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Project Report of
PVR Group
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Table of Contents
Sr. no Topic Page no
1 Entertainment and Media Industry 1
2 Pest Analysis 3
3 Industry Competitors 4
4 PVR and Subsidiaries 5
5 Swot Analysis 15
6 Porter Five Forces 17
7 Marketing Mix 20
8 STPD Analysis 24
9 Promotions of PVR Cinemas 27
10 Financial Performance 28
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Entertainment and Media Industry
Indias Entertainment & Media sector to continue its double digit growth trajectory in 2011.The industry is expected to touch Rs 1199 billion growing cumulatively at 13.2% CAGR to
2015.
Indian E&M industry recorded one of the highest growth rates in the world growing at 11.2%
in 2010. This was largely due to rebound in consumer spend, advertising spend and most
importantly in the E&M spend. The industry grew a little slower than expected largely due to
the downturn in the film segment. All the other segments grew as predicted.
Outlook for major segments are as follows:
Television: The sector is projected to command half of the entertainment pie by 2015 as it is
estimated to grow at a 14.5% cumulatively over the next five years, from an estimated INR
306.5 billion in 2010 to INR 602.5 billion by 2015.
Film: The sector is projected to grow at a CAGR of 9.3% over the next five years, reaching
INR 136.5 billion in 2015 from the present INR 87.5 billion in 2010.
Print media: The sector is projected to grow by 9.6% over the period 2011-15, reaching INR
282 billion in 2015 from the present INR 178.7 billion in 2010.
Radio: The sector is projected to grow at a CAGR of 19.2% over 2011-15, reaching INR26.0 billion in 2015 from the present INR 10.8 billion in 2010.
Music: Due to the increase of the mobile VAS market, the sector is projected to grow at a
CAGR of 17.6% over 2011-15, reaching INR 21.4 billion in 2015 from INR 9.5 billion in
2010.
Internet advertising: With rebound in overall advertising, internet advertising too is
projected to grow by 25.5% over the next five years and reach an estimated INR 24.0 billion
in 2015 from the present INR 7.7 billion in 2010.
Out of home (OOH): The estimated size of Out of home (OOH) advertising spend is INR14.0 billion in 2010, which is projected to reach INR 24.0 billion in 2015.
Animation, gaming and VFX industry will continue to maintain its growth pace and is
projected to grow at a CAGR of 21.4% to INR 82.6 billion in 2015 from its current size of
INR 31.3 billion.
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PEST Analysis for PVR Cinemas
Economic Factors
Increase in disposable income in the hands of an ever expanding Indian middle class
Earning of revenue from sources other than only movies in the theatres.
Multiplexes are one of the anchor tenants in large format malls, as their presence increases
footfalls by approximately 40-50%. The expected organized retail boom should result in a
significant increase in the number of Multiplex Cinemas.
Social Factors
The movie experience goes much beyond just watching a film. The encouraging growth in thenumber of multiplexes is making the movie goers, especially in urban India, experience a new
way of enjoying movies.
Higher consumption spending and consequent changes in lifestyle are also spurring the
growth of the Indian Entertainment sector.
Multiplexes not only increased the number of available screens, but also provided them with
excellent acoustics and enhanced picture display.
Increase in Number of High Grade Hindi Films
Political Factors
Several state governments provided incentives to encourage the growth of multiplexes. A
positive concession given to the cinema theatre industry in 2002/03 was the deduction of 50
to 100% of the profit earned by multiplexes that came to them in the next two to five years.
To boost the sector, the government has opened large parts of the sector to foreign direct
investment (FDI). It allows 100 per cent FDI on automatic basis in the film industry with no
entry level pre-conditions.
Entertainment tax benefits
Technological factors
Film Distribution Holdups
One of the main features of the Indian film industry that differentiates it from those in western
countries is the limited initial release of films.
Pirated DVD/VCD copies of the film are generally available by the time the film is released
in B and C class centers, which reduces demand
If the film was not a hit on its initial release in the A-class centers it is unlikely to do well on
its delayed release
The quality of the celluloid film print is negatively affected each time it is played, so poor
picture quality is also an issue - often the dark and scratchy print is hardly visible on the
screen.
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Industry Competitors
PVR Cinemas
Big Cinemas : Division of Reliance MediaWorks Limited
516 screens spread across India, US and Malaysia.
Imax, 3D and 6D technology
Inox Cinemas : Diversification venture of the INOX Group into
entertainment. 30 multiplexes and 109 screens in 21 cities.
