PROJECT ON CONSUMER RESEARCH STUDY ON MULTIPLEXES IN VADODARA actual

PROJECT ON CONSUMER RESEARCH STUDY ONMULTIPLEXES IN VADODARA

Submitted by: - Submitted to:-

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Shivang a. kalambekar Mr. Sachin bhattbhatt

M-13 Department of commerce,

T.Y.BBA (marketing management) Faculty of Commerce,

Faculty of commerce, M.S.University of Baroda

M.S.University of Baroda

Certificate of Research GuideThis is to certify that Shivang a. Kalambekar Roll no. M-13 a student

of M.S.University

has done his full-semester project training

The project work entitled “CONSUMER RESEARCH STUDY ON MULTIPLEXES

IN VADODARA” embodies the original work done by Shivang A Kalambekar

Project Guide

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Declaration

I hereby declare that the project work entitled

“War of the multiplexes – A Customer

Satisfaction & Customer Preference Survey on

Multiplexes in Vadodara ” submitted to MSU BBA

is a record of an original work done by me under

the guidance of Mr. Sachin Bhattbhatt and this

project work has been done under BBA degree .

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The information given herein, statements & other

related papers enclosed along with this report

are to the best of my knowledge & belief, true &

correct in all respects.

Shivang A. KalambekarMaharaja Sayajirao University of BarodaT.Y.B.B.A - MarketingRoll No.: M – 13

ACKNOWLEDGEMENT

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I owe a great many thanks to a great many

people who helped and supported me during the

writing of this project .My deepest thanks to

Mr. Sachin Bhattbhatt , Department of Commerce ,

MSU , the Guide of my project for guiding and

correcting me at every step during this research

work . He has taken pain to go through the

project and make necessary correction as and

when needed.

I express my thanks to Dr. Paremal H.

Vyas, Associate Programme Director, and MSU BBA

for his support. I would also thank MSU BBA for

giving me an opportunity to work in this

direction. I want to express my deep gratitude

to all my friends and classmates for their

support and guidance. I also extend my heartfelt

thanks to my family. Last but not the least I

would like to thank the almighty God.

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Shivang A. KalambekarMaharaja Sayajirao University of BarodaT.Y.B.B.A - MarketingRoll No.: M – 13

LIST OF TABLES

Sr. No. Particular1 No. of films2 Revenue contribution domestic3 Revenue contribution international4 History of Bollywood5 Emergence of multiplex6 Growth drivers7 Industry organization8 Challenges9 Attributes10 Inox evolution11 Existing inox multiplexes12 Upcoming inox multiplexes

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LIST OF GRAPHSSr. No. Particular

1 No of admissions2 Industry revenues3 Growth rate4 Distribution of theatres5 Distribution of income6 Screens per population7 A multiplex8 Age wise distribution9 Retail space10 Change in expenditure

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11 Entertainment tax rates12 Digital screens state wise13 Age 14 Gender15 Occupation16 Quality17 Comfort18 Value for money19 Status symbol20 Ticket price21 Frequency of visit22 Monthly expenditure23 Most preferred multiplex24 Suggestion for reduction in ticket price25 Suggestion for more offers and discounts26 Suggestion for more ticket booking facilities27 Suggestion for reduction in price of refreshments28 Overall most satisfying multiplex29 Reason of overall entertainment30 Reason of physical facilities31 Reason of staff behavior32 Drive-in theatre33 Single screen theatres34 Future of multiplexes35 Competitive advantage36 Business model37 Income mix38 Total revenue39 Income mix38 Total revenue39 Cost mix40 No of patrons

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CONTENT AT A GLANCE

SR.NO

PARTICULARS PAGE No.

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.1 CERTIFICATE OFRESEARCH GUIDE 22 DECLARATION BY CANDIDATE 33 ACKNOWLEDGEMENT 44 LIST OF TABLES 55 LIST OF GRAPHS 6-76 EXECUTIVE SUMMARY 97 CHAPTER – I

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141415

INTRODUCTION. RATIONALE OF THE CONSUMER RESEARCH STUDY

SCOPE OF PROJECT OBJECTIVE OF PROJECT

8 CHAPTER – II ENTERTAINMENT INDUSTRY MULTIPLEXES REVIEW OF LITERATURE

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9 CHAPTER – III RESEARCH METHODOLOGY. 64

10 CHAPTER – IV DATA ANALYSIS AND INTERPRETATION

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10 CHAPTER – IV FINDING, SUGGESTIONS & CONCLUSIONS

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11 LIMITATIONS 10512 QUESTIONNAIRE 106-11013 BIBILIOGRAPHY 111

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EXECUTIVE SUMMARY

This study is all about to understand theconsumers’ perception towards the multiplexes andto forecast the future of multiplexes in ‘B’grade city like Vadodara .It also measures thecustomer satisfaction and room for improvementfor the multiplexes .Related topics like demandfor a drive-in theatre in the city and the fateof single screen theatres in India andspecifically in Vadodara have been discussedhere within .This study is carried outwith the help of non-disguisedstructured questionnaire which disclosesthe responses of the respondents towards themultiplexes.

As per the data collected we found that allrespondents welcome the culture of multiplexesin the city. The people are very happy to havethe pleasant experience of watching the moviesin multiplexes which they so far used to getonly in metropolitans but now in their homeland.The study reveals that the future of themultiplexes in Vadodara is very bright. Thepeople are willing to spend more on entertainmentand the metropolitan culture has startedintruding in the city.

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From the feedback of 31 respondents interviewed,INOX emerged as a clear winner out of the 4multiplexes – INOX, Fame, PVR and Chandan inVadodara. Respondents feel that single screentheatres still stand a chance and would love tohave a Drive-in theatre in the city.

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CHAPTER-1

INTRODUCTION

A movie theater, cinema or Multiplex is a venue, usually abuilding, for viewing motion pictures ("movies" or "films"). Most movie theaters arecommercial operations catering to the general public, who attendby purchasing a ticket. The movie is projected with a movieprojector onto a large projection screen at the front of the

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auditorium. Some movie theaters are now equipped for digitalcinema projection, removing the need to create and transport aphysical film print.

A multiplex is a multi-screen entertainment complex showingdifferent films under one roof with other type of supportingbusiness in the vicinity like Restaurant, Shopping arcade andother entertainment avenues such as Game parlor, DJ partyhall, Bowling, Cafeteria, Ice skating etc. Emergence ofmultiplex has made movie going out an event. People can go atjust about anytime and find something to watch. It also enablesexhibitor to show a variety of movies appealing to severalsegments of moviegoers while serving patrons from common supportfacilities such as Box Office, Concession areas, rest room, andlobby. The multiplex model is based on the concept of UmbrellaEntertainment built around a primary anchor movie.

Cinemas are considered to be an integral part of cities and theycontribute to the definition of a local geography and identity.They also contribute to the preservation of the collectivememory, since they constitute a significant social and culturalpractice linked to a specific place, which acts as a commonreference or landmark for many individuals. The impact ofmultiplexes and megaplexes on the urban fabric, as well as urbanplanning policies in certain countries, is considerable . Mostof the multiplexes are located near the center or in the suburbsof major cities, and since they constitute a part of the urbanfabric they must contribute to the quality of urban life andrespond to urban planning needs. In relation to city centers,there is always the danger of urban decay and therefore theymust be regenerated. This implies containing the growth ofcommercial developments on the suburbs. The main question thatarises relates to the ways that a multiplex affects thedevelopment of a city, the quality of life of its residents (andtourists), and, perhaps, the planning legislation in somecountries.

India currently has 11500 existing screens, 95% are standalone,single screens. These single

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screen cinemas are poorly maintained as the owners find itdifficult to upgrade and renovate their facilities, due to unavailability of organized finance. Thedeteriorating quality of these cinemas dissuaded viewers and they started using alternativeviewing options.

Over the last few years, multiplexes have emerged as a trend inurban India. "Multiplexes" are essentially cinemas with 3 or more screens. They provide aquality viewing experience and are generally located around shopping malls to increase footfalls inthese malls. Each screen in a multiplex has small seating capacities in the range of 150-300seats as compared to single screen cinemas which have capacities in the range of 800-1,200seats.

The journey of multiplex which was started in 1997 withinauguration of first multiplex Priya Village Roadshow (PVR) Saket in New Delhi is currently atcrossroads roughly a dozen players have entered in the business in small or big way. New players aretrying to enter this sector and the existing players are busyexpanding their horizons. The multiplex has gone beyond the metros to redefine entertainment in Tier 1 and 2 cities.

The entertainment industry growth is 19% in India. And totalmarket worth is about 51,300 crore in India in year 2008.The multiplexes are oftencharacterized by a good ambience, comfortable seating, air-conditioning, and modern infrastructure

On one hand the primary sources of multiplex income are: Patron’sspending viz. ticket sale, F&B, and parking, Advertisement Income,Management fee and Revenue sharing. On the other hand the prominent components of expensesare: Cost incurred for the

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working of a multiplex are: Distributor Share, F&B Cost, LeaseRentals, Other Operating costs, and Entertainment Tax. The multiplex owners are working ondifferent business models to increase their reach and profitability.

Vadodara is the third most-populated city in the Indian state of Gujarat after Ahmedabad and Surat. It is one of four cities in the state with a population of over 1 million, the other being Rajkot and the two cities listed above, although it has a massivepopulation of over 3 million. It is also known as the Sayaji Nagari (Sayaji's City after its famous ruler, Maharaja Sayajirao Gaekwad III) or Sanskari Nagari (The City of Culture, a referenceto its status as the Cultural Capital of Gujarat). Vadodara or Baroda, formerly the capital city of the Gaekwad State, is situated on the banks of the Vishwamitri, a river whose name derived from the great saint RishiVishwamitra. It is located southeast of Ahmedabad. It is the administrative headquarters of Vadodara District.

Vadodara is home to almost 1.6 million people (as of 2005), the beautiful Lakshmi Vilas Palace and the Maharaja Sayajirao University of Baroda (M.S.U.) which is the largest university in Gujarat. Its famous for various faculties and departments, including the Fine Arts, Performing Arts, Technology, Management,Psychology, Social Work, Law and Medicine streams. It has a high literacy rate by Indian standards of 78% (2001). Major industriesinclude petrochemicals, engineering, pharmaceuticals, plastics and Forex. Famous companies such as ABB, Reliance Industries, Larsen and Toubro, IPCL, ONGC and Sun Pharmaceuticals all have a strong presence in this city, also it has presence of IT multi-national companies.

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Key Terms Marketing Research

Marketing Research is the function which links theconsumer, customer, & public to the marketer throughinformation - information used to identify & definemarketing opportunities & problems; generate, refine, andevaluate marketing actions; monitor marketingperformance; and improve understanding of market as aprocess.

Marketing research specifies the information required toaddress these issues; designs the method for collectinginformation; manages and implements the data collectionprocess; analyses the results; and communicates thefindings and their implication (G. C. Beri, 2000; pageno. 4).

Customer

Also called client, buyer, or purchaser, is usually usedto refer to a current or potential buyer or user ofthe products of an individual or organization, calledthe supplier, seller, or vendor. This is typicallythrough purchasing or renting goods or services. However,in certain contexts, the term customer also includes byextension anyone who uses or experiences the services ofanother. A customer may also be a viewer of the productor service that is being sold despite deciding to not buythem. However, "customer" also has a more generalized

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meaning as in customer service and a less commercializedmeaning in not-for-profit areas.

