BIG CINEMAS: MARKETING RESEARCH

VAIBHAV SANTOSH VILANKAR

DPGD/JA09/0367
SPECIALIZATION: MARKETING

Welingkar Institute of Management Development & Research

December 2010

ACKNOWLEDGEMENT

I am heartily thankful to my Area manager, Mr. Rohan Bhansali, whose encouragement, guidance and support from the initial to the final level enabled me to develop an understanding of my research project report.

Lastly, I offer my regards and blessings to all of those who supported me in any respect during the completion of the project.

Vaibhav Vilankar

Index
Certificate from the guide Introduction History of the company Methodology SWAT analysis of the Big Cinemas Porters Five Forces Model of Competition Threat of competition MARKETING MIX 7 Ps SERVICE PRODUCT/ SERVICE PACKAGE Understanding Big Cinemas as a Service Brand CONCLUSIONS & RECOMMENDATIONS LIMITATIONS Bibliography 4 5 17 34 35 37 49 58 60 61 62

CERTIFICATE FROM THE GUIDE

This is to certify that the Project work titled BIG Cinemas Marketing Research

is a bonafide work carried out by Vaibhav Vilankar (Admission No.) DPGD/JA09/0367

a candidate for the /Post Graduate Diploma examination of the Welingkar Institute of Management

under my guidance and direction.

SIGNATURE OF GUIDE: NAME: Rohan Bhansali DESIGNATION: Area Manager (Operations) ADDRESS : Big Cinemas, 2nd floor Meadows, Sahar Plaza Complex, JB Nagar Andheri. DATE:

PLACE:

INTRODUCTION
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. The Indian Entertainment Industry is expected to significantly benefit from this fast economic growth, as this cyclically sensitive industry grows faster when the economy is expanding. When incomes rise, proportionately more resources get spent on leisure and entertainment than on necessities.

Source: Industry Estimates & PwC Analysis Note: The figures taken above include only the legitimate sales in each segment. Revenues from the gaming and animation and Gaming segment have not been included in the entertainment industry size as these figures have been traditionally been included in the Indian IT and Software Revenue.

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.

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 corporatization 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.

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 Malayalam. Hindi films are 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 distributors in India are small businesses. This has resulted in the film industry being highly fragmented, with each territory having 50-75 distributors, while 810 distributors operate on an all India basis. A distributor generally sells its rights to sub distributors who cover certain sections in a territory Film distribution sector characteristics and trends In the recent past, some of the larger producers have vertically integrated into distribution, especially into overseas markets. A number of new entrants have entered the distribution business, resulting in an increase in acquisition cost for distributors. Distributors are trying to lock in the content at a very early stage by financing film producers. Distributors are playing an increasing role in marketing of films. New films are being released in satellite/ video formats within a shorter period after theatrical release, thereby reducing the window for theatrical exploitation. New films are being released across a larger number of theaters with a large number of prints in order to maximize theatrical revenues in the shortest time period. New distribution formats, like digital distribution 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 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. Indian Film Exhibition Sector The Indian film exhibition sector had revenues of Rs. 34 billion in 2004. Despite the higher number of tickets sold in India, the total reported box office revenue is significantly lower in India compared with the United States. This is primarily due to the fact that ticket prices are much lower in India, with 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.

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. Major Players in Indian Film Industry Players Productio n A Distribution A Exhibition A

Reliance Media Works

Zee Telefilms AVM Productions Mukta Arts Rajshree Productions

A A A A

A A A A

A A X X

Shringar Group PVR Cinemas Pritish Nandy Communications

X X A

A A A

A A X

BACKGROUND

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Economic The Indian Entertainment Industry is one of the fastest growing sectors of the Indian economy riding on the economic growth and rising income levels that India has been experiencing in the past few years. The entertainment industry is expected to grow faster than GDP growth and consequently more spend is expected on leisure and entertainment. 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. In India the multiplex business is modeled to the ones in developed countries. The main revenue stream is box-office collections from movies. Other revenue streams include rent from display systems, restaurant rentals, food and beverage collections, product launch rentals and promotions by companies. In several cases the other revenue streams are often larger than box-office collections, but movies are the main pull of such complexes.

Increase in disposable income in the hands of an ever expanding Indian middle class Multiplex Cinemas generally cater to middle and high income households. The emergence of the Indian middle class with greater earning power and a higher disposable income is one of the key factors that will drive the growth of the Multiplex Cinema segment. The table below shows the growth in the number of middle and high income households in India. Because of Indias status as a good IT hub for outsourcing by U.S. companies, young Indians between 20 to 24 years old, who ordinarily wouldnt be able to find work easily, are finding jobs with call centers straight out of college. Now they have disposable income thats totally discretionary and about 20 to 30% higher than prevailing wages, which they are spending on books, movies, music, cell phones, food and brand-name clothes

From 1999 to 2003, the average Indian household increased its spending on movies and theatre as a percentage of its disposable income from 1% to 4.6%.

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Organized retail boom A growth in consumption levels, changing lifestyles, the availability of quality real estate and significant investments in malls are expected to result in an increase in the size of the organized retail business in India. 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. 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. One of the key elements for the success of a mall is its ability to drive footfalls consistently. Multiplexes are one of the anchor tenants in large format malls, as their presence increases footfalls by approximately 40-50%. The expected organized retail boom should result in a significant increase in the number of Multiplex Cinemas.

Social Movie watching is becoming an experience more than just a casual outing with the family. The lines are blurring between watching a movie for entertainment and watching a movie for leisure. The movie experience goes much beyond just watching a film. The encouraging growth in the number of multiplexes is making the movie goers, especially in urban India, experience a new way of enjoying movies. Higher consumption spending and consequent changes in lifestyle are also spurring the growth of the Indian Entertainment sector. Since the late 90s distribution has become equally as important as production to the Indian movie industry. Multiplexes were the natural choice for distributing movies in large cities. Space was at a premium and several movies were competing for limited number of screens. Multiplexes not only increased the number of available screens, but also provided them with excellent acoustics and enhanced picture display. Increase in Number of High Grade Hindi Films Demand for a particular movie is generally driven by both its critical reviews and word of mouth from patrons. An increase in the average quantity of high grade Hindi films released per week should increase the total demand for movies, as these movies tend to be more popular. As shown in the table below, from 2001 until 2004, there was an increase 48% in the number of releases per week for high grade Hindi films.

Increasing corporatization of the film production sector should result in an increase in the number of high quality films produced, which should increase demand for movies. In an increasingly corporate environment, unviable movies with weak scripts should find it difficult to garner funding. Consequently, although the average number of films produced annually in India is expected to fall from over 900 in 2004 to around 600 by 2010, the quality of the movies produced is expected to increase.

Political

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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 favored by all. Several state governments provided incentives to encourage the growth of multiplexes. A positive concession given to the cinema theatre industry in 2002/03 was the deduction of 50 to 100% of the profit earned by multiplexes that came to them in the next two to five years. The waiver was restricted to multiplexes, which were essentially in metropolitan cities, but the concession has been extended to smaller cities too. To boost the sector, the government has opened large parts of the sector to foreign direct investment (FDI). It allows 100 per cent FDI on automatic basis in the film industry with no entry level pre-conditions. Entertainment tax benefits In the late 1980s various state governments imposed steep increases in entertainment taxes, which lead to a decrease in the profitability of cinemas. This adversely affected investment in cinemas and maintenance standards as cinema owners tried to reduce their costs, which lead to a fall in the ambience of cinemas and a decrease in the quality of audio and visual standards. The fall in cinema standards coupled with the availability of watching movies on videocassette players lead to a decline in cinema patronage. Most cinemas were during that time, and still are, run as small business and these businesses did not have access to capital to improve the cinema ambience and quality to arrest the declining patronage.

Source: Reliance Media works research on tax structure in various states.

