1

A
RESEARCH PROJECT
ON

CUSTOMER PERCEPTION
REGARDING MULTIPLEX IN
KURUKSHETRA
FOR THE PARTIAL FULFILLMENT OF THE
DEGREE OF MASTER OF RETAILING AND
LOGISTICS MANAGEMENT (MRLM)
(2009-10)

Under the Guidance of:

By:

Submitted

Prof. Narender Singh

Naqvi

Tabish

Department of Commerce

Roll 23

K.U.K.

MRLM - Final

DEPARTMENT OF COMMERCE

KURUKSHETRA UNIVERSITY, KURUKSHETRA

DECLARATION
I Tabish Naqvi, hereby declare that, the report entitled CUSTOMER
PERCEPTION REGARDING MULTIPLEX IN KURUKSHETRA
Submitted by me for the award of Master of Retailing and Logistics
Management under Kurukshetra University, Kurukshetra is the original
work conducted by me and data provided in the study is authentic to the
best of my knowledge and belief. This report is not submitted to any
other institute or university for the award of any other degree.

(Tabish Naqvi)

Dr. Narender Singh

Professor

CERTIFICATE

It is Certified that the project report entitled CUSTOMER

PERCEPTION REGARDING MULTIPLEX IN KURUKSHETRA
is completed by, Mr. Tabish Naqvi, student of MRLM (Master of
Retailing and Logistics Management)-4th Sem, as a part of MRLM
degree program.
I wish him a successful career and life.

(Narender Singh)

ACKNOWLEDGEMENT
This is always a sense of gratitude which one express for other for their
help and Supervision in achieving the goals. I too express my deep
gratitude to each and every one who has been helpful to me in
completing the project report successfully.
At first place, I am highly thankful to Prof. Narender Singh (Professor,
Dept. of Commerce, and K.U.K.) for allowing me to pursue my project
report

on

CUSTOMER

PERCEPTION

REGARDING

MULTIPLEX IN KURUKSHETRA.
I feel short of words to thanks my parent and friends who had directly or
indirectly instrumental in the completion of the project. I am indebted to
all for their time and not forgetting the almighty god for showering
blessings on me during the completion of Project report.

Tabish Naqvi

Sr.no. Topic

Page

no.
1

Executive Summary

The Indian Film Industry Scenario

Regional Indian Film Industries

Multiplexes

9-10

Introduction to Glitz Cinema

10

The Kurukshetra Scenario

11

Cineplexes

12

Objectives of the research

13

Research Methodology

14

10

Data Collection

15-16

11

Analysis of Data (1)

17-33

12

Analysis of Data (2)

34-44

13

Conclusion

45

14

Recommendations and Suggestions

46

15

References and Sources

47

EXECUTIVE SUMMARY

This study is all about to understand the consumers perception towards

the multiplexes and to forecast the future of multiplexes. The study
reveals that the future of the multiplexes is very bright and since there is
sudden increase in the per capita income which led to the increase in
standard of living of the natives. Now the metropolitan culture has
started intruding in the city and people are in the condition to spend
more. The spurt in the nationwide standard of living of the people has
led to some very drastic changes in the current scenario.
This study is carried out with the help of questionnaire which discloses
the extravagant responses of the respondents towards the multiplexes. As
per the data collected we found that all respondents welcome the culture
of multiplexes in the city. The people are very happy to have the pleasant
experience of watching the movies in multiplexes which they so far used
to get only in metropolitans but now in their homeland. The fact is quite
apparent with the kind of data we have gathered through this study
which is mentioned later.
In our research project our point of focus is on determining the movie
viewing habits of the customers of Kurukshetra. It includes the medium
preferred by the people for watching movies, how frequently they watch
movies and what their monthly expenditure on it is. Some key issues like
the competition between multiplex and Cineplex in Kurukshetra are
specifically focused

THE INDIAN FILM INDUSTRY

SCENARIO
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 the largest in the world in
terms of the ticket sales and the number of films produced annually (877
feature films and 1177 short films were released in the year 2003 alone).
Over 800 films are censored / released by IFI each year in over 15
languages.
Movie tickets in India are among the cheapest in the world India
accounts for 73% of movie admissions in the Asia-Pacific region, and
earnings are currently estimated at US$2.9 billion.
Fourteen million Indians go to the movies on a daily basis (about 1.4%
of the population of 1 billion) and pay the equivalent to the average
Indian's day's wages (US $1-3) to see a film. The Central Board of Film
Certification of India cites on its website that every three months an
audience as large as India's billion-strong population visits cinema halls.
The Indian film industry is highly regionalized with the largest
language groups supporting major regional industries. The Telugu film
industry produces the largest number of films every year in India, with
about 245 films produced in 2006.

