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Table of Contents
1 2 3 4 5 6 7 8 9 10 Entertainment Industry Multiplex Services offered by a Typical Multiplex Players of Indian Multiplex Industry Marketing Mix of Multiplexes Scope of Multiplex Risks and Concerns SWOT Analysis Why is there a Multiplex Boom? Why are Multiplexes preferred over single screens for movie viewers? 11 12 13 14 15 16 Segmentation and Target Group Marketing Media Channels for Communication Marketing Strategies Are the single screen theatres in India going to die soon? Strike Issue of Multiplexes References and Sources 30 31 32 34 35 38
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Indian Multiplex Industry
We, the students of TYBMS of the GN Khalsa College express our heartfelt gratitude for this fantastic opportunity given to us by Profesorr Shobha Mathews. This project has enriched our knowledge and experience. It will be our Endeavour to do such better projects in the near future. The mistakes which we might have done will be definitely corrected and we are most obliged to you for giving us this opportunity to prove our skills. Thank you Ma’am.
Indian Multiplex Industry
Name Gurminder Singh Raja Singh Yashovardhan Bichu Kanika Datta Gurleen Kaur Sahil Mhadkar Roll # 05 08 18 22 38 39
Indian Film Industry is a part and parcel of entertainment industry.Indian Multiplex Industry Entertainment Industry One of the fastest growing sectors of the economy is entertainment industry. It is most popular and affordable mass entertainment media in India. to manage its distribution. careers. Singers. exhibition. Publication – Authors. This can be explained properly with the bifurcation below A Look at the Traditional live entertainment industry: Theater . Journalists. The quality of life improves when the basic requirement of life are supplemented with entertainment in some form or other. so it is very critical to manage this industry. Publishers and Printers A Look at the 20th century mass media industry: Film studios. etc. the entertainment industry is totally different from the past. Discothèques et al. Almost 1000 movies are produced every year. Record industry.Play writers. Entertainment today dictates our lives. Cinemas. education. One seeks knowledge to improve the quality of life. Musicians and Orchestras. 4 . Theme parks. earning money. Broadcasting. Considering the current scenario. as the modes of media used for providing services were different before the 20th century when compared with the present media. Actors and Theater directors Music – Composers. all lead to the quest for higher and sophisticated entertainment. Songwriters.
Multiplex are one of the means of lifestyle that offer to viewers the choice of watching a movie in a five star or three star environment. The box office collections Rent from display system Food & beverage Product lunch rentals Promotions by companies to promote consumer goods. however. Typically.movie. The revenue streams. The Multiplex model is based on concept of umbrella entertainment built around a primary anchor. entertain. enjoying and watching a wide range of movies under a common platform. Secondly it is a type of technology which is referred as Multiplexing with the help of this technology the same movie can be shown simultaneously in all the screens of the Multiplex with minor difference of 3 seconds between their screenings. Firstly it is a medium that often its consumers full entertainment including the pleasure of shopping. Presently there are approximately 13000 screens in India with equal number of space available for the same amount of theatres to be opened. and dine and watch a Varity of movies under a common roof.Indian Multiplex Industry Multiplex Multiplex is a medium that offers a person composite entertainment comprising of a one stop destination to shop. The word multiplex has two meanings. the possible income generating channels in a Multiplex can include. do not necessarily centre on a single anchor. 5 . dining.
reduction in entertainment tax and so on are provided by the govt. Reluctance of financial institutions to fund non asset based ventures Lack of expertise to handle latest equipments. Limited studio space and lack of security lending to an expensive foreign locales resulting in drain of resources.Indian Multiplex Industry Multiplexes in India are given benefits for their development as they form a major part of the entertainment industry. Lack of resources in terms of finance. Benefits such as overall tax concession. Piracy leading to massive losses for the industry. 6 . This made the industry fragmented and disorganized. The Problems faced by the Multiplex Industry Indiscipline among filmmakers. human etc. Lack of corporatized management.
internet booking. fun house etc. special events such as Valentines Day.Indian Multiplex Industry Services offered by a Typical Multiplex 4 Screens: A normal multiplex has 4 screens with 8-10 movies running as per schedules and thus giving the audience variety of choices to choose the desired movie. Thus. Imax Adlabs has Sarson Da Saag. one doesn’t has to spend a lot of time in booking a ticket as there are various options available. home delivery. Restaurants: They also form a part and parcel of the multiplex and satisfy the consumers with wide range of food and beverages. Cafeteria: The multiplexes also have cafeteria in their vicinity which gives the consumers limited options to satisfy their hunger and thirst as quickly as possible during the screening of the movies. dinning etc. Entertainment: Entertainment facilities are available for the children within the multiplex arena in the form of games arcade. tele-booking and current booking. There are lots of options available for booking the tickets such as advance booking. Spice of Italy and various other restaurants under its roof. from enjoying to shopping. Ticketing options: The ticketing options in multiplexes are very systematic as compared to a normal single screen theatre. Friendship Day and many more are organized which entertain the teenagers. Also. Malls: The invent of malls within the multiplex and vice versa has made shopping easier as everything can be done under a common roof. 7 .