In order to encourage investment in the film exhibition sector, many state governments have announced policies offering entertainment tax benefits. This has encouraged the growth of Multiplex Cinemas and also encouraged single-screen theaters to convert into Multiplexes. The quantum of entertainment tax benefit which may be available in each state is different and the

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availability of these exemptions would be dependant on compliance with certain conditions specified by the relevant state. A synopsis of the key elements of the entertainment tax exemptions which may be available in the following states is given below:

Source: Reliance Media works research on tax structure in various states

Technological Film Distribution Holdups

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One of the main features of the Indian film industry that differentiates it from those in western countries is the limited initial release of films. Due to the high print costs for films (approximately Rs. 70,000 per print) as a percentage of the average ticket price in India, distributors have adopted a policy of releasing a limited number of prints in each territory and rotating them in the territory, starting with A-grade cinemas in A-class 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. Impact of Digital Technology on Cinemas in IndiaTo counter this issue of low first instance release, digital cinemas are being opened in B and Cclass centers 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 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: increased number of screens on which newly released movies are shown, without incurring additional production costs;

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 Improved and consistent picture quality without regard to the location of the cinema; and Satisfaction of cinema patrons' demands at the time when the demand for screening of a movie is at its highest, which should reduce the loss of demand caused by the availability of movies on pirated DVDs/VCDs. Challenges Faced by Transition to Digital Cinema in India The digital projection technology currently being used in India (mostly in B-class and C-class 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, where celluloid film is used. In order to have a digital picture quality as good as the current celluloid film quality in A-grade cinemas, as well as to meet Digital Cinema Initiative standards, we need to use at least projectors, which cost between Rs. 4-5 million (US$ 90,000110,000), which is significantly more than the cost of celluloid film projectors. As and when the digital projection technology up-gradation will be required in the A-grade cinemas in India, the issue of financing of such equipment will need to be addressed. In the United States, digital projection equipment is being financed by Hollywood production houses rather than the film exhibitors, as the production houses get substantial savings from not having to produce celluloid prints.

History of the company

Reliance Media Works formerly known as Adlabs Films ltd

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Mr.Manmohan Shetty and Mr.Vasanji Mamania started Adlabs as a partnership firm in 1978 by undertaking processing of advertising films in a laboratory at Dadar. Considering the vast business opportunities in processing documentaries and feature films at the lab, the two partners decided to form a separate private limited company in 1987. In 1989, the Company made a foray into motion picture processing by setting up a film processing lab at Andheri. With an increase in its client base and leading production houses as its customers, the Company set up a film processing laboratory at Film City Complex, Goregaon a state of the art processing facilities and a preview theatre rated at par with the best in the world. At present the Companys film processing operations are carried out here. The Company went for an initial public offering in December 2000 and got listed on the Mumbai Stock Exchange and The National Stock Exchange in January 2001.

Reliance MediaWorks Limited is Indias fastest growing film and entertainment services company and a member of the Reliance Anil Dhirubhai Ambani Group. Reliance MediaWorks operates BIG Cinemas, India's largest cinema chain with over 540 screens spread across India, the United States, Malaysia, Nepal and Netherlands. Reliance MediaWorks currently has a dominant and comprehensive presence in Film Services: Motion Picture Processing and DI; Film Restoration and Image Enhancement; 3D; Digital Mastering: Studios and Equipment rentals; Visual Effects; Animation; TVC Post Production with presence across India, USA, UK and Japan. Reliance MediaWorks television venture, BIG Synergy, is among the top players in the television programming industry

Brand Transition From Adlabs to Big Cinemas.

INDIAS LARGEST CINEMA CHAIN BECOMES BIG CINEMAS Mumbai, 24th October 2008: Adlabs Films Limited, a member of the Reliance Anil Dhirubhai Ambani Group and Indias largest cinema chain announced today the launch of BIG Cinemas with the tagline Ab Bada Mazza Ayega.

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The entire rollout will happen simultaneously on Tuesday, 28th October 2008 across BIG Cinemas 73 properties throughout the country, totaling 186 screens and 71000 seats. On Tuesday, BIG Cinemas guests across the country will see a major transformation in BIG Cinemas signages, collaterals and all promotional material including TV, radio, print, outdoor and online campaigns, reflecting the new brand. Guests can make bookings on the new website www.bigcinemas.com. Over three million visitors are expected to visit a BIG Cinema in the next year and the brand change will be a significant transformation for them. Anil Arjun, Chief Executive Officer Adlabs Films Ltd, Indias largest cinema chain is now clearly reflecting its place as part of BIG, the premier entertainment brand in India. In line with the Reliance ADA Groups philosophy for a single monolithic consumer entertainment brand BIG, India is the first step in our international brand rollout; BIG Cinemas will also be rolled out across over 200 cinemas in US and Malaysia shortly. All future cinemas will also be launched under the BIG Cinemas brand. Tushar Dhingra, Chief Operations Officer BIG Cinemas, commented on the rollout saying, This is the largest consumer brand change in the entertainment domain. We feel that the brands fresh new look will appeal to our wide range of guests from both metros and smaller cities alike. The emphasis is on giving our guests a larger than life or BIG experience when they visit any Big Cinema across the country and to give the brand a more relatable and approachable feel, in line with the strong tradition of thoughtful customer care we have been known for. About Adlabs Films Ltd: (BSE: 532399, NSE: "ADLABSFILM") Adlabs Films Limited (www.adlabsfilms.com), a member of the Reliance Anil Dhirubhai Ambani Group, is Indias fastest growing film and entertainment services company. Adlabs has a dominant and comprehensive presence in Film Services: Motion Picture Processing and DI, Film Restoration, Digital Mastering, Studios and Equipment rentals. Adlabs Films also operates India's largest cinema chain with about 400 screens spread across India, US and Malaysia. It has a significant presence in the film distribution space with a nationwide presence across India as well as offices in London, New York, Los Angeles and Malaysia. Adlabs' television venture, Synergy Adlabs, is among the top players in the television programming industry. About BIG Cinemas BIG Cinemas, a division of Adlabs Films Limited (www.adlabsfilms.com), a member of the Reliance Anil Dhirubhai Ambani Group, is Indias largest cinema chain with about 400 screens spread across India, US and Malaysia. After pioneering the IMAX experience in India, it recently launched 3D and 6D technology and is the only cinema chain to screen films in all three formats. It is also launching the first megaplexes in the country.

Iconic Big Cinemas

IMAX Big Cinemas

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Adlabs Films Limited successfully ventured into film exhibition business with the commissioning of the IMAX Dome theatre which was opened to public on 31 st March 2001.In second phase Screen 2 was opened to public on 26th October 2001.In 3rd phase, finally all the screens were subsequently opened to public Nov15 2001. Adlabs Wadala is a landmark in itself due to Imax Dome Theatre.It houses Indias first and the worlds largest dome screen (12,700 sq.ft). A hemispherical screen that wraps the entire theater, filling entire field of vision giving an incredible feeling of immersion within the movie and motion along with the movie. This IMAX dome is 30 meters wide in diameter making it the largest in the world. Metro Big Cinemas The Art Deco Metro cinema opened in June 1938, primarily to exhibit the MGM movies and gradually became Bollywood's favorite red carpet destination. Over the past seven decades, Metro Cinema has become a landmark on the Mumbai's cityscape and part of city's movie traditions.

BIG Cinemas acquired the theatre in 2005 and refurbished it with state of art facilities and opulent interiors which blend today's audience requirements with the theatre's heritage charm and results have been remarkable.

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Metro BIG Cinemas now houses 6 contemporary screening rooms with a seating capacity for 1491 people including a luxurious Ebony Lounge with recliners, offering moviegoers the finest customer amenities and a dynamic screen presentation, along with a greater choice of films and viewing times. The auditoriums are furnished with wall-to-wall screens, stadium-style seating in plush, high-backed push back sofas and Dolby sound systems. Big Cinemas Odeon Odeon Cinema in Connaught Place in Delhi has seen its fair share of romance, drama and action both onscreen and off screen since it started in 1939. Over the past seven decades, Odeon Cinema has become a landmark on the capitals cityscape and its with fond memories of yesteryears that Delhi movie lovers look at Odeon since it closed down for renovations.

Now known as BIG Cinemas, Odeon is designed as a flagship luxury boutique cinema that is inspired from the pure white ambience at Connaught Place. Housing 2 luxurious screening rooms, it has 592 plush seats including 60 lavishly designed sofas for its guests. Every guest is the star of the show and his journey and experience is uplifted in both ambience and offerings.

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Starting from buying a ticket at the box office, to a glitter carpet-like treatment at the entrance, the glamour factor has been well incorporated. As soon as you open the cinema main door, you are dramatically transported into an inverse aesthetic of the soothing vastness of the white and gold minimalistic interiors of the lobby. The bling factor is carried through the entire space with a hint of olive green in the cozy seating lounges against a background of pure white shimmer drapes. There is an exclusive range of unique food and beverage offerings. Overall an exclusive cinema that promises to be an unforgettable experience.

70 years after its first movie screening, BIG Cinemas Odeon fulfills todays needs with the theatres old world charm.

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R City Big Cinemas BIG Cinemas at R City lets Mumbai's movie lovers experience movies like never before. With 9 screens, 45 shows a day and a total seating capacity of 2109, it provides a variety of in cinema experiences to choose from.