To avoid unwanted implications in some areas such asgovernment services, community services, and education,the term "customer" is sometimes substituted by wordssuch as "constituent" or "stakeholder". This is done toaddress concerns that the word "customer" implies anarrowly commercial relationship involving the purchaseof products and services. However, some managers in thisenvironment, in which the emphasis is on being helpful tothe people one is dealing with rather than on commercialsales, comfortably use the word "customer" to bothinternal and external customers.

Consumer 

It is a broad label for any individuals or  households that use goods and services generated withinthe economy. The concept of a consumer is used indifferent contexts, so that the usage and significance ofthe term may vary.

Brand Preference

It means the preference of the consumer for one brand ofa product in relation to various other brands of the sameproduct available in the market. Customer may be buyer oruser. Buyer is the person who makes actual or uses theproduct or service. The choice of the consumers isrevealed by their brand preference.

Customer SatisfactionIt is the individual perception of the performance of theproduct or service in relation to his or her expectations

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(Leon G. schiffman & Leslie Lazar Kanuk, 2009; page no.29).

SUBJECT

Customer’s Preference and Satisfaction for the Multiplexes inVadodara.

RATIONALE OF THE CONSUMER RESEARCH STUDY

The Proposed research study would report on selected customers’expectations and experiences with regards to their feedback abouttheir particular choice of multiplex located in Vadodara City inthe state of Gujarat. In this study an attempt would be made tomeasure and evaluate customer’s satisfactions or dissatisfactionsfrom conveniently drawn sampling units, who have enjoyed watchinga movie from a particular multiplex. This will help us to knowthe outlook of customers towards different multiplexes and thequality of services provided by them.

SCOPE AND COVERAGE OF THE RESEARCH STUDY:-

The study shall be undertaken in Vadodara City in the state ofGujarat, to measure and evaluate current state ofcustomerspreference , customer satisfaction and their actualexperiences with regard to selected particular choice ofmultiplex located in Vadodara City in the State of Gujarat. Therewere a total of 4 multiplexes covered – Chandan , Fame ( 7 Seas ), Inox and PVR .

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PROJECT OBJECTIVE

For any research work there has to be some objective which canhighlight the purpose of doing the research work. The objectiveof the study is to find the consumer preference for a particularmultiplex among consumers in Vadodara city. In the study theresearcher aims at analyzing the following aspects:

To collect data from selected consumers’ of movies from theVadodara City in the State of Gujarat, on selected criteria.

To obtain the opinion from selected customers’ of particularchoice of multiplex about their preference, satisfaction andactual experiences with availing the service of multiplexes.

To obtain the opinion from selected customers’ about type ofservices provided by different multiplexes in the city.

To study the overall perception of selected consumers’ of aparticular multiplex.

To find out the alternative choice of consumers in case ofnon-availability of their favorite multiplex

To find out still existing market for single screen theatresand new opportunities for a Drive – in theatre.

This research was conducted in two phases. In the first phase thestudy was based on the results of a wide survey, that is,personal interview with the aid of printed questionnaires. Thesecond phase of study was conducted by Secondary Research usingGoogle and other Databases. The internet basically serves thepurpose for the same.

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CHAPTER-2

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THE INDIAN FILM INDUSTRYEntertainment is always seen as a major source forleisure, relaxation and information and improved livingstandard translates into higher needs for leisure andentertainment. It is also an established fact thatentertainment is generally recession proof. The IndianEntertainment industry, which primarily consists of filmsoftware, distribution and exhibition, television softwareand broadcasting, music, radio, is one of India’s oldestand prominent industries.

It is the largest in the world in terms of ticket sales andnumber of films produced annually. India accounts for 73% of movie admissions in the Asia-Pacific region, and earnings are

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currently estimated at US$8.9 billion. The industry is mainlysupported by the vast cinema-going Indian public. The Central Board of Film Certification ofIndia cites on its website that every three months an audience as large as India's billion-strong population visits cinema halls. Indian films are popular in various parts of theworld, especially in countries with significant Indian communities. The Hindi film industry,based in Mumbai is the largest branch of Indian cinema.

The number of movies produced in India is the largestin the world. Approximately 23 million Indians go to see a filmevery day. According to a survey done by Earnest & Young, morethan 70% of the Indian Film Industry believe that the filmbusiness in India is expected to grow by more than 15% in thenext three years. Going forward with improvement indistribution, exhibition infrastructure, the advent of digitalcinema and better exploitation of films, the industry is likelyto grow at a compounded annual growth rate of 18% to gross$2244mn by this year. The overseas market has becomeincreasingly lucrative for Indian producers with most filmsrealizing 15-20% of their income from overseas.

Entertainment & Media industry’s total revenue pie is estimatedto grow at a compounded annual rate (CAGR) of 19% to beworth Rs.83,740 crore by 2010. The current size of theindustry is about Rs.35,300 crore. The industry is estimated tooutperform the country’s GDP growth each year till 2010 accordingto the 2005 annual edition of FICCI – Price Waterhouse Coopers’report on the Indian E & M industry. The studyattributes this to economic growth, rising income levels,consumerism, coupled with technological advancements andpolicy initiatives taken by the government, that encourage inflowof investments into the sector.

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Emergence of tier 2 and tier 3 cities in India holds ahuge potential in the organized film exhibition industry andthe organized retail industry. It is estimated that by 2006 –2007, India will have a 91 million high consuming households, 74million climbers and 15 million aspirant households, which willfuel the demand for entertainment. Further nearly two thirds ofIndia’s population is below the age of 35 .

The exhibition industry in India has over 12000 cinema screenswith 13 screens per million head of population, the lowest screenaverage in the world. India’s screen density is very low. Acombination of highly fragmented ownership, highentertainment tax rates, large cost of setting up newtheaters, and unavailability of organized funding hasresulted in many such theaters not being able to continuouslyupgrade or renovate their facilities, thus resulting in adecline in the quality of such theaters.

Cinema industry also has undergone a change in culture & taste.Today no film can dream of 300 day run. The shelf life per filmhas drastically come down. If the film is good then,unfortunately pirated CD market makes sure that it isseen across the entire geography. If the film is bad,anyway nobody will come to theaters to watch it. Therefore piracyis a lose-lose situation.

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Herein comes the basic logic of converting theaters into digitalexhibition medium and connecting it through satellite basednetworking. By the above, a new film can be releasedacross many locations without variable cost of prints and makethe new content available on the release day, in many locations,thereby solving supply issue of the content at the right time.Non-availability of new content on the release day, at theirrespective nearby place, is one of the major reasons for rampantpiracy of films. The release of film in many locationssimultaneously, reduces risk of failure and reduces piracy.This move will also in one stroke bring multiple content totheaters and theaters will no longer be just film exhibitioncenters but a place where gamut of entertainment & education canbe served.

Industry Facts: Revenue for 2004 was estimated at Rs. 59 billion (US$1.3

billion), which was less than 1% of global film industryrevenue and a fraction of the U.S. Film industryrevenue, which was US$9.49 billion in 2003. (Source CII )

Nearly 80% of Indian Industry revenues comefrom Domestic and Overseas Theatrical.

On the contrary US Film Industry earns only35% from box office sales and remaining 65% isderived from other revenue sources.

This clearly signifies the onset and potentialof Multiplexes in the India.

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Language Number of films produced in 2007 Hindi 223 Tamil 162Telugu 245 Malayalam 77Kannada 75Bengali 42 Gujarati 16Marathi 73English 9Oriya 21Bhojpuri 76Punjabi 12Telugu(dub) 17Tamil (dub) 11Others 31Total 1090

Table 1: No. of films produced

Graph 1 : No of admissions

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Graph 2 : Industry revenues

Table 2 : International Revenues

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Table 3: Domestic revenue

Graph 3 : Growth rate of industry

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Graph 4 : Distribution of theatres

Graph 5 : Film industry revenues

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THE HISTORY OF BOLLYWOOD

1896 The Lumière brothers' films screened inBombay's Watson Hotel.

1913 Dhundiraj Govind Phalke is seen as the fatherof the Indian cinema: from his first workRaja Harishchandra (1913) onwards heconstantly filmed episodes from the greatIndian epics – the Mahabharata and Ramayana.

After 1920 The Indian film industry developed steadily;more and more production companies were setup.

In 1931 India's first sound film was produced. Soundfilms helped the Indian producers to findtheir feet properly; imported foreign filmsstarted to be less important. The first soundfilms were also produced in Bengali, Tamiland Telugu in southern India and Bengal inthe same year.In the thirties, threeproducers (Prabhat, Bombay Talkies, NewTheatres) were predominant in making popularyet socially critical films.

1945 The period during the Second World War andIndian Independence was an important phasefor the Indian cinema. Many unforgettablefilms were made in these years.

1952 Saw the first Indian film festival in Bombay.The Bengali filmmaker Satayajit Raycompletely altered Western perception ofIndian films with “Pather Panchali“ : thiswas the first Indian film to wininternational recognition at European filmfestivals.

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In subsequent years the Indian film industryconcentrated on light entertainment. This andabove all the increasing importance of starschanged the industry considerably.

1964 The legendary director, producer and actorRaj Kapoor came to Switzerland for the firsttime to shootSangam

1970 In the seventies the mainstream cinemaproduced mainly action films.

1989 Meera Nair wins the Golden Camera at theCannes film festival for her first filmSalaam Bombay.

1995 Aditya Chopra's Dilwale Dulhaniya Le Jayenge,most of which was filmed in Switzerland, wasthe year's greatest success, and this broughta lot of imitators on to the scene.

1997 Advent of multiplexes

Table 4 : History of Bollywood

THE PROBLEMS FACED BY THE INDUSTRY

Indiscipline among filmmakers. This made the industryfragmented and disorganized.

Piracy leading to massive losses for the industry. Lack of resources in terms of finance, human etc. Lack of corporatized management. Limited studio space

and lack of security lending to an expensive foreignlocales resulting in drain of resources.

Reluctance of financial institutions to fund non assetbased ventures

Lack of expertise to handle latest equipments.

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SWOT ANALYSIS OF ENTERTAINMENTINDUSTRY

Strengths

Entertainment is one of the most booming sectors inIndia due to its vast customer reach& a large customerbase.

The growing middle class with higher disposable incomehas become the strength of the Entertainment industry.

Change in the lifestyle and spending patterns of theIndian masses on entertainment.

Technological innovations like online distributionchannels, web-stores, multi- and mega-plexes arecomplementing the ongoing revolution and the growth ofthe sector.

Indian film industry is second largest in the world andthe largest in terms of the films produced and ticketssold.

The low cost of production and high revenues ensure agood return on investment for Indian Entertainmentindustry.

Multiplexes with primes location with high averageticket price & strong brand equity.

Weaknesses

The Entertainment sector in India is highly fragmented.

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The lack of efforts for media penetration in lowersocio-economic classes, where the media penetration islow.

The film exhibition business’s fortunes depend on thesuccess of the films they are showing

Rapid development of digital technology and theadvancement in the broadband and networking space

Low margins and seasonal factors in the movieexhibition

Opportunities

The Indian film industry is the largest film industryin the world in terms of number of films produced andtickets sold each year expecting growth will becontinue in upcoming years in to producing movies.

The concept of crossover movies has helped open up newdoors to the crossover audience and offers immensepotential for development.

