PVR Cinemas

INTRODUCTION
The magical word in cinemas today is - multiplex. PVR Limited (PVR) is a leading, premium multiplex cinema exhibition company with a growing presence across various verticals of the lifestyle entertainment domain.

Belongs to the film exhibition industry. Film exhibition is key interface between the Film Audience and the Movie content.

By: Rajat Jhingan

THE INDIAN EXHIBITION INDUSTRY

According to the - KPMG report domestic theatrical revenues contributes 57% of the total Rs59bn film industry revenues and are expected to grow at 17%. Overall, the Indian film industry is expected to grow at 16% CAGR it is expected to reach Rs143bn in 2010. Extreme paucity: A UNESCO study estimates that while India currently has 12,900 cinemas, around 20,000 more cinemas are required to meet the increasing demand for film entertainment.

By: Rajat Jhingan

 An analysis of drivers on the supply side: growth in film industry improving real estate supply, and favourable tax exemptions. An analysis of drivers on the demand side: Favorable demographic changes An increase in disposable income in the hands of everexpanding Indian middle class India is one of the fastest growing economies in the world High quality of creative and technical talent pool Indian consumers willing to spent more on Entertainment
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KEY PLAYERS IN THE MARKET

Wave multiplex

Fun cinemas
Inox theatre Adlabs films

By: Rajat Jhingan

PVR CINEMAS
Indias largest cinema chain. Started in the year 1997. 101 screens across the country. First to launch Indias biggest 11 screen multiplex PVR Bangalore. First to receive institutional funding in the cinema industry from ICICI Venture. First to introduce THX approved three way surround sound system with real life sound effects and projection facility with latest Xenon based technology. PVR Pictures made its production debut in December 2007 with Taare Zameen Par, a co-production with Aamir Khan Productions Ltd. Distributed by PVR Pictures.
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Corporate structure of PVR Limited

By: Rajat Jhingan

PVR AS A BRAND
Brand synonymous with quality. PVR has successfully assimilated the Standard operating business and operational practices of Village Roadshow and set new standards in the quality of exhibition in India.

Brought in a whole new paradigm shift to cinema viewing experience, high class seating, state of the art screens and audio visual systems.
By attracting a record number of urban middle & upper income consumers to the complex, major national & international brands - McDonalds, TGIF, Archies, Benetton, Pizza Hut, Nike, Reebok, Adidas - have opened their outlets in the multiplexes, making PVR the destination for complete family entertainment.
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MARKET SEGMENTATION
PVR is a Concentrated Market because they only cater to the premium movie-going audience PVR 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: PVR Movie Goers are people with high resources and can be classified as: Experiencers who seek variety and entertainment. PVR Movie Buffs Consumer Behavioral Segmentation Usage rate: 1/3 of the population attends the movies one or more times per month.

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DISTRIBUTION STRUCTURE
PVR has ventured into the business of film distribution and set up PVR Pictures, a fully owned subsidiary of PVR Ltd. PVR Pictures has also signed a 50:50 joint venture with Ram Gopal Verma's - K Sera Sera's production company 'Factory. PVR/Factory has exclusive distribution rights in Delhi, Uttar Pradesh and Uttranchal. Tie up with Oxigen Services India Pvt. Ltd. book movie tickets through Oxigens pan India retail network of approximately 5000 digital web vendors walk into any Oxigen outlet and book tickets for PVR cinemas PVR tickets directly on the Oxicash website.
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Consumers Information and the consumer insights

Purchasers
How often do you visit Multiplexes?

16 14 12 10 Response in 8 numbers 6 4 2 0 2-4 times a Once a month Once in 3 month months Months Once a year

Majority, i.e, 20 out of 35 respondents visit multiplexed once a month, followed by 15 people who are more frequent and they visit the multiplexes 2-4 times in a month.
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Use and usage behavior

What is your monthly expenditure on movies?

Do you buy the food and the refreshments sold inside the multiplex?

Less than 200 200-400 400-1000 1000 and above

Yes No

Whcih show do you prefer to watch a movie?

Morning Matinee Evening Night

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end-consumer's needs, desires, preferences

Which Multiplex do you prefer to visit?
25 20 Response in 15 numbers 10 5 0 Wave Fun Cinemas Multiplex PVR Inox

PVR came out to be the most preferred multiplex as selected by 25 out of 30 respondents

What is the best and unique feature of the multiplex selected by you?

Seating, Projecting, Screen size, picture and sound quality Service Food Quality Ticket pricing Ease of booking tickets.

Seating, Projecting, Screen size, picture and sound quality, and ease of booking tickets is the most important parameter
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By: Rajat Jhingan

Perceived branding
How are the seating, screen and sound systems?
20 18 16 14 12 10 8 6 4 2 0 Excellent Good Satisfactory Poor

Majority perceive it to be good, followed by some who perceive excellent

What are the standards of food and refreshments available Inside?

20 15 10 5 0 Excellent Good Satisfactory Poor

20 Out of 35 respondents feel that the food quality available inside the multiplexes is good, while 10 respondents feel that the food quality is poor.
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By: Rajat Jhingan

Brand attribute: variable pricing

What are the rates at which the tickets are available for the show selected by you?
25 20 15 10 5 0 50-80 90-150 150-200 200 and above

What makes a multiplex better source of entertainment?

30 25

Added Value

20 15 10 5 0 Ambience Food Court Shopping Mall Crowd

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CONCLUSION
PVR is best among the competitors

Not driven by promotion but through word of mouth.

First mover advantage. People come for the complete experience and not just the movie. Quality of the food and prices need to be improved. Seating and projection are the most important criteria for the selection of any multiplex and not just the price.

By: Rajat Jhingan

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RECOMMENDATIONS
Quality and price of the food need to be improved. Constant innovation required because the competition is increasing. Screening of matches during IPL final stages. Join hands with other competitors to start an anti piracy drive. Very strong scope in other forms of Entertainment like Bowling alley, Gaming and Ice Skating Rink. So PVR should try to accommodate these facilities in its zone. Reintroduce the students discount concept to gain popularity amongst youth which forms a major chunk of its customers.

By: Rajat Jhingan

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THANK YOU

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