Savor sumptuous delicacies at Cine Diner, the world's first ever cinema-cum-fine dining restaurant. Discover new angles to movie viewing at 180, an exclusive screen with All Luxury Recliner Seating. Relax as you wait for friends at Pause, the private in-cinema lounge. Or let your kids have a blast at Mischief, an exclusive in-cinema play area for kids. India's first megaplex offers you an array of in-cinema experiences that the country has never seen before.

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Premium Offerings
IMAX 3D IMAX at BIG Cinemas, Wadala has redefined the entertainment landscape by providing movie buffs the world's largest digital flat screen right in the heart of Mumbai. With images of unsurpassed size, clarity, and impact, it provides the world's most impressive experience, allowing audiences to feel the on-screen excitement.

This experience is taken a step further with the IMAX Experience in 3D. It is the world's most immersive movie experience, which has entertained and enlightened millions of people worldwide. The IMAX 3D camera is one of the highest resolution image-capturing devices in the world. By simultaneously recording separate left and right-eye images onto two 65mm wide filmstrips - one for each eye - the camera captures spectacular images. This technology promises the most interactive movie experience enabling images to leap off the screen and into the laps of the audience!

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The new IMAX digital flat screen at BIG Cinemas, Wadala opened with the magic of 'Harry Potter and the Half Blood Prince'. IMAX at BIG Cinemas also showcased the highly applauded Academy Award winner Avatar, the full length 3D movie from director James Cameron. With enhanced picture and sound quality, IMAX 3D puts you IN the movie. Cine Diner On Fridays, most cinema halls premiere new movies. We premiere new dishes. If ever you've been torn between visiting a restaurant and going to the movies, you will love Cine Diner at BIG Cinemas, R City. Cine Diner is the world's first of its kind, having a diner within a cinema screen. A whole new concept in movie watching, Cine Diner sieves only the very best of both worlds for you, to create an experience that envelopes the senses. Here, sumptuous delicacies crafted by veteran chefs meet modern day cinema luxuries under one roof for the first time ever, to create a cinematic experience that's guaranteed to have you coming back for seconds.

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180degrees 180 raises the bar on in-cinema comfort. A unique concept, 180 is a screen that's equipped with elegant and comfortable recliner seating at BIG Cinemas R City. It's the ultimate luxury destination for cinema-goers and takes the movie experience to another level.

Discover the nuances to the word comfort with opulent recliner seats that let you tilt your seat all the way back, kick off your shoes and sink into a plush recliner, to create a cinematic experience so comfortable, you'll wish the movie never ends. But that's just the seats. In-cinema services like pillows and blankets provided on demand, personalized seat service and much more await you at 180. Located in a separate alcove within BIG Cinemas, Pause is a private in-cinema lounge exclusively for guests going to Cine Diner and 180. Complete with mood lighting, soft music, a bar serving fresh mock tails plus a live kitchen, Pause is designed to offer our guests a place to sit back, relax and catch up and mingle with friends and family before the show.

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Pause At Pause, you can enjoy a variety of starters and sumptuous finger foods, as well as an equally inviting selection of mock tails and juices as you wait. A welcome break, Pause, ensures that every guest who steps leaves calm, fresh, and rejuvenated, to thoroughly enjoy their movie viewing experience at BIG Cinemas R City.

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Achievements of Big Cinemas!

ADLABS OPERATES 100 SCREENS ACROSS INDIA ~ The 1st multiplex chain to reach the 100 mark milestone ~ Mumbai, 30th July 2007... Adlabs Films Limited, a member of the Reliance Anil Dhirubhai Ambani Group and the leading entertainment conglomerate in the country, today announced that it has reached the significant milestone of operating 100 screens across the country, making Adlabs the largest cinema chain in India. . The 100 screens are spread across 29 properties in 22 cities and will provide a total of approximately 31,000 seats bringing the Adlabs cinema experience to 2 crore patrons this year. These not only include several properties in previously under-served tier II cities, but also cover major film territories. Manmohan Shetty, Chairman and Managing Director - Adlabs Films said, Adlabs Cinemas is fast progressing towards our aim of providing quality film-viewing experience to everyone in the country. In spite of having the biggest film-producing industry and one of the largest filmwatching audiences in the world, India is still vastly under-served in terms of cinema screens. We see immense potential in this.

ADLABS WINS BEST RETAILER IN ENTERTAINMENT CATEGORY AT IMAGES RETAIL AWARDS 2007 Mumbai, 10th September 2007... Adlabs has won the Best Retailer in Entertainment Award at the Images Retail Awards 2007, the culminating event of the India Retail Forum held in Mumbai recently.

The definitive benchmark of excellence in the business of retail from concepts, innovations and designs to consumer recall - the Images Retail Awards felicitates India's top retail companies, professionals and concepts at a time when India is rated as the foremost emerging market for global retailers and the business of retail in India is undergoing dramatic shifts. The selection process follows a nationwide consumer and industry poll and nominations, backed up with performance assessment by an Images Retail Awards team of analysts and jury

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Tushar Dhingra, COO Adlabs Cinemas says, As the largest cinemas chain in India, growing at an incredible speed, its extremely important that we keep in touch with our core consumer through pioneering initiatives like Baby Bliss for young parents and Silver Screen for senior citizens amongst many others and living up to our promise of never a dull moment at an Adlabs Cinema. This Award is an indication that we have been on the right track.

Adlabs Cinemas is the largest cinemas chain in India and presently has 102 screens spread over 30 properties nationwide. It recently became the first cinemas chain in India to cross 100 screens. Last year, Adlabs was also awarded the Retailer of the Year Award in the Entertainment category by the Awards Jury of India Retail Summit 2006 at the Reid & Taylor Awards for Retail Excellence.

ADLABS TO PREMIERE JOURNEY TO THE CENTER OF THE EARTH IN BIG DIGITAL 3D FORMAT ~ Becomes the first cinema chain to show both 3D & 6D formats ~

Mumbai, 11th September 2008: Adlabs, part of the Reliance Anil Dhirubhai Ambani Group and India's leading entertainment conglomerate, announced that it will premiere 3D Hollywood blockbuster Journey to the Center of the Earth in BIG Digital 3D for the first time at Adlabs cinema in Vashi, Navi Mumbai.

Digital 3D technology is a new form of cinema entertainment that allows audiences to experience the latest blockbusters like never before. Hollywood studios are backing the new format with animation hits like Disneys Chicken Little and concert films like Miley Cyrus/Hannah Montana and U2-3D showing in 3D in US and Europe. Adlabs now brings this experience to India with BIG Digital 3D. Adlabs had also pioneered the use of 6D in the first screen of its type in India in Agra earlier this year through a partnership with Israel-based Cinema Park Network. It now becomes the only cinema chain in India to offer both 3D and 6D formats. Patrick von Sychowski, Chief Operating Officer Adlabs Digital Cinema explains the advantages of digital screens over analogue: The BIG Digital 3D experience is a quantum leap from old analogue 3D that involved red-blue glasses or cumbersome headgear that gave you a headache. He adds, Within a few years most Hollywood blockbusters are expected to be made in Digital 3D and we at Adlabs are proud to be bringing this experience to India for the first time.

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Tushar Dhingra, Chief Operating Officer Adlabs Cinemas said, BIG 3D Digital is certainly the most superior quality of cinema viewing available in the world today and is clearly the future of cinema. After launching IMAX and 6D, we are excited to offer our patrons yet another cuttingedge international cinema viewing experience at Adlabs. Based on the classic Jules Verne novel, Journey to the Center of the Earth is the first live-action feature film to be shot and released entirely in digital 3D. With spectacular photo-real environments and revolutionary new filmmaking techniques, it is an epic adventure, one that takes audiences directly into the heart of the adventure, bringing them along for an unprecedented, wild and visceral ride.

The digital screen which was earlier operating in the analogue format has a seating capacity of 272. There are four shows a day. Tickets are priced between Rs. 120 and Rs. 180 and can be booked over the internet at www.adlabscinemas.com, via telebooking on 022 39894040 and through Mobile Box Office.

Adlabs Cinemas is the largest cinema chain in India and presently has 181 screens spread over 70 properties nationwide. It is also building up a sizable international presence, having recently acquired majority interest in Malaysia-based Lotus Five Star Cinemas, and will be operating a 51 screen cinema chain in Malaysia. The international network, in addition to Malaysia, also includes 221 screens covering the East, Mid West and West Coast of USA as also Mauritius and Nepal. It was the first to introduce entertainment destinations to India such as the IMAX experience at the largest dome theatre in the world, 6D cinema and has also pioneered the concept of megaplexes.

