Transcript
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Marketing Research
Assignment
A Study Of
Consumer Preference for Multiplexes
Submitted by
Govind V
NO.23
S4 MBA
Submitted by
Govind V
NO.23
S4 MBA
Submitted to
Ms.Sobha Menon
MBA Dept.
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Index
Contents Page No.
1.Introduction 3-5
2.Research summary 6-7
3.Data Analysis 8-22
4.Findings and Conclusion 23-24
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Introduction
Multiplex
The origin of multiplex movie theatres traces its roots back to the 1930s,
although the concept truly did not begin to take root until the mid-1960s.
In December 1947, Nat Taylor, the operator of the Elgin Theatre in Ottawa,
Canada, opened a smaller second theatre ("Little Elgin") next door to his first
theatre. It wasn't until 1957, however, that Taylor decided to run different
movies in each theatre, when he became annoyed at having to replace films thatwere still making money with new releases. Taylor opened dual-screen theatres
in 1962 in Place Ville Marie in Montreal, Quebec, and at York dale Plaza in
Toronto, Ontario, in 1964.
In 1937, James Edwards twinned his Alhambra Theatre in the Los Angeles area
by converting an adjacent storefront into a second "annex" screen. While both
screens would show the same feature movie, one would also offer a double bill.
It did not convert to showing different movies on both screens until some time
after Taylor.
In 1963, AMC Theatres opened the two-screen Parkway Twin in Kansas City, a
concept which company president Stan Durwood later claimed to have come up
with in 1962, realizing he could double the revenue of a single theatre by adding
a second screen and still operate with the same size staff. Also, the shopping
center structure where the Parkway was located could not support a large
theatre, so two small theatres were built to avoid that issue, and at first both
theatres played the same film. AMC followed up on the Parkway Twin with afour-screen theatre in 1966 and a six-screen theatre in 1969.
A multiplex is a movie theatre complex with multiple screens, typically six, ten,
or more screens. 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.
http://en.wikipedia.org/wiki/Movie_theaterhttp://en.wikipedia.org/wiki/Movie_theater7/27/2019 Consumer preferences for multiplexes
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In the earlier days of movie-going, audiences were accustomed to sitting in
lavish movie palaces, complete with velvet plush chairs and an in-house
organist. In the late 1970s, the multiplex concept came into being. Theatre
owners realized they could reap more profit from a single building showing
several movies at one time than from one building showing one movie. Movies
were not released as often as in previous decades either, so showing several
different movies kept audiences from becoming bored.
The first multiplexes showed perhaps four movies at once, and were considered
quite innovative. Then, the six, eight and ten-theatre businesses became more
common. The single-movie theatres were often forced to close, or reinvent
themselves as performing arts centres or classic or independent movie houses.
This did have the added benefit of making independent movies more widelyavailable, but was still hard on the proprietors, since their profit margins are
smaller.
As time went on, this type of theatre was often considered a major anchor at
large shopping malls with big box stores. Large chain restaurants are also often
recruited for these kinds of shopping centres, along with other retailers, creating
a one-stop shopping experience.
The multiplex has also moved far beyond the classic popcorn and candyconcessions. Some theatres now serve full meals and have open bars in VIP
lounges. They have installed stadium seating so every customer has an
unobstructed view of the screen. The new theatres are also likely to have a state-
of-the-art surround sound system, digital projection, and a host of other
technological goodies designed to enhance the viewing experience. Customers
can often buy their tickets at an outside kiosk, using credit or debit cards,
without ever having to stand in line. Online ticket sales are even available, so
customers can either print out their tickets for a particular show time, or pickthem up at the counter or kiosk. The idea has blossomed into the megaplex as
well, which may involved theatres with over 20 screens in one building.
While the multiple screen idea has essentially taken over modern movie-going,
the drawback is that most of these theatres are part of large corporations that
have contracts with the major studios to run certain films.
The multiplex is a good place to see a popular movie on the big screen. They
make the most of technological advances in filmmaking and film projection andusually allow the audience to see the films under the ideal circumstances.
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The single theatres have lost the most in this multiplex run in India. Most of the
population is able to afford the multiplexes and hence these theatres are flocked
only by the lower middle class which seldom cares to watch a movie. It has
been noticed that these single theatres have started to feature Tollywood or
other Indian language movies rather than Bollywood or Hollywood Movies.
