PREFACE

One of the fastest growing sectors of the economy is entertainment industry. Entertainment

today dictates our lives, education, careers, earning money, all lead to the quest for higher and

sophisticated entertainment. One seeks knowledge to improve the quality of life. The quality of

life improves when the basic requirement of life are supplemented with entertainment in some

form or other. Current scenario the entertainment industry is totally different from the past, as

the modes of media used for providing services were different before the 20th century when

compared with the present media. The cinema exhibition industry in India is growing at 10%

per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as

well as second and third tier cities. Favorable demographics in a cinema-crazy nation, tax

exemptions, and quality locations such as malls, are driving growth of multiplexes in India.

Most of the multiplexes in India are anchor tenants in the large format malls making a favorite

destination for the youngsters as well as the families. Multiplexes captured the market as

complete family entertainment centers. The digital revolution has helped the Media and

Entertainment industry to go digital. There are more than 100 digital cinemas in India today.

They, along with the multiplexes have completely transformed the experience of the viewers.

With an increase in the incomes of the people and increasing expenditure on the leisure

activities, multiplexes are poised for high growth in India. Other than the sale of the movies

tickets, Food & beverages is the major source of revenue for the multiplexes. Space economies

and the optimal utilization of the capacities are the major advantages or benefits that the

multiplexes enjoy over single screen theatres. PVR, a pioneer and a trailblazer in Multiplex

development in India, is the largest cinema exhibition player in the country today. The

company began its commercial operations in June 1997 with the launch of PVR Anupam in

Saket, India's first multiplex. By introducing the multiplex concept in the country PVR

Cinemas brought in a whole new paradigm shift to cinema viewing experience, high class

seating, state of the art screens and audio visual systems. This catapulted the company to

command a significant presence in New Delhi, National Capital Regions like Gurgaon &

Noida, Bangalore, Hyderabad, Mumbai, Lucknow and Indore, making it the largest cinema

exhibition chain in the country. PVR, in order to solidifying its exhibition growth and strength

also ventured into the business of film distribution, set up PVR Pictures, a fully-owned

subsidiary of PVR Ltd. PVR Pictures, a strategic business unit, specialises in acquisition and

local distribution of films

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TABLE OF CONTENTS

SERIAL No.

PARTICULARS PAGE No.

1. CHAPTER 1- INTRODUCTION 1

1.1 Entertainment Industry 2

1.2 About the Company 7

1.3 Marketing Strategy 11

2. CHAPTER 2 – REVIEW OF LITERATURE 17

3. CHAPTER 3 – NEED AND SCOPE OF THE STUDY 24

3.1 Need of the study 25

3.2 Scope of the study 26

4. CHAPTER 4 – RESEARCH METHODLOGY 27

4.1 Objectives of the Study 28

4.2 Research Methodology 29

4.3 Limitations of the Study 31

5. CHAPTER 5 – DATA ANALYSIS AND INTERPRETATION 32

6. CHAPTER 6 – CONCLUSION 44

6.1 Findings of the Study 45

6.2 Recommendations 47

6.3 Conclusion 49

7. ANNEXURE 50

7.1 Bibliography 51

7.2 Questionnaire 53

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CHAPTER 1

INTRODUCTION

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ENTERTAINMENT INDUSTRY

Entertainment consists of any activity which provides a diversion or permits people to amuse

themselves in their leisure time. Entertainment is generally passive, such as watching opera or a

movie. Active forms of amusement, such as sports, are more often considered to be recreation.

Activities such as personal reading or practicing a musical instrument are considered to be

hobbies. Entertainment may also provide fun, enjoyment and laughter. The industry that

provides entertainment is called the entertainment industry. There are many forms of

entertainment for example: cinema, theatre, sports, games and social dance. Puppets, clowns,

pantomimes and cartoons tend to appeal to children, though adults may also find them

enjoyable.

The concept of leisure, and the freedom to choose individual pastimes and leisure pursuits, is a

20th century development for the mass population. Historically, only the wealthy could divide

up their time to engage in activities of their choosing. The working classes had neither the time

nor the money to enjoy leisure activities on a broad scale. The development of leisure is seen

predominantly in westernized cultures, where it has become increasingly sophisticated. Over

the years, as working hours have shrunk, people found that they had more free time on their

hands to spend on leisurely activities. Sitting home with a book could only go so far, and thus

an entire industry sprung up to make money on those who wanted “something to do.” This is

the leisure industry, which actually spans numerous types of industries. Leisure industry fields

include: restaurants, amusement parks, theaters, hotels, gaming places, venues for musical

groups or lectures, and sporting arenas. Also one might include spas, gyms, and areas where

one can conduct sports, like golfing or boating as part of the leisure industry. Anything that is

made to be enjoyed, and is made to occupy one’s leisure hours is essentially part of the leisure

industry. Leisure being what we do more or less voluntarily and pleasurably within our way of

life; leisure services being all those occupations and organizations that deal with leisure

behaviour — from tourism to therapeutic recreation to parks. The reinvention of leisure is

going on right now but, just as fish presumably do not see water; it may be hard for those of us

interested in leisure services to see such change. Perhaps these changes can't be seen (or

understood) directly, but instead require that professionals and students learn more about what

is changing in our environment, our economy, our society, our use of technology, and our

values. Given the accelerating change in our world, it seems leisure will be changed for those in

both the modern and developing worlds. It would follow that the organizations that serve

people providing a broad array of recreation, park, sport, cultural, theatres, therapeutic, tourism,

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hospitality, hotel, restaurant, and other "leisure services" will be, themselves, in a process of

change, reinvention, reconceptualization and adjustment.

The entertainment industry (also informally known as show business or show biz) consists of a

large number of sub-industries devoted to entertainment. However, the term is often used in the

mass media to describe the mass media companies that control the distribution and manufacture

of mass media entertainment. In the popular parlance, the term show biz in particular connotes

the commercially popular performing arts, especially musical theatre, vaudeville, comedy, film,

and music.

Entertainment Industry in India has registered an explosive growth in last two decades making

it one of the fastest emerging industries in India. Television itself witnessed its transformation

from a single government owned channels to a medium telecasting more than 300 national and

regional channels. At present Indian film industry or Bollywood is a perfect combination of

entertainment and commercial sector, producing close to thousand movies in a year in various

Indian languages. Indian film industry supersedes Hollywood in terms of movie production

quantity by more than three times. As per the recent report by Price waterhouse Coopers

(PwC), Indians are likely to spend more on entertainment in the coming years with a steady

growth in their disposable income. And as per the combined survey report by KMPG and

FICCI, the entertainment industry in India is expected to expand by 12.5% every year and is

likely to reach US$ 20.09 billion by the year 2013. Key sectors of Indian Entertainment

Industry are - Music, radio, digital media are some of the other fastest growing sectors in the

Indian entertainment industry. Entertainment industry includes – Film Industry, Theatre

Industry, Television Industry, Music Industry, Radio Industry, and Animation Industry. The

Government has introduced some reform policies to trigger the growth of entertainment

industry in India. They are:

Allowing 100% FDI on advertising and film industry through regular channels

Authorizing 49% foreign stake in DTH and cable TV

Allowing establishment of uplinking destinations to private TV broadcasters for satellite

uplinking from India

Certifying the repute of an industry to the movie sector

It has given its consent on the guidelines for Headend-in-the-Sky (HITS) operators, an

equipment that will offer electronic cable content to Indian viewers

Permitting Foreign Direct Investment (FDI) in FM radio industry with a 20% restriction

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Paving way for FM Radio functioning to the private sector

Including development projects of film industry in its five-year plans and allocating

US$ 50.13 million to it.

The Indian film industry is the largest film industry in the world in terms of the

number of films produced and admissions each year. Revenue for 2010 was estimated at

Rs. 89 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. Nearly

80% of Indian Industry revenues come from Domestic and Overseas Theatrical. On the

contrary US Film Industry earns only 35% from box office sales and remaining 65% is derived

from other revenue sources. This clearly signifies the onset and potential of Multiplexes in the

Indian Film Exhibition Sector.

