Marketing Management

Indian Multiplex Industry

Submitted By – Group 5
Introduction –
The entertainment sector in India is poised for a compounded annual growth rate of 20% according
to a recent KPMG report. The key factors that are driving the growth of the media and entertainment
industry in India are the favourable demographics, growing literacy, increasing affluence,
development of technology, government support and the growing interest in the Indian way of life.
The never before seen growth in the sector has been the result of the growing number of television
channels, FM radio channels, rising popularity of social media, growing demand for content from
mobile operators which is expected to further increase with the growth of 3G services and
innovations of technology. This has resulted in the availability of entertainment anywhere and at
anytime at the touch of a button and has ensured wide spread reach of the industry. During the year
2010, the media and entertainment industry grew by 11 percent and recorded revenues of Rs.65,200
crore. The growth in advertising revenues by 17 per cent to Rs.26,600 crore, increase in subscription
revenues, increasing variety of rich content coupled with the opportunity for its monetization and the
government’s thrust to digitization are expected to aid in the robust growth of the sector. This paper
is an indepth analysis of the various components of the Indian entertainment sector, the current
scenario and challenges in the print and electronic space, the growth opportunities and the future
potential.
Bollywood is considered ‘Hollywood of the East’ and the demand for Indian movies overseas and
various other reasons also ensured that Indian government recognized Bollywood as an industry in
May 1998. Tejaswini averred that industry status was given to save and rescue the film industry from
the clutches of the underworld that was plaguing the film industry19. This status led to the
corporatization of the industry due to the influx of heavy investments, tie-ups, mergers &
acquisitions etc. from Foreign Institutional Investors (FII) and other multi-national corporates
(MNC). Not only this, the industry got financial support for production houses in the form of loans
from nationalized banks too, thus making it a legitimate economic business activity. This helped curb
the influx of black money and organized crime to a certain extent, though not eradicating it
completely, traces of which are still found in the industry.

The rapid urbanization of the Indian population in the cities and migration of people from
surrounding rural areas to cities saw a rise in demand due to the boom in retail sector which has seen
considerable growth opportunities in real estate as well as malls and multiplexes. Former and late
Prime Minister P.V. Narasimha Rao was instrumental in introducing economic liberalization and
reform policies in the 90’s. This was also the era of Liberalization, Privatization, & Globalization
(LPG) as India opened up for foreign investments to usher in the new millennium. Accordingly many
native rich and non-resident Indians (NRI) started investing in India and film industry was one of the
industries which got a fillip.
India multiplex market stood at 2950 screens in 2018 and is projected to grow at a CAGR of over
7% to surpass 4500 screens by 2024. Growth in India multiplex market can be attributed to
increasing youth population, growing urbanization and hence, rising demand for better
infrastructure and enhanced facilities in the cinemas across the country which is leading to
development of multiplex market in India.

Additionally, increasing disposable income of middle-class urban population, especially in tier-I

and tier-II cities has led to a shift in consumption pattern from savings to spending owing to
which people are willing to pay extra for privacy and comfort. This factor is further pushing the
market for multiplex in India.

Major Players In Multiplex Industry –

A multiplex is a movie theater complex with multiple screens, typically three or more. They are
usually housed in a specially designed building. The largest of these complexes can sit thousands of
people and are sometimes referred to as a megaplex. 12 to 20 screens may constitute a multiplex,
whereas theaters above 20 screens may be branded a megaplex. In India, the mushrooming of
multiplexes since the mid-90s has changed the dynamics of the Indian Film Industry. India’s first
multiplex was PVR ANUPAM with 4 screens in it and was opened in 1997 at Delhi. There have
been concerns over high ticket prices, and the phenomena has predominantly been restricted to the
larger cities. The largest multiplex in India is the 14-screen multiplex by Mayajaal in Chennai. Here
is a list of the most popular multiplex chains of India.
1. PVR Cinemas
2. Big Cinemas
3. INOX
4. Prasad’s IMAX
5. Cinepolis
6. DT Cinemas
7. Esquare Talkies
8. SRS Cinemas
9. CineMax
10. CityGold Movies
11. Adlabs Cinemas
12. Wave Cinemas
SWOT Analysis
Strength
 Multiplex sectors are one of the booming sectors in India
 Second Largest in the world and largest in terms of film produced and ticket sold
 The growing middle class with higher disposable income
 Change in the lifestyle and spending patterns of Indian Masses
 Technological Innovations
Weakness
 Business fortune depends upon the success of the films they are showing
 Rapid development of the digital technology like broadband and network space
 Piracy
 Existing competition
Opportunity
 Increasing number of global investors in this sector
 Technological innovations like Animations
 Rise in the viewership
Threat
 Privacy
 Alternate source of entertainment such as Online Streaming services, DTH, DVD can lead to
lower sales
 Increasing competition from other sectors e.g. IPL affects the occupancy rates in Theater