BIG CINEMAS Integrated Play on the Media & Entertainment Sector Exhibition Segment . INOX LEISURE Consistent performer Impressive capacity ramp-up over the last 4 yrs: Top 25 cites .Indian Multiplex Industry Players of Indian Multiplex Industry 1.Leader controlling 70% of market Film Production & Distribution 8 .compelling growth stories E-Tax exemptions 3. PVR CINEMAS Strong operational performance Aggressive expansion plans Foray into co-production Leading Multiplex operator Entertainment tax burden to decline 2.The largest player Expansion through acquisitions Future Plans Film Processing .
Indian Multiplex Industry 4. Predominant presence in the Western region The largest exhibitor in the Mumbai territory with a 35% share of the multiplex screens in Mumbai. and a loyalty program. CINEMAX Cinemax India (Cinemax) is one of the smallest multiplex exhibitors 56 screens across 19 properties Majority of the screens concentrated in the Mumbai territory. 9 .Fun Cinemas caters to the premium segment and promises facilities such as service-on-seats. 250 Talkie Town screens and 1. online booking. Currently. FUN CINEMAS Fun Cinemas is a cinema chain in India based in Mumbai owned by the Essel Group and promoted by E-City Ventures.000 digital screens by the year 2011. for all game-based leisure options. Cinemax is now focused on expanding its presence across the rest of India and is seeking to aggressively add capacity across other regions 5. The company plans to have 300 Fun Cinemas screens. the company has around 140 cinema screens: 45 ‘premium’ screens under the Fun Cinemas brand and 90 digital screens. The company operates with the brand name Fun Cinemas (the premium brand) and Talkie Town (the value brand) for all theatrical presence and cinema activity and Fun Gaming.
which are: The 7ps actually differ a bit from company to company. Marketing mix decisions must be made for influencing the trading channels as well as the final customers. Multiplexes forming a part of service industry have their own marketing mix. The analysis done is on the basis of general considerations 10 .Indian Multiplex Industry Marketing Mix of Multiplexes Marketing Mix is the set of marketing tools that the organization uses to pursue its marketing objectives in target market.
internet booking. Also. Cross word: Now day’s multiplexes have book libraries and cross words for book lovers. Entertainment: Entertainment facilities are available for the children within the multiplex arena in the form of games arcade. home delivery. Luxury Recliner seats: Multiplexes are now equipped with elegant and comfortable recliner seats for a luxury comfort taking the movie experience to a new level 11 . Food Courts and Restaurants: Now day’s multiplexes provide you with a variety of food in their food courts and multiplexes also have restaurants so that one can have a dinning cum movie experience. Air conditioner: Multiplexes are fully air conditioned which add to the luxury.Indian Multiplex Industry Product Services offered are the elements that make up the total service package and include both tangible and intangible components. A typical product package offered by a multiplex includes the following: Ticketing options: The ticketing options in multiplexes are very systematic. Spice of Italy and various other restaurants under its roof. Parking Facility: Multiplexes now days have huge parking area with proper parking facilities for the cinema lovers. Friendship Day and many more are organized which entertain the teenagers. special events such as Valentine’s Day. fun house etc. IMAX BIG CINEMAS has Sarson Da Saag. tele booking and current booking. There are lots of options available for booking the tickets such as advance booking.
Augmented (in addition to the expected benefit) Potential (beyond the usual. Cleanliness in the multiplex. helpful employees. one expects great ambience. comfortable seating arrangements.Indian Multiplex Industry Below the table are different product levels existing in multiplex and the expectations made by the consumers. reward system. 12 . Incentives provided by the multiplex. sophisticated interiors. pleasant surprise) Apart from the good quality of viewing. Product level Generic (the basic benefit) Expectations made by the consumer Viewing space in the multiplex. view the movie with the latest technology. punctuality Expected (the expected benefit) in start timings of the show.
100 whereas the rates in multiplexes are Rs. To cope up with the prices of the single screen movie theatres. The ticket prices are quite less for the morning shows. Thus. Nowadays multiplexes have priced Rs 50 . 60 for its early morning shows that are screened regularly. Competition based pricing – In this method the price is determined on the basis of competitor’s price. The price of multiplex tickets varies according to the show timings and movies. Thus. It determines cost of service delivery as well as predetermined rate of profit in order to arrive at a price. Indian multiplex follow 2 methods of pricing: Cost based pricing – It is also referred as cost plus pricing. nowadays multiplexes have priced Rs.Rs60 for its early morning shows that are screened regularly. Now the major competitors are single screen movie theatres and other multiplexes. It is necessary to analyze all cost accurately and differentiate between fixed and variable costs in order to use the costs as a basis for pricing decisions.Indian Multiplex Industry Price The art of effective pricing is to establish a price level that is low to represent good level to the buyers but yet it should be high enough to allow the service provider to make his profit. For eg. the price level of marketing mix is considered to be most critical component both from the economic as well the social point of view. 13 . 250. there is a very high variation in prices in the multiplexes when compared to the single screen theatres. The rates for single screen theatres are Rs. The prices of tickets in multiplexes are quite high because of the ambience. comfort and the services provided by the multiplexes.