The story of single-screen theatres has reached its sad end in India. In India, the single-screen

theatres with poor facilities and zero-service oriented staff are on last stage of their life. These

are getting converted into multiplexes. India's multiplex bandwagon has gone beyond the

metros to redefine entertainment in B and C class cities like Indore and Jaipur. These theatres

have fully air-conditioned halls with marvellous ambience, plush chairs, excellent audio-visual

quality, better infrastructure, professionally-oriented services, proactivity and allied facilities

like restaurants, play zone etc. Their aim is to provide world-class entertainment services.

Multi-screen theatres have opened new vistas for the entertainment industry. After the entry of

corporate titans like Reliance, the scenario of entertainment services has become more

professional than ever. These theatres have changed the entire movie-going experience. These

theatres are known for marvellous ambience, excellent audio-visual quality, better

infrastructure, professionally oriented services, proactivity and allied facilities. After gaining

stronghold in metros the multiplex players are now entering into B and C class cities. Cities

like Lucknow, Indore, Nasik, Aurangabad, Madurai, Kanpur, Amritsar and Jaipur are the new

destinations of multiplex players. Fuelled by rising income of people and advancements in

technology, these multiplex are spreading red carpets for a wonderful movie-going experience

of viewers.

Multiplex is a medium that offers a person composite entertainment comprising of a one stop

destination to shop, entertain, and dine and watch a Varity of movies under a common roof.

Multiplex are one of the means of lifestyle that offer to viewers the choice of watching a movie

in a five star or three star environment. The Multiplex model is based on concept of umbrella

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entertainment built around a primary anchor- movie. The revenue streams, however, do not

necessarily centre on a single anchor.

Typically, the possible income generating channels in a Multiplex can include.

The box office collections

Rent from display system

Food & beverage

Product lunch rentals

Promotions by companies to promote consumer goods.

Why there is a Multiplex boom? - In India there are about 20,000 theatres and there is a plenty

of space and resources for an equivalent number of theatres to be started all over. Thus, there is

a high growth rate for the multiplexes in the entertainment industry. Due to the high growth

rate of the multiplex industry. Various benefits are provided by the government such as overall

tax concessions, reduction in entertainment tax and so on in order to motivate the industry

person. Some of the other factors involved are given below-

Aspirations: There is a huge group of people who are very ambitious and have a status

symbol (premium or the top class) or desire to possess it. Thus, these groups of people

prefer to have an edge over others (middle and lower class) by viewing movies in a

multiplex rather than a single screen theatre as it is a matter of pride and honour for

them.

Attitudinal Change: Gone are the days when one used to think about saving the money

by not going to the theatre along with the family to watch a movie and instead go out

for a picnic to enjoy the whole day. Gradually, this concept has changed now because if

aperson plans to spend his whole day for enjoyment along with his family, then

multiplexes are the best option as they have everything from shopping stores to

restaurants, cafeteria, games corner and so on.

Combination of various facilities: The concept of satisfying the consumer under one

common roof is growing rapidly all over the world. Thus there are two types of

combinations found; mall with multiplex and multiplex with shopping facilities and

other amenities.

More number of screens: This is one of the most important reasons for the multiplex

boom. These are more screens, roughly 3-5, when compared to the normal movie

theatre.

Risk minimization: Also, the benefit that the multiplex has over the single screen movie

theatre is the ‘risk minimization’ factor. The multiplex has various partners, various

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company collaborations, and thus they work together to achieve the goals set up by the

organization. Also, the risk is minimized when the space is let out to various corporate

organizations such as Reliance, Vodafone, HDFC, Citibank and so on for product

launches and various promotional launches.

Key players of multiplex industry are-

Fun Cinemas is a cinema chain in India based in Mumbai owned by the Essel Group

and promoted by E-City Ventures.

INOX Leisure Limited is the diversification venture of the INOX Group into

entertainment and is a subsidiary of Gujarat Flurochemicals Ltd.

PVR (Priya Village Roadshow) Cinemas is one of the largest cinema chains in India.

The company, which began as a joint venture agreement between Priya Exhibitors

Private Limited and Village Roadshow Limited.

BIG Cinemas, a division of Reliance MediaWorks Limited, a member of the Reliance

Anil Dhirubhai Ambani Group(ADAG), is India’s one of the largest cinema chain with

about 516 screens spread across India, US and Malaysia and Netherlands and caters to

over 40 million consumers.

ABOUT THE COMPANY

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Priya Exhibitors Pvt. Ltd is a part of the diversified Bijli Group, which has interests in

transport, finance and construction sectors all over India. After a downturn in the industry in

late 80s when the onslaught of video wars at its peak cinema has now been rejuvenated with the

latest international trends in cinema exhibition reaching India’s shores swiftly with the arrival

of satellite TV. The capitals cosmopolitan audience is becoming increasingly aware of the

advanced cinematic technology that enhances the movie going experience and this has whetted

their appetite for watching movies on the “big screen“. To cater to the increasingly

sophisticated tastes of the audience Priya exhibitor Pvt. Ltd. totally refurbished the existing

cinema in June 1991 including installation of a Dolby stereo sound system. They also gained

exclusive rights to screen blockbusters from major distributors mainly Warner brothers, 20th

century fox, united international pictures, small wonder then that the cinema has become the

focal point for entertainment in the capital for both the young and old attracting over 30,000

patrons a week. In fact, “Speed” set a national box office world record of Rs.785000 in its first

week of screening at PVR (the highest ever for an English film), which is remarkable

considering the relatively low price of a cinema ticket in India. Buoyed by the overwhelming

success of the cinema after upgrading, Priya exhibitors ltd have taken the next initial step for

setting up the first multiplex in the country in a joint venture with Village Roadshow Ltd,

Australia’s leading Entertainment Corporation.

PVR is a brand name synonymous with state-of-the-art cinema exhibition in India. PVR

specializes in developing and operating state-of-the-art Multiplexes. PVR Cinemas are the

leading cinemas in the country with an emphasis on design, technology and service. Over the

last three years, PVR has established itself as a very strong brand associated with movies,

quality exhibition and youth-targeted promotions.

The company was conceived as a Joint Venture between the Bijli family, headed by Mr. Ajjay

Bijli as Indian Promoters and Village Roadshow Limited of Australia, one of the largest

multiplex operators in the world with more than 1500 screens under operation.

PVR FIRSTS

First to launch a multiplex in India - PVR Anupam Saket, Delhi

First to launch India's biggest 11 screen multiplex - PVR, Bangalore

First to bring premier movie viewing to India with the exclusive Europa Cinema and

Lounge at PVR Gurgaon

First to introduce Gold Class Cinemas in India at PVR, Bangalore

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First to form a foreign joint venture with Village Roadshow, Australia

First to receive institutional funding in the cinema industry – from ICICI Venture

First to offer computerised & online ticketing

First to accept credit cards in cinemas

First to introduce mobile based information & ticketing service

First to launch a loyalty program for movie-goers in India

First to launch 'Movies First' - a monthly magazine that updates the movie lovers on the

latest happenings in Bollywood and Hollywood.

RELATIONSHIP WITH VILLAGE ROADSHOW - In 2002, Village Roadshow was

undergoing a strategic and business restructuring worldwide. As part of their worldwide

strategy, they decided to concentrate on the Production business and on Exhibition business

only in those territories where they have majority control and have the critical mass of screens.

In line with this strategy they exited from almost 20 countries worldwide, including India.

Village Road show’s inability to support the growth plans of PVR, the Indian promoters

offered to buy out the Village stake and the joint venture was mutually decided to be terminated

in June 2002. However, though Village Road show exited as a joint venture partner, the

excellent relationship between both companies continues and is reflected by the fact that PVR

continues to have an exclusive long term technical and marketing services arrangement with its

erstwhile partners on a long term basis. During the 5 years of joint venture with Village, PVR

was exposed to best business and operational practices in the Cinema Exhibition industry and

was able to revolutionize the way to go to cinemas.

DIVERSIFICATION - PVR has also ventured into the business of film distribution and set up

PVR Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures specialises in acquisition

and local distribution of films. PVR Cinemas has also come out with a film magazine. PVR

Movies First, as the magazine is called is the latest addition to PVR's big bouquet of offerings

in the movie entertainment business. It is a monthly magazine and is expected to fulfill the

information needs of the die-hard movie fans.