Globe Theatre, Kolkata is one of the most popular theatre featuring classics,
English documentary or Hollywood movies and used to be populated by
distinctive crowd. However, the number of movie-watchers at these theatres has
declined at a steady pace and now visiting these halls, one can witness
numerous empty seats. Individual theatres are in the verge of closing down as
the intensity of loss cannot be borne for long in comparison to the cost incurred
in putting up a movie and maintenance expenses.
The first multiplex that emerged in my city Kolkata was Inox (PVR Cinemas)
at the Forum Mall, Kolkata. Since then it has been witnessed the coming of 89
Cinemas, Fame, Big Cinemas (Adlabs) and now the IMAX. 89 Cinemas has
been acquired by Inox last year and now we have three Inox multiplexes in the
city scattered in different zones. The Indian population has been attracted to
bollywood in the days of Dilip Kumar and Raj Kapoor. Catching one glimpse of
their favourite movie stars is the fulfilment of one of the most important dreams
for many Indians. Movie stars visit these multiplexes in order to promote theirmovies and thereby fulfilling many such dreams. No wonder these multiplexes
are flocked by people all the time while the individual theatres are running out
of business.PVR Cinemas has branched to PVR talkies for the small town
business under this separate brand name. Multiplex constitute 2%-3% of the
total number of individual halls however the range of movies that the feature at
one time and the convenience that they offer has won over hearts and has gone
beyond the metros. Real estate players such as DLF have invested crores in
Multiplex business with the surety of it flourishing now and in the long run.With the advent of multiplexes it is not only prosperity of cinema but also of the
business profitability factor.
Currently two multiplexes are operating in Cochin which are Cinemax located
in Oberon mall and Q Cinemas located in Gold Souk Grande mall. There are
couple of other multiplexes coming up in kochi which are PVR Cinemas at Lulu
mall and Cinepolis at Central mall. One multiplex is under construction by the
Confident Group as well.
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Defining the research problem
In the current scenario there is a shift seen in the behaviour of movie goers.Customers have become aware of multiplexes and are keen to try them out.
Rush in the single screens have been reduced a bit and a considerable increase
in viewers at multiplexes have taken place. This research is conducted to find
out what is the reason for this shift from single screens to multiplexes by the
customers.
Objectives of the study
To find out why/whethercustomers prefer multiplexes over singlescreens To find out whether a multiplex or a single screen is desirable to go for a
movie in cochin.
To find out what are the factors that attract customers towardsmultiplexes
To review the customer perceptions about multiplexes and its facilities To find out how frequently customers visit multiplexes
Limitations of the study
The number of respondents was restricted to 50. No personal interaction with the respondents were possible Study was conducted in a limited time period
Research methodology
The research methodology used in this research was questionnaire survey
among the samples. Both primary data, collected from the survey, as well as
secondary data is being used in the study for the data analysis and for arriving at
the findings and conclusions.
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Research design
The research design used in this study was the framework of descriptive
research. The study aimed at studying different behavioural aspects of the
customers to arrive at the findings . The main objective of the study was to findout the factors which caused customers to prefer multiplexes over single
screens.
Sampling design
The sampling design used in this study was convenience sampling design.
Population that were selected as samples were according to the convenience for
data collection. Samples which were present in close contact were taken for
survey. The total number of samples were 50.Age group targeted were 22 -30.
Questionnaire
Questionnaire was primarily designed to collect quantitative figures as well
qualitative data in the forms of opinions and ratings of the customers.
Data Collection
The primary data were collected through questionnaire survey. Questionnaires
were distributed online through facebook as well as through emails. Googleforms was the platform for preparing the questionnaire.
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Data Analysis
1)
Do you watch newly released
movies?
No. %
Yes 50 100
No 0 0
100%(50 no.s) of respondents have answered that they watch newly released
movies. The age group of the respondents that were selected was between 18
and 25.Most of the people in this age group love movies .Increased pocket
money and income enables them to watch newly released movies. Also, the
movies that are being released these days is catering to different tastes of
different segments in this age group. All these factors has contributed towards
motivating people to watch new movies.
yes
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2) How often do you watch such movies?