The Big Cinemas ticket pricing also varies from place to place as the more developed places have greater facilities thus the prices are also high. 14 .Indian Multiplex Industry The PVR rates begin at Rs. The Big Cinemas ticket pricing is a combination of the price of the ticket and the tax added to it. But though the Big Cinemas ticket price is high still people prefer it. For the people price is not important but comfort is more important. The online mod helps in saving a lot of time.225 on weekends. The Big Cinemas tickets usually vary from cities to cities and they are higher for good cities like Delhi and Mumbai. Its new luxury multiplex has tickets priced at Rs. The Big Cinemas ticket pricing also depends upon the services offered and the amount of people who come here to watch the movie.90 and go up to Rs. Therefore one can see that the Big Cinemas tickets are more than the others just because of the comfort and the facilities that they offer. Therefore you will come across some minor differences between the Big Cinemas ticket price. The Big Cinemas tickets purchasing can be done through the online mode also.750. Therefore the Big Cinemas ticket pricing is usually less during the weekdays but certainly mo suing the Sunday and the holidays. with fully reclining seats and personalized menu to boot.
Indian Multiplex Industry Promotion One of the key and the most important elements to marketing mix is promotion which is used for the purpose of encouraging sales and also helps to convey the customer the position of the services offered by the multiplexes. Out of the amount spent by the organizations for advertising 2% of it comes in the use for cinemas as a part of promotions. But now their main objective has been shifted to boost up sales with the help of many promotional activities. many companies and organizations market their own product and services within the multiplex as they are able to target their own set of target customers. Awareness: The multiplex takes full care that its objective of. 15 . postage and web. Also. many of these organizations give advertisements to be screened on the 4-screens. one of the important reasons is that it is located in the centre of the city which makes it easily accessible from all the sides. The most important strategies are: 1. slides and signage. Every multiplex has its own set of objectives when it follows the promotional strategies. These tools are used to create favorable response from the target audience. Also promotion helps to create awareness among the customer. The biggest advantage to the multiplex is that it has a very wider area of scope to carry out its promotional as well as day-to-day activities. films. direct marketing. Due to large space. sales promotion. Also. ‘making the multiplex familiar to one and all’ is accomplished. news papers. The tools used by multiplex industry for the marketing of services are advertising.
16 . Loop Mobile subscribers can now watch a new movie every Friday with Loop Mobile ‘First Day. its location. Other Promotional Services 1. Their services include viewing of movies. First Show’. Loop Mobile subscribers located anywhere in the city will be at convenience. Through this tie-up with all 13 Cinemax theatres and Sterling Cinema in Mumbai. The brand visibility is done by making the people aware about the logo of multiplex. 50. 4. Induce Sales: Selling the services is one of the key issues of a multiplex. accessibility and various such factors. The association allows Loop Mobile subscribers to avail one free movie ticket on the purchase of one movie ticket. any show timing and every Friday. Loop Mobile Offer: Buy 1 movie ticket and get 1 Free for any movie. any show on Friday Loop Mobile has tied up with Cinemax multiplex chain and Sterling Cinema in a bid to captivate its subscribers with the magic of Movies every Friday. One can also purchase a combo pack of ‘regular Popcorn & Coke’ at just Rs.Indian Multiplex Industry 2. entertainment arena and so on. 3. Induce first time trial: This can be done for those individuals or those groups of people who are unaware about such concept of the multiplex and the benefits derived from it. cafeterias. The increase in sale is possible only due to the promotional activities. Brand Visibility: Branding should be done in such a way that the people have good recall value for it which helps to increase sales. This is for any movie.
Sterling and Orama 4D. Premier Gold. Cinemax and single-screen theatres like Roxy.Indian Multiplex Industry 2. one of India’s leading cellular service providers has introduced Vodafone Tuesdays wherein Vodafone customers can enjoy the exclusive scheme of getting two movie tickets for the price of one. 17 . The Vodafone Tuesdays offer is available at select movie theatres across Fame. Premier. The coupons for a forthcoming Tuesday can be downloaded by any Vodafone subscriber on any day of the week. Vodafone launches Vodafone Tuesdays (Buy one movie ticket and get one free on Tuesdays) Vodafone.