MARKET PENETRATION AND DEVELOPMENT - Beyond the existing markets, PVR is

contemplating implementing new multiplex projects in Delhi, NCR, Mumbai, Hyderabad,

Bangalore and Indore.

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PVR AS A BRAND - 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. The quality of cinema viewing has made the PVR brand synonymous with high quality

cinema viewing in the country. This has enabled them to enter into strong corporate alliance

partnerships and co-marketing exercises with leading brands like Pepsi, Evian, Samsung,

Whirlpool, Hero Honda, Bharti, American Express, Master Card, Pizza Hut, Cadburys etc. This

has generated additional steady stream of revenues for the company.

SWOT ANALYSIS OF PVR CINEMA –

Strengths –

First mover advantage in the multiplex business in India

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Updated technology

Premium positioning

Plays Hindi, English, Regional & foreign movies

Locational strength

Ambience

Started the concept of ‘a complete movie going experience’

Market leader

Very strong brand equity

TOM recall

‘Original’ multiplex

Blend of retail & entertainment

Weaknesses –

High cost perceptions

T.A very specific (not mass service)

Disjointed images for all PVR properties

Customer retention

Parking problems

Opportunities –

First mover advantage

Growing family spend on entertainment

Large film industry – over 200 hindi films every year

PVR loyalists

Threats –

Competition blooming large

Government’s interference

Entertainment Tax

Other Multiplexes as competition

Other ways of entertainment

Accused of increased crime rate

Piracy No control over surroundings e.g. West Delhi

Movies becoming bigger than the brand

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MARKETING STRATEGY

Marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitive

advantage. Marketing strategies serve as the fundamental underpinning of marketing plans

designed to fill market needs and reach marketing objectives. Plans and objectives are generally

tested for measurable results. Commonly, marketing strategies are developed as multi-year

plans, with a tactical plan detailing specific actions to be accomplished in the current year.

Time horizons covered by the marketing plan vary by company, by industry, and by nation,

however, time horizons are becoming shorter as the speed of change in the environment

increases. Marketing strategies are dynamic and interactive. They are partially planned and

partially unplanned. Marketing strategy involves careful scanning of the internal and external

environments which are summarized in a SWOT analysis. Internal environmental factors

include the marketing mix, plus performance analysis and strategic constraints. External

environmental factors include customer analysis, competitor analysis, target market analysis, as

well as evaluation of any elements of the technological, economic, cultural or political/legal

environment likely to impact success.

MARKETING STRATEGIES OF PVR CINEMA

Segmentation- On the basis of customer preferences, we may classify PVR 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, PVR is a Concentrated Market because they

only cater to the premium movie-going audience i.e. SEC A and SEC B. PVR Cinemas has

approx. 22 million movie goers per month.

Targeting- PVR being the first of its kind has always been a market leader and therefore its

offering to the customer is Innovative. PVR has premium pricing and they target mainly SEC A

and SEC B. PVR has brought to its customers the experience of Luxury Cinema. PVR uses the

concentrated method as they have target a much focused audience out of the entire masses.

PVR witnessed tremendous success Europa Lounge in Delhi. PVR’s chain use Differentiation

method for pricing. It practices different price slabs for different target audience.

Positioning - PVR had, and still has a very well planned market position. Its premium

positioning affects the customers perceptual positioning. Therefore, they decided on their

marketing strategy and pricing, keeping the target market in mind. In case of PVR, they make

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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 50, it is the task of its marketer to

ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the

experience.

Entertainment Marketing: Marketing of entertainment services is referred as entertainment

marketing. Entertainment services include screening of movies, their premiers, press & media

required special screening of movie show & also different types of eatables served within the

multiplex is divided into two types namely:

Movie Marketing: this is one of the most important areas which is marketed & helps in

creating a brand image for the company. The main focus is to market the movies that are big

screened along with creating & making aware the people about the multiplex. Also during such

premier’s press & various media channels are invited to cover the whole premier event which

has a positive effect on the multiplex. As stars are called for the premiers of special movies

along with outside people, this act as a “synergy effect” and thus more & more number of

people become aware about the multiplex and its day to day activities. All above this with the

help of various media channels, huge & extensive advertising is done for the movies which add

to the recall value on the minds of the people.

Café Marketing: This is an altogether new concept started and undertaken by multiplexes for

marketing its movies. It basically helps in promoting its movies with the help of eatables sold

in the cafeteria within the premises of the multiplex. Here the eatables are named after the

movies & various film stars during the release of much hyped & successful movies.

Special Events Marketing: the positive point that multiples gains over others is that along

with the screening of various movies it also screens special event such as F1, cricket matches,

various documentaries and social messages that are to be passed n community. Multiplex also

organize celebration of religious festivals as well as special days such as valentine day,

friendship day, Independence Day & republic day & events such child fest. Also, it arranges for

many events & birthday parties as per the customers’ demands. Such activities give unique

experience to its customers who feel the same home & personalized atmosphere present there.

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Tie up With Various Corporate: Multiplex has tie-up with many corporate associates as they

help each other in their day to day activities. Both of these go hand in hand. Their relationship

is of “give & take” type; it is like the corporates organize or they host the events that are

conducted in the multiplex & in turn the multiplex gives it sales indirectly.

.

Movie Shootings & Advertisements: Multiplex also allows shootings for movies &

advertisements as it helps to publicize & create a brand name for itself. Movie shootings

advertisements take place here because of the ambient factors & also space the surrounding.

Also it acts as a business activity as the movie makers are not given the premises free of cost.

Special Screening of Hollywood Movies: A new concept started by many multiplex is the

screening of Hollywood movies at their theatres. These special screenings are referred as

“Midnight Matinees”. Midnight Matinees is another innovative attempt on the part of multiplex

to combine various elements of leisure & partying with cinema viewing.

MARKETING MIX – 7 Ps

1) PRODUCT - 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 customer’s

perspective. Core Benefit is the MOVIES that the customer comes to a cinema hall for, along

with the attendant experience of PVR. The expected product in PVR’s case would be ambience,

hygiene, good service, parking, candy bar etc. PVR has augmented its product offerings:

Luxury cinema - PVR has brought to its customers the experience of luxury cinema.

After the tremendous success of Cinema Europa in Delhi, PVR Cinemas has introduced

the concept of luxury viewing to Bangalore as well. Gold Class Cinemas have been

introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each

equipped with 32 plush and fully reclining seats and generous legroom. Patrons can also

enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent

pre cinema experience with scrumptious food and beverages.

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Bulk Bookings - There are special arrangements for bulk bookings (of twenty or more

tickets) done by corporate. Details can be filled online and PVR executives themselves

get in touch with the concerned people.

E-booking and tele-booking - PVR also provides the factility of e-booking, which was

first started by PVR, it has now been copied by Satyam cineplexes as well. It also offers

telebooking.

Parties at PVR - PVR has also started helping customers in planning birthday/kitty

parties at PVR. They have made PVR a wholesome entertainment experience than just a

movie watching spree.

Movie newsletter and magazine - To keep its customers hooked on to movies and to

PVR, it has also come out with an online newsletter called ‘PVR Wire’ is directly

mailed to the subscribers and can also be downloaded from their website. They have

also launched a movie magazine called ‘Movies First’.

Movie vouchers - They have also taken out the unique concept of movie vouchers

which people can use as gifts. Many corporates have also started using these as

incentives and rewards for their employees. The vouchers are available in

denominations of Rs 100 to Rs 350 and a minimum of 25 coupons needs to be

purchased to avail of the offer.

2) PRICE - PVR when started off had a huge advantage of being the only one of its kind in

Delhi to begin with. Therefore, they could charge a higher amount to its target audience, as

they did not hesitate to pay the sum for the new concept. This high pricing helped them make

maximum gains. Also, PVR had, and still has a very well planned market position. Its premium

positioning affects the customers perceptual positioning.In case of PVR, they make use of all

their tangible elements to prove to their customers that their movie tickets are worth the price

they are paying. Also, since some of the other movie theatres (which are not multiplexes) are

still offering movies at rates as low as Rs 35, it is the task of its marketer to ensure that PVR

comes across as a superior brand in terms of cinema viewing as well as the experience. The

movie theatres market is a Free Market, even though the government in the past regulated it.