ADLABS ACQUIRES MAJORITY INTEREST IN MALAYSIAN CINEMA CHAIN LOTUS FIVE STAR

Mumbai, 5th May 2008 Adlabs Films Limited, part of the Reliance Anil Dhirubhai Ambani Group, has entered into an agreement for acquisition of majority and controlling interest in Malaysia-based Lotus Five Star Cinemas and will be operating a 51 screen cinema chain in Malaysia. The chain will have a footprint across Malaysia and will be playing mainstream Hollywood films as well as Chinese and Malay, in addition to movies in Indian languages such as Hindi and Tamil.

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Anil Arjun, Senior Vice President Reliance ADAG, said, This acquisition will strengthen Adlabs Cinemas international presence. The international network, in addition to Malaysia, comprises 220 screens covering the East, Mid West and West Coast of USA as also Mauritius and Nepal. Adlabs Cinemas is the largest cinema chain in India and presently has 160 screens nationwide.

ADLABS IS "RETAILER OF THE YEAR" IN ENTERTAINMENT AT INDIA RETAIL SUMMIT 2006

Mumbai, 24th November 2006 The Awards Jury of India Retail Summit 2006 presented Adlabs Films with the "Retailer of the Year" Award in the Entertainment category at the Reid & Taylor Awards for Retail Excellence on 24th November 2006.

"Retailer of the Year" is the ultimate award presented to an individual, exclusive brand or multibrand retailer of Fashion, Food, Beauty, Leisure, Entertainment etc. which has a single outlet or more and has shown outstanding performance with expansion within the boundaries of its operation in the previous year. Tushar Dhingra, COO Adlabs Cinemas, accepted the award on behalf of the company. Other nominees included PVR Cinemas, Shringar, Inox and Fun Republic. In the year to come, 13 million people are expected to watch a movie on an Adlabs screen. With two IMAX theatres, 13 cinemas, 50 screens and counting, Adlabs Cinemas is one of the largest motion picture exhibitors in the country and is on its way towards redefining entertainment in India with its differentiated marketing strategy cutting across metros and non-metros. A customer service orientation has ensured that the company always remains in touch with its core consumer through pioneering initiatives like Silver Screens for senior citizens amongst others and living up to its promise of "never a dull moment" at an Adlabs Cinema

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BIG Cinemas enters Bengaluru with the opening of a multiplex at Arch Mall

Romance; Drama; Comedy; Action get a new luxurious destination in Bengaluru with the opening of BIG Cinemas at Arch Mall. The launch of this multiplex marks the entry of BIG Cinemas, Indias largest cinema chain and a division of Reliance MediaWorks Ltd and a member of the Reliance Anil Dhirubhai Ambani Group in Bengaluru.

BIG Cinemas at Gopalana Arch Mall in Bengaluru houses 3 contemporary screening rooms with a seating capacity for 1019 people, offering moviegoers the finest customer amenities and a dynamic screen presentation, along with a greater choice of films and viewing times. The auditoriums are furnished with large screens, stadium-style seating in plush high-backed push back sofas and Dolby sound systems. The company would also offer Movie Munchies, a unique range of food and beverage offerings which have been developed in-house, exclusively for BIG Cinemas guests.

Commenting on the occasion Ms. Archana Jhangiani, Head Brand Experience and Design said, The development of BIG Cinemas in Bengaluru has been remarkable and we are honored to present it as such a distinguished venue with a modern and contemporary feel to the movie loving residents of the city. Through BIG Cinemas, we aim to reinvent the multiplex experience for Bengaluru and provide world class amenities to our audiences.

BIG Cinemas is planning to further expand and strengthen its presence in Southern India by adding 22 screens through launch of three new cinemas in Bengaluru, Coimbatore and Hyderabad in 2010. The other two BIG Cinemas that will come up in Bengaluru is a 3 screen multiplex located at Innovation mall and 8 screens megaplex at Whitefield.

Commenting on the occasion Mr. Ashish Saksena, COO, BIG Cinemas (West and South) said, We are pleased to establish our presence in Bangalore and see considerable untapped potential in Southern India which is a growth territory for us as we are expanding the BIG Cinemas network in not just major towns and cities, but also are focusing on taking the brand and finest cinematic experience to smaller territories which currently lack in good entertainment infrastructure. We believe that everyone deserves to indulge in true cinematic experience the BIG way. BIG Cinemas has established a strong presence across Southern India with over 23 properties and 44 screens spread across Karnataka, Tamil Nadu and Andhra Pradesh.

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BIG Cinemas has also successfully promoted South Indian movies across its global network and today through its pan-US footprint, BIG Cinemas accounts for over 75% of Tamil and Telegu box office collections from the US. Big Cinemas is Indias largest cinema chain with over 500 screens spread across 115 cities in India, US, Malaysia and Netherlands and caters to over 35 million consumers. BIG Cinemas has been awarded the Entertainment Retailer of the Year honor at the India Retail Forum 2009 and has also been awarded International Exhibitor of the Year 2008 by CineAsia 2008 at Macau.

On 8th March women get to watch their favorite movie for free at BIG Cinemas as women are indulging in a girls day out watching free movies as BIG Cinemas, Indias largest cinema chain celebrates International Womens Day on 8th March, 2010. Offer: BIG Cinemas, invites all women to come and watch movies for free on Womens Day. To avail the offer, women would have to arrive at the box office 45 minutes prior to the movie show and collect their free tickets. They also get a chance to participate in a lucky draw and win gift vouchers from kaya skin clinic and Titan Raaga. BIG Cinemas had screened Road Movie, Teen Patti, Karthik Calling Karthik, Atithi Tum Kab Jaaoge, Thanks Maa, My Name Is Khan, and Legion on Womans Day.

According to Mr. Ashish Saksena, COO, BIG Cinemas, "Women patrons, besides being our most loyal customers are a prominent and growing customer demographic and at BIG Cinemas, on the occasion of International Women's Day, through this celebration we would like to express our gratitude and appreciation for their continuous support." Big Cinemas is Indias largest cinema chain with over 500 screens spread across 115 cities in India, US, Malaysia, Nepal and Netherlands and caters to over 35 million consumers. BIG Cinemas is a division of Reliance MediaWorks Ltd and a member of Reliance ADA Group.

BIG Cinemas has also been awarded the Entertainment Retailer of the Year honor at the India Retail Forum 2009 and has also been awarded International Exhibitor of the Year 2008 by CineAsia 2008 at Macau.

BIG Cinema acquires 188 screens in 27 US cities

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Lalit K Jha/PTI / Washington April 26, 2010

In an effort to cash in on the craze for Bollywood films among the South Asia population, which is estimated to be nearly four million in the US, the Big Cinemas has acquired 188 screens in the country and is planning to expand further. In little over a year, the Big Cinemas has acquired a chain of 188 screens in more than two dozen cities in the US, covering almost all the major centers of South Asian population from Manhattan and Edison in East Coast to Los Angeles and San Jose in California and Chicago in the Mid-West. By the end of the year, it plans to acquire about 250 screens across the US and expanding to new centers of South Asian population like Florida and Texas, says Anil Arjun, CEO of Reliance Media Works. BIG Cinemas is a division of Anil Ambani-owned Reliance Media Works and a member of Reliance ADA Group. The company now accounts for 20-35 per cent of Hindi features box office collections and over 70 per cent of Tamil and Telegu box office collections from the US. Noting that North America is an attractive market for Indian films (Hindi, Tamil and Telugu) with nearly four million south Asians with strong affinity to Indian films, Arjun said film distribution in the US has been highly fragmented and disorganized. "Limited number of prints, inadequate marketing and promotion and exhibition in screens that are inadequate in terms of quality of ambience," he said. This previously meant that the penetration of a movie in terms of admits vis-a-vis the Indian population was under nine per cent, he said. "That has now changed and there has been a major organized play in the marketing, promotion and distribution of films in the US," Arjun said. Talking about its future plans, Arjun said BIG Cinemas is setting up stand alone properties and cinemas in malls in the United States. Existing properties are being taken over and being renovated by BIG Cinemas. Arjun said not all its screens show Indian movies all the time. "It is mix and match." Close to 130 screens have Hollywood movies, while the balance 50 screens run Indian movies. "There is no dedicated property for India or American movies," he said. One of the recent big hits of the BIG Cinemas in the US was '3 Idots', which generated massive revenue of $6.7 million, he said, adding that it is almost double in size of the past collections 'Om Shanti Om' at $3.6 million and 'Jodha Akbar' at $3.4 million

