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What is meant by multiplex ?

A multiplex is a movie theater complex with multiple screens, typically more than one screen within a
single complex. They are usually housed in a specially designed building. Sometimes, an existing
venue undergoes a renovation where the existing auditoriums are split into smaller ones, or more
auditoriums are added in an extension or expansion of the building. The largest of these complexes can
sit thousands of people and are sometimes referred to as a megaplex
2. State the maor costs that occur in multiplex
business.
!ut increasingly, theatre owners are realising that the culprit may lie closer home" #igh tic$et prices. At
a time when %&%s and home theatres are very affordable, how many families still consider the 's
(,)))*odd they spend for a wee$end outing at any upmar$et multiplex to be of good value? &ery few, it
seems.
+iven the $ind of investments they have pumped in, multiplex chains haven,t been able to set cash
registers ringing.
-.f the phenomenon has to explode and multiplex owners sustain volumes across wee$days and
wee$ends, then low*cost, no*frills options are the only way out,-says a %elhi*based multiplex operator.
.t,s a view echoed by former /01 of .nox 2eisure, Shishir !aial.
-.t,s only when you encompass the masses that the real multiplex revolution will happen. 2arge
consumption centres, where tic$et prices hover around 's 3)*4), hold tremendous potential,-he says.
!ut to cash in on that potential, multiplexes would need to bring down construction costs.
Today, it can ta$e up to 's 3)*4) crores to set up a premium five*screen multiplex in a metro, while the
same in a smaller town costs between 's ()*(4 crore, estimates +W /apital, a private e5uity firm.
!ut owners are now realising that if done right, a stripped down multiplex can be set up much cheaper.
Typically, fit*out costs 6cost of doing up the interiors7 range anywhere between 's 2 crore to 's 2.84
crore per screen.
-/utting down on the fancy stuff could bring down costs by half,-says 'aat 9umar, &*: 6mar$eting7 at
%T /inemas, which is toying with the idea of setting up low*cost variants in smaller cities, li$e ;agpur
or ;ashi$.
That is because a prominent location cannot be compromised. So, what is basic and what are the
trimmings? Says Shravan Shroff, <% of Shringar /inema, -=ou still need to pamper the customer.
A multiplex should be able to tell what adds value and what,s superfluous.-
:&' /inemas is learnt to be exploring setting up air*cooled, budget multiplexes. 'efusing to confirm
this, :&' ac$nowledges the potential this segment holds.
-.t,s a big opportunity, given the huge appetite .ndia,s one billion population has for movies,-says
Tushar %hingra, :&',s &*: 6mar$eting7.
%espite the number of multiplexes, .ndia still remains underscreened. /ompare .ndia,s (2 screens per
million to >S,s ((2 screens per million people or 0urope,s 84 screens per million.
Which is probably why multiplexes, which have ust opened up in smaller towns, continue to do
roaring business.
.ndustry watchers say that li$e any other industry, as multiplexes evolve, coming years shall see
segmentation or the emergence of multiple formats.
-.n time, premium multiplexes, budget ones and even refurbished single*screen theatres will co*exist
and cater to their own niche client*base,-says &i$ram ;irula, who trac$s media and entertainment at
+W /apital.
?or viewers, not only will it mean being able to pic$ the $ind of movie they want to watch, but also the
$ind of theatre they want to watch it in.
@. %iscuss the application of mar$eting mix
concepts in service industry.
The marketing mix is used to reach a target market and is often referred to as the "four Ps" of
marketing: product, price, promotion, and place.
Those selling a product must develop a product that meets the needs of the target mar$et, set a price for
the product, get it to a place where the consumers can buy it 6distribute it7, and inform the target mar$et
about it 6promotion7.
A product is seen as an item that satisfies what a consumer in the target mar$et needs or wants. .t is a
tangible good or an intangible service. The price is the amount a customer pays for the product. The
price is very important as it determines the company,s profit and hence, its survival.
:romotion represents all of the methods of communication that a mar$eter may use to provide
information to different parties about the product. :lace refers to providing the product at a place which
is convenient for consumers to access. :lace is synonymous with distribution.
After identifying a target mar$et, your next step is developing and implementing amar$eting program
designed to reach it. This program involves a combination of tools called the mar$eting mix, often
referred to as the -four :s- of mar$eting" product, price, promotion, and place .
The Marketing Mix
The 3 :s of mar$eting.
Product
A product is seen as an item that satisfies what a consumer in the target mar$et needs or wants. .t is a
tangible good or an intangible service. .ntangible products are service*based li$e products in the
tourism industry, the hotel industry and the financial industry. Tangible products are those that have an
independent, physical existence. Typical examples of mass*produced, tangible obects are the car and
the disposable raAor.
0very product is subect to a life*cycle including a growth phase, followed by a maturity phase, and
finally an eventual period of decline as sales falls. <ar$eters must do careful research on how long the
life*cycle of the product they are mar$eting is li$ely to be and focus their attention on different
challenges that arise as the product moves through each stage.
The mar$eter must also consider the product mix. <ar$eters can expand the current product mix by
increasing a certain product line,s depth or by increasing the number of product lines. <ar$eters should
consider how to position the product, how to exploit the brand, how to exploit the company,s resources,
and how to configure the product mix so that each product complements others. The mar$eter must
also consider product development strategies.
Price
The price is the amount a customer pays for the product. The price is very important as it determines
the company,s profit and hence, survival. Adusting the price has a profound impact on the mar$eting
strategy, as it will often affect the demand and sales as well. The mar$eter should set a price that
complements the other elements of the mar$eting mix. When setting a price, the mar$eter must be
aware of the customer,s perceived value for the product.
There are various strategies that can be applied when pricing a product li$e s$imming and penetration
pricing. S$imming means to price the product highly to increase profits. ?or example if you invent a
new software which no one else has, you can s$im the mar$et because the customers are forced to buy
from you until there is more competition. :enetration pricing can be applied when you want to enter a
mar$et and price your product lower than the perceived mar$et price so that more people will buy it
and this will increase your mar$et share.
