Indian Multiplex Industry

7/30/2019 Indian Multiplex Industry

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A Project Report onIndian Multiplex Industry

under the guidance of

Professor Shobha Mathews(Service Sector Management)


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Our TeamName Roll #

Gurminder Singh 05

Raja Singh 08

Yashovardhan Bichu 18

Kanika Datta 22

Gurleen Kaur 38

Sahil Mhadkar 39


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Special thanks to

Professor Shobha Mathews

Acknowledgement


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Entertainment Industry

Fastest Growing Sector

Improves Quality of Life

Current ScenarioFilm Industry


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Multiplex

Integrated Entertainment

Channel of Income

Dual MeaningProblem faced by Multiplex


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Service offered by a Typical Multiplex

4 Screen

Ticketing option

Cafeteria

Entertainment

Malls

Resturants


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Player of Indian Multiplex Industry

PVR Cinemas

INOX Leisure

BIG Cinemas

CINEMAX

FUN Cinemas


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Marketing Mix of Multiplexes


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Product

Ticketing options

Entertainment

Air conditioning

Food Courts and Restaurants

Parking Facility

Luxury Recliner Seats


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Price

Indian multiplex follow 2 methods of pricing:

Cost based pricingIt is also referred as cost plus pricing. Itdetermines cost of service delivery as well as predetermined rateof profit in order to arrive at a price.

Competition based pricingIn this method the price is

determined on the basis of competitors price.

The price of multiplex tickets varies according to the showtimings and movies. The ticket prices are quite less for themorning shows i.e Rs 50 - Rs60 for its early morning shows

The ticket rates begin at Rs.90 and go up to Rs.225 on weekends.Its new luxury multiplex has tickets priced at Rs.750, with fullyreclining seats and personalized menu to boot.


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Promotion

Some of the important promotion strategies are:Awareness: The multiplex takes full care that its objective of,

making the multiplex familiar to one and all is accomplished.

Brand Visibility: Branding should be done in such a way that thepeople have good recall value for it which helps to increase sales. The

brand visibility is done by making the people aware about the logo of

multiplex, its location, accessibility and various such factors.

Induce Sales: Selling the services is one of the key issues of amultiplex. Their services include viewing of movies, cafeterias,

entertainment arena and so on.


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Other Promotional Services

Loop Mobile Offer:Loop Mobile has tied up with Cinemax multiplex chain.Loop Mobile

subscribers can now watch a new movie every Friday with Loop Mobile,

the association allows Loop Mobile subscribers to avail one free movie ticket on

the purchase of one movie ticket.

Vodafone launches Vodafone Tuesdays

Vodafone, one of Indias leading cellular service providers has introduced

Vodafone Tuesdays wherein Vodafone customers can enjoy the exclusive

scheme of getting two movie tickets for the price of one.The Vodafone Tuesdays offer is available at select movie theatres across Fame,

Cinemax.


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Physical Evidence

Crucial Factor Immediate Impression Ambience and Atmosphere

Essential and Peripheral Evidence

Physical Evidence

1. Social

2. Design

3. Ambience


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Place

Crucial People Location Accessibility

Far or Near Makes a lot of difference

Safe Locality Crowd Cleanliness

Abundant Parking Space

Pay and Park


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People

Human Resource Represent Impression Training Etiquettes Ethics

Decent Soft Spoken Cooperative

Emergency Helpful

Female Attendants

Security Sense of safety and security

Overall Progress and Development


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Process

Well defined and Systematic Process

Consideration to staff

Proper Coordination between departments

Smooth Functioning

Good Planning Saves time and efforts


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Scope of Multiplex

Cinema Exhibition Industry in India is growing at10% per annum.

Cinema crazy nation, tax exemption, quality

locations. Food & beveragesmajor source of revenue.

More than 3 screens with seating capacity of 150-

300 seats each screen.Multiplexes contribute to 27% of the total

revenue of the Entertainment Industry.


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SWOT Analysis

Strengths Entertainmentbooming sector in India.

Largest in film production and ticket selling

Weakness

Entertainment sector is highly fragmented

Lack of efforts for media penetration-low mediapenetration


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SWOT Analysis

Opportunities

Expecting growth

Interest of global investors

Expansion in rural areas

Threats

Piracy

High Real Estate Prices is a barrier to

profitability.


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Why is there a Multiplex Boom?

AspirationsPride and honor.

Attitudinal change

Combination of various facilitiesMall with multiplex

Multiplex with shopping facilities and amenities

More number of screens


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Multiplexes Single Screens

The multiplexes enjoy rebates and

exemptions from the government. (eg -

Entertainment Tax)

Single Screen doesnt enjoy such exemptions

on part of government

They just dont offer movie but also offer so

called add-on facilities

Cineplex on the other hand offer only movies

and no extra facilities.

They offer customer with choice in different

movies

Single screens dont offer such facilities with

no options to the customers

Talking of the ambience, multiplex offer

better sitting , Dolby digital sounds and good

graphics for viewers

Single screens on the other hand dont offer

such facilities to viewers.

Multiplexes, by offering food courts, ATM

Facility, shopping facilities can offer Add

value to money to customers.

Single Screen on the other hand doesnt offer

add value to money to the customers

income.

