri
(3screens, 921 seats) was launched in November 2001.PVR Group has re-opened one of

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Delhi's oldest and most popular cinema hall, Plaza; now known as PVR Plaza. With a seating
capacity of 300 seats, the all new single screen auditorium has been renovated and
refurbished to bring back its former glory. The cinema, unique in its nature, combines the
look and feel of the 50s with the state-of-the-art cinema viewing technologies of today.
The most recent addition to the chain is PVR EDM, this three-screen multiplex, located in the
popular East Delhi Mall, is equipped with the state of-the-art technology and is one of its'
kind in the vicinity.

The three-screen multiplex has a total seating capacity of 723 seats. It is equipped with the
latest THX-approved three-way surround sound system with real life sound effects and state-
of-the-art projection facility with the latest Xenon-based technology. The stadium seating
arrangement ensures unobstructed viewing from anywhere in the auditorium.

• PVR IN GURGAON:

In May 2016, PVR Cinemas opened North India's largest multiplex- a 7-screen cinema in
Gurgaon. Built over an area of 55000sq ft, this multiplex has an avant-garde lobby with
studio effect interior and currently offers a seating capacity of 1300 seats. Two luxurious
auditoriums called ‘Cinema Europa' have been custom built with vibrant red, plush reclining
seats, double armrests and ample legroom offering patrons a comfortable and relaxed cinema
viewing environment. The choice of movies played at the Europa are an eclectic mix of
tastefully chosen niche Indian films, internationally acclaimed as well as Oscar winning
Hollywood films.

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• PVR IN BANGALORE:

PVR Cinemas has opened India's biggest multiplex (11 screens) in Bangalore. Built over
1,20,000 sq. ft of space, this state-of-the-art multiplex located in the heart of Bangalore at the
Forum Mall in Koramangala with seating capacity of 2019 seats.

These multiplexes include two ultra-premium cinemas known as the Gold Class and two
luxurious auditoriums called Cinema Europa in addition to seven Classic auditoriums.

• PVR FIRSTS:

• First to launch a multiplex in India - PVR Anupam Saket, Delhi

• First to launch India's biggest 11 screen multiplex - PVR, Bangalore

• First to bring premier movie viewing to India with the exclusive Europa Cinema and
Lounge at PVR Gurgaon

• First to introduce Gold Class Cinemas in India at PVR, Bangalore

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• First to form a foreign joint venture with Village Roadshow, Australia

• First to receive institutional funding in the cinema industry – from ICICI Venture

• First to offer computerised & online ticketing

• First to accept credit cards in cinemas

• First to introduce mobile based information & ticketing service

• First to launch a loyalty program for movie-goers in India

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CHAPTER-3

THEROTICAL BACK GROUND OF THE STUDY

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❖ THEORETICAL BACKGROUND OF THE STUDY:

PEST ANALYSIS:

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.

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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 than160,000 seats by the end of 2006.

In India the multiplex business is modelled 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 India’s status as a good IT hub for outsourcing by U.S. companies,


young Indians between 20 to 24 years old, who ordinarily wouldn’t be able to find work
easily, are finding jobs with call centres straight out of college. Now they have disposable
income that’s 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 2016, the average Indian household increased its spending on movies and theatre as a
percentage of its disposable income from 1% to4.6%.

Organised retail boom:

A growth in consumption levels, changing lifestyles, the availability of quality real estate and
significant investments in malls are expected to resulting an increase in the size of the
organized retail business in India. The organized retail market in India is expected to increase

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its share of the total retail market from 2% as of 2017 to reach 5-6% by the 2018. The number
of malls in India is expected to increase from approximately 50 as of the end of
2017 to around 250 by the end of 2019. One of the key elements for the
success of a mall is its ability to drive footfalls consistently. Multiplexes arene 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 are making the movie goers, especially in urban India,
experience 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 90’s 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 2016 until 2019-20, there was an increase 48% in
the number of releases per week for high grade Hindi films.

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Average number of Hindi 2016 2017 2018 2019 - 20


films release / week

1.15 1.46 1.58 1.71

Increasing corporatisation 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 2017 to around 600by 2010, the quality of the
movies produced is expected to increase.

