SESSION: 2007-2010



The present work is an effort to throw some light on “ PVR Cinema s: Marketing Strategy” . The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by …………..who helped and supported me during the course, for completion of my thesis.



Recommendations…………………………………………….19 b... Porter’s Five Forces Model ……………………………………27 VI. PEST Analysis……………………………………… IV.10 V. Acknowledgement………………………………………………. PVR Cinemas: About the Company…………………………...61 3 . BCG Matrix……………………………………………………60 X. Marketing Mix: 7 P’s………………………………………….44 IX. Ansoff Matrix…………………………………………………. Film and Exhibition Industry Overview…………………….3 a..2 II.36 VII. SWOT Analysis…………………………………………………26 ………. Entertainment Industry Overview……………………………. STP Analysis……………………………………………………40 VIII.CHAPTERS: I.4 III.

30-40 million people are joining the middle class every year.ENTERTAINMENT INDUSTRY Over the last decade. 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. Over the years. 4 proportionately more resources get spent on leisure and entertainment than on necessities. as this cyclically sensitive industry grows faster when the economy is expanding. . The Indian Entertainment Industry is expected to significantly benefit from this fast economic growth. On an average. India has registered the fastest growth among major democracies and is now the fourth largest economy in terms of ‘‘purchasing power parity’’. spending power has been steadily increasing in India. When incomes rise.

59 billion (US$1.49 Billion in 2003. The pie chart below sets forth the percentage contribution of various revenue sources to the total revenue of the Indian film industry in 2004.Indian Film Overview and Exhibition Industry The Indian film industry is the largest film industry in the world in terms of the number of films produced and admissions each year. which was less than 1% of global film industry revenue and a fraction of the U.3 billion).S. which was US$9. The Indian film industry revenue for 2004 was estimated at Rs. film industry revenue. 5 .

the total admissions in cinemas in India were 3. In 2004. the Indian film industry was only accorded the status of an industry in 2000. which had 1. Prior to 2000. the film industry is currently largely unorganized and fragmented. Going to the cinema is one of the most popular entertainment options in India. private equity investors and corporations. financial institutions. Consequently. The second largest number of admissions is in the United States. the industry was almost solely reliant on private and largely individual financing. 6 .Although over 90 years old. it is only during the last five years that the Indian film industry has been able to attract financing from banks.100 million. Although corporatisation of the film industry has started.500 million admissions in 2004.

The film industry comprises three sub sectors:
• Film production, which involves the making of movies; Over 900 Indian produced films were released in 2004. Hindi films constituted the bulk of films produced in India closely followed by regional films in Telugu, Tamil, Kannada and Malyalam. Hindi films are 7

the most popular films in India and account for over 40% of the total revenues of the Indian film industry. The majority of Hindi films are made in Mumbai, popularly referred to as "Bollywood". Around 30% of the films made in India generate 90% of the Indian film industry's revenue. • Film distribution, which involves the distribution of movies to cinemas,

television and video stores; The film distribution system in India is territory-based. The country is geographically divided into 14 distribution territories and film producers tend to sell distribution rights for each territory. Most film Film distributionin sector trends distributorssome of characteristics and have vertically In the recent past, the larger producers India into small businesses. This markets. integratedare distribution, especially into overseas has resulted in the film • A number of new entrants have entered the distribution business, industry being resulting in an increase in acquisition cost for distributors. •highly fragmented, in the content at a very early stage by Distributors are trying to lock with each territory having 50-75 financing film producers. •distributors, while 8Distributors are playing an increasing role in marketing of films. • New films are being released in satellite/ video formats within a shorter 10 distributors operate on an all India basis. A distributor period after theatrical release, thereby reducing the window for theatrical generally exploitation. sells • New films are being released across a larger number of theaters with a its number to sub distributors who cover certain largerights of prints in order to maximize theatrical revenues in the sections in a shortest time period. territory • New distribution formats, like digital distribution through DVD, are
being implemented. • The increasing size of the home video market is also expected to provide growth for the distribution sector. As of the end of 2004, over five million Indian households had a VHS or DVD player, an increase of 50% compared with the end of 2003. Increasing wealth should result in more Indian households owning a VHS or DVD player and expand the home viewing market.


• Film exhibition, which involves the exhibiting of movies in cinemas.

The Indian film exhibition sector can be divided into two segments: single and double-screen cinemas and multiplex cinemas, i.e., a cinema Indian Film Exhibition Sectorscreens or more. As of March 2005, complex with three The Indian film exhibition sector had revenues of Rs. 34 billion in 2004. there were Despite the higher number of tickets sold in India, the total reported box office revenue is significantly lower in India compared with the United approximately 12,000 cinemas in India of which 73 were States. This is primarily due to the fact that ticket prices are much lower multiplexes in India, withtotal of 276 screens. with a an average of Rs. 15 . The lower ticket prices in India are due
to lower income levels, especially in rural and semi urban parts of the country, and the lack of good quality cinemas. The average price of a ticket for a multiplex cinema is Rs. 75 - 85 but the number of screens in multiplexes represented only 2.3% of total screens in India as of March 2005. (Source: Yes Bank Report) An increase in the number of Multiplex screens should result in an increase in film exhibition revenues, so the opening of new Multiplexes represents a significant growth opportunity for the industry. The total reported box office revenue in India is also lower because the amount of revenue collected at the box office is under reported due to the fragmented and non-transparent nature of the film exhibition sector.

Inadequate Number of Screens In India, the number of screens per million of population is just 12 whereas the average in western countries is approximately 40.


10 . only five PlayersofIndianmultiplex out in 73 Film Industry Major cinemas in India were in Southern India. Andhra Pradesh has the most number of cinemas in India followed by Tamil Nadu. Whilst Southern India accounts for the majority of all cinemas in India. Kerala and Karnataka.Concentration of India accounts Southern Cinemas in Southern India for a majority of the cinemas in India. as of March 31. 2005.

Players Indian Industry Production Exhibition a aaa aa Film Distribution Zee Telefilms Adlabs Films AVM Productions a aa Mukta Arts aaX Rajshri Productions aaX Shringar Group X aa PVR Cinemas Xaa Pritish Nandy Communications July 2005 a Present X Not present aaX PEST ANALYSIS 11 .

cell phones. but movies are the main pull of such Because of India’s status as a good IT hub for outsourcing by U. The table below shows the growth in the often larger than number of middle and high income households in India. Now they have disposable income that’s totally discretionary and about 20 to 30% higher than prevailing wages. The film segment will ride on the growth of multiplexes and digital distribution formats.000 seats by the end of 2006. food Increase in disposable income in the hands of an ever expanding Indian middle class and beverage collections. complexes. young Indians between 20 to 24 years old. The main revenue stream is box-office collections from movies. promotions by The emergence of the Indian middle class with greater earning power and a companies. 18%in India. music.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. product launch rentals and Multiplex Cinemas generally cater to middle and high income households. In India the multiplex business is modeled to the ones in developed countries. There are 73 multiplexes year-on-year growth is expected in 89. Other revenue streams include rent from display systems. The numbers are expected to increase to 135 multiplexes with more than 160. companies. restaurant rentals.S. which they are spending on books. food and brand-name clothes” 12 . box-office collections. who ordinarily wouldn’t be able to find work easily. The entertainment industry is expected to grow faster than GDP growth and consequently more spend is expected on leisure and entertainment. with 276 screens and aboutthis segment. In several cases the other revenue streams are higher disposable income is one of the key factors that will drive the growth of the Multiplex Cinema segment. movies.470 seats. are finding jobs with call centers straight out of college.