No. %
Once in a month 24 48
1-3 times a
month 17 34
More than 3 times
a month 9 18
24 respondents have answered that they watch movies once in a month,17others have answered that they watch 1-3 times a month and 9 have answered
that they watch more than 3 times a month. Major part of the respondents
were students. Since they have limited money for spending they watch movies
once in a month or twice in a month. Those respondents, who are students,
with a high amount of pocket money can afford to watch upto 3 times a
month. Some part of the respondents have regular income which enables
them to watch movies more than 3 times a month.
Once in a
month
1-3 times a
month
>3 times a
month
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3)
Which was the platform in which you watched a new
movie?
No. %Multiplex 27 54
Single screen 23 46
D2H 0 0
27 respondents have answered that they watched a new movie in a multiplex
and 23 of them have answered that they watched a new movie in a single
screen. None of the respondents have seen a movie in a D2H platform.Multiplexes are new entrants into the cochin city. They are the bases of modern
film viewing. These days most of the young people have turned into this phase
just like in Bangalore ,Hyderabad, Mumbai etc. Majority of todays young
generation prefer multiplexes. Yet another part of young people still prefer
going to single screens. Cost may be the factor that is still causing some people
to view in single screens. None of the respondents prefer watching in a D2H.In
a D2H platform viewers have to pay to watch a movie in a prefixedtime, which
Multiplex
Single screen
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may be inconvenient for young people. This factor may have led them for not
choosing it.
4)
Which is the factor you give top priority to while choosing where to go
for a movie?
No. %
Comfort 18 36
Convenience 16 32
Ambience 6 12
Cost factor 10 20
18 people looks at comfort while viewing movie. They look for seating comfort
and other facilities while watching a movie.16 people choose their place of
viewing according to convenience. Convenience may refer to ease of access and
related factors.6 people have chosen ambience as their criteria. The environment
of cinema viewing must be well set, colourful and attractive for those
respondents.10 people have responded that they look at the cost while going to
watch a movie. They look at their financial resources and choose a location
which they can afford and is cost effective. They may be the group with limitedamount of money to spend.
Comfort
Conveneince
Ambience
Cost factor
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5)
Have you seen a movie in a
multiplex?
No. %
Yes 50 100
No 0 0
All of the respondents have seen a movie in a multiplex atleast once.
Multiplexes have been successful in attracting people to try out their cinema
viewing. The facilities, picture quality and safety assurance may be the factors
that have made the young people think about switching their film viewing to
multiplex.
Yes
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6)
How do you rate the facilities of
multiplexes?
No. %Excellent 23 46
Good 17 34
Fair 8 16
Satisfactory 2 4
Poor 0 0
23 respondents have responded that facilities of the multiplexes are excellentand is therefore highly satisfied.17 respondents have answered that facilities are
good and is therefore almost highly satisfied.8 people have answered that the
facilities are fair and therefore is moderately satisfied.2 respondents are of the
opinion that facilities are satisfactory and is fulfilling the basic expectations.
Excellent
Good
Fair
Satisfactory
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7)
How do you rate ticket charges of
multiplexes?
No. %High 24 48
Moderate 26 52
Low 0 0
24 of the respondents are of the opinion that ticket rates of multiplex are on the
high side.26 people have responded that ticket rates of the multiplexes are
moderate. None of the respondents are of the opinion that ticket charges arelow. The economical class or the silver class of the multiplex costs Rs.120 to
Rs.150.The gold class of the multiplex costs around 300 Rs. Gold class refers to
the premium class of the multiplex, whereas silver class refer to normal class.
Rates of the ticket vary according to the time of the show. Rate is low for the
morning shows and rate increases for later shows.
High
Moderate
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8) How do you rate the comfort of
multiplexes?
No. %Excellent 22 44
Good 17 34
Fair 8 16
Satisfactory 3 6
Poor 0 0
22 respondents have rated the comfort as excellent.17 people have answered
that comfort is good.8 people have responded that comfort is fair and 3 have
responded that comfort level is satisfactory. Comfort combines factors of
seating comfort and cooling conditions etc. Almost all multiplexes provide
comfort according to basic expectations. Therefore customers get the what they
expect or more than what they expect.
Excellent
Good
Fair
Satisfactory
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9)
Do you think multiplexes are more well set up than single
screens?
No. %Yes 50 100
No 0 0
Cant tell 0 0
All respondents are of the opinion that multiplexes are well set up compared to
single screen. The multiplexes are more ambient and are having luxurious
interiors than single screens. The traditional single screens just consist of acinema hall and a cafeteria. Whereas multiplexes make it more attractive to the
customers by providing additional facilities like food court.
yes
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10)
How often do you use food court facilities of
multiplexes?