The increasing interest of the global investors in thesector.

The media penetration is poor among the poorer sectionsof the society, offering opportunities for expansion inthe area.

Rise in the viewer ship and the advertisingexpenditure.

Technological innovations like animations, multiplexes,etc and new distribution channels like mobiles andInternet .

Threats

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Piracy, violation of intellectual property rights posesa major treat to the Media and Entertainmentcompanies.

Lack of quality content has emerged as a major concernbecause of the 'Quick- buck' route being followed inthe industry.

With technological innovations taking place so rapidly,the media sector is facing considerable uncertaintyabout success in the marketplace.

Increased competition from other entertainment sourceslike IPL, affecting occupancy rates in Theatre.

High Real Estate price is a huge barrier toprofitability of this sector.

UNTAPPED MARKETIndia's craze for films has not been fully exploited bythe "Film Exhibition" industry due to the lack of screen densityin the country coupled with the poor quality of screens.

"Films" has been one of the integral components of the Indianentertainment industry contributing nearly 27% of thetotal revenues of the entertainment industry. Besides,films also contribute to other components of the entertainmentindustry like music, television and live entertainment. TheIndian film industry is one of the most complex and fragmentednational film industries in the world comprising of a number ofregional film industries like Hindi, Tamil, Telugu, Kannada andothers. 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 theglobal film industry revenues. In spite of being over 90 yearsold, the Indian film industry was accorded the status of industryonly in 2000. Over the years, the Indian film industry has been

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highly unorganized as film financing was dependent on private andindividual financing at extremely high interest rates. Onlyrecently, the industry has got access to organized finance.With vertical integration taking place between producers,distributors, exhibitors, broadcasters and music company’scorporatization is now taking shape in the Indian film industry.We believe, that corporatization, will bring about transparency,accountability and consolidation which will help to improvethe overall profitability of the Indian film industry as wellas reduce piracy and leakages which presently account for 14% of theIndian film industry's revenues.

Graph 6 : Screens per population

TREMENDOUS SCOPEFilm exhibition forms the most important component of the Indian film industry. According to the - KPMG report domestic theatrical revenues contributes 57% of the total Rs59bn film industry revenues and are expected to grow at 17%. Overall,

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the Indian film industry is expected to grow at 16% CAGR it is expected to reach Rs143bn in 2010. The main pockets for film exhibition in India are Delhi, Mumbai and South India. Due to various regional language film industriesin the South, it has become an important film exhibition pocket. Hyderabad and Bangalore are 2 southern cities where occupancies are exceptionally high at around 70%-80%.

The opening of the film industry to foreign investment coupled with the granting of industry status to this segment has had a favorable impact, leading to many global production units entering the country.

CORPORATIZATION OF INDIAN FILM INDUSTRY

The trend of corporatization of the Indian film industry,considered to be one of the most important aspects for thegrowth of the industry, continued to gather momentum in 2006.Some of the key indicators of corporatization in 2006 include:TheIPOs of production house: Like UTV and Saregama in2005, 2006 witnessed the IPOs of Prime Focus Ltd. and K SeraSera Productions Company. Percept Picture Company receivedfunding from Bennett & Coleman.

Several companies entered into long term contracts: withdirectors and

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actors to secure their content pipeline . Industry sources alsoindicate that more than half of the releases in 2006 were bycorporate rather than individuals. Corporate are alsoestablishing their presence in the film distributionspace with media conglomerates like UTV Software, Sahara Groupand Eros International entering this segment.

GLOBALIZATION OF INDIAN CINEMAToday, Indian cinema is becoming increasingly westernized.This trend is most strongly apparent in Bollywood. NewerBollywood movies sometimes include Western actors (such as RachelShelley in Lagaan), try to meet Western productionstandards, conduct filming overseas, adopt some English intheir scripts or incorporate some elements of Western- styleplots. However, the meeting between west and India is a two-way process: Western audiences mostly of Indian origin arebecoming more interested in India. The earnings from overseasmarket have wooed the Indian Filmmakers. The films arespecially targeted to woo the overseas audience. The market isenough to get return on investment. The Indian actors and otherfilm personalities become global stars. On the contrary, Westernproducers are funding maverick Indian filmmakers . TheHollywood film personality has started eying on Indian Filmmarket respectfully.

FILM SCREENING

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A film screening is the displaying of a film, as part ofits production and release cycle, before it is widelyreleased to movie theaters. In general, "screening" applies toshowing under special circumstances: either the environmentor purpose will be different than that experienced by a massmarket moviegoer. To show the film to best advantage, screeningscan occur in plush, low seat-count theaters with very highquality (sometimes especially certified) projection and soundequipment, and can be accompanied by food and drink and spokenremarks by producers, writers, or actors. Screenings typicallyoccur outside normal theatrical showing hours. The differenttypes of screenings are presented here in rough chronologicalorder of their use:

Types of screenings:

Critic screenings occur for national and major marketcritics well in advance of print and televisionproduction-cycle deadlines, and are usually by-invitation-only. When a studio anticipates negativecritical reviews, this step is frequently skipped; thestudio instead relies on advertising, in-theaterpreviews, word-of-mouth, and established knowledge ofthe target audience for the success of the film.

Private screenings are provided for investors,marketing and distribution representatives, and VIPmedia figures.

Premier screenings are provided for well-wishers fromthe film industry including actors, actress, filmfinancer, and producer, distributor, invited VIP guestsetc.

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Film festival It is the presentation or showcasingof films in one or more movie theaters or screeningvenues. The films are usually of a recent date and,depending upon the focus of the individual festival, caninclude major international releases as well as thosemade outside a country's established film industry.Sometimes there is a focus on a specific genre or subject.

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MULTIPLEXMultiplex constitute only 2.3% of about 11,000 cinema halls inIndia, but they collect around 28% to 34% of the box office collection for the top 50 films in2007. More than 300 additional multiplexes with 300 screens areslated to commence operations by end of 2009, a growth rate of80-100% . An increase in the number of multiplex screens shouldresult in an increase in film exhibition revenues, so the openingof new multiplexes represents a significant growth opportunityfor the industry.India needs approximately 20,000 screens tocater the entire cinema viewing population.

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Graph 7 : A Multiplex

EMERGENCE OF MULTIPLEX IN INDIAIn 1979, world’s first multiplex ‘Eaton Center’ inToronto, Canada was opened for the general public. In1997 PVR established, first multiplex in India – PVR Anupam,New Delhi. The PVR Anupam changed the Indian movie exhibitionlandscape. Movie exhibition till mid nineties was dominated by

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Cinema halls – the traditionally single screen halls.Cinema halls witnessed a surge of customers mostly duringthe festive season and on weekends. The emergence of multiplexeschanged the movie exhibition business in India. Today, all eyesin the entertainment industry have turned towards multiplexes,as they generate a larger share of revenue though theyaccommodate less number of seats per theater.

The emergence of new multiplexes has reduced the audience fortraditional cinemas. The multiplex business is not onlyprompting traditional cinema theater owners to convert theirproperty into multiplex but in recent times has also attractedmany international players to venture into the business. Nowonder the multiplex business is so lucrative that foreignentertainment giants like Time Warner, South Koreanmultiplex operator Megabox, and Australia’s Hoyts are intalks with real estate developers such as the DLF group, theRaheja Group and Sobha Developers to set up chains of multiplexesacross the country. New players are trying to enter this sectorand the existing players are busy expanding their horizons. Inrecent times the multiplex has gone beyond the metros to redefineentertainment in Tier 1 and Tier 2 cities like Lucknow, Indore,Nasik, Aurangabad, Kanpur, Amritsar. The good news for most ofthe movie exhibitors is that at present roughly 70 percent ofthe total box office collections in the country come from non-metros.

These multiplex has multiple screen movie theatercomplex which also offers lifestyle shopping. It offersbrand new experience of watching movies. Todaymultiplex are considered not just a part of the entertainment,it is an opportunity for family outing which include movies,shopping, dining out, gaming parlors, buying books, buyinggroceries, etc. Most of the multiplexes malls in India havecommon structure, which believes structure of the idealmultiplex. Ideal multiplex malls have a four to five floors withvarious leisure and recreation options for customers. The topfloor has multiplex and rest of the floors offerfacilities. The structure of the multiplex mall explores

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the consumer psychology, where customers who come with theintention of watching a movie are made to pass all the floors inthe shopping mall. It increases the possibility of theirmaking some impulsive purchases. Moreover, the multiplexes donot allow outside food and beverages into the movie theaterswhich offer them opportunities to sale of their own products ata premium.

The decade old Indian multiplex industry has definitely changedthe movie exhibition industry in India. The multiplex industry,in India, is still in an early growth stage, and is way behindthe size and scale reached in the developed countries.

Table 5 : Emergence of multiplexes

SCOPE OF MULTIPLEX

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The cinema exhibition industry in India is growing at 10% perannum driven by multiplexes, which are expanding rapidly in majormetropolitan cities as well as second and third tier cities.Favorable demographics in a cinema-crazy nation, taxexemptions, and quality locations such as malls, are drivinggrowth of multiplexes in India. Most of the multiplexes in Indiaare anchor tenants in the large format malls making a favoritedestination for the youngsters as well as the families.Multiplexes captured the market as complete familyentertainment centers. The digital revolution hashelped the Media and Entertainment industry to go digital.There are more than 100 digital cinemas in India today.

They have completely transformed the experience of theviewers. With an increase in the incomes of the people andincreasing expenditure on the leisure activities, multiplexes arepoised for high growth in India. Other than the sale of themovies tickets, Food & beverages is the major source ofrevenue for the multiplexes. Space economies and the optimalutilization of the capacities are the major advantages orbenefits that the multiplexes enjoy over single screen theatres.

WHY IS THERE A MULTIPLEX BOOM?In India there are about 20,000 theatres and there is aplenty of space and resources for an equivalent number oftheatres to be started all over. Thus, there is a high growthrate for the multiplexes in the entertainment industry. Due tothe high growth rate of the multiplex industry; various benefitsare provided by the government such as overall tax concessions,reduction in entertainment tax and so on in order to motivate theindustry person. Some of the other factors involved are givenbelow:

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Aspirations: There is a huge group of people who are veryambitious and have a status symbol (premium or the topclass) or desire to possess it. Thus, these groups ofpeople prefer to have an edge over others (middle andlower class) by viewing movies in a multiplex ratherthan a single screen theatre as it is a matter of pride andhonor for them.

Attitudinal Change: Gone are the days when one used tothink about saving the money by not going to the theatrealong with the family to watch a movie and instead go outfor a picnic to enjoy the whole day. Gradually, this concepthas changed now because if a person plans to spendhis whole day for enjoyment along with hisfamily, then multiplexes are the best option asthey have everything from shopping stores torestaurants, cafeteria, games corner and so on.

Combination of various facilities: The concept ofsatisfying the consumer under one common roof isgrowing rapidly all over the world. Thus thereare two types of combinations found;

One is a “Mall with a Multiplex”. E.g. ‘R Mall hasa multiplex ‘R Adlabs’ within itself. Recently,Fame Adlabs too opened its new multiplex in Maladwithin the mall named “Inorbit”.

Second is a “Multiplex with shopping facilities andvarious Amenities” within its roof. E.g. Imax Adlabsis a multiplex having within its games arena,cafeteria and other such amenities. Also, aperson can shop during the promotionalactivities carried out by various companies withinthe multiplex and take advantage of variousbenefits and offers provided by them.