Why are Multiplexes preferred over single screens for

movie viewers?


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Segmentation and Target GroupGroucho (Age grp. 2544 yr.)This group consist of 32% of Mumbai audience (Premium Group)They visit the cinema halls occasionally (Once in 3 month)Prefer to watch Hindi Thriller movies and also Regional movies.Come late to movies at least by 15 minutes and Prefer to watch with family.

Westerner (Age group is 3555 yr)This group consist of 5% of Mumbaikars residing in western part of the city.

Visit cinema hall regularly (Once per week)Prefer to watch English movies as action, animation.Come 10 minute late to movie hall and prefer to watch movie with family and

children.

Geeks (Age group is of 1524 yrs)This group consist of 27 % of the population from other part of the city.Visit cinema hall frequently (Once in a month)Prefer to watch hindi action, war Dubbed English movies either alone or with friendsEnters 5 minutes late in the movie hall.


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Marketing Media Channelsfor Communication

Print - Print medias such as Newspaper, magazines, journals, pamphlets, poster etc.at he

time of release of movie, these medias are used to advertise intensively. Eg. Bombay Times,

Mid-day.Radio - Second most used medium. Multiplexes attract customers by various contests on

Radio. Leading Radio stations Radio Mirchi, Radio City etcWeb - Personal website for multiplex is used by firm to market the movie. Promotionalactivities and the new happenings along with new releases information been provide on

website. Bookings also been done on website.SMS - The database of numbers is collected from the customers who watch movies. And

then promotional activities, new release movies, reminder to bookers is been done via sms.Hoardings - This is used to recall customers about the movies being screened at

multiplex. Hoardings are placed both at populated place and in multiplex.Public relation - Writing and giving any promotion and it take care of any

misunderstanding between consumer and multiplex.


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Movie MarketingCaf Marketing:

Special Events MarketingMovie Shootings & Advertisements.Special Screening of Hollywood Movies

MarketingStrategies


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The bigger the mob the greater the thrill

Multiplexes offering tickets at around Rs 150 cannot call for large chunk of

audience on account of high prices.

The Indian film industry is the worlds largest, churning out more than

1,000 films each year. There are an estimated 11500 cinemas in India. Of

those, nearly 600 are multiplexes and around 10900 single screens

Single theatres would do well in smaller towns where multiplexes dont go.

They themselves have to look and explore their potential to serve better in therural or their expected market.

Are the single screen theatres in India going to die

soon?


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Multiplexes and distributors / producers starting conflicting on

revenue share. However, distributors / producers would argue thatcontent generation is more critical hence they should get an equal share

if not more.

A couple of other issues like the multiplexes inability to clear huge

amount of out standings towards the distributors, not sharing the benefitof certain incentives given to them by the government with the

distributor, led to the eventual deadlock.

The strike has also affected auxiliary industries like hoardings, public

relations and advertising, as their work has come to a complete halt.

Apparently, this industry has suffered an estimated Rs 100 crore

loss. This shows how the multiple dynamics act as very important factor

in determining the industry growth and development.

Strike Issue of Multiplexes


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DLF, a leading real estate player in the country, plans to invest US$ 298.12 million for

the expansion of its multiplex business. The company has planned to add at least 500

screens in the next four to five years across the country.

Entertainment conglomerate Adlabs Cinemas has drawn up a plan to build 12

megaplexes in India where you can not only see movies but also cricket and soccer

matches on screen.

Multiplex chain PVR Cinemas, which currently has 92 screens, is also planning to add

over 150 screens across India, staggered over a period of three years from 2008-2010,

with a total investment outlay of around US$ 71.55 million.

Cinemax India, the multiplex chain which currently has 55 screens over 17 properties

across the country is planning to scale up its presence to 299 screens across about 100

properties by fiscal 2010

MULTIPLEX BUZZ!!


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References www.magportal.com/c/ent/movie

www.dreamznetsolutions.com/articles/media-option-website-designing.html

www.legalserviceindia.com/articles/fban.htm www.ankurb.info/2007/03/16/300-movie-review/

www.exchange4media.com/e4m/izone1/izone_fullstory.asp?section_id=4&news_id=17336&ta

g=12066

www.techtribe.com/viewBlogEntry.html?blogEntryId=8413080e-5d38-102b-a627-

000f1f68a9bf

http://economictimes.indiatimes.com/features/brand-equity/Why-Indian-youth-prefer-multiplexes/articleshow/6192272.cms

http://www.naachgaana.com/2010/06/26/multiplex-and-single-screen-business/

http://mybigmedia.wordpress.com/2008/09/12/emergence-of-multiplex-in-india/

http://www.newsofap.com/newsofap-4988-25-inox-becomes-second-largest-multiplex-chain-

in-india-newsofap.html

http://www.realty-firms.com/multiplex.html http://www.vnrao.net/business/9331-multiplex-and-single-screen-cinemas-in-india-2010.html

http://www.dancewithshadows.com/business/cinepolis-multiplexes-in-india-soon-40-new-

screens-in-12-months/

http://www.indianmuslims.info/news/2007/nov/25/multiplexes_fast_gobbling_indias_single_ha

ll_theatres.html


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Indian Multiplex Industry

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