A Project Report on Indian Multiplex Industry

under the guidance of

Professor Shobha Mathews

(Service Sector Management)

Our Team
Name Gurminder Singh Raja Singh Yashovardhan Bichu Kanika Datta Gurleen Kaur Sahil Mhadkar Roll # 05 08 18 22 38 39

Acknowledgement Special thanks to Professor Shobha Mathews

Entertainment Industry
Fastest

Growing Sector Improves Quality of Life Current Scenario Film Industry

Multiplex
Integrated

Entertainment Channel of Income Dual Meaning Problem faced by Multiplex

Service offered by a Typical Multiplex

4

Screen Ticketing option Cafeteria Entertainment Malls Resturants

Player of Indian Multiplex Industry

PVR

Cinemas INOX Leisure BIG Cinemas CINEMAX FUN Cinemas

Marketing Mix of Multiplexes

Product

Ticketing options

Entertainment
Air conditioning Food Courts and Restaurants Parking Facility Luxury Recliner Seats

Price

Indian multiplex follow 2 methods of pricing: Cost based pricing It is also referred as cost plus pricing. It determines cost of service delivery as well as predetermined rate of profit in order to arrive at a price. Competition based pricing In this method the price is determined on the basis of competitors price. The price of multiplex tickets varies according to the show timings and movies. The ticket prices are quite less for the morning 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 fully reclining seats and personalized menu to boot.

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 the people 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 a multiplex. Their services include viewing of movies, cafeterias, entertainment arena and so on.

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.

Physical Evidence
Crucial Factor Immediate Impression Ambience and Atmosphere Essential and Peripheral Evidence Physical Evidence 1. Social 2. Design 3. Ambience

Place
Crucial People Location Accessibility Far or Near Makes a lot of difference Safe Locality Crowd Cleanliness Abundant Parking Space Pay and Park

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

Process
Well defined and Systematic Process Consideration to staff Proper Coordination between departments Smooth Functioning Good Planning Saves time and efforts

Scope of Multiplex
Cinema Exhibition Industry in India is growing at 10% per annum. Cinema crazy nation, tax exemption, quality locations. Food & beverages major source of revenue. More than 3 screens with seating capacity of 150300 seats each screen. Multiplexes contribute to 27% of the total revenue of the Entertainment Industry.

SWOT Analysis
Strengths Entertainment booming sector in India. Largest in film production and ticket selling

Weakness Entertainment sector is highly fragmented Lack of efforts for media penetration-low media penetration

SWOT Analysis
Opportunities Expecting growth Interest of global investors Expansion in rural areas Threats Piracy High Real Estate Prices is a barrier to profitability.

Why is there a Multiplex Boom?

Aspirations Pride and honor. Attitudinal change Combination of various facilities Mall with multiplex Multiplex with shopping facilities and amenities More number of screens

Why are Multiplexes preferred over single screens for movie viewers?
Multiplexes The multiplexes enjoy rebates and exemptions from the government. (eg Entertainment Tax) They just dont offer movie but also offer so called add-on facilities Single Screens Single Screen doesnt enjoy such exemptions on part of government

Cineplex on the other hand offer only movies and no extra facilities.

They offer customer with choice in different Single screens dont offer such facilities with movies no options to the customers Talking of the ambience, multiplex offer better sitting , Dolby digital sounds and good graphics for viewers Multiplexes, by offering food courts, ATM Facility, shopping facilities can offer Add value to money to customers. Single screens on the other hand dont offer such facilities to viewers. Single Screen on the other hand doesnt offer add value to money to the customers income.

Segmentation and Target Group

Groucho (Age grp. 25 44 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 35 55 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 15 24 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 friends Enters 5 minutes late in the movie hall.

Marketing Media Channels

for 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 etc Web - Personal website for multiplex is used by firm to market the movie. Promotional activities 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.

Marketing Strategies
Movie Marketing Caf Marketing: Special Events Marketing Movie Shootings & Advertisements.

Special Screening of Hollywood Movies

Are the single screen theatres in India going to die soon?

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 the rural or their expected market.

Strike Issue of Multiplexes

Multiplexes and distributors / producers starting conflicting on revenue share. However, distributors / producers would argue that content 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 benefit of 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.

MULTIPLEX BUZZ!!
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

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-a627000f1f68a9bf http://economictimes.indiatimes.com/features/brand-equity/Why-Indian-youth-prefermultiplexes/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-chainin-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-newscreens-in-12-months/ http://www.indianmuslims.info/news/2007/nov/25/multiplexes_fast_gobbling_indias_single_ha ll_theatres.html

Thank You