The relationship between the multiplexes and themalls is referred as the “Synergy Effect”. It thus

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helps in satisfying the consumer with the required amountof amenitiesand facilities needed by bringing all therequired resources under one common roof. This helps theconsumer to enjoy his whole day at one common placeinstead of planning to go to various places in order toshop, dine and have fun with his family members.

Provides employment facilities even for those who arenot involved directly: This is one of theinteresting cases found in the multiplexes.There are many departments involved in the smoothfunctioning of the multiplex such as Human Resource,Marketing, Food & Beverages, Administration and soon. All these departments are employed directlyas per the requirements. Now, there is also a lot ofemployment scope for those people who are not involveddirectly in the multiplex industry. Many of themultiplexes that have huge space such as Imax Adlabsorganize many events such as children’s day, teacher’sday, child festival and so on. Thus, to organize suchevents many people from outside are involved suchas decorators, musicians, caterers whoindirectly gets employed.

More number of screens: This is one of the mostimportant reasons for the multiplex boom. These are morescreens, roughly 3-5, when compared to the normal movietheater (Single Screen). As there are many screens in themultiplex, people get a huge variety and range of moviesto view. Also, the movie timings are flexible and thus acustomer can view any movie of their choice as pertheir availability and convenience. Due to this theturnover of audiences as compared to the single screentheatres are relatively very high.

Risk minimization: Also, the benefit that the multiplexhas over the single screen movie theatre is the ‘risk

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minimization’ factor. The multiplex has variouspartners, various company collaborations, and thus theywork together to achieve the goals set up by theorganization. Also, the risk is minimized when the spaceis let out to various corporate organizations such asReliance, Vodafone, HDFC, and so on forvarious product and promotional launches.

Such has been the runaway success of this cinema viewingexperience that today, even though multiplexes make upjust 2% of India’s nearly 11500 screens, they account formore than half the box office revenue of Hollywood releases inthe country and more than a third for Bollywood. Thatsuccess, however, has not been limited to theglitzy cinema halls.Industry analysts say thatmultiplexes, with their smaller halls, have alsoredefined filmmaking by creating a niche forexperimental cinema among urban, educated audiences.

Multiplexes, where ticket prices are five times that at a single-screen cinema, ensure a faster return on investmentfor producers and, because of quick turnarounds, havebecome instrumental in raising the output of films,he said. “The idea now is to recover investments within thefirst weekend,” said Bose, who has authored severalbooks on Bollywood.

The multiplex industry is expected to grow more than 44% to $220million by next year, according to a recent reportby brokerage B&K Securities. The overall Indian filmindustry, now worth about $2 billion, is expected to growto $4.3 billion by 2011, Ficci says.While more and more single-screen cinemas are converting tomultiplexes in cities, they still remain theentertainment mainstay for millions in small towns andvillages. They are also popular with the urbanpoor because of their cheaper tickets. Analysts sayhigh ticket prices have also meant that average

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occupancy levels in multiplexes have hovered at around 40%.They say that as multiplexes mushroom and begincutting into each other’s territories, occupancy levelscould plummet to 30%. “This could mean the multiplexboom is a bubble that will burst unless ticket pricesare brought down,”

Multiplexes earn lot more from other revenue sources as comparedto box office collections. However, due to the role of PULLcreator that the movies play in this scenario, overallreturns are highly correlated to Box office contribution. Mostmultiplex projects breakeven at an occupancy rate of 40-45%.This figure may vary as per the maintenance standards ofvarious theaters and the revenue streams running parallel to it.Real estate is the major cost component and a strategic resourcefor the multiplex business. Typical built up area required perseat is around 30 sq. ft. and average no. of seats per seats perscreen is around 250-400 as compared to single screen cinemaswhich have capacities in the range of 800-1,200 seats.

A recent trend in multiplex operations has witnessed theproliferation of multiplexes in to non-metro urban centers ofthe country. The primary targets in this include Pune, Baroda,Indore, Ahmadabad and Jaipur. The stiff competition that islikely to intensify with the coming up of so many multiplexesdoes not seem to worry any of the players. No doubt the industryis likely to witness a few shake-outs with theindiscriminate mushrooming of multiplexes, but theones with a prominent chains and proper financialbacking will hold their ground.With multiplexes came themultiplex style of management: plush seats, superiorsound quality, add-ons - all at a price, ofcourse. Consumerism has always existed. Todaymultiplexes are offering better facilities to a section of theaudience that can afford it.

Theatre owners are not allowed to change the nature of theirbusiness unless they retain 33

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per cent of the original number of seats in their newenterprise. Further, the government has not considered the factthat not everyone can afford to watch a film in a multiplexconsidering the high rates of admission. This will only promote abackdoor boost to video piracy.

Other Multiplex growth drivers

Multiplexes have access to prime locations as a largenumber of mall developers are considering setting upmovie theaters to attract footfalls in the mall.Multiplex operators are emerging as anchor tenants formalls and are therefore being offered attractive rentalrates.

Occupancies in multiplexes are higher as compared tosingle screen cinemas as the seating capacity per screenin a multiplex is less than that of a single screen.

Different screens in a multiplex have different seatingcapacities. The multiplex operator can therefore chooseto show movies on a larger or smaller screen based on theexpected potential of a film. Besides the multiplexoperator can also choose to show movies on larger screensin the first few weeks of release and later continue toshow this film on a smaller screen.

Multiplex operators can charge different prices dependingon the time and popularity of the film.

Multiplex operators use common manpower for severalscreens and hence have better cost efficiencies.

Multiplex operators can offer a wide range of food andbeverages as multiple screens use common food andbeverage facilities. This wide range helps in increasingthe F&B spend per patron.

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Multiplex operators can achieve significant operatingefficiencies due to better film management and commonvendor relationships.Due to the large number of screens,multiplex operators have better bargaining power withdistributors.

Entertainment tax, levied by the state, is the main levyon the exhibition industry. This varies from 30% to 100%of the net ticket price from state to state. Recentlycertain states have announced entertainment tax holidaysfor newly constructed multiplexes. This is likely toincrease the profitability for these multiplexes.

Film production is presently going through a wonderfulphase as far as supply of funds is concerned. Thisspace has been attracting a lot of attention because ofits inherently strong fundamentals. A number of playerswith deep pockets have entered this space, which shouldkeep the content pipeline robust over the coming years.In this year so far, an investment pipeline of $1.7bnhas been announced in this space. Producers are nowflush with cash and are no longer overly dependent oninformal sources of funding. This trend will continue inthe medium-term and supply of content will not be aproblem for multiplexes. Moreover, ticket salereporting is far more transparent inmultiplexes than in single-screen theatres. This resultsin higher film revenues for producers.

The shelf life of a movie has dramatically reduced froma few months earlier to merely a 1-2 week window now.This has significantly reduced the time window withinwhich producers / distributors can monetize themovie and recover their costs. Multiplexes, withmultiple screens, have far more flexibility inscheduling of movies, which enables them to exhibitmultiple shows of a single movie simultaneously,

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thereby helping distributors recover a majority ofthe anticipated revenues from the film during the firstweek itself.

Today, multiplexes are contributing 35-40% to theoverall domestic box office collections with less than5% of the total screens under operation. The format ishighly relevant for the distributors and none of them canafford to bypass it and still make money on films.

Hollywood films are increasingly finding acceptance inIndia, making India the fifth-largest market ofHollywood films in Asia and the 15th largest market forHollywood globally. An increasing number of Hollywoodfilms are being released in India in multiple languageswith greater number of prints . The number offoreign films released in India is set to grow,especially with large studios such as YashRaj Films foraying into foreign film distribution. Itis expected trend to benefit the multiplex industry interms of ensuring a steady content.

Multiplexes are often regarded as the footfall magnetsfor malls. The concept of shopping-cum-dining- cum-entertainment outing is gaining popularity amongthe urban populace, where multiplexes in mallsbecome the most relevant destination choice.Almost all upcoming malls have a multiplex operatoras an anchor tenant. Hence, the supply of real estatewill not be an issue for the sector, eventhough the pace might be slow due to developmentdelays. India is presently witnessing a retail revolutionwith many big players foraying into organized retail andmany mall development plans being announced in order to

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cater to their expansion plans. The pace of malldevelopment will surely ensure availability of qualityreal estate .

India is a highly favorable country forconsumer industries with all the key indicatorspointing towards higher consumer spends in thecoming years. It has seen its per capita incomedoubling in the last 6 years, it has more than 60% ofits people under the age of 60, urbanization andexposure to western lifestyle is rising, allleading towards increasing consumerism in the comingdecade. In the buoyant times; people tend to spend moreon the leisure based consumption. For the multiplexsector, the target group is in the age group of 15-30years of age, which visits the theaters more often thanothers.

India is an entertainment hungry nation, and the majorsources of entertainment are cricket and Bollywood. Morethan 3.3bn tickets are sold in India annually, this makesus the most cinemas going population in the world. Mostof the single screen theatres are run by singleproprietor, often without proper operationalmanagement skills. Moreover, because of the poorquality of prints supplied to the single screentheatres in the rural areas, footfalls have beencoming down. On top of it, these screens are noteligible for entertainment tax exemptions. Thesefactors have eroded the viability of these screensresulting in poor infrastructure spend whichfurtherreduces footfalls.

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With the entry of multiplexes, which provide betterquality movie watching experience at a higher pricecompared to single screen theaters, more and more middleincome group people are coming back to the theatresthus unlocking a latent demand. This is a classiccase of leisure consumption winning over valueproposition in India. As content supply booms, more andmore people will turn to multiplexes because of therising willingness of people to pay for such services.

There is enough space for more multiplex projects giventhe quantum of demand and lack of supply in the sector.Our preliminary analysis suggests that at national leveland considering only the urban population demand in theage group of 15-30 years, 662 multiplexes with 3 screensper property i.e. 2000 screens can operate at 35%capacity. All of the multiplex players combined areoperating only 500 screens at present.

Growth drivers for multiplex in tier2 and tier3cities-

Favorable demographic changes.

Increase in disposable income with expanding Indian middleclass people.

Organized retail boom.

Entertainment tax benefits for multiplex cinemas.

Good quality of hindi cinemas.

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Graph 8 : Age wise viewers

Graph 9 : Retail space

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Graph 10 : Change in expenditure

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Graph 11 : Entertainment tax rates

Table 6 : Growth drivers

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Table 7 : Industry organization

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Drawbacks of a Multiplex

Multiplexes charge a 30%-50% premium on ticket prices asagainst standalone cinemas. This is one the majordrawbacks of multiplex operators as multiplexes attractonly a section of the society consisting of the Rich andUpper Middle class. The premium charged by multiplexes isfor the better ambience as well the high quality audio andvisual effects.

In certain areas, multiplexes have become a cause fortraffic jams. People residing near multiplexes find thisto be a nuisance. To set up a multiplex, a series ofapprovals and licenses have to be acquired by the malldeveloper as well the multiplex operator. This is due tothe heavy regulation imposed by state governments. Theseregulatory issues are a cause of concern as they causedelays in setting up a multiplex.

Multiplex are a source of increasing pollution andconsumption of limited valuable natural resources.

Multiplex business requires huge financial investment andis very risky as multiplexes often succumb to their lossesdue to less footfalls , less patronage , less business ,etc especially in recessionary times .

