LIVE PROJECT

MARKETING OF LEISURE SERVICES

(PVR CINEMAS)

Submitted in partial fulfillment of MASTERS OF BUSINESS ADMINISTRATION

ACADEMIC SESSION: 2010-12

Submitted by:

Nitish Bhardwaj

G.S.M.S.

TABLE OF CONTENT

S.No. Topics Page No.

1. Title 1

2 Acknowledgement 3

3. Summary 4

4. Purpose of study 5

5. Scope of study 5

6. Research Methodology 6

7. Limitations of study 7

8. About the company 7

9. Review of literature 9

10. Data analysis and interpretation 15

11. Findings of study 16

12. Recommendations 20

13. Conclusion 21

14. Questionnaire 21

15. Bibliography 27

ACKNOWLEDGMENT

I would like to thank the entire team of PVR Saket, for the constant support and help in the

successful completion of my project.

Also, I am thankful to my institute, for the continued guidance and invaluable encouragement. I

express my sincere gratitude for the able guidance, continuous support and cooperation

throughout my project, without which the present work would not have been possible.

Nitish Bhardwaj

MBA (3rd Semester)

Global School Of management Science

Summary

PVR Ltd. was the first to introduce the concept of multiplexes in India. With 51 screens as of

February 2006, it was also the largest multiplex operator in India. The study delineates the origin

of PVR and its growth into a leader in the Indian film exhibition industry. It throws light on the

innovative marketing and promotional strategies and its new business initiatives. The study also

discusses the threats that the company faces in the form of increasing competition. It ends with a

discussion on the future prospects of PVR anupam in the entertainment business. With the

launch of the fourscreen multiplex, Anupam Saket in Delhi in 1997, PVR Cinemas arrogated for

itself the credit for shaping a cinematic revolution in the country. The multiplex cinema was a

paradigm shift in the viewing experience. It provided world-class seating, state-of-theart screens

and audio quality that had never before been heard in cinema halls in India. PVR contributes

between 10% and 13% of the net box office collections of any leading Bollywood movie across

Indian theatres. It isn’t, however, just the box office record that PVR has to its credit; it is also

recognized with introducing computerized ticketing, automated kiosks for ticket dispensing and

for launching a truly king-size film viewing experience called Gold Class Cinema. PVR

differentiates itself on the basis of:

1. Location –PVR selects only premium locations

2. Excellence in design – All of PVR’s theatres are state of the art in terms of projection angles,

sight lines, stadium seating, projection and sound systems and international quality large screens.

This ensures that the customer has a superior cinema viewing experience

3. Value added services – Being located in malls, PVR provides the entire bundle of activities

such as restaurants and shopping for the complete family outdoor experience.

Purpose of Study

The need of study on this topic is to get a detailed knowledge about the marketing strategies of

PVR Cinema and their degree of Effectiveness. This study helps to know the reasons behind the

success story of PVR Cinema – a journey from single screen theatre Priya to chain of PVR

multiplexes. The study is required to know how the marketing strategies influencing the decision

of people to visit the PVR cinema. This study is essential for knowing the market share of PVR

cinema. This research helps to attain a deep knowledge about the fact why people are ready to

pay high price and what makes PVR cinema different from others. The knowledge which is

gathered through this research explains that PVR Cinema in terms of its services has an upper

edge over other popular brands in multiplex industry. PVR since from its beginning is considered

as one of its kind and has attained a premium positioning in market. The study is required to

observe what drives PVR to move forward even in such a tough competition and keep sustaining

and maintaining the place of a Market Leader in Multiplex Industry. The main aim of study is to

know that what are the various variables that attract people towards PVR Cinema. The aim of the

study is to make an analysis of different marketing strategies and their impact on the masses.

Scope of study

The scope of the research is very wide as it is the known fact that today multiplex industry is at

the boom and among those PVR Cinema is considered as the Market Leader of that industry. So

it is important to know the reasons behind their popularity and what are the various marketing

strategies which they follow. The aim of the study is to make an analysis of different marketing

strategies and their impact on the masses.

Research Methodology

Research is the systemized efforts to gain new knowledge. A Research Methodology defines the

purpose of the research, how it proceeds, how to measure progress and what constitute success

with respect to the objectives determined for carrying out the research study. The appropriate

research design formulated is detailed below. A scientifically carried out research project has a

definite framework for data collection. This framework constitutes the research design.. It

determines the data collection method, sampling method, the fieldwork and so on.