Essential evidence are dominant features like the building area of the multiplex. signboards. whereas the peripherals evidence are less dominant features such as the admission cards for its members (staff). its parking area. the customers rely on tangible cues. Thus physical evidence of multiplex can be summarized into: Ambience factors Air Conditioning Excellent ventilation Clean floors. Physical evidence thus aims at enhancing the customer’s perception of the services offered. etc. Both these elements should be well coordinated in order to understand the potential impact and create the desired image of excellence in services. Essential evidence and peripheral evidence are the two elements of physical facilities. It also influences the employee’s performance at the time of service delivery process. wash rooms and surrounding Design factors Uniform Appearance Extensive parking lot Spacious interiors Social Factors Well dressed employees Courteous Family atmosphere 18 .Indian Multiplex Industry Physical Evidence In order to judge the quality of services.
facilities available and other place related factors. Thirdly. CINEMAX and BIG CINEMAS are the best examples of an organization that has multiplex outlets situated at various places of the city and provides movie viewing services with latest technology. On the contrary if the Multiplex is located somewhere in the prime location or near railway stations then people can easily reach there and hence they prefer these multiplexes. there has to be abundant place for parking of vehicles. They can be offered from either single outlets or multiple outlets. FAME. The place decision of the multiplex depends on the location and the distribution channel. accessibility from various places. Generally there is a pay and park system in the cinema halls but as a marketing strategy they can stop charging for parking so that more people prefer the place. this is because people are basically concerned with accessibility of the place. 19 . in case the place is out of the city then people won’t prefer going there because of the time and cost involved in reaching the movie theatre. the place selected should be safe and clean viz.Indian Multiplex Industry Place Place includes the surrounding. the locality and the crowd surrounding the place has to be decent and safe. this is a must because all the people come with their families and friends. The Place factor plays a crucial role in case of multiplexes. the actual location of the multiplex. many people have their personal cars/bikes hence parking space needs to be there in any cinema hall. The main problem for creation of channels for services is that they cannot be manufactured in one place and distributed all over. Eg: Sion Cinemax Secondly.
It is the people. in case there is an emergency like health problems/fire problems then they should help the customers in whatever way possible. the human resource is the most important factor of any company. The people’s way of dealing with its customers helps them to create a better image for the organization (multiplex) and this in turn help in creating good image in the minds of the people for the multiplex which in turn increases the profitability of the multiplex. in order to deliver quality service to the customer. People i. In case any female needs any kind of help then there must be women attendants present in the premises. soft spoken. the employees very often represent the company and are responsible for the image created in the mind of their customers. for that matter any other service as well. The working staff in a multiplex must be decent.Indian Multiplex Industry People In case of multiplexes.e. The service provider must train and equip the frontline staff with the capabilities to perform the service. cooperative and helpful. The security also needs to be strict and tight so that there is a sense of safety and security in the minds of the people. be it service sector/ manufacturing sector. who play an important role in overall progress and development of the organization. 20 . People have a direct link with the profits of the organization and thus the management strives hard in developing “Customer Conscious Employees”. This causes the service firm to integrate appropriate human resource practices into its strategies.
Indian Multiplex Industry Process The process of a service refers to how a service is provided and delivered to the customer. Every multiplex has a well defined and systematic process designed by their IT team. home delivery. Administration Department and the cleaning staff for proper coordination. If not done precisely then there can be incidents where two different persons can get the same seats for the same movie show which will create further issues. in case of booking tickets. There has to be a systematic and elaborate process in all the departments like the Security Department. tele booking and current booking. To design the process of a service various factors are involved such as Location facility Design and layout for effective workflow Procedures and job definitions for service providers Extent of customer involvement Measures to ensure service quality Equipment selection Adequate service capability. The process should be designed according to the ease of use and understanding of the staff that will be operating the system. So there must be proper record maintained of all these bookings so that there is no confusion. 21 . internet booking. there are a lot of options which one has like advance booking. For instance.
The deteriorating quality of these cinemas dissuaded viewers and they started using alternative viewing options. single screens. Most of the multiplexes in India are anchor tenants in the large format malls making a favorite destination for the youngsters as well as the families. India currently has 11500 existing screens. They. Favorable demographics in a cinema-crazy nation. are driving growth of multiplexes in India. Food & beverages is the major source of revenue for the multiplexes. 95% are standalone. and quality locations such as malls. Other than the sale of the movies tickets. due to unavailability of organized finance. along with the multiplexes have completely transformed the experience of the viewers. The digital revolution has helped the Media and Entertainment industry to go digital. multiplexes are poised for high growth in India. Space economies and the optimal utilization of the capacities are the major advantages or benefits that the multiplexes enjoy over single screen theatres. Multiplexes captured the market as complete family entertainment centers.Indian Multiplex Industry Scope of Multiplex The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes. which are expanding rapidly in major metropolitan cities as well as second and third tier cities. 22 . tax exemptions. These single screen cinemas are poorly maintained as the owners find it difficult to upgrade and renovate their facilities. There are more than 100 digital cinemas in India today. With an increase in the incomes of the people and increasing expenditure on the leisure activities.