Porter Five Model Analysis

Bargaining
Power Of
supplier

Threats of Threats Of
New Competitive Rivalry substituent
Entrants in Industry

Bargaining
Power of
Customers

PEST Analysis -
Political Analysis
 Politically less sensitive area
 Barriers In FDI
 No clarity in terms of Government Policy which is ambiguous in many places which creates a big
disconnect between Govt. policies, infrastructure and planning
Economical analysis
 The economic slowdown has a great impact on the pockets of the customers
 Economical slowdown is creating a tough environment
 First mover creates barriers for the new entrants
Socio-culture Analysis
 It is very difficult to understand the preferences of Hindi speaking masses which might be
different from other classes like the English-speaking class
 The fact is that the reach of Hindi speaking segment reach is more than 10 times the English
segment, but there is still a huge gap as English segment gets 70% revenue as compared to Hindi
segment
Technological Analysis
 The effect of IT industry is endless creating ever changing possibilities
 Rapid innovations in technological sectors

Priya Village Roadshow – PVR Cinemas

Priya exhibitor’s pt. Ltd. Is a part of the diversified bijli group. Which has interests in transport,
finance and construction the industry in late 80’s when the t on slaughter of video wars at itspeak
cinema has now trends in cinema exhibition reaching India’s TV. To cater to the increasingly
sophisticated tastes of the audience priya exhibitor pt. Ltd. totally refurbished the existing cinema in
June 1991 including installation of a Dolby stereo sound system. They also gained distributors
mainly warner Brothers. 20th century fax, united international pictures. Priya exhibiters ltd have
taken the next step to launch their first multiplex in Road show ltd. Australia’s leading Entertainment
Corporation.
PVR is a brand name synonymous with state of the art cinema exhibition in India PVR
specializes. PVR cinemas are the leading cinemas in the country with an embassies design,
technology and service. The company has begun a joint venture agreement between priya
exhibitor’s private limited and village road show limited in 1995 with 60:40 ratios began its
commercial operations in June 1997 with the launch PVR Anupam in Saket, India’s first
multiplex. By introducing the multiplex concept in India, PVR cinemas brought in a whole new
pradism shift to the cinema viewing experience high class seating state of the art screens and audio _
visual systems.

Story has it that devil struck twice the bijii family, the owners of the PVR ‘s. in 1992, ajay bijis
father died at the age of 60. Then in 1994, a fire broke out in the family’s trucking company’s go
down spread over 100,000 square feet. Although he lost heavily, he had a road that he called tread
that of the running the family’s movie hall business. A distributor of Hollywood film’s movie put
him in town with Roads now, which wanted to expand in India.

Although it was
initially undertaken to renovate the vasant vihar hall and to convert priya into a multiplex, but
ajay bijli began to look for another location and zeroed in an Anupam, in south Delhi’s saket
area, which was dilapidated, bijli took it an lease and converted in into a fair plex sowing the
seeds of the multiplex phenomenon in the country.

Today PVR has a total 150 screens in 35 multiplexes across India; PVR commands a significant
presence in New Delhi and NCR with 37 screens in 13 multiplexes. PVR also gained popularity in
Chennai, Lucknow, Indore, Hyderabad and Bangalore. It is expanding other parts of the country
especially in Mumbai with opening of PVR June, where there are many other established multiplex.
PVR also situated in Pune near koregaonpark. It has recently launched its premium brand, PVR
premiers, targeted at urban consumers in metros, with the opening of PVR select city walk the
company operates two other brands PVR talkies the no-frills cinemas for consumer in tier II cities
and the original PVR cinemas targeted at the urban & semi urban consumers. PVR additionally plans
to invest ₹ 300-400 crore to open 250 screens by2017.

PVR Firsts -
 First to launch a multiplex in India PVR Anupam saket, Delhi.
 First to launch India’s biggest 11 screens multiplex- PVR Bangalore.
 First 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 receive intuitional funding in the cinema industry from ICICI venture.
 First to offer computerized & online ticketing service.
 First to introduce mobile based information & ticketing service.
 First to launch loyalty program moviegoers in India.
 First to launch movies first monthly magazine that updates the movie lovers on the latest
Hollywood.

As a part of their worldwide strategy, they decided to concentrate on the production business and on
exhibition business in those areas where they have majority control and have the critical mass of
screens. In line with the strategy they exited from almost 20 countries worldwide, including India.
PVR was exposed to best business and operational practices in the cinemas exhibition industry and
was able to revolutionize the way to go to cinemas.

Marketing strategies of PVR Cinema -

 Segmentation:
On the basis of customer preferences PVR under the clustered category PVR concentrate on
target audience they only cater to the premium movie going audience. It has approximately 22
million movie gets per month.