Sample Size:

For this study the sample size was 100 respondents from Saket who watch movies at multiplexes.

Survey Area:

PVR Saket, J block market area of saket .

Research Instruments:

Questionaires were designed for this study and answers from the respondents were analysed.

Data Analysis Technique:

Statistical technique through which data is analyzed is Logistic Regression. It helps in analysing

whether the study of marketing strategies is effective or ineffective.

LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic was kept

in mind. Nevertheless, despite of fact, constraints were at play during the formulation of this

project. The main limitations are as follows:

1. This study is purely based on the responses received from the respondents.

2. Since I was not the authorized researchers so this study is made keeping in view utmost

cost effectiveness.

3. This study is done in a limited time span.

4. Mixed responses were there among different age group of respondents.

5. Peoples were some time unwilling and hesitated in replying Questions.

6. The consumer behaviour being dynamic in nature, there is every possibility that over the

time findings of today may become invalid tomorrow.

7. It was limited to PVR saket only.

ABOUT THE COMPANY

The origins of PVR can be traced to March 1974 when Priya Exhibitors Private Limited

(PEPL)was established. The private company operated a single-screen cinema hall called Priya

at Vasant Vihar in Delhi. The founder, Bijli Pahalwan, owned other businesses, chief among

them being the Amritsar Transport Corporation Private Limited (ATCPL), a freight carrier

company. Pahalwan's son, Ajjay Bijli (Bijli), joined the family business after graduating in 1988.

From the beginning, Bijli felt that the cinema business was more glamorous than the transport

business, and so paid more attention to PEPL.

In the early 1990s, the cinema exhibition business in India was passing through a bad patch

because of the growing popularity of video cassette players. People were renting video cassettes

of the latest movies and watching them in the comfort of their homes. However, good quality

theaters were still in demand. During this period, some theaters in Delhi like Chanakya and

Regent installed digital sound systems and were successfully screening English movies. To end

the monopoly of Chanakya, Bijli went in for a renovation of Priya at an investment of Rs. 4

million. Around this time, on the suggestion of Mike Macclesfield, president of Universal

Pictures, Bijli discussed the possibility of tying up with Village Roadshow Ltd. (VRL), one of

the world leaders in the multiplex business, to build multiplexes in India.

In April 1995, PEPL entered into a 60:40 joint venture with VRL to form Priya Village

Roadshow Limited (PVRL). The company adopted the PVR 'Movies First' logo. In the same

year, the group bought a single-screen theatre called Anupam at Saket in Delhi and converted it

into a four-screen multiplex at an investment of approximately Rs 70 million. Thus PVR

Anupam, the first multiplex in the country, was born. PVRL broke even within two years. Priya

was brought under the management of PVRL in January 2000. However, it continued to operate

as a single screen theater and was called PVR Priya Cineplex. PVRL's revenues for 1999-2000

reached Rs 240 million. In the year 2000, on the advice of friend and guide, Sunil Mittal, Bijli

attended a three-week 'Owner's Management Program' at Harvard Business School. In 2001,

PVR started two new multiplexes -- PVR Naraina and PVR Vikaspuri -- in West Delhi. In early

2002, VRL decided to divest its investments in 18 countries including India. This was part of its

strategy to confine itself to a few select areas. As per the divestment strategy, the company sold

its entire shareholding in PVRL to PEPL.

On June 28, 2002, the name of the company was changed from PVRL to PVR Ltd. with no

meaning attached to the alphabets. Though VRL sold its stake in PVRL, it continued to provide

technical and marketing services to PVR. In March 2003, the India Advantage Fund-I managed

by ICICI Venture invested Rs.380 million and acquired a stake in PVR.

In May 2003, PVR opened a seven-screen multiplex in Gurgaon, the biggest one in North India.

In May 2004, it started a two-screen multiplex at Faridabad, and in November the same year, it

opened one more multiplex there with three screens. PVR opened PVR EDM in Delhi in March

2005 and PVR Spice in Noida in November 2005.

PVR is a brand name synonymous with state-of-the-art cinema exhibition in India. PVR

specializes in developing and operating state-of-the-art Multiplexes. PVR Cinemas are the

leading cinemas in the country with an emphasis on design, technology and service. Over the last

three years, PVR has established itself as a very strong brand associated with movies, quality

exhibition and youth-targeted promotions.