Political:

The year 2017 also witnessed a change in the political scenario of the country with a positive
impact on the regulatory scenario. A new set of policy maker are looking at this segment with
a fresh perspective, which Isa positive sign. On the other hand, this does give rise to delayed
policy decisions, a fact not favoured by all.

Several state governments provided incentives to encourage the growth of multiplexes. A


positive concession given to the cinema theatre industry in2002/03 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.

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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. In June 1997, we opened the first Multiplex Cinema in India in Saket,
Delhi. Since the beginning of 2001, several state governments unveiled tax incentives (by
way of complete or partial waiver of entertainment taxing the initial five years of operation)
to attract new investments in the film exhibition business.

tax incentives coupled with falling interest rates made investment in cinemas more attractive
and led to old cinemas being converted into Multiplexes and new Multiplexes being
established as part of shopping complexes (or malls).

State entertainment taxes in India are among the highest in Asia. This has resulted in pressure
on the profitability for a number of players in the exhibition business. As a result, exhibitors
(especially the single screen owners) have not been able to maintain anterograde their
cinemas. A worsening quality of cinemas resulted in a lower number of patrons, which put a
further strain on profitability. The entertainment tax percentage in certain states is set forth
below:
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

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Multiplex Cinemas and also encouraged single-screen theatres to convert into Multiplexes. The
quantum of entertainment tax benefit which may be available in each state is different and the
availability of these exemptions would be dependent 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:

Technological:

Film Distribution Holdups:

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 centres. 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 centres create three major problems for

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film exhibitors in B and C-class centres:

• Pirated DVD/VCD copies of the film are generally available by the time the film is released
in B and C class centres, which reduces demand;

• If the film was not a hit on its initial release in the A-class centres 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 scratchprint 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 centres operate on a 7% to 8%occupancy ratio.

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Impact of Digital Technology on Cinemas in India:

To counter this issue of low first instance release, digital cinemas are being opened in B and
C-class centres in India and movies are being released in those cinemas at the same time as
movies are released in the A-class centres. 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
2018, 100 digital cinemas had been opened in India, of which an estimated 65 were in
operation.

As of March 2018, 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 Band 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;

• Improved and consistent picture quality without regard to the location of the cinema; and

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• 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
centres) 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$ 90,000-110,000), 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.

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❖ SEGMENTATION, TARGETING AND POSITIONING:

SEGMENTATION:

On the basis of customer preferences, we may classify PVR 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, PVR is a Concentrated Market because they only
cater to the premium movie-going audience i.e. SEC A and SEC B.

PVR Cinemas has approx. 22 million movie goers per month

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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

CONSUMER PSYCHOGRAPHIC SEGMENTATION:

PVR 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.

“PVR 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 BEHAVIOURAL SEGMENTATION:

USAGE RATE: 1/3 of the population attends the movies one or more times per month.

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WHAT?

1. What benefits that the customer seeks? – Complete moviegoing experience.

2. Factors influence PVR’s demand? – Price, movie, day, time of the day, day of the
week, month etc.

3. What function can the product perform for the customer? – Entertainment.

4. What are the important buying criteria? – Price, ambience, placement, quality service,
premium positioning, status symbol.

5. What risks does the customer perceives – risk of being overcharged, risk of being in
an emergency like fire at the theatre

HOW?
1. How does customer buy the product? – Online / Tele booking / In person

2. How long does the buying process take? – Simple and prompt

3. How do the various marketing mix elements influence the customer at each stage of
buying? – (Explained later in the report)

4. How does product fit in to their lifestyle? – Entertainment product for the premium.

5. How much would they be willing to spend? – PVR had started with tickets being
priced at Rs 125 with special counters available for tickets worth Rs 7. Even when all
tickets are now priced at Rs 145, there is no change in the number of customers that
PVR receives, which means that people are willing to pay.

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6. How much do they buy in one transaction? – Almost always more than 1 ticket.
Depends upon the person, movie playing.