Cinemax: Largest Multiplex chain in Mumbai. First to Introduce Red
Lounge Luxury Viewing experience catering to Niche audience
Mumbai centric approach
Fun Cinemas : Promoted by the Essel Group, the company has about 140 screens across
India
Shringar Cinemas : oldest and well- known brands in the
Mumbai region
AA Films
Pyramid Saimira
UFO Movies
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About PVR and its SBUs
PVR Ltd. was incorporated in April 1995 pursuant to a joint venture agreement between
Priya Exhibitors Private Limited and Village Roadshow Limited, one of the largest exhibition
companies in the world. PVR pioneered the multiplex revolution in the country by
establishing the first multiplex cinema in 1997 at Saket, New Delhi. The opening of the first
multiplex heralded a new era in the Indian cinema viewing experience and which also
changed the industry forever. From then on PVR initiated many path breaking innovations in
the industry from launching in Bangalore the largest 11 screen multiplex in the country in
2004 to introducing Gold Class Cinema.
PVR also entered into a JV with Major Cineplex Group in 2008, a leading Film exhibition
and retail entertainment company based out of Thailand, to bring lifestyle entertainmentconcepts to Indian consumers. The Joint Venture enjoined setting up of bowling alleys,
karaoke centers, ice skating rinks and gaming zones across the country to enhance the out of
home entertainment experience for Indian consumers.
The company has four subsidiaries namely CR Retail Malls (India) Pvt Ltd, Sunrise
Infotainment Pvt Ltd, PVR Pictures Ltd and PVR bluO Entertainment Ltd. The company
operates a film distribution and production business through their subsidiary, PVR Pictures,
which acquires and distributes Indian and international films. The PVR cinema circuit in
India consists of 35 Cinemas with 154 screens spread over 20 different cities covering major
markets across the length and breadth of the country: Delhi, Faridabad, Gurgaon, Ludhiana,Ghaziabad, Mumbai, Bangalore, Hyderabad, Chennai, Lucknow, Indore, Aurangabad,
Baroda, Allahabad, , Ahmedabad, Udaipur, Chandigarh, Surat, Latur and Raipur.
In 2011 the PVR brand has been successful in entertaining more than 19 million esteemed
patrons across its properties. Currently, PVR Cinemas contributes 20-25% of domestic box
office collections of any leading Hollywood movie and 12-13% of any leading Bollywood
movie, highest across the Indian Film Exhibition space. PVR Ltd has established itself as
India's leading and most premium entertainment company, with presence in the entire value
chain with leadership position in Film Exhibition, Distribution and Production. It has also
successfully forayed into retail entertainment formats such as bowling Centres with BluO-
India's largest 24 lane bowling centre which was set up in Gurgaon in 2008.
The company also operates a film distribution and production business through PVR Pictures,
a 100% subsidiary of PVR Ltd. The movies co-produced by PVR Pictures include
"TaareZameen Par", "JaaneTuYaJaane Na", "Aisha" etc. Apart from the movies co-produced,
some of the other movies distributed by PVR include "Ghajini", "Golmaal Returns", "Sarkar
Raj", "Lions of Punjab", "Tum Mile", "Aviator", "Chicago", "Hannibal Rising", "Don",
Twilight Series", " Action Replay" to name a few.
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PVR Pictures, the film distribution and production business arm of Ajay Bijlis PVR Limited,
is launching a new division called Springboard for distribution of specialized, independent
films.
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. PVRPictures, a strategic business unit, specialises in acquisition and local distribution of films.
The company in order to fuel its charted expansion plans has recently listed itself on the stock
exchange raising Rs. 150 crores from the market.
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
First to form a foreign joint venture with Village Roadshow, Australia
First to receive institutional funding in the cinema industryfrom 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 IndiaFirst to launch 'Movies First' - a monthly magazine that updates the movie lovers on
the latest happenings in Bollywood and Hollywood
Our Competitive Strengths
Our cinemas are in prime locations Our cinemas are in prime locations, with
large catchment areas, surrounded by a good mix of retail and food and
beverages outlets and with adequate car parking facilities, making themattractive destinations.
We are considered a preferred anchor tenant and have strong relationships with
mall developers We are considered a preferred anchor tenant by shopping mall
developers because our Multiplex Cinemas generate significant footfalls. Our
presence in a development helps the developer to market the mall to other retail
businesses. As a result, we are able to obtain prime locations for our Multiplex
Cinemas on attractive terms.
