Beruflich Dokumente
Kultur Dokumente
ON
SUBMITTED BY:
SATISH SINGH
)
SESSION: 2007-2010
1
ACKNOWLEDGEMENT
The present work is an effort to throw some light on “PVR Cinemas: Marketing
Strategy” . The work would not have been possible to come to the present shape without
With deep sense of gratitude I acknowledge the encouragement and guidance received
thesis.
SATISH SINGH
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CHAPTERS:
I. Acknowledgement………………………………………………..2
X. Recommendations…………………………………………….61
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ENTERTAINMENT INDUSTRY
Over the last decade, India has registered the fastest growth among major
democracies and is now the fourth largest economy in terms of ‘‘purchasing
power parity’’.
Over the years, spending power has been steadily increasing in India. On an
average, 30-40 million people are joining the middle class every year. The
consumption spending is rising due to increasing disposable incomes on
account of sustained growth in income levels and reduction in personal
income tax over the last decade.
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Indian Film and Exhibition Industry Overview
The Indian film industry is the largest film industry in the world in terms of
the number of films produced and admissions each year.
The Indian film industry revenue for 2004 was estimated at Rs. 59 billion
(US$1.3 billion), which was less than 1% of global film industry revenue
and a fraction of the U.S. film industry revenue, which was US$9.49 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.
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Although over 90 years old, the Indian film industry was only accorded the
status of an industry in 2000. Consequently, it is only during the last five
years that the Indian film industry has been able to attract financing from
banks, financial institutions, private equity investors and corporations. Prior
to 2000, the industry was almost solely reliant on private and largely
individual financing. Although corporatisation of the film industry has
started, the film industry is currently largely unorganized and fragmented.
Going to the cinema is one of the most popular entertainment options in
India. In 2004, the total admissions in cinemas in India were 3,100 million.
The second largest number of admissions is in the United States, which had
1,500 million admissions in 2004.
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The film industry comprises three sub sectors:
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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.
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• 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
complex with three screens or more. As of March 2005, there were
approximately 12,000 cinemas in India of which 73 were multiplexes
with a total of 276 screens.
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Concentration of Cinemas in Southern India
Southern India accounts for a majority of the cinemas in India. Andhra
Pradesh has the most number of cinemas in India followed by Tamil Nadu,
Kerala and Karnataka. Whilst Southern India accounts for the majority of all
cinemas in India, as of March 31, 2005, only five out of 73 multiplex
cinemas in India were in Southern India.
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Indian Film Industry
Players Production Distribution Exhibition
Zee Telefilms a a a
Adlabs Films a a a
AVM Productions a a a
Mukta Arts a a X
Rajshri Productions a a X
Shringar Group X a a
PVR Cinemas X a a
Pritish Nandy a a X
Communications
a Present
July 2005
X Not present
PEST ANALYSIS
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Economic
The entertainment industry is expected to grow faster than GDP growth and
consequently more spend is expected on leisure and entertainment.
The film segment will ride on the growth of multiplexes and digital
distribution formats. 18% year-on-year growth is expected in this segment.
There are 73 multiplexes in India, with 276 screens and about 89,470 seats.
The numbers are expected to increase to 135 multiplexes with more than
160,000 seats by the end of 2006.
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From 1999 to 2003, the average Indian household increased its spending on
movies and theatre as a percentage of its disposable income from 1% to
4.6%.
Social
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entertainment and watching a movie for leisure. The movie experience goes
much beyond just watching a film. The encouraging growth in the number of
multiplexes is making the movie goers, especially in urban India, experience
a new way of enjoying movies.
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Political
The year 2004 also witnessed a change in the political scenario of the
country with a positive impact on the regulatory scenario. A new set of
policy makers are looking at this segment with a fresh perspective, which is
a positive sign. On the other hand this does give rise to delayed policy
decisions, a fact not favoured by all.
To boost the sector, the government has opened large parts of the sector to
foreign direct investment (FDI). It allows 100 per cent FDI on automatic
basis in the film industry with no entry level pre-conditions.