TARGETING:

PVR being the first of its kind has always been a market leader and therefore its offering to
the customer is Innovative.

PVR has premium pricing and they target mainly SEC A and SEC B. PVR has brought to
its customers the experience of Luxury Cinema. PVR uses the concentrated method as they
have targeted a much-focused audience out of the entire masses.

PVR witnessed tremendous success Europa Lounge in Delhi. Precinema 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 with32 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

PVR Priya of PVR’s chain use Differentiation method for pricing. It practices different
price slabs for different target audience. For instance, they have tickets ranging from Rs 45
(for the youth) to Rs 140 (for the upper-class i.e. SEC A).

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POSITIONING:

PVR had, and still has a very well-planned market position. Its premium positioning affects
the customers perceptual positioning. Therefore, they decided on their marketing ANALYSIS
and pricing, keeping the target market in mind. In case of PVR, 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 PVR comes across as a superior brand in terms of cinema viewing as well as
the experience. Its positioning is evident in its mission statement also which says

“A commitment to deliver the best quality cinema viewing Everywhere, Every time.”

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❖ SWOT ANALYSIS OF PVR CINEMAS:

❖ STRENGHTS
• First mover advantage in the multiplex business in India
• Updated technology
• Premium positioning
• Plays Hindi, English, Regional & foreign movies
• Locational strength
• Ambience
• Started the concept of ‘a complete movie going experience’
• Market leader
• Very strong brand equity
• TOM recall
• ‘Original’ multiplex
• Blend of retail & entertainment.

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❖ WEAKNESSES
• High cost perceptions
• T.A very specific (not mass service)
• Disjointed images for all PVR properties
• Customer retention
• Parking problems

❖ OPPORTUNITIES
• First mover advantage
• Growing family spending on entertainment
• Large film industry – over 200 Hindi films every year
• PVR loyalists

❖ THREATS
• Competition blooming large
• Government’s interference
• Entertainment Tax
• Other Multiplexes as competition
• Other ways of entertainment
• Accused of increased crime rate
• Piracy No control over surroundings e.g. West Delhi
• Movies becoming bigger than the brand

❖ THREAT OF COMPETITORS

PVR Cinema 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 Porto 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.

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There are currently seven major competitors in the film exhibition industry Cinemas; Inox
Leisure Limited; Adlibs Films Limited; Srinagar Cinemas Limited; E City Entertainment;
Wave Cinemas; and DT Cinemas. The tables below show the number of screens operated by
each of those companies and the number of cinemas operated by each of those companies.
COMPANY No. Of No. of screens No. Of seats

Properties

PVR 7 34 7,333

Inox Leisure 5 25 7,344

Adlibs Films 4 14 5,666

Srinagar Cinema 3 14 4,588

Wave Cinema 3 13 4,380

E City Entertainment 3 14 3,952

Total 25 114 33,264

% Of all India 34% 41% 37%

Multiplexes

Major Competitors:

• DT CINEMAS
The DLF group, one of the largest real estate co.’s with turnover of Rs.1000 crores. DT
cinemas are set with its first multiplex at the DLF city centre in Gurgaon started on 7 mar
2016Spread over 3 lac square feet on mg road, city centre I Gurgaon’s first multiplex,
covering 48000 sq. ft, hosts 3 screens and can seat up to 1100 people Has imported state of art
projection systems in the world Offers telephone, net and SMS booking home delivery facility
2 Gurgaon, Delhi and other regions .DTC cinemas has also tied up with Wow, a telemarketing
outfit for phone bookings and almost5 per cent of their total bookings come through the phone

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• SATYAM CINEPLEXES

Satyam Cineplexes is part of the Superior Group. The Superior Group has interests in
Garment, Candles, Handicrafts, Film Distribution and Cineplexes. Satyam complexes with its
state-of-the-art cinemas has brought to India, for the first time, thein class cinema
entertainment that the world has to offer. With the launch of the Satyam Cineplex in Patel
Nagar and two cineplexes at Jana Place and Nehru Place currently under construction, Satyam
Cineplex is poised to become a leading Multiplex operator in India with a capacity of 5000
seats.

