THE STORY OF

KONARK CINEMA
PROBLEM:
LOSSES INCURRED BY THE
THEATRE DUE TO VARIOUS
FACTORS.

HISTORY OF KONARK CINEMA

Konark cinema was inaugurated in the year 1968 on 14th

April in the proximity of Rourkela city.
It was formally known as Rupam Talkies.
It was started as a partnership firm between Mr. K.C Singdeo
and his three brothers.

continue...

 Mr. Rameshwar Modak was the manager at

Konark Cinema since its inception.
Later Mr. Sanjiv Kumar Beora was the in charge
of the hall after Mr. Singdeos death

FACTORS LEADING TO STEEP

DECLINE OF THE KONARK CINEMA
Evolution of internet leading to illegal download of
movies i.e. PIRACY.
Black Ticketing.
Poor infrastructure facilities of the hall.
Poor management facilities.
continue
...

 High taxes collected by Odisha government on total

revenue.
Lack of promotions.
Staff cutting in the Rourkela Steel plant.

IMPACT OF PIRACY
1. India ranks 4th in terms of piracy. The Indian film
industry lost $959 million (Rs 4,411 crore) in revenue
and around 5,71,896 jobs in 2008.
2. Evolution of internet led to the illegal downloads of
movies due to which movie theatres were incurring
huge losses.

continue...

3. Pirated CDs/DVDs were easily available at

cheap rates in the market. As a result, people
opted to purchase them rather purchasing movie
tickets.

POOR INFRASTRUCTURE
Limited no of seats with no proper numbering in
specific groups and columns.
Less number of fans none functioned well.
Devoid of proper sounding facilities.

continue...

 Poor interior atmosphere invited mosquitoes.

Small parking areas.

IMPROPER MANAGEMENT
Few number of employee to control the agitation
and panic of customers during heavy rush hours
which resulted in stampede.
Inability of Mr. Beora to make decisions regarding
the future of the hall .

Continue

 Being a risk averse person unlike his predecessor he

focused on profits rather than making investments.
Wanting to play safe was gradually leading to
downfall of the hall.

POOR PROMOTIONS AND

STRATEGIES

Odisha governments implementation of strict clean

and green policy was not allowing the movie
theatres to paste any posters or hoardings on the
walls. As a consequence regular people were
unaware of the shows timings.

continue...

 In order to recover from losses the loss control

policy of the hall was to share the profit 30% &
70% with the distributors in the first week and 35%
and 65% in the second week. This policy led them
enter into a zone of no profit no loss.

STAFF CUTTING IN THE STEEL

PLANT

Initially the ticket price was Rs20 and Rs30 for

the rear stall and circle respectively.This
attracted the middle class people most them
were the steel plant workers.

continue...

 Due to advancement of technology the steel plant

reduced the workers from 55,000 to 18,000.This
impacted the sales of tickets in the theatres which
resulted in the increase of the price of movie tickets.

STP
Segmentation:
1. Price balancing between tickets and services
provided.

Target:
1. More focus on attracting Steel Plant workers
and Railway workers.

Positioning:
1. Primary focus on developing the infrastructure
of the hall.
2. Secondly it would be improving the
management facility.

STRNGTH
Located in the central town area.
Presence of Landmarks like Hanuman Vatika,
Goddess Vaishno Devi Temple attracts
people to visit along with their families.
To run shows, the company purchased
projector from Moscow.

WEAKNESS
Filthy interior atmosphere and overall poor
infrastructure of the hall.
Poor leadership skills of Mr. Sanjay Beora.

OPPORTUNITIES
Hall can be multiplexed which will attract people.
Like its other counterparts the hall can be converted
into a mall, or given to rent as an office space etc.

THREATS
After 1995, evolution of INTERNET
TECHNOLOGY causes a severely damage to the
business.
The PIRACY of CD/DVDs and Black Marketing
also became a threatening to the Market.

LIST OF PROBABLE
SOLUTIONS
1. Pirated and copyright violating websites should be
banned by I&B ministry in order to tackle the
problem of piracy. This would be big boost for the
movie industry and theatres.
2. In street level the the people selling CDs or found
black ticketing should be arrested by the police
and strict action should be taken against them.
continue...

3. The infrastructure of the hall should be improved,

introduction of Dolby sound systems, larger parking
areas, repairing of ceiling fans and seats, controlling the
pests inside the theatre will definitely attract the crowd.
4. Regarding the loss control policy profit margin should
be a bit more for the theatre.

continue...

5. Projectors should be purchased from within the

country rather than from Moscow, this should
save a huge transportation charge.
6. Regarding the choice of tickets and seats the hall
should collaborate with online ticket booking
sites.
continue...

7. The show timings can be published in the local

newspapers for the awareness of the general people.
8. In order to compete with other theatres Konark Cinema
should be multiplexed.
9. Mr. Beora being a risk averse ,safe playing person
clearly lacks leadership skills .He should sell his
ownership claim to a person who has a vision for the
theatre and is able to take the risk and make investments.

THANK YOU