REVIEW OF LITERATURE

Nandini Raghavendra (2010) “Multiplex Industry: Ready for consolidation”

In the five years since the Anil Ambani-led entertainment group (then Adlabs, now Reliance

Mediaworks, RMW) bought a controlling stake in Manmohan Shetty's Adlabs in a whopping Rs

350-crore deal, along with their 16 multiplex screens, the industry has not seen big buzz deals.

Till, Shravan Shroff decided to sell his screen dream — Fame (96 screens) to Inox. There is still

a huge untapped potential. The big five players i.e Inox, Adlabs, PVR, Waves, Big Cinema, in a

unified voice feel there is a lot of space to grow. The problem, if at all, is not of too many players

right now but factors like piracy, shorter windows with satellite and home video eating into

theatrical and, of course, a low success ratio of films. These plus the economic slowdown, saw

expansion plans go slow. So, due to a host of reasons, the present may look a bit bleak (add IPL

to that list) but the long-term scenario looks intact. According to the Ficci-KPMG 2010 report on

the media and entertainment industry, by 2013, the number of plex screens in India is likely to

cross 1,600. "Multiplexes have become an important and integral part of the domestic theatrical

industry. They have made a significant impact in bringing viewers back to the cinemas. This is

reflected in that as much as 60% of Indian theatrical revenues for Hollywood and Hindi films,

come from the multiplexes while for South Indian films, it is 25%. Given the experience of

consumers and part digitalisation, the importance of plexes in the distribution space is here to

stay," says executive director and head, media & entertainment, KPMG, Rajesh Jain.

S. Romi (2008) “PVR Cinema- Success Story”

From rickety trucks to swanky malls. It’s been a long journey for Ajjay Bijli. Born in a family

that was into trucking business, he was asked to look after his business after he completed his

studies. With Priya, Mr Bijli had tasted blood and now he wanted more. “Since we screened

English movies regularly at Priya, I was in constant touch with Hollywood companies like

Columbia, UV and Warner Brothers during that period. The market for English movies in India

was growing in a major way and these companies were looking for an outlet in India. I also came

in touch with Australian company Village Roadshow that was looking for a partner in India.

Soon we were partners,” says Ajjay. So was born the joint venture Priya Village Roadshow Ltd

or PVR. Together they started setting up multiplexes for India. As luck would have it, Anupam

was on the blocks. Mr Bijli grabbed the opportunity and turned it into a multiplex in 1997. “We

were amazed with the kind of response we got.” Meanwhile, the priorities changed for his

overseas partner, Village Road Show, post 9/11. The lull in 2001 forced it to focus on the

American market and movie production leaving the field here open for the Indian partner. So,

PVR or Priya Village Roadshow Ltd became PVR Ltd. “Now, we only have a tie-up with them

for technical backup.” Today Mr Bijli has ICICI Ventures as his partner which owns 32 per cent

stake in the company. Mr Bijli considers this as no mean achievement. Entertainment is a

challenging business as every city has a different profile and we have to understand the people’s

behaviour there and cater to them.

Gummerson (1996) “Relationship Marketing”

He tried to explore the extent of application of relationship marketing in service sector.

According to his findings, the service users hold good image of the company if it provides

effective CRM services. He found that poor relationship marketing caused discontinuation of

services by many customers. The same concept applies to Indian customers too. Service industry

players need to put thrust on this area to maintain profits on a sustainable basis.

V.Kumar (2009) “Using a Customer-Level Marketing to enhance Firm’s Performance”

Customers are now demanding personalization and customization of products and services

ranging from video-on-demand and personal video recorders (e.g., TiVo) to niche brands and

product extensions that help customers feel unique and stand out from the crowd (Bianco 2004).

This shift in the way firms do business is not only evident it is also clear that the academic

research is changing its course as well to match with the climate in the industry. Any firm that

looks to sell products or services to the market needs to treat its customers as assets. For

example, AT&T was adopting a macro-level strategy to deal with customers (Squeo andWilke

2004). As a result, AT&Tlagged behind its competitors and is getting out of the landline business

(not acquiring new customers) and merging their wireless business with another service provider.

However, DISH Network, which used to offer standard packages of television channels, realized

the shift in customer needs and adopted a micro-level (customer) strategy to offer customized

channels (Grant 2004). As a result, the growth experienced by DISH Network is phenomenal.

Thus, resources need to be properly allocated to various marketing strategies, which only can be

accomplished if a firm can identify its best customers and prospects and send those individuals

the right marketing message at the right time.