Satyam CEO Devens Chachra: ‘‘We plan to develop the group currently owns 3
prime sites in New Delhi namely Janak Place, Patel Nagar and Nehru Place with many more
prime sites under negotiation. The group has a31plan to add at least 2-3 sites every year on a
rolling programme. By March2017 Satyam will be running 16 screens at 4 sites with a total of
more than national chain of multiplexes. We will develop properties in Mumbai announce in
the next 18-24 months. Bangalore and Hyderabad will be covered in2018. Initially, focus
would be to consolidate in Delhi, Chandigarh and Uttar Pradesh to leverage Satyam’s
distribution edge.’’

❖ THREAT OF SUBSTITUTES

THREAT FROM OTHER SOURCES OF ENTERTAINMENT:

In addition, PVR 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 MP3and 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, PVR 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

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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 company’s revenues and results of
operations. Television is expected to grow at a faster pace than cinema.

• SATYAM CINEPLEXES

Satyam Cineplexes is part of the Superior Group.

The Superior Group has interests in Garment, Candles, Handicrafts, Film


Distribution and Cineplexes. Satyam complexes with its state-of-the-art cinemas has brought
to India, for the first time, the best in class cinema entertainment that the world has to offer.
With the launch of the Satyam Cineplex in Patel Nagar and two cineplexes at Jana Place and
Nehru Place currently under construction, Satyam Cineplex is poised to become a leading
Multiplex operator in India with a capacity of5000 seats.

Satyam CEO DevenChachra: ‘‘We plan to develop the group currently owns 3 prime
sites in New Delhi namely Janak Place, Patel Nagar and Nehru Place with many more prime
sites under negotiation.

• THREAT OF SUBSTITUTES

Threat from other sources of entertainment

In addition, PVR faces competition from other forms of entertainment including, television,
film DVDs, newspapers, magazines, radio, internet 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, PVR cannot be certain that they will not lose some of our

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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 mar 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 company’s revenues and
results of operations. Television is expected to grow at a faster pace than cinema .

• THREAT OF NEW ENTRANTS


Costs of setting up a multiplex in India are coming down:
It can take around Rs 40-50 crores to set up a premium five-screen multiplexing a metro while
the same in a smaller town cost between Rs 10-15 crore. But owners are now realising that if
done right, a stripped-down multiple 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 bringdown 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 law 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.

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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.

❖ SUPPLIER POWER:
The cost of exhibition of a film varies across films and cinemas and if PVR 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 distributor’s share is normally a percentage of ticket receipts (net of
entertainment taxes) and the applicable percentages 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. If PVR 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.
PVR has itself diversified into film distribution and hedged this risk partially.

❖ BUYER POWER:

PVR was the first to open a multiplex in India. It was one of its kind and due to lack of similar
cineplexes around, PVR had an upper edge as far as buyers were concerned. It charged a high
price and positioned itself as a premium service.

Though other multiplexes like Satyam, 3 C’s, DT cinemas, Waves etc. have come up, PVR still
enjoys a strong position. It has further strengthened its premium position by launching luxury
cinema at select locations. ‘Europa ‘and ‘Gold Class’ experience has completed redefined the
movie watching experience.

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➢ 7 Ps OF MARAKETING:

➢ SERVICE PRODUCT/ SERVICE PACKAGE:

A product (in the marketing context) may be tangible, intangible or both. Incise 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 customer’s
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 PVR. The expected
product in PVR’s case would be ambience, hygiene, good service, parking, candy bar etc.
PVR has augmented its product offerings:

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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 is built the auxiliary/peripheral/facilitator. It is important to note
that facilitating3services ate mandatory and if these are left out, the entire service would
collapse. Yet another type called supporting services, don’t facilitate the consumption of core
services but are used to increase the value and thus differentiate from the competition.
Quality Assessment through RATER in case of PVR Focused on developing a procedure for
quantifying customer’s service quality can be measured in following dimensions:

Reliability – Ability to perform promised service dependably and accurately. PVR 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 PVR is a high contact organization, the employees are well trained in
all areas regarding customer interaction and courtesy. PVR 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.