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converted into Multiplexes and new Multiplexes being established as part of
shopping complexes (or malls). State entertainment taxes in India are among
the highest in Asia. This has resulted in pressure on the profitability for a
number of players in the exhibition business. As a result, exhibitors
(especially the single screen owners) have not been able to maintain and/or
upgrade their cinemas. A worsening quality of cinemas resulted in a lower
number of patrons, which put a further strain on profitability. The
entertainment tax percentage in certain states is set forth below:
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with certain conditions specified by the relevant state. A synopsis of the key
elements of the entertainment tax exemptions which may be available in the
following states is given below:
Technological
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percentage of the average ticket price in India, distributors have adopted a
policy of releasing a limited number of prints in each territory and rotating
them in the territory, starting with A-grade cinemas in A-class centers. The
bigger movies are released with 300 – 400 prints to satisfy a potential market
of 12,000 cinemas. The practice of rotating prints and the resultant delay of
the release of films in B and C-class centers create three major problems for
film exhibitors in B and C-class centers:
• Pirated DVD/VCD copies of the film are generally available by the time
the film is released in B and C class centers, which reduces demand;
• If the film was not a hit on its initial release in the A-class centers it is
unlikely to do well on its delayed release; and
• The quality of the celluloid film print is negatively affected each time it is
played, so poor picture quality is also an issue - often the dark and scratchy
print is hardly visible on the screen.
The above factors result in the box office potential of movies not being
realized. Many cinemas in B and C class centers operate on a 7% to 8%
occupancy ratio.
To counter this issue of low first instance release, digital cinemas are being
opened in B and C-class centres in India and movies are being released in
those cinemas at the same time as movies are released in the A-class
centers. Digital copies of films cost significantly less than film copies
(approximately Rs. 3,000 for digital compared with Rs. 70,000 for film) and
the cost of digital projection equipment being used in India is also
significantly less than that of film projection equipment (approximately Rs.
800,000 for digital compared with Rs. 1.5 million for film). The significant
reduction in the cost of digital cinema compared with celluloid film
makes an India-wide simultaneous release of a movie economic. As of
March 2005, 100 digital cinemas had been opened in India, of which an
estimated 65 were in operation.
As of March 2005, 100 digital cinemas had been opened in India, of which
an estimated 65 were in operation. Digital technology helps overcome the
problems faced by B and C-grade cinemas. First, digitalized motion pictures
are not required to be transmitted through physical media. This means
digitalized motion pictures can be distributed to more B and C-grade
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cinemas within the first weeks of their release without incurring additional
costs to produce additional prints. Secondly, digitalized motion pictures
maintain consistent and identical picture quality that is not compromised by
use, time, and transmission. Thirdly, reducing the time between the release
of a motion picture and its screening in multiple cinemas helps take
advantage of the heightened demands of cinema patrons during the initial
five to eight weeks of a motion picture's release. This helps to combat the
market for pirated motion pictures and helps increase attendance rates at B
and C-grade cinemas.
Implementing digital technology in cinemas in India should expand the
market for B-grade and C-grade cinema owners and operators and thereby
increase their profitability through:
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ABOUT THE COMPANY
Priya Exhibitors (p) ltd is a part of the diversified Bijili Group, which has
interests in transport, finance and construction sectors all over India. 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. 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 “.
PVR Cinemas are the leading cinemas in the country with an emphasis on
design, technology and service. Over the last three years, PVR has
established itself as a very strong brand associated with movies, quality
exhibition and youth-targeted promotions.
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The company was conceived as a Joint Venture between the Bijli family,
headed by Mr. Ajjay Bijli as Indian Promoters and Village Roadshow
Limited of Australia, one of the largest multiplex operators in the world with
more than 1500 screens under operation.
PVR IN DELHI
The Cinema can boast of the highest box office collections in India for five
consecutive years since its opening. Located around the Cinema in the same
complex are a number of up-market restaurants, pubs and fast-food eateries
that make it a popular youth hangout place and indeed an entertainment
experience for the entire family.
PVR Priya, a 25-year-old cinema still considered the best
Cineplex in Delhi, was completely renovated and brought into
the fold of PVR in January 2000. PVR Priya boasts of the
highest box office collections in the city of Delhi after PVR
Saket. It also has the distinction of having the widest screen in India.