changing lifestyles. The organized retail market in India is expected to increase its share of the total retail market from 2% as of 2004 to reach 5-6% by the 2007. with the family. . The lines are blurring between watching a movie for Multiplexes are one of the anchor tenants in large format malls. the its spending on availability of movies and theatre as a percentage of its disposable income Organised retail boom quality real estate and significant investments in malls are from 1% to expected to result 4. The number of malls in India is expected to increase from approximately 50 as of the end of 2004 to around 250 by the end of 2006.6%. The expected organized retail boom should result in a significant increase in the number of Multiplex Cinemas.From 1999 to 2003. as their 13 presence increases footfalls by approximately 40-50%. in an increase in the size of the organized retail business in India. One of the key Social elements for the Movie watching is becoming an experience more than just a casual outing success of a mall is its ability to drive footfalls consistently. the average Indian household increased A growth in consumption levels.

environment. As shown several movies were competing for limited number of in the table below. especially in urban India. as these movies tend to be more premium and popular. from 2001 until 2004. the quality of the movies produced is expected to increase. unviable movies with weak scripts should find it difficult to garner funding. there was an screens. The encouraging growth in the number of multiplexes is making the movie goers. although the average number of films 14 produced annually in India is expected to fall from over 900 in 2004 to around 600 by 2010. The movie experience goes much beyond just watching a film. An increase in the important as average production to the Indian movie industry. Multiplexes Increasing corporatisation of the film production sector should result in an increase 48%the the in number of high quality films produced. increase increased the number of available screens. experience a new way of enjoying movies. Higher consumption spending and consequent changes in lifestyle are also spurring the growth of the Indian Increase in Number of High Grade Hindi Films Entertainment sector. which should provided them increase demand for movies. In an increasingly corporate with excellent acoustics and enhanced picture display. but also not only in number of releases per week for high grade Hindi films. Space was at a total demand for movies. .entertainment and watching a movie for leisure. Multiplexes were quantity of high grade Hindi films released per week should the natural increase the choice for distributing movies in large cities. Demand for a particular movie is generally driven by both its critical Since the late 90’s distribution has become equally as reviews and word of mouth from patrons. Consequently.

several state governments unveiled tax but the incentives (by way of complete or partial waiver of entertainment tax in the initial five years of operation) to attract newsmaller citiesfilm concession has been extended to investments in the too. A new set of policy makers are looking at this segment with a fresh perspective. The waiver that came cinemas were during next two to five as small business and these businesses did not have access to capital to improve the was ambience and quality to arrest the declining patronage. Mostto them in the that time. . which is a positive sign. multiplexes. exhibition business. Delhi. It allows 100 per cent FDI on automatic basis in the film industry with no entry level pre-conditions. runyears. A positive concession given cinemas. a fact not favoured by all. which were essentially in metropolitan cities. The fall in cinema standards coupled with the availability of earned by multiplexes watching movies on videocassette players lead to a decline in cinema patronage. Since the beginning of 2001. and still are. the government has opened large parts of the sector to foreign direct investment (FDI). multiplexes. cinemarestricted to In June 1997. which lead to a fall in the ambience of cinemas and a decrease in the quality 50 to and visual of the profit 2002/03 was the deduction of of audio 100% standards. Entertainment tax benefits Several state governments provided incentives to encourage the late 1980s of In the growth various state governments imposed steep increases in entertainment taxes.Political The year 2004 also witnessed a change in the political scenario of the country with a positive impact on the regulatory scenario. which lead to a decrease in the profitability of to the cinema This adversely affected investment in cinemas and maintenance standards as theatre industry in cinema owners tried to reduce their costs. On the other hand this does give rise to delayed policy decisions. The tax incentives coupled with falling interest rates made investment in cinemas more attractive and led to old cinemas being 15 To boost the sector. we opened the first Multiplex Cinema in India in Saket.

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. This has encouraged the growth of Multiplex Cinemas and also encouraged single-screen theaters to convert into Multiplexes. This has resulted in pressure on the profitability for a number of players in the exhibition business. The quantum of entertainment tax benefit which may be available in each state is different and the availability of these exemptions would be dependant on compliance 16 . A worsening quality of cinemas resulted in a lower number of patrons. many state governments have announced policies offering entertainment tax benefits. exhibitors (especially the single screen owners) have not been able to maintain and/or upgrade their cinemas. State entertainment taxes in India are among the highest in Asia. As a result.converted into Multiplexes and new Multiplexes being established as part of shopping complexes (or malls).

with certain conditions specified by the relevant state. 70. Due to the high print costs for films (approximately Rs. 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.000 per print) as a 17 .

the cost of digital projection equipment being used in India is also • If the less than that of film hit on equipment (approximately Rs.of the film being generally opened in B and C-class centres in India and movies are being released in available by the time those cinemas at the same time as movies are released in the A-class the film is released cost significantly less than film copies centers. each time it is As of March so poor picture quality opened in India. .000 for it is compared with Rs. digitalized motion pictures are not required to be transmittedon thephysical media. The bigger movies are released with 300 – 400 prints to satisfy a potential market of 12. 3. This means print is motion pictures can bethrough screen. starting with A-grade cinemas in Aclass centers.000 cinemas. and makes an India-wide simultaneous release of a movie economic.5 million for film).percentage of the average ticket price in India. B and C-grade hardly visible distributed to more digitalized 18 The above factors result in the box office potential of movies not being realized.000 for film) and demand.often the 2005.is which an • The quality of the celluloid film print of negatively affected estimated 65 were in operation. Digital copies of filmsin B and C class centers. significantlyfilm was not a projection its initial release in the A-class 800. distributors have adopted a policy of releasing a limited number of prints in each territory and rotating them in the territory. The practice of rotating prints and the resultant delay of the release of films in B and C-class centers create three major problems for film exhibitors in B and C-class centers: Impact of Digital Technology on Cinemas in India • Pirated DVD/VCD copies digital cinemas are are To counter this issue of low first instance release. As of March 2005. 100 played. 70. which reduces (approximately Rs. 100 digital cinemas had been opened in India. Digital technology helps dark and scratchy problems faced by B and C-grade cinemas. Many cinemas in B and C class centers operate on a 7% to 8% occupancy ratio. 1. issue . 65 were in digital cinemas had been is also overcome the an of which an estimated operation. The significant centers digital of digital cinema compared with celluloid film reduction in the cost unlikely to do well on its delayed release.000 for digital compared with Rs. First.

As and when the digital projection technology up-gradation will be required in the A-grade cinemas in India. use at least Transition to Digital Cinema cost Challenges Faced by projectors. Secondly. This helps to combat the market for pirated motion pictures and helps increase attendance rates at B and C-grade cinemas. Thirdly. 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: . as the production houses get substantial savings from not having to produce celluloid prints. without incurring additional production costs. the issue of financing of such equipment will need to be addressed. and cinemas.000). which in India between Rs. which is significantly more than the cost of celluloid film projectors. and transmission. digital projection equipment is being financed by Hollywood 19 production houses rather than the film exhibitors. where celluloid film is used. we need to demand caused by the availability of movies on pirated DVDs/VCDs. cinema patrons' demands at the Digital Cinema • Satisfaction of as well as to meet time when the demand for Initiative screening of a movie is at its highest. cinemas within the first weeks of their release without incurring additional costs to produce additional prints. In the United States.The digital projection technology currently being used in India (mostly in Bclass and C-class centers) 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. 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. 4-5 million (US$ 90. time. digitalized motion pictures maintain consistent and identical picture quality that is not compromised by use. In order to have a • increased number of screens on which newly released movies current celluloid digital picture quality as good as the are shown.000110. film quality in picture quality • Improved and consistentA-grade without regard to the location of the cinema. which should reduce the loss of standards.