Promotion
:romotion represents all of the methods of communication that a mar$eter may use to provide
information to different parties about the product. :romotion comprises elements such as advertising,
public relations, personal selling and sales promotion.
Advertising covers any communication that is paid for. This can be in the form of television
commercials, radio and .nternet advertisements or through print media and billboards. :ublic relations
is where the communication is not directly paid for and includes press releases, sponsorship deals,
exhibitions, conferences, seminars or trade fairs and events. Word*of*mouth is any apparently informal
communication about the product by ordinary individuals, satisfied customers or people specifically
engaged to create word*of*mouth momentum. Sales staff often play an important role in word*of*
mouth and public relations.
Place
:lace refers to providing the product at a place or places which is convenient for consumers to access
it. :lace is synonymous with distribution. &arious strategies such as intensive distribution, selective
distribution, exclusive distribution and franchising can be used by the mar$eter to complement the
other aspects of the mar$eting mix.
State the reasons for developing shopping centres.
%idnt find
B.What are the sources of revenue in multiplex theatres ?
place of rental agreements, mostly in small towns.
The theatre chain owners will share ()*(4C of net tic$et sales with the mall developers, according to
these arrangements.
DWe are loo$ing at managing our :E2 6profit and loss7 in a better manner and the revenue*sharing
deals with mall owners is one measure to reduce cost,F said ;itin Sood, chief financial officer at :&'
2td, which has (8@ screens in 3) cinema halls across 23 cities.
This model will lower a multiplex operatorGs cost by nearly 2)C, he said.
A multiplex typically spends (@*(4C on rent, ()C on employees, (4*2)C on overheads, B*8C on food
and beverage, and another @)C on hiring the movies to be screened and towards sharing the revenue
with producers and distributors, according to industry executives.
D.n lean months, fixed liability in terms of rents hurt our poc$ets. Therefore, in our upcoming property
in +ulbarga 6 9arnata$a7, we have signed a revenue*sharing deal with the developer,F said Hitendra
<ehta, chief financial officer, /inemax .ndia 2td. DWhile we are going slow in our pan*.ndia, tier 2
and @ expansion, our focus is in smaller towns in south 6.ndia7.F
/inemax is negotiating a similar deal for two existing cinemas in <umbai, he added.
Tic$et sales contribute about 8)C to a multiplexGs revenue, food and beverages contribute 2)*22C and
in*cinema advertising nearly 8C, according to industry executives.
Theatre chain owners typically pay a fixed rent of 's 4*2) la$h a month to mall developers, depending
on the siAe of the multiplex and the region.
!ut steep increases in rents in small cities and towns began eating into their revenues, forcing some
multiplex operators to even shut their operations in some of these places.
Anil Ambani*promoted !ig /inemas, a division of 'eliance <ediaWor$s 2td, closed its theatres in
%ewas and Shivpur in <adhya :radesh and >dgir in <aharashtra, among a few others, owing to recent
increases in rents. DThe rents of these cinema halls were unviable. They accounted for almost B)C of
our top line in these mar$ets,F said a person familiar with the development at !ig /inemas.
?un <ultiplex :vt. 2td, which operates theatres under the brand name ?un /inemas and is run by
Subhash /handraGs 0ssel +roup, too shut screens in +oa and +haAiabad in >ttar :radesh, among a few
others.
/onfirming the development, Atul +oel, managing director, 0*/ity &entures 6the corporate brand
representing the exhibition business of 0ssel +roupI?un <ultiplex7, said, DThe challenge in
expansion of screens in tier 2 and @ towns is due to 6the fact that7 the mar$ets are not deep and hence
fixed rentals are unaffordable.F
As a result, the revenue*sharing trend is pic$ing up in mar$ets such as +haAiabad, 2uc$now, ;oida
6>ttar :radesh7 and <ohali in :unab, where there are too many movie screens, he said. ?un <ultiplex
pays a fixed minimum guarantee and a revenue share for its cinemas in Ambala, :anipat and !athinda
in :unab.
.nox 2eisure 2td has signed a revenue*sharing deal for one of its !angalore properties and for its
upcoming theater in !hopal 6<adhya :radesh7, a company executive said.
And :&' has signed revenue*sharing deals with malls for its multiplexes in >ain and ;anded, and for
upcoming ones in !ilaspur, !hilai and :anipat, said /?1 ;itin Sood.
DThe growth of multiplexes has been significantly dependent on mall development. And foraying into
new mar$ets, smaller towns has been an expensive proposition for multiplex owners,F said 'a$esh
Hariwala, partner, media and entertainment, 0rnst and =oung. DTa$ing in view the dynamics of smaller
townships, the footfalls have not translated to impressive revenue from these regions. So, it ma$es
sense for multiplex owners to consider reloo$ing their rentals models for expansion in tier 2 and @F
cities.
.ndia is expected to double multiplex screens to more than 2,2)) by 2)(B, driven by the south and east
.ndian mar$ets, according to a media industry report by the ?ederation of .ndian /hambers of
/ommerce and consulting firm 9:<+.
8. %iscuss the merits and demerits of multiplex business.
Advatages "* (. There are lot more shows for a single movie, so you can catch the movie without
waiting for much time.
2. <ultiplex do have the restraunts where when can go along with the family6much better than the side
shops in single*screen theatres7.
@. <utliplex have other facilites li$e games for children, where they can enoy while the movie is yet to
start.
3. <utliplexes provide different options to you, you can choose the film from a variety of
films6whereas in single screen theatre, you have only one option7.
%isadvantage "* (. The main disadvantage of multiplexes is that they are too expensive. ;ot only the
films but the normal things are also very costly in the multiplexex when compared to the single screen
theatres.
%iscuss the success of :&' cinemas in .ndia.
:%? 1? :&'
(3. 0xplain the maor players in multiplex
business in .ndia.
:A+0 ;1 (4B
%iscuss the scope of multiplexes in .ndia.
THE CURRENT INDUSTRY SCENRI!
.ndia, s craAe for films has not been fully exploited by the -?ilm 0xhibition-industry due
to the lac$ of screen density in the country coupled with thepoor 5uality of screens.