Regional Indian Film Industries

Bollywood: Hindi Film Industry

Kollywood: Tamil Film Industry
Bengali Film Industry
Sandalwood: Kannada Film Industry
Tollywood: Telugu Film Industry
Marathi film industry
Malayalam film industry

MUPLTIPLEX
With the emergence of phenomenon like liberalization and globalization,
society and culture of every country has taken a leap. We can see
transmission of ideas, trends, culture and behavior across the global. One
of the trends that have caught the momentum in the past decade is the
ERA OF MULTIPLEX. The reasons for the same can be attributed the
fact that over the past couple of years, the dynamics of movie making
has changed dramatically. Not only has the craft of storytelling changed,
the audiences have as well. The "multiplex audiences". These are the
upwardly mobile section of the audience which doesnt mind paying for
a story well told, no matter how unconventional it is. This in turn has
given rise to the multiplexes swish, clean, popcorn smelling
environments which woo you with combo meals and a great film.
Producers were quick to spot this trend and starting creating cinema
which was largely aimed at the "multiplex audience".
"Multiplexes" are essentially cinemas with 3 or more screens. Over the
last few years, multiplexes have emerged as a trend in urban India. They
provide a quality viewing experience and are generally located around
shopping malls to increase footfalls in these malls. Each screen in a
multiplex has small seating capacities in the range of 150-300 seats.
With around 11500 active screens, India is under screened. China, which
produces far lesser films than India has 65,000 screens while the US has
36,000. Indias screen density stands low at 12 screens per million
populations. There is a need of at least 20,000 screens as against the
current 11500. This gives multiplex operators enough room to grow as
the traditional single-screen theatres do not have the financial
wherewithal nor do they enjoy tax incentives. The nation's multiplex
industry is all set for an unprecedented boom buoyed by positive
regulatory changes and booming consumerism.

10

In India, the mushrooming of multiplexes since the mid-90s has changed

the dynamics of the Indian Film Industry. Production costs are now
recovered in days, not months and viewers have accepted the concept.
There have been concerns over high ticket prices, and the phenomena
has predominantly been restricted to the larger cities, but Indian cinema
chains like INOX, PVR (Priya Village Roadshow) and CineMax are
changing the rules of exhibition in the world's largest film industry. The
Largest Multiplex in India is the 11-screen multiplex by PVR (Priya
Village Roadshow) at The Forum (shopping mall), Bangalore.
INTRODUCTION TO GLITZ MULTIPLEX
Stargaze Entertainment Private Limited is an initiative to build a
business around the film exhibition opportunity in India. Stargaze, via
multiple development models, is creating a multiplex operation and
management business. The plan is to develop it into a national brand
targeting the core movie- viewing demographic. It is focused on
capturing the opportunity created by an identified market need,
favorable demographics and the prevalent retail organization in India.
The demand of 300 million young urban Indians for an affordable and
quality cinema is a target we aim at and the organized retail revolution is
helping us in our journey.
It aims at establishing GLITZ Cinemas as one of Indias leading
multiplex brands delivering a world class cinematic experience at an
affordable price. This will be based on our strategy which is to identify
an optimum and profitable cinema configuration and create regional
strangleholds while developing national presence across the top 51
cities.
It is currently working with leading international and national designers,
architects, consultants, advertising agencies, training consultants and
cinema and hospitality industry professionals to create Indias strongest

11

Cinema brand. Technology and service excellence will remain a key

ingredient in our implementation strategy. Stargaze Entertainment (P)
Ltd. is funded by Capital18 and along with its other investments in the
film and media space, it completes the film value chain. Its investors
film and media prowess provides Stargaze with a competitive priority
over other cinema exhibition companies which we will actively seek to
leverage

THE KURUKSHETRA SCENARIO

At Glitz cinemas, Kurukshetra, there is an international viewing experience for the
first time in city. Be it the digital sound, crystal clear picture, extra wide seats,
reclining sofa's and a truly international Snack Bar, Kurukshetra will sample the
best of experience at affordable prices. The entire seating system uses high back
wide bodied seats to ensure super comfort; with an exclusive waiting lounge and
the best of food & beverages to be served right to your seat, you will feel like a
king. Glitz Cinemas also endeavors to screen Hollywood movies in Hindi at
international release dates. They are introducing fully computerized ticketing
including online & phone facility which ensure No Queues for all our patrons.
Glitz cinemas announce the latest addition to the family. Glitz Kurukshetra, a 3
screen 800 seater multiplex has been started on 9th Oct 2009 in the heart of the
city, Kessel Mall, Sector 17 Kurukshetra.