 Targeting
PVR has premium pricing and they target mainly on customer preference. Its uses concentrated
method as they have targeted a much focused audience out of the entire masses.

 Positioning
PVR makes use of all their tangible elements to prove their customers that their movie tickets are
worth the price they are paying. PVR ensures the customers as a superior brand in terms of cinema
viewing as well as the experience.
  Entertainment marketing
Entertainment services include screening of movies, their premiers, press & media, required
special screening of movie show & also different types of eatable served within the multiplex.

 Movie marketing
It can create a brand image for the company. It focuses on movie marketing that are big screened
along with crating & making aware the people about the multiplex. Various media channels are
invited to cover the whole premier events which has positive effect on the multiplex, stars, media
channels are invited of huge celebration

 Café marketing
It’s a new concept launched by the multiplex to marketing the movies. Its promoting movie with the
help of eatable sold in the cafeteria within the premises of the multiplex. Here the eatables are named
after the movie.

 Special events marketing

Multiplex also screens special events such as cricket matches, documentaries & also to organize
celebration of religious festivals as well as the special days like valentine day, independence &
republic day. Also it arranges birthday parties as per viewer’s demands.

 Tie up with various corporate

Multiplex has tie u with corporate associates. It’s like the corporate organized or they host the
events that are conducted in the multiplex & in turn the multiplex gives it sales indirectly.

 Movie shooting & advertisement

Multiplex also allows shooting for movies & advertisements as it helps to publicize & create a brand
name for itself. Movie shootings advertisements take place here because of the ambient factors &
also space the as the movie makers are not given the premises free of cost.

 Special screening of Hollywood movies

Multiplex arranges the screening of Hollywood at their theatres. These special screenings are
referred as midnight matiness. It is an innovative attempt on the part of multiplex to combine
various elements of leisure & partying with cinema viewing.
Marketing Mix- 7p’s

 Product
The customer comes to a cinema hall for, along with the attendant experience of PVR. The
expected product in PVR’s case world be ambience, hygiene, parking, candy bar etc. PVR has
augmented its product offerings luxury cinema with exclusive auditoriums, fally reclining seats &
many more, but booking, e-booking & tele- booking facilities providing by PVR to their patrons.
PVR also provides parties at PVR, movie newsletter and magazine, movie vouchers to the viewers.

 Price
PVR comes across as a superior brand in terms of cinema viewing as well as the experience.
PVR market leader to set its own prices price that are originally started from 120 to 500RS. The high
pricing has not led to any change in the footballs that PVR gets viewers are enjoying superior
ambience, environment, seating, viewing etc. With these ticket charges.

 Place
PVR cinema halls usually situated at good location in the cities of India and abroad. Their places are
always well situated and are well lined PVR also having their own distribution channels for movie.

 Promotion
PVR gives advertisement on Friday about latest movie schedules in ‘Times of India’. As well on
won website. It has also a host of online promotional contests associated with movie. They are also
in collaboration with cellular services like Airtel have sms and win contest and give out free tickets
to the winners. They also arrange commercial shooting, premiere shows with leading film star and
fun events for children while screening animations.

 People
PVR has given free tickets for their employees to view film in the cinema hall, gives 10 national
holidays to employees very great importance is given to person hygiene and appearance clean
uniform and shoes, job performance evaluation at the completion of first 90days of employment.
Employees are taught deal with safety problems regarding accidents, fire, bomb threat, armed
robbery etc. All trainees are made to train at all departments like ticket sales, computers service
skills, cash handling sales, credit & sales etc. so employees persuading brand of PVR with their
friendly, informed, helpful, reliable, cheerful entyastic, nature, therefore, the audience can easily
relate and communicate with them.

 Physical Evidence
Customers are not only see a service but also see various tangible service like facilities,
communication, objectives, other customers, price etc. on the basis of these PVR provides the
lavish building, layout, colors of interiors, tickets, labels, logo of the cinema hall to formulate good
unified corporate image/identity.

Conclusion

Purpose of any research to accomplish the objectives farmed by the researcher PVR cinema hall
has taken all the efforts to influence the viewers to their cinema halls. They make pure planning
to achieve marketing strategies of the multiplex. They keep adding something new to their
services to make their customers always fully satisfied and maintain their market leader in the
industry. Thought whatever PVR cinema is doing for their brand is adding to their popularity
PVR also to take all the strategies regarding 7p’s of marketing mix like product, price, and place.
Promotion, people, physical evidence, process etc. but there is still some scope of improvement
as the multiplex industry now a days is full in it. It was concluded that, multiplex has become the
biggest source of entertainment for the present generation. They want all less than one roof that
makes the desirable growth multiplexes in India.
Today PVR cinema hall has become a well-known brand in the field of multiplex theatre first
time in India PVR cinema provides all.