-<ultiplex /inemas- offer an alternative to tap
thisp o t e n t i a l b y p r o v i d i n g a 5 u a l i t y e x p e r i e n c e t o t h e v i e w e r a s
w e l l a s economies to the multiplex operator.-?ilms- has been one of the integral components of the
.ndian entertainmentindustry contributing nearly 28C of the total revenues of the
entertainmenti n d u s t r y . ! e s i d e s , f i l m s a l s o c o n t r i b u t e t o o t h e r c o m p o
n e n t s o f t h e entertainment industry li$e music, television and live
entertainment. The.ndian film industry is one of the most complex and fragmented national
filmindustries in the world comprising of a number of regional film industries li$e#indi, Tamil, Telugu,
9annada and others. The #indi film industry is the mostpopular among them. Though .ndia
produces the largest number of films int he wor l d 6 Appr oxi mat el y ())) per year 7 , i t
account s f or onl y (C of t he global film industry revenues. .n spite of being over J) years old,
the .ndianf i l m i ndus t r y was accor ded t he s t at us of i ndus t r y onl y i n 2))). 1ver
t heyears, the .ndian film industry has been highly unorganiAed as film financingwas dependant on
private and individual financing at extremely high interestrates. 1nly recently, the industry has
got access to organiAed finance. Withvertical integration ta$ing place between producers,
distributors, exhibitors,broadcasters and music companyGs corporatiAation is now ta$ing
shape inthe .ndian film industry. We believe, that corporatiAation, will bring
abouttransparency, accountability and consolidation which will help to improve theoverall
profitability of the .ndian film industry as well as reduce piracy
andl e a $ a g e s wh i c h p r e s e n t l y a c c o u n t f o r ( 3 C o f t h e . n d i a n f i l m i n d u s t r
y , s revenues.
"I#M E$HI%ITI!N %USINESS IN INDI&TREMEND!US SC!PE
?i l m exhi bi t i on f or ms t he mos t i mpor t ant component of t he . ndi an f i l mi n d u s t r
y. Ac c o r d i n g t o t h e * 9: <+ r e p o r t d o me s t i c t h e a t r i c a l r e v e n u e s contribute
s 48C of the total 's4Jbn film industry revenues and are expectedto grow at (8C. 1verall, the .ndian
film industry is expected to grow at (BC/A+' i t i s expect ed t o r each 's (3@bn i n 2)().
The mai n poc$et s f or f i l mexhibition in .ndia are %elhi, <umbai and South .ndia. %ue to
various regional
language film industries in the South, it has become an important filmexhibition poc$et. #yderabad and
!angalore are 2 southern cities whereoccupancies are exceptionally high at around 8)C*K)C.
MU#TIP#E$
. ndi a cur r ent l y has ((4)) exi s t i ng s cr eens , J4C ar e s t andal one, s i ngl escreens.
These single screen cinemas are poorly maintained as the ownersfind it difficult to
upgrade and renovate their facilities, due to unavailabilityof organiAed finance. The
deteriorating 5uality of these cinemas dissuadedviewers and they started using alternative
viewing options.1ver the last few years, multiplexes have emerged as a trend in urban
.ndia.-<ultiplexes- are essentially cinemas with @ or more screens. They provide a5uality viewing
experience and are generally located around shopping mallst o i ncr eas e f oot f al l s i n t hes e
mal l s . 0ach s cr een i n a mul t i pl ex has s mal l s eat i ng capaci t i es i n t he
r ange of (4)* @)) s eat s as compar ed t o s i ngl e screen cinemas which have capacities in the
range of K))*(,2)) seats.Wi t h ar ound ((4)) act i ve s cr eens , . ndi a i s under s cr eened.
/hi na, whi chpr oduces f ar l es s er f i l ms t han . ndi a has B4, ))) s cr eens whi l e t he
>S
has @ B , ) ) ) . . n d i a G s s c r e e n d e n s i t y s t a n d s l o w a t ( 2 s c r e e n s p e r m
i l l i o n populations. There is a need of at least 2),))) screens as against the current((4)). This gives
multiplex operators enough room to grow as the traditionals i ngl e* s cr een t heat r es do not have
t he f i nanci al wher ewi t hal nor do t hey enoy tax incentives
0xplain the structure of multiplex design.
:A+0 ;1 3(
(@. State the roles of <;/s in establishing new
multiplexes.
Emergence: Trade between nations has existed since ancient times but its scope used to be limited. With
the .ndustrial 'evolution and the introduction of fast means of communication and transportation,
transnational trade has expanded at great speed. Subse5uently, the <;/s have emerged.
Collaboration with Media: .n recent times, the emergence of media giants with increasing power and
influence over human minds, and their collaboration with other <;/s, driven by mutual interest of the
two, has profoundly intensified <;/sG influence. The process has evolved and developed with modern
ways and means that have added to its significance as well as its speed, scope and 5uantum.
Lobbying: +iven their huge capital resources and production capacities, <;/s are able to dictate their
own terms in economic dealings. ?or the sale of their enormous production, <;/s re5uire access to
large mar$etsL tariff issues, access restrictions and similar Dbarriers to tradeF are hurdles in this access.
What <;/s need is a global system for the free flow of their goods. They therefore use their sheer
economic weight to influence international trade rules. With their huge resources, they employ
lobbyists with the highest expertise and influence at international trade organiAations. .n all, there are
approximately (4,))) lobbyists based in !russels, or roughly one for each staff member of the
0uropean /ommission, the executive body that negotiates on the 0uropean >nionGs behalf in the WT1.
Some 8) percent of these lobbyists represent business interests. Their expenditures in !russels alone
are estimated to be between M 84) million and M ( billion. <oreover, an estimated (8,))) lobbyists
representing different <;/s are wor$ing in Washington, %/. The pharmaceutical industry alone spent
>SN ( billion on lobbying in the >S in 2))3. The rich ;orth, influenced by such lobbying, ma$es
decisions in favor of the <;/s, irrespective of the economic, social or cultural conse5uences for the
poor of the world.