This allows PVR as the market leader to set its own prices. Prices that had originally started

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from Rs 125 (for evening shows) and Rs 90 (for morning shows and weekday plans) have

increased to a high of Rs 150 and the lowest is Rs 100. The high pricing however has not led to

any change in the footfalls that PVR gets. Even in slighter crowded shows, the occupancy rates

as low as 35% reaches PVR’s break-even points. The pricing at PVR Europa is Rs 160 and a

Gold Class ticket is charged at Rs. 750. It offers superior ambience, environment, seating,

viewing etc in the sum.

3) PLACE - The issue of location here plays a very important role, as all PVR Cinema Halls

are stationed at good locations in the city, which gathers a large number of footfalls for them

every day. PVRs usually open at an eventful yet untapped location, followed by which (as we

saw in case of Anupam PVR Saket) other retail chains get opened around it as well. Their

places are always well situated and are well linked. PVR does not have any other channel of

distribution, as their service is sold solely at their chains. They do not follow any franchisee

outlets, even though they indulge in ticket sales online and via tele-booking. The only

intermediary involved for procuring movies are Indian as well as international movie

distributors, by way of whom they acquire the movies.

4) PROMOTION - PVR 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 involved. Apart from that, they usually

have contests pertaining to latest festivals like Valentines Day, New Years Eve, Oscar Movies

Week etc. PVR also has a host of online promotional contests associated with movies. They are

also in collaboration with cellular services like Airtel have SMSand- win contests and give out

free tickets to the winners. Also, PVR attracts a lot of commercial shooting / media coverage

via programmes etc which promotes it as a brand in a big way. Organizing Star Events on

Premiers of movies like ‘Kuch Kuch Hota Hai’ helps PVR relate better with its target audience

i.e. the youth. The whole PVR banner and its exterior environment including movie hoardings,

banners etc help promote the concept of movie viewing as well as PVR as a strong and

successful brand. PVR also hosts premiere shows with leading movie stars visiting the various

PVR cinemas. They also host numerous fun events for children while screening animations etc.

5) PEOPLE – This indicates the Employees and Customers. Service must be fully developed

and internally accepted before it’s launched. PVR indulges in the following: Complimentary

ticket on payment of entertainment tax amount at any point of time (2 days in advance) to the

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employees, subject to Availability, Tickets to employees are given for: 1+1 oneself and

employees guest and 2 for immediate family i.e. parents, spouse etc. This has been done to

encourage movie going among employees as well as customers, Gives 10 national holidays to

employees, 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 PVR 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, all employees

are taught to deal with safety problems like accidents, Fire, bomb threat, armed robbery etc. 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. Lastly, it is

made sure that all employees represent PVR in the best way possible and sell it as a strong and

well-established brand. All 55 employees are given full details on what they are representing

and informed all about PVR to make them a part of the family. For the customers’ convenience,

it is ensured by the organisation 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.

6) 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, colours of interiors, tickets, labels, logo of the

organisation etc help to formulate a good unified corporate image / identity.

7) 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.. PVR was the first to install surround sound and Dolby in Delhi. Gurgaon

7 screen megaplex is equipped with the latest THX approved sound system for the real life

sound effects and the state of the art Xenon based projection technology.

18

CHAPTER 2

REVIEW OF LITERATURE

19

REVIEW OF LITERATURE

Nandini Raghavendra (2010) “Multiplex industry: Ready for consolidation”

In the five years since the Anil Ambani-led entertainment group (then Adlabs, now Reliance

Mediaworks, RMW) bought a controlling stake in Manmohan Shetty's Adlabs in a whopping

Rs 350-crore deal, along with their 16 multiplex screens, the industry has not seen big buzz

deals. Till, Shravan Shroff decided to sell his screen dream — Fame (96 screens) to Inox. There

is still a huge untapped potential. The big five players i.e Inox, Adlabs, PVR, Waves, Big

Cinema, in a unified voice feel there is a lot of space to grow. The problem, if at all, is not of

too many players right now but factors like piracy, shorter windows with satellite and home

video eating into theatrical and, of course, a low success ratio of films. These plus the

economic slowdown, saw expansion plans go slow. So, due to a host of reasons, the present

may look a bit bleak (add IPL to that list) but the long-term scenario looks intact. According to

the Ficci-KPMG 2010 report on the media and entertainment industry, by 2013, the number of

plex screens in India is likely to cross 1,600. "Multiplexes have become an important and

integral part of the domestic theatrical industry. They have made a significant impact in

bringing viewers back to the cinemas. This is reflected in that as much as 60% of Indian

theatrical revenues for Hollywood and Hindi films, come from the multiplexes while for South

Indian films, it is 25%. Given the experience of consumers and part digitalisation, the

importance of plexes in the distribution space is here to stay," says executive director and head,

media & entertainment, KPMG, Rajesh Jain.

S. Romi (2008) “PVR Cinema- Success Story”

From rickety trucks to swanky malls. It’s been a long journey for Ajjay Bijli. Born in a family

that was into trucking business, he was asked to look after his business after he completed his

studies. With Priya, Mr Bijli had tasted blood and now he wanted more. “Since we screened

English movies regularly at Priya, I was in constant touch with Hollywood companies like

Columbia, UV and Warner Brothers during that period. The market for English movies in India

was growing in a major way and these companies were looking for an outlet in India. I also

came in touch with Australian company Village Roadshow that was looking for a partner in

India. Soon we were partners,” says Ajjay. So was born the joint venture Priya Village

Roadshow Ltd or PVR. Together they started setting up multiplexes for India. As luck would

have it, Anupam was on the blocks. Mr Bijli grabbed the opportunity and turned it into a

20

multiplex in 1997. “We were amazed with the kind of response we got.” Meanwhile, the

priorities changed for his overseas partner, Village Road Show, post 9/11. The lull in 2001

forced it to focus on the American market and movie production leaving the field here open for

the Indian partner. So, PVR or Priya Village Roadshow Ltd became PVR Ltd. “Now, we only

have a tie-up with them for technical backup.” Today Mr Bijli has ICICI Ventures as his

partner which owns 32 per cent stake in the company. Mr Bijli considers this as no mean

achievement. Entertainment is a challenging business as every city has a different profile and

we have to understand the people’s behaviour there and cater to them.

Gummerson (1996) “Relationship Marketing”

He tried to explore the extent of application of relationship marketing in service sector.

According to his findings, the service users hold good image of the company if it provides

effective CRM services. He found that poor relationship marketing caused discontinuation of

services by many customers. The same concept applies to Indian customers too. Service

industry players need to put thrust on this area to maintain profits on a sustainable basis.

V.Kumar (2009) “Using a Customer-Level Marketing to enhance Firm’s Performance”

Customers are now demanding personalization and customization of products and services

ranging from video-on-demand and personal video recorders (e.g., TiVo) to niche brands and

product extensions that help customers feel unique and stand out from the crowd (Bianco

2004). This shift in the way firms do business is not only evident it is also clear that the

academic research is changing its course as well to match with the climate in the industry. Any

firm that looks to sell products or services to the market needs to treat its customers as assets.

For example, AT&T was adopting a macro-level strategy to deal with customers (Squeo

andWilke 2004). As a result, AT&Tlagged behind its competitors and is getting out of the

landline business (not acquiring new customers) and merging their wireless business with

another service provider. However, DISH Network, which used to offer standard packages of

television channels, realized the shift in customer needs and adopted a micro-level (customer)

strategy to offer customized channels (Grant 2004). As a result, the growth experienced by

DISH Network is phenomenal. Thus, resources need to be properly allocated to various

marketing strategies, which only can be accomplished if a firm can identify its best customers

and prospects and send those individuals the right marketing message at the right time.

21

Jain and Dhar (2003) “Effectiveness of CRM”

They studied the determinants of customer relationship management effectiveness in India.

They used in-depth interviews focused on behavioural dimensions of relationships. It was

found that customer relationship management emerged as a core business process for

maintaining and enhancing the competitive edge in modern business affairs. In the area of

services, the issue of customer relationship management holds much importance. Many a times,

it is the CRM that becomes the deciding factor while selection of services. Customer loyalty is

directly related to the CRM efforts made by the service sector companies.