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Strong relationships within the film industry
Our position as the largest Multiplex Cinema operator in India, our transparency
in reporting box office collections and our emphasis on film marketing have
helped us to build strong relationships within the film industry, both Indian andHollywood, enabling us to obtain an assured supply of films at competitive
rates.
Largest Multiplex Cinema operator in India As the largest Multiplex Cinema
operator in India, we are able to reap the benefits of economies of scale for our
operations. We obtain discounted rates on our capital equipment, food and
beverage supplies and for advertisements in newspapers. The size and
geographical spread of our cinemas enables us to offer a wide cinema footprint
to advertisers and sponsors.
Strong brand equity
Our brand, PVR, is one of Indias most recognized film exhibition brands. Our cinemas have
been designed with an emphasis on ambience and customer delight, with quality fit-outs,
comfortable seating and state-ofthe art audio and projection equipment. This coupled with
our customer-focused approach has made our brand name synonymous with high quality
cinema viewing in Delhi, Gurgaon, Faridabad, Ghaziabad and Bangalore. This has positioned
us an exhibitor of choice for movie patrons, enabling us to maintain stable occupancy rates at
ticket prices that are significantly higher than the industry average. Our strong brand equity
has also allowed us to enter into corporate alliances and co-marketing exercises with leading
companies such as Pepsi, Samsung, Hero Honda, Hyundai, LVMH, Airtel, Master Card, LG
Electronics, Nokia, Seagram, General Motors, Hindustan Times, and Lipton.
Emphasis on film marketing
We believe that one of the factors contributing to our success has been our use of innovative
techniques in the Indian film exhibition context to market films shown at our cinemas. We
organize movie screenings with film stars, conduct preview screenings for film critics,conduct movie-based promotions, distribute movie memorabilia and information and publish
an in-house movie magazine called Movies First. We also have a customer loyalty program.
We focus on local area marketing and sales, which allows us to build loyalty with customers
in the immediate catchments.
Promoter focus on film exhibition and innovative management Mr. Ajjay Bijli, our
Chairman cum Managing Director and one of our Promoters, is a pioneer in the Multiplex
Cinema segment in India and has over 15 years experience in the film exhibition sector. He
is focused on the film exhibition business and has contributed to our development and
growth. He was awarded with the Theatre World Newsmaker of the Year Award for 2003
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at FRAMES 2004, a global convention on the business of entertainment organised by FICCI.
In 2004, CineAsia, a prominent Asian film industry convention, gave him a special award for
his significant contribution to India's Multiplex Cinema segment.
He was recognized as Entrepreneur of the Year Entertainment by the Indian Retail
Forum held in Mumbai in September 2005 and Delhi Ratna by the PHD Chamber of
Commerce and Industry in August 2005. Our management team, led by Mr. Bijli and Mr.
Sanjeev Kumar, our Executive Director, has demonstrated its ability to think ahead of our
competition and remain innovative. Our current executive management team has a blend of
film exhibition and hospitality industry experience and professional expertise drawn across
different industries. Some of our current key employees have received formal training at
cinemas in Australia and Singapore operated by Village Roadshow. Proven project selection,
development and implementation skills We have evolved and implemented a structured
system of project evaluation and approval. Decisions on projects are taken on the basis of
extensive market research undertaken on the location and quality of the development by ourbusiness development team and leading specialized research organizations. We frequently
reject opportunities for cinema developments that do not meet our stringent project selection
criteria. We have an in-house specialized team for cinema design and implementation. This
team is supported by international and domestic project consultants. We have successfully
managed the development and implementation of 10 cinema projects. Scalable systems and
processes and uniform staff training Our uniform operational systems, processes and staff
training procedures will enable us to replicate our high operating standards across all future
cinemas. We use Vista software, which is used worldwide, across all our cinemas to capture
box office sales, food and beverage sales and sale of tickets on the internet. We use the same
rigorous cash and inventory control systems, and procedures for film scheduling, contracting,
advertising and management for all of our cinemas. All our systems and processes are
documented in a single manual. We have also developed robust and uniform staff training
systems.
PVR Strategy
With a strong appetite for movies and an upward migration of household income levels in
India, we believe that the Indian film industry, and the film exhibition sector in particular,
will continue to experience strong growth. Our main goals are to remain Indias largest and
most preferred cinema exhibition company. To achieve these goals, our business strategy
emphasizes the following elements:
Continue to provide the highest exhibition standards to achieve customer delight .
Increase the number of cinemas under our operation on a pan India basis. Our strategy is to
adopt a price-based differentiation model, offering our patrons a superior cinema-going
experience at each price point. Indias largest and most preferred film exhibition company.