Entry in Host Countries: #aving poor economic infrastructure and little capital, developing countries very
easily agree to host <;/s. At times, their wea$ regulatory positions are subse5uently exploited by
<;/s.
Pushing Local Producers Out: <;/s either buy out the local companies of the host countries or push
them out of the mar$ets by offering cheaper and better 5uality goods for some time. Where aggressive
mar$eting is needed, <;/s can, in the initial phase, even provide their products free of cost to coax
the public into developing appropriate consumption habits.
Inducing Buyers and Capturing the Market: <;/s capture the mar$et using a variety of strategies and
tools, including social and mar$et research, opinion building, developing interest groups, lobbying,
sponsorship, etc. The media plays an important role in this campaign.
MCs! Impact on Host "ocieties
<;/s carry out research to identify human needs, problems and lifestyles and come up with
multidimensional responses, including the development of products and services. What causes them to
conduct such researches and produce goods accordingly? .s it for the good of public or maximiAing
their own profits? This puts the whole process of globaliAation in 5uestion as its generally proclaimed
goal is the good of common people. !efore examining what happens when <;/s enter host societies
to achieve their commercial obectives, it is pertinent to discuss the problems and strengths of the host
societies.
#eaknesses and "trengths o$ Host "ocieties
When <;/s ta$e their operations to the developing world, the host societies generally suffer from
wea$ infrastructures, poor governance, widespread poverty, illiteracy, health care problems, and
disparities in income distribution.
Their strengths lie in their traditional and strong social structures where the family system provides
strong bonds of relationship, a caring environment, a family*based social security system, simple
living, and inherited traditional or conventional $nowledge and wisdom. The host societies are mainly
agricultural economies where food security has not been a problem in ordinary circumstances.
%he Positi&e Impact
When <;/s enter host societies, there are some benefits, which are outlined below"
'inancial and %echnological (esources and E)pertise: <;/s provide immense resources and investments,
technology, innovation and expertise to the host societies. A culture of research and development is
encouraged and human resources are developed, at least within the organiAation. <;/s also contribute
significantly to the national exche5uer by paying taxes.
*ood Business Practices: +ood governance, organiAational transparency, clear command structures, and
performance*based evaluation and incentives programs for employees encourage the merit system.
<;/s introduce a professional wor$ing environment and culture for local organiAations to emulate,
thereby promoting sound management and business education.
Com$orts o$ Li$e: .n some cases, large*scale economies, 5uality control and a healthy competition lead to
price cuts and other benefits for the end*user. :eople have more access to the comforts of life with a
large variety of choices.
In$rastructure Impro&ement: <any <;/s help in improving the infrastructure and provision of basic
needs in their specific areas of operation.They either do so directly or provide funds for this purpose to
civil society organiAations. This also improves business conditions within and in the vicinity of the
areas where they are operating.
Pluralism: <;/s help boost cross*boundary interaction among people. 0ven education, particularly,
business education, has ta$en on a global perspective. The global perspectives and opportunities for
cross*cultural understanding increase the adaptability of students to alien environments. This leads to
the mixing of cultures and practices and encourages pluralism as well as competition.
%he Challenges posed by MCs
;evertheless, <;/s can also pose problems for host societies in the spheres of social and economic
development and cultural diversity. #ow this happens is outlined below.
Con$licts o$ Interest: <;/s are commercial organiAations and their only interest is to gain maximum
return on their invested capital, occupy mar$et shares and ensure their long*term competitiveness. This
leads to conflict of interests between the <;/s and host societies on issues li$e repatriation of profits,
patents, and maor operational decisions. #ost countries would want <;/s to wor$ in a manner that is
harmonious with the social and political needs of their societies and communities, whereas the <;/s
ma$e their choices based purely on economic criteria. This conflict of interests leads to conflict within
societies.
Increasing Materialism and Consumerism: <;/s promote a culture of conspicuous consumption, in which
presentation and cosmetic changes matter the most. The product models change very fast and the older
ones lose relevance in a short span of time. /onsumerism has an overwhelming impact on societies.
?or example, departmental stores and shopping mallsOplaAas are mushrooming everywhere both as an
outcome of and an impetus to further consumerism. 0ating habits are also changing, with increasing
consumption of processed, instant, fast and un$ food, especially products of international brands. The
emphasis is on instant access and 5uic$ relief. <any products also glamoriAe life in the fast lane,
leading to increased consumption of faster communication products, cars, as well as stimulants such as
cigarettes, and alcohol. As outward loo$s become central in the vision of success, a vibrant fashion
industry is changing the dress and outloo$ of ordinary people. Spending priorities have changed.
/ontrary to the conventional view, ta$ing loans is now considered a status symbol. The availability of
easy credit, consumer financing, credit cards and personal loans by the ban$s to the middle class is
promoting a culture of people living beyond their means.
Simplicity is losing currency and people strive to live in luxury. This trend ma$es the disparity of
resources among people, groups and even regions loo$ wider. :reviously, education was aimed at
developing a balanced personality and ethical and social values and character building were
emphasiAed. ;ow, however, materialism has ta$en over.
Corruption and Crime: .n the race for maximum profit, the <;/s deem their ends to sometimes ustify
the means" they use their considerable buying power to corrupt people to capture mar$ets.
Healthcare +ttitudes: #ealthcare attitudes are changing and people expect better health services. The ob
is made easier by the new norm of Dthird party cashless payments,F where payment is made via credit
cards or health insurance. The focus has now increased on preventive healthcare. Although it is good
for those who can afford these facilities * and they are the targets of <;/s* yet it is extremely
frustrating for those who cannot afford them. #ectic routines, targets and deadlines are resulting in
stresses and pressures. A destructive lifestyle has led to a host of medical crises" sexual problems from
over*performance at wor$, stress, mid*life crisis, ulcers, nervous disorders, hypertension, obesity,
cardiac disease, diabetes, etc., are all lifestyle*related ailments that are on the rise.
Brain ,rain: The term Dbrain drainF is commonly used for the situation when talent goes out to other
countries. The <;/s are involved in another $ind of brain drain. Their lucrative salaries attract talent
that might have contributed to the host society to wor$ for their PmultinationalG interests without
leaving the country.