Sarangi (2007) “Entertainment Industry”

It highlights the aspect of quality of entertainment service industry in India. The objective was

to define the parameters of service quality satisfaction with reference to entertainment services

in a metro city. In a survey of 300 people visiting the multi-screen cinema halls and luxury

hotels, various dimensions of services were found. Customers in metros and other cities have

started watching movies in multiplexes which provide excellent ambience and quality. When

asked about the factors causing the visit, the customers gave first preference to comfort and

ambience provided in the place. For this aspect, the customers were ready to compromise on

cost and distance factor. Besides ambience, promptness in services was another factor leading

to satisfaction of customers.

R.J.Cumberworth (2001) “Theming and Design as a Marketing Medium”

The concept of Theming and design has been related to leisure stimulation, play theories and

service marketing and the practice analyzed thoroughly, using relevant and up to date

examples. Therefore, in summary it is possible to state that the themed entertainment industry,

and the theme park industry in general terms is developing through organic growth. Much of

this is down to technological innovation and advancements and indeed the talent to put such

ideas into practice. Ideas are also developing in accordance to marketing practice, with new

ways of ensuring customer satisfaction and enhancing the core service product that a theme

park offers. Technology and innovation is allowing the ability to construct higher, faster, longer

rides and attractions but when coincided with Theming, complete new environments can be

produced and with the use of virtual reality, complete false environments are being created.

There is a coming move away from the traditional iron ride, although they are by no means in

decline, technology and VR is being further developed to create more ambitious 'dark rides'

where story telling combined with special effects creates visitor immersion, which is also

22

apparent in restaurants, shops and other service orientated aspects. Thus, in reflection, the

future of the industry remains to be seen; yet serious adaptations need to be considered as

visitors demand meaningful and often educational entertainment, with particular consideration

to the increasing gray market.

Charles R.Akland (2003) “Screen Traffic: Movies, Multiplexes and Global Culture”

Scholars of film exhibition are concerned with the fraught intersection of political economy and

cultural studies. In this timely new study, communications scholar Charles Acland raises the

bar for post-nationalist discussions of cinema culture by insisting that film going must be

approached as a complex of industrial and cultural phenomena. Using a cultural materialist

approach inspired by Raymond Williams, Acland argues that "film" must be considered as a

highly mutable site of international economics and individual emotional responses,

encompassing technologies of reproduction alongside patterns of reception. Although film has

arguably been a global enterprise since Hollywood began to aggressively develop the

international market in the 1920s, Acland makes a compelling argument that film culture

became global in a new way in the 1980s when cinema was reconfigured as a vertically

integrated industry in the wake of deregulation policies. Thus, his study concentrates on cinema

exhibition practice as a phenomenon of global culture from the mid-1980s to the mid-

1990s.The primary phenomenon under consideration here is the shift in exhibition practices

that emerged between 1986 and 1998, a period when grimy, utilitarian suburban multiplexes

were replaced across North America by monstrous exurban space age megaplexes. Acland

describes the motion picture theatre as an "essential location at which discourses of global

audiences are being worked out and applied," and as "sites for the mobility and flow of bodies,

texts, and money." He associates these new theatrical settings with "shrunken amusement

parks," a logical next step in the convergence of the corporate entertainment industry during

this period. As Acland points out, in retrospect, this moment might also be seen as the last gasp

of the cinema as such. Since 1998, the emergent technology in cinema exhibition has been

digitalisation, which potentially obviates many of the metropolis/hinterland relations that have

traditionally shaped the cinemagoing landscape. Internet distribution of pirated mainstream

films and independent productions threatens to displace–or at least radically alter–the

importance of the cinema as a site of cultural dissemination.

23

I.Nod (2006) “The Entertainment Industry”

The entertainment industry demonstrates a multi channel structure, with companies owning

several forms of companies in each link of the value chain. The industry is converging toward a

single model, which combines production of content with multichannel distribution. All

companies try to sell content in many ways, e.g. movie, TV show, book theme park, etc. All but

two of major players in the industry conform to this model. Non-conforming companies have

regulatory barriers (foreign owned) or do so out of choice. Some companies (Disney) buy

distribution channels, i.e. networks (ABC); others build their own (News Corp., Time Warner)

or do both Viacom (WB, CBS). The newest trend is to combine production and distribution

with added distribution possibilities of internet (AOL Time Warner, Vivendi Seagram). In this

industry we find vertical integration through direct ownership, as well as commercial

transactions via long-term contracts and one-time “spot market” transactions. Ironically, even

the resources can be “owned” – as in the case of the old “studio system” which tied actors to

studies for a number years. In today’s industry, these arrangements are still in place, with actors

signing on for “x number of picture” contracts with various studios. Production companies can

either be independent or owned by integrated companies. In either case, production from one

company may be sold to a competing network or distributor. Finally, local television affiliates

and local movie theaters are sometimes bound by contract, sometimes entirely independent, or

sometimes owned by networks. This last situation is usually the case with large metropolitan

areas, where the networks want to have a closer link to the customer. Agents and other

facilitators play a commercial conduit role of helping to bring together various people and

companies along the value chain.

Ashwin B. Sonone and Rajendra N. Pathak (2005) “The impact of Multiplex Cinema’s in

India”

The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes,

which are expanding rapidly in major metropolitan cities as well as second and third tier cities.

Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such

as malls, are driving growth of multiplexes in India. The study provides a snapshot of the

market including the two segments multiplexes and single screen cinemas. An overview gives a

quick picture of the market with estimated market size, growth rate and theater distribution in

India. Various business models adopted by Indian multiplex operators are presented alongwith

typical revenue streams and cost base. An analysis of drivers reveals that on the supply side -

growth in film industry, improving real estate supply, and favorable tax exemptions have help

24

in growth of this sector while on the demand side favourable demographics, rising income

levels and willingness of people to spend on entertainment are increasing footfalls. The key

challenges identified include slowdown in economy, alternate modes of entertainment,

development delays, piracy and uncertainty over entertainment tax exemptions. The industry is

characterized by seasonality, low screen density, increasing average ticket prices, and reducing

shelf life of movies. The key trends identified include producers bypassing distributors, shift to

digital cinema, and alternate content in multiplexes, retail partnerships, and new single screen

formats. India's craze for films has not been fully exploited by the "Film Exhibition" industry

due to the lack of screen density in the country coupled with the poor quality of screens.

"Multiplex Cinemas" offer an alternative to tap this potential by providing a quality experience

to the viewer as well as economies to the multiplex operator. "Films" has been one of the

integral components of the Indian entertainment industry contributing nearly 27% of the total

revenues of the entertainment industry. Besides, films also contribute to other components of

the entertainment industry like music, television and live entertainment. The Indian film

industry is one of the most complex and fragmented national film industries in the world

comprising of a number of regional film industries like Hindi, Tamil, Telugu, Kannada and

others. The Hindi film industry is the most popular among them. Though India produces the

largest number of films in the world (Approximately 1000 per year), it accounts for only 1% of

the global film industry revenues. In spite of being over 90 years old, the Indian film industry

was accorded the status of industry only in 2000. Over the years, the Indian film industry has

been highly unorganized as film financing was dependent on private and individual financing at

extremely high interest rates. Only recently, the industry has got access to organized finance.

With vertical integration taking place between producers, distributors, exhibitors, broadcasters

and music company’s corporatization is now taking shape in the Indian film industry. We

believe, that corporatization, will bring about transparency, accountability and consolidation

which will help to improve the overall profitability of the Indian film industry as well as reduce

piracy and leakages which presently account for 14% of the Indian film industry's revenues.

25

CHAPTER 3

NEED AND SCOPE OF THE STUDY

26

NEED OF THE STUDY

The need of study on this topic is to get a detailed knowledge about the marketing strategies of

PVR Cinema and their degree of Effectiveness. This study helps to know the reasons behind

the success story of PVR Cinema – a journey from single screen theatre Priya to chain of PVR

multiplexes. The study is required to know how the marketing strategies influencing the

decision of people to visit the PVR cinema. This study is essential for knowing the market

share of PVR cinema. This research helps to attain a deep knowledge about the fact why people

are ready to pay high price and what makes PVR cinema different from others. The knowledge

which is gathered through this research explains that PVR Cinema in terms of its services has

an upper edge over other popular brands in multiplex industry. PVR since from its beginning is

considered as one of its kind and has attained a premium positioning in market. The study is

required to observe what drives PVR to move forward even in such a tough competition and

keep sustaining and maintaining the place of a Market Leader in Multiplex Industry. The main

aim of study is to know that what are the various variables that attract people towards PVR

Cinema. The aim of the study is to make an analysis of different marketing strategies and their

impact on the masses.