"Multiplex Cinemas" offer an alternative to tap this potential by providing a quality experience to the viewer as well as economies to the multiplex operator. This gives multiplex operators enough room to grow as the traditional single-screen theatres do not have the financial wherewithal nor do they enjoy tax incentives. There is a need of at least 20. Kannada and others. India’s screen density stands low at 12 screens per million populations. "Films" has been one of the integral components of the Indian entertainment industry contributing nearly 27% of the total revenues of the entertainment industry. Each screen in a multiplex has small seating capacities in the range of 150-300 seats as compared to single screen cinemas which have capacities in the range of 800-1.000. The Indian film industry is one of the most complex and fragmented national film industries in the world comprising of a number of regional film industries like Hindi. 23 . "Multiplexes" are essentially cinemas with 3 or more screens. India's craze for films has not been fully exploited by the "Film Exhibition" industry due to the lack of screen density in the country coupled with the poor quality of screens. They provide a quality viewing experience and are generally located around shopping malls to increase footfalls in these malls. multiplexes have emerged as a trend in urban India.000 screens while the US has 36.000 screens as against the current 11500. Besides. which produces far lesser films than India has 65. television and live entertainment. Tamil.Indian Multiplex Industry Over the last few years. India is under screened.200 seats. With around 11500 active screens. films also contribute to other components of the entertainment industry like music. China. Telugu.
We believe that the levels entertainment tax will come down in the future. it will affect patronage levels negatively pulling down top line growths. they have no control over the supply quality and quantity. Any delay more than this will hurt future growth of multiplexes.The whole footfall growth story depends on rising prosperity in the country leading to higher discretionary consumer spends.Movies compete for customer attention with other forms of entertainment viz.Indian Multiplex Industry Risks and Concerns Slowdown in content supply . Even though state governments have announced tax free windows for these players. DVDs. If the economic environment starts worsening for a prolonged period. An increased acceptability of these avenues will divert footfalls away from multiplexes. TV. cricket.Entertainment tax in India is among the highest in the world leading to a much higher occupancy levels required for break even of multiplexes. any disruption on the supply side will definitely have a negative impact on the multiplex players' growth. 24 . otherwise any increase will be passed on to the consumer to a large extent like it is done at present. Mall delays due to various reasons will hurt expansion plans of the companies. Alternative entertainment avenues . Worsening economic environment .As multiplexes are the consumers of content. festivals etc. Hence. We are building in a 50% delay in mall handovers to the multiplexes in our analysis. uncertainty looms over the viability of multiplexes after the window expires.Supply of quality real estate has been a problem in the past for multiplex players. Uncertainty over entertainment tax . Mall development delays . Multiplexes thrive on rising footfalls which in turn depend on the better supply of films from producers.
Lack of quality content and increasing competition from other entertainment sources like IPL has emerged as a major concern. violation of intellectual property rights and High Real Estate price is a huge barrier to profitability of this sector. Change in the lifestyle and spending patterns of the Indian masses on entertainment. Weaknesses: The Entertainment sector in India is highly fragmented. The increasing interest of the global investors in the sector. Indian film industry is second largest in the world and the largest in terms of the films produced and tickets sold.Indian Multiplex Industry SWOT Analysis Strengths: Entertainment is one of the most booming sectors in India due to its vast customer reach & a large customer base. 25 . Opportunities for expansion in the rural areas (which is still untouched). THREATS: Piracy. Opportunities: The Indian film industry is the largest film industry in the world in terms of number of films produced and tickets sold each year expecting growth will be continue in upcoming years in to producing movies. where the media penetration is low. The lack of efforts for media penetration in lower socio-economic classes.
Some of the other factors involved are given below: Aspirations: There is a huge group of people who are very ambitious and have a status symbol (premium or the top class) or desire to possess it. cafeteria. games corner and so on.000 theatres and there is a plenty of space and resources for an equivalent number of theatres to be started all over. Thus there are two types of combinations found.Indian Multiplex Industry Why is there a Multiplex Boom? In India there are about 20. there is a high growth rate for the multiplexes in the entertainment industry. Thus. these groups of people prefer to have an edge over others (middle and lower class) by viewing movies in a multiplex rather than a single screen theatre as it is a matter of pride and honor for them. Due to the high growth rate of the multiplex industry. various benefits are provided by the government such as overall tax concessions. then multiplexes are the best option as they have everything from shopping stores to restaurants. this concept has changed now because if a person plans to spend his whole day for enjoyment along with his family. 26 . Gradually. reduction in entertainment tax and so on in order to motivate the industry person. Attitudinal Change: Gone are the days when one used to think about saving the money by not going to the theatre along with the family to watch a movie and instead go out for a picnic to enjoy the whole day. Combination of various facilities: The concept of satisfying the consumer under one common roof is growing rapidly allover the world. Thus.