No. %
Regularly 7 14
Very often 14 28
Often 12 24
Rarely 11 22
Never 6 12
7 respondents regularly use food court facilities of multiplexes as they have a
considerable amount of money to spend on their visits. 14 respondents veryoften uses this facility, they use this facility almost every time they visit a
multiplex. 12 people just often uses this facility, they do not use this in their
every visit.11 people rarely use this facility. 6 people never uses food court
facility as they may have only a limited amount of money to spend and they just
go for film viewing.
Regularly
Very often
Often
Rarely
Never
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11) How much are you willing to spend on multiplexes per visit?
No. %
300-400 Rs. 21 42
400-500 Rs. 12 24
500-600 Rs. 8 16
600-700 Rs. 7 14
More than
700 Rs. 2 4
21 respondents are ready only to spend 300-400 rs. on a visit. They are onlyready to pay for ticket charges and any other minor additional cost.12 people are
ready to spend 400-500 rs.,8 people are ready to spend 500-600 rs. and 7 people
are ready to spend 600-700 rs. People coming under bracket of 400 to 700 rs.
are ready to spend a considerable amount of money on a visit. They spend on
meals as well as ticket charges.2 people are ready to spend more than 700 rs.
one a visit. They make use of the food court facilities and are able to pay for
their partners ticket at times. They are capable of using premium class facilities
of multiplexes.
300 - 400 RS
400 - 500 RS
500 - 600 RS
600-700 RS
> 700 Rs
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12)
Where do you prefer to go for a movie in
cochin? No. %
Cinemax 21 42
Q Cinemas 23 46
Other single screens 6 12
21 people prefer to watch a movie in cinemax,23 people prefer watching in Q
Cinemas and 6 people prefer watching movies at single screens within the city.
From this we can understand that Q Cinemas is the most desired location in
Cochin to watch a movie. They are successful in satisfying the customers better
than any other movie houses. Facilities, comfort and neatness that Q Cinemas
provide is of premium class. The second most preferred location is Cinemax.
They are also plying to the basic standards of multiplex and is also desired by
customers in large numbers. Yet another small group of customers prefer single
screens due to some other factors.
Cinemax
Q cinemas
Other
single
screens
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13)Which other multiplex chains are youfamiliar with?
No.
PVR Cinemas 50
INOX movies 38
Fun Cinemas 24
Cinepolis 27
Satyam cinemas 12
The most known multiplex chain to customers are the PVR Cinemas. It has just
opened in Cochin and is gaining popularity. The INOX movies and Cinepolis
stand just next to the popular list of multiplexes to PVR Cinemas. Fun cinemasand Satyam cinemas are also known to some respondents. This data reveals that
respondents have also visited other multiplex chains outside Cochin.
0
10
20
30
40
50
60
PVR Cinemas INOX movies Fun Cinemas Cinepolis Satyam
Cinemas
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14)
Is there any other factor which you think is a limitation of
multiplexes?
No. %
Inconvenient location 9 18
Show timings 22 44
Cost 15 30
None 4 8
9 people are of the opinion that inconvenient location is a limitation of
multiplexes. They find that location is difficult to reach from their place. 22
people considers show timings is another limiting factor. Show timings is
different for multiplexes comparing to the show timings of single screens.
Respondents may find it difficult to adjust their schedule according to this. The
second major group, ie 15 respondents, consider cost to be another major
limitation of multiplexes.4 respondents do not find any major limitations.
Inconvenient
location
Show Timings
Cost
None
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15)
Will you accept if there is a reasonable rise in multiplex
charges?
No. %
Yes 29 58
No 8 16
Cant tell 13 26
29 respondents have answered that they can adjust to reasonable price changes
in charges. As the other costs of multiplexes are rising corresponding rise in
ticket charges can also be seen. They are confident that the rise in charges can
be met by their income level. 8 respondents have answered that they cannot
adjust to anymore rise in the charges of multiplexes.13 respondents are of the
opinion that they have not thought what they will do if the charges of
multiplexes rise.