The Major Players

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Multiplex, in India is witnessing unprecedented growth. A fewbig corporate house have already entered the business andothers are planning to venture in the business through acquireexisting players. However, industry experts rule out anyconsolidation in the industry. They believe market is still inthe growth stage and there are enough opportunities for theexisting players. In current scenario competition is heatingup among the existing players. Adlabs, PVR, IOX, Fun, Fame, DTCinema, Satyam Cineplexes have chalked out big expansion plansto increase the number of screens in the next few years to getbetter share of movie revenues.

These include nationwide PVR Fun cinemas E city Inox Adlabs Fame Cineplex

A TYPICAL MULTIPLEX

Multi Screens: A normal multiplex has 4 screens with8-10 movies running so that customer can choose thedesired movie.

Ticketing options: The ticketing options inmultiplexes are very systematic as compared to anormal single screen theatre. There are lots ofoptions available for booking the tickets suchas advance booking, home delivery, internetbooking, tele- booking and current booking. Thus,one doesn’t has to spend a lot of time in booking aticket as there are various options available.

Cafeteria: The multiplexes also have cafeteria in their vicinity which gives

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the consumers limited options to satisfy their hunger and thirst as quickly as possible during the screening of the movies.

Entertainment: Entertainment facilities areavailable for the children within themultiplex arena in the form of games arcade, funhouse etc. Also, special events such as Valentine’sDay, Friendship Day and many more areorganized which entertain the teenagers.

Malls: The invent of malls within the multiplex andvice versa has madeshopping easier as everything canbe done under a common roof, from enjoying toshopping, dining etc.

Restaurants: They also form a part and parcel of themultiplex and satisfy the consumers with wide rangeof food and beverages.

AIM OF EVERY MULTIPLEX

To appeal to a wider audience as possible to increaseviewing and therefore profit. To accommodate all differentwalks of society.

To increase how often people go to the cinema.

Mainly specialises in main stream films because they arethe ones society is most aware of due to the media and thisis why they mainly specialise in general genres such ascomedy , romance , family , action and adventure and steerclear of controversial films to prevent offence and secureviewing.

Not always to make a profit but also due to contracts haveto show films for a certain amount of time due to thedemands of distributors and film companies.

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MARKETING MEDIA CHANNELS FOR COMMUNICATION

PrintPrint media such as Newspaper, magazines, journals, pamphlets,poster etc.at he time of release of movie, these media areused to advertise intensively. E.g. Bombay Times, Mid- day.

RadioSecond most used medium. Multiplexes attract customers byvarious contests on Radio. Leading Radio stations Radio Mirchi, Radio City etc

WebPersonal website for multiplex is used by firm to market themovie. Promotional activities and the new happenings alongwith new releases information is being constantly provided onwebsite. Bookings are also done on website.

SMSNew trend setup by multiplex is use of mobile sms formarketing. The database of numbers is compiled by collectingphone nos. from the customer who watch movies. And then anypromotional things, new release movies, reminder to customersis been done via sms.

Hoardings61

This is used to recall customers about the movies beingscreened at multiplex. Thus along with multiplex are alsopromoted. Hoardings are placed both at populated place and inmultiplex which attract customers.

Tie-ups: Multiplex has tie-ups only when it has promotional activitiesto be conducted within its premises. It works with the companythat is promoting and markets both the company’s product aswell as officials of multiplex.

Public relation: This activity supports all the activities which are used topromote multiplex. Writing and giving any promotion and it take care of any misunderstandingbetween consumer and multiplex.

In –House Branding: This promotional activities been taken in the premises ofmultiplex. Different sections like, entertainment area, cafearea and dome area and so on. Every section tries their bestto retain the viewer.

MARKETING STRATEGIES

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Entertainment MarketingMarketing of entertainment services is referred asentertainment marketing. Entertainment services includescreening of movies, their premiers, press & media requiredspecial screening of movie show & also different types ofeatables served within the multiplex is divided into twotypes namely:

Movie Marketing: this is one of the most importantareas which is marketed & helps in creating a brandimage for the company. The main focus is to marketthe movies that are big screened along with creating& making aware the people about the multiplex. Alsoduring such premier’s press & various media channelsare invited to cover the whole premier event whichhas a positive effect on the multiplex. As stars arecalled for the premiers of special movies along withoutside people, this act as s “synergy effect” andthus more & more number of people become aware aboutthe multiplex and its day to day activities. Allabove this with the help of various media channels,huge & extensive advertising is done for the movieswhich add to the recall value on the minds of thepeople.

Café Marketing: This is an altogether new conceptstarted and undertaken by multiplexes for marketingits movies. It basically helps in promoting itsmovies with thehelp of eatables sold in thecafeteria within the premises of the multiplex. Herethe eatables are named after the movies & variousfilm stars during the release of much hyped &successful movies.

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Special Events Marketing: the positive point thatmultiples gains over others is that along with thescreening of various movies it also screens specialevent such as F1, cricket matches, variousdocumentaries and social messages that are to bepassed in community. Multiplex also organizecelebration of religious festivals as well asspecial days such as valentine day, friendship day,Independence Day & republic day & events.It arrangesfor many events & birthday parties as per thecustomers’demands.

Tie up With Various Corporate: Multiplex has tie-upwith many corporate associates as they help eachother in their day to day activities. Both of thesego hand in hand. Their relationship is of “give &take” type; it is like the corporates organize orhost the events that are conducted in the multiplex& in turn the multiplex gives it sales indirectly.

Movie Shootings & Advertisements: Multiplex alsoallows shootings for movies & advertisements as ithelps to publicize & create a brand name for itself.Movie shootings advertisements take place herebecause of the ambient factors & also space thesurrounding. Also it acts as a business activity asthe movie makers are not given the premises free ofcost.

Special Screening of Hollywood Movies: A new conceptstarted by many multiplex is the screening ofHollywood movies at their theatres. These specialscreenings are referred as “Midnight Matinees”.Midnight Matinees is another innovative attempt on

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the part of multiplex to combine various elements ofleisure & partying with cinema viewing.

MULTIPLEX V/S SINGLE SCREENS IN INDIA

A lotof such cinema halls / theaters were set upover 30-50 years back, largely by local entrepreneurs and businessmen. A combination of highly fragmented ownership, high entertainment tax rates, large cost of setting up new theaters, and unavailability of organized funding has resultedin many suchtheaters notbeing able to continuously upgrade or renovate their facilities, thus resulting in a decline in the quality of such theaters.

However over the last 5-7 years, factors such as strong economic growth, falling interest rates, increased interest in real estate development, increased consumption levels, etc. have resulted in a large boom in the Organized Retail sector in India.A number of large organized retail outlets have been trying to attract large footfalls by building in attractive properties suchas branded food & apparel outlets as well as theater chains. In fact, movie theaters – especially the new format multiplexes which provide high quality viewing experience – are fast expanding in numbers with newly added attractions and stores offering various products and services.

Demands of Single screen theatre Owners

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Entertainment Tax reduction. Hike in service charge. Exit policy (The business could not wind up). Electricity at concessional rates. Abolition of show tax imposed by municipal bodies. De-linking of Property Tax from box-office collections. Exemption on taxes for film hoardings in theatre

premises.

With multiplex industry’s soaring business and ominous presence, can the single screen cinema halls sustain its business, is the biggest buzz. Single screen theatres and talkies in the city are a passé now. They are inconspicuously disappearing into oblivion in the wake of rampant multiplex culture. Besides the government ordinance which ensures a complete entertainment tax waiver and concessions to multiplexes, the populace audience also has deserted the single screens. The nature of multiplex entertainment, which offers video arcades, bowling alleys andpool parlors spiced up with their lavish and multi-cuisine food courts, does ensure that the audience is lured towards its glitterati.

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Graph 12: Digital screens state wise

FAREWELL, SINGLE SCREEN So what if multiplexes constitute just 1% of the total number ofcinema halls, and 4-5% of the 12,900 screens, in India, theindustry is talking about the end of single screens.Single screens, with their low quality ambience, would find ittough to survive in the long run, it is felt. But over a periodof time, theatres will die a natural death. This is because thereisa rising demand forquality cinema exhibition infrastructure.Also, before long, digitization will be the industry standard andexhibitors will have to shift to it.Though the propensity towatch movies in India is high, there is a big gap interms of quality- viewing experience between the metros and thesmaller cities. Now, increasing property prices is a bigconcern, of course. But most multiplex owners have tied upproperties for at least the next couple of years. Also, being theanchor tenants in a mall, they are always offered special ratesby developers.It's the same for other top players as well. One ofthe key focus areas is also expansion to smaller towns, withpopulations of up to five lakh (500,000). Property prices inthese places have been comparatively stable, which makes thesecities more attractive. So, at least on the surface, there'snothing much to stop the multiplex boom. The coming of age ofdirect-to-home services like movie-on-demand and live gaming areunlikely to make the millions of fans across a country offanatic fans resist the first day-first show temptation ofBollywood.

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SEGMENTATION, TARGETING AND POSITIONING

Segmentation Geographic segmentation:

Region: South India includes Chennai, Bangalore, Tamil Nadu, Karnataka etc. West India includes Mumbai, Gujarat, Maharashtra, Goa, Rajasthan etc., North India includes Punjab, Delhi, MP, UP, Bihar, Haryana etc., and East India includes Kolkata, West Bengal. City: class 1, class 2, metros. Population: population over 20000. Over50000, over 100000 etc.

Demographic segmentation

Age: Current Population: 1 billion+ (1,080,264,388) growing between1.4% to 1.8% annually. Age structure: 0-14 years: 31.2%, 15-64 years: 63.9%, 65 years and over: 4.9%. Median age: 24.66 years . A younger population tends to have higher aspirations, and will spend more as it enters the earning phase.

Segmentation factors

Urban consumer’s shopping basket is changing:Withinthe overall private final consumption expenditurethere are category shifts happening in urban

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consumption pattern. A study by KSA Technopak, Indiashows that urban consumers have increased theirexpenditure on leisure & entertainment. Spends oneating out, movies and theater, and books and musichas increased the most. At the same time urbanconsumers’ saving and investment has reduced from14% to 5.2 %.

Increase in Disposal Income :Multiplexes generallycater to high and Middle income Groups, withan increase in the number of householdswithin this earning group, will result tohigher consumption and spending patterns.Similarly migration of households from lower incometo middle income levels will further drive theconsumption patterns. Urban consumers haveincreased their expenditure on leisure &entertainment. Simultaneously spends on eating out,movies and theater, and books and music willincrease.

Changing Demographic profile: India is witnessing asignificant change in the age profile of its’ over1bn population, which is likely to lead toaccelerated consumption over the next few years.India has a median age of 24 years for itspopulation against 36 years for the USA and 30 yearsfor China. A younger population tends to havehigher aspirations, and will spend more as itenters the earning phase. The owners mostly dividethe films as per the category of films i.e. theymostly show the movies which are more successfulin screens like animation movies at morning showsonly. After that they show all family type moviesor adult movies at night.

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TargetingCompanies now are mostly targeting teenagers i.e. collegegoing students, which are capturing hearts of all who liketo watch movies in theatres. They keep cheap pricefor tickets during the morning shows and theprice is increasing as time in a day passes. This usuallyattracts the youngsters and people who work at nightshift. The different schemes are framed to increase thesales on Tuesday to Thursday where the sales goes down. Therates of ticket high for new release and when there areany hit movies running on Saturday and Sunday.