Administration and so on.g. Recently.Indian Multiplex Industry One is a “Mall with a Multiplex”. Food & Beverages. Imax Adlabs is a multiplex having within its games arena. This helps the consumer to enjoy his whole day at one common place instead of planning to go to various places in order to shop. Now. Many of the multiplexes that have huge space such as Imax Adlabs organize many events such as children’s day. E. ‘R Mall has a multiplex ‘R Adlabs’ within itself. a person can shop during the promotional activities carried out by various companies within the multiplex and take advantage of various benefits and offers provided by them. musicians. There are many departments involved in the smooth functioning of the multiplex such as Human Resource.g. to organize such events many people from outside are involved such as decorators. 27 . E. All these departments are employed directly as per the requirements. Fame Adlabs too opened its new multiplex in Malad within the mall named “Inorbit”. child festival and so on. caterers who indirectly gets employed. Marketing. Provides employment facilities even for those who are not involved directly: This is one of the interesting cases found in the multiplexes. Thus. there is also a lot of employment scope for those people who are not involved directly in the multiplex industry. Second is a “Multiplex with shopping Facilities and various Amenities” within its roof. It thus helps in satisfying the consumer with the required amount of amenities and facilities needed by bringing all the required resources under one common roof. dine and have fun with his family members. teacher’s day. Also. The relationship between the multiplexes and the malls is referred as the “Synergy Effect”. cafeteria and other such amenities.
the risk is minimized when the space is let out to various corporate organizations such as Reliance. The multiplex has various partners. Also. Also. Citibank and so on for product launches and various promotional launches. 28 . various company collaborations. These are more screens. Due to this the turnover of audiences as compared to the single screen theatres are relatively very high. Vodafone. HDFC. Risk minimization: Also. people get a huge variety and range of movies to view. when compared to the normal movie theater (Single Screen). roughly 3-5.Indian Multiplex Industry More number of screens: This is one of the most important reasons for the multiplex boom. the movie timings are flexible and thus a customer can view any movie of their choice as per their availability and convenience. and thus they work together to achieve the goals set up by the organization. As there are many screens in the multiplex. the benefit that the multiplex has over the single screen movie theatre is the ‘risk minimization’ factor.
The reason behind this can simply be answered by pointing out the difference between single screen and multiplexes. The road ahead for theatre owners is both exciting and challenging. 72% of the people think that Multiplexes are better options than Single Screen (Cineplex) whereas.Indian Multiplex Industry Why are Multiplexes preferred over single screens for movie viewers? On the basis of our analysis. by offering food courts. (eg . “The service industry is ever changing and you have to change proactively. shopping facilities can offer Add value to money to customers. we had 3.100 million admissions last year and only 12 screens per million. ATM Facility. Single Screen on the other hand doesn’t offer add value to money to the customer’s income. multiplex offer better sitting . Dolby digital sounds and good graphics for viewers Multiplexes. So there is a huge potential for growth. “In India.Entertainment Tax) They just don’t offer movie but also offer so called add-on facilities They offer customer with choice in different movies Talking of the ambience. The mushrooming of multiplexes has thrown up huge competition amongst multiplexes and is giving the stand-alone theatres a run for their money. multiplex owners are still upbeat about their business. However. Single Screens Single Screen doesn’t enjoy such exemptions on part of government Cineplex on the other hand offer only movies and no extra facilities. Multiplexes The multiplexes enjoy rebates and exemptions from the government. only 28% negate the fact. Single screens don’t offer such facilities with no options to the customers Single screens on the other hand don’t offer such facilities to viewers. 29 .
Visit cinema hall frequently (Once in a month) Prefer to watch hindi action. 3.) This group consist of 32% of Mumbai audience (Premium Group) They visit the cinema halls occasionally (Once in 3 month) Prefer to watch Hindi Thriller movies and also Regional movies. According to the research Multiplex owner has conducted. Westerner (Age group is 35 – 55 yr) This group consist of 5% of Mumbaikars residing in western part of the city. Come 10 minute late to movie hall and prefer to watch movie with family and children. It’s done on the basis of Demographic. Groucho (Age grp. They are 1. Psychographic and behavioural differences of the consumers.Indian Multiplex Industry Segmentation and Target Group Segmentation helps marketer to identify Target market clearly and on the basis of that marketer plans strategies and attract the audience. Come late to movies at least by 15 minutes and Prefer to watch with family. Geeks (Age group is of 15 – 24 yrs) This group consist of 27 % of the population from other part of the city. 25 – 44 yr. animation. the come up with three categories signifies different groups of people and their behaviour which plays a very important role in making decisions. Visit cinema hall regularly (Once per week) Prefer to watch English movies as action. war Dubbed English movies either alone or with friends Enters 5 minutes late in the movie hall. 2. 30 .