Jain and Dhar (2003) “Effectiveness of CRM”

They studied the determinants of customer relationship management effectiveness in India. They

used in-depth interviews focused on behavioural dimensions of relationships. It was found that

customer relationship management emerged as a core business process for maintaining and

enhancing the competitive edge in modern business affairs. In the area of services, the issue of

customer relationship management holds much importance. Many a times, it is the CRM that

becomes the deciding factor while selection of services. Customer loyalty is directly related to

the CRM efforts made by the service sector companies.

Sarangi (2007) “Entertainment Industry”

It highlights the aspect of quality of entertainment service industry in India. The objective was to

define the parameters of service quality satisfaction with reference to entertainment services in a

metro city. In a survey of 300 people visiting the multi-screen cinema halls and luxury hotels,

various dimensions of services were found. Customers in metros and other cities have started

watching movies in multiplexes which provide excellent ambience and quality. When asked

about the factors causing the visit, the customers gave first preference to comfort and ambience

provided in the place. For this aspect, the customers were ready to compromise on cost and

distance factor. Besides ambience, promptness in services was another factor leading to

satisfaction of customers.

R.J.Cumberworth (2001) “Theming and Design as a Marketing Medium”

The concept of Theming and design has been related to leisure stimulation, play theories and

service marketing and the practice analyzed thoroughly, using relevant and up to date examples.

Therefore, in summary it is possible to state that the themed entertainment industry, and the

theme park industry in general terms is developing through organic growth. Much of this is down

to technological innovation and advancements and indeed the talent to put such ideas into

practice. Ideas are also developing in accordance to marketing practice, with new ways of

ensuring customer satisfaction and enhancing the core service product that a theme park offers.

Technology and innovation is allowing the ability to construct higher, faster, longer rides and

attractions but when coincided with Theming, complete new environments can be produced and

with the use of virtual reality, complete false environments are being created. There is a coming

move away from the traditional iron ride, although they are by no means in decline, technology

and VR is being further developed to create more ambitious 'dark rides' where story telling

combined with special effects creates visitor immersion, which is also apparent in restaurants,

shops and other service orientated aspects. Thus, in reflection, the future of the industry remains

to be seen; yet serious adaptations need to be considered as visitors demand meaningful and

often educational entertainment, with particular consideration to the increasing gray market.

Charles R.Akland (2003) “Screen Traffic: Movies, Multiplexes and Global Culture”

Scholars of film exhibition are concerned with the fraught intersection of political economy and

cultural studies. In this timely new study, communications scholar Charles Acland raises the bar

for post-nationalist discussions of cinema culture by insisting that film going must be approached

as a complex of industrial and cultural phenomena. Using a cultural materialist approach inspired

by Raymond Williams, Acland argues that "film" must be considered as a highly mutable site of

international economics and individual emotional responses, encompassing technologies of

reproduction alongside patterns of reception. Although film has arguably been a global enterprise

since Hollywood began to aggressively develop the international market in the 1920s, Acland

makes a compelling argument that film culture became global in a new way in the 1980s when

cinema was reconfigured as a vertically integrated industry in the wake of deregulation policies.

Thus, his study concentrates on cinema exhibition practice as a phenomenon of global culture

from the mid-1980s to the mid-1990s.The primary phenomenon under consideration here is the

shift in exhibition practices that emerged between 1986 and 1998, a period when grimy,

utilitarian suburban multiplexes were replaced across North America by monstrous exurban

space age megaplexes. Acland describes the motion picture theatre as an "essential location at

which discourses of global audiences are being worked out and applied," and as "sites for the

mobility and flow of bodies, texts, and money." He associates these new theatrical settings with

"shrunken amusement parks," a logical next step in the convergence of the corporate

entertainment industry during this period. As Acland points out, in retrospect, this moment might

also be seen as the last gasp of the cinema as such. Since 1998, the emergent technology in

cinema exhibition has been digitalization, which potentially obviates many of the

metropolis/hinterland relations that have traditionally shaped the cinema going landscape.

Internet distribution of pirated mainstream films and independent productions threatens to

displace–or at least radically alter–the importance of the cinema as a site of cultural

dissemination.