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of 300 seats, the all new single screen auditorium has been renovated and
refurbished to bring back its former glory. The cinema, unique in its nature,
combines the look and feel of the 50s with the state-of-the-art cinema
viewing technologies of today.
The most recent addition to the chain is PVR EDM, this three-screen
multiplex, located in the popular East Delhi Mall, is equipped with the state-
of-the-art technology and is one of its' kind in the vicinity.
PVR IN GURGAON
PVR IN FARIDABAD
In May 2004, the company inaugurated its sixth multiplex, PVR Faridabad.
Located at the popular Ansal Crown Plaza in
Faridabad, this two-screen multiplex has a total
seating capacity of 522 seats. It is the first of its
kind in Faridabad.
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PVR IN BANGALORE
PVR FIRSTS
PVR has also ventured into the business of film distribution and set up PVR
Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures specialises in
acquisition and local distribution of films.
ACCOLADES
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Ajjay Bijli, Managing Director, PVR Limited, was conferred ‘The Theatre
World Newsmaker of the Year Award for 2003'. 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 Gurgaon was nominated for an award in the “Best Retail Environment”
category at the “Annual Design Week” awards.
Ajjay Bijli was also honoured with a special award at CineAsia 2004 for his
significant contribution to the multiplex industry of India. For the first time,
CineAsia honoured an Indian exhibitor. He has also been chosen as
Signature Youth Icon for the year 2005.
MISSION
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PVR AS A BRAND
BU S IN E S S M OD E L
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Minimizing real estate risk and Maximizing services
Village Road show’s inability to support the growth plans of PVR, the
Indian promoters offered to buy out the Village stake and the joint venture
was mutually decided to be terminated in June 2002. However, though
Village Road show exited as a joint venture partner, 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.
During the 5 years of joint venture with Village, 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.
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SWOT ANALYSIS
STRENGHTS
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THREAT OF COMPETITORS
PVR Cinema currently faces competition from other companies in the Indian
film exhibition sector. Some of their competitors have greater financial
resources than them and therefore they may be in a better position than PVR
to invest in Multiplex Cinema projects or to sustain losses from such
developments in the start-up stage. In the future, they may also face
competition from global entertainment companies if and when such
companies make their foray into the Indian exhibition sector.
There are currently seven major competitors in the film exhibition industry:
PVR Cinemas; Inox Leisure Limited; Adlabs Films Limited; Shrinagar
Cinemas Limited; E City Entertainment; Wave Cinemas; and DT Cinemas.
The tables below show the number of screens operated by each of those
companies and the number of cinemas operated by each of those companies.
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Major Competitors
• DT CINEMAS
The DLF group, one of the largest real estate co’s with
a turnover of Rs.1000 crores. DT cinemas are set with
its first multiplex at the DLF city center in Gurgaon
started on 7 mar 2003.
Has imported state of art projection systems in the world Offers telephone,
net and SMS booking home delivery facility 2 Gurgaon, Delhi and other
NCR regions.
DT Cinemas has also tied up with Wow, a telemarketing outfit for phone
bookings and almost 5 per cent of their total bookings come through the
phone.
• SATYAM CINEPLEXES
Satyam CEO Deven Chachra: ‘‘We plan to develop a The group currently
owns 3 prime sites in New Delhi namely Janak Place, Patel Nagar and
Nehru Place with many more prime sites under negotiation. The group has a
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plan to add at least 2-3 sites every year on a rolling programme. By March
2004 Satyam will be running 16 screens at 4 sites with a total of more than
national chain of multiplexes. We will develop properties in Mumbai and
Pune in the next 18-24 months. Bangalore and Hyderabad will be covered in
2005. Initially, our focus would be to consolidate in Delhi, Chandigarh and
Uttar Pradesh to leverage Satyam’s distribution edge.’’
The new expansion project follows from the finalizing of the Rs 82-crore
project, which includes revamp of an existing cinema hall (already
operational) in Delhi, and development of two more multiplexes in the
Capital.