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METHODOLOGY

SWOT ANALYSIS of Big Cinemas

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

WEAKNESSES High cost perceptions T.A very specific (not mass service) Disjointed images for all PVR properties Customer retention Lack of loyalty offers OPPORTUNITIES First mover advantage Growing family spendings on entertainment Large film industry over 200 hindi films every year Offers to create loyalists THREATS Competition blooming large Governments interference Entertainment Tax Other Multiplexes as competition Other ways of entertainment Accused of increased crime rate Piracy No control over surroundings Movies becoming bigger than the brand

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Porters Five Forces Model of Competition

Threat of New Entrants Barriers to entry Economies of scale Product Differentiation Capital Requirement Switching cost to buyers Access to distribution channels Other cost advantages Government policies Incumbents defense of market share Industry growth rate. Determinants of supplier power Supplier concentration Availability of substitute inputs Importance of supplier inputs to buyers Supplier product differentiation Importance of industry to suppliers Buyers switching cost to other inputs Supplier threat of forward integration Buyers threat of backward integration Rivalry among existing firms Number of competition (concentration) Relative size of competition (Balance) Industry growth rate Fixed cost vs. variable costs Product Differentiation Capacity augmented in large increments Buyers switching costs Diversity of competition Exit Barrier Strategizing stakes

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Determinants of buyer power Number of buyers relative to sellers Switching costs to use other products Buyers profit margin Buyers use of multiple source Buyers threat of backward integration Sellers threat of forward integration Importance of product to the buyer Buyer volume Threat of substitute products Relative price of substitute Relative quality of substitute Switching cost to buyers

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THREAT OF COMPETITORS Big Cinemas 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; Big Cinemas; Shringar Cinemas Limited; E City Entertainment; Wave Cinemas; Cinemax India; and DT Cinemas. Brief about competitors of Big Cinemas Cinemax Cinemax was incorporated on May 22, 2002 under the Companies Act as Cineline Entertainment (India) Private Limited to primarily carry on the business of building, owning, and operating Multiplexes, Theatres and entertainment centers. The name of our Company was changed to Cinemax Cinemas (India) Private Limited on December 23, 2005. We were converted to a public limited company by a resolution of the members passed at the AGM held on June 12, 2006. The fresh certificate of incorporation consequent to the change of name of our Company was issued by the RoC on July 27, 2006.

Cinemax was incorporated with its registered office at Acme Commercial Arcade, 4th Floor Trikamdas Road, Kandivali (W) Mumbai-400067, which was subsequently shifted to 5th Floor, 349 Business Point, Western Express Highway, Andheri (East), Mumbai 400069 consequent to the approval of the Board on March 28, 2006. Pursuant to the approval of our Board on August 25, 2006, the registered office of our Company was shifted from 5th Floor, 349 Business Point, Western Express Highway, Andheri (East), Mumbai 400069 to 805, 8th Floor, 349 Business Point, Western Express Highway, Andheri (East), Mumbai 400069, where it is presently situated.

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Cinemax had carried out a restructuring exercise, wherein seven of our group companies i.e. Rupam Private Limited, Hariyash Theatres Private Limited, Kanakia Shelters Private Limited, Kanakia Creators Private Limited, Vrushti Theatres Private Limited, Cineline Cinemas (India) Private Limited, and Cineline Multiplex Theatres (India) Private Limited (hereinafter referred to as the merged entities) were merged with us with effect from April 1, 2006. The High Court of Bombay sanctioned the Scheme of Amalgamation on March 24, 2006. The restructuring exercise was done with a view to consolidate the Theatres and Multiplexes operated by us through various subsidiaries under the brand name of CINEMAX and also to facilitate cost effective regulatory compliance. Some of the salient features of the Scheme of Amalgamation are as follows.

The entire business and whole of the undertakings of Rupam Private Limited, Hariyash Theatres Private Limited, Kanakia Shelters Private Limited, Kanakia Creators Private Limited, Vrushti Theatres Private Limited, Cineline Cinemas (India) Private Limited and Cineline Multiplex Theatres (India) Private Limited, as on the appointed date of April 1, 2006 was transferred to and vested in our Company so as to become assets and properties of our Company. The entire equity share capital of Rupam Private Limited, Hariyash Theatres Private Limited, Kanakia Shelters Private Limited, Kanakia Creators Private Limited, Vrushti Theatres Private Limited and Cineline Multiplex Theatres (India) Private Limited was being held by our Company and subsequently on the Scheme of Amalgamation becoming effective, stood automatically cancelled. However, we along with Rupam Private Limited, Hariyash Theatres Private Limited, Vrushti Theatres Private Limited and Kanakia Shelters Private Limited held collectively only

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71.64% of the equity share capital of Cineline Cinemas (India) Private Limited and the remaining 28.36% equity shares was being held by the other shareholders, who were issued twelve redeemable non-convertible Preference Shares of Rs 10 each of our Company for every one equity share held by them in Cineline Cinemas (India) Private Limited. Currently, Cinemax has four wholly owned subsidiaries namely Vista Entertainment Private Limited (VEPL), Growel Entertainment Private Limited (GEPL), Cinemax Motion Pictures Ltd. (CMPL) and Nikmo Finance Private Limited (NFPL), a wholly owned subsidiary of Growel Entertainment Private Limited. Vista Entertainment Private Limited and Nikmo Finance Private Limited operate our Multiplexes at Versova i.e Cinemax-Versova and at Kandivali (East) i.e Cinemax- Kandivali (East) respectively.

Fame Cinemas Movies, Trailers, Premieres and more Fame is a place of constant innovation. Fame (I) Ltd (formerly Shringar Cinemas Ltd) is a company dealing with Distribution, Exhibition, Multiplexes and Negative rights. It has been instrumental in bringing the highest quality of entertainment to Indian audience with over 28 years of experience in distribution and over five years experience in exhibition of films.

First Multiplex was launched in Andheri (W) Fame Adlabs and till date we have 25 multiplex across India. Currently, we operate 93 screens and 26269 seats across 12 cities in India with presence in states of Maharashtra, Gujarat, Haryana, West Bengal, Jharkhand and Karnataka. We expect to roll out at least 9 screens further in the year 2009-10 The brand Fame (I) Ltd has stood for ethical, fair practices and transparent dealing over the last several decades. This is the core strength on which all our businesses are built. Entertainment an Experience - Fame Cinemas constantly endeavors to bring in the highest quality of entertainment to Mumbais film going audience. Fame has transformed the experience of movie lovers into a pleasant, very user-friendly and delightful experience. Given the commitment to the quality of service & films being screened, there is little wonder then that, Fame has a burgeoning set of loyal customers who love getting pampered here. Our mission is to offer a world class viewing experience to the consumer through a chain of Multiplexes.

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The years between 2002 and 2009 witnessed what may have been the most significant transformation in Indian film industry through Fame (I) Ltd.

We benchmark ourselves with global multiplexes, and strive to enhance our service offering in line with the emerging trends globally. To provide exceptional consumer experience, we have introduced the Gold Class screens which feature natural leather recliners, where each recliner stretches to 150 degrees, super size screens, state of the art projection and sound systems. Apart from popcorn and soda, we also offer specialty food, which can be ordered and delivered on ones seat! PVR Cinemas PVR Cinemas leading and premium Multiplex Cinema Exhibition company. We pioneered the multiplex revolution in India by establishing the first multiplex cinema in 1997 and the largest 11screen multiplex cinema in the country in 2004. Currently, our geographically diverse cinema circuit in India consists of 33 Cinemas with 142 screens spread over Delhi, Faridabad, Gurgaon, Ludhiana, Ghaziabad, Mumbai, Bangalore, Hyderabad, Chennai, Lucknow, Indore, Aurangabad, Baroda, Allahabad, Chhattisgarh, Ahmedabad Latur and Raipur.

Taking India to the movies, the PVR brand has been successful in entertaining more than 16 million patrons in FY 2009-2010. We are the only film exhibition company in India to have had an international film exhibition operator as a strategic investor.

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We were incorporated in April 1995 pursuant to a joint venture agreement between Priya Exhibitors Private Limited and Village Roadshow Limited, one of the largest non-U.S. cinema exhibition companies in the world with more than 1,000 screens under operation. Village Roadshow's international experience enabled us to begin our film exhibition business operations at PVR Saket, the first Multiplex Cinema in India, using international best practices. In November 2002, as part of Village Roadshow's planned divestment of its investments in 18 countries, it sold its entire shareholding in our Company to Priya Exhibitors Private Limited.