12

CINEPLEX (SINGLE SCREENS)

Cineplex are the single screen theatres having capacities in the range of
800-1,200 seats generally. These are the traditional theatres in the
countries like India. India currently has 11500 existing screens, 95% are
single screens. But with the emergence of the multiplexes these single
screens seem to be getting less popular.
In Kurukshetra, as in other cities, there are a number of Cineplex. But
with the emergence of the Multiplex i.e. GLITZ, it would have definitely
be affected. As the tastes and preferences of customers are keep on
changing, the perception regarding the product or service also changes.

Our target Cineplexes of Kurukshetra are:

Harsh theatre and Paras Cinema

Harsh theatre is the one of the oldest theatres in Kurukshetra. It is about

23 years old cinema hall. Paras cinema is older than Harsh theatre. It is
about 27 years old cinema hall.

As these are very popular among the local people of Kurukshetra along
with the adjacent villages near Kurukshetra, so we will identify the
perception towards the movie venue of customers after the emergence of
GLITZ multiplex.

13

OBJECTIVES OF THE RESEARCH

a) To identify the difference between Multiplex and
Cineplex(Single screen) in Kurukshetra on:
Financial aspect
Customer satisfaction
Infrastructure
Facilities provided
Employees behavior
b)To study the prospects of multiplexes in Kurukshetra
focusing on;
Growth reasons
New entrants/ competitors analysis
c) To study the future of single screens.

14

RESEARCH
METHODOLOGY
Research Methodology comprises of defining the problem,
collection, organizing and evaluation data, making
deductions, reaching conclusions and suggesting solutions.

PROBLEM DEFINITION
The problem area is the perception and preference of different customers
for the multiplexes and single screens theatres in Kurukshetra. The
customers tastes and preferences keep changing day by day. The factors
like price, quality, place, the service delivery, ambience, physical
elements- interior, parking and many more do influence the perception
and preference of the customers towards a particular good or a service.
On 9th Oct 2009 the GLITZ multiplex started. So the experiences the
local people have had and the future prospects of multiplexes in
Kurukshetra need to be studied.

DATA COLLECTION

15

Secondary data:
Different published and unpublished (only online) materials basically
articles from the internet have been focused on.
We have studied and gathered information from a number of authentic
sources like:
Books
Newspapers
Magazines
Internet
As we have used many websites and links and book like Research Methodology
by C.R. Kothari. Secondary data alone is not sufficient for any research. So one
need to collect primary data as well. This is a very important part of research
methodology.

Primary Data:
The primary data are those which are collected afresh and for the first
time, and thus happen to be original in character.
For our research we have used only the questionnaire survey method to
conduct our analysis. We prepared a questionnaire and got it filled by 50
respondents.

PLACE:

16

MULTIPLEX:

GLITZ, KESSEL MALL, KURUKSHETRA

CINEPLEX ( SINGLE SCREEN):

PARAS CINEMA
HARSH CINEMA

ANALYSIS OF DATA (1)

17

The following graphs and table are basically a representation of the

respondents in the form of questionnaire being filled by them. The
number and percentage wise distribution is shown below and also
separate analysis of the graphs has been shown therewith. Finally a
detailed conclusion of all the graphs has been told focusing on key
points as well.

GRAPHICAL REPRESENTATION
OF DATA
A QUESTIONNAIRE ON CUSTOMER
PERCEPTION REGARDING MULTIPLEX
IN KURUKSHETRA
A)How frequently do you watch movies?
a. Once in a week
b. Once in a month
c. Fortnightly
d. Quarterly

18

Quarterly; 16%

Once in a week; 22%

Fortnightly; 12%

Once in a month; 50%

INTERPRETATION: From the above chart we found that 50 % of the

total respondents are visiting cinemas only once in a month. But the
strange fact is that the second higher figure is 22% i.e. people visiting
once in a week.

B) Which place would you prefer?

a. Multiplex
b. Cineplex (Single Screen)

19

6%

Multiplex
Cineplex

94%

INTERPRETATION: From the above chart we can see that 94% of the
total respondents would prefer to go to MULTIPLEX in Kurukshetra.
This is obviously due to the quality and service provided by GLITZ.
Only the 6 % are not willing for MULTIPLEX because of the high price
and their low disposable income majorly. You can see that how all of a
sudden the taste and perception of the customers regarding the venue of
movie watching has been changed.

20

C)For what specific reason would you prefer multiplex?

a. Status issues
b. Quality
c. Ambience
d. Crowd
e. Food court
f. Others
Status issues
Crowd
Not Applicable

6%
20%

Quality
Food court

Ambience
Others

6% 6% 2%

60%

INTERPRETATION: As the chart is indicating the preference of the

customers for the Multiplex is majorly an influence of the quality
provided by the Multiplex. People go for movies to get entertained, and
Multiplexes gives a value addition to them. This satisfies the customer
more. In the above chart 60 % of the total respondents go to the
multiplexes because of quality and 20% are influenced by the Ambience.
Please Specify: out of 50 respondents, 3 (6%) preferred Cineplex
instead of Multiplex. So in some questions they are not applicable.