PositioningCinemas have acquired a very good position in the viewer’smind. It usually attracts all the age groups as theyprovide good services. Cinemas are located at many placesbut the public is more attracted towards Mall. Within ashort period of time they have attained goodwill in themarket.

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SERVICE MARKETING MIX

ProductThis takes the customer-benefit concept and translates themin order to determine the aim and intention of theorganization. It is based of idea that actual serviceoffered could be divided in to no. of levels which relatesto customer’s need, satisfaction and benefit.

Core service benefit level: The Core Competency hereis Screening of Movies. This provides platform forthe development of other peripheral levels.

Expected service level: The minimum set ofexpectations customer has about service and whichmarketer must strive to provide are cinema hall,Box – office, Food & Beverage counter, Properlighting facility etc.

Augmented level: It includes fundamental service andbenefits that distinguish from competitors. Theaugmented services are enormous like theShopping arcade and other entertainment avenuessuch as Game parlor, DJ party hall, Bowling,Cafeteria, Ice skating etc. Good options for foodlike the Cafeteria where you get food made inhygienic conditions.

PriceThis is only element of the marketing mix which generatesrevenue. It must correspond to the customer’s perception of

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value. Uses differential or flexible pricing for segmentedcustomer. Factors affecting pricing classified as:

Internal factor which are controllable: Organization, other marketing mix elements, positioning, Fixed and variable costs.

External which are uncontrollable: Competition, Demand, Regulatory factors and unregulated factors.

Characteristics of service such as Intangibility,perishability, variability affects. The average between Rs.70 & Rs 250 depending upon the box office performance of themovies screened and the show time & day. The rates ofmorning shows are quite cheap and affordable and as the daytime pass the rates are likely to be increased to targetdifferent patrons.

Place The production place and distribution place is inseparable.The distribution means provision of personal service andinformation to the customer which adds value. The 2important aspects which must be taken care of:

Availability of service at right time and right place.

Should be accessible with care and convenience by customers.

To select location the determining factors are targetmarketplace, sales, interaction, customer needs andwants, infrastructure facility, competitorsoperation place, flexibility to accommodate future needsetc. The exhibition companies are targeting urban as well

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as rural parts of country. Franchising can help toincrease the sales. The multiplex has its outlet in popularmalls only.

PromotionIt helps in encouraging sales and creating awareness amongsegmented group. Continuity in communication,tangibility to service, through internal employeebehavior the promotion can be done. Apart from Advertisingin (radio, print media), sales promotions (Contest,games, premium gifts, coupons), personal selling (Inboundcall center, frontline employee), public relations(Sponsorship of event, inter college festivals, events,press release, social and community involvement),publicity, Word of mouth (reference throughcelebrities), Website etc. Marketers may support In-Theatreadvertising and promotions with standees, Backlit Displayboards, Floor Graphics etc. Popcorn Bag Sponsorship,Product Sampling and Coupon Distribution. Provision ofschemes to target non-peak period in a day or week withvarious schemes like Buy 1 Get 1 Free , variable rate ofdiscount on other days (Monday, Wednesday,Thursday).Corporate bookings, group bookings , Discount ofpopcorn and cold drinks. Membership card to provide betterservice to regular customer, Competitions, quiz, game show,Product launches Product displays and on-the-floor contests

PeopleThe interpersonal relationship between multiplex(Website, box office person, security & bag checker,Ticket checker, person at food & beverages counter,cleaners, call center people, home delivery person, onlineperson etc.) Andcustomer plays very important role in

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customer satisfaction. This people are known as internalcustomer. The service quality is being judge by thecustomer on the behavior of the internal customer suchas Reliability, Responsiveness, assurance, empathy,tangibility. The multiplex owners must empower theemployee along with promoting teamwork, training anddevelopment etc. Behavior in a friendly manner and alwaysready to help. Well dress especially in their uniform. Thebest employee can create loyal customers; achievesustainable growth, profit increases.

ProcessDesigning of process includes Location facility, design andlayout for effectiveness in workflow and to the customerconvenience, procedure and job definition, degree ofcustomer contact, customer participation, equipmentselection, adequate capacity and quality measures. Managingqueues so that available space can be utilized. The moviemust be available to patrons customer) at their accordingtime. The availability of service with a consistentquality should be the basic objective. Try level best toprovide interactive experience to patrons .

Physical EvidenceThis is the tangible clues for the service which interactswith the customers. This includes seating facility whichinferences comfort, layout, availability; facilityinferences payphones, toilets, children amusement,atmosphere inference friendly, cold, indifferent;accessibility inferences location of entrance, carparking; service delivery inference efficient, prompt;overall appearance inference cleanliness, décor, lighting,attractiveness. Ambience includes temperature,

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lighting, noise, music, scent, color. Space feltcomfort, accessibility, visibility. The directions aredisplayed regarding basic necessary things in specificplaces like screen, toilet, food counter, box-office,drinking water etc. They are providing to customer withdifferent facilities like centralized air-condition,comfortable seats etc. which create good ambience.Furniture, layout, color of interiors, tickets, luxury &comfort.

BASIC FUNCTIONAL AREAS

Design layout:Traditionally a movie theater, like a stage theater,consists of a single auditorium with rows of comfortableseats, as well as a lobby area containing a box office forbuying tickets, a counter and/or self-service facilitiesfor buying snacks and drinks, and washrooms. These Stagetheaters are converted into movie theatres by placing ascreen in front of the stage and adding a projector. Many

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of these early theatres contain a balcony, an elevatedplatform above the theater's rearmost seats. Therearward main floor "loge" seats were sometimes larger,softer, and more widely spaced and sold for a higher price.Rows of seats are divided by one or more aisles so thatthere are seldom more than 20 seats in a row. This allowseasier access to seating, as the space between rows is verynarrow. Depending on the angle of rake of the seats, theaisles have steps. In older theaters, aisle lights wereoften built into the end seats of each row to help patronsfind their way in the dark. Step in the aisles may beoutlined with small lights to prevent patrons from trippingin the darkened theater.

Pricing and admission:In order to obtain admission to a movie theater, theprospective theatergoers must usually purchase a ticket,which may be for an arbitrary seat ("open" or "free"seating, first-come, first-served) or for a specific one.In the case of free seats, already seated customers may beforced by staff to move one or more places for thebenefit of an arriving couple or group wanting to sittogether. The price of a ticket may be discounted duringoff-peak times e.g. for matinées, and higher at busy times,typically evenings and/or weekends. It is traditional tooffer the lower prices for Tuesday for all showings , one ofthe slowest days of the week in the movie theatre business,which has led to the nickname "cheap Tuesday." Almost allmovie theaters employ economic price discrimination:tickets for youth, students, and seniors are typicallycheaper.

Movie theater culture:

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Movie theaters are associated with dating, popcorn andexpensive treats. It is rather common that people throw andleave their garbage on the floor in a movie theater, asopposed to the cultural standard of cleaning up afteroneself.

Lobby, food and drinks:Movie theaters usually sell various snack foodsand drinks on concession stands. The facilities forbuying snacks and drinks often represent the theater'sprimary source of profit since most of the ticket revenuegoes to the film distributor (and onward to the moviestudio).

Luxury Screens:Cinemas in city centers are increasinglyoffering luxury seating with services likecomplimentary refills of soft drinks and popcorn, recliningleather seats and service bells.

Seating:Patron has a ticket for a specific seat. The seat can alsobe selected by the patron. The seating arrangements aredivided as per the facility provided by the exhibitorkeeping all segmented target audience. The price for plushback or couple seat is higher than other seats.

Presentation:

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A modern theatre presents shorts commercial advertising,then movie trailers, and then the feature film. Advertisedstart times are usually for the entire program orsession, not the feature itself. Thus people who want toavoid commercials might want to enter later, and those whowant to avoid the trailers, again later. Some movie theatershave some kind of break during the presentation. There mayalso be a break between the introductory material and thefeature, usually limited to special circumstances involvingextremely long movies. During the closing credits manypeople leave, some stay till the end. Usually the lightsare switched on after the credits, sometimes already duringthem. Some films show additional scenes while the creditsare rolling. In multiplexes, theater chains often feature acontinuous PowerPoint-like presentation of slides betweenshowings featuring a loop of movie trivia, promotionalmaterial for the theater chains or advertising for localand national businesses.

Digital cinema:Digital cinema refers to the use of digitaltechnology to distribute and project motionpictures. The final movie can be distributed via harddrives, DVDs or satellite and projected using a digitalprojector instead of a conventional film projector.Digital cinema is distinct from high-definitiontelevision .

Age restrictions:Admission to a movie may also be restricted by a motionpicture rating system. According to such systems, childrenor teenagers below a certain age may be forbidden access totheaters showing certain movies, or only admitted when

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accompanied by a parent or other adult. Furthermore,where movie theaters do not have this legalobligation, they may enforce restrictions on their own.Accordingly, a movie theater may either not be allowed toprogram an unrated film, or voluntarily refrain from that.

Ticket check; movie hopping:The theaters are arranged in such a way that tickets arechecked at the entrance into the entire plaza, rather thanbefore each theater. At a theater with a sold-out showthere is often an additional ticket check, to make sure thateverybody with a ticket for that show can find a seat.

Anti-Piracy:Piracy occurs when unauthorized copies are made ofmusic, movies and similar works. Initially,unauthorized recordings were made using hand-heldvideo cameras to surreptitiously record movies shownat movie theaters. Most found guilty face a fine ofvarying degrees, although in some cases a jail sentence canbe imposed. This is most likely to occur only for peoplemanufacturing large quantities of unauthorized CDs/DVDs.

Revenue or Accounting system:The distributor drive hard bargains entitling cinemas to as much as 55% of the gross ticket revenue during the first week and the balance changes in 10% increments per week from there.

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Risks and Concerns Slowdown in content supply:

As multiplexes are the consumers of content, they have nocontrol over the supply quality and quantity. Multiplexesthrive on rising footfalls which in turn depend on thebetter supply of films from producers. Hence, anydisruption on the supply side will definitely have anegative impact on the multiplex players' growth.

Alternative entertainment avenues:Movies compete for customer attention with otherforms of entertainment viz. DVDs, TV, cricket, festivalsetc. An increased acceptability of these avenues willdivert footfalls away from multiplexes. However, it isbelieved that there is enough room for all to exist andgrow simultaneously. A case in point is US, where almostall forms of entertainment are present and have been wellreceived by the consumers. Even then, footfall growthhasn't halted over there. Moreover, there might bepossible synergies among these formats which mightbenefit multiplexes.

Mall development delaysSupply of quality real estate has been a problem in thepast for multiplex players. Mall delays due to variousreasons will hurt expansion plans of the companies. Weare building in a 50% delay in mall handovers to the

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multiplexes in our analysis. Any delay more than thiswill hurt future growth of multiplexes.

Uncertainty over entertainment tax:Entertainment tax in India is among the highest inthe world leading to a much higher occupancylevels required for breakeven of multiplexes. Eventhough state governments have announced tax free windowsfor these players, uncertainty looms over the viabilityof multiplexes after the window expires. We believe thatthe levels entertainment tax will come down in thefuture, otherwise any increase will be passed on to theconsumer to a large extent like it is done at present.