Plan to open lower cost cinemas using digital technology along with the refurbishment and
remodeling of the cinema to give patrons a superior movie experience at an affordable price
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Capitalise on our market leader position and source consulting, development,operating and management business under the management fee/franchise model
Continue to maximise revenue from our existing cinemas.
We plan to increase box office revenue from our existing cinemas through flexiblepricing to attract patrons at various points in time of the day and by the week, bymaximizing the number of screenings of popular movies, corporate bulk sales of
tickets, and making the purchase of tickets easier through our website, the telephone
and electronic ticket kiosks.
Increase sales of food and beverages through product incentives, combo products ata cheaper price, which increases the average value of each transaction; and
Utilise additional areas adjacent to a few of our cinemas for restaurants/food courtsand sale of music CDs and cassettes. These additional areas are available in our
existing Multiplex Cinema, PVR Gurgaon, at Metropolitan Mall, Gurgaon and in our
properties under development at Juhu, Mulund and Sahara Mall in Gurgaon. We have
already sub-let the additional spaces at the MGF Mall to food and beverages outlets
on higher rentals.
Increase revenue from advertisers. As we increase our number of cinema screensthere will be an increase in the number of our patrons, which will increase the
attractiveness of our cinema circuit to advertisers. This should enable us to increase
our advertisement revenue.
Utilise economies of scale as we grow in size and expand our reach. Our goal for ourfilm distribution business is to be the preferred distributor for both English and Hindi
movies. Our strategy is to distribute Hindi films in the same territories where our
cinemas are located, whilst our strategy for international films is to purchase the entire
suite of distribution rights including the theatrical, satellite/television and DVD rights
for international films on an all India basis. With respect to international movies, we
intend to position PVR Pictures as the distributor of choice for independent
production houses that do not have a base in India for distributing their movies. We
intend to continue to follow primarily a derisked distribution model, which will be
based on commission and/or revenue sharing
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SWOT Analysis for PVR Cinemas
Strength
First mover advantage in the multiplex business in India.
Updated technology using Xenon technology for better movie viewing and also one of
the first multiplexes to introduce DOLBY digital surround systems.
Premium positioning.
Operating at higher margins.
Plays Hindi, English, Regional & foreign movies.
PVR is usually located in areas that will soon be developed and filled with retail
outlets and hence they have a strategic location advantage.Ambience.
Started the concept of a complete movie going experience.
Very strong brand equity.
TOM recall.
Original multiplex because it was the first to introduce the multiplex concept in
India.
Blend of retail & entertainment because along with cinema there is also provision for
F&B, shopping, etc.
WEAKNESS
High cost perceptions.
Overdependence upon uninterrupted supply of electricity / water etc.
T.A very specific (not mass service).
Disjointed images for all PVR properties.
Customer retention as many competitors are cropping up with competitive prices.Parking problems at some locations as they are inside malls, etc which interferes with
the space availability.
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OPPORTUNITIES
First mover advantage.
Growing family spend on entertainment due to high disposable income.Large film industryover 200 Hindi films every year and also many international
releases giving preference to India.
Alternative sources of contentCricket, F1 etc at PVR.
Distribution of electronic films to combat piracy.
PVR loyalists who prefer no other brand.
THREATS
Competition blooming large and many small players emerging in the market.
Governments interference.
Entertainment Tax.
Single screen theatres scattered all around which show same movies at very low
prices by compromising on the quality and ambience.
Other means of entertainment such as plays, recitals, concerts, etc.
Very little control over piracy.
Movies becoming bigger than the brand due to increased marketing of movies in
recent times.
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Porters 5 force analysis
THREAT OF NEW ENTRANTS
Investment Barriers
The investment barriers for the film exhibition are relatively insignificant. The cost of setting
up a 1200 seater multiplex in a metropolitan city is between Rs. 8-9 Crores apart from the
cost of leasing the land. Assuming a 40% occupancy rate and average ticket price of about
Rs. 100 and an operating margin of 25% the payback period is between 4-5.5 years. If food
and beverages earnings are taken into account this reduces to 3.5-4.5 years. Theatres have a
negative working capital requirement. This means that a multiplex project can generate free
cash flow in a very short while.
Regulatory Barriers
There are regulations that require that new films released in cinemas, may not be shown
on television or released on home video for a fixed window of time. This regulation is
intended to protect distribution in the cinema from the development of television and
video. The clearance periods may vary according to the box office success of a film, thus
creating further discrimination. This ensures that depending on the films potential, the
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exhibitors have sufficient period to lock-in as much profit as they can before the video
and television release of the film.