The company operates a film distribution and production business through PVR Pictures, a subsidiary of the company. PVR Ltd holds 60% shareholding in the subsidiary with the balance 40% stake held by JP Morgan Mauritius Holding Ltd and ICICI Venture in equal proportion (20% each). The movies co-produced by PVR Pictures include "Taare Zameen Par", "Jaane Tu Ya Jaane Na", "Contract" and "Mere Khwabon Mein Jo Aaye". Apart from the movies co-produced, some of the other movies distributed by us include "Ghajini", "Golmaal Returns", "Dasvidaniya", "Sarkar Raj", "Bal Ganesh", "Lions of Punjab", "Tum Mile", "Aviator", "Chicago", "Hannibal Rising", "Don", Twilight, to name a few.

To ramp up our presence across the retail entertainment landscape, we have entered into a JV with Major Cineplex Group, a leading Film exhibition and retail entertainment company based out of Thailand, to bring lifestyle entertainment concepts to Indian consumers. The Joint Venture enjoined setting up of bowling alleys, karaoke centers, ice skating rinks and gaming zones across the country to enhance the out of home entertainment experience for Indian consumers. bluO, Indias largest bowling alley was set up in Gurgaon in 2009.

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Our long-term vision is to remain India' most premium and most preferred Retail Entertainment Company. To achieve this vision, we continue to provide the highest exhibition standards at our cinemas besides increasing the number of cinemas under operation on a pan India basis. We further look forward to bringing allied retail entertainment concepts to India to complement and complete the entertainment experience for our consumers.

Inox Cinemas INOX Leisure Limited is the diversification venture of the INOX Group into entertainment and is a subsidiary of Gujarat Flurochemicals Ltd. INOX Leisure's mission is to be the leader in the cinema exhibition industry, in every aspect right from the quality and choice of cinema to the varied services offered and eventually the highest market share.

INOX has traversed its own path by bringing in a professional and service oriented approach to the cinema exhibition sector. With strong financial backing, impeccable track record and strong corporate ethos, INOX has established a strong presence in the cinema exhibition industry in the short span of a little over eight years since the opening of its first multiplex.

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INOX currently operates 38 multiplexes and 144 screens in 25 cities making it a truly pan-Indian multiplex chain. Winner of the 'ICICI Entertainment Retailer of the Year' Award 2005, TAAL Multiplexer 2006 and Emerging Superbrand of the year 2006 - 2007 Award, INOX Leisure Ltd. will continue its expansion into places like Jodhpur, Ahmedabad, Bhopal, Mangalore, Coimbatore, Kanpur, Hubli, Bhuvaneshwar, etc. Its merger with CCPL (89 Cinemas), has given INOX access to an additional 9 multiplexes in West Bengal and Assam. INOX was also chosen post a nationwide tender to design, construct and operate the prestigious multiplex in Goa that hosts the International Film Festival of India. All INOX cinemas have state of the art facilities in terms of modern projection and acoustic systems, interiors of international standards, stadium styled high back seating with cup holder arm-rests, high levels of hygiene, varied theatre food, a selection of Hindi, English and regional movies, computerized ticketing and most importantly high service standards upheld by a young and vibrant team.

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THREAT OF SUBSTITUTES Threat from other sources of entertainment In addition, BIG CINEMAS faces competition from other forms of entertainment including, television, film DVDs, newspapers, magazines, radio, internet and theatre and advances in technology related to entertainment, such as MP3 and multimedia messaging etc. These other forms of entertainment compete with cinemas for the discretionary spending of patrons and for the ad-spend of advertisers. Accordingly, BIG CINEMAS cannot be certain that they will not lose some of our cinema audiences to these competitors or lose advertising revenue to them. If they are not able to compete effectively, their business, results of operations and financial condition could be adversely affected. Films constitute 28% of the total entertainment industry of Rs. 20000 crores in India. Television forms a major 65%. Piracy and home-viewing may reduce the number of cinema patrons. On account of inadequate enforcement of anti-piracy laws in India, and on account of increasing home viewing options, the number of cinema patrons may reduce in the future, which may have a material adverse effect on the companys revenues and results of operations. Television is expected to grow at a faster pace than cinema.

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THREAT OF NEW ENTRANTS Costs of setting up a multiplex in India are coming 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. But owners are now realizing 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. Though regulations maintain pressure on the compliance costs The Indian film exhibition sector is currently regulated by a numerous laws some of which were written at a time when Multiplex Cinemas were not common and hence these laws may not necessarily be relevant for Multiplex Cinemas. Some of the provisions of these laws include: 1. Requiring a minimum distance between the screen and the front row seats, which distances were set based on large screens used in single-screen cinemas and not the smaller screens used at most Multiplex Cinemas. 2. The permissible pressure at which the electrical current may be supplied to a projector, which provision does not reflect the technological advances in respect of Multiplex Cinemas. 3. The reservation of playing times for a scientific film, educational film, news reel or documentary. 4. Restrictions on ticket prices in certain states. 5. The minimum area of washroom that is required for setting up any cinema hall. 6. Provision of art gallery in the lobby area. Minimum of 100sqft area has to be kept reserved for art gallery to display paintings and art work of any form. SUPPLIER POWER The cost of exhibition of a film varies across films and cinemas and if the multiplex company 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 distributors share is normally a percentage of ticket receipts (net of entertainment taxes) and the applicable percentage is negotiated on a film to film basis in respect of movies produced in India and periodically for film releases by international studios. Distributors work on a non-exclusive basis and there is competition between exhibitors to acquire films. Competitive pressures may result in increasing the cost at which we acquire the rights to exhibit films. the multiplex company is unable to recover such increased costs through higher box office collections or other forms of revenue generation, our results of operations would be adversely affected. Big Cinemas has itself diversified into film distribution and hedged this risk partially.

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Ansoff Matrix

Big Cinemas is trying to penetrate into existing markets. It is also expanding its reach across new markets. Reliance Media Works has diversified into film distribution and set up business and came out with their own film magazine The Plot.

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Segmentation, Targeting and Positioning

Segmentation
On the basis of customer preferences, we may classify Big Cinemas under the Clustered category. This is owing to the fact, that out of the entire masses they have clearly defined their target audience and aim to cater to them. Also, Big Cinemas is a Concentrated Market because they only cater to the premium movie-going audience i.e. SEC A and SEC B. Big Cinemas has approx. 22 million movie goers per month Consumer Demographic Segmentation Age: 61% between 18 and 49 Gender: 47% Males / 53% Female Income: 61% have income over 50K Education: 55% of adult movie-going audience has attended/graduated college*. Of these adults, 37% have college degrees or higher

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Consumer Psychographic Segmentation Big Cinemas 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. Big Cinemas Movie Buffs generally have the following major tendencies:Go outside the home for entertainment -Participate in sports and other active lifestyles -Hard to reach through other traditional media -lighter television and radio users, but heavy internet users -Receptive to advertising in movie theatres, consider as part of their movie going experience Consumer Behavioral Segmentation Usage rate: 1/3 of the population attends the movies one or more times per month

Targeting
Big Cinemas being the first of its kind in innovation has always been a market leader and therefore its offering to the customer is Innovative. Big Cinemas has premium pricing and they target mainly SEC A and SEC B. Big Cinemas has brought to its customers the experience of Luxury Cinema. Big Cinemas uses the concentrated method as they have target a much focused audience out of he entire masses. Big Cinemas witnessed tremendous success Ebony Lounge in Metro Big Cinemas Mumbai. Big 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. Big Cinemas chain use Differentiation method for pricing. It practices different price slabs for different target audience. For instance, they have tickets ranging from Rs 50 (for the youth) to Rs 140 (for the upper class i.e. Platinum).

Positioning
Big Cinemas 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 Big Cinemas, 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 Big Cinemas comes across as a superior brand in terms of cinema viewing as well as the experience.