totally refurbished the existing cinema in June 1991 including installation of a Dolby stereo sound system. They also gained exclusive rights to screen blockbusters from major distributors mainly Warner brothers. “Speed” set a national box office world record of Rs. Australia’s leading entertainment corporation. which has interests in transport. technology and service. united international pictures. The capitals cosmopolitan audience is becoming increasingly aware of the advanced cinematic technology that enhances the movie going experience and this has whetted their appetite for watching movies on the “big screen “. Over the last three years. PVR Cinemas are the leading cinemas in the country with an emphasis on design. quality exhibition and youth-targeted promotions. 20th century fox.000 patrons a week. After a downturn in the industry in late 80s when the onslaught of video wars at its peak cinema has now been rejuvenated with the latest international trends in cinema exhibition reaching India’s shores swiftly with the arrival of satellite TV. Buoyed by the overwhelming success of the cinema after upgrading. 20 .ABOUT THE COMPANY Priya Exhibitors (p) ltd is a part of the diversified Bijili Group. PVR is a brand name synonymous with state-of-the-art cinema exhibition in India. PVR specializes in developing and operating state-of-the-art Multiplexes.785000 in its first week of screening at PVR (the highest ever for an English film). Priya exhibitors ltd have taken he next initial step for setting up the first multiplex in the country in a joint venture with Village Roadshow Ltd. small wonder then that the cinema has become the focal point for entertainment in the capital for both the young and old attracting over 30. Infact. which is remarkable considering the relatively low price of a cinema ticket in India. To cater to the increasingly sophisticated tastes of the audience Priya exhibitor Pvt Ltd. finance and construction sectors all over India. PVR has established itself as a very strong brand associated with movies.

Cineplex in Delhi. was completely renovated and brought into the fold of PVR in January 2000. was launched in August 2001. With a seating capacity 21 . with four screens and 830 seats. PVR Priya boasts of the highest box office collections in the city of Delhi after PVR Saket. PVR Vikaspuri (3 screens. family. more than 1500 PVR has been a pioneer in multiplex development by setting up India’s first multiplex PVR Anupam4 at Saket in city of Delhi. Located around the Cinema in the same complex are a number of up-market restaurants. PVR expanded to West Delhi in 2001 with the launch of two new multiplexes -. PVR Group has re-opened one of Delhi's oldest and most popular cinema hall. and PVR Vikaspuri. The Cinema can boast of the highest box office collections in India for five consecutive years since its opening. Ajjay Bijli as Indian Promoters and Village Roadshow Limited of Australia. 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.PVR Naraina. PVR Naraina. headed by Mr. It also has the distinction of having the widest screen in India. pubs and fast-food eateries that make it a popular youth hangout place and indeed an entertainment PVR entire a 25-year-old cinema still considered the best experience for the Priya. now known as PVR Plaza. Following the tremendous success in South Delhi. 921 seats) was launched in November 2001. Plaza.The company was conceived as a Joint Venture between the Bijli family. one of the largest multiplex operators in the world with PVR IN DELHI screens under operation.

is In May 2003. It is a offering patrons equipped with the latest THX-approved three-way surround comfortable and relaxed cinema viewing environment. PVR SRS is a 3-screen multiplex that opened to the public on 12th November. this three-screen PVR IN GURGAON multiplex. facility with the niche Indian Located at the popular Ansal Crown Plaza in latest this two-screen multiplex has a total Faridabad. internationally acclaimed as well as Oscar winning films. the company inaugurated its sixth multiplex. located in the popular East Delhi Mall. this multiplex has an kind in lobby of-the-art technology and is one of its'avant-garde the vicinity.Cinemas opened North India's largest multiplex. doublecustom total and ample legroom armrests vibrant red.of 300 seats. the all new single screen auditorium has been renovated and refurbished to bring back its former glory. PVR launched its first ever franchised CinemaPVR SRS in Faridabad. PVR equipped with the astate. Xenon-based technology.7-screen cinema in Gurgaon. combines the look and feel of the 50s with the state-of-theart cinema viewing technologies of today. Built over an area of 55000sq ft.. 22 with studio effect interiors and currently offers a seating capacity of 1300 seats. The cinema. unique in its nature. 723 seats. It is the first of its arrangement ensures Hollywood kind in Faridabad. 2004. The most recent addition to the chain is PVR EDM. PVR Faridabad.films. unobstructed viewing from anywhere in the auditorium. The stadium seating seating capacity of 522 seats. It has a total capacity of 776 seats. Two luxurious auditoriums called ‘Cinema multiplex The three-screenEuropa' have beenhas a built withseating capacity of plush reclining seats. . The sound system choice of movies PVR IN FARIDABAD with real the Europa are an eclectic mix of tastefully chosen played at life sound effects and state-of-the-art projection In May 2004.

23 . • First to launch India's biggest toscreen multiplex . Australia • First to receive institutional funding in the cinema industry . PVR has also ventured into the business of film distribution and set up PVR Pictures.PVR Anupam Saket.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 First to launch 'Movies First' . 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 • First to form a foreign joint venture with Village Roadshow. this state-of-the-art multiplex is located in the heart of Bangalore at the Forum Mall in Koramangla with a seating capacity of 2019 seats. Delhi addition 11 seven Classic auditoriums.PVR IN BANGALORE PVR Cinemas has opened India's biggest multiplex (11 screens) in Bangalore.a monthly magazine that updates the movie lovers on the latest happenings in Bollywood and Hollywood.PVR.000 sq ft of space. Built over 1. a fully-owned subsidiary of PVR Ltd. This multiplex includes two ultra premium cinemas known as the Gold Class and two luxurious auditoriums called Cinema PVR FIRSTS Europa in • First to launch a multiplex in India .20. PVR ACCOLADES Pictures specialises in acquisition and local distribution of films.

Managing Director. It is his vision and outstanding contribution to the cinema exhibition industry that has made PVR the largest cinema exhibition company in the country today. PVR Limited. CineAsia honoured an Indian exhibitor. Ajjay Bijli was also honoured with a special award at CineAsia 2004 for his significant contribution to the multiplex industry of India. Retail Environment” Every time.” category at the “Annual Design Week” awards. MISSION PVR Gurgaon was nominated for an award in the “Best “A commitment to deliver the best quality cinema viewing Every where. 24 . was conferred ‘The Theatre World Newsmaker of the Year Award for 2003'. He has also been chosen as Signature Youth Icon for the year 2005. For the first time.Ajjay Bijli.

cases revenue linked variable rental Cadburysinetc. Bharti. The quality of cinema viewing has made the PVR brand synonymous with high quality cinema viewing in the country. This has generated additional steady stream of Anchor Tenant FECs • Better Lease terms due to recognition as anchor tenancy revenues for • Enhanced Footfalls the company. Samsung. and on Real Estate • Service Model No Real Estate Investments Evian. Pizza Hut. • Rentals: Lower fixed rentals. This has enabled them to enter into strong corporate alliance B USI N ES S M ODE L partnerships Hedged co-marketing exercises with leading brands like Pepsi. Master American tenancy in a in a few Card.PVR has successfully assimilated the Standard operating business and operational practices of Village Roadshow and set new standards in the quality of exhibition in India. Widened basket of revenue • Ticket Sales Streams • Candy Sales • Corporate Alliances. Hero Honda. Sale of PVR AS A BRAND Media spaces 25 . due to advantage of Whirlpool.Mall and anchor Express.

though Village Road show exited as a joint venture partner. Village Road show’s inability to support the growth plans of PVR. In line with this strategy they exited from almost 20 countries worldwide. they decided to concentrate on the Production business and on Exhibition business only in those territories where they have majority control and have the critical mass of screens. the Indian promoters offered to buy out the Village stake and the joint venture was mutually decided to be terminated in June 2002. PVR was exposed to best business and operational practices in the Cinema Exhibition industry and was able to revolutionize the way to go to cinemas. . 26 During the 5 years of joint venture with Village.Minimizing real estate risk and Maxim izing services RELATIONSHIP WITH VILLAGE ROADSHOW In 2002. As part of their worldwide strategy. the excellent relationship between both companies continues and is reflected by the fact that PVR continues to have an exclusive long term technical and marketing services arrangement with its erstwhile partners on a long term basis. including India. Village Roadshow was undergoing a strategic and business restructuring worldwide. However.