27

SCOPE OF STUDY

The scope of the research is very wide as it is the known fact that today multiplex industry is at

the boom and among those PVR Cinema is considered as the Market Leader of that industry.

So it is important to know the reasons behind their popularity and what are the various

marketing strategies which they follow. The aim of the study is to make an analysis of different

marketing strategies and their impact on the masses.

28

CHAPTER 4

RESEARCH METHODOLOGY

29

OBJECTIVES OF THE STUDY

1) To study about marketing strategies of PVR Cinema.

2) To check the effectiveness of marketing strategies of PVR Cinema

3) To suggest the improvements in the marketing strategies of PVR Cinema.

30

RESEARCH METHODOLOGY

Research is the systemized efforts to gain new knowledge. A Research Methodology defines

the purpose of the research, how it proceeds, how to measure progress and what constitute

success with respect to the objectives determined for carrying out the research study. The

appropriate research design formulated is detailed below. A scientifically carried out research

project has a definite framework for data collection. This framework constitutes the research

design.. It determines the data collection method, sampling method, the fieldwork and so on.

Research Design:

The research design for the present study is descriptive as it matches well with the objectives of

the study.

Data Collection:

There are two sources from which data can be collected. For the purpose of study, both primary

and secondary data were required.

Primary Data:

Primary data is that type of data which is collected first time for some specific purpose. There

are various means of the primary data collection. Here the mean of the collection of the primary

data is questionnaire method which was devised to be brief and simple.

Secondary Data:

Secondary data is data which is collected already for some other purposes. Secondary data is

collected from internet, publications, research papers & journals.

Sample Size:

For this study the sample size was 100 respondents from Noida who watch movies at

multiplexes.

Sampling Technique:

Initially a rough draft was prepared keeping in mind the objective of the research. A pilot study

was done in order to know the accuracy in the questionnaire. The final questionnaire was

31

prepared only after certain important changes. Thus my sampling came out to be non-

probability convenience sampling.

Data Analysis Technique:

Statistical technique through which data is analyzed is Logistic Regression. It helps in

analysing whether the study of marketing strategies is effective or ineffective.

32

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic was

kept in mind. Nevertheless, despite of fact, constraints were at play during the formulation of

this project. The main limitations are as follows:

1. This study is purely based on the responses received from the respondents.

2. Since I was not the authorized researchers so this study is made keeping in view utmost

cost effectiveness.

3. This study is done in a limited time span.

4. Mixed responses were there among different age group of respondents.

5. Peoples were some time unwilling and hesitated in replying Questions.

6. The consumer behaviour being dynamic in nature, there is every possibility that over

the time findings of today may become invalid tomorrow.

33

CHAPTER 5

DATA ANALYSIS

AND ITS

INTERPRETATION

34

DATA ANALYSIS & INTERPRETATION

Formulation of the problem:

Problem formulation includes several tasks. The objective of using Logistic Regression is to

study about effectiveness of marketing strategies of PVR Cinema. The variables to be included

in the Logistic Regression based on past research, theory and judgments. The variables are

appropriately measured on 7-point likert scale. During the study, I have studied about 100

persons who visit multiplexes to watch movies, nearly 50 respondents were satisfied with their

marketing strategies and 50 were dissatisfied. The respondents were asked to indicate their

degree of agreement with the following statements using a 7-point scale (1=strongly disagree,

7=strongly agree)

satisfied respon-dents dissatisfied respondents

Method of logistic regression: Logistic regression is part of a category of statistical models

called generalized linear models. This broad class of models includes ordinary regression and

ANOVA, as well as multivariate statistics such as ANCOVA and log linear regression. An

excellent treatment of generalized linear models is presented in Agresti (1996).

Logistic regression allows one to predict a discrete outcome, such as group membership, from a

set of variables that may be continuous, discrete, dichotomous, or a mix of any of these.

Generally, the dependent or response variable is dichotomous, such as presence/absence or

success/failure. Discriminant analysis is also used to predict group membership with only two

groups. However, discriminant analysis can only be used with continuous independent

variables. Thus, in instances where the independent variables are a categorical, or a mix of

continuous and categorical, logistic regression is preferred.

The dependent variable in logistic regression is usually dichotomous, that is, the dependent

variable can take the value 1 with a probability of success q, or the value 0 with probability of

failure 1-q. This type of variable is called a Bernoulli (or binary) variable.

35

In our case, the study has been directed to judge the effectiveness of marketing strategies of

PVR Cinema. Data for this has been collected from 100 respondents (50 out of 100 are satisfied

with the marketing strategies and 50 are not satisfied) variables for checking the effectiveness

of marketing strategies are taken as

Variable 1 = Robust Infrastructure,

variable 2 = Soothing Ambience,

variable 3 = Safe Security System,

variable 4 = Premium Positioning of Cinema in Multiplex Industry,

variable 5 = Great Level of Comfort,

variable 6 = Easy Availability of Tickets,

variable 7 = Brilliant Seating and Projecting Arrangement,

variable 8 = Impressive Picture Quality,

variable 9 =3-Way surround Sound system Facility,

variable 10 = Variety of Customer Relationship Services offered,

variable 11 = Fully Air Conditioned Luxury Halls,

variable 12 = Plush and Comfort Chairs,

variable 13 = Ample Parking Space,

variable 14 = Online Ticket Booking,

variable 15 = Online Payment System ,

variable 16 =Status Symbol,

variable 17 = Fair ticket price,

variable 18 = Credit Cards acceptability,

variable 19 = Self selection of Seats,

variable 20 = Friendly Behaviour of Staff,

variable 21 = Play Hindi, English, Regional and Foreign movies,

variable 22 = Variety of Food Joints,

variable 23 = Suitable Location of PVR cinema,

variable 24 =, Quality of services offered,

variable 25 = Number of movie shows running in a day,

variable 26 = Multi-screens,

36

variable 27 = Blend of retail and entertainment,

variable 28 = Availability of different prices of tickets,

variable 29 = Bulk Bookings, variable 30 = Source of full Entertainment,

variable 31 =Discount offers,

variable 32 = Availability of Rest Rooms,

variable 33 = Candy Bars ,

variable 34 = Tele-booking facility,

variable 35 = Celebrity Factor,

variable 36 = Impressive Advertisement,

variable 37 = Premiers of new releases are organized,

variable 38 = Proper Care of Hygiene,

variable 39 = Separate section for kids entertainment

In our study, 1 shows the Effectiveness and 0 shows the Ineffectiveness of Marketing

strategies.

LOGISTIC REGRESSION VARIABLES VAR00001 /METHOD=ENTER VAR00002

VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00008 VAR00009

VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 VAR00015 VAR00016

VAR00017 VAR00018 VAR00019 VAR00020 VAR00021 VAR00022 VAR00023

VAR00024 VAR00025 VAR00026 VAR00027 VAR00028 VAR00029 VAR00030

VAR00031 VAR00032 VAR00033 VAR00034 VAR00035 VAR00036 VAR00037

VAR00038 VAR00039 /SAVE=PRED PGROUP /CLASSPLOT /CASEWISE

/PRINT=GOODFIT CORR ITER(1) CI(95) /CRITERIA=PIN(0.05) POUT(0.10)

ITERATE(20) CUT(0.5).

37

Case Processing Summary

Unweighted Casesa N Percent

Selected Cases Included in Analysis 100 100.0

Missing Cases 0 .0

Total 100 100.0

Unselected Cases 0 .0

Total 100 100.0

a. If weight is in effect, see classification table for the total number of

cases.

Dependent Variable Encoding

Original

Value Internal Value

.00 0

1.00 1

Block 0: Beginning Block

Iteration Historya,b,c

Iteration -2 Log likelihood

Coefficients

Constant

Step 0 1 138.629 .000

a. Constant is included in the model.

b. Initial -2 Log Likelihood: 138.629

c. Estimation terminated at iteration number 1

because parameter estimates changed by less

than .001.