I.Nod (2006) “The Entertainment Industry”

The entertainment industry demonstrates a multi-channel structure, with companies owning

several forms of companies in each link of the value chain. The industry is converging toward a

single model, which combines production of content with multichannel distribution. All

companies try to sell content in many ways, e.g. movie, TV show, book theme park, etc. All but

two of major players in the industry conform to this model. Non-conforming companies have

regulatory barriers (foreign owned) or do so out of choice. Some companies (Disney) buy

distribution channels, i.e. networks (ABC); others build their own (News Corp., Time Warner) or

do both Viacom (WB, CBS). The newest trend is to combine production and distribution with

added distribution possibilities of internet (AOL Time Warner, Vivendi Seagram). In this

industry we find vertical integration through direct ownership, as well as commercial

transactions via long-term contracts and one-time “spot market” transactions. Ironically, even the

resources can be “owned” – as in the case of the old “studio system” which tied actors to studies

for a number years. In today’s industry, these arrangements are still in place, with actors signing

on for “x number of picture” contracts with various studios. Production companies can either be

independent or owned by integrated companies. In either case, production from one company

may be sold to a competing network or distributor. Finally, local television affiliates and local

movie theaters are sometimes bound by contract, sometimes entirely independent, or sometimes

owned by networks. This last situation is usually the case with large metropolitan areas, where

the networks want to have a closer link to the customer. Agents and other facilitators play a

commercial conduit role of helping to bring together various people and companies along the

value chain.

Ashwin B. Sonone and Rajendra N. Pathak (2005) “The impact of Multiplex Cinema’s in

India”

The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes,

which are expanding rapidly in major metropolitan cities as well as second and third tier cities.

Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such as

malls, are driving growth of multiplexes in India. The study provides a snapshot of the market

including the two segments multiplexes and single screen cinemas. An overview gives a quick

picture of the market with estimated market size, growth rate and theater distribution in India.

Various business models adopted by Indian multiplex operators are presented alongwith typical

revenue streams and cost base. An analysis of drivers reveals that on the supply side - growth in

film industry, improving real estate supply, and favorable tax exemptions have help in growth of

this sector while on the demand side favourable demographics, rising income levels and

willingness of people to spend on entertainment are increasing footfalls. The key challenges

identified include slowdown in economy, alternate modes of entertainment, development delays,

piracy and uncertainty over entertainment tax exemptions. The industry is characterized by

seasonality, low screen density, increasing average ticket prices, and reducing shelf life of

movies. The key trends identified include producers bypassing distributors, shift to digital

cinema, and alternate content in multiplexes, retail partnerships, and new single screen formats.

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 one of the most

complex and fragmented national film industries in the world comprising of a number of regional

film industries like Hindi, Tamil, Telugu, Kannada and others. The Hindi film industry is the

most popular among them. Though India produces the largest number of films in the world

(Approximately 1000 per year), it accounts for only 1% of the global film industry revenues. In

spite of being over 90 years old, the Indian film industry was accorded the status of industry only

in 2000. Over the years, the Indian film industry has been highly unorganized as film financing

was dependent on private and individual financing at extremely high interest rates. Only

recently, the industry has got access to organized finance. With vertical integration taking place

between producers, distributors, exhibitors, broadcasters and music company’s corporatization is

now taking shape in the Indian film industry. We believe, that corporatization, will bring about

transparency, accountability and consolidation which will help to improve the overall

profitability of the Indian film industry as well as reduce piracy and leakages which presently

account for 14% of the Indian film industry's revenues.

DATA ANALYSIS & INTERPRETATION

Formulation of the problem:

Problem formulation includes several tasks. The objective of using Logistic Regression is to

study about effectiveness of marketing strategies of PVR Cinema. The variables to be included

in the Logistic Regression based on past research, theory and judgments. The variables are

appropriately measured on 7-point likert scale. During the study, I have studied about 100

persons who visit multiplexes to watch movies, nearly 50 respondents were satisfied with their

marketing strategies and 50 were dissatisfied. The respondents were asked to indicate their

degree of agreement with the following statements using a 7-point scale (1=strongly disagree,

7=strongly agree)

satisfied respond-ents dissatisfied respondents

Method of logistic regression: Logistic regression is part of a category of statistical models called

generalized linear models.

Logistic regression allows one to predict a discrete outcome, such as group membership, from a

set of variables that may be continuous, discrete, dichotomous, or a mix of any of these.

Generally, the dependent or response variable is dichotomous, such as presence/absence or

success/failure.