In total Satyam has three cineplexes in Patel Nagar, Janak Place and Nehru
Place, in Delhi
PROMOTIONS
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Café Coffee Day, a leading national retail chain of cafés, as part of its 2nd
anniversary celebrations in New Delhi kicked off a car grand rally in
association with Satyam Cineplex and others. The rally ended at 11am at
Satyam Cineplex Café where the prize distribution was held.
• 3C’s
3C’s six food retailing brands (roped in through strategic alliance) in the
Food Court are: McDonalds, Barista, Chopsticks Express, Diva Cafe, Tikk-
A-Wrap (London) and Dosa Express (Sri Lanka).
The Group now plans to set up more such cineplexes cum food courts at
Ludhiana, Jalandar, Amritsar and Chandigarh over the next 2 years.
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• WAVE CINEMAS
Wave is located at – KAUSHAMBI (U.P.) East End Mall and NOIDA (U.P.)
Sec-18 Center Stage Mall, known as Wave Shipra
For KAUSHAMBI weekday ticket costs Rs.100 and weekend costs Rs.120
For NOIDA weekday ticket costs Rs.120 and weekend costs Rs.140
KAUSHAMBI wave plays only Hindi movies, whereas the one in NOIDA
plays all Hindi and English movies. The two wave cinemas have 4 screens
each with a Seating capacity of 250 seats per screen; hence at any point of
time 2000 people can watch the movie.
The seats are very comfortable and have a larger leg space than any other
cinema hall.
Wave Shipra (NOIDA) even has a platinum lounge for which the rate per
seat is Rs. 500, in which eatables and beverages worth Rs. 200 is served free.
There are 34 seats providing this platinum experience. It has seats like any
comfortable sofa at your home. It has a very good ambience attached to it.
THREAT OF SUBSTITUTES
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some of our cinema audiences to these competitors or lose advertising
revenue to them. If they are not able to compete effectively, their business,
results of operations and financial condition could be adversely affected.
Films constitute 28% of the total entertainment industry of Rs. 20000 crores
in India. Television forms a major 65%. Piracy and home-viewing may
reduce the number of cinema patrons. On account of inadequate
enforcement of anti-piracy laws in India, and on account of increasing
homeviewing options, the number of cinema patrons may reduce in the
future, which may have a material adverse effect on the company’s revenues
and results of operations. Television is expected to grow at a faster pace than
cinema.
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But owners are now realising that if done right, a stripped down multiplex
can be set up much cheaper. Typically, fit-out costs (cost of doing up the
interiors) range anywhere between Rs 2 crore to Rs 2.75 crore per screen.
Owners have realized that cutting down on the ‘fancy stuff’ could bring
down costs by half’. DT Cinemas is toying with the idea of setting up low-
cost variants in smaller cities, like Nagpur or Nashik.
SUPPLIER POWER
The cost of exhibition of a film varies across films and cinemas and if PVR is
unable to obtain films on competitive terms its operational results may be
adversely affected.
The film exhibition industry in India relies on distributors to obtain films for
exhibition. For hiring a film, the distributor’s share is normally a percentage
of ticket receipts (net of entertainment taxes) and the applicable percentage
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is negotiated on a film to film basis in respect of movies produced in India
and periodically for film releases by international studios.
PVR has itself diversified into film distribution and hedged this risk partially.
BUYER POWER
PVR was the first to open a multiplex in India. It was one of its kind and due
to lack of similar cineplexes around, PVR had an upper edge as far as buyers
were concerned. It charged a high price and positioned itself as a premium
service.
Though other multiplexes like Satyam, 3 C’s, DT cinemas, Waves etc. have
come up, PVR still enjoys a strong position. It has further strengthened its
premium position by launching luxury cinema at select locations. ‘Europa’
and ‘Gold Class’ experience has complete redefined the movie watching
experience.
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PVR cinemas is trying to penetrate into existing markets. It is also
expanding its reach across new markets. PVR has diversified into ‘film
distribution and set up’ business and came out with their own film magazine.
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Beyond the existing markets, PVR is contemplating implementing new
multiplex projects in Delhi, NCR, Mumbai, Hyderabad, Bangalore and
Indore.