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 WEAKNESSES OPPORTUNITIES High cost perceptions T.A very specific (not mass service) Disjointed images for all PVR properties Customer retention Parking problems First mover advantage Growing family spendings on entertainment Large film industry – over 200 hindi films every year PVR loyalists THREATS Competition blooming large Government’s interference Entertainment Tax Other Multiplexs as competition Other ways of entertaingment Accused of increased crime rate PiracyNo control over surroundings eg. English.SWOT ANALYSIS STRENGHTS First mover advantage in the multiplex business in India Updated technology Premium positioning Plays Hindi. West Delhi Movies becoming bigger than the brand 27 .

28 .

Of Properties PVR 7 34 7. of screens No. In the future.952 25 114 33. Adlabs Films Limited.380 E City Entertainment 3 14 3.344 Adlabs Films 4 14 5. Wave Cinemas.666 Srinagar Cinema 3 14 4. Some of their competitors have greater financial resources than them and therefore they may be in a better position than PVR to invest in Multiplex Cinema projects or to sustain losses from such developments in the start-up stage.333 Inox Liesure 5 25 7. E City Entertainment. COMPANY No.THREAT OF COMPETITORS PVR Cinema currently faces competition from other companies in the Indian film exhibition sector. and DT Cinemas. Shrinagar Cinemas Limited. they may also face competition from global entertainment companies if and when such companies make their foray into the Indian exhibition sector.263 Total % Of all India 34% 41% 37% Multiplexes No. Of seats 29 . There are currently seven major competitors in the film exhibition industry: PVR 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.588 Wave Cinema 3 13 4. Inox Leisure Limited.

the DT class cinema has also tied up has to Wow. city center is Gurgaon’s first multiplex. Satyam complexes with its state of the art cinemas has brought to India. covering 48000 sq ft. hosts 3 screens and can seat upto 1100 people Has imported state of art facility to its Gurgaon premises DT Cinemas is planning to add a creche projection systems in soon.1000 crores. the best in Cinemas entertainment that the worldwith offer. Satyam Cineplex is bookings and almost 5 per cent India with total bookings come poised to become a leading Multiplex operator inof their a capacity of 5000 seats. DT cinemas are set with its first multiplex at the DLF city center in Gurgaon started on 7 mar 2003. Satyam CEO Deven Chachra: ‘‘We plan to develop a The group currently owns 3 prime sites in New Delhi namely Janak Place. Handicrafts. Offers telephone. Film Distribution and Cineplexes. Patel Nagar and Nehru Place with many more prime sites under negotiation. With a telemarketing launch offorSatyam Cineplex in Patel Nagar and two cineplexes at Janak outfit the phone Place and Nehru Place currently under construction. The group has a 30 . Spread over 3 lac square feet on mg road.Major Competitors • DT CINEMAS The DLF group. The Superior Group has interests in Garment. one of the largest real estate co’s with a turnover of Rs. for the first time. • and SMS booking Delhi and other Satyam Cineplexes is part of the Superior Group. Candles. NCR regions. the world net SATYAM CINEPLEXES home delivery facility 2 Gurgaon. the through phone.

500 for a couple. which includes revamp of an existing On weekends. Nagar. in Delhi . total Satyam has three cineplexes In Kapila assures us that hot meals would be at the doorstep when the in Patel family returns home after watching the movie. To begin with. Chandigarh and Uttar Pradesh to leverage Satyam’s Recently. Bangalore and Hyderabad will be covered in 2005. Janak Place and Nehru 31 Place. Jaypee Siddharth tied up with Satyam Cineplexes with an aim to distribution edge.PROMOTIONS plan to add at least 2-3 sites every year on a rolling programme. there is special buffet cinema hall a(alreadyspread for ticket stub holders to (afternoon and evening show audiences) of Satyam who will be entitled have this buffet at Cooksin at a discounted rate of Rs operational) atCafeDelhi. We will develop properties in Mumbai and Pune in the next 18-24 months. The new expansion project follows from the finalizing of the Rs 82-crore project. provided the guest in question buys a full meal at the outlet. Under this scheme. Further. any guest whose bill in any of the restaurants of Jaypee Siddharth is Rs 2. our focus would be to consolidate in Delhi. Initially.’’ packages”. of two and development The normal buffet price the hotel is Rs plus taxes. This meal costs RS. By March 2004 Satyam will be running 16 screens at 4 sites with a total of more than national chain of multiplexes.000 and above will be entitled to two tickets at Satyam.Siddharthonly andthey go thisSatyam tocine-goers can order for food at Jaypee before to watch the 6 pm show. 150 per person. more multiplexes in the on Wheels’. guests provide some “exciting and innovative can enjoy and savour a whole host of privileges. This scheme is Another unique promotion is titled ‘Siddharth valid for evening shows under scheme Capital. Mr. this promotion works both ways. If any guest who presents a ticket stub of Satyam Cineplex (the ticket stub should not be very old) at Cooks Cafe at Jaypee Siddharth will be entitled to a soup and dessert.469 per person.

The rally have been financed by group internal accruals. . decided to diversify into the development of a chain of cinema theatres under the brand name launch party at Cine Court). anniversary celebrations hall with a six-brand food single-screen cinema in New Delhi kicked off a car grand court. Express. The cineplexes come which stands for ‘Competent Cine Court’. Diva Cafe. as part of its 2nd It’s a 325-seater. The Food Court concept allows different members of family to opt for different kind of food from the best brands under one common dining space The Group now plans to set up 32 more such cineplexes cum food courts at Ludhiana. Tikk.rally in The project is said to association with Satyam Cineplex and others. the company will set up performance by 3C’s in Lucknow and Amritsar in the short term. engaged in the business was held. Barista. 3C’s six food retailing brands (roped in through strategic alliance) in the Food Court are: McDonalds. Dosa cum food plaza is first of these Competent Group of Companies chairman and managing director Raj Chopra: ‘‘3C’s proposition is to offer a combination of good food and good entertainment under one roof. of automobile dealership. group has invested nearly Rs 20 retail chain of cafés. construction and film distribution.already operational at Lajpat Nagar in Delhi since October 2002 and the Café Coffee Day. Jalandar. The A-Wrap (London) and cineplexesExpress (Sri Lanka). Satyam cineplexes 3C’s (implying Competent cinemas rock music Beginning with Delhi. Amritsar and Chandigarh over the next 2 years.under the brand name 3C’S. a leading national crore in this project. • 3C’s ended at 11am at Satyam Cineplex Café where the prize distribution The Rs 450-crore Competent Group of Companies. Chopsticks Black Slade.