Established relations with the major distributors
Big players who have been in the film exhibition business for some time have established
close relationships with distributors. With lobbying with the distributors being extremely
important for rights acquisition to first-run movies; these relationships prove to be crucial
in getting rights to the most anticipated films.
Squeezing out small players
The rapid growth of the multiplex variety of film exhibition and its growing dominance
in deals with the distributors has meant that small theatres have to be content with the second-
run movies leading to major competition for the first-run big-banner movie exhibition
between the multiplexes only. All these factors result in this factor being attractiveto the new
entrants. In fact new entrants to the industry are mostly in the form of producers / distributors
entering as a vertical integration strategy.
THREAT OF NEW SUBSTITUTES
Though not a direct substitute, video and television releases for a movie are close substitutes
for movies exhibited in cinemas. Due to the regulations as mentioned before, this substitution
is mainly for the second-run of the movies. This effect is bound to increase as pay-per-viewtelevision is introduced and producers find television releases more profitable.
Where multiplexes differentiate from these substitutes is in the entire experience that
watching a film in a theatre provides. Watching a newly released film on the big -screen
with the entire family is a major attractant for the movie-goer.
Hence the avid movie-goer (which is a large proportion of the audience for a first-run film)
will never exchange the experience for watching the movie on video. For some families a
movie might be a form of a family outing. For such cases other forms of entertainment like
amusement parks might be considered as remote substitutes.
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All of this suggests that the ambience and quality of movies and infrastructure would play a
major role is mitigating this threat of substitutes.
Hence there is little threatof substitutes for first run films and is mildly unattractive for
second-run films.
POWER OF SUPPLIERS
The suppliers here are the film distributors and vendors for the food and beverages. Of these
the maximum power is wielded by the distributors. Although the process of giving exhibition
rights is supposed to be through inviting for bids, such transparency rarely exists and most of
the deals are closed through lobbying. Refusal to supply is a major concern for any exhibitor.
A decision by either of the two largest distributors to refuse to supply first run to an exhibitor
may lead to the destruction of that exhibitors business where that exhibitor is in acompetitive market. The decision
by a distributor not to supply may also be due to the exhibition site being of inferior
quality or that there is insufficient demand to justify a first release print.
This results in the power of suppliers being unattractive for the incumbents.
POWER OF CUSTOMERS
The customers usually choose a theatre based on the proximity of the theatre to the place of
residence / work. They dont differentiate much between theatres unless the ambience is very
different. Also there is a interesting heuristic observed in the location of the multiplexes
summarized by the 5-mile rule which states that no two theaters (competing or otherwise)
can show the same film if those locations are within five miles of each other.So a customer
is forced to go to the only theatre in her proximity which is showing the film she wants to see.
She will go to a theatre even if she is unhappy with it provided her desire to see the movie is
high enough. Besides this, many exhibitors are coming up with Customer Loyalty Programs,
further reducing the power of the customer. This results in the power of customers being veryattractivefor the new entrants.
INTERNAL RIVALRY
The major players in the multiplex business are PVR, Inox Leisure, Adlab Films and Shringar
Films. Now there are many new players competing with each other. The rivalry among these
players is mostly restricted to location selection. With new malls springing up very rapidly,
and multiplexes also looking to expand in numbers and into new areas negotiating lease deals
with mall owners is very important. A new trend emerging (as shown by the entry of Shringar
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Films, is that of vertical integration by production houses / distributors into the multiplex
business. Producers / distributors have realized that their operations could be enhanced by
joint control of distribution and exhibition. With producers wielding all the control over their
films, this could mean squeezing out of competition from independent exhibitors. But as of
now the integration have benefited to improve efficiency without much of a negative effecton competition.
Overall the internal rivalry in the industry is attractive for the incumbents.
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MARKETING MIX7 Ps
PRODUCT - While developing a service product; it is important that the package of
benefits in the service offer must have a customers perspective. Core Benefit is theMOVIES that the customer comes to a cinema hall for, along with the attendant
experience of PVR. The expected product in PVRs 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 Europain 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 exclusiveauditoriums, each equipped with 32 plush and fully reclining seats and generous
legroom. Patrons can also enjoy star like treatment at the exclusive Gold Class lounge
which provides an excellent pre cinema experience with scrumptious food and
beverages.
Bulk Bookings - There are special arrangements for bulk bookings (of twenty or
more tickets) done by corporate. Details can be filled online and 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 PVRWire 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 asincentives 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.