Upcoming locations
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DIVERSIFICATION
PVR has also ventured into the business of film distribution and set up PVR
Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures specialises in
acquisition and local distribution of films. This is a strategic business unit
aimed at solidifying PVR's exhibition growth and strength. To date, PVR
Pictures has successfully released films produced by US-based production
house Miramax such as Chicago . 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'. The new venture, titled ‘PVR/Factory'
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operates under the PVR Pictures entity and has exclusive distribution rights
in Delhi, Uttar Pradesh and Uttranchal.
PVR Cinemas has also come out with a film magazine. PVR Movies First, as
the magazine is called is the latest addition to PVR's big bouquet of
offerings in the movie entertainment business. It is a monthly magazine and
is expected to fulfill the information needs of the die-hard movie fans.
Beginning with New Delhi, the magazine will be available in all multiplexes
and cineplexes operated and managed by PVR across the country. The
editorial content of the magazine is being managed by the India Today
Group, which publishes magazines like Business Today, India Today, India
Today Plus and also the Indian edition of the Cosmopolitan.
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Segmentation, Targeting and Positioning
Segmentation
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Market because they only cater to the premium movie-going
audience i.e. SEC A and SEC B.
PVR Movie Goers are people with high resources and can be classified as
“Experiencers” who seek variety and entertainment. Spend a comparatively
high proportion of income on fashion, entertainment, and socializing.
Usage rate: 1/3 of the population attends the movies one or more times per
month.
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WHAT?
1. What benefits that the customer seeks? – Complete movie-
going experience.
2. Factors influence PVR’s demand? – Price, movie, day, time
of the day, day of the week, month etc.
3. What function can the product perform for the customer? –
Entertainment.
4. What are the important buying criteria? – Price, ambience,
placement, quality service, premium positioning, status
symbol.
5. What risks does the customer perceives – risk of being
overcharged, risk of being in an emergency like fire at the
theater.
HOW?
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Targeting
PVR being the first of its kind has always been a market leader and therefore
its offering to the customer is Innovative.
PVR has premium pricing and they target mainly SEC A and SEC B. PVR
has brought to its customers the experience of Luxury Cinema. PVR uses
the concentrated method as they have target a much focused audience out of
he entire masses.
PVR witnessed tremendous success Europa Lounge in Delhi. PVR
Cinemas has also recently introduced the concept of luxury viewing to
Bangalore. Gold Class Cinemas have been introduced for the first time in
India, are two ultra luxurious exclusive auditoriums, each equipped with
32 plush and fully reclining seats and generous legroom. Patrons can also
enjoy star like treatment at the exclusive Gold Class lounge which provides
an excellent pre cinema experience with scrumptious food and beverages
Positioning
PVR had, and still has a very well planned market position. Its premium
positioning affects the customers perceptual positioning. Therefore, they
decided on their marketing strategy and pricing, keeping the target market in
mind. In case of PVR, they make use of all their tangible elements to prove
to their customers that their movie tickets are worth the price they are
paying. Also, since some of the other movie theatres (which are not
multiplexes) are still offering movies at rates as low as Rs 35, it is the task of
its marketer to ensure that PVR comes across as a superior brand in terms
of cinema viewing as well as the experience. It’s positioning is evident in
its mission statement also which says
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MARKETING MIX – 7 Ps
Luxury cinema
PVR has brought to its customers
the experience of luxury cinema.
After the tremendous success of
Cinema Europa in Delhi, PVR
Cinemas has introduced the concept
of luxury viewing to Bangalore as
well. Gold Class Cinemas have been
introduced for the first time in India,
are two ultra luxurious exclusive
auditoriums, each equipped with 32 plush and fully reclining seats and
generous legroom. Patrons can also enjoy star like treatment at the exclusive
Gold Class lounge which provides an excellent pre cinema experience with
scrumptious food and beverages.
Bulk Bookings
There are special arrangements for bulk bookings (of twenty or more tickets)
done by corporates. Details can be filled online and PVR executives
themselves get in touch with the concerned people.
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E-booking and tele-booking
PVR also provides the factility of e-booking, which was first started by PVR,
it has now been copied by Satyam cineplexes as well. It also offers tele-
booking
Parties at PVR
PVR has also started helping customers in planning birthday/kitty parties at
PVR. They have made PVR a wholesome entertainment experience than just
a movie watching spree.