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MARKETING MIX 7 Ps SERVICE PRODUCT/ SERVICE PACKAGE

A product (in the marketing context) may be tangible, intangible or both. In case of services, on the contrary, the tangible component is nil or minimal. In services, there is no or very little tangible element because of which they are considered as benefits, which are offered to the target market. First, a service is a bundle of features and secondly, there benefits and features have relevance for a specific target market. Therefore while developing a service product, it is important that the package of benefits in the service offer must have a customers perspective. 5 product levels are as follows: Core Benefit is the MOVIES that the customer comes to a cinema hall for, along with the attendant experience of Big Cinemas. The expected product in Big Cinemass case would be ambience, hygiene, good service, parking, candy bar etc. BIG CINEMAS has augmented its product offerings: Luxury cinema BIG CINEMAS has brought to its customers the experience of luxury cinema. After the tremendous success of Ebony Lounge in Metro Big Cinemas Mumbai, BIG 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 corporate. Details can be filled online and BIG CINEMAS executives themselves get in touch with the concerned people. E-booking and tele-booking BIG CINEMAS also provides the facility of e-booking, which was first started by BIG CINEMAS; it has now been copied by Satyam Cineplexs as well. It also offers telebooking Parties at BIG CINEMASBIG CINEMAS has also started helping customers in planning birthday/kitty parties at BIG CINEMAS. They have made BIG CINEMAS a wholesome entertainment experience than just a movie watching spree. Movie newsletter and magazine To keep its customers hooked on to movies and to BIG CINEMAS, it has also come out with an online newsletter called BIG CINEMAS newsletter is directly mailed to the subscribers and can also be downloaded from their website. They have also launched a movie magazine called Plot. Movie vouchersThey 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 The Delhi BIG CINEMAS Admit One Voucher costs Rs 150/- and is valid right through the week across all cinemas BIG CINEMAS Movie Money Vouchers cost Rs 160/The following options are available in Bangalore Classic Mon -Thur : Rs 100/All Week (including Weekends) : Rs 130/ Mon -Thur : Rs 130/All Week (including Weekends) : Rs 150/Gold Class All Week (including Weekends) : Rs 350/- + Rs150/- for food and beverages (optional) The expected product in BIG CINEMASs case would be ambience, hygiene, good service, parking, candy bar etc. BIG CINEMAS has augmented its product offerings: Luxury cinema BIG CINEMAS has brought to its customers the experience of luxury cinema. After the tremendous success of Ebony Lounge in Metro Big Cinemas Mumbai. BIG 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 corporate. Details can be filled online and BIG CINEMAS executives themselves get in touch with the concerned people.

THE SERVICE PACKAGE The package concept of services product suggests that what you offer to the market is a bundle of different services, tangible and intangible, but there is a main or substantive or core service and around it are built the auxiliary/peripheral/facilitator. It is important to note that facilitating 3services are mandatory and if these are left out, the entire service would collapse. Yet another type called supporting services, dont facilitate the consumption of core services but are used to increase the value and thus differentiate from the competition. Quality Assessment through mystery audit in case of BIG CINEMAS is focused on developing a procedure for quantifying customers service quality can be measured in following dimensions: Reliability Ability to perform promised service dependably and accurately. BIG CINEMAS is a very well established brand name, and the audience is given excellent experience of the basic product i.e. the movie as well as the other elements involved. Hence, it is very much capable of good delivery of the service it provides. There is no flaw in the quality of the service and is always delivered on time. Assurance Knowledge and courtesy of employees and their ability to convey truth and confidence. Since BIG CINEMAS is a high contact organization, the employees are well trained in all areas regarding customer interaction and courtesy. BIG CINEMAS 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.

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Tangibility Appearance of physical facilities, equipment, personnel etc BIG CINEMAS movies have a lot of tangible elements present like the employees (staff), the movie halls, the candy bars, rest rooms etc, all of which are highly maintained and well kept. Empathy Caring, individualized attention to the customer. Even though in a service like this customization is not possible, the employees of BIG CINEMAS are always very helpful and provide the customers with good assistance whenever needed. From the employees made to sit at the ticket counter to the employee that guides customers to their respective seats in the cinema hall, all employees deliver a very helpful attitude towards the target audience. Responsiveness Willingness to help customer with prompt service. The employees of BIG CINEMAS are fast and prompt at delivering their service and are taught to cause as less inconvenience as possible to the customers. If a customer places an order via telebooking / online reservation etc, the delivery of the tickets is made well before the show timing at the customers doorstep. The employees are well trained.

PRICE
To many customers, high price means high quality. Services pricing follows the price and practices of pricing of goods and therefore are either cost based or market based. Within these, categories of price may be profit oriented, government controlled, competition or customer oriented. But the characteristics of services do influence the pricing and therefore different methods of pricing are followed in their case. BIG CINEMAS 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, BIG CINEMAS 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 BIG CINEMAS, 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 BIG CINEMAS 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 BIG CINEMAS 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 BIG CINEMAS gets.

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Even in slighter crowded shows, the occupancy rates as low as 35% reaches BIG CINEMASs break-even points. BIG CINEMAS 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 BIG CINEMAS 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 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 BIG CINEMAS are stationed at good locations in the city, which gathers a large number of footfalls for them every day. BIG CINEMAS usually open at an eventful yet untapped location, followed by which other retail chains get opened around it as well. Their places are always well situated and are well linked. BIG CINEMAS 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, BIG CINEMAS 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, BIG CINEMAS 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. 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 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, and corporate identity programs have relevance. 3rd parties like government, unions and interest groups are important, as they are capable of influencing market access. BIG CINEMAS as a brand indulges into print advertisements on every Friday giving out the latest movie schedules. Any new developments are communicated to the audience via press releases. Hence there is a strong element of PR

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involved. Apart from that, they usually have contests pertaining to latest festivals like Valentines Day, New Years Eve, Oscar Movies Week etc. BIG CINEMAS also has a host of online promotional contests associated with movies. They are also in collaboration with cellular services like Aircel have SMS and-win contests and give out free tickets to the winners. Also, BIG CINEMAS attracts a lot of commercial shooting / media coverage via programs etc which promotes it as a brand in a big way. Organizing Star Events on Premiers of movies like Jodha Akhbar, 3 Idiots, Raajneeti, Rock On helps BIG CINEMAS relate better with its target audience i.e. the youth. The whole BIG CINEMAS banner and its exterior environment including movie hoardings, banners etc help promote the concept of movie viewing as well as BIG CINEMAS as a strong and successful brand. BIG CINEMAS also hosts premiere shows with leading movie stars visiting the various BIG CINEMAS cinemas. They also host numerous fun events for children while screening animations etc. PEOPLE EMPLOYEES, CUSTOMERS and OTHER CUSTOMERS Service must be fully developed and internally accepted before its launched. Attracting, developing, motivating, retaining employees Measure & Reward Stress Team play Leverage freedom factor Prepare to perform Offer a vision Compete in talent Know the customer BIG CINEMAS indulges in the following for their EMPLOYEES: Complimentary ticket on payment of entertainment tax amount at any point of time (2 days in advance) to the employees, subject to availability. Tickets to employees are given for: o 1+1 oneself and employees guest o 2 for immediate family i.e. parents, spouse etc. This has been done to encourage movie going among employees as well as customers. Makes all employees train at different levels from time to time Teaches employees to be helpful, polite, courteous to all patrons and co workers enthusiasm and cheerful Report customer grievances to managers Strict on rules on no smoking, drinking on job etc. They are given personalized badges symbolizes that the employees pride themselves on being a part of the BIG CINEMAS family Very great importance is given to person hygiene and appearance clean uniform and shoes. Not allowed to make a gesture to ask for any sort of a tip / gift from customers. Job performance evaluation at the completion of first 90 days of employment. They are evaluated once a year on their anniversary of date of joining by individual superiors and records regarding employees progress are evaluated.

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 Given bright uniforms represents BIG CINEMAS. This is done to ensure uniformity of appearance and to project a well kept image. All employees are taught to deal with safety problems like accidents, fire, bomb threat, armed robbery etc. Certified first aid course given to all employees All trainees are made to train at all departments like ticket sales, computer ticketing, telebooking, sales enquiries, customer service skills, cash handling sales, credit card sales etc. Special well kept rooms for the employees Lastly, it is made sure that all employees represent BIG CINEMAS in the best way possible and sell it as a strong and well-established brand. 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. For the customers convenience, it is ensured by the organization that there are no loopholes. In case of any customer complaints, the employees are immediately directed to report the same to their managers. The nature of all employees is very friendly, informed, helpful, reliable, soothing, cheerful 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. Atmosphere helps to shape opinions. The building, layout, colors of interiors, tickets, labels, logo of the organization etc help to formulate a good unified corporate image / identity.

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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. The interior and exterior of the premises is such so as to project a hygienic and well-maintained image at all times. The administration offices, booking offices, candy bars, conference rooms, auditorium, foyers, corridors, wash rooms, staircases, walls, projector room, basement area all coordinated and hygienically maintained. Both the external and internal ambience is very important and is maintained excellently, as it is important to appeal to existing and even to the potential customers. At BIG CINEMAS, it is equally important to keep employees happy. Therefore, even the employees workplaces in the premises are coordinated with the whole halls ambience and are lively. Exterior The movie hoardings, movie schedules, computerized service, glass entrance, BIG CINEMAS banner, deign of BIG CINEMAS building, parking etc all contribute to the external environment. Interior Seats, color coordination and combination (blue in case of BIG CINEMAS), hygienic wash rooms, candy bars, corridors, stairs, sound and visual equipment, design of the hall, ambience etc are all included here.