• WAVE CINEMAS Wave cinemas were launched on the 27th September 2003. The two wave cinemas have 4 screens each with a Seating capacity of 250 seats per screen. Wave is located at – KAUSHAMBI (U. whereas the one in NOIDA plays all Hindi and English movies. 200 is served free. It has seats like any comfortable sofa at your home. known as Wave Shipra Ticket rates are For KAUSHAMBI weekday ticket costs Rs. Accordingly.P.120 For NOIDA weekday ticket costs Rs.) Sec-18 Center Stage Mall. PVR faces competition from other forms of entertainment including. radio. Wave Shipra (NOIDA) even has a platinum lounge for which the rate per seat is Rs. 500. such as MP3 and multimedia messaging etc. There are 34 seats providing this platinum experience. THREAT OF SUBSTITUTES Threat from other sources of entertainment In addition. hence at any point of time 2000 people can watch the movie.100 and weekend costs Rs.120 and weekend costs Rs. film DVDs. The seats are very comfortable and have a larger leg space than any other cinema hall. internet and theatre and advances in technology related to entertainment. newspapers.) East End Mall and NOIDA (U. television. It has a very good ambience attached to it.P. in which eatables and beverages worth Rs. These other forms of entertainment compete with cinemas for the discretionary spending of patrons and for the ad-spend of advertisers.140 KAUSHAMBI wave plays only Hindi movies. magazines. PVR cannot be certain that they will not lose 33 .

results of operations and financial condition could be adversely affected. 34 . their business. 20000 crores in India. If they are not able to compete effectively.some of our cinema audiences to these competitors or lose advertising revenue to them. and on account of increasing homeviewing options. the number of cinema patrons may reduce in the future. Television forms a major 65%. On account of inadequate enforcement of anti-piracy laws in India. Films constitute 28% of the total entertainment industry of Rs. which may have a material adverse effect on the company’s revenues and results of operations. Piracy and home-viewing may reduce the number of cinema patrons. Television is expected to grow at a faster pace than cinema. • Costs of setting up a multiplex in India are coming THREAT OF NEW ENTRANTS down It can takes around Rs 40-50 crores to set up a premium five-screen multiplex in a metro while the same in a smaller town costs between Rs 1015 crore.

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 reservation of playing times for a the provisions of Multiplex Cinemas. common and hence these laws current may necessarily be not The permissible pressure at which the electricalmay not be supplied to a projector. the distributor’s share is normally a percentage of ticket receipts (net of entertainment taxes) and the applicable percentage 35 . costs by screen and the front laws some which distances were set based onat a time when Multiplex of which were written large screens used in row seats.75 • crore per Though regulations maintain pressure on the screen. 2. Some ofscientific film. cost variants Cinemas.But owners are now realising that if done right. For hiring a film. like Nagpur or Nashik. a stripped down multiplex can be set up much cheaper. DT Cinemas down Requiring a minimum distance between theis toying with the idea of 1. include: 4. which provision does not reflect the relevant for advances in respect of Multiplex Cinemas. compliance costs Owners have realized that cutting down on the ‘fancy stuff’ The Indian could bring film exhibition sector is currently regulated by a numerous half’. fit-out costs (cost of doing up the interiors) range anywhere between Rs 2 crore to Rs 2. news reel or documentary. The film exhibition industry in India relies on distributors to obtain films for exhibition. Typically. setting up low-cinemas and not the smaller screens used at most single-screen Cinemas were Multiplex in smaller cities. educational these laws film. technological 3.

Waves etc. If PVR is unable to BUYER POWER PVR was the first to open a multiplex in India. It has further strengthened its premium position by launching luxury cinema at select locations.is negotiated on a film to film basis in respect of movies produced in India and periodically for film releases by international studios. PVR had an to lack of of revenue generation. ‘Europa’ and ‘Gold Class’ experience has complete redefined 36 the movie watching experience. were concerned. It was recover such one of its costs and due higher box office collections or increased kind through other forms similar cineplexes around. DT cinemas. this risk Though other multiplexes like Satyam. have come up. buyers upper edge as far asour results of operations would be adversely affected. Distributors work on a non-exclusive basis and there is competition between exhibitors to acquire films. 3 C’s. .partially. It charged a high price and positioned itself as a premium PVR has itself diversified into film distribution and hedged service. PVR still enjoys a strong position. Competitive pressures may result in increasing the cost at which we acquire the rights to exhibit films.

PVR has MARKET PENETRATION AND DEVELOPMENT diversified into ‘film distribution and set up’ business and came out with their own film magazine.PVR cinemas is trying to penetrate into existing markets. It is also expanding its reach across new markets. 37 .

Bangalore and Indore. Hyderabad.Beyond the existing markets. Mumbai. PVR is contemplating implementing new multiplex projects in Delhi. NCR. Upcoming locations 38 .

PVR Pictures has also signed a 50:50 joint venture with Ram Gopal Verma's Verma Corporation Limited/ K Sera Sera's production company ‘Factory'.DIVERSIFICATION PVR has also ventured into the business of film distribution and set up PVR Pictures. titled ‘PVR/Factory' 39 . The new venture. This is a strategic business unit aimed at solidifying PVR's exhibition growth and strength. PVR Pictures specialises in acquisition and local distribution of films. a fully-owned subsidiary of PVR Ltd. To date. PVR Pictures has successfully released films produced by US-based production house Miramax such as Chicago .

PVR Cinemas has also come out with a film magazine. India Today Plus and also the Indian edition of the Cosmopolitan. 40 . the magazine will be available in all multiplexes and cineplexes operated and managed by PVR across the country. It is a monthly magazine and is expected to fulfill the information needs of the die-hard movie fans. The editorial content of the magazine is being managed by the India Today Group. Uttar Pradesh and Uttranchal. Beginning with New Delhi. operates under the PVR Pictures entity and has exclusive distribution rights in Delhi. as the magazine is called is the latest addition to PVR's big bouquet of offerings in the movie entertainment business. PVR Movies First. India Today. which publishes magazines like Business Today.

Also. Targeting and Positioning Segmentation On the basis of customer preferences. 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.Segmentation. we may classify PVR under the Clustered category. PVR is a Concentrated 41 .

Market because they only cater to the premium moviegoing audience i. 37% have college degrees Consumer Psychographic Segmentation or higher PVR Movie Goers are people with high resources and can be classified as “Experiencers” who seek variety and entertainment. Of these adults. 22 million movie goers per month 61% between 18 and 49 Age: Gender: 47% Males / 53% Female Income: 61% have income over 50K Education: 55% of adult movie-going audience has attended/graduated college*. Spend a comparatively high proportion of income on fashion. and socializing. “PVR Movie Buffs” generally have the following major Consumer Behavioral Segmentation tendencies:- Usage rate: 1/3 of the population attends the movies one or more times per -Go outside the home for entertainment -Participate month. SEC A and SEC B. Consumer Demographic Segmentation PVR Cinemas has approx. entertainment. consider as part 42 of their movie going experience .e. 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.

movie playing. 6. How does product fit in to their lifestyle? – Entertainment product for the premium. How does customer buy the product? – Online / Telebooking / In person 2. 4. premium positioning. What risks does the customer perceives – risk of being overcharged. risk of being in an emergency like fire at the theater. 43 . ambience. 3. 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. How do the various marketing mix elements influence the customer at each stage of buying? – (Explained later in the report) 4. which means that people are willing to pay. month etc. WHAT? What benefits that the customer seeks? – Complete moviegoing experience. What function can the product perform for the customer? – Entertainment. How long does the buying process take? – Simple and prompt 3. day of the week. 5. HOW? 1. status symbol. Depends upon the person. What are the important buying criteria? – Price. 2. Factors influence PVR’s demand? – Price. Even when all tickets are now priced at Rs 145. placement. day.1. time of the day. there is no change in the amount of customers that PVR receives. 5. movie. quality service. How much do they buy in one transaction? – Almost always more than 1 ticket.