38

Classification Tablea,b

Observed

Predicted

VAR00040

Percentage

Correct.00 1.00

Step 0 VAR00040 .00 0 50 .0

1.00 0 50 100.0

Overall Percentage 50.0

a. Constant is included in the model.

b. The cut value is .500

The classification table shows that model makes a correct prediction of 50% of classifying the

respondents into two groups of the overall 50 respondents with effective response and the

model correctly identified that 50 of them are having an ineffective response.

Variables in the Equation

B S.E. Wald df Sig. Exp(B)

Step 0 Constant .000 .200 .000 1 1.000 1.000

Model Summary

Step -2 Log likelihood

Cox & Snell R

Square

Nagelkerke R

Square

1 78.618a .451 .602

a. Estimation terminated at iteration number 7 because

parameter estimates changed by less than .001.

39

Hosmer and Lemeshow Test

Step Chi-square df Sig.

1 5.001 8 .757

The hosmer and lemeshow test shows lack of significance, indicating that the model predictions

are not significantly different from observed values in other words model fits well.

Classification Tablea

Observed

Predicted

VAR00040

Percentage

Correct0 1

Step 1 VAR00040 0 40 10 80.0

1 8 42 84.0

Overall Percentage 82.0

a. The cut value is .500

The classification table above shows that the overall correct classification rate of the model is

82%. The model predicts the effectiveness of marketing strategies of PVR Cinema.

40

Casewise List

Case Selected Statusa

Observed

Predicted Predicted Group

Temporary Variable

VAR00040 Resid ZResid

1 S 0 .055 0 -.055 -.241

2 S 0 .034 0 -.034 -.187

3 S 0** .527 1 -.527 -1.055

4 S 0 .236 0 -.236 -.557

5 S 0 .090 0 -.090 -.315

6 S 0 .051 0 -.051 -.233

7 S 0 .384 0 -.384 -.789

8 S 0 .082 0 -.082 -.299

9 S 0 .042 0 -.042 -.210

10 S 0 .014 0 -.014 -.119

11 S 0 .074 0 -.074 -.284

12 S 0 .211 0 -.211 -.517

13 S 0 .007 0 -.007 -.082

14 S 0 .463 0 -.463 -.928

15 S 0 .163 0 -.163 -.441

16 S 0 .077 0 -.077 -.288

17 S 0 .070 0 -.070 -.274

18 S 0 .249 0 -.249 -.576

19 S 0 .075 0 -.075 -.286

20 S 0** .895 1 -.895 -2.918

21 S 0 .290 0 -.290 -.640

41

22 S 0 .034 0 -.034 -.187

23 S 0** .632 1 -.632 -1.311

24 S 0 .000 0 .000 -.011

25 S 0 .058 0 -.058 -.249

26 S 0 .300 0 -.300 -.655

27 S 0 .396 0 -.396 -.809

28 S 0 .007 0 -.007 -.085

29 S 0 .204 0 -.204 -.506

30 S 0** .540 1 -.540 -1.084

31 S 0 .441 0 -.441 -.888

32 S 0 .059 0 -.059 -.251

33 S 0 .489 0 -.489 -.978

34 S 0 .050 0 -.050 -.228

35 S 0 .048 0 -.048 -.224

36 S 0 .064 0 -.064 -.262

37 S 0 .000 0 .000 -.016

38 S 0** .562 1 -.562 -1.133

39 S 0 .238 0 -.238 -.559

40 S 0 .101 0 -.101 -.335

41 S 0 .138 0 -.138 -.400

42 S 0** .645 1 -.645 -1.349

43 S 0 .101 0 -.101 -.335

44 S 0** .927 1 -.927 -3.552

45 S 0** .752 1 -.752 -1.741

42

46 S 0 .382 0 -.382 -.787

47 S 0 .001 0 -.001 -.033

48 S 0** .548 1 -.548 -1.102

49 S 0 .277 0 -.277 -.620

50 S 0** .719 1 -.719 -1.599

51 S 1** .255 0 .745 1.709

52 S 1** .264 0 .736 1.671

53 S 1 .862 1 .138 .401

54 S 1 .712 1 .288 .636

55 S 1 .960 1 .040 .205

56 S 1 .589 1 .411 .836

57 S 1 .699 1 .301 .656

58 S 1 .999 1 .001 .024

59 S 1 .974 1 .026 .163

60 S 1 .860 1 .140 .404

61 S 1 .730 1 .270 .608

62 S 1 .772 1 .228 .544

63 S 1 .999 1 .001 .032

64 S 1 .905 1 .095 .325

65 S 1 .639 1 .361 .752

66 S 1 .671 1 .329 .700

67 S 1 .845 1 .155 .428

68 S 1** .184 0 .816 2.109

69 S 1 .858 1 .142 .406

43

70 S 1 .648 1 .352 .738

71 S 1** .163 0 .837 2.264

72 S 1 .999 1 .001 .034

73 S 1 .615 1 .385 .791

74 S 1 .996 1 .004 .062

75 S 1 1.000 1 .000 .001

76 S 1** .420 0 .580 1.176

77 S 1 .517 1 .483 .967

78 S 1 .927 1 .073 .281

79 S 1** .398 0 .602 1.230

80 S 1 .735 1 .265 .600

81 S 1 .745 1 .255 .585

82 S 1 .586 1 .414 .840

83 S 1 .901 1 .099 .332

84 S 1 .998 1 .002 .049

85 S 1 .886 1 .114 .359

86 S 1 .933 1 .067 .268

87 S 1 .992 1 .008 .088

88 S 1 .667 1 .333 .706

89 S 1 .977 1 .023 .154

90 S 1 .902 1 .098 .329

91 S 1 .944 1 .056 .242

92 S 1** .139 0 .861 2.484

93 S 1 .985 1 .015 .123

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94 S 1 .990 1 .010 .100

95 S 1 .641 1 .359 .749

96 S 1** .359 0 .641 1.337

97 S 1 .949 1 .051 .231

98 S 1 .918 1 .082 .299

99 S 1 .571 1 .429 .867

100 S 1 .918 1 .082 .299

a. S = Selected, U = Unselected cases, and ** = Misclassified cases.

Hence after the application of logistic regression test and from the results of the test it is rightly

concluded that the predictions are not significantly different from the observed values, in other

words model fits well.

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CHAPTER 6

CONCLUSION

46

FINDINGS OF THE STUDY

On the basis of the survey it was found that maximum number of respondents are aware

about PVR cinema.

It was found that respondents have mixed responses when they are asked about how they

know about PVR Cinema. Some said through Commercials, some said through websites,

billboards, Print Ads, Word of Mouth. But if observed most of the people have same consent

over Online Advertisement.

It has been observed that almost all respondents have visited PVR Cinema atleast once in a

month, except a few which clearly indicates the popularity of PVR Cinema.

It was found that most of the respondents are awared about all the marketing strategies of

PVR Cinema.

It was observed that the maximum number of respondents lie in the age group of 15-35

years and out of them most of the visitors are students.

Almost all respondents have annual income more than 3 lacs per annum that shows the

premium positioning of PVR Cinema.

It was found that almost all respondents are fully satisfied with the infrastructure and the

ambience of the PVR Cinema.

It was observed that respondents considered visiting PVR Cinema as a source of full

entertainment.

Online ticket booking, tele-booking and online payment system are some of the features of

PVR Cinema which was rated highest by maximum number of respondents.

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Most of the respondents considered that watching movie at PVR Cinema is a status symbol

due to its premium positioning in the market.

Respondents gave positive response when it comes to the quality of services provided at

PVR Cinema.

Self selection of seats is considered the most favorable feature of PVR Cinema.

The layout and the interiors of PVR Cinema is considered as one of the most attractive

feature of PVR Cinema by the respondents.

When it comes to the price of PVR Cinema the respondents has mixed reactions as some

considered it as high and some said that they are worth the experience.

Almost every respondent showed their consent that the food quality and hygiene maintained

at PVR Cinema is totally superior.

The feature that attracts respondents in the best way is the 3-way surrounds sound system

and the seating and the projection arrangement of PVR Cinema.