Discriminant analysis is also used to predict group membership with only two groups. However,

discriminant analysis can only be used with continuous independent variables. Thus, in instances

where the independent variables are a categorical, or a mix of continuous and categorical,

logistic regression is preferred.

In our case, the study has been directed to judge the effectiveness of marketing strategies of PVR

Cinema. Data for this has been collected from 100 respondents (50 out of 100 are satisfied with

the marketing strategies and 50 are not satisfied)

FINDINGS OF THE STUDY

On the basis of the survey it was found that maximum numbers of respondents are aware

about PVR cinema.

It was found that respondents have mixed responses when they are asked about how they

know about PVR Cinema. Some said through Commercials, some said through websites,

billboards, Print Ads, Word of Mouth. But if observed most of the people have same

consent over Online Advertisement.

It has been observed that almost all respondents have visited PVR Cinema atleast once in

a month, except a few which clearly indicates the popularity of PVR Cinema.

It was found that most of the respondents are aware about all the marketing strategies of

PVR Cinema.

It was observed that the maximum number of respondents lie in the age group of 15-35

years and out of them most of the visitors are students.

Almost all respondents have annual income more than 3 lacs per annum that shows the

premium positioning of PVR Cinema.

It was found that almost all respondents are fully satisfied with the infrastructure and the

ambience of the PVR Cinema.

It was observed that respondents considered visiting PVR Cinema as a source of full

entertainment.

Online ticket booking, tele-booking and online payment system are some of the features

of PVR Cinema which was rated highest by maximum number of respondents.

Most of the respondents considered that watching movie at PVR Cinema is a status

symbol due to its premium positioning in the market.

Respondents gave positive response when it comes to the quality of services provided at

PVR Cinema.

Self selection of seats is considered the most favorable feature of PVR Cinema.

The layout and the interiors of PVR Cinema is considered as one of the most attractive

feature of PVR Cinema by the respondents.

When it comes to the price of PVR Cinema the respondents has mixed reactions as some

considered it as high and some said that they are worth the experience.

Almost every respondent showed their consent that the food quality and hygiene

maintained at PVR Cinema is totally superior.

The feature that attracts respondents in the best way is the 3-way surrounds sound system

and the seating and the projection arrangement of PVR Cinema.

New Initiatives of PVR

PVR didn't limit itself to the cinema exhibition business. The company entered areas which

offered it synergies in the business of entertainment. PVR ventured into film distribution,

franchising, and managing multiplexes. It also had plans to enter film production. These ventures

were expected to strengthen PVR in its existing exhibition business

Competition:

Having initially concentrated on the NCR and being the first player in the multiplex business in

that region helped PVR to register a healthy growth over the years. The entry of new players in

2001, however, posed a challenge to PVR even in places where it was the leader. The New

Delhi-based Satyam Cineplexes was running 12 screens at three sites in Delhi in 2005 with a

total of more than 5000 seats and was to invest over Rs. 25 billion in cineplexes across the

country. It was aspiring to become a national player by 2008 by adding 100 screens all over the

country.

Outlook

The Compound Annual Growth Rate (CAGR) in revenues of PVR between 2001 and 2005 was

35%. The unconsolidated total income was Rs. 706.66 million and Rs. 805.9 million in fiscal

2005 and for the nine-month period ended December 31 2005, respectively. Around 4.8 million

movie goers visited PVR multiplexes in 2004-05, and an occupancy rate of 41.1% was

registered. Though these figures were impressive, the impending competition had the potential to

spoil the party for PVR. The urban population in India in the age group 15-34, the most frequent

movie-goers in the country, was expected to grow from 107 million in 2001 to 138 million in

2011. Moreover, the retail boom in the country coupled with increasing disposable income

among the ever-expanding Indian middle class was expected to fuel the growth of multiplexes all

across the country. In 2005, the number of footfalls at multiplexes increased by 40-50% over the

previous year indicating the growth in the business.

Multiplex fit-outs really define the PVR brand’s personality and create a future proof design

edge that cinema goers enjoy as “the PVR experience”. PVR has always been at the cutting edge

of theatre design and initial expenditures in this domain have paid handsome dividends in times,

where rapid competition growth is steadily equalizing the cine-going experience. The PVR

design team consistently incorporates international level design into every PVR campus, which

assists in operational financial efficiencies on a per square foot basis, every single month. At fi

tout stage itself, PVR’s per seat costs are extremely low compared to the value they generate. All

PVR design integrates technology superbly with long term benefits. All aspects of consumer

psychology and the latest trends in addressing these are built into the design of every multiplex.