Cultural Changes: <;/s use, develop and continually refine their mar$eting tactics to create consumersG
need for their products. They use social mar$eting and stars from the worlds of sports and show
business to proect their products, especially affecting the youth, women and children as they are
generally attracted to glamour. Special events, festivals and campaigns are organiAed to create hype. .n
this atmosphere, ethical and moral considerations have no place, and corporate interests start
determining what is to be celebrated and how.
With the spread of <;/sG operations in a society, the importance of foreign languages increases
because these firms mostly operate among the classes e5uipped with foreign language s$ills and hire
and promote the people from the same groups.
Promotion o$ on-Issues: .mportantly, poor people are not the target of <;/s. They target the middle
classes, who have the buying powers, and trying to change their priorities in everyday life, spending
and consumption. <;/s establish close lin$ages with intellectuals, legislators, media and some non*
government organiAations 6;+1s7 to highlight specific issues that suit their business interests.
egati&e marketing: When introducing their products, <;/s exaggerate the 5ualities to the level of
cheating and lying. Aggressive campaigns with false claims are launched. 2ocal products are
ridiculed. /hildren and youth are special targets, while women are treated as commodities to proect
the products, affecting the existing value framewor$ of the societies.
Business Promotion through Charity: Some <;/s are involved in charitable and welfare wor$ in the host
societies as well. #owever, the amount given by them in charity is not comparable to their
profits. <oreover, the charitable wor$ revolves around activities that directly or indirectly result in
various $inds of gains for the corporations. /harity is given where the economies best suit their
corporate interests.
.iolation o$ Human (ights: 0xploitation of wor$ers by large business corporations is a common
phenomenon. <ost wor$ers are exposed to haAardous and inhuman conditions, overexertion and
financial abuse. This happens despite the fact that many of the worldGs largest business associations,
including the .nternational /hamber of /ommerce, have endorsed the >; Secretary +eneralGs D+lobal
/ompact,F a mechanism for self*regulation by business companies.
"tresses on the 'amily: <;/s affect the host societyGs family fabric in many ways. The new cultures
and lifestyles introduced by <;/s are proving harmful to the family fabric in host societies.
1verspending and living beyond means eventually creates economic pressures and develops tensions
and stresses within families. &arious indicators also prove that women wor$ing with <;/s and other
big corporations undergo extra stress when entering into marriages and bearing children. :arents have
little time for their families, particularly children. 1ne out of six women in the world opts out of natural
birth, according to the World #ealth 1rganiAation 6W#17. 0arlier, this trend was specific to the
developed countries but it now prevails in the least developed world too.
(2. What are the various services provided by
the shopping malls ?
Cu'tomer Ser(ice
.nformation on the mall and its services. :ersonaliAed attention for complaints and suggestions.
#ocker'
?or storing obects during opening hours. The proceeds are donated to the organiAation Aldeas
.nfantiles S1S.
nti&Child lo'' S)'tem
.dentification system to prevent children from getting lost from their parents. This free service is
available at the .nformation :oint.
Car Rental
'ent a car with all convenience.
In*ant Care "acilitie'
A separate infant care room is located in the restroom area on the first floor. .t is e5uipped with a
microwave oven, table, seats, and a diaper changing table.
Diaper Changing Ta+le'
%iaper changing tables are located in all of the mallGs restroom areas.
Emplo)ment !pportunitie'
Those interested in see$ing employment in one of the establishments at 2Gilla %iagonal can leave their
curriculum at the .nformation :oint.
,i*t -rap
=ou can wrap your gifts at the .nformation :oint.
Re't rea'
Ta$e a brea$ at 2,illa %iagonal shopping mall.
T&./ Pu+lic Tran'portation Ticket'
T*() public transportation tic$ets are on sale at the .nformation :oint.
-heelchair'
Available for those re5uiring this service at the .nformation :oint.
Children0' Ser(ice'
With everything made to measure of the smallest ones.
"ree -i&"i
?ree .nternet connection in the whole commercial centre.
,et parking time
<any establishments offer incentives to those who par$ at 2Gilla %iagonal. ?urther information is
available at the .nformation point.
Taxi Call
?ree at the .nformation :oint.
,i*t Card
The best gift already exists. ;ew service available at the .nformation :oint.
St)ling Ser(ice
:ersonaliAed styling and shopping advice free service. /hec$ availability at the .nformation :oint.
((. What is the need for design management to
manage multiplexes ?
:age no 4) to 44
12 State the operating model' *ollo3ed +)
multiplex operators.
(). #ow global economic meltdown affect the
multiplex business ?
%idnt find both
The bigger the mob the greater the thrill
Q
<ultiplexes offering tic$ets at around 's (4) cannot call for large chun$ of audience on account of
high prices.
Q
The .ndian film industry is the worldGs largest, churning out more than
(,))) films each year. There are an estimated ((4)) cinemas in .ndia. 1f those, nearly B))
are multiplexes and around ()J)) single screens
Q
Single theatres would do well in smaller towns where multiplexes donGt go.
They themselves have to loo$ and explore their potential to serve better in therural or their expected
mar$et.
re the 'ingle 'creen theatre' in India going to die'oon4
Q
<ultiplexes and distributors O producers starting conflicting onrevenue share. #owever, distributors O
producers would argue thatcontent generation is more critical hence they should get an e5ual share
if not more.
Q
A couple of other issues li$e the multiplexes inability to clear hugeamount of out standings towards the
distributors, not sharing the benefit
of certain incentives given to them by the government with the
distributor, led to the eventual deadloc$.
Q
The stri$e has also affected auxiliary industries li$e hoardings, publicrelations and advertising, as their
wor$ has come to a complete halt.
Q
Apparently, this industry has suffered an estimated 's ()) croreloss.This shows how the multiple
dynamics act as very important factorin determining the industry growth and development.
Strike I''ue o* Multiplexe'
Q
%2?, a leading real estate player in the country, plans to invest >SN 2JK.(2 million forthe expansion of
its multiplex business. The company has planned to add at least 4))screens in the next four to five
years across the country.