Mid-day. entertainment area. Every section tries their best to retain the viewer. SMS .Writing and giving any promotion and it take care of any misunderstanding between consumer and multiplex. Hoardings are placed both at populated place and in multiplex. magazines. Tie-ups .Indian Multiplex Industry Marketing Media Channels for Communication Print .Print medias such as Newspaper.This is used to recall customers about the movies being screened at multiplex. Eg.at he time of release of movie. pamphlets. 31 . Bookings also been done on website. Public relation . journals. And then promotional activities. cafe area and dome area and so on.Multiplex has tie-ups only when it has promotional activities to be conducted within its premises.Personal website for multiplex is used by firm to market the movie. new release movies. Leading Radio stations Radio Mirchi. Hoardings . Promotional activities and the new happenings along with new releases information been provide on website. poster etc. Radio City etc Web . Different sections like. reminder to bookers is been done via sms. Bombay Times.The database of numbers is collected from the customers who watch movies. Radio . It works with the company that is promoting and markets both the company’s product as well as officials of multiplex. these medias are used to advertise intensively.Second most used medium. Multiplexes attract customers by various contests on Radio. In-house Branding: This promotional activities been taken in the premises of multiplex.
As stars are called for the premiers of special movies along with outside people. huge & extensive advertising is done for the movies which add to the recall value on the minds of the people. Multiplex also organize celebration of religious festivals as 32 . Fame Adlabs during the release of the movie “Choker Bali” arranged special Bengali dishes relating with the theme of the movie. The café situated within the given arena in multiplex. The concept became a huge success and now a separate section is being for the Bengali dishes. Here the eatables are named after the movies & various film stars during the release of much hyped & successful movies. All above this with the help of various media channels. various documentaries and social messages that are to be passed n community. The main focus is to market the movies that are big screened along with creating & making aware the people about the multiplex. Café Marketing: This is an altogether new concept started and undertaken by multiplexes for marketing its movies.Indian Multiplex Industry Marketing Strategies Movie Marketing: this is one of the most important areas which is marketed & helps in creating a brand image for the company. E. Special Events Marketing: the positive point that multiples gains over others is that along with the screening of various movies it also screens special event such as F1. Also during such premier’s press & various media channels are invited to cover the whole premier event which has a positive effect on the multiplex. this act as s “synergy effect” and thus more & more number of people become aware about the multiplex and its day to day activities. It basically helps in promoting its movies with the help of eatables sold in the cafeteria within the premises of the multiplex.g. cricket matches.
advertisements take place here because of the ambient factors & also space the surrounding. Tie up With Various Corporate: Multiplex has tie-up with many corporate associates as they help each other in their day to day activities. Their relationship is of “give & take” type. Movie Shootings & Advertisements: Multiplex also allows shootings for movies & advertisements as it helps to publicize & create a brand name for itself.g. Midnight Matinees is another innovative attempt on the part of multiplex to combine various elements of leisure & partying with cinema viewing. “Women’s Day Celebration” on 8th March in ‘IMAX’ by ‘Citibank’. Both of these go hand in hand. It was a huge success for both made their customers satisfied & also lot more loyal customers for them. friendship day. it is like the corporates organize or the host the events that are conducted in the multiplex & in turn the multiplex gives it sales indirectly. Such activities give unique experience to its customers who feel the same home & personalized atmosphere present there. it arranges for many events & birthday parties as per the customers demands. E.Indian Multiplex Industry well as special days such as valentine day. 33 . Special Screening of Hollywood Movies: A new concept started by many multiplex is the screening of Hollywood movies at their theatres. Also it acts as a business activity as the movie makers are not given the premises free of cost. Also. Movie shootings. These special screenings are referred as “Midnight Matinees”. Independence Day & republic day & events such child fest.
Our analysis shows that more than 70% of people prefer going to multiplexes as compared to Single Screen. In a country like India where people still say that a movie should have to a PAISA VASOOL. No doubt the road ahead for single screens is very challenging and exciting.Indian Multiplex Industry Are the single screen theatres in India going to die soon? With the boom in the multiplexes and the trend of multiplexes which can be seen in India. his wife and two thinks of venturing out into a multiplex on a Saturday evening. Multiplexes offering tickets at around Rs 150 cannot call for large chunk of audience on account of high prices. nearly 600 are multiplexes and around 10900 single screens. Single theatres would do well in smaller towns where multiplexes don’t go. The perfect answer to this will be a big “NO”. 34 . it shows that the expenditure on movie or price of movie tickets has always been a question. a question has been raised that. On the other hand. They can price themselves on par or maybe slightly above the numerous video parlors that are thriving in the rural areas. There are an estimated 11500 cinemas in India. if you count the costs! The Indian film industry is the world’s largest. but “The bigger the mob the greater the thrill” is an old saying. the idea doesn’t seem too pleasing.000 films each year. if a common middle class family-. Of those. churning out more than 1.comprising a man. are single screens going to die soon. They themselves have to look and explore their potential to serve better in the rural or their expected market.