Worsening economic environment:The whole footfall growth story depends on risingprosperity in the country leading to higher discretionaryconsumer spends. If the economic environment startsworsening for a prolonged period, it will affectpatronage levels negatively pulling down top linegrowths. This are assuming very low CAGRs at the topline levels for all of the players and are quiteoptimistic that multiplexes will grow as expected.

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Table 8 : Challenges

THE ROAD AHEADThe industry is excited about the opportunities for the multiplexgrowth in the tier II and tier III cities (smallercities and towns). But the nature and profile ofthe multiplexes are different from those that exit inthe metros. They tend to have less number of screens permultiplex and the price of tickets is usually Rs.70-80.All overthe country the multiplex industry seems to be basing its growthon the mall format. The logic of this format seems to be to takeadvantage of the upper middle classes desire for shopping,entertainment and other leisure related aspects in ambienceand ‘clean’ surroundings. The multiplex industry is quiteconcentrated in nature. It is dominated by about five companieswhich, between them own about 90 per cent of the screens in themultiplex sector.

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The multiplex industry is presently dominated by PVRLimited, Inox Leisure Limited, Cinemax India, Frame, Adlabs,Shingar Cinemas and E-City Ventures (owned by Zee Group). Thenew entrants who have announced plans to enter the segmentinclude the DLF group (under DT Cinemas brand),Indiabulls and Reliance Retail (Mukesh Ambani group). Themultiplex industry hopes to expand in the Southernpart of India. The cumulative investments that are expectedin the next two year in south India are expected to be aboutRs.850 crores for around 380 multiplexes. These multiplexes arein various stages of development. Industry participants haveestimated that 125 south Indian towns have a potential forabout 1000 multiplex screens.

Pyramid Saimira plans to establish about 200,000 seats atan investment of about Rs.600 crores. The finishing costper multiplex seat for the company is estimated to cost betweenRs.30,000 to Rs.40,000. Shingar Cinemas plans to increase thenumber of multiplexes under its ‘Fame’ brand. It intends toinvest Rs. 75 crores on six multiplexes inVijayawada, Visakhapatnam, Chennai and Hyderabad. Their costper seat is about Rs.50,000 to Rs.80,000. Cinemax intends toestablish13 multiplexes by 2010 at an estimated cost of Rs.100crores. PVR plans to establish 60 screens in South India. Adlabsrecently announced plans to operate cinema halls across USA. Itclaimed to have entered into agreements to operate 200 screencinema exhibition chains across 28 cities in USA. Adlabs andits parent, Reliance Entertainment Limited seems to beworking on business logic that size and presence in all segmentsof the entertainment business matters most. It has announced itsdecision to enter the ‘multi-sensory’ cinema experience toaudiences in India through a tie- up with Cinema Park Network,USA. This company had helped set up the Millennium Pavilion inDisney World, Orlando, USA and will upgrade some of the AdlabsCinemas.

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REVIEW OF LITERATURE

Impact of multiplexes

Author – Vishnu ParasharObjective – To study impact of multiplexes on the society

He has explained the growth drivers in the multiplexindustry and also the major players present right now . Hehas also discussed the risks and concerns associated withmultiplex business . He has also given an outline of thecosts and business models followed by multiplexes .

Working of multiplexes

Author- MrunmayeeBhave Objective – to understand working of multiplex

She has explained Emergence of Multiplexes in India ,FilmExhibition Business in India and the Multiplex Boom . Shehas also compared Multiplex v/s Single Screen theaters andgiven framework of Segmentation, Targeting and Positioning

Customer preference and customer satisfactionsurvey of multiplexes in Lucknow

Author - Shalini Singh SachinAwasthiObjective - Customer preference and customer satisfaction survey of multiplexes in Lucknow

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They have given outlines to PEST Analysis ,Service MarketingMix , Service Marketing Triangle for a multiplex . Their Basic Functional Areas , Risks and Concerns and questionnaire design have also been explained in detail

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CHAPTER-3

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SUBJECTCustomer’s Preference and Customer Satisfaction for theMultiplexes in Vadodara.

PLACEThe Survey is been done on the 4 Multiplexes In Vadodara• Fame (7 seas)• Chandan• PVR • INOX

DURATIONThe Survey was done from March 31 to April 5, 2012

DATA COLLECTIONThe views of the respondents were ascertained by means of aquestionnaire. As far as possible, persons with different agegroups , occupations and educational backgrounds were selected asa sample but the majority of the respondents are youth whoconstitute 93% of the total sample due to the nature of theindustry. I approached 150 people as a sample and thequestionnaire was filled by them.

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MARKETING RESEARCH PROCESS

Defining the problemThe problem area for me is the perception and preference ofdifferent customer segment for different multiplexes andtheir services. To identify their weak point and to work onthem for the mutual benefit of both the multiplexes and thecustomer is the major use of the marketing research. Thedecision problem faced by management must be translated intoa market research problem in the form of questions.

Determine research design

The research design adopted by me was the CAUSAL DESIGN.Causal research seeks to find cause and effect relationshipsbetween variables. It accomplishes this goal throughlaboratory and field experiments.

Identify data types and sources

Secondary data may be obtained from the internet , multiplexwebsite , survey reports.

Primary data can be obtained by filling up questionnairesfrom the common public.

Design data forms and questionnaires

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The questionnaire is an important tool for gathering primarydata. Poorly constructed questions can result in largeerrors and invalidate the research data, so significanteffort should be put into the questionnaires design. Thequestionnaire should be tested thoroughly prior toconducting the survey.

Determine sample plan and sizeThe minimum sample size on which the survey was to beconducted was 25 .For my project I asked 31 people whovisited the various multiplexes in Vadodara between March 31to April 5, 2012 to fill up the questionnaires.

Data collection

Data is collected both from primary source as well assecondary source.

The primary source data was obtained by respondents fillingthe questionnaires themselves .

The secondary data was obtained from the respectivemultiplex's website and internet portals.

Data analysis

Before analysis can be performed, raw data must betransformed into the right format.

The data is tabulated to count the number of samples fallinginto various categories.

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90

CHAPTER-4

RESEARCH FINDINGS1. Age:-

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age

Below 18 years19-30 years31-50 years51 years & above

Graph 13 : Age

2. Gender:-

gender

malefemale

Graph 14: Gender

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3. Occupation:-

Occupation

studentservicebusinesshousewife

Graph 15 : Occupation

Student of schools and colleges visit multiplexes more often thanothers . A major shift towards multiplexes from single screen theatres can be seen here for watching movies .

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4. Please rank the reasons for your choice ( 5 being most important , 1 being least )

a. Better sound and picture quality b. Comfort

c. Value for moneyd. Status symbole. Ticket prices

reasons for choice 1 Quality

most importantvery importantimportantless importantleast important

Graph 16 : Quality

Quality of picture and sound and the comfort offered were the top most reasons for watching a movie in a multiplex.

reason for choice 2 comfort

most importantvery importantimportantless importantleast important

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Graph 17: Comfort

reason for choice 3 value of money

most importantvery importantimportantless importantleast important

Graph 18: Value for money

reason for choice 4 status

most importantvery importantimportantless importantleast important

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Graph 19: Status symbol

Status symbol is less important for consumers of multiplex

reason for choice 5 Ticket price

most importantvery importantimportantless importantleast important

Graph 20: Ticket price

Ticket price is least important element for customers.

6. How often do you visit a Multiplex? (Choose Any 1Option)

a. Weekly b. Twice a monthc. Monthlyd. Twice a yeare. Yearly

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weekly Twice a month

Monthly twice a year

yearly0

2

4

6

8

10

12

14frequently visit multiplexes

frequently visit multiplexes

Graph 21 : Frequency

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7. What is your monthly expenditure on movies ? (Choose Any 1Option)

a. < 100 b. 100 – 300c. 300 – 500d. 500 – 700e. 700 – 1000f. > 1000

< 100 100-300 300-700 700-1000

>10000

2

4

6

8

10

12

14expenditure on movies

expenditure on movies

Graph 22: Monthly expenditure

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8. Rank the multiplexes in descending order (4 being favorite , 1 being least )

Characteristic Chandan Fame Inox PVRI. Picture and

sound Quality

II. Seat comfort

III. Air conditioning

IV. Food and refreshments

V. Washroom facility

VI. Drinking waterfacility

VII. Staff behavior

VIII. Gaming zone

IX. Ticket bookingfacilities

X. Shopping experience

XI. Security

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arrangement

XII. Parking facility

XIII. Value for money

XIV. Overall Ambience

Results ( No. of people who consider the best multiplex in each characteristic )

Characteristic Chandan Fame Inox PVRI. Picture and

sound quality2 8 18 2

II. Seat comfort 6 8 14 3

III. Air conditioning

6 11 12 2

IV. Food and refreshments

6 10 12 3

V. Washroom facility

4 8 16 3

VI. Drinking water facility

8 10 11 2

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VII. Staff behavior 6 8 13 4

VIII. Gaming zone 6 11 13 1

IX. Ticket booking facilities

6 13 10 2

X. Shopping experience

4 5 18 5

XI. Security arrangement

4 10 14 3

XII. Parking facility

5 8 15 2

XIII. Value for money 5 8 16 2

XIV. Overall Ambience

2 10 18 5

Table 9 : Attributes

9. Which is your most preferred Multiplex in Vadodara? (ChooseAny 1 Option)

Chandan Fame Inox PVR

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Chandan Fame Inox PVR0

5

10

15

20

Prefered Multiplex

Prefered Multiplex

Graph 23:- preferred Multiplex

10. Your suggestions (Choose Any 1 Option for each attribute)

Attribute StronglyAgree

Agree Don’tKnow

Disagree

StronglyDisagree

Reduction inticket pricesMore offersand discountsTicket bookingconvenienceReduction inprices of

refreshments

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suggesting reduction in price

strongly agreeagreedon't knowDisagreeagree

Graph 24 :- Suggesting on reduction in ticket price

suggesting more offers and discount

strongly agreeagreedon't knowdisagreestrongly disagree

Graph 25:- suggesting on more offers and discount

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suggesting on ticket booking convience

strongly agreeagreedon't knowdisagreestrongly disagree

Graph 26:- suggesting on ticket booking convience

suggesting on reduction in prices of refreshments

Strongly agreeAgreeDon't knowDisagreeStrongly disagree

Graph 27:- suggesting on reduction in prices of refreshments

A lesser ticket price is what is most demanded by the customers interviewed as they feel agree. Besides that very highly priced food and beverages are a headache for the customers

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11. Which is the Multiplex which has given you highest overall satisfaction?

Chandan Fame Inox PVR

Multiplex which has given you highest overall satisfaction

ChandanFameInoxPVR

Graph 28:- highest overall satisfaction

12. The reasons for your choice (Choose Any 1 Option for each attribute)

Attribute HighlySatisfie

d

Satisfied

Neutral Dissatisfied

HighlyDissatisfi

edOverall

Entertainment

Physicalfacilities

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Serviceprovided by

staff

attribute on overall entertainment

Higest satistactionsatisfactionneutraldissatisfactionHighest dissatisfaction

Graph 29:- attribute on overall entertainment

attribute on physical facalities

Higest satistactionsatisfactionneutraldissatisfactionHighest dissatisfaction

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Graph 30:- attribute on physical facalities

attribute on service provided by staff

Higest satistactionsatisfactionneutraldissatisfactionHighest dissatisfaction

Graph 31:- attribute on service provided by staff

Overall entertainment was the biggest factor in deciding about the multiplex giving satisfaction as customers want a full movie experience that is best in every way. Personal touch through behavior of staff was also important in shaping the outlook of the customer towards the multiplex.