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
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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 pastregulated it. This allows PVR as the market leader to set its own prices. Prices that
had originally started from Rs 125 (for evening shows) and Rs 90 (for morning shows
and weekday plans) have increased to a high of Rs 150 and the lowest is Rs 100. The
high pricing however has not led to any change in the footfalls that PVR gets. Even in
slighter crowded shows, the occupancy rates as low as 35% reaches PVRs break-
even points. The pricing at PVR Europa is Rs 160 and a Gold Class ticket is charged
at Rs. 750 and even goes upto Rs. 900. It offers superior ambience, environment,
seating, viewing etc in the sum.
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.
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.
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PEOPLEThis indicates the Employees and Customers. Service must be fully
developed and internally accepted before its 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 employees, subject to Availability, Tickets to
employees are given for: 1+1 oneself and employees guest and 2 for immediatefamily 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 badgessymbolizes that the employees pride themselves
on being a part of the PVR family, Very great importance is given to person hygiene
and appearanceClean 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 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.
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 make the service tangible. Therefore, it is essential to
manage physical evidence. Atmospherehelps 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
.
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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
PVR Talkies PVR Premiere PVR Gold Class
Product 3 screen multiplexes 6-10 screen
multiplexes
6 screen multiplexes
Price Approx. 60-100 Rs Approx. 80-350 Rs Approx. 600-900 Rs
Promotion Print Ads in local
newspapers, Contests,
Bulk ticketing
Print Ads, Movie
events, contests, bulk
ticketing
Print Ads, Movie
events, contests, bulk
ticketing, pressreleases, private
screening, venue hire
Place Tier 2 & 3 towns
EG: AURANGABAD,
LATUR ETC
Tier 1 cities
Mumbai, Bangalore
etc
Tier 1 cities
Gurgaon, Delhi NCR ,
Hyderabad etc.
Physical Evidence Air cooled theatre, non-
recliner seats
Air conditioned
theatre, recliner seats,
ticket dispensing
machines
Air conditioned
theatre, controlled
recliner seats, ticket
dispensing machines
People Training & Benefits
Process Online ticketing, tele- booking, Booking at the venue
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STPD for PVR Cinemas
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
Consumer Demographic Segmentation
Age: 61% between 18 and 49
Gender: 47% Males / 53% Female
Income: 61% have income over 50K
Education: 55% of adult movie-going audience has attended/graduated college. Of these
adults, 37% have college degrees or higher
Consumer Psychographic Segmentation
PVR Movie Goers are people with high resources and can be classified as Experiencers
who seek variety and entertainment. Spend a comparatively high proportion of income on
fashion, entertainment, and socializing.
PVR Movie Buffs generally have the following major tendencies:-
-Go outside the home for entertainment
-Participate in sports and other active lifestyles
-Hard to reach through other traditional media
-lighter television and radio users, but heavy internet users
-Receptive to advertising in movie theatres, consider as part of their movie going experience
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PVR Talkies targets SEC B and C whereas PVR Premiere and Gold target segment A1, A2
and B1
Targeting
PVR being the first of its kind has always been a market leader and therefore its offeringto
the customer is Innovative.
PVR has premium pricingand 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 Loungein Delhi. PVR Cinemas has also recently introduced the concept of luxury
viewing to Bangalore. Gold Class Cinemashave 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
PVR Priya ofPVRs chain use Differentiation method for pricing. It practices different price
slabs for different target audience. For instance, they have tickets ranging from Rs 45 (for theyouth) to Rs 140 (for the upper class i.e. SEC A).
Positioning
PVR had, and still has a very well planned market position. Its premium positioningaffects
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 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. Its
positioning is evident in its mission statement also which says A commitment to deliverthe
best quality cinema viewing Every where, Every time.
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Differentiation
The points for differentiation are as follows
Provides multiplex experience at certain locations within the budget at PVR Cinemas
where they have differential pricing and PVR Talkies which are budget theatres.PVR Gold has a bar and a lounge inside the theatre which provides complete
entertainment and not just a multiplex theatre experience.
PVR Gold has ticket rate inclusive of freebies and merchandise.
PVR Premiere has differential pricing as per area and show timings
PVR Saket has the distinction of having the widest screen in India.
First to offer online ticketing facilities and also the first to accept credit card payment.
Has its monthly magazine called Movies First that updates the
movie lovers on the latest happenings in Bollywood and Hollywood.
The only cinema to introduce the Gold Class concept in India.