Tangibility – Appearance of physical facilities, equipment, personnel etc PVR 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 PVR Cinemas are always very helpful
and provide the customers with good assistance whenever needed. From the employees

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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 PVR
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 tele booking / online reservation
etc, the delivery of the tickets is made well before the show timing at the customer’s 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.

PVR 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, PVR had, and still has a very well-planned market position. Its premium
positioning affects the customers perceptual positioning. Therefore, they decided on them
marketing ANALYSIS 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.

➢ 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 are the
most significant in channel selection and distribution.

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The issue of location here plays a very important role, as all PVR Cinema Halls are stationed
at good locations in the city, which gathers a large number of footfalls for them every day.
PVRs usually open at an eventful yet untapped location, followed by which (as we saw in
case of Anupam Saket) other retail chains get opened around it as well. Their places are
always well situated and are well linked. PVR 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 tele booking. 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, PVR 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, PVR has managed to procure
and distribute titles in the country.

➢ 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 its pre-experience.
Therefore, it is very important to sell the service in the best possible way. Usually the
objective of promoting a service maybe 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, corporate identity programs have
relevance. 3rdparties like government, unions and interest groups are important, as they are
capable of influencing market access.

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PVR 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 Overinvolved. Apart from that, they usually have contests
pertaining to latest festivals like Valentine’s Day, New Year’s Eve, Oscar Movies Week etc.

PVR also has a host of online promotional contests associated with movies the latest one
relates to the film King Kong. They are also in collaboration with cellular services like Airtel
have SMS and-win contests and give out free tickets to the winners. Also, PVR attracts lot of
commercial shooting / media coverage via programmes etc which promotes it as a brand in a
big way. Organizing Star Events on Premiers of movies like ‘Kuch Kuch Hota Hai’ helps
PVR relate better with its target audience i.e. the youth. The whole PVR banner and its
exterior environment including movie hoardings, banners etc help promote the concept of
movie viewing as well as PVR as a strong and successful brand.
.
➢ PEOPLE:

EMPLOYEES, CUSTOMERS and OTHER CUSTOMERS

Service must be fully developed and internally accepted before its launched.

PVR 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.

• Gives 10 national holidays to employees

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• Makes all employees train at different levels from time to time

• Teaches employees to be helpful, polite, courteous to all patrons andro-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 PVR 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 is evaluated.
.
• Special well-kept rooms for the employees

• Lastly, it is made sure that all employees represent PVR in the Bestway possible and sell it
as a strong and well-established brand. All employees are given full details on what they are
representing and informed all about PVR to make them a part of the family.

• On the occasion of Children's Day 2018, PVR created a remembrance for children from
PVR's Housekeeping Attendants, Projectionists, electricians, with the movie IQBAL. The
children from the NGO "Kurumba Foundation" also were an intrinsic part of the
event, invited specially by PVR, to celebrate children's day.

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➢ 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 tangibles the service. Therefore,
it is essential to manage physical evidence.

Atmosphere – helps to shape opinions. The building, layout, colours of interiors, tickets,
labels, logo of the organisation etc help to formulate a good unified corporate image /
identity.

➢ 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 Rs60 Crores in 2002-03, and with the growth envisaged, the turnover in the
next 3 years is expected to be over Rs 250 Crores. PVR was the first to install surround sound
and Dolby in Delhi. Gurgaon 7 screen megaplex is equipped with the latest THX approved
Soundsystem 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

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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.

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CHAPTER -4

DATA ANALYSIS AND INTERPRETATION

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❖ DATA ANALYSIS AND INTERPRETATION:

1. AGE:

Age

36% 18-22
7% 22-32
34-40
57%

• Analysis of the data based on Age

Number of Respondents Percentage %

18-22 36 36%

22-32 57 57%

32-40 07 07%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 36% of the respondents belongs
to18-22 age group and 57% of the respondents belongs to 22-32 age group and 07% belons to

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32-40 age group. So, from this graph we can conclude that, the majority of the respondents
were belonging to 22-32 age group.