D)Do you find Multiplex in your budget?

21

a. Yes
b. No

Yes

No

14%

86%

INTERPRETATION: It is clear in the above chart that most of the

people in Kurukshetra find Multiplex in their budget. 86% said YES to
the question. Rest 14% is not finding the Multiplex in their budget. They
feel that Multiplex in unreasonably expensive and the prices are not
suitable to their pockets.

E) Do you feel the food courts in the

multiplexes are too expensive?

22

Strongly agree Agree

Disagree

Strongl
y
disagree

Disagreed; 16%
Strongly Agreed; 24%

Agreed; 60%

INTERPRETATION: We have found it earlier from the data and the

graphs that 94% of the customers would prefer Multiplex but it is also
shown in the above figure that 60% of the customers find that the food
court in the multiplexes are too expensive. From general talks we find
that according to them the simple packet of Popcorns is around Rs.50/which is comparatively too expensive as of the traditional cinemas or
Cineplexs. Though people are visiting Multiplexes but almost of the
total respondents i.e. 24% are strongly agree with the expensiveness of
the food courts in multiplexes.

F) Do you find the ticket price of multiplex is paid off by the

service quality provided?

23

Strongly agree Agree

4%
18%

Strongly Agreed

Disagree

6% 14%

Agreed

Disagreed

Strongl
y
disagree

Strongly Disagreed

58%
NOT APPLICABLE

INTERPRETATION: After interpreting the above chart we came to

know that though the customers find the food courts in the Multiplexes
are too expensive but even then they agree, rather strongly agree with
the quality provided and the price paid. Here 18% respondents disagree
but still 58% strongly agree with the price paid off and the service
quality provided. Out of 50, three respondents were not in the favor of
Multiplexes, so in some queries they are marked as Not Applicable.

G)Which feature of multiplex contributes to your satisfaction?

24

ITEMS

Strongl Agree Disagree Strongly

y
d
d
disagreed
agreed

Sound Quality
Picture quality
Air
Conditioning
Comfort
Atmospherics
Availability of
food court
Strongly Agreed

Agreed

Strongly Disagreed

NA

Disagreed

74%
58%

60%

54%
40%

36%

52%
42%

50%
44%

34%
20%

6%
0%
0%

6%
0%
0%

6%
0%
0%

6%
0%
0%

6%
0%
0%

6%
0%
0%

INTERPRETATION: Taking into consideration the above

statistics we can interpret that the difference is just of strongly
agreed and agreed only. The highest bar is of the availability of
food court. Customers are strongly agreed because in every
multiplex there is a sure availability of food courts. Then the
customers are satisfied with the sound and picture quality, and also
the AC and the luxury along with atmospherics.

25

H)

Do you think that the size of the halls in Multiplex is big

enough to accommodate a larger no. of people?

Strongly agree

Agree

Disagree

Strongly Agreed
Disagreed

Strongly
disagree

Agreed
Strongly Disagreed

8% 6%
26%
60%

INTERPRETATION: According the above statistics most of the

customers are agreed that Multiplexes are big enough to accommodate a
larger audience, but 26% of the customers, means more than disagree
with this thing. Multiplexes mostly accommodate 150-300 people in
halls. But if we compare it to the Cineplexes, they have a seating
capacity of 800-1200 people. So from the point of view of
accommodating a larger audience even 8% people strongly disagree.

26

I) Do you think that single screen theatres are going to die

soon?
Strongly Agree

Agree

Disagree

Strongly Agreed
Disagreed
14%

Strongly
Disagree

Agreed
Strongly Disgreed
10%

28%
48%

INTERPRETATION: As indicated, our analysis shows that 48% of the

people agree that single screens theatres are going to die, but still 28 %
do not agree and 14 % strongly disagree. In countries like India and in
places like Kurukshetra specifically, the movie should be in budget. Yes,
there are so many challenges on the way of Single screen theatres but
they cannot be considered as they are going to die soon. Rest on this
context is discussed further.

27

J) How many new Multiplexes do you expect in Kurukshetra

by the end of the next year?
0

Or more

10%
22%

48%

More

20%

INTERPRETATION: From the above chart, we may identify the

prospects of multiplexes in Kurukshetra. Its very strange but almost half
of the total respondents believe that there will be no more multiplex by
the end of the next year. As future is always uncertain and can never be
anticipated but still the perception of the customer indicates a less
expectation of more multiplex. 22% of people are expecting 2 more
multiplexes and 10% expect more than too. This difference in opinion
might be because of the different perceptions. Some people think that in
the history there is just a single multiplex than how can be 1 or 2 till next

28

year? But some of them do expect by analyzing the changed preferences

in movie watching and spending habits. They think if 1 multiplex is
running profitably then why more multiplexes can run successfully?