keeping the generous mind. PVR has brought to its customers the experience of Luxury Cinema.Targeting PVR being the first of its kind has always been a market leader and therefore its offering to the customer is Innovative. Therefore. PVR uses the concentrated method as they have target a much focused audience out of he entire masses. they decided on theirand fully reclining seats andtarget market in legroom. ticketsClass Cinemas have been introduced for Positioning they have Gold ranging from Rs 45 (for the youth) to the 140 (for the upper Rs first time in India. they make use of all their tangible elements to prove Patrons can also to their customers that their movie tickets are worth the price they are paying.” 44 . not multiplexes) are still offering movies which provides its marketer to ensure that PVR comes across as a superior brand in terms of cinema viewing as well cinema experience withevident in as the experience. PVR Priya of PVR’s chain use Differentiation method PVR witnessed tremendous success Europa Lounge in Delhi. well planned market position. audience.e. still has a ultra luxurious exclusive auditoriums. Cinemas has also recently introduced the concept of luxury It practices different price slabs for different target viewing toFor instance. Also. Its premium class are two very equipped with positioning affects the customers perceptual positioning. In case PVR. and SEC A). 32 plushof marketing strategy and pricing. It’s positioning is scrumptious food an excellent pre which says its mission statement also and beverages “A commitment to deliver the best quality cinema viewing Every where. PVR for pricing. since some of the other movie theatres (which areGold Class lounge enjoy star like treatment at rates as exclusiveit is the task of at the low as Rs 35. Bangalore. PVR has premium pricing and they target mainly SEC A and SEC B. each PVR had. Every time.i.

there is no or very little tangible element because of which they are considered as benefits. filled online parking. can also good service. First. intangible or both. Patrons hygiene. the tangible component is nil or minimal. Therefore while relevance for a specific target After the tremendous success of developing a service Cinema Europa in Delhi. it is important PVR Cinemas has must service offer introduced the concept of luxury viewing to Bangalore as have a customers perspective.treatment done by legroom. 5 product levels are as well. In services. a service is a bundle of features and secondly. cinema ultra luxurious exclusive Bulk Bookings auditoriums. customer comes to a are two hall for.that the package of benefits in the product. . on the contrary. The expected seats and PVR’s product in or more tickets) generous corporates. eacharrangements for bulk bookings (of twenty along with the attendant experienceplush and fully reclining There are special equipped with 32 of PVR.MARKETING MIX – 7 Ps SERVICE PRODUCT/ SERVICE PACKAGE A product (in the marketing context) may be tangible. Gold Class Cinemas have been follows: introduced for the first time in that the Core Benefit is the MOVIES India. executives Gold Class get in touch with the concerned people. market. at the exclusive candy bar etc. there benefits Luxury cinema PVR has brought to its customers and features have the experience of luxury cinema. cinema 45 themselves lounge which provides an excellent pre experience with PVR has augmented its product offerings: scrumptious food and beverages. which are offered to the target market. Details can beenjoy star like and PVR case would be ambience. In case of services.

They have also launched a movie magazine called ‘Movies First’. It also Parties at PVR offers telePVR has also started helping customers in planning birthday/kitty parties at PVR. which was first started by PVR.E-booking and tele-booking PVR also provides the factility of e-booking. They have made PVR a wholesome entertainment experience than just booking a movie watching spree. 46 . Many corporates have also started using these as incentives and rewards for their employees. Movie vouchers They have also taken out the unique concept of movie vouchers which people can use as gifts. it has also come out with an online newsletter called ‘PVR Wire’ is directly mailed to the subscribers and can also be downloaded from their website. it has now been copied by Satyam cineplexes as well. Movie newsletter and magazine To keep its customers hooked on to movies and to PVR. The vouchers are available in denominations of Rs 100 to Rs 350 and a minimum of 25 coupons needs to be purchased to avail of the offer.

tangible and intangible.e. Hence.for food and beverages (optional) The “package” concept of services product suggests that what you offer to THE SERVICE PACKAGE the market is a bundle of different services. but there is a main or substantive or ‘core’ service and around it are built the auxiliary/peripheral/facilitator.The following options are available in Delhi/NCR The Delhi PVR Movie Money Voucher costs Rs 150/. facilitate the PVR is a very well established brand name. It is important to note that facilitating 3services ate mandatory and if these are left out. 47 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: . the entire service would collapse.+ Rs150/. but are well as the increase the excellent experienceof the basicservices the movie asused to other elements and thus value involved. Yet another type called supporting services.and is valid right through the week across all cinemas (except PVR Gurgaon . it is very much capable of good delivery of the differentiate from the competition.Cinema Europa) PVR Gurgaon (Cinema Europa) PVR Movie Money Vouchers cost Rs 160/The following options are available in Bangalore Classic Mon -Thur : Rs 100/All Week (including Weekends) : Rs 130/Europa Mon -Thur : Rs 130/All Week (including Weekends) : Rs 150/Gold Class All Week (including Weekends) : Rs 350/. and the audience is given consumption of core product i. don’t Reliability – Ability to perform promised service dependably and accurately.

their ability to convey truth and confidence. provide the Responsiveness – Willingness to help customer with prompt service. the movie halls. the to and well kept. individualized attention to the Empathy of direct only mode – (staff). profit oriented. competition or customer oriented. all of which areare a service like this customization is not Even though in trained and highly maintained convey the confidence that the brand possible. are guides customers to PRICE respective seats in the cinema hall. rooms etc. personnel etc PVR movies being a PVR movies have a lot of its employees. attitudecontrolled. categories ofaudience. all employees their To many customers. as they are like service. 48 . ticket counter to at the customer’s doorstep. Within these. the delivery ofto sit at made well before the show timing the employee that the tickets is made The employeesthe well trained. towards the target price may be But the government characteristics of services do influence the pricing and therefore different methods of pricing are followed in their case. high price means high quality.withcandy bars. equipment. Since PVR is a high contact organization. There is no flaw in the quality of the service and is Assurance – Knowledge and courtesy of employees and always delivered on time. The employees of PVR are fast and prompt at delivering their service and From customers with good assistance whenever needed. restThey are well customer. definitely able employees of PVR Cinemas are always very helpful and name represents. If a the employees customer places an order via telebooking / online reservation etc. Services pricing follows deliver a very helpful the price and practices of pricing of goods and therefore are either cost based or market based. heavily relies on tangible elements present the the employeesCaring. all areas regarding customer of physical facilities. are taught to cause as less inconvenience as possible to the customers.service it provides. communication made the the customers. the employees are well trained in Tangibility – Appearance interaction and courtesy.

This high pricing helped them make maximum gains. they could charge a higher amount to its target audience. This allows PVR as the market leader to set its own prices. we may say that the pricing as well pays a strategic role in their marketing plans. It offers superior ambience. Even in slighter crowded shows. seating. since some of the other movie theatres (which are not multiplexes) are still offering movies at rates as low as Rs 35. they decided on their marketing strategy and pricing. 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. Therefore. the factor of 49 . / DISTRIBUTION Services are generally created and delivered to the buyer at the same time. Hence. the occupancy rates as low as 35% reaches PVR’s break-even points. viewing etc in PLACE the sum. even though the government in the past regulated it. and still has a very well planned market position. This has been done to mainly attract the youth and to keep the concept of movie going still affordable at one of its chains. PVR Priya has a slightly different pricing system. The pricing at PVR Europa is Rs 160 and a Gold Class ticket is charged at Rs. 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. 750. Its premium positioning affects the customers perceptual positioning. In case of PVR. The movie theatres market is a Free Market. The high pricing however has not led to any change in the footfalls that PVR gets. Also. Therefore. therefore creation of time and place utilities is a vital function in services marketing. Irrespective of middlemen or direct sales channel. keeping the target market in mind.PVR when started off had a huge advantage of being the only one of its kind in Delhi to begin with. PVR had. environment. which varies from Rs 45 to Rs 150 for different slabs of consumers. as they did not hesitate to pay the sum for the new concept. Prices that had originally started from Rs 125 (for evening shows) and Rs 90 (for morning shows and weekday plans) have increased to a high of Rs 150 and the lowest is Rs 100.