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13. Do you think there is a need for a Drive – In theatre in Vadodara?( Choose Any 1 Option )

StronglyAgree

Agree Don’t Know Disagree StronglyDisagree

need for a Drive- In theatre

Higest satistactionsatisfactiondon't knowdissatisfactionHighest dissatisfaction

Graph 32:- need for a Drive- In theatre

14. Do you think single screen theatres have come to their end ? (Choose Any 1 Option )

Strongly Agree Don’t Know Disagree Strongly

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Agree Disagree

single screening theatre has come to their end

Higest satistactionsatisfactiondon't knowdissatisfactionHighest dissatisfaction

Graph 33:- single screening theatre has come to their end

15. Do multiplexes have a bright future in India ? ( Choose Any 1Option )

StronglyAgree

Agree Don’t Know Disagree StronglyDisagree

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bright future of multiplex in India

Higest satistactionsatisfactionneutraldissatisfactionHighest dissatisfaction

Graph 34:- bright future of multiplex in India

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CHAPTER-5

THE WINNER OF“WAR OF MULTIPLEX”

IN VADODARA

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INOX EVOLUTIONINOX was set up to carry out the business of setting up,operating and managing a national chain of world classmultiplexes under the brand name ‘INOX’.It opened its firstmultiplex, the Pune Multiplex in May 10, 2002 and today has awide presence across 7 cities with 8Operational Units having 32screens and around 9,290 seats.

Year Milestone112

1999 Incorporated2002 Launched multiplex at Pune Bund Garden

and Vadodara with 4 screens each2003 Launched multiplex at Kolkata, Elgin

Road with 4 screens2004 Launched multiplex at Kolkata Salt Lake

with 4 screensLaunched multiplex at Goa, Panaji with 4 screens (hosted the International Film Festival of India)Launched multiplex at Nariman Point, with5 screens

2005 Launched multiplex at Bangalore with 5 screensLaunched multiplex at Jaipur with 2 screensEntered the Distribution businessWon the Best Entertainment Retailer of the Year Award, 2005, at the ICICI Bank Retail ExcellenceAwards

Table 10 : Evolution of Inox

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VADODARA MULTIPLEX

This 4 screen, 1318 seater multiplex is located at Race CourseCircle, which is amongstthe most premium localities part of the city, being located inthe midst of affluent residentialarea, and less than akilometer from the commercial districts of R.C. Dutt RoadandAlkapuri. In addition to the multiplex there is a malllobby on the ground floorfor other retail development, whichhas been leased out to tenants like McDonalds,Pantaloons andCafé Coffee Day, Weekender, Baskin & Robbins and others. Thismultiplexwas also designed by TK Architects, and fitted withstate-of-the-art cinema equipment.The multiplex also hasparking facilities which is another 30,000 square feet inarea. This is anentertainment hotspot for the premium class .

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SWOT ANALYSIS

Strengths

Amongst the best locations in the city Financial strengths for acquisition and development

ofproperties Early mover advantage – Amongst the first corporates Professionally managed organization Have been instrumental in playing a key role in shaping

industry related policies.

Weaknesses

Dearth of managerial talent with related businessexperience

Promoter not related to exhibition business

Opportunities

Acquisition opportunities of single multiplexes/smallerchains in the consolidation phase of the industry

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A shift in business model to the more efficient management contract

Opportunities in international markets

Threats

Increased competition from organized and unorganizedplayers

Alternative entertainment formats and technologies ofadmission to the cinema. According to the Gujarat Rules,the tickets shall be sold only at booking office(s) asapproved by the licensing authority and specified in thelicense.

Table 11 : Existing Facilities

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Table 11 : Upcoming Facilities

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Graph 35 : Competitive advantage

COMPETITIVE ADVANTAGE118

Research backed investmentThey carry out in-depth research comprising of populationsegments, income patterns, spending habits, preferences andalternatives of consumers, as well as regulatory frameworkbefore selecting the cities where they wish to set up amultiplex.

The early mover advantagePresently, the players in the multiplex industry are largelyregional. They would be amongst the few players toconceptualizeand implement a business plan of establishing anational chain of world class multiplexes. This gives thecompany the advantage to lock properties in what they considerto be the best catchment areas of various cities which maymake it difficult for future competition to enter in thoseareas.

LocationLocation is as critical as content for the success of amultiplex business. While selection of right content helps inreaching out to the right target, selection of right locationresults in attracting higher footfalls. All the multiplexeswould be located in high traffic commercial business districtsor in the midst of affluent residential areas of each town /city of operation, which would provide them with a competitiveadvantage.

Economies of being a national chainControlling a chain of multiplexes across the country, givesan edge over local competition in accessing content – bothinterms of quality of content as well as terms of agreementbetween the content provider and the exhibitor, as well as

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provided them with some economies of scale due to betternegotiating leverage and sharing of come common costs.

Brand creationThey have created brand equity through all their multiplexes,after their launch. Further, they are increasingly beingrecognized inthe industry as a committed long term player. Allthe projects represent quality benchmarks in the industry.

Reputed PromoterThey are promoted by GFL, which has experience inmanufacturing and exports of refrigerants . GFL has anexcellent reputation and track record with banks, financialinstitutions and investors and is known to conform totransparent corporate governance practices. GFL, being alisted company, has initiated measures for compliance withcorporate governance, and is in compliance with all therequirements of corporate governance.

Work with the bestThey have identified and used the best talent in the industry,from concept architects, interior designers, projectmanagementcompanies, engineering consultants, etc., as alsothe best equipment available internationally, to put togetherstate-of-the-artmultiplexes.

Proven project management skillsThey have an in-house professional team for projectimplementation supported by Feedback Strategic ConsultancyServices Private Limited. This model of implementing projectshas enabled them to complete properties within budgets andtime.

Marketing strength120

The brand ‘INOX’ has been established in the consumers minddue to marketing through newspaper ads, radio spots, directmailers, internet mailers and the use of promotions like paidpreviews, contests, movies merchandise, Disc Jockeyin thelobby over the weekend etc. Premieres of films are also usedas an important marketing tool.

Customer Orientation‘INOX’ has built a clear focus on customer orientation, byproviding services such as, tele-bookings, home delivery oftickets, internet and SMS bookings.

Integrated Technology BackboneThey have a laid a lot of emphasis on a technology andsystems. INOX has a strong MIS system, on the backbone of atechnically sturdy software system, which providesthem withregularly updated performance reports on all Operating Units.This assists them in day to day operations. They use softwarefor the following:

Ticket Sales; Concessions; Telesales/home delivery; Reports; Analysis; Accounts.

INOX has installed a specialized management exhibitionsoftware called Showbiz Multiplex at all Operating Units. Theyhave invested in IT Infrastructure to connect all units withCorporate Office.

STRATEGY : Establish a national presence

To identify prime locations for multiplexes and primarylook at ‘City Centre Locations’. These would typically be

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multiplexes in premium residential or commercial areas inthe cities where they operate, in pursuit of high trafficor high spending centers.

Expand into newer territories in the country in line withgoal to create India’s largest network of world classmultiplex exhibition facilities across all the leadingtowns and cities of India.

Identify acquisition opportunities which could beoperating multiplexes/multiplex chains.

Building a strong brand Emphasis on “Live The Movie”, experience which largely

associates itself with superior customer service,immaculate upkeep of facilities, ensuring highest levelsof fire and life safety etc.

Explore opportunities for tie ups with various othersuitable partners like mall developers or key retailbrands so as to form powerful alliance relationships thatwill enable them to stay ahead of competition.

Focus on a profitable growth Increasing number of patrons:The thrust on the increasing

number of patrons is through a ‘pull’ – innovativeprogramming and ‘push’.

Innovative Programming: In addition to the traditional12-3-6-9 format, they have introduced various innovativeprogramming slots. Block Bookings : These are tie upswith various corporates for their employee entertainmentor client promotion schemes say banks for theircustomers, special shows for employees.

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Flexi Timings and Variable pricing : They offerdifferent ticket rates depending on the timing of theshow, day as well as seating arrangement which istypically classified as Gold and Premium. They also havethe flexibility of timing the show which could begin atintervals of half an hour to one hour for various screensgiving the patron convenience of watching a showoff theirchoice . The flexible ticket pricing approach helpsoptimize no. of patrons and spending per head.

Increasing F&B Revenues

Having a good mix of F&B items available and upgradingthe menu periodically;

Display of F&B and a good and attractive picture filledmenu board;

Make food combos for sale enhancement;

Offer food combos at block bookings.

AdvertisingAdvertisements for movies are done in the entertainmentsection of the prime newspapers of the city. Inox –“Live TheMovie” experience is also emphasized for brand buildingperspective. For megamovies, the dresscodeof the employees atrefuel counter and ushers are at times changed to bear moviepromos and movie special prints are made on popcorn boxes,stalls at lobby etc.

Controlling Cost

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A special emphasis is given on controlling costs at theOperating Units, without sacrificing on service deliveryorsafety. They have a tight budgetary control system formonitoring and controlling costs across all operating units.The same are also reviewed on a monthly basis by an AuditCommittee of the Board.

Set new standards in customer service

Aim is to give patrons a great experience. The first thingthey aim at is accessibility. They have initiated a ticket onphone service where tickets are delivered to customers uponphone booking. They have also initiated SMS bookings andinternet bookings. Ushers and employees at ticket counters andgates are trained on soft skills by professional organizationsto ensure standardization and high level of customer servicesatisfaction.

Increasing Customer Loyalty

Through soft skill training of staff, clean hygienic ambience,variety of F&B items available, accessibility throughphone,SMS, internet and ticket counters.

Value Added Services

SMS, internet bookings, telebooking and home delivery,Presence and accessibility of duty mangers. Highly cleanandhygienic environment and emphasis on fire and life safety .Also they partner with contest2win and mouthshut.com wheretheyspeak to two million customer base through their website.

KEY FUNCTIONAL AREAS124

ProgrammingProgramming is one of the most important departments in anyfilm exhibition business. The programming departmentisresponsible for the regular supply of films to all ourscreens. The main objective of the programming department isto source the right films for the right market (based onthorough analysis of the profile of the market), at the mostcompetitive terms, and screen the films in a manner and at theshow that enables maximization of revenues from each film.

Programming, or sourcing of content is a centralized function.However, decisions on programming are taken at the CorporateOffice based on inputs from heads of respective multiplexes,in respect of local factors including tastes and preferencesof the patrons in the areas where the cinemas are based.

OperationsThis department takes care of the day to day operations of themultiplex and ensures its complete compliance with the higheststandards service, comfort and safety. The keyresponsibilities of this department include ensuring thepatrons are provided with the highest standards of friendlyand proficient service, in an environment that provides a highdegree of comfort, pleasure, sanitation and hygiene, and withfully regard to all norms of safety against hazards of fire,etc. Each of the multiplex operates as an independentOperating Unit, headed by a General Manager. The teams in eachof our Operating Units report to the General Manager of theOperating Unit. The function of various departments in anOperating Unit can be broadly classified as under:

Box office and Tele-Sales: All the multiplexes provide asingle window service for sale of tickets with a totallycomputerized and networked environment through highly

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customized software, catering to multiple choice ofscreens and movies. Box office sales are supported by aTele-Sales team