Please tick marks the following appropriate choice on the

scale against each of the following items indicating your
perception about the same.

A) FOOD COURT FACILITIES

ITEMS

STRONG AGREE
LY
AGREE

DISAGR
EE

STRONGLY
DISAGREE

FRESHNESS
FLAVOUR
VARIETY
PRICE
DISCOUNTS
BALANCE
RETURN
PROMPTNES
S OF
SERVICE
Strongly Agreed

Agreed

Strongly Disagreed

NA

Disagreed
62%

52%

48%
40%

42%

50%

48%

42%
34%

28%

28%

18%
6%
0%
0%

6% 6%
0%

6%
0%

10%

36%
28%26%

32%

16%
6%
0%

8%
6%

6%
4%

6%
0%
0%

29

INTERPRETATION: As seen in the previous graphs, food court is a

major factor that contributes to the customer satisfaction. Here, from this
chart we find that customers are satisfied with the freshness; some are
disagreed with the flavor and variety. But the %age of agreement is
higher that of disagreement. Majorly, the customers are disagreed with
the price in the food courts and the discounts (not much offered) in the
food courts.42% of customers are disagreed on the basis of discounts
and 34% are disagreed on the basis of Price. Rather 8% are strongly
disagreed on the basis of discounts.
Please Specify: out of 50 respondents, 3 (6%) preferred Cineplex
instead of Multiplex. So in some questions they are not applicable.

B) PARKING FACILITIES
ITEMS
SPACE
FEE PAID
SECURITY
TIMING
TRAFFIC
MANAGEMEN
T

STRONGL AGRE
Y AGREE E

DISAGR
EE

STRONGLY
DISAGREE

30

Space
Fee Paid
Timing
Traffic Management
68%
60% 60%
48%
46%
36%
34%
30%
22%
22%
12%
12%
12%
4%
4%

Security

6%6%6%6%6%
0%0%0%0%0%

INTERPRETATION: Parking facility is one of the major drivers of the

organized retail sector. People want to get rid of crowded environment.
From the above analysis we find that the space provided by Glitz gets
34% agreement of the people and 22 disagreed. But the important aspect
like Security secures a 68% of the total agreement of the people. The
FEE PAID gets 60% agreement of the Kurukshetra people. But 36% are
disagreed with the traffic management in parking at multiplex. This is
due to lesser experience according to the local people. As this is the first
multiplex ever, so they are unable to anticipate and control the sudden
crowd in the parking, but they are improving.

C) INFRASTRUCTURAL FACILITIES
ITEMS
WASHROO

STRONGL
Y AGREE

AGREE

DISAGREE

STRONGLY
DISAGREE

31

M
CEANINES
S OF
WASHROO
M
ESCALATO
RS
LIFTS
RAMPS
Washroom

Cleaniness

Escalators

Lifts

Ramps

82%
74%

70%

68%

64%

30%

26%

20%
12%

12%
6%6%6%6%6%

0%0%
Strongly Agreed

0%0%
Agreed

0%
0%0%
Disagreed

0%0%0%
Strongly
Disagreed

NA

INTERPRETATION: Then comes the infrastructural facilities. These

facilities contribute to the customers satisfaction a lot. The customers
are in agreement for the washroom facilities and the cleanliness of the
washrooms.

32

82% people strongly agree to this due to the cleanliness of the

washrooms and 30 % are strongly agreed from the escalators, rest 64%
are agreed because of the service of escalators provided by the
multiplex. But as there is no lift or the facility of ramp in the multiplex
so the people are totally disagreed and they suggest that there should be
lifts and Ramps (for the old and the disabled) as well.

D) SATISFACTORY EMPLOYEES
BEHAVIOUR
ITEMS

PARKING
STAFF
LIFTMEN
SECURITY
MEN
FOOD
COURT
EMPLOYEE
TICKETING
CLERK

STRONG
LY
AGREE

AGREE

DISAGR
EE

STRONGLY
DISAGREE

33

Parking Staf
Security Men
Ticketing Clerk
80%

78%

Liftmen
Food Court Employee

88%

56%

48%

6%

40%

4%

24%
12%

12%
6%4% 2%

6%2% 2% 6%6%6%6%6%

0% 0%

0%

INTERPRETATION: It is clear in the above chart that mostly the

customers are satisfied with the employees behavior at the multiplex.
Like 80% are satisfied with the food court employee, 88% agree with the
ticketing clerk. But perceptions of different people are always different.
Some people might have some bitter experiences so that they are not in
agreement with this. Like 6% are disagreed with the parking staff, but
the highest figure is with the security men i.e. 12%. This may be because
of his bit strictness towards people. The people are not allowed to carry
their personal bags, nail cutters, camera, laptop, knife, chewing gums etc
inside the hall because of security reasons; which sometimes lead to an
issue between the security people and the customer. So because of this
reason people do not find security peoples behavior as acceptable.