Q
0ntertainment conglomerate Adlabs /inemas has drawn up a plan to build (2megaplexes in .ndia
where you can not only see movies but also cric$et and soccermatches on screen.
Q
<ultiplex chain :&' /inemas, which currently has J2 screens, is also planning to addover (4) screens
across .ndia, staggered over a period of three years from 2))K*2)(),with a total investment outlay of
around >SN 8(.44 million.
Q
/inemax .ndia, the multiplex chain which currently has 44 screens over (8 propertiesacross the country
is planning to scale up its presence to 2JJ screens across about ())properties by fiscal 2)()
MU#TIP#E$ %U5566
0conomics of multiplexes in
.ndia " A study of the :&' group
By: Shivani Sharma
Drawing on a case study of the PVR Plaza and PVR Rivoli located
at Connaught Place of New Delhi, Shivani Sharma in this piece helps
understand the revenue generation techniques of the multiplex
cinema halls of ndia! "harma is an alumnus of Centre for Culture,
#edia $ %overnance, &amia #illia slamia, New Delhi 'etween
())*+(),,!
The revenue generation techniques of the cinema halls have been one of
the least explored areas of the communication studies. This essay is an
attempt to look at the revenue generation strategies of the PVR Group,
specifically, two halls, PVR Plaa and PVR Rivoli, located at !onnaught
Place, "ew #elhi$ The financial year %&&'(&), that is in focus here for the
purpose of study, was marked as a particularly slow year for the *ndian film
industry for various reasons$
PVR Plaa and PVR Rivoli, represent the era of multiplexes which started in
*ndia with the advent of Priya Village Roadshow, +popularly known as PVR,,
in the market of cinema exhibition in -)).$ / 0oint venture of Priya
1xhibitors Private 2imited and Village Roadshow 2imited, an /ustralia based
cinema exhibition company, PVR is now one of many corporate players that
dominate the market$ 3efore -))., the single screen halls owned by small
businesses and sole proprietors were the only players in the market$
The primary source of revenue for any cinema hall has always been the
sale of admission tickets$ /dvertisement, 4ood and 3everages, Royalty
income and !onvenience fee, etc$ are other sources of revenue for a
cinema$ There have been attempts to diversify into other revenue streams
to provide more options for out of home entertainment for the audiences$
5owever, this also primarily depends on the sale of tickets because this
model would work only when there are more number of people coming to
the exhibition spaces to watch the movies$ Therefore, the strategy of
revenue generation of any cinema exhibition company would in final
analysis take into account the number of halls and the audience footfall$ To
explain further, higher the number of halls, higher will be the company6s
earnings and the higher number of people coming into the cinema hall
would once again translate into higher revenue for the company$ Table -
illustrates the case in point for PVR$
Table 1: Details of the PVR Group (2005-2009)
Years
u!ber
of halls
u!ber
of
s"ree#s
Re$e#ue(i
# !illio#)
Gro%th
rate
&ootfall(i
# !illio#)
Gro%th
ratei#
footfall
2005-
200'
-' .7 -&.8$9 7% '$.' .'
200'-
200(
%- '% -.-)$: :& -8$.8 :'
200(-
200)
%7 -&- %88. 8% -.$). %%
200)-
2009
%) -%7 %.'.$- -8 -' .
;ith the increase in the number of movie halls<screens every year, the
footfall has increased tremedously, leading to a fair growth in the revenue
per year$ 5owever a closer look at the data would show that the percentage
rate of growth has decreased both in terms of revenue and footfall which
means there is an increase, but at decreasing rate$ +see Table %,
Table 2: De"rease i# the Re$e#ue * &ootfall of the PVR Group (2005-2009)
Years
u!ber of
s"ree#s
Re$e#ue (per
s"ree#)(i#
!illio#)
u!ber of
halls
&ootfall (per
hall)(i# !illio#)
2005-
200'
.7 -8$9%8 -' &$8'.
200'-
200(
'% %&$).& %- &$.&-
200(-
200)
-&- %8$%%. %7 &$.-:
200)-
2009
-%7 %%$%): %) &$:%
There has been an increase in the number of screens from %&&7(%&&' and
the revenue per screen and footfall per hall has also increased till the year
%&&.(&', but the same decreased badly in the year %&&'(&)$ This was
explained in the Price ;ater !ooperhouse report=-> which says that this
slowdown was due to the economic slowdown and rising development
cost$The multiplex industry witnessed delays in new roll outs of screens as
ma0ority of their upcoming properties were delayed due to slower
construction activity and delay in getting regulatory approvals$ The
developers too were going slowly on construction activity in the wake of
working capital getting dearer and acute shortage of labour$ Thus the
expansion plans around which the growth story of the multiplex companies
were built, had been slowed in the short term$
R+V+,+ G++R-T./ T+01.2,+3 /& T1+ PVR GR/,P
Te"h#i4ue 1: 3e5re5ati#5 the -u6ie#"es to 7a8i!i9e the Re$e#ue
PVR has different categories of cinema halls which cater to different sets of
audiences?