Yes
No
Cant tell
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Findings and Conclusions
It has been observed major chunk of young generation is watching newly
released movies these days. Highly stylized movies and their genre are now
more appealing to the young generation. Most of the people view new movies
between the frequency of one to three times a month. This is a proof that young
generation have become more attracted towards movie entertainments. Through
this survey it has been found that most people prefer to go to a multiplex for
watching a movie since it produces a premium class of movie experience, even
though some of them prefer to go to a single screen due to their personal
reasons. Comfort and convenience is the two main important factors that people
look into while going for a movie. The cost factor and ambience is only
secondary factors. Through this survey it has been understood that almost all
young people have experienced going to a multiplex at least once. This shows
the popularity that multiplexes have got among young people inducing them to
go there. Facilities of multiplexes are rated as excellent by most of the young
people. At least all of the people agree that facilities are up to the standards
expected by the people or exceeds that. The ticket charges of the multiplexes are
rated between high and moderate. This is evident from the fact that multiplexes
charge for their tickets based on facilities that they provide which is higher than
single screens. One half of the population consider it fairly high and another
half consider it as moderate. All of the population is satisfied with the comfort
of the multiplexes. The seating comfort and cooling conditions that the
multiplexes provide is of excellent standards and none of the population has a
disagreement with that. Multiplexes also stand ahead of single screens in the
case of interiors and ambience. Multiplexes posses luxury interiors and facilities
like food court and play areas which makes it well set up than single screens.
The food court facilities are also been used by the customers often. Most of the
people buys food stuff from food courts very often or at least rarely. Even
though people with considerable amount of disposable income uses them
frequently. There are also people who never use food court facility since they
are new towards multiplexes, but may use it gradually. Majority of the
population spends between rs.300500 in multiplexes. This shows that young
people are more interested in watching the movie and buying small eatables.
However some people can afford more than that who uses premium class
facilities of multiplexes like buying big meals and sitting in premium classes.
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From the survey conducted it has been observed that Q Cinemas is the most
desired multiplex to go in cochin. Standing behind Q Cinemas is Cinemax,
which is the second most desired location. Both multiplexes provide almost
same and excellent facilities. But people are more favouring Q Cinemas. The
services quality of Q Cinemas may be better than Cinemax which may be the
factor making it the most desired location, Another few people are still loyal
towards single screens, Cost may be the only factor for that reason. Other than
multiplexes in Cochin the most popular multiplexes are PVR Cinemas and
INOX Movies.PVR Cinemas and Cinepolis are the newest multiplexes to enter
Cochin. The limiting factor of multiplexes that most of the people consider is
the show timings. The people are not used to the show timings of multiplexes
unlike single screens. The cost is another equivalent factor which is considered
widely as a limitation. Location is not much of a drawback except for some.
From the survey it has been understood that most of the people are willing to
pay a reasonable price hike in multiplex charges. They are ready to go along
with changes in modern film viewing. But, there are people who are not willing
to adjust to further hike in charges which may change if the disposable income
also rises.
On the whole we can summarize that the facilities, comfort and experience that
multiplex give to customers is well above single screens. Other than this factorsmultiplexes ensures security and safety for families which is now a concern in
Cochin city. A multiplex visit give added value to a customer in addition to film
viewing. It is evident from the study that customers are starting to switch over
to modern film viewing from traditional ones which indirectly makes
multiplexes superior to single screens.
It can be recommended that there must be proper financial planning while
choosing multiplexes. Any person with average income who falls under middle
class or above can afford to view in multiplexes. But it is strongly
recommended that additional facilities of the multiplexes should only be used
when they have surplus money to spend, otherwise a considerable part of the
income will be consumed. Taking a large group to multiplexes is also not
advisable. Multiplexes are advisable for families or any other small group of
individuals.
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References
Web sites;
http://theviewspaper.net/the-multiplex-business-in-india/
http://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.html
http://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-
revenue-share-from-producers-distri.html
Books;
Marketing research,An applied orientationNaresh K Malhotra, Satyabhushan
Dash
http://theviewspaper.net/the-multiplex-business-in-india/http://theviewspaper.net/the-multiplex-business-in-india/http://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.htmlhttp://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://www.livemint.com/Companies/X2s94NdmlM0hoWwvk1lYeO/Multiplexes-seek-higher-revenue-share-from-producers-distri.htmlhttp://businesstoday.intoday.in/story/multiplex-boom-india/1/24168.htmlhttp://theviewspaper.net/the-multiplex-business-in-india/
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