Movie vouchers
They have also taken out the unique concept of movie vouchers which
people can use as gifts. Many corporates have also started using these as
incentives and rewards for their employees.
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.
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The following options are available in Delhi/NCR
PVR Gurgaon (Cinema Europa) PVR Movie Money Vouchers cost Rs 160/-
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service it provides. There is no flaw in the quality of the service and is
always delivered on time.
Since PVR is a high contact organization, the employees are well trained in
all areas regarding customer interaction and courtesy. PVR movies being a
service, heavily relies on its employees, as they are the only mode of direct
communication made with the customers. They are well trained and are
definitely able to convey the confidence that the brand name represents.
PRICE
To many customers, high price means high quality. Services pricing follows
the price and practices of pricing of goods and therefore are either cost based
or market based. Within these, categories of price may be profit oriented,
government controlled, competition or customer oriented. But the
characteristics of services do influence the pricing and therefore different
methods of pricing are followed in their case.
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PVR when started off had a huge advantage of being the only one of its kind
in Delhi to begin with. Therefore, they could charge a higher amount to its
target audience, as they did not hesitate to pay the sum for the new concept.
This high pricing helped them make maximum gains. Also, PVR had, and
still has a very well planned market position. Its premium positioning affects
the customers perceptual positioning. Therefore, they decided on their
marketing strategy and pricing, keeping the target market in mind. Hence,
we may say that the pricing as well pays a strategic role in their marketing
plans.
In case of PVR, they make use of all their tangible elements to prove to their
customers that their movie tickets are worth the price they are paying. Also,
since some of the other movie theatres (which are not multiplexes) are still
offering movies at rates as low as Rs 35, it is the task of its marketer to
ensure that PVR comes across as a superior brand in terms of cinema
viewing as well as the experience. The movie theatres market is a Free
Market, even though the government in the past regulated it. This allows
PVR as the market leader to set its own prices.
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. The high pricing however has not led to any
change in the footfalls that PVR gets. Even in slighter crowded shows, the
occupancy rates as low as 35% reaches PVR’s break-even points.
PVR Priya has a slightly different pricing system, which varies from Rs 45
to Rs 150 for different slabs of consumers. This has been done to mainly
attract the youth and to keep the concept of movie going still affordable at
one of its chains.
The pricing at PVR Europa is Rs 160 and a Gold Class ticket is charged at
Rs. 750. It offers superior ambience, environment, seating, viewing etc in
the sum.
PLACE / DISTRIBUTION
Services are generally created and delivered to the buyer at the same time,
therefore creation of time and place utilities is a vital function in services
marketing. Irrespective of middlemen or direct sales channel, the factor of
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location keeping in view the potential markets is the most significant in
channel selection and distribution.
The issue of location here plays a very important role, as all PVR Cinema
Halls are stationed at good locations in the city, which gathers a large
number of footfalls for them every day. PVRs usually open at an eventful
yet untapped location, followed by which (as we saw in case of Anupam
PVR Saket) other retail chains get opened around it as well. Their places are
always well situated and are well linked. PVR does not have any other
channel of distribution, as their service is sold solely at their chains. They do
not follow any franchisee outlets, even though they indulge in ticket sales
online and via telebooking. The only intermediary involved for procuring
movies are Indian as well as international movie distributors, by way of
whom they acquire the movies.
Distribution of Movies
The Company has also recently forayed into the Distribution of Hollywood
film titles in the country through its 100% subsidiary, PVR Pictures. By
virtue of its strong brand equity and partnerships with major independent
Hollywood studios like Miramax, Newline Cinemas etc. that are not
represented in India through their own offices, PVR has managed to procure
and distribute titles in the country.
With the advent of the multiplex revolution across the country, the company
sees a great opportunity to fill up these upcoming multiplex screens with
Hollywood titles. The company has successfully distributed major
Hollywood titles like Rush Hour 2 , Wedding Planner , Chicago , Choclat ,
Spy Kids 2 , Makdee etc.