PVR Tal:ies are the low(cost multi(screen cinema$ They offer
superior ambience and high hygiene standards for viewers in Tier %
cities$ 4or example, the rate for a morning show in PVR Priya at
#elhi is Rs$ .7 as it largely caters to a student crowd$
PVR Pre!iere, the premium multiplexes, cater to evolved premium
urban viewers and the Gold !lass sub segment, and
PVR 1erita5e caters to the high end audiences$
This segregated manner of catering to audiences6 needs has ensured the
inclusion of higher number of people as part of the audience$
Te"h#i4ue 2: Re$e#ue 3hari#5 %ith the De$elopers
The cinema exhibition company also earns revenue from multiplex
properties that it runs under a revenue share arrangement with the
developers$ The developer is the one who develops and owns the other
parts of the multiplex$ The revenue from ticket sales at these cinemas is
paid in lieu of the rent on the basis of a revenue share with the developer$
@ultiplex properties at Ghaiabad, @ulund(@umbai, 2ucknow, 2udhiana and
*ndore are examples of this arrangement$ *n the case of halls at other
locations either the company owns the place or pays regular rent for the
place they are operating in$
Te"h#i4ue ;: 0o#$e#ie#"e fee
!onvenience fee is the amount that the customers are charged for booking
tickets through means which are largely telecommunications enabled such
as internet, mobile etc which helps the audience avoid the hassle of waiting
in a queue$ Revenues from !onvenience fee for the year ended @arch %&&)
increased to Rs$%-$. million from Rs -8$)millionregistering a growth of 8:A$
*t suggests an increase in tickets sales online and allied channels like,
@obile Ticketing etc$ This surge can be understood in terms of the growing
penetration of facilities like the internet to the public$
Te"h#i4ue ;: &oo6 a#6 <e$era5es re$e#ue
Revenue from sale of food and beverages is the total amount paid by
patrons at in(cinema concession stands for food and beverages and is net
of sales tax < value added tax$ This revenue source is planned very carefully
to increase the number of transactions within the limited time audience
have i$e, prior to the start of a film and during intervals$ This is done by
increasing the options available like providing service at the seat, adequate
number of sale counters, attracting customers through offers like meal
combos and tying up with well branded franchisees to provide food items
not available under PVR6s candy bar model through direct rent or profit
share models that yield well in a non(cannibaliing way$ This helps to cater
to local tastes and preferences in different ways, while keeping the core
PVR candy bar model intact$
Te"h#i4ues = * 5: -6$ertise!e#t a#6 ro>alt> i#"o!e
/dvertisement revenue includes revenue from onscreen advertisements,
off(screen advertisements and cinema association$ The increase in the
number of halls will lead to a rise in the number of eyeballs that the
location would guarantee$ This in turn would be attractive for the
advertisers$ / look at the data of years from %&&7(%&&) also shows that the
growth rate had been steadily on the rise till %&&'$ The year %&&'(&)
registered a slump in this growth$
Table ;: -6$ertise!e#t a#6 Ro>alt> .#"o!e of the PVR Group (2005-2009)
Years u!ber of halls
.#"o!e (i#
!illio#)
Rate of 5ro%th
2005-200' -' -&:$- )A
200'-200( %- -):$) ':A
200(-200) %7 %)9$8 8)A
200)-2009 9& 9'%$7 9&A
Royalty income is the sum paid by certain suppliers so that PVR agrees not
to sell directly competing products$ 4or example, Pepsi pays a huge sum as
Royalty *ncome aka Pouring rights to PVR for not selling any other soft
drinks$
Te"h#i4ue ': 7a#a5e!e#t fee
@anagement fee includes
B 3asic revenue share fee< management fee for services provided by the
company generally to the property developer in relation to the multiplex,
which is usually a percentage of turnovers$
B *ncentive fee calculated as a percentage of gross operating profit +before
interest, depreciation and management fee,$
Cther income earned, include rent from spaces that are leased out to third
parties, returns from different investments, etc$
T1+ 0-3+ /& .P? 30R++.G3 . T1+ PVR P?-@- -D R.V/?.
!onnaught Place, where PVR Plaa and PVR Rivoli are located, sits right in
the heart of "ew #elhi$ *t is one of the prominent landmarks in the city,
especially with the colonial buildings that surround the place$ PVR Plaa is
located in the inner circle whereas PVR Rivoli is located in the outer circle
with a distance of barely 7&& meters between the two$ Dince the two halls
are so closely located, it is interesting to observe how they respond to
competition with each other and with other cinema halls as well$ PVR has
rented heritage buildings situated in !P for both the halls where a monthly
rent of Rs$ % million and -$7 million is paid for Plaa and Rivoli respectively$
The pricing of tickets also reflects this difference between the two halls$
;hile the former has a two tiered pricing with a segregation of Rs$ %.7 and
Rs$ %%7, Rivoli has a three tiered pricing with a segregation of Rs$%7&,
Rs$%%7 and Rs$ -'&$ /s the statistics earlier mentioned, both the halls, in
line with the revenue pattern of the PVR Group, earn the maximum through
sale of tickets and food and beverages$ /lso Plaa with its location in the
inner circle is more attractive to the advertisers$
*t would be useful to understand how PVR responds to competition to get a
perspective on the significance of the proximity of the two halls$ This was
most visible in the case of *ndian Premier 2eague =%> +*P2, screenings$
/ccording to some internal sources, PVR has entered into an agreement
with *P2 where they had agreed to screen *P2 matches in specific number of
halls$ Therefore in spite of the low revenue generation from *P2 it had to be
screened$ *n %&&.(&' the *P2 screenings were held in Plaa but in the year
%&&'(&) this was shifted to Rivoli to offset the losses that were caused due
to the fall in the footfall in the hall$ Therefore in this case, the two halls
Plaa and Rivoli functioned in tandem where the *P2 screenings were
conducted in the latter while the regular movie screenings were held in the
former$
Duch a revenue strategy to offset its losses was not available to Cdeon 3ig
!inemas, also situated in !onnaught Place$ / 0oint venture of the Cdeon
Theatre +opened in -)9), and /nil #hirubhai /mbani Group +/#/G,(owned
the 3ig !inemas, Cdeon 3ig !inemas is the nearest competitor multiplex of
the PVR Group in !onnaught Place$ *t had to continue its *P2 screenings
despite the losses it incurred as it too like the PVR Group had an agreement
with the *P2 to show its matches$
2. SA20S R>1TAS
.;T0'<0%.A'.0S"* As electronic commerce becomes increasingly popular, new intermediaries
are emerging and transforming marketing and distribution channels. Intermediaries in electronic
marketplaces provide the IT and business infrastructure to facilitate the completion of commercial
transaction over interorganizational computer networks. If electronic intermediary services are
introduced to wholesale markets where qualities vary, the provision of IT alone cannot create
reliable electronic marketplaces for traders who have no pre-established relationships. To build
trust among market participants, electronic intermediaries should establish policies and processes
that regulate responsibilities and duties of market participants and legitimate transactions.
Institutional policies and processes reduce risks and help establish trust among market
participants. This paper provides empirical evidence that trust building processes by electronic
intermediaries can lead to concentration of electronic transactions on high quality products, thus
differentiating electronic and traditional markets.