34

ANALYSIS OF DATA (2)

We found that 50 % of the total respondents are visiting cinemas only

once in a month. But the strange fact is that the second higher figure is
22% i.e. people visiting once in a week.

From this analysis we found that 94% of the total respondents would
prefer to go to MULTIPLEX in Kurukshetra. This is obviously due to
the quality and service provided by GLITZ. Only the 6 % are not willing
for MULTIPLEX because of the high price and their low disposable
income majorly. You can see that how with time the taste and perception
of the customers regarding the venue of movie watching has changed.
The preference of the customers for the Multiplex is majorly an
influence of the quality provided by the Multiplex. People go for movies
to get entertained, and Multiplexes gives a value addition to them, in
youngsters this is a new trend and just to keep up with their peer
pressure they are to move along the tide. This satisfies the customer
more. Out of 50 respondents, 3 (6%) preferred Cineplex instead of
Multiplex. So in some questions they are not applicable like in this.

Most of the people in Kurukshetra find Multiplex in their budget. 86%

said YES to the question. Rests 14% are not finding the Multiplex in
their budget. They feel that Multiplex in unreasonably expensive and the
prices are not suitable to their pockets.

35

We have found it earlier from the data and the graphs that 94% of the
customers would prefer Multiplex but it is also shown in the above
figure that 60% of the customers find that the food court in the
multiplexes are too expensive. From general talks we find that according
to them the simple packet of Popcorns is around Rs.50/- which is
comparatively too expensive as of the traditional cinemas or Cineplexs.
Though people are visiting Multiplexes but almost of the total
respondents i.e. 24% are strongly agreed with the expensiveness of the
food courts in multiplexes.
We came to know that though the customers find the food courts in the
Multiplexes are too expensive but they are even then agree rather
strongly agreed with the quality provided and the price paid. The 18%
responded as disagreed but still 58% are strongly agreed about the price
paid off and the service quality provided. Out of 50, three respondents
were not in the favor of Multiplexes, so in some queries they have
marked as Not Applicable.

Taking into consideration the above statistics we can interpret that the
difference is just of strongly agreed and agreed only. The highest bar is
of the availability of food court. Customers are strongly agreed because
in every multiplex there is a sure availability of food courts. Then the
customers are very satisfied and agreed with the sound and picture
quality, and also the AC and comfort along with atmospherics.
According to our survey and the questionnaires filled by the customers,
most of the customers are agreed that Multiplexes are big enough to
accommodate a larger audience, but 26% of the customers, means more
than are disagreed with this thing. Multiplexes mostly accommodate

36

150-300 people in halls. But if we compare it to the Cineplexes, they

have a seating capacity of 800-1200 people. So from the point of view of
accommodating a larger audience even 8% people strongly disagreed.
Our research shows that 48% of the people do agree that single screens
theatres are going to die, but still 28 % are not agreed and 14 % are
strongly disagree. In countries like India and in places like Kurukshetra
specifically, the movie should be in budget. In a country like India, the
expenditure on movie or price of movie tickets has always been a
question. Yes, there are so many challenges on the way of Single screen
theatres but they cannot be considered as they are going to die soon.
We also tried to identify the prospects of multiplexes in Kurukshetra. Its
very strange but almost half of the total respondents believe that there
will be no more multiplex by the end of the next year. As future is
always uncertain and can never be anticipated but still the perception of
the customer indicates a less expectation of more multiplex. 22% of
people are expecting 2 more multiplexes and 10% expect more than too.
This difference in opinion might be because of the different perceptions.
Some people think that in the history there is just a single multiplex than
how can be 1 or 2 till next year? But some of them do expect by
analyzing the changed preferences in movie watching and spending
habits. They think if 1 multiplex is running profitably then why not more
multiplexes can run successfully? So they do expect than there can be
more multiplexes in Kurukshetra.20 % of the people expect at least one
more multiplex by the end of the next year, according to our survey.
If we talk about the food court, it is a major factor that contributes to the
customer satisfaction. Here, we find that customers are satisfied with the
freshness; some are disagreed with the flavor and variety. But the %age

37

of agreement is higher that of disagreement. Majorly, the customers are

disagreed with the price in the food courts and the discounts (not much
offered) in the food courts.42% of customers are disagreed on the basis
of discounts and 34% are disagreed on the basis of Price. Rather 8% are
strongly disagreed on the basis of discounts.