2. SEX:

Sex

0%

34%
Male
Female
66%

• Analysis of the data based on sex

Sources: Primary Data


Number of Respondents Percentage %

Male 66 66%

Female 34 34%

TOTAL 100 100

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 66% of the respondents are Male
and 34% of the respondents are Female. So, from this graph we can conclude that, the majority
of the respondents were belonging to Male groups.

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• Analysis of the data based on education and qualification:


Number of Respondents Percentage %

No formal education 01 01%

Higher secondary 08 08%

Graduation 49 49%

Post-graduation 39 39%

Doctorate 00 00%

Other 03 03%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 1% belongs to no formal education
group, 8% belongs to higher secondary group and 49% belongs to graduation and 39% belongs
to post graduation group and only 3% of respondents belong to other group. So, from this graph
we can conclude that, the majority of the respondents were belonging to graduation groups.

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• Analysis of the data based on occupations:


Number of Respondents Percentage %

Students 51 51%

Professionals 29 29%

Business 18 18%

Retired 00 00%

Home maker 02 02%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 51% belongs to student group, 29%
belongs to higher professionals’ group and 18% belongs business and 02% belongs to home
maker group and only no one under the retired group. So, from this graph we can conclude that,
the majority of the respondents were belonging to students’ groups.

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• Analysis of the data based on how respondents come to know about PVR cinemas

Number of Respondents Percentage %

By friends 78 78%

By family 09 09%

By advertisement 11 11%

By other 02 02%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents78% come to know about PVR
cinemas by their friends’ group, 09%come to know about PVR cinemas by their family and
11% by advertisement and 02% by other sources. So, from this graph we can conclude that, the
majority of the respondents come to know about PVR cinemas by their friends’ group.

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• Analysis of the data based on how many respondents like PVR cinemas

Number of Respondents Percentage %

Yes 96 96%

No 04 04%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 96% of the respondents do like the
PVR cinemas and only04% of the respondent’s dislike PVR cinemas So, from this graph we
can conclude that, the majority of the respondents like the PVR cinemas.

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• Analysis of the data based on how often respondents visit PVR cinemas

Number of Respondents Percentage %

Weekly 15 15%

Monthly 18 18%

On holidays 44 44%

Rarely once 23 23%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 15% respondents visit PVR cinemas
weekly, and 18%respondents visit PVR cinemas monthly, and 44% respondents visit on
holiday’s and 23% respondents visit rarely. So, from this graph we can conclude that, the
majority of the respondents visit PVR cinemas on holidays.

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• Analysis of the data based on how does respondents book the movie tickets

Number of Respondents Percentage %

Offline 71 71%

Online 29 29%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 71% of the respondents book the
movie tickets offline and29% of the respondent’s book the movie tickets online So, from this
graph we can conclude that, the majority of the respondents book the movie tickets offline.

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• Analysis of the data based on service provided in PVR cinemas

Number of Respondents Percentage %

Good 44 44%

Very good 22 22%

Excellent 21 21%

Nice 13 13%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents44% respondents said the service
provided in PVR Cinema is good, and 22%respondents said the service provided in PVR
Cinema is very good, and 21% respondents said the services are excellent and 13% respondents
said the service provided in PVR Cinema is nice. So, from this graph we can conclude that, the
majority of the respondents said the service provided in PVR Cinema is good.

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• Analysis of the data based on how many respondents satisfied with service provided
by PVR cinemas

Number of Respondents Percentage %

Yes 99 99%

No 01 01%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 99% of the respondents are
satisfied with service provided by PVR cinemas and only 01% of the respondents are not
satisfied with service provided by PVR cinemas So, from this graph we can conclude that, the
majority of the respondents are satisfied with service provided by PVR cinema.

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• Analysis of the data based on screen and sound quality in PVR cinemas

Number of Respondents Percentage %

Yes 100 100%

No 00 00%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 100% of the respondents are
happy about the screen and sound quality in PVR cinemas and no respondent is unhappy
about screen and sound quality So, from this graph we can conclude that, the majority of the
respondents are happy about the screen and sound quality.