Maximum marketing income opportunities are intelligently built in without compromising either

aesthetic or operational efficiencies. PVR’s future-proof design incorporates profi ts at the

drawing board stage itself by providing spaces for the organization to interact with the audiences

of the future – 8-10-15 years down the line. Given that every cinema is locked into long term

leases, design follows suit by making itself relevant to audience aesthetics through the duration

of that tenure. The previous year resulted in much greater effi ciencies for the design team. All

outsourced feasibility work is now serviced in-house resulting in large cash savings.

The team supported the huge growth curve of the development of new properties and re-assessed

every element of design process and cinema design inventory, so that turnaround times are

lightning quick and comprehensive. All teams have emerged well-bonded to face the upturn that

is round the corner.

THE PVR FIVE STAR MODEL

• Build quality into the PVR brand in every dimension, for the long term.

• Leverage the brand for business and growth.

• Make each transaction more profi table.

• Get closer to people and processes in every way.

• Build relationships. Build people. Build the organization.

RECOMMENDATIONS

When PVR came into being it was at the forefront of the technology involved in the

Movie business but now much more has been done in this field and PVR needs to keep

up. Like the IMAX theatre that Adlabs has introduced, PVR should also foray into new

technological advances in the entertainment business.

Also the prices charged at the food and beverage counter are way above the MRP, which

we feel is an undue premium that is being charged.

There should be some concession for the student class.

While intermission, the ready to eat products like patties, popcorns, soft drinks should

only be made available to the customers by the employees, the counter get over-crowded

because of the limited space. Another option is to increase the manpower at the time of

rush.

Many of the audiences feel that some of the services inside do not command the prices

that is charged for them, example, even the first two rows in the theatre command a price

of Rs. 150/-. Most people feel that a lesser price should be charged as sitting too close to

the screen is not as good an experience as sitting in one of the back rows.

A food court that has a variety of offerings, not just snacks but wholesome meals as well

would greatly improve the movie going experience as people would spend greater

amount of time in the theatre and the food court could work as an ancillary to the theatre.

Once a movie is past its prime and running in the second or third week where sales are

low, PVR could do promotional campaigns and reduce the prices marginally for one

show a day. This would encourage more people to experience the PVR experience,

especially those that are inhibited by high prices.

Special promotional campaigns for students for instance could help in attracting the vast

price sensitive student audience. Such promotions could happen once or twice a month

without diluting the superior brand image.

Cricket is an obsession in India. PVR could capitalize the same by screening ‘hot’

matches live. For e.g. IPL matches. The growing popularity of soccer and other sports

can also be tapped. This would be an instant hit even at very high prices charged. To add

on to the excitement they could couple this with cricket contests and give prizes like

paraphernalia with autographs of eminent sportspersons.

CONCLUSION

Purpose of any survey or research is to fulfill the objectives. In this study of “Marketing of

Leisure services (PVR Cinemas)” the various objectives have been fulfilled by using the method

of Questionnaire, getting it filled from 100 respondents and finally analyzing the results.

After analyzing the results it has been found that marketing strategies of PVR Cinema to attract

the customers towards the brand plays an effective role in influencing the decision making of the

customer. According to the respondents every single effort made by the PVR Cinema is worth

appreciation. Their effectiveness can be observed with their market growth and their market

share in the multiplex industry. They make every possible effort to maintain their positioning in

the market. PVR Cinema doesn’t believe in the philosophy of Sit and Relax. They keep adding

something new to their services to make their customers always fully satisfied and maintain their

position as Market Leader in the industry. Though whatever PVR Cinema is doing for their

brand is adding to their popularity but there is still some scope of improvement as the multiplex

industry nowadays is full of competition with the big corporates involved in it. Also this analysis

has shown that multiplex has become the biggest source of entertainment for the present

generation. They want everything under one roof and that makes the remarkable growth of

multiplexes in India.

Questionnaire

Dear Respondent,

I, Nitish Bhardwaj, a student of MBA in Global School of Management Science, New Delhi, am

conducting a survey on “Marketing of Leisure Services (PVR Cinemas)”. I would be extremely

thankful if you spare some time to answer the following questions. I hereby declare that all the

information collected through this questionnaire will be kept confidential and will be used for

academic purpose only.

Please tick (√) at the appropriate box.

Q1: Do you visit Multiplexes?