honesty and sincerity to win the country. even though they indulge in ticket sales online and via telebooking. Wedding Planner . Spy Kids 2 . They do not follow any franchisee outlets. it is very important to sell the service in the best possible way. The only intermediary involved for procuring movies are Indian as well as international movie distributors. PVRs usually open at an eventful yet untapped location. By virtue of its strong brand equity and partnerships with major independent Hollywood studios like Miramax. as all PVR Cinema Halls are stationed at good locations in the city. Choclat . that are not represented PROMOTION in India through their own offices. the company buyers’ confidence in sellers’ abilities to deliver the service efficiently. Therefore. PVR has managed to procure Promotion is a very vital part of the marketing mix especially in the case of and distribute titles to the have belief services. Usually the objective of promoting a service may With the advent of the multiplex revolution be to create a brand image. To the sees a great opportunity to fill up these upcoming multiplex screens with 50 Hollywood titles. by way of whom they acquire the movies. in the service.location keeping in view the potential markets is the most significant in channel selection and distribution. as their service is sold solely at their chains. Chicago . which gathers a large number of footfalls for them every day. Makdee etc. The customer needs intrust orcountry. followed by which (as we saw in case of Anupam PVR Saket) other retail chains get opened around it as well. as he has to pay for it pre-experience. PVR Pictures. The company has successfully distributed major Hollywood titles like Rush Hour 2 . Their places are always well situated and are well linked. The issue of location here plays a very important role. PVR does not have any other channel of distribution. establish a personal relationship with the client across and to create an impression of competence. Distribution of Movies The Company has also recently forayed into the Distribution of Hollywood film titles in the country through its 100% subsidiary. Newline Cinemas etc. .

the youth. as it is usually not possible to use the conventional promotion tools like advertising. 51 .promote these. Oscar and-win contests and give out free tickets to the winners. Promotion activities like community relations. media blitz. viewing as well as PVR as a strong and successful brand. as they are capable of influencing market access. New Years Eve. banners etc help promote the concept of movie includingone relates to the film King Kong. corporate identity programs have relevance. unions and interest groups are important. PVR a lot of commercial shooting / media coverage via programmes etc which also has a host big online promotional Premiers of promotes it as a brand in aof way. the marketer generally employs indirect selling techniques. PVR attracts Movies Week etc.e. The whole PVR banner and its exterior environment latest movie hoardings. they usually have contests pertaining to latest festivals collaboration with cellular services like Airtel have SMSThey are also inlike Valentines Day. Any new developments are communicated to the audience via press releases. Hence there is a strong element of PR involved. Organizing Star Events oncontests associated movies like ‘Kuch Kuch Hota Hai’ helps PVR relate better with its target with movies The audience i. Also. Apart from that. 3rd parties like government. PVR as a brand indulges into print advertisements on every Friday giving out the latest movie schedules. event management.

bedazzling the audiences on 21st N ov'05. along with others as PVR Gurgaon geared up to host and experience the amalgamation of French movies with the multiplex magic. They also host numerous fun events for children while screening animations etc. A funfilled afternoon was organised at PVR Saket on 3rd Nov'05 during the show of animated movie ‘Hanuman’. Celebrities were invited with their kids.Katrina Kaif and Nandita Das lit the star studded opening ceremony. Naraina. Given below are a few such recent promotions: The star cast of Akbar Khan's resplendent 'Taj Mahal' visited PVR EDM. PVR organized a rendevous with French Cinema from 21st-27th October 2005. The glitterati from the film fraternity including Salman Khan. 52 .PVR also hosts premiere shows with leading movie stars visiting the various PVR cinemas. Vikaspuri and Saket.

on 22nd September '05. motivating. CUSTOMERSCelina Bijli. wife of Mr. The event was held in alliance with Cancer Patients Aid Association (CPAA). running on Radio City for two weeks now. a employeespioneer in multiplex development and the largest cinema Measure & exhibition company in India.It also organizes socially responsive events. PVR Plaza celebrated the Rose Day with cancer afflicted patients. Ajjay Bijli-MD CUSTOMERS PVR Cinemas. Anita Kaul Basu and Shivani Wazir Pasreecha and Mrs. Reward Offer a vision and Stress team playCity 91 FM. Other promotions: Attracting.000Compete in with talent perform Leverage freedom Radio City 91 FM listeners responding to the Know the customer factor Challenge. dares listeners to send in entries on the wackiest thing they would do to win a car (Maruti Alto).Prepare toover 5. developing. The PVR City 53 Challenge contest. . and OTHER EMPLOYEES. were present to greet the children and grace the occasion." Service must be fully developed and internally PEOPLE accepted before its launched. It organized a movie screening for the children of ‘Kutumb Foundation’ on children’s day. Manpreet Brar. Celebrities like Sushma Seth. retaining This was the challenge thrown at Delhites by PVR Cinemas. The response was Radio overwhelming.

subject to availability. • Gives 10 national holidays to employees • Makes all employees train at different levels from time to time • Teaches employees to be helpful. All 54 . drinking on job etc. • All employees are taught to deal with safety problems like accidents. • Given bright blue uniforms – represents PVR. parents. This is done to ensure uniformity of appearance and to project a well kept image. armed robbery etc. spouse etc. fire. customer service skills. telebooking.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.e. • 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. courteous to all patrons and co workers – enthusiasm and cheerful • Report customer grievances to managers • Strict on rules on no smoking. This has been done to encourage movie going among employees as well as customers. • Not allowed to make a gesture to ask for any sort of a tip / gift from customers. • Special well kept rooms for the employees • Lastly. sales enquiries. • Job performance evaluation at the completion of first 90 days of employment. • Certified first aid course given to all employees • All trainees are made to train at all departments like ticket sales. computer ticketing. it is made sure that all employees represent PVR in the best way possible and sell it as a strong and well-established brand. credit card sales etc. polite. bomb threat. They are evaluated once a year on their anniversary of date of joining by individual superiors and records regarding employees’ progress are evaluated. cash handling sales. • Tickets to employees are given for: o 1+1 oneself and employees guest o 2 for immediate family i.

PVR created a rememberance for children from PVR's Housekeeping Attendants. programming. The nature of all employees is very friendly.employees are given full details on what they are representing and informed all about PVR to make them a part of the family. the employees are immediately directed to report the same to their managers. operations. At the cinema level the company has a strong team at each of its cinemas. with the movie IQBAL. electricians. soothing. Management Team The company has a dedicated management team at the corporate level which looks after each area of its business i. Projectionists. projects and finance. He has a team of 50-60 employees at each cinema. For the customers’ convenience. invited specially by PVR. helpful. informed. cheerful 55 . The company has had a good track record of being able to attract top class management talent. In case of any customer complaints. The total employee strength across all cinemas is about 300 employees. to celebrate children's day. business development. it is ensured by the organisation that there are no loopholes.The children from the NGO "Kutumb Foundation" also were an intrinsic part of the event. It has about 30 employees at the corporate level. reliable. marketing & event management.e. ably headed by a Cinema General Manager. • On the occasion of Children's Day 2005.

labels. On basis of these. PHYSICAL ENVIRONMENT Atmosphere – helps to shape opinions. he forms his opinion as they help us to tangibalise the service. colours of interiors.Though customers cannot see a service. tickets. material etc) Functional dimensions of design in terms of layout. Therefore. PHYSICAL EVIDENCE employees. facilities. layout. objectives. the audience can easily and can definitely see various relate and clues of tangible communicate the service offer like with them. . The building. Therefore. other customers. Air quality unified corporate image /Appearanc colour e. logo of the SOCIAL AMBIENT FACTORS FACTORS organisation etc help to formulate a good Aesthetics Architecture. but they youth-like. Quality of DESIGN FACTORS scent Degree of circulation scheme. it is essential to manage physical evidence.identity. communication. comfort etc Beheviour and number of service personnel Quality & quantity of other customers 56 . price etc.