Has the best design in current multiplexes and thus gives the customer the best movie
experience.
PVR talkies PVR Premiere PVR Gold Class
Segmentation SEC B,C SEC A2, B SEC A1,A2
Target Age 3+ Age 3+ Age 3+
Positioning Value Positioning Quality Positioning Luxury Positioning
Differentiation Multiplex
experience within
the budget
Differential Pricing
as per area & show
timing
Freebies, Bar,
Lounge, Controlled
recliner seats
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Promotions by PVR Cinemas
PVR customers who use Visa Platinum, Visa Signature or Visa
Gold cards who buy cinema tickets through http://
www.pvrcinemas.com/will receive one free ticket out of every
two tickets purchased
http://www.pvrcinemas.com/http://www.pvrcinemas.com/http://www.pvrcinemas.com/http://www.pvrcinemas.com/8/4/2019 PVR Report
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Financial Performance of PVR Group2010-11
Financial Review:
While the performance of the Company for the first nine months of 2010-11 was decent,
however the fourth quarter was impacted due to the Cricket World Cup as no blockbuster
movies were released during the period. On an overall basis, the company has been able to
demonstrate promising growth in revenues led by 7%-10% growth in ticket pricing and food
& beverage realizations across the same stores.
The success of big blockbuster movies like Rajneeti, Housefull and Dabangg boosted the film
industrys fortune. Small Budget movies like Peepli Live, Phas Gaye Re Obama, Tanu Weds
Manu among others also did well at the Box Office.
During the financial year under review the total income of the Company were Rs. 360 Crores
as compared to Rs. 280.6 Crores in 2009-10, up by28%. EBITDA for 2010-11, were Rs. 60.7
Crores as compared to Rs. 31.7 Crores in 2009-10, up by 91%. Profit
The company at present operates 33 properties with 142 screens in 18 cities across the
country. The company added 19 Screens at 3 locations i.e. Chennai, Ahmadabad and
Lucknow in 2010-11. The Company had signed
Agreements/MOUs for 75-80 screens for the coming financial year in different parts of the
country including cities like Udaipur, Vijaywada, Delhi, Mysore, Bangalore, Bhopal, Pune
etc. which will further boost the revenues and profitability of the company.
The pipeline of the movies for FY 2011-12 looks exciting and the company expects its
revenues to consolidate further on the strength of its properties in the best locations.
The company expects that about 25-30 3D films that are expected to be released in financial
year 2011-12, will fetch higher ticket prices.
The company also has a plan to install digital IMAX theatre systems at its four locations in
India. The first two of them would be installed within the next 12 months at Companys two
multiplexes in Mumbai and Bangalore.
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Subsidiaries
As on March 31, 2011 the Company had three subsidiary companies namely M/s CR Retail
Malls (India) Limited (CRR) a wholly owned subsidiary, M/s PVR Pictures Limited (PVRPictures) and M/s PVR bluO Entertainment Limited (PVR bluO).
CR Retail Malls (India) Limited (CRR)
CR Retail Malls (India) Limited operates the 7 screen Multiplex at ThePhoenix Mills
Compound at Lower Parel, a prime retail and entertainment destination in Mumbai. CRR
during the period 2010-11 recorded an income of Rs. 28.65 Crores and a Net Profit of Rs.4.06 Crores.
On 5th May, 2011, PVR Ltd. entered into an arrangement with JM Financial group of
Companies for sale of equity shares of CRR. Under the terms of sale of entire equity share of
CRR, PVR Ltd. has realized Rs. 100 Crores. PVR has also entered into a lease agreement
with CRR to continue to operate the multiplex property on a long term lease basis.
PVR Pictures Limited (PVR Pictures)
PVR Pictures is in the business of film production & distribution. The year under review was
adversely impacted on account of poor performance of companys production Khelein Hum
Jee Jaan Sey. As a result the company incurred a loss of Rs. 22.18 Crores at PAT level
during 2010-11. The loss after excluding Minority Interest was Rs. 13.31 Crores.
Due to these losses both the investors i.e., JP Morgan Mauritius Holdings IV Limited and
India Advantages fund (IAF) have shown their intention for exiting from the company. Your
company (PVR Limited) has now decided to purchase balance 40% equity share capital of
PVR Pictures Limited from the said two investors and pay Rs. 60 Crores i.e., Rs. 30 Crores to
each of the said two Investors. Post acquisition of 40% share capital by PVR Limited, PVR
Pictures Limited shall become a wholly owned subsidiary of your Company.