One of the trends that have caught the momentum in the past decade is the ‘ERA OF MULTIPLEX’. The reasons for the same can be attributed the fact that over the past couple of years. This in turn has given rise to the multiplexes – swish. the dynamics of movie making has changed dramatically. Case in point a film like Chak De or even Dev D. Producers were quick to spot this trend and starting creating cinema which was largely aimed at the "multiplex audience". society and culture of every country has taken a leap. culture and behavior across the global. These are the upwardly mobile section of the audience which don't mind paying for a story well told.Indian Multiplex Industry Strike Issue of Multiplexes What was This Multiplex Strike All About With the emergence of phenomenon like liberalization and globalization. the audiences have as well. Till a couple of years back you wouldn't have imagined these films gaining acceptance. no matter how unconventional it is. Multiplexes and distributors / producers starting conflicting 35 . popcorn-smelling environments which woo you with combo meals and a great film. We can see transmission of ideas. clean. Not only has the craft of story telling changed. trends. forget becoming hits. This has largely been possible due to a growing section of audiences collectively and colloquially defined as the "multiplex audiences". What they didn't realise was that in the bargain they were creating a goliath that would in turn start dictating terms to them and that's where the seeds of this conflict were sown.
Multiplexes wanted a larger share in the pie as according to them. Bollywood producers incurred losses running into hundred of crores due to the strike over revenue-sharing between producers. distributors and multiplex owners. This is classic example of how any business or industry gets affected by the important development in it. However. led to the eventual deadlock. distributors / producers would argue that content generation is more critical hence they should get an equal share if not more. The strike has also affected auxiliary industries like hoardings. With each movie would start a new bout of conflict over who gets how much. not sharing the benefit of certain incentives given to them by the government with the distributor. public relations and advertising. they get the audiences to see the movies.Indian Multiplex Industry on revenue share. A couple of other issues like the multiplexes inability to clear huge amount of out standings towards the distributors. 36 . as their work has come to a complete halt. with each party expecting more. This ended when the multiplexes have agreed on sharing revenue of all movie ticket sales for the : For First Week For Second Week For Third Week For Following Week 50-50 basis 47-53 basis 40-60 basis 38-62 basis On account of negotiations between the actors and the producers they have come up to this percentage distribution as per film.
which currently has 92 screens. Multiplexes /megaplexes have been instrumental in contributing 28 percent of the total theatrical sales for the film industry according to a report by Systematix Institutional Research.55 million. This shows how the multiple dynamics act as very important factor in determining the industry growth and development. plans to invest US$ 298. Multiplex chain PVR Cinemas. with a total investment outlay of around US$ 71. Entertainment conglomerate Adlabs Cinemas has drawn up a plan to build 12 megaplexes in India where you can not only see movies but also cricket and soccer matches on screen.12 million for the expansion of its multiplex business.Indian Multiplex Industry Apparently. is also planning to add over 150 screens across India. Cinemax India. The company has planned to add at least 500 screens in the next four to five years across the country. staggered over a period of three years from 2008-2010. this industry has suffered an estimated Rs 100 crore loss. MULTIPLEX BUZZ!! The nation's multiplex industry is all set for an unprecedented boom buoyed by positive regulatory changes and booming consumerism. a leading real estate player in the country. DLF. the multiplex chain which currently has 55 screens over 17 properties across the country is planning to scale up its presence to 299 screens across about 100 properties by fiscal 2010 37 . Industry experts estimate that top six multiplex chains have plans of 300-500 screens each by FY-10.
com/2008/09/12/emergence-of-multiplex-in-india/ http://www.dreamznetsolutions.com/newsofap-4988-25-inox-becomes-second-largestmultiplex-chain-in-india-newsofap.wordpress.com/articles/fban.indiatimes.info/2007/03/16/300-movie-review/ www.techtribe.html?blogEntryId=8413080e-5d38-102ba627-000f1f68a9bf http://economictimes.html http://www.net/business/9331-multiplex-and-single-screen-cinemas-inindia-2010.html www.exchange4media.dancewithshadows.legalserviceindia.naachgaana.magportal.Indian Multiplex Industry References and Sources www.ankurb.html http://www.asp?section_id=4&news _id=17336&tag=12066 www.com/e4m/izone1/izone_fullstory.com/viewBlogEntry.com/articles/media-option-website-designing.com/features/brand-equity/Why-Indian-youthprefer-multiplexes/articleshow/6192272.com/business/cinepolis-multiplexes-in-indiasoon-40-new-screens-in-12-months/ http://www.cms http://www.htm www.info/news/2007/nov/25/multiplexes_fast_gobbling_in dias_single_hall_theatres.indianmuslims.com/c/ent/movie www.html http://www.realty-firms.com/2010/06/26/multiplex-and-single-screen-business/ http://mybigmedia.html 38 .newsofap.vnrao.com/multiplex.
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