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• Analysis of the data based on ticket price of PVR cinemas

Number of Respondents Percentage %

Yes 78 78%

No 22 22%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 78% of the respondents are happy
about the ticket price in PVR cinemas and 22% respondent is unhappy about the ticket price
in PVR cinema So, from this graph we can conclude that, the majority of the respondents are
happy about the ticket price in PVR cinemas.

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• Analysis of the data based on ventilation and seating arrangement in PVR cinemas

Number of Respondents Percentage %

Yes 98 98%

No 02 02%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 98% of the respondents are happy
about the ventilation and seating arrangement in PVR cinemas and 02% respondent are
unhappy about the ventilation and seating arrangement in PVR cinemas So, from this graph
we can conclude that, the majority of the respondents are happy about the ventilation and
seating arrangement in PVR cinemas.

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• Analysis of the data based on food and beverage provided by PVR cinemas

Number of Respondents Percentage %

Yes 79 79%

No 21 21%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 79% of the respondents do like the
food and beverage provided by PVR cinemas and 21% of the respondent’s dislike PVR cinemas
So, from this graph we can conclude that, the majority of the respondents like the food and
beverage provided by PVR cinemas.

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• Analysis of the data based on how respondents prepare to watch movie in PVR
cinemas

Number of Respondents Percentage %

Alone 05 05%

With friends 80 80%

With family 15 15%

With any other person 00 00%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents05% respondents prepare to watch
movies alone, and 80%respondents prepare to watch movie with friends, and 15% respondents
prepare to watch movie with family. So, from this graph we can conclude that, the majority of
the respondents prepare to watch movie with friends in PVR cinemas.

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• Analysis of the data based on which movies respondents prepare to watch in PVR
cinemas.

Number of Respondents Percentage %

Horror 15 15%

Comedy 14 14%

Action 09 09%

Biography 02 02%

Thriller 13 13%

Historical 08 08%

All the above 39 39%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 15% respondents prepare to watch
horror movies, and 14%respondents prepare to watch comedy movie, and 09% respondents
prepare to watch action movie, and 2%respondents prepare to watch biography movie, and
13% respondents prepare to watch thriller movie, and 08% respondents prepare to watch
historical movie, and 39% respondents prepare to watch all the above movies.

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• Analysis of the data based on what respondents like the most in PVR cinema
Number of Respondents Percentage %

Seats 14 14%

Screen 21 21%

Sound 31 31%

Atmosphere 28 28%

Other 06 06%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents14% respondents do like the seats,
and 21% respondents like the screen, and 31% respondents like the sound, and 28% respondents
like the atmosphere, and only 02% respondents like the other things in PVR cinemas. So, from
this graph we can conclude that, the majority of the respondents do like the sound in PVR
cinemas.

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• Analysis of the data based on how many respondents feel safe in PVR cinemas

Number of Respondents Percentage %

Yes 97 97%

No 03 03%

Total 100 100%

Sources: Primary Data

INTERPRETATION: -

From the above graph it reveals that from 100 respondents 97% of the respondents feel safe in
PVR cinemas while watching movies. And only 03% feel unsafe in PVR cinemas while
watching movies. So, from this graph we can conclude that, the majority of the respondents
feel safe in watching movies in PVR cinemas.

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CHAPTER-5

FINDING, SUGGESTIONS, CONCLUSION,

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❖ FINDINGS:

• THE IMPORTANT FINDINGS OF THE PRESENT STUDY ARE LISTED HERE,

1. It was revealed that the majority of the respondents were belonging to 22-32 age group.
2. It was found that 66% of the respondents are Male and 34% of the respondents are
Female.
3. It was depicted that 49% belongs to graduation and 39% belongs to post graduation.
4. It was found that from 100 respondents 51% belongs to student group, the majority of
the respondents were belonging to students’ groups.
5. It was found that 100 respondents 78% come to know about PVR cinemas by their
friends’ group, so friends play major role in watching movies in PVR.
6. It was depicted from 100 respondents 96% of the respondents do like the PVR
cinemas and only 04% of the respondent’s dislike PVR cinemas.
7. It was found that from 100 respondents 15% respondents visit PVR cinemas weekly,
and 18% respondents visit PVR cinemas monthly, and 44% respondents visit on
holiday’s and 23% respondents visit rarely.
8. It was revealed that from 100 respondents 71% of the respondents book the movie
tickets offline.
9. It was found that the majority of the respondents said the service provided in PVR
Cinema is good.
10. It was revealed that from 100 respondents 99% of the respondents are satisfied with
service provided by PVR cinemas and only 01% of the respondents are not satisfied
with service provided by PVR cinemas.
11. It was found that 79% of the respondents do like the food and beverage provided by
PVR cinemas.
12. It was revealed that 100% of the respondents are happy about the screen and sound
quality in PVR cinemas.
13. It was found that 39% respondents prepare to watch all type of movies, like action,
horror, comedy, thriller, etc.

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• SUGGESTIONS:

1. I would like to suggest PVR Cinemas has to concentrate on all the age groups.
2. I would like to suggest PVR Cinemas should give more safety and preference to
female customers.
3. I would like to suggest PVR Cinemas should concentrate on attracting retired
people and business professionals in order to earn more reputation.
4. I would like to suggest If possible PVR Cinemas can make family sitting
arrangement separately so they feel more secure and safe.
5. I would like to suggest PVR Cinema should increase its advertisement in order to
cover all the demographic and Geographic aspects.
6. I would like to suggest PVR Cinema should give more offers to its customers to
attract them.
7. I would like to suggest PVR Cinemas should give more concentration towards
ticketing and its related offers.
8. I would like to suggest PVR should increase its service quality to gain more
customer attention.
9. I would like to suggest PVR can give good quality of food and beverage as
customers feel hungry at the time of intervals.
10. I would like to suggest PVR should give parking place to park the vehicles
customers.

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❖ CONCLUSION:

This study examined the customer satisfaction in PVR cinemas and found a significant
influence of the same. The study immensely helped to understand the quality of different
services offered by PVR Cinemas. And the study helped to understand the customer
satisfaction towards PVR cinemas by conducting the survey online in questionnaire form. It
provided insights to the marketers for focusing on constructs of service quality in the
organization. A proper understanding of requirement of customers will help the marketer to
formulate a strategy to maintain a long-lasting relationship with the customers which will
helps to retain the existing customers and reduce the customer churn and hence attain
customer loyalty.

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• QUESTIONNAIRE:

1. How did you come to know about PVR CINEMAS?


• By friends
• By family
• By advertisement
• By others

2. Do you like PVR cinemas?


• Yes
• No

3. How often you visit PVR CINEMAS?


• Weekly
• Monthly
• On holidays
• Rarely once

4. How do you book the ticket for movies in PVR CINEMAS?


• Online
• Offline

5. How were the services provided by PVR CINEMAS?


• Good
• Very good
• Excellent
• Nice

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6. Are you satisfied with the service provided by PVR CINEMAS?


• Yes
• No

7. Are you happy about the screen and sound quality in PVR CINEMAS?
• Yes
• No

8. Are you comfortable with the ticket price of PVR CINEMAS?


• Yes
• No

9. Do u like the ventilation and seating arrangement in PVR CINEMAS?


• Yes
• No

10. Do you like the food and beverage provided at intervals in PVR CINEMAS?
• Yes
• No

11. Do you feel safe in PVR CINEMAS while watching movies?


• Yes
• No

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12. How do you prepare to watch movies in PVR CINEMAS?


• Alone
• With friends
• With family
• With any other person

13. which type of movies you prepare to watch in PVR CINEMAS?


• Horror
• Comedy
• Action
• Biography
• Thriller
• Historical
• All the above

14. what did you like the most in PVR CINEMAS?


• Seats
• Screen
• Sound
• Atmosphere
• Other

15. Any suggestions for PVR CINEMAS?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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BIBLOGRAPHY:

➢ WEBSITES:
• Google
• www.pvr.uk.com
• Www.pvrcinemas.com
• www.pvrea.coop

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