PROMOTION
Promotion is a very vital part of the marketing mix especially in the case of
services. The customer needs to trust or have belief in the service, as he has
to pay for it pre-experience. Therefore, it is very important to sell the service
in the best possible way. Usually the objective of promoting a service may
be to create a brand image, establish a personal relationship with the client
and to create an impression of competence, honesty and sincerity to win the
buyers’ confidence in sellers’ abilities to deliver the service efficiently. To
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promote these, the marketer generally employs indirect selling techniques, as
it is usually not possible to use the conventional promotion tools like
advertising. Promotion activities like community relations, event
management, media blitz, corporate identity programs have relevance. 3rd
parties like government, unions and interest groups are important, as they are
capable of influencing market access.
They are also in collaboration with cellular services like Airtel have SMS-
and-win contests and give out free tickets to the winners. Also, PVR attracts
a lot of commercial shooting / media coverage via programmes etc which
promotes it as a brand in a big way. Organizing Star Events on Premiers of
movies like ‘Kuch Kuch Hota Hai’ helps PVR relate better with its target
audience i.e. the youth. The whole PVR banner and its exterior environment
including movie hoardings, banners etc help promote the concept of movie
viewing as well as PVR as a strong and successful brand.
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PVR also hosts premiere shows with leading movie stars visiting the various
PVR cinemas. They also host numerous fun events for children while
screening animations etc. Given below are a few such recent promotions:
The star cast of Akbar Khan's resplendent 'Taj Mahal' visited PVR EDM,
Naraina, Vikaspuri and Saket, bedazzling the audiences on 21st N ov'05.
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.
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It also organizes socially responsive events. It organized a movie screening
for the children of ‘Kutumb Foundation’ on children’s day. PVR Plaza
celebrated the Rose Day with cancer afflicted patients, on 22nd September
'05. The event was held in alliance with Cancer Patients Aid Association
(CPAA). Celebrities like Sushma Seth, Manpreet Brar, Anita Kaul Basu and
Shivani Wazir Pasreecha and Mrs. Celina Bijli, wife of Mr. Ajjay Bijli-MD
PVR Cinemas, were present to greet the children and grace the occasion."
Other promotions:
In collaboration with MSN, PVR had a contest for ‘Bend It Like Beckham’
and gave out 2 free tickets to winners for an entire week.
PEOPLE
EMPLOYEES, CUSTOMERS and OTHER CUSTOMERS
Service must be fully developed and internally accepted before its launched.
Measure &
Reward Offer a vision
Stress team play
Compete in
Prepare to talent
Leverage freedom perform Know the customer
factor
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PVR indulges in the following for their EMPLOYEES:
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employees are given full details on what they are representing and
informed all about PVR to make them a part of the family.
Management Team
The company has a dedicated management team at the corporate level which
looks after each area of its business i.e. programming, marketing & event
management, operations, business development, projects and finance. It has
about 30 employees at the corporate level.
At the cinema level the company has a strong team at each of its cinemas,
ably headed by a Cinema General Manager. He has a team of 50-60
employees at each cinema. The total employee strength across all cinemas is
about 300 employees.
The company has had a good track record of being able to attract top class
management talent.
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and youth-like. Therefore, the audience can easily relate and communicate
with them.
PHYSICAL EVIDENCE
Though customers cannot see a service, but they can definitely see various
tangible clues of the service offer like facilities, communication, objectives,
employees, other customers, price etc. On basis of these, he forms his
opinion as they help us to tangibalise the service. . Therefore, it is essential
to manage physical evidence.
PHYSICAL ENVIRONMENT
DESIGN SOCIAL
AMBIENT FACTORS
FACTORS FACTORS
Aesthetics
Air quality Architecture, Appearanc
Quality of colour e,
scent scheme, Beheviour
Degree of material etc) and
circulation Functional number of
dimensions service
of design in personnel
terms of Quality &
layout, quantity of
comfort etc other
customers
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Ambient factors relate to background condition, deign factors, on the
contrary are visual stimuli and social factors relate to interactive
environment. The service factor has an impact on not only the customers,
but the employees as well.
Convenient cup holders have also been installed on every armrest. Edge to
edge screens and digital sound will contribute in creating the ultimate movie
going experience.