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Attention to detail and stress on high quality cinema viewing experience is evident from the unique seating arrangement that ensures unobstructed viewing from anywhere in the auditorium. Plush, ergonomically designed seats have been installed to provide flexibility and ultimate comfort to guests. 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. 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. IMAX BIG Cinemas Wadala 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. Developing a service blueprint requires identifying all the key activities involved in service delivery and production and specifying the linkages between these activities. A central aspect of service blueprinting is to distinguish between what the customer experiences front stage and the activities of employees and support process backstage, where the customer cannot see them. Between the two lies what is called the line of visibility. Standards can be set for each service activity but should be based on good understanding of customer expectations. Below the line of visibility, the blueprint identifies key actions to ensure that each front stage step is performed in a manner that meets or exceeds those expectations. Service blueprints clarify the interactions between customers and employees and how these are supported by additional activities and system backstage. Because blueprints show the inter relationships between employee roles, operational process, information technology, customer interactions, they can facilitate the integration of marketing, operations, and human resource management within a firm Blueprinting also gives managers the opportunity to identify potential fail points in the process that pose a significant risk of things going wrong and diminishing service quality. Blueprinting the BIG CINEMAS experience To illustrate blueprinting of high contact, people processing BIG Cinemas service, we examine the experience of watching a movie in BIG Cinemas that enhances its core movie service with variety of other supplementary services.

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The key components that we will include in BIG Cinemas experience blueprint: 1 Script for each front stage activity 2 Physical evidence for front stage activities 3 Line of interaction 4 Front stage actions by customer-contact personnel 5 Line of visibility 6 Backstage actions by customer contact personnel 7 Identifying failure points Identifying failure points Running a good movie experience is a complex business and much can go wrong. The most serious fail points, marked by small F in a circle, are those that will result in failure to access or enjoy the core product. Because service delivery takes place over time, there is also the possibility of delays between specific actions, requiring the customer to wait. A W within a triangle identifies common locations for such waits. Excessive waits will annoy customers. Blueprint of BIG CINEMAS 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. The stage or service escape includes both interior and exterior of BIG CINEMAS 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 BIG Cinemas in person or on telephone with an unseen employee. Also tickets can be booked online called as arms length interaction. If tickets are booked according to first two procedures then impression is created on the evidence of respondents 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 customers initial experience of BIG Cinemas, 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. ACT 2: Delivery of core product 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 its important how the employee interacts and guides the way to the customers 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.

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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 BIG Cinemas. Act 3 should be short. The action in each of remaining scenes should move smoothly, quickly, and pleasantly with no shocking surprises in the end.

Understanding Big Cinemas as a Service Brand Service brands The term product also includes intangible services along with tangible physical products. The world of commerce is made up of a basic agricultural sector, a manufacturing sector and a service sector. The services undertakes activities which aid the trading and commercial activities e.g. banking services, transportation services, hoteliering consultancy services, etc. There are also personal services like beauty parlors and dentists clinic. The cinema industry is also a form of a service based product. Characteristic of a service based product Intangible As services are not physical objects, they cannot be touched or smelt. Physical goods can be touched, seen, tasted, Smelt or heard before they are bought. Perishable A service is perishable to a higher degree. If not used, services are lost forever. Services cannot be stored. For e.g. A seat in the plane for a particular destination must be occupied before the flight commences. If it remains unoccupied it is a waste. An unoccupied hospital bed or unutilsed credit facility is thus economic wastes. They cannot be restored or reused. Inseparability Services are not separable from the persons who provide them. Dancers, musician, dentist, and doctors create offer the services at the same time. This inseparability of services creates challenges for the service marketers. Heterogeneity Services are not easy to standardize because they are heterogeneous by their very nature. Even when the same price is paid for a particular service, the same level of quality cannot be ensured. Services are predominantly performed by people. It is difficult therefore to maintain the same standard. Ownership The goods change hands on the price being paid. The buyer gets a title of ownership to the good. However, services are not physical in nature. So we can have only access to them. We can make use of services without any rights to ownership. Thus medical services at a hospital can be used on payment of a price without any claim on the ownership of the hospital bed. Similarly the services at a cinema hall can be used on payment of the price without claiming the seat.

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Simultaneity Service providers bring the customers to the point of service delivery or they themselves Go to the user for the delivery of service. This puts a natural limitation on the size of geographical area being covered by the services. Goods are produced and then sold, and finally consumed. Service are sold first, then simultaneously produced and consumed. The consumer participates in the production process. It greatly influences his perception. Quality Measurement It is difficult to quantify the total purchase of a service. We can put a quality rating on hotel food, but the delivery of service by the waiter, or the ambience in which the food is served are difficult to quantify. Services are judged on the basis of overall satisfaction of the users. Physical goods can be checked for quality before they leave the supplies. Service quality can be assessed only when consumers come in contact with the staff. Staff training is an important area for the service brands.

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CONCLUSIONS & RECOMMENDATIONS

The cinema industry (Exhibition) is a service based product. Hence more emphasis has to be given to ensure customer satisfaction. The services must be designed keeping in mind the requirements of the customers as they are the end users of the services and if there is no demand for the services then the business will not be profitable. The below mentioned recommendations will explain the same Loyalty program (Membership offers) Big Cinemas has introduced many offers for its customers but till now there is no such offer which has membership offer for its loyal customers. This will ensure the retention of existing customers and also bring in new customers. The customers are always in search of discounts, benefits, free gifts, and a loyalty program will give the customers of Big Cinemas just that. The offer to be designed that the customer is given the benefits on the basis of the number of times he watches movies at Big Cinemas. There can be a system of redemption of points, and free gifts or benefits on watching movies at Big Cinemas. Service should be of the standard of the price charged. Many customers feel that some of the services inside do not command the price that is charged for them, e.g. even the first two rows in the theater command a price of 150/-. Most people feel this is not a good 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 is undue premium that is being charged. Option of wholesome meals must be made available at all the cinemas of Big Cinemas. Increasing the potential of a movie Every movie has its own potential to do business at the Box Office. But few alterations from the exhibitors will support the film to sustain for more weeks in cinema halls. Once a movie is past its prime and running in the second or third week where sales are low, Big Cinemas could do promotional campaigns and reduce the prices marginally for 1 show a day. The students form a major percentage of audience for most of the moves. Hence offering discounts of students can be a added advantage for any movie to increase its business. Sports as option to replace movies in cinema hall . Cricket is an obsession in India. Big Cinemas could capitalize the same by screening crucial matches like India Pakistan match. The growing popularity of soccer and other sports can also be tapped. This would be an instant hit even at higher prices charged.

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LIMITATIONS
The cinema industry is a business that involves too many factors. And hence the business of movies may not be so profitable at all times .There are many limitations that could be the cause for the cinema industry to not do a good business even though there are hundreds of films releasing every year. The below mentioned points explain the same The number of films releasing in a year are increasing every year. That means many films are releasing every week unlike in the past where only one film would release in a month or two. This is creating a stiff competition at the start itself for the movies to make profits at the box office. The pricing for per ticket is not entirely the decision of the cinema hall. The distributors of the film also influence the decisions and in many cases distributors make it mandatory to charge high prices (This was seen during the release of the film 3 Idiots the prices were at an all time high) The technology has been so fast developed and has also affected the movie business. The latest films are available on the internet; pirated DVDs are sold so cheap in the market hence the number of customers coming to watch a film in a cinema hall is very less. The government tax structure is also a factor that is causing the price hike in cinema hall. The tax should be bare minimum for entertainment. This will benefit the films and the customers and also the cinema hall.

Bibliography

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Web Sites referred to compile the data

1. www.nfdcindia.com 2. www.indiaonline.in 3. www.thehindubusinessline.com

Books referred for the project research1) Marketing Management, 13th edition, by Philip Kotler and Kevin Keller 2) Marketing Management Global Perspective Indian context, by V.S Ramaswamy & S. Namakumari 3) Case Studies In Marketing: The Indian Context by Srinivasan, R 4) Strategic Marketing Problems: Cases and Comments by Roger A Kerin, Robert A Peterson 5) GLOBAL MARKETING STRATEGY by Susan P Douglas 6) Marketing Management Text & Cases by S Jayachandran, Chennai 7) Services Marketing the Indian perspective text & cases by Ravi Shanker

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