The company is in the process of completing a movie Shanghai which is being directed by
Dibakar Banerjee starring Abhay Deol and Emran Hashmi and is expected to be released in
the third quarter of the FY 2011-12.
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PVR bluO Entertainment Limited (PVR bluO)
PVR bluO in the financial year 2010-2011 earned a Net Revenue of Rs.14.27 Crores and a
Profit after Tax of Rs. 2.08 Crores.
Presently the company operates Indias largest bowling alley center in Ambience Mall,
Gurgaon. The center has been able to establish itself as a premier leisure and entertainment
destination for consumers in NCR.
The Company has made a roadmap for expansion of its business and has plans to open
additional 3-4 bowling centres in India in next 12 months.
6D Technology
Originally, 6-D technology was perfected by the Brainstorm Institute for use in PowerPooint
presentations. Although PowerPoint presentations can be viewed on the desktop, spectacular
results are achieved when they are projected onto a large screen for conferences, shows,
exhibits, or other presentations.
Another use for Amazing 6-D (twice as good as 3-D!) Technology is to create stunning
HyperFlash animations. HyperFlash is an ideal way to add some extra "pop" in your
PowerPoint presentation or on a web site.
Speaking of web sites, Amazing 6-D (twice as good as 3-D!) Technology can also be used
throughout your web site to add an extra dimension of fun to the viewing experience.
Doc Collins and the rest of the The Brainstorm Institute's faculty are currently exploring
methods of incorporating Amazing 6-D (twice as good as 3-D!) Technology into videopresentations, theme park exhibits, medical, technical and scientific applications, live theater,
clothing, and other innovative forums. In addition, Amazing 6-D (twice as good as 3-D!)
Technology can be adapted for use in print materials as well as electronic
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References
http://www.bestmediainfo.com/2011/07/indian-entertainment-media-industry-to-grow-by-13-2-cagr-
pwc/
http://www.pvrcinemas.com/corporate/about-us.aspx
http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/PVR-Ltd/532689
http://www.pvrpictures.com/about-us/
http://www.pvrbluo.com/about_bluo.html
http://www.filmfare.com/articles/top-10-exhibitors-1286.html
http://www.sebi.gov.in/dp/pvrlimited.pdf
http://www.indiaprwire.com/misc/pvr-cinemas.htm
http://www.selectcitywalk.com/cinemas.htm
http://www.4psbusinessandmarketing.com/24042008/storyd.asp?sid=1872&pageno=2
http://www.bestmediainfo.com/2011/07/indian-entertainment-media-industry-to-grow-by-13-2-cagr-pwc/http://www.bestmediainfo.com/2011/07/indian-entertainment-media-industry-to-grow-by-13-2-cagr-pwc/http://www.pvrcinemas.com/corporate/about-us.aspxhttp://www.pvrcinemas.com/corporate/about-us.aspxhttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/PVR-Ltd/532689http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/PVR-Ltd/532689http://www.pvrpictures.com/about-us/http://www.pvrpictures.com/about-us/http://www.pvrbluo.com/about_bluo.htmlhttp://www.pvrbluo.com/about_bluo.htmlhttp://www.filmfare.com/articles/top-10-exhibitors-1286.htmlhttp://www.filmfare.com/articles/top-10-exhibitors-1286.htmlhttp://www.indiaprwire.com/misc/pvr-cinemas.htmhttp://www.indiaprwire.com/misc/pvr-cinemas.htmhttp://www.selectcitywalk.com/cinemas.htmhttp://www.selectcitywalk.com/cinemas.htmhttp://www.4psbusinessandmarketing.com/24042008/storyd.asp?sid=1872&pageno=2http://www.4psbusinessandmarketing.com/24042008/storyd.asp?sid=1872&pageno=2http://www.4psbusinessandmarketing.com/24042008/storyd.asp?sid=1872&pageno=2http://www.selectcitywalk.com/cinemas.htmhttp://www.indiaprwire.com/misc/pvr-cinemas.htmhttp://www.filmfare.com/articles/top-10-exhibitors-1286.htmlhttp://www.pvrbluo.com/about_bluo.htmlhttp://www.pvrpictures.com/about-us/http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/PVR-Ltd/532689http://www.pvrcinemas.com/corporate/about-us.aspxhttp://www.bestmediainfo.com/2011/07/indian-entertainment-media-industry-to-grow-by-13-2-cagr-pwc/http://www.bestmediainfo.com/2011/07/indian-entertainment-media-industry-to-grow-by-13-2-cagr-pwc/