Parking facility is one of the major drivers of the organized retail sector.
People want to get rid of crowded environment. From the above analysis
we find that the space provided by Glitz gets 34% agreement of the
people and 22 disagreed. But the important aspect like Security secures
a 68% of the total agreement of the people. The FEE PAID gets 60%
agreement of the Kurukshetra people. But 36% are disagreed with the
traffic management in parking at multiplex. This is due to lesser
experience according to the local people. As this is the first multiplex
ever, so they are unable to anticipate and control the sudden crowd in
the parking, but they are improving.
Then comes the infrastructural facilities. These facilities contribute to
the customers satisfaction a lot. The customers are in agreement for the
washroom facilities and the cleanliness of the washrooms.

82% people are strongly agreed due to the cleanliness of the washrooms
and 30 % are strongly agreed from the escalators, rest 64% are agreed
because of the service of escalators provided by the multiplex. But as
there is no lift or the facility of ramp in the multiplex so the people are
totally disagreed and they suggest that there should be lifts and Ramps
(for the disabled) as well.

38

It is clear that mostly the customers are agreed with the employees
behavior at the multiplex. Like 80% are strongly agreed with the food
court employee, 88% agreed with the ticketing clerk. But perceptions of
different people are always different. Some people might have some
bitter experiences so that they are not in agreement with this. Like 6%
are disagreed with the parking staff, but the highest figure is with the
security men i.e. 12%. This may be because of his bit strictness towards
people. The people are not allowed to carry their personal bags, nail
cutters, camera, laptop, knife, chewing gums etc inside the hall because
of security reasons; which sometimes lead to an issue between the
security men and the customer. So because of this reason people find
security men behavior not to be accepted.

Why are Multiplexes preferred over the single

screens?

39

On the basis of our analysis, 94% of the people think that Multiplexes
are better options than Single Screen (Cineplex) whereas; only 6%
negate the fact. The reason behind this can simply be answered by
pointing out the difference between single screen and multiplexes.
Multiplexes
The multiplexes enjoys rebates and
exemptions from the government.
(Entertainment Tax)
They just dont offer movie but
also offer so called add-on
facilities
They offer customer with choice in
different movies

Single Screens
Single Screen doesnt enjoy such
exemptions on part of government
Cineplex on the other hand offer
only movies and no extra facilities.

Single screens dont offer such

facilities with no options to the
customers
Talking of the ambience, multiplex Single screens on the other hand
offer better sitting , Dolby digital dont offer such facilities to
sounds and good graphics for viewers.
viewers
Multiplexes, by offering food Single Screen on the other hand
courts, ATM Facility, shopping doesnt offer add value to money to
facilities can offer Add value to the customers income.
money to customers.
The mushrooming of multiplexes has thrown up huge competition
amongst multiplexes and is giving the stand-alone theatres a run for their
money. However, multiplex owners are still upbeat about their business.
But the road ahead for theatre owners is both exciting and challenging.
The service industry is ever changing and you have to change
proactively.

Demand Side - Strong pull:

40

Demand side environment has never been better for the whole media &
entertainment industry in general and multiplex sector in particular. A lot
of demographic changes coupled with sector fundamentals are expected
to fuel demand side of the story for the sector.

Prosperity to drive discretionary spend

India is a highly favorable country for consumer industries with all the
key indicators pointing towards higher consumer spends in the coming
years. It has seen its per capita income doubling in the last 6 years, it has
more than 60% of its people under the age of 60, urbanization and
exposure to western lifestyle is rising, all leading towards increasing
consumerism in the coming decade. In the buoyant times; people tend to
spend more on the leisure based consumption. For the multiplex sector,
the target group is in the age group of 15-60 years of age, which visits
the theaters more often than others.

People willing to pay for quality

With the entry of multiplexes, which provide better quality movie
watching experience at a higher price compared to single screen theaters,
more and more middle income group people are coming back to the
theatres thus unlocking a latent demand. This is a classic case of leisure
consumption winning over value proposition in India. As content supply
booms, more and more people will turn to multiplexes because of the
rising willingness of people to pay for such services.

Production of Hindi movies

41

The Indian film industry is the largest in the world in terms of the ticket
sales and the number of films produced annually (877 feature films and
1177 short films were released in the year 2003 alone). Over 800 films
are censored / released by IFI each year in over 15 languages. The
opening of the film industry to foreign investment coupled with the
granting of industry status to this segment has had a favorable impact,
leading to many global production units entering the country. For
example, Walt Disney has partnered with Yash Raj Films to make
animated movies; the Warner Group is funding the Sippys' film projects.