Social influence occurs when one/s emotions0 opinions0 or beha&iors are a$$ected by others1
234
"ocial
in$luence takes many $orms and can be seen in con$ormity0sociali5ation0 peer
pressure0 obedience0 leadership0 persuasion0 sales and marketing1 In 36780 Har&ard psychologist0 Herbert
9e lman identi$ied three broad &arieties o$ social in$luence1
2:4
(. Compliance is when people appear to agree with others0 but actually keep their dissenting
opinions pri&ate1
2. Identification is when people are in$luenced by someone who is liked and respected0 such
as a $amous celebrity1
@. Internalization is when people accept a belie$ or beha&ior and agree both publicly and
pri&ately1
Sales management
'rom #ikipedia0 the $ree encyclopedia
Sales management is a business discipline which is $ocused on the practical application
o$ sales techni;ues and the management o$ a $irm/s sales operations1 It is an important business $unction
as net sales through the sale o$ products and ser&ices and resulting pro$it dri&e most commercial business1
%hese are also typically the goals and per$ormance indicators o$ sales management1
Sales manager is the typical title o$ someone whose role is sales management1 %he role typically
in&ol&es talent de&elopment and leadership1
Design management
'rom #ikipedia0 the $ree encyclopedia
,esign management is the business side o$ design1 ,esign managers need to speak the language o$ the business and the
language o$ design1
Design management is a business discipline that uses pro<ect management0 design0 strategy0 and supply
chain techni;ues to control a creati&e process0 support a culture o$ creati&ity0 and build a structure and
organisation $or design1 %he ob<ecti&e o$ design management is to de&elop and maintain a business
en&ironment in which an organisation can achie&e its strategicand mission goals through design0 and by
establishing and managing an e$$icient and e$$ecti&e system1 ,esign management is a comprehensi&e
acti&ity at all le&els o$ business =operational to strategic>0 $rom the disco&ery phase to the e)ecution phase1
?"imply put0 design management is the business side o$ design1 ,esign management encompasses the
ongoingprocesses0 business decisions0 and strategies that enable inno&ation and create e$$ecti&ely-
designed products0 ser&ices0communications0 en&ironments0 and brands that enhance our ;uality o$ li$e
and pro&ide organisational success1?
234
%he discipline o$ design management o&erlaps with marketing
management0 operations management0 and strategic management
%raditionally0 design management was seen as limited to the management o$ design pro<ects0 but o&er
time0 it e&ol&ed to include other aspects o$ an organisation at the $unctional and strategic le&el1 + more
recent debate concerns the integration o$ design thinking into strategic management as a cross-disciplinary
and human-centred approach to management1 %his paradigm also $ocuses on a collaborati&e and iterati&e
style o$ work and an abducti&e mode o$ thinking0 compared to practices associated with the more traditional
management paradigm1
2:4
O&er recent years0 design has become a strategic asset in brand e;uity0 di$$erentiation0 and product ;uality
$or many companies1 More and more organisations apply design management to impro&e design-rele&ant
acti&ities and to better connect design with corporate processes1
Value-added service
'rom #ikipedia0 the $ree encyclopedia
+ value-added service =VAS> is a popular telecommunications industry
234
term $or non-core ser&ices0 or in
short0 all ser&ices beyond standard &oice calls and $a) transmissions1 Howe&er0 it can be used in any
ser&ice industry0 $or ser&ices a&ailable at little or no cost0
2citation needed4
to promote their primary business1 In
the telecommunication industry0 on a conceptual le&el0 &alue-added ser&ices add value to the standard
ser&ice o$$ering0 spurring the subscriber to use their phone more and allowing the operator to dri&e up
their +(P@1 'or mobile phones0 technologies like "M"0 MM" and data access were historically usually
considered &alue-added ser&ices0 but in recent years "M"0 MM" and data access ha&e more and more
become core ser&ices0 and .+" there$ore has begun to e)clude those ser&ices1
Mobile .+" ser&ices can be mainly categori5ed into A1
31 Consumer .+"
:1 etwork .+"
A1 Enterprise .+"
+ distinction may also be made between standard =peer-to-peer> content and premium-charged content1
%hese are called mobile &alue-added ser&ices =M.+"> which are o$ten simply re$erred as .+"1
.alue-added ser&ices are supplied either in-house by the mobile network operator themsel&es or by a
third-party value-added service provider =VASP>0 also known as a content provider (CP) such as +ll
Headline ews or (euters1
.+"Ps typically connect to the operator using protocols like "hort message peer-to-peer protocol ="MPP>0
connecting either directly to the short message ser&ice centre ="M"C> or0 increasingly0 to a messaging
gateway that gi&es the operator better control o$ the content1
%he term ?&alue added ser&ices? is used to re$er to options that complement but a core ser&ice o$$ering
$rom a company but are not as &ital0 necessary or important1 %his term is used in many industries0 most
notably the telecommunications industry1 .alue added ser&ices are o$ten introduced to customers a$ter
they ha&e purchased the core ser&ices around which these ancillary o$$erings are built1
Costs
pricing strategy ( for a multiplex)
Posted on September 4, 2011 by aayu11
In order to get a turnover in the very 1st week( actually mostly the 1st 3 days) of the release of a movie, the
producers normally release their movies on a friday, as people normally during weekends,would watch a movie
for entertainment, irrespective of the price. This shows us that the demand is inelastic. Nowadays due to the
increasing amount of rush, traffic and parking problems many people prefer watching movies rather than going
to other places, which has increased the demand. The price is around 150-200 on friday morning show, at most
of the big multiplexes. While on friday night the price is around 250-300, because many people would finish their
work and then go for a night show, as the next day would be a off. Saturday and sunday the morning shows
would not be very expensive . While the price does rise to around 250-300 for the rest of the days. These prices
are normally aimed at high income level people, whose demand is inelastic. While if not a multiplex, with not
many screens, the prices of the tickets are normally low comparatively, but even they increase their prices to an
extent, during the weekends, as they aim at low income level consumers.