The multiplex has an avant-garde lobby with studio effect interiors. Station
concession counters which offer customers a wide selection of the traditional
movie going fare of sweet and salted popcorn, hotdogs and soft drinks, as
well as candy, nachos, fruit juices and Mineral water.
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Peripheral – possessed as a part of service purchased e.g. Ticket, popcorn
Core – Those that cannot be possessed. e.g. The experience of the movie
PROCESS
It was the first cinema company to introduce computerized ticketing through
use of international box office software in its cinemas; first cinema to accept
credit cards in India against tickets; and the first to offer cinema tickets on
Internet with online payment gateway for payment. The company had a
turnover of Rs 41 Crores in 2001-02, which is expected to rise to about Rs
60 Crores in 2002-03, and with the growth envisaged, the turnover in the
next 3 years is expected to be over Rs 250 Crores.
PVR was the first to install surround sound and Dolby in Delhi.
Gurgaon 7 screen megaplex is equipped with the latest THX approved sound
system for the real life sound effects and the state of the art Xenon based
projection technology.
SERVICE BLUEPRINTING
Service design is a complex task that can benefit from a more sophisticated
version of flowcharting known as blueprinting.
Standards can be set for each service activity but should be based on good
understanding of customer expectations. Below the line of visibility, the
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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, delivery of core
product, activities after core product is encountered.
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The stage or service escape includes both interior and exterior of PVR
ACT 1: Before the core product is encountered
In this particular act, the first act begins with making ticket booking or
reservation- 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. If tickets are booked according to first two procedures then
impression is created on the evidence of respondent’s voice, speed of
response, and style of the conversation and if booked online then impression
is made by the outlook of website and how easy it is to book a ticket online.
The act concludes with customer entering the respective auditorium and
being seated. These six steps constitute our customer’s initial experience of
pvr, with almost each involving an interaction with an employee. By the
time customers reach the auditorium; they have been exposed to several
supplementary services, including booking, eating counter, seating. They
have also seen sizable cast of characters, including contact personnel and
many other customers.
In this act, our customers are finally about to experience the core product
they came for, that is to watch a movie. As the customer enters the
auditorium it’s important how the employee interacts and guides the way to
the customer’s respective seats. Light and sound effects of theater are one of
the most important aspects of good movie experience.
Also interval time of the movie is important time period to provide service.
Because generally during interval time people either go out to eat something
or goes to washroom or both. So if they go to eat then most important
dimension is not only quality of food and drink, availability, pricing but also
how promptly it is served and style of service. Here 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.
ACT 3:
The movie may be over but much still is taking place both front stage and
backstage like getting ready for next show. The core service has now been
delivered, and we will assume that our customers are happily moving out of
pvr. Act 3 should be short. The action in each of remaining scenes should
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move smoothly, quickly, and pleasantly with no shocking surprises in the
end.
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RECOMMENDATIONS
Technological Innovation
When PVR came into being it was at the forefront of the technology
involved in the Movie business but now much more has been done in this
field and PVR needs to keep up. Like the IMAX theatre that Adlabs has
introduced, PVR should also foray into new technological advances in the
entertainment business.
Many of the audiences feel that some of the services inside do not command
the prices that is charged for them, example, even the first two rows in the
theatre command a price of Rs. 150/-. Most people feel that a lesser price
should be charged as sitting too close to the screen is not as good an
experience as sitting in one of the back rows.
Also the prices charged at the food and beverage counter are way above the
MRP, which we feel is an undue premium that is being charged.
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.
We as a group also feel that introduction of a food court that has a variety of
offerings, not just snacks but wholesome meals as well would greatly
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improve the movie going experience as people would spend greater amount
of time in the theatre and the food court could work as an ancillary to the
theatre.
Expanding reach…
Once a movie is past its prime and running in the second or third week
where sales are low, PVR could do promotional campaigns and reduce the
prices marginally for one show a day. This would encourage more people to
experience the PVR experience, especially those that are inhibited by high
prices. For eg. Special promotional campaigns for students for instance
could help in attracting the vast price sensitive student audience. Such
promotions could happen once or twice a month without diluting the
superior brand image.
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