At PVR. auditorium. employees Therefore. are lively. parking offices. ambience etc are all included here. etc all corridors. environment coordinated and Attention to detail and stress on high quality cinema viewing experience is hygienically maintained. an avant-garde lobby with studio effect interiors. but the employees as well. bars. candy PVR conference rooms. it is equally ultimate movie edge screens and digital sound will contribute in creating theimportant to keep going experience. movie schedules. stairs. fruit juices and Mineral water. as it is important to appeal to existing and even flexibility and ultimate comfort to guests. candy bars. deign of PVR building. corridors. The interior and exterior of the premises is such so as to project a hygienic Exterior – the movie hoardings. color coordination and combination (blue in case of PVR). deign factors. and is maintained Plush. banner.happy. 57 . in the The multiplex haseven the employee’s workplaces Station premises concession counters which offer customers a wide selection of the traditional are coordinated movie going fare of sweet and salted popcorn. Edge to customers. computerized service. contribute to the externalprojector room. walls. to the potential Convenient cup holders have also been installed on every armrest. on the contrary are visual stimuli and social factors relate to interactive environment. foyers. wash hygienic wash rooms. sound and visual equipment. design ofthehall. as with the whole hall’s ambience and well as candy.Ambient factors relate to background condition. The service factor has an impact on not only the customers. staircases. offices. hotdogs and soft drinks. ergonomically designed seats have been installed to provide excellently. booking glass entrance. basement area – all rooms. The administration and well-maintained image at all times. Interior – Seats. evident from the unique seating arrangement that ensures unobstructed Both the external and internal ambience is very important viewing from anywhere in the auditorium. nachos.

Gurgaon 7 screen megaplex is equipped with the 58 latest THX approved sound system for the real life sound effects and the state of the art Xenon based projection technology. the PVR was the first to install surround sound and Dolby in Delhi.Peripheral – possessed as a part of service purchased e. and the first to offer cinema tickets on Internet with online payment gateway for payment. e. The company had a SERVICE BLUEPRINTING 41 Crores in 2001-02.g.g. The It was the first cinema company to introduce experience of the movie computerized ticketing through use of international box office software in its cinemas. first cinema to accept credit cards in India against tickets. A central aspect of service blueprinting is to distinguish between what the customer experiences front stage and the activities of employees and support process backstage. which is turnover of Rs expected a complex task that can Rs Service design isto rise to aboutbenefit from a more sophisticated version of flowcharting known as blueprinting. 60 Crores in 2002-03. . and with the growth Developing a service blueprint requires identifying all the key activities envisaged. Ticket. popcorn PROCESS Core – Those that cannot be possessed. next these activities. where the customer cannot see them. the turnover in the involved in service delivery and production and specifying the linkages between 3 years is expected to be over Rs 250 Crores. Below the line of visibility. 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.

To illustrate blueprinting of high contact. process. people processing pvr service.blueprint identifies key actions to ensure that each front stage step is performed in a manner that meets or exceeds those expectations. Blueprint of PVR is divided into three “acts” representing activities that take place before the core product (movie) is encountered. activities after core product is encountered. delivery of core product. the possibility of delays between specific actions. customer movie service with interactions. there is also diminishing service quality. we examine the experience of watchinginformation enhances its core operational variety of other supplementary services. they can The key components that we will include in pvr experience blueprint: facilitate the integration of marketing. a movie in pvr that technology. Blueprinting the PVR experience Because blueprints show the inter relationships between employee roles. requiring the customer to wait. Because service delivery takes place over time. operations. 59 . The good movie experience ismarked by business can go most serious fail points. Excessive waits will annoy customers. going a circle. and small F inwrongare those that will result in failure to access or enjoy the core product. Service blueprints clarify the interactions between customers and employees and how these are supported by additional activities and system backstage. and 1 Script for each front stage activity human resource 2 Physical evidence for front stage activities 3 Line of interactionwithin a firm management 4 Front stage actions by customer-contact personnel 5 Line of visibility 6 Backstage actions also gives managers Blueprinting by customer contact personnel 7 Identifying failure points the opportunity to identify potential fail Identifyingin the process that pose a significant risk of things failure Running a a complex pointsand muchpoints –wrong. A W within a triangle identifies common locations for such waits.

As the customer they came for. Here 60 backstage activities plays really important role like to keep check on availability of food etc and if go to washroom then hygiene is the most important dimension. with almost each involving an interactionfinally about By the In this act. Act 3 should be short. seating. . ACT 2: Delivery of core how easy it The act concludes with customer entering the respective auditorium and being seated. they have been exposed to several the core product supplementary services. The core service has now been dimension is not only quality happily moving out delivered. They have also seen sizable cast of characters. Also interval time of the movie is important time period to provide service. including booking. eating counter. including movie. These six steps constitute our customer’s initial experience of pvr. So if they go to eat then The movie may be over but much still is taking place both front stage and most important backstage like getting ready for next show. If tickets are booked according to first two procedures then impression is created on the evidence of respondent’s voice. enters the auditorium it’s important how the employee interacts and guides the way to the customer’s respective seats. speed of response. The action in each of remaining scenes should availability. and we will assume that our customers are of food andof drink. and style of the conversation and if booked online then impression is made by the outlook of website andproduct is to book a ticket online. pvr. our customers are with an employee. Because generally during interval time people either go out to eat something ACT 3: or goes to washroom or both. that is to watch a contact personnel and many other customers.either by arriving at pvr in person or on telephone with an unseen employee. Also tickets can be booked online called as arm’s length interaction. to experience time customers reach the auditorium.The stage or service escape includes both interior and exterior of PVR ACT 1: Before the core product is encountered In this particular act. Light and sound effects of theater are one of the most important aspects of good movie experience. the first act begins with making ticket booking or reservation. pricing but also how promptly it is served and style of service.

61 . and pleasantly with no shocking surprises in the end.move smoothly. quickly.

62 .

World cup semifor eg. We as a group also feel that introduction of a food court that has a variety of offerings. for instance be tapped. Most people feel that a lesser price should be charged as sitting too close to the screen is not as good an superior brand image.improve the movie going experience as people would spend RECOMMENDATIONS greater amount of time in the theatre and the food court could work as an Technological Innovation Expanding reach… ancillary to the WhenaPVR came into being itand running in the secondthe Once theatre.. A lot of audiences that were interviewed feel that the leg space in between the rows is less and it makes the audience uncomfortable after sometime. This would be an instant hit even at very high prices charged. ForThe growing popularity of soccer and other sports can also finals/finals etc. Such Many of the audiences feel that some of the services inside do not command without promotions could happen once or twice a month the prices that is charged for them.. Also the prices charged at the food and beverage counter are way above the MRP. Like the IMAX theatre that prices marginally for one show a day. experience as sitting in one of the back rows. which we feel is an undue premium that is being charged. even the first two rows in the diluting the theatre command a price of Rs. PVR could capitalize the same by screening ‘hot’ matches live eg. example. To add on to the excitementattracting the vast price sensitive student could couple this with cricket contests and could help in they with autographs of eminent sportspersons. movie is past its prime was at the forefront of or technology third week involved in are low. PVR could do promotional campaigns where sales the Movie business but now much more has beenreducein this and done the field and PVR needs to keep up. Special India Pakistan match. This would encourage Adlabs has to more people Riding high on sports… should also foray into newthose that are introduced. the PVR experience. not just snacks but wholesome meals as well would greatly 64 63 . promotional campaigns for students prices. 150/-. give prizes like paraphernalia match the price charged… Once inside. A crucial entertainment business.Service must audience. especially technological experience PVR advances by the inhibited in high Cricket is an obsession in India.

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