(a) Yes

(b) No

Q2: Which of the following categories of multiplex are you aware of?

(a) PVR Cinema

(b) INOX

(c) WAVES

(d) BIG Cinema

(e) Adlabs

Q3: Have you ever visited PVR Cinema?

(a) Yes

(b) No

Q4: How did you come to know about PVR Cinema?

(a) Online Advertisement

(b) Word of Mouth

(c) Billboards

(d) Commercial

(e) Print Ads (magazine, newspaper)

(f) Website

Q5: In the last 30 days, how many times have you visited PVR Cinema?

(a) Never

(b) Once

(c) Twice

(d) Thrice

(e) More than 3 times

Q6: Which of the following marketing strategies are used by PVR Cinema?

(a) Promotional offers

(b) Online booking

(c) Parties at PVR

(d) Movies Newsletter and Magazine

(e) Movie Vouchers

(f) Booking through SMS

(g) Online contests

(h) Promotion through catalogs

(i) Free trials

(j) Providing Gifts to visitors

RESPONDENT’s PROFILE

NAME - _____________________

AGE - Below 18 18 to 30 Above 30

SEX - Male Female

OCCUPATION - Service Agriculture Student

Business Others

INCOME - Below 1 Lakh 1 Lakh to 3 Lacs Over 3 Lacs

CONTACT No. - _____________________

Here are some more questions which were asked from people who use to come to PVR Saket to

watch movies and based on their random answers, a general idea is framed about their behavior.

1. Why do you come to PVR Saket to watch movies?

It is in our budget

After watching movie at PVR, there are ample options to chill and hang out at this

place because of the shopping complexes and eating hubs around it.

The shows before 1 p.m. are made very cheap, just 50 Rs on weekdays.

2. Does the exclusivity of this cinema hall attract you to this place?

No, the exclusivity doesn’t plays the role of attracting us, it’s just the environment

around this place that counts and its not very harsh on our pockets.

PVR saket is not so good as far as the ambience and the comfort level is

concerned, other PVRs are better at providing these comfort levels and ambience

and hence their rates are kind of high than this PVR.

It is not the exclusivity, in fact the Audis are not that good and the seating space is

very less but it’s just that its economical for people like us who are students and

fond of watching almost every movie that shows up.

3. What do you like the most at this place?

The tickets for the shows before 1 p.m. are made really cheap.

It is not in any mall but still there are a lot of enjoying options in its surrounding.

Some questions were asked to the staff members of PVR saket to get a point of view of their

marketing strategies. A few of those are:

1. We have asked a lot of people as to why they like to come to PVR saket and watch

movies and a lot of them have answers pointing out the fact that morning shows have

been made really cheap on weekdays. Any serious planning or motive behind this move?

Yes, certainly it was thought and discussed between the members as it was a big and a risky

move. It was mainly done to attract the crowd and to increase our sales as this PVR Saket is not

earning as much as other PVRs are earning in this city.

2. Any special reason for why this PVR is not working as efficiently as others?

There are a lot of reasons like….many new cinema halls with a very good ambience have come

up and they attract masses as compared to this one with its ambience not so good like theirs.

It is an old cinema hall and the audies are relatively small and we have heard from people that

customers find that the leg space between the chairs is comparatively less. If you will go to the

other halls you may find the chairs with newest designs and a lot of leg space.

The people around PVR saket are generally the people of areas like Madangir which do not have

so much spending power and they don’t like to spend so much on a movie. So they don’t come

very often for movie.

Other cinema halls like DT at select city walk also give a tough competition as they attract the

masses with relatively good spending power because of its ambience and other facilities and also

because it is situated inside a mall, so a lot of people who have come for shopping end up

watching movies. Here, at this place there is not that big shopping complex and also it is not

inside any mall.

3. Any steps you have taken for improvement in the sales?

We have decreased the price of the morning shows before 1 p.m. to 50 RS on weekdays which

has worked surprisingly good for us.

We have introduced many new options and combinations for eatables and drinks which are a

little easy on the pockets of customers.

We have started showing some additional shows and increased the frequency of showing movies

a little more but that to by keeping our costs in mind.

Bibliography

1. Annual Report

2. Websites

www.pvrcinemas.com

3. Business magazines and journals

Movies First PVR Magazine

Ward, Tony and Dagger, T. S., (2007), "The Complexity of Relationship

Marketing for Service Customers", Journal of Services Marketing, Vol. 21 (4).