RISKS AND CONCERNS:

42

SLOWDOWN IN CONTENT SUPPLY

As multiplexes are the consumers of content, they have no control over
the supply quality and quantity. Multiplexes thrive on rising footfalls
which in turn depend on the better supply of films from producers.
Hence, any disruption on the supply side will definitely have a negative
impact on the multiplex players' growth.
ALTERNATIVE ENTERTAINMENT AVENUES
Movies compete for customer attention with other forms of
entertainment viz. DVDs, TV, cricket, festivals etc. An increased
acceptability of these avenues will divert footfalls away from
multiplexes.
MALL DEVELOPMENT DELAYS
Supply of quality real estate has been a problem in the past for multiplex
players. Mall delays due to various reasons will hurt expansion plans of
the companies. We are building in a 50% delay in mall handovers to the
multiplexes in our analysis. Any delay more than this will hurt future
growth of multiplexes.

UNCERTAINTY OVER ENTERTAINMENT TAX

Entertainment tax in India is among the highest in the world leading to a

43

Much higher occupancy levels required for breakeven of multiplexes.

Even though state governments have announced tax free windows for
these players, uncertainty looms over the viability of multiplexes after
the window expires. We believe that the levels entertainment tax will
come down in the future, otherwise any increase will be passed on to the
consumer to a large extent like it is done at present.
WORSENING ECONOMIC ENVIRONMENT
The whole footfall growth story depends on rising prosperity in the
country leading to higher discretionary consumer spends. If the
economic environment starts worsening for a prolonged period, it will
affect patronage levels negatively pulling down top line growths. We are
assuming very low CAGRs at the top line levels for all of the players
and are quite optimistic that multiplexes will grow as expected.

The Future of Single Screens

44

With the boom in the multiplexes and the trend of multiplexes which can
be seen in India, a question has been raised that, are single screens going
to die soon?
The perfect answer to this will be a big NO. Our analysis shows that
more than 70% of people prefer going to multiplexes as compared to
Single Screen, but The bigger the mob the greater the thrill is an old
saying. In a country like India where people still say that a movie should
have to a PAISA VASOOL, it shows that the expenditure on movie or
price of movie tickets has always been a question. Multiplexes offering
tickets at around 150 bucks cannot call for large chunk of audience on
account of high prices. On the other hand, if a common middle class
family-- comprising a man, his wife and two thinks of venturing out into
a multiplex on a Saturday evening, the idea doesnt seem too pleasing, if
you count the costs!
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. No
doubt the road ahead for single screens is very challenging and exciting.
Single theatres would do well in smaller towns where multiplexes dont
go. They can price themselves on par or maybe slightly above the
numerous video parlors that are thriving in the rural areas. They
themselves have to look and explore their potential to serve better in the
rural or their expected market.

CONCLUSION:

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By doing this survey on CUSTOMER PERCEPTION

REGARDING MULTIPLEX IN KURUKSHETRA I have
come to a conclusion that whether it is multiplexes or the
Cineplexes both need to work on their service. It is true that
being a new entrant in the Kurukshetra market the multiplex has
gained customer loyalty very fast, which is a threat to the
prevailing Cineplexes.
To keep up to the newly formed competition they have to
change to the needs of the customers especially the young
crowd, which constitutes the major portion of the movie viewing
population.

RECOMMENDATIONS AND SUGGESTIONS

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For the Cineplexes their future is in danger if they dont change with the
time, multiplexes have the benefit of environment and luxury, they tend
to attract the younger population more, but they have the disadvantage
of high cost. This is their weakness on which the Cineplexes can
capitalize. By some renovations they can provide, if not a multiple
number of screens in their premises but, a wonderful movie viewing
experience to their customers. By doing some changes in the
infrastructure a larger crowd can be attracted towards the Cineplexes as
the customer would be getting a similar experience in an lesser cost.
If any concrete action is not taken then also the Cineplexes wont
die soon but they would remain an option only for the lower income
group of the market. In this case they would have to lower their price
even more to attract more volumes of the lower income group people
and hence gain the reputation of an inferior commodity in the industry.
So the need of the hour for the Cineplexes is to move along with the
tide.
The areas where there is an urgent need of improvement for the
Cineplexes are:
Picture and sound quality
Food quality
Seats quality
Ambience
The areas where the multiplexes need to work are:
Price
Food prices
Behavior of their staff.

REFERENCES AND SOURCES

47

IMaCS Analysis, FICCI-PWC Frames 2006 Report

FICCI-KMPG report

INTERNET
www.glitzcinemas.com
www.stargazeentertainment.com
www.wikipedia.org
www.iefilmi.com/content/single-screen-theatres-will-never-die
www.scribd.com/doc/17277428/multiplex-vs-cineplex
www.bharatbook.com/market-research-reports/multiplex-india.html

BOOK REFERRED
Kothari C R (2005), Research Methodology Methods & Techniques, 2nd
edition, New Age International Publishers, pp. 344-359