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RECOMMENDATIONS

When PVR came into being it was at the forefront of the technology involved in the

Movie business but now much more has been done in this field and PVR needs to keep

up. Like the IMAX theatre that Adlabs has introduced, PVR should also foray into new

technological advances in the entertainment business.

Also the prices charged at the food and beverage counter are way above the MRP,

which we feel is an undue premium that is being charged.

There should be some concession for the student class.

While intermission, the ready to eat products like patties, popcorns, soft drinks should

only be made available to the customers by the employees, the counter get over-

crowded because of the limited space. Another option is to increase the manpower at

the time of rush.

Many of the audiences feel that some of the services inside do not command the prices

that is charged for them, example, even the first two rows in the theatre command a

price of Rs. 150/-. Most people feel that a lesser price should be charged as sitting too

close to the screen is not as good an experience as sitting in one of the back rows.

A food court that has a variety of offerings, not just snacks but wholesome meals as

well would greatly improve the movie going experience as people would spend greater

amount of time in the theatre and the food court could work as an ancillary to the

theatre.

Once a movie is past its prime and running in the second or third week where sales are

low, PVR could do promotional campaigns and reduce the prices marginally for one

show a day. This would encourage more people to experience the PVR experience,

especially those that are inhibited by high prices.

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Special promotional campaigns for students for instance could help in attracting the vast

price sensitive student audience. Such promotions could happen once or twice a month

without diluting the superior brand image.

Cricket is an obsession in India. PVR could capitalize the same by screening ‘hot’

matches live. For e.g. IPL matches. The growing popularity of soccer and other sports

can also be tapped. This would be an instant hit even at very high prices charged. To

add on to the excitement they could couple this with cricket contests and give prizes

like paraphernalia with autographs of eminent sportspersons.

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CONCLUSION

Purpose of any survey or research is to fulfill the objectives. In this study of “Effectiveness of

Marketing Strategies of PVR Cinema in influencing the customer’s decision to visit the

multiplex” the various objectives have been fulfilled by using the method of Questionnaire,

getting it filled from 100 respondents and finally analyzing the results.

After analyzing the results it has been found that marketing strategies of PVR Cinema to attract

the customers towards the brand plays an effective role in influencing the decision making of

the customer. According to the respondents every single effort made by the PVR Cinema is

worth appreciation. Their effectiveness can be observed with their market growth and their

market share in the multiplex industry. They make every possible effort to maintain their

positioning in the market. PVR Cinema doesn’t believe in the philosophy of Sit and Relax.

They keep adding something new to their services to make their customers always fully

satisfied and maintain their position as Market Leader in the industry. Though whatever PVR

Cinema is doing for their brand is adding to their popularity but there is still some scope of

improvement as the multiplex industry nowadays is full of competition with the big corporates

involved in it. Also this analysis has shown that multiplex has become the biggest source of

entertainment for the present generation. They want everything under one roof and that makes

the remarkable growth of multiplexes in India.

51

ANNEXURE

52

BIBLIOGRAPHY

BOOKS

Marketing management by Philip Kotler

Unleashing the Ideavirus by Doc Searls

CineBlitz Film Magazine

Building Strong Brands by David A. Aaker

Movies First PVR Magazine

WEBSITES

www.ibef.org/industry/Entertainment.aspx 

www.economictimes.com

www.pvrcinemas.com

http://www.pwc.com/en_IN/in/assets/pdfs/ficci-pwc-indian-entertainment-and-media-

industry.pdf

http://www.livemint.com/2007/07/24021641/Multiplexes-feeding-India821.html

http://www.icicidirect.com/mailimages/ICICIdirect_Multiplex_EventUpdate.pdf

http://www.prlog.org/10237629-bharatbookcom-multiplex-industry-growth-in-indian-

cinema-exhibition-industry.html

JOURNALS

Gummerson, E., (1996), "Making Relationship Marketing Operations", International

Journal of Service Industry Management, Vol. 5 (5).

Jain, R.; Jain, S. and Dhar, Upinder, (2003), " Measuring Customer Relationship

Management", Journal of Services Research, Vol. 2 (2), October-March.

Sarangi, S. K., (2007), "Quality in Service Sector: An Indian Perspective", Tecnia

Journal of Management Studies, Vol. 2 (2),

October Brown and  Stanley, (1999), "Customer Relationship Management: Linking

People, Process and Technology", New York, Wiley.

Ward, Tony and Dagger, T. S., (2007), "The Complexity of Relationship Marketing for

Service Customers", Journal of Services Marketing, Vol. 21 (4).

53

Varki, S. and Wong, S. (2003), "Consumer Involvement in Relationship Marketing of

Services", Journal of Service Research, Vol. 3 (6), August.

Parasuraman, A.; Berry, L. L. and Zeithaml V., (1994), "Alternative Scales of

Measuring Service Quality: A Comparative Assessment Based on Diagnostic Criteria",

Journal of Marketing, Vol. 70 (3).

54

QUESTIONNAIRE

55

Questionnaire

Dear Respondent,

I, Deepali Thakur, a student of MBA in D.A.V. Institute of Engineering and Technology, Jalandhar, am conducting a survey on “Marketing Strategies of PVR Cinema”. I would be extremely thankful if you spare some time to answer the following questions. I hereby declare that all the information collected through this questionnaire will be kept confidential and will be used for academic purpose only.

Please tick (√) at the appropriate box.

Q1: Do you visit Multiplexes?

(a) Yes

(b) No

Q2: Which of the following categories of multiplex are you aware of?

(a) PVR Cinema

(b) INOX

(c) WAVES

(d) BIG Cinema

(e) Adlabs

Q3: Have you ever visited PVR Cinema?

(a) Yes

(b) No

Q4: How did you come to know about PVR Cinema?

(a) Online Advertisement

(b) Word of Mouth

(c) Billboards

(d) Commercial

(e) Print Ads (magazine, newspaper)

(f) Website

Q5: In the last 30 days, how many times have you visited PVR Cinema?

(a) Never

(b) Once

(c) Twice

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(d) Thrice

(e) More than 3 times

Q6: Which of the following marketing strategies are used by PVR Cinema?

(a) Promotional offers

(b) Online booking

(c) Parties at PVR

(d) Movies Newsletter and Magazine

(e) Movie Vouchers

(f) Booking through SMS

(g) Online contests

(h) Promotion through catalogs

(i) Free trials

(j) Providing Gifts to visitors

Q7: Please indicate your degree of agreement or disagreement for the following variables that affect your decision to visit PVR Cinema.

S.No. Variables Strongly Disagree

(1)

Fairly Disagree

(2)

Disagree(3)

Neutral(4)

Agree(5)

Fairly Agree

(6)

StronglyAgree

(7)1. Robust

Infrastructure

2. Soothing Ambience

3. Safe Security System

4. Premium Positioning of Cinema in Multiplex Industry

5. Great Level of Comfort

6. Easy Availability of Tickets

7. Brilliant Seating and Projecting Arrangement

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8. Impressive Picture Quality

9. 3-Way surround Sound system Facility

10. Variety of Customer Relationship Services offered

11. Fully Air Conditioned Luxury Halls

12. Plush and Comfort Chairs

13. Ample Parking Space

14. Online Ticket Booking

15. Online Payment System

16. Status Symbol

17. Fair ticket price

18. Credit Cards acceptability

19. Self selection of Seats

20. Friendly Behaviour of Staff

21. Play Hindi, English, Regional and Foreign movies

22. Variety of Food Joints

23. Suitable Location of PVR cinema

24. Quality of services offered

26. Multi-screens

26. Multi-screens

27. Blend of retail and entertainment

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28. Availability of different prices of tickets

29. Bulk Bookings

30. Source of full Entertainment

31. Discount offers

32. Availability of Rest Rooms

33. Candy Bars

34. Tele-booking facility

35. Celebrity Factor

36. Impressive Advertisement

37. Premiers of new releases are organized

38. Proper Care of Hygiene

39. Separate section for kidsentertainment

RESPONDENT’s PROFILE

NAME - __ ___________________

AGE - Below 18 18 to 30 Above 30

SEX - Male Female

OCCUPATION - Service Agriculture Student

Business Others

INCOME - Below 1 Lakh 1 Lakh to 3 Lacs Over 3 Lacs

CONTACT No. - _____________________

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