PREFACE

One of the fastest growing sectors of the economy is entertainment industry. Entertainment today dictates our lives, education, careers, earning money, all lead to the quest for higher and sophisticated entertainment. One seeks knowledge to improve the quality of life. The quality of life improves when the basic requirement of life are supplemented with entertainment in some form or other. Current scenario the entertainment industry is totally different from the past, as the modes of media used for providing services were different before the 20th century when compared with the present media. 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. Most of the multiplexes in India are anchor tenants in the large format malls making a favorite destination for the youngsters as well as the families. Multiplexes captured the market as complete family entertainment centers. The digital revolution has helped the Media and Entertainment industry to go digital. There are more than 100 digital cinemas in India today. They, along with the multiplexes have completely transformed the experience of the viewers. With an increase in the incomes of the people and increasing expenditure on the leisure activities, multiplexes are poised for high growth in India. Other than the sale of the movies tickets, Food & beverages is the major source of revenue for the multiplexes. Space economies and the optimal utilization of the capacities are the major advantages or benefits that the multiplexes enjoy over single screen theatres. PVR, a pioneer and a trailblazer in Multiplex development in India, is the largest cinema exhibition player in the country today. The company began its commercial operations in June 1997 with the launch of PVR Anupam in Saket, India's first multiplex. By introducing the multiplex concept in the country PVR Cinemas brought in a whole new paradigm shift to cinema viewing experience, high class seating, state of the art screens and audio visual systems. This catapulted the company to command a significant presence in New Delhi, National Capital Regions like Gurgaon & Noida, Bangalore, Hyderabad, Mumbai, Lucknow and Indore, making it the largest cinema exhibition chain in the country. PVR, in order to solidifying its exhibition growth and strength also ventured into the business of film distribution, set up PVR Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures, a strategic business unit, specialises in acquisition and local distribution of films
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TABLE OF CONTENTS
SERIAL No. 1. 1.1 1.2 1.3 2. 3. 3.1 3.2 4. 4.1 4.2 4.3 5. 6. 6.1 6.2 6.3 7. 7.1 7.2 PARTICULARS PAGE No.

CHAPTER 1- INTRODUCTION Entertainment Industry About the Company Marketing Strategy CHAPTER 2 REVIEW OF LITERATURE CHAPTER 3 NEED AND SCOPE OF THE STUDY Need of the study Scope of the study CHAPTER 4 RESEARCH METHODLOGY Objectives of the Study Research Methodology Limitations of the Study CHAPTER 5 DATA ANALYSIS AND INTERPRETATION CHAPTER 6 CONCLUSION Findings of the Study Recommendations Conclusion ANNEXURE Bibliography Questionnaire

1 2 7 11 17 24 25 26 27 28 29 31 32 44 45 47 49 50 51 53

CHAPTER 1 INTRODUCTION

ENTERTAINMENT INDUSTRY
Entertainment consists of any activity which provides a diversion or permits people to amuse themselves in their leisure time. Entertainment is generally passive, such as watching opera or a movie. Active forms of amusement, such as sports, are more often considered to be recreation. Activities such as personal reading or practicing a musical instrument are considered to be hobbies. Entertainment may also provide fun, enjoyment and laughter. The industry that provides entertainment is called the entertainment industry. There are many forms of entertainment for example: cinema, theatre, sports, games and social dance. Puppets, clowns, pantomimes and cartoons tend to appeal to children, though adults may also find them enjoyable. The concept of leisure, and the freedom to choose individual pastimes and leisure pursuits, is a 20th century development for the mass population. Historically, only the wealthy could divide up their time to engage in activities of their choosing. The working classes had neither the time nor the money to enjoy leisure activities on a broad scale. The development of leisure is seen predominantly in westernized cultures, where it has become increasingly sophisticated. Over the years, as working hours have shrunk, people found that they had more free time on their hands to spend on leisurely activities. Sitting home with a book could only go so far, and thus an entire industry sprung up to make money on those who wanted something to do. This is the leisure industry, which actually spans numerous types of industries. Leisure industry fields include: restaurants, amusement parks, theaters, hotels, gaming places, venues for musical groups or lectures, and sporting arenas. Also one might include spas, gyms, and areas where one can conduct sports, like golfing or boating as part of the leisure industry. Anything that is made to be enjoyed, and is made to occupy ones leisure hours is essentially part of the leisure industry. Leisure being what we do more or less voluntarily and pleasurably within our way of life; leisure services being all those occupations and organizations that deal with leisure behaviour from tourism to therapeutic recreation to parks. The reinvention of leisure is going on right now but, just as fish presumably do not see water; it may be hard for those of us interested in leisure services to see such change. Perhaps these changes can't be seen (or understood) directly, but instead require that professionals and students learn more about what is changing in our environment, our economy, our society, our use of technology, and our values. Given the accelerating change in our world, it seems leisure will be changed for those in both the modern and developing worlds. It would follow that the organizations that serve people providing a broad array of recreation, park, sport, cultural, theatres, therapeutic, tourism,
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hospitality, hotel, restaurant, and other "leisure services" will be, themselves, in a process of change, reinvention, reconceptualization and adjustment. The entertainment industry (also informally known as show business or show biz) consists of a large number of sub-industries devoted to entertainment. However, the term is often used in the mass media to describe the mass media companies that control the distribution and manufacture of mass media entertainment. In the popular parlance, the term show biz in particular connotes the commercially popular performing arts, especially musical theatre, vaudeville, comedy, film, and music. Entertainment Industry in India has registered an explosive growth in last two decades making it one of the fastest emerging industries in India. Television itself witnessed its transformation from a single government owned channels to a medium telecasting more than 300 national and regional channels. At present Indian film industry or Bollywood is a perfect combination of entertainment and commercial sector, producing close to thousand movies in a year in various Indian languages. Indian film industry supersedes Hollywood in terms of movie production quantity by more than three times. As per the recent report by Price waterhouse Coopers (PwC), Indians are likely to spend more on entertainment in the coming years with a steady growth in their disposable income. And as per the combined survey report by KMPG and FICCI, the entertainment industry in India is expected to expand by 12.5% every year and is likely to reach US$ 20.09 billion by the year 2013. Key sectors of Indian Entertainment Industry are - Music, radio, digital media are some of the other fastest growing sectors in the Indian entertainment industry. Entertainment industry includes Film Industry, Theatre Industry, Television Industry, Music Industry, Radio Industry, and Animation Industry. The Government has introduced some reform policies to trigger the growth of entertainment industry in India. They are:

Allowing 100% FDI on advertising and film industry through regular channels Authorizing 49% foreign stake in DTH and cable TV Allowing establishment of uplinking destinations to private TV broadcasters for satellite uplinking from India

Certifying the repute of an industry to the movie sector It has given its consent on the guidelines for Headend-in-the-Sky (HITS) operators, an equipment that will offer electronic cable content to Indian viewers

Permitting Foreign Direct Investment (FDI) in FM radio industry with a 20% restriction
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Paving way for FM Radio functioning to the private sector Including development projects of film industry in its five-year plans and allocating US$ 50.13 million to it.

The Indian film industry is the largest film industry in the world in terms of the number of films produced and admissions each year. Revenue for 2010 was estimated at Rs. 89 billion (US$1.3 billion), which was less than 1% of global film industry revenue and a fraction of the U.S. Film industry revenue, which was US$9.49 billion in 2003. Nearly 80% of Indian Industry revenues come from Domestic and Overseas Theatrical. On the contrary US Film Industry earns only 35% from box office sales and remaining 65% is derived from other revenue sources. This clearly signifies the onset and potential of Multiplexes in the Indian Film Exhibition Sector. The story of single-screen theatres has reached its sad end in India. In India, the single-screen theatres with poor facilities and zero-service oriented staff are on last stage of their life. These are getting converted into multiplexes. India's multiplex bandwagon has gone beyond the metros to redefine entertainment in B and C class cities like Indore and Jaipur. These theatres have fully air-conditioned halls with marvellous ambience, plush chairs, excellent audio-visual quality, better infrastructure, professionally-oriented services, proactivity and allied facilities like restaurants, play zone etc. Their aim is to provide world-class entertainment services. Multi-screen theatres have opened new vistas for the entertainment industry. After the entry of corporate titans like Reliance, the scenario of entertainment services has become more professional than ever. These theatres have changed the entire movie-going experience. These theatres are known for marvellous ambience, excellent audio-visual quality, better infrastructure, professionally oriented services, proactivity and allied facilities. After gaining stronghold in metros the multiplex players are now entering into B and C class cities. Cities like Lucknow, Indore, Nasik, Aurangabad, Madurai, Kanpur, Amritsar and Jaipur are the new destinations of multiplex players. Fuelled by rising income of people and advancements in technology, these multiplex are spreading red carpets for a wonderful movie-going experience of viewers. Multiplex is a medium that offers a person composite entertainment comprising of a one stop destination to shop, entertain, and dine and watch a Varity of movies under a common roof. Multiplex are one of the means of lifestyle that offer to viewers the choice of watching a movie in a five star or three star environment. The Multiplex model is based on concept of umbrella

entertainment built around a primary anchor- movie. The revenue streams, however, do not necessarily centre on a single anchor. Typically, the possible income generating channels in a Multiplex can include.

companies to promote consumer goods. Why there is a Multiplex boom? - In India there are about 20,000 theatres and there is a plenty of space and resources for an equivalent number of theatres to be started all over. Thus, there is a high growth rate for the multiplexes in the entertainment industry. Due to the high growth rate of the multiplex industry. Various benefits are provided by the government such as overall tax concessions, reduction in entertainment tax and so on in order to motivate the industry person. Some of the other factors involved are given below Aspirations: There is a huge group of people who are very ambitious and have a status symbol (premium or the top class) or desire to possess it. Thus, these groups of people prefer to have an edge over others (middle and lower class) by viewing movies in a multiplex rather than a single screen theatre as it is a matter of pride and honour for them. Attitudinal Change: Gone are the days when one used to think about saving the money by not going to the theatre along with the family to watch a movie and instead go out for a picnic to enjoy the whole day. Gradually, this concept has changed now because if aperson plans to spend his whole day for enjoyment along with his family, then multiplexes are the best option as they have everything from shopping stores to restaurants, cafeteria, games corner and so on. Combination of various facilities: The concept of satisfying the consumer under one common roof is growing rapidly all over the world. Thus there are two types of combinations found; mall with multiplex and multiplex with shopping facilities and other amenities. More number of screens: This is one of the most important reasons for the multiplex boom. These are more screens, roughly 3-5, when compared to the normal movie theatre.

 Risk minimization: Also, the benefit that the multiplex has over the single screen movie theatre is the risk minimization factor. The multiplex has various partners, various company collaborations, and thus they work together to achieve the goals set up by the organization. Also, the risk is minimized when the space is let out to various corporate organizations such as Reliance, Vodafone, HDFC, Citibank and so on for product launches and various promotional launches. Key players of multiplex industry are Fun Cinemas is a cinema chain in India based in Mumbai owned by the Essel Group and promoted by E-City Ventures. INOX Leisure Limited is the diversification venture of the INOX Group into entertainment and is a subsidiary of Gujarat Flurochemicals Ltd. PVR (Priya Village Roadshow) Cinemas is one of the largest cinema chains in India. The company, which began as a joint venture agreement between Priya Exhibitors Private Limited and Village Roadshow Limited. BIG Cinemas, a division of Reliance MediaWorks Limited, a member of the Reliance Anil Dhirubhai Ambani Group(ADAG), is Indias one of the largest cinema chain with about 516 screens spread across India, US and Malaysia and Netherlands and caters to over 40 million consumers.

ABOUT THE COMPANY

Priya Exhibitors Pvt. Ltd is a part of the diversified Bijli Group, which has interests in transport, finance and construction sectors all over India. After a downturn in the industry in late 80s when the onslaught of video wars at its peak cinema has now been rejuvenated with the latest international trends in cinema exhibition reaching Indias shores swiftly with the arrival of satellite TV. The capitals cosmopolitan audience is becoming increasingly aware of the advanced cinematic technology that enhances the movie going experience and this has whetted their appetite for watching movies on the big screen. To cater to the increasingly sophisticated tastes of the audience Priya exhibitor Pvt. Ltd. totally refurbished the existing cinema in June 1991 including installation of a Dolby stereo sound system. They also gained exclusive rights to screen blockbusters from major distributors mainly Warner brothers, 20th century fox, united international pictures, small wonder then that the cinema has become the focal point for entertainment in the capital for both the young and old attracting over 30,000 patrons a week. In fact, Speed set a national box office world record of Rs.785000 in its first week of screening at PVR (the highest ever for an English film), which is remarkable considering the relatively low price of a cinema ticket in India. Buoyed by the overwhelming success of the cinema after upgrading, Priya exhibitors ltd have taken the next initial step for setting up the first multiplex in the country in a joint venture with Village Roadshow Ltd, Australias leading Entertainment Corporation. 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. The company was conceived as a Joint Venture between the Bijli family, headed by Mr. Ajjay Bijli as Indian Promoters and Village Roadshow Limited of Australia, one of the largest multiplex operators in the world with more than 1500 screens under operation. PVR FIRSTS First to launch a multiplex in India - PVR Anupam Saket, Delhi First to launch India's biggest 11 screen multiplex - PVR, Bangalore First to bring premier movie viewing to India with the exclusive Europa Cinema and Lounge at PVR Gurgaon First to introduce Gold Class Cinemas in India at PVR, Bangalore
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 First to form a foreign joint venture with Village Roadshow, Australia First to receive institutional funding in the cinema industry from ICICI Venture First to offer computerised & online ticketing First to accept credit cards in cinemas First to introduce mobile based information & ticketing service First to launch a loyalty program for movie-goers in India First to launch 'Movies First' - a monthly magazine that updates the movie lovers on the latest happenings in Bollywood and Hollywood. RELATIONSHIP WITH VILLAGE ROADSHOW - In 2002, Village Roadshow was undergoing a strategic and business restructuring worldwide. As part of their worldwide strategy, they decided to concentrate on the Production business and on Exhibition business only in those territories where they have majority control and have the critical mass of screens. In line with this strategy they exited from almost 20 countries worldwide, including India. Village Road shows inability to support the growth plans of PVR, the Indian promoters offered to buy out the Village stake and the joint venture was mutually decided to be terminated in June 2002. However, though Village Road show exited as a joint venture partner, the excellent relationship between both companies continues and is reflected by the fact that PVR continues to have an exclusive long term technical and marketing services arrangement with its erstwhile partners on a long term basis. During the 5 years of joint venture with Village, PVR was exposed to best business and operational practices in the Cinema Exhibition industry and was able to revolutionize the way to go to cinemas. DIVERSIFICATION - PVR has also ventured into the business of film distribution and set up PVR Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures specialises in acquisition and local distribution of films. PVR Cinemas has also come out with a film magazine. PVR Movies First, as the magazine is called is the latest addition to PVR's big bouquet of offerings in the movie entertainment business. It is a monthly magazine and is expected to fulfill the information needs of the die-hard movie fans. MARKET PENETRATION AND DEVELOPMENT - Beyond the existing markets, PVR is contemplating implementing new multiplex projects in Delhi, NCR, Mumbai, Hyderabad, Bangalore and Indore.

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PVR AS A BRAND - PVR has successfully assimilated the Standard operating business and operational practices of Village Roadshow and set new standards in the quality of exhibition in India. The quality of cinema viewing has made the PVR brand synonymous with high quality cinema viewing in the country. This has enabled them to enter into strong corporate alliance partnerships and co-marketing exercises with leading brands like Pepsi, Evian, Samsung, Whirlpool, Hero Honda, Bharti, American Express, Master Card, Pizza Hut, Cadburys etc. This has generated additional steady stream of revenues for the company. SWOT ANALYSIS OF PVR CINEMA Strengths First mover advantage in the multiplex business in India
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 Updated technology Premium positioning Plays Hindi, English, Regional & foreign movies Locational strength Ambience Started the concept of a complete movie going experience Market leader Very strong brand equity TOM recall Original multiplex Blend of retail & entertainment Weaknesses High cost perceptions T.A very specific (not mass service) Disjointed images for all PVR properties Customer retention Parking problems Opportunities First mover advantage Growing family spend on entertainment Large film industry over 200 hindi films every year PVR loyalists Threats Competition blooming large Governments interference Entertainment Tax Other Multiplexes as competition Other ways of entertainment Accused of increased crime rate Piracy No control over surroundings e.g. West Delhi Movies becoming bigger than the brand

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MARKETING STRATEGY
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. Marketing strategy involves careful scanning of the internal and external environments which are summarized in a SWOT analysis. Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success.

MARKETING STRATEGIES OF PVR CINEMA

Segmentation- On the basis of customer preferences, we may classify PVR under the Clustered category. This is owing to the fact, that out of the entire masses they have clearly defined their target audience and aim to cater to them. Also, PVR is a Concentrated Market because they only cater to the premium movie-going audience i.e. SEC A and SEC B. PVR Cinemas has approx. 22 million movie goers per month. Targeting- PVR being the first of its kind has always been a market leader and therefore its offering to the customer is Innovative. PVR has premium pricing and they target mainly SEC A and SEC B. PVR has brought to its customers the experience of Luxury Cinema. PVR uses the concentrated method as they have target a much focused audience out of the entire masses. PVR witnessed tremendous success Europa Lounge in Delhi. PVRs chain use Differentiation method for pricing. It practices different price slabs for different target audience. Positioning - PVR had, and still has a very well planned market position. Its premium positioning affects the customers perceptual positioning. Therefore, they decided on their marketing strategy and pricing, keeping the target market in mind. In case of PVR, they make
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use of all their tangible elements to prove to their customers that their movie tickets are worth the price they are paying. Also, since some of the other movie theatres (which are not multiplexes) are still offering movies at rates as low as Rs 50, it is the task of its marketer to ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the experience.

Entertainment Marketing: Marketing of entertainment services is referred as entertainment marketing. Entertainment services include screening of movies, their premiers, press & media required special screening of movie show & also different types of eatables served within the multiplex is divided into two types namely:

Movie Marketing: this is one of the most important areas which is marketed & helps in creating a brand image for the company. The main focus is to market the movies that are big screened along with creating & making aware the people about the multiplex. Also during such premiers press & various media channels are invited to cover the whole premier event which has a positive effect on the multiplex. As stars are called for the premiers of special movies along with outside people, this act as a synergy effect and thus more & more number of people become aware about the multiplex and its day to day activities. All above this with the help of various media channels, huge & extensive advertising is done for the movies which add to the recall value on the minds of the people.

Caf Marketing: This is an altogether new concept started and undertaken by multiplexes for marketing its movies. It basically helps in promoting its movies with the help of eatables sold in the cafeteria within the premises of the multiplex. Here the eatables are named after the movies & various film stars during the release of much hyped & successful movies.

Special Events Marketing: the positive point that multiples gains over others is that along with the screening of various movies it also screens special event such as F1, cricket matches, various documentaries and social messages that are to be passed n community. Multiplex also organize celebration of religious festivals as well as special days such as valentine day, friendship day, Independence Day & republic day & events such child fest. Also, it arranges for many events & birthday parties as per the customers demands. Such activities give unique experience to its customers who feel the same home & personalized atmosphere present there.

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Tie up With Various Corporate: Multiplex has tie-up with many corporate associates as they help each other in their day to day activities. Both of these go hand in hand. Their relationship is of give & take type; it is like the corporates organize or the y host the events that are conducted in the multiplex & in turn the multiplex gives it sales indirectly. . Movie Shootings & Advertisements: Multiplex also allows shootings 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 surrounding. Also it acts as a business activity as the movie makers are not given the premises free of cost.

Special Screening of Hollywood Movies: A new concept started by many multiplex is the screening of Hollywood movies at their theatres. These special screenings are referred as Midnight Matinees. Midnight Matinees is another innovative attempt on the part of multiplex to combine various elements of leisure & partying with cinema viewing.

MARKETING MIX 7 Ps
1) PRODUCT - A product (in the marketing context) may be tangible, intangible or both. In case of services, on the contrary, the tangible component is nil or minimal. In services, there is no or very little tangible element because of which they are considered as benefits, which are offered to the target market. First, a service is a bundle of features and secondly, there benefits and features have relevance for a specific target market. Therefore while developing a service product; it is important that the package of benefits in the service offer must have a customers perspective. Core Benefit is the MOVIES that the customer comes to a cinema hall for, along with the attendant experience of PVR. The expected product in PVRs case would be ambience, hygiene, good service, parking, candy bar etc. PVR has augmented its product offerings: Luxury cinema - PVR has brought to its customers the experience of luxury cinema. After the tremendous success of Cinema Europa in Delhi, PVR Cinemas has introduced the concept of luxury viewing to Bangalore as well. Gold Class Cinemas have been introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each equipped with 32 plush and fully reclining seats and generous legroom. Patrons can also enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent pre cinema experience with scrumptious food and beverages.

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 Bulk Bookings - There are special arrangements for bulk bookings (of twenty or more tickets) done by corporate. Details can be filled online and PVR executives themselves get in touch with the concerned people. E-booking and tele-booking - PVR also provides the factility of e-booking, which was first started by PVR, it has now been copied by Satyam cineplexes as well. It also offers telebooking. Parties at PVR - PVR has also started helping customers in planning birthday/kitty parties at PVR. They have made PVR a wholesome entertainment experience than just a movie watching spree. Movie newsletter and magazine - To keep its customers hooked on to movies and to PVR, it has also come out with an online newsletter called PVR Wire is directly mailed to the subscribers and can also be downloaded from their website. They have also launched a movie magazine called Movies First. Movie vouchers - They have also taken out the unique concept of movie vouchers which people can use as gifts. Many corporates have also started using these as incentives and rewards for their employees. The vouchers are available in denominations of Rs 100 to Rs 350 and a minimum of 25 coupons needs to be purchased to avail of the offer.

2) PRICE - PVR when started off had a huge advantage of being the only one of its kind in Delhi to begin with. Therefore, they could charge a higher amount to its target audience, as they did not hesitate to pay the sum for the new concept. This high pricing helped them make maximum gains. Also, PVR had, and still has a very well planned market position. Its premium positioning affects the customers perceptual positioning.In case of PVR, they make use of all their tangible elements to prove to their customers that their movie tickets are worth the price they are paying. Also, since some of the other movie theatres (which are not multiplexes) are still offering movies at rates as low as Rs 35, it is the task of its marketer to ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the experience. The movie theatres market is a Free Market, even though the government in the past regulated it. This allows PVR as the market leader to set its own prices. Prices that had originally started
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from Rs 125 (for evening shows) and Rs 90 (for morning shows and weekday plans) have increased to a high of Rs 150 and the lowest is Rs 100. The high pricing however has not led to any change in the footfalls that PVR gets. Even in slighter crowded shows, the occupancy rates as low as 35% reaches PVRs break-even points. The pricing at PVR Europa is Rs 160 and a Gold Class ticket is charged at Rs. 750. It offers superior ambience, environment, seating, viewing etc in the sum.

3) PLACE - The issue of location here plays a very important role, as all PVR Cinema Halls are stationed at good locations in the city, which gathers a large number of footfalls for them every day. PVRs usually open at an eventful yet untapped location, followed by which (as we saw in case of Anupam PVR Saket) other retail chains get opened around it as well. Their places are always well situated and are well linked. PVR does not have any other channel of distribution, as their service is sold solely at their chains. They do not follow any franchisee outlets, even though they indulge in ticket sales online and via tele-booking. The only intermediary involved for procuring movies are Indian as well as international movie distributors, by way of whom they acquire the movies.

4) PROMOTION - PVR as a brand indulges into print advertisements on every Friday giving out the latest movie schedules. Any new developments are communicated to the audience via press releases. Hence there is a strong element of PR involved. Apart from that, they usually have contests pertaining to latest festivals like Valentines Day, New Years Eve, Oscar Movies Week etc. PVR also has a host of online promotional contests associated with movies. They are also in collaboration with cellular services like Airtel have SMSand- win contests and give out free tickets to the winners. Also, PVR attracts a lot of commercial shooting / media coverage via programmes etc which promotes it as a brand in a big way. Organizing Star Events on Premiers of movies like Kuch Kuch Hota Hai helps PVR relate better with its target audience i.e. the youth. The whole PVR banner and its exterior environment including movie hoardings, banners etc help promote the concept of movie viewing as well as PVR as a strong and successful brand. PVR also hosts premiere shows with leading movie stars visiting the various PVR cinemas. They also host numerous fun events for children while screening animations etc. 5) PEOPLE This indicates the Employees and Customers. Service must be fully developed and internally accepted before its launched. PVR indulges in the following: Complimentary ticket on payment of entertainment tax amount at any point of time (2 days in advance) to the
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employees, subject to Availability, Tickets to employees are given for: 1+1 oneself and employees guest and 2 for immediate family i.e. parents, spouse etc. This has been done to encourage movie going among employees as well as customers, Gives 10 national holidays to employees, Report customer grievances to managers, Strict on rules on no smoking, drinking on job etc, They are given personalized badges symbolizes that the employees pride themselves on being a part of the PVR family, Very great importance is given to person hygiene and appearance Clean uniform and shoes, Not allowed to make a gesture to ask for any sort of a tip / gift from customers, Job performance evaluation at the completion of first 90 days of employment. They are evaluated once a year on their anniversary of date of joining by individual superiors and records regarding employees progress are evaluated, all employees are taught to deal with safety problems like accidents, Fire, bomb threat, armed robbery etc. All trainees are made to train at all departments like ticket sales, computer ticketing, telebooking, sales enquiries, customer service skills, cash handling sales, credit card sales etc. Lastly, it is made sure that all employees represent PVR in the best way possible and sell it as a strong and well-established brand. All 55 employees are given full details on what they are representing and informed all about PVR to make them a part of the family. For the customers convenience, it is ensured by the organisation that there are no loopholes. In case of any customer complaints, the employees are immediately directed to report the same to their managers. The nature of all employees is very friendly, informed, helpful, reliable, soothing, cheerful and youth-like. Therefore, the audience can easily relate and communicate with them. 6) PHYSICAL EVIDENCE - Though customers cannot see a service, but they can definitely see various tangible clues of the service offer like facilities, communication, objectives, employees, other customers, price etc. On basis of these, he forms his opinion as they help us to tangibalise the service. . Therefore, it is essential to manage physical evidence. Atmosphere helps to shape opinions. The building, layout, colours of interiors, tickets, labels, logo of the organisation etc help to formulate a good unified corporate image / identity. 7) PROCESS - It was the first cinema company to introduce computerized ticketing through use of international box office software in its cinemas; first cinema to accept credit cards in India against tickets; and the first to offer cinema tickets on Internet with online payment gateway for payment.. PVR was the first to install surround sound and Dolby in Delhi. Gurgaon 7 screen megaplex is equipped with the latest THX approved sound system for the real life sound effects and the state of the art Xenon based projection technology.

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CHAPTER 2 REVIEW OF LITERATURE

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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. Its 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

20

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 peoples 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 Firms 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.

21

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
22

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 mid1990s.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 digitalisation, which potentially obviates many of the metropolis/hinterland relations that have traditionally shaped the cinemagoing landscape. Internet distribution of pirated mainstream films and independent productions threatens to displaceor at least radically alterthe importance of the cinema as a site of cultural dissemination.

23

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 todays 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 Cinemas 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

24

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 companys 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.

25

CHAPTER 3 NEED AND SCOPE OF THE STUDY

26

NEED OF THE 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.

27

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.

28

CHAPTER 4 RESEARCH METHODOLOGY

29

OBJECTIVES OF THE STUDY

1) To study about marketing strategies of PVR Cinema. 2) To check the effectiveness of marketing strategies of PVR Cinema 3) To suggest the improvements in the marketing strategies of PVR Cinema.

30

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. Research Design: The research design for the present study is descriptive as it matches well with the objectives of the study. Data Collection: There are two sources from which data can be collected. For the purpose of study, both primary and secondary data were required. Primary Data: Primary data is that type of data which is collected first time for some specific purpose. There are various means of the primary data collection. Here the mean of the collection of the primary data is questionnaire method which was devised to be brief and simple. Secondary Data: Secondary data is data which is collected already for some other purposes. Secondary data is collected from internet, publications, research papers & journals. Sample Size: For this study the sample size was 100 respondents from Noida who watch movies at multiplexes. Sampling Technique: Initially a rough draft was prepared keeping in mind the objective of the research. A pilot study was done in order to know the accuracy in the questionnaire. The final questionnaire was

31

prepared only after certain important changes. Thus my sampling came out to be nonprobability convenience sampling. 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.

32

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.

33

CHAPTER 5 DATA ANALYSIS AND ITS INTERPRETATION

34

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 respondents

dissatisfied respondents

Method of logistic regression: Logistic regression is part of a category of statistical models called generalized linear models. This broad class of models includes ordinary regression and ANOVA, as well as multivariate statistics such as ANCOVA and log linear regression. An excellent treatment of generalized linear models is presented in Agresti (1996). 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.
35

The dependent variable in logistic regression is usually dichotomous, that is, the dependent variable can take the value 1 with a probability of success q, or the value 0 with probability of failure 1-q. This type of variable is called a Bernoulli (or binary) variable.

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) variables for checking the effectiveness of marketing strategies are taken as Variable 1 = Robust Infrastructure, variable 2 = Soothing Ambience, variable 3 = Safe Security System, variable 4 = Premium Positioning of Cinema in Multiplex Industry, variable 5 = Great Level of Comfort, variable 6 = Easy Availability of Tickets, variable 7 = Brilliant Seating and Projecting Arrangement, variable 8 = Impressive Picture Quality, variable 9 =3-Way surround Sound system Facility, variable 10 = Variety of Customer Relationship Services offered, variable 11 = Fully Air Conditioned Luxury Halls, variable 12 = Plush and Comfort Chairs, variable 13 = Ample Parking Space, variable 14 = Online Ticket Booking, variable 15 = Online Payment System , variable 16 =Status Symbol, variable 17 = Fair ticket price, variable 18 = Credit Cards acceptability, variable 19 = Self selection of Seats, variable 20 = Friendly Behaviour of Staff, variable 21 = Play Hindi, English, Regional and Foreign movies, variable 22 = Variety of Food Joints,
36

variable 23 = Suitable Location of PVR cinema, variable 24 =, Quality of services offered, variable 25 = Number of movie shows running in a day, variable 26 = Multi-screens, variable 27 = Blend of retail and entertainment, variable 28 = Availability of different prices of tickets, variable 29 = Bulk Bookings, variable 30 = Source of full Entertainment, variable 31 =Discount offers, variable 32 = Availability of Rest Rooms, variable 33 = Candy Bars , variable 34 = Tele-booking facility, variable 35 = Celebrity Factor, variable 36 = Impressive Advertisement, variable 37 = Premiers of new releases are organized, variable 38 = Proper Care of Hygiene, variable 39 = Separate section for kids entertainment

In our study, 1 shows the Effectiveness and 0 shows the Ineffectiveness of Marketing strategies.

LOGISTIC REGRESSION VARIABLES VAR00001 VAR00003 VAR00004 VAR00005 VAR00006

/METHOD=ENTER VAR00002 VAR00008 VAR00009

VAR00007

VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 VAR00017 VAR00024 VAR00031 VAR00038 VAR00018 VAR00025 VAR00032 VAR00039 VAR00019 VAR00026 VAR00033 VAR00020 VAR00027 VAR00034 VAR00021 VAR00028 VAR00035

VAR00015 VAR00016 VAR00022 VAR00029 VAR00036 VAR00023 VAR00030 VAR00037 /CASEWISE

/SAVE=PRED PGROUP ITER(1) CI(95)

/CLASSPLOT

/PRINT=GOODFIT CORR ITERATE(20) CUT(0.5).

/CRITERIA=PIN(0.05) POUT(0.10)

37

Case Processing Summary

a

Unweighted Cases

Percent

Selected Cases

Included in Analysis

100

100.0

Missing Cases

.0

Total Unselected Cases Total

100 0 100

100.0 .0 100.0

a. If weight is in effect, see classification table for the total number of cases. Dependent Variable Encoding

Original Value Internal Value

.00 1.00

0 1

Block 0: Beginning Block

Iteration History
a,b,c

Coefficients

Iteration

-2 Log likelihood

Constant

Step 0

138.629

.000

a. Constant is included in the model. b. Initial -2 Log Likelihood: 138.629 c. Estimation terminated at iteration number 1 because parameter estimates changed by less than .001.

38

Classification Table

a,b

Predicted

VAR00040 Percentage Observed .00 1.00 Correct

Step 0

VAR00040

.00

50

.0

1.00

50

100.0

Overall Percentage a. Constant is included in the model. b. The cut value is .500

50.0

The classification table shows that model makes a correct prediction of 50% of classifying the respondents into two groups of the overall 50 respondents with effective response and the model correctly identified that 50 of them are having an ineffective response.

Variables in the Equation

S.E.

Wald

df

Sig.

Exp(B)

Step 0

Constant

.000

.200

.000

1.000

1.000

Model Summary

Cox & Snell R Step -2 Log likelihood

a

Nagelkerke R Square

Square

78.618

.451

.602

a. Estimation terminated at iteration number 7 because parameter estimates changed by less than .001.

39

Hosmer and Lemeshow Test

Step

Chi-square

df

Sig.

5.001

.757

The hosmer and lemeshow test shows lack of significance, indicating that the model predictions are not significantly different from observed values in other words model fits well.

Classification Table

Predicted

VAR00040 Percentage Observed 0 1 Correct

Step 1

VAR00040

40

10

80.0

42

84.0

Overall Percentage a. The cut value is .500

82.0

The classification table above shows that the overall correct classification rate of the model is 82%. The model predicts the effectiveness of marketing strategies of PVR Cinema.

40

Casewise List

Observed
a

Temporary Variable

Case

Selected Status

VAR00040

Predicted

Predicted Group

Resid

ZResid

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

S S S S S S S S S S S S S S S S S S S S S

0 0 0** 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0** 0

.055 .034 .527 .236 .090 .051 .384 .082 .042 .014 .074 .211 .007 .463 .163 .077 .070 .249 .075 .895 .290

0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

-.055 -.034 -.527 -.236 -.090 -.051 -.384 -.082 -.042 -.014 -.074 -.211 -.007 -.463 -.163 -.077 -.070 -.249 -.075 -.895 -.290

-.241 -.187 -1.055 -.557 -.315 -.233 -.789 -.299 -.210 -.119 -.284 -.517 -.082 -.928 -.441 -.288 -.274 -.576 -.286 -2.918 -.640

41

22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

S S S S S S S S S S S S S S S S S S S S S S S S

0 0** 0 0 0 0 0 0 0** 0 0 0 0 0 0 0 0** 0 0 0 0** 0 0** 0**

.034 .632 .000 .058 .300 .396 .007 .204 .540 .441 .059 .489 .050 .048 .064 .000 .562 .238 .101 .138 .645 .101 .927 .752

0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 1 0 1 1

-.034 -.632 .000 -.058 -.300 -.396 -.007 -.204 -.540 -.441 -.059 -.489 -.050 -.048 -.064 .000 -.562 -.238 -.101 -.138 -.645 -.101 -.927 -.752

-.187 -1.311 -.011 -.249 -.655 -.809 -.085 -.506 -1.084 -.888 -.251 -.978 -.228 -.224 -.262 -.016 -1.133 -.559 -.335 -.400 -1.349 -.335 -3.552 -1.741

42

46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69

S S S S S S S S S S S S S S S S S S S S S S S S

0 0 0** 0 0** 1** 1** 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1** 1

.382 .001 .548 .277 .719 .255 .264 .862 .712 .960 .589 .699 .999 .974 .860 .730 .772 .999 .905 .639 .671 .845 .184 .858

0 0 1 0 1 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1

-.382 -.001 -.548 -.277 -.719 .745 .736 .138 .288 .040 .411 .301 .001 .026 .140 .270 .228 .001 .095 .361 .329 .155 .816 .142

-.787 -.033 -1.102 -.620 -1.599 1.709 1.671 .401 .636 .205 .836 .656 .024 .163 .404 .608 .544 .032 .325 .752 .700 .428 2.109 .406

43

70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93

S S S S S S S S S S S S S S S S S S S S S S S S

1 1** 1 1 1 1 1** 1 1 1** 1 1 1 1 1 1 1 1 1 1 1 1 1** 1

.648 .163 .999 .615 .996 1.000 .420 .517 .927 .398 .735 .745 .586 .901 .998 .886 .933 .992 .667 .977 .902 .944 .139 .985

1 0 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 0 1

.352 .837 .001 .385 .004 .000 .580 .483 .073 .602 .265 .255 .414 .099 .002 .114 .067 .008 .333 .023 .098 .056 .861 .015

.738 2.264 .034 .791 .062 .001 1.176 .967 .281 1.230 .600 .585 .840 .332 .049 .359 .268 .088 .706 .154 .329 .242 2.484 .123

44

94 95 96 97 98 99 100

S S S S S S S

1 1 1** 1 1 1 1

.990 .641 .359 .949 .918 .571 .918

1 1 0 1 1 1 1

.010 .359 .641 .051 .082 .429 .082

.100 .749 1.337 .231 .299 .867 .299

a. S = Selected, U = Unselected cases, and ** = Misclassified cases.

Hence after the application of logistic regression test and from the results of the test it is rightly concluded that the predictions are not significantly different from the observed values, in other words model fits well.

45

CHAPTER 6 CONCLUSION

46

FINDINGS OF THE STUDY

On the basis of the survey it was found that maximum number 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 awared 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.

47

 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.

48

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 overcrowded 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.

49

 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.

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CONCLUSION

Purpose of any survey or research is to fulfill the objectives. In this study of Effectiveness of Marketing Strategies of PVR Cinema in influencing the customers decision to visit the multiplex 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 doesnt 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.

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ANNEXURE

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BIBLIOGRAPHY
BOOKS

Marketing management by Philip Kotler Unleashing the Ideavirus by Doc Searls CineBlitz Film Magazine Building Strong Brands by David A. Aaker Movies First PVR Magazine

WEBSITES www.ibef.org/industry/Entertainment.aspx www.economictimes.com www.pvrcinemas.com http://www.pwc.com/en_IN/in/assets/pdfs/ficci-pwc-indian-entertainment-and-mediaindustry.pdf http://www.livemint.com/2007/07/24021641/Multiplexes-feeding-India821.html http://www.icicidirect.com/mailimages/ICICIdirect_Multiplex_EventUpdate.pdf http://www.prlog.org/10237629-bharatbookcom-multiplex-industry-growth-in-indiancinema-exhibition-industry.html

JOURNALS Gummerson, E., (1996), "Making Relationship Marketing Operations", International Journal of Service Industry Management, Vol. 5 (5). Jain, R.; Jain, S. and Dhar, Upinder, (2003), " Measuring Customer Relationship Management", Journal of Services Research, Vol. 2 (2), October-March. Sarangi, S. K., (2007), "Quality in Service Sector: An Indian Perspective", Tecnia Journal of Management Studies, Vol. 2 (2), October Brown and Stanley, (1999), "Customer Relationship Management: Linking People, Process and Technology", New York, Wiley. Ward, Tony and Dagger, T. S., (2007), "The Complexity of Relationship Marketing for Service Customers", Journal of Services Marketing, Vol. 21 (4).

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 Varki, S. and Wong, S. (2003), "Consumer Involvement in Relationship Marketing of Services", Journal of Service Research, Vol. 3 (6), August. Parasuraman, A.; Berry, L. L. and Zeithaml V., (1994), "Alternative Scales of Measuring Service Quality: A Comparative Assessment Based on Diagnostic Criteria", Journal of Marketing, Vol. 70 (3).

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QUESTIONNAIRE

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Questionnaire
Dear Respondent, I, Deepali Thakur, a student of MBA in D.A.V. Institute of Engineering and Technology , Jalandhar, am conducting a survey on Marketing Strategies of PVR Cinema. 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

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(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 Q7: Please indicate your degree of agreement or disagreement for the following variables that affect your decision to visit PVR Cinema. S.No. Variables Strongly Disagree (1) Fairly Disagree (2) Disagree (3) Neutral (4) Agree (5) Fairly Agree (6) Strongly Agree (7)

1.

Robust Infrastructure

2.

Soothing Ambience

3.

Safe Security System

4.

5.

Premium Positioning of Cinema in Multiplex Industry Great Level of Comfort Easy Availability of Tickets Brilliant Seating and Projecting Arrangement

6.

7.

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8.

Impressive Picture Quality 3-Way surround Sound system Facility Variety of Customer Relationship Services offered Fully Air Conditioned Luxury Halls Plush and Comfort Chairs Ample Parking Space Online Ticket Booking Online Payment System Status Symbol

9.

10.

11.

12.

13.

14.

15.

16.

17.

Fair ticket price

18.

Credit Cards acceptability Self selection of Seats Friendly Behaviour of Staff Play Hindi, English, Regional and Foreign movies Variety of Food Joints Suitable Location of PVR cinema Quality of services offered Multi-screens

19.

20.

21.

22.

23.

24.

26.

26.

Multi-screens

27.

Blend of retail and entertainment

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28.

29.

Availability of different prices of tickets Bulk Bookings

30.

Source of full Entertainment Discount offers

31.

32.

Availability of Rest Rooms Candy Bars

33.

34.

Tele-booking facility

35.

Celebrity Factor

36.

Impressive Advertisement Premiers of new releases are organized Proper Care of Hygiene Separate section for kids entertainment

37.

38.

39.

RESPONDENTs PROFILE

NAME AGE SEX -

_____________________ Below 18 Male 18 to 30 Female Agriculture Others 1 Lakh to 3 Lacs Over 3 Lacs Student Above 30

OCCUPATION - Service Business INCOME Below 1 Lakh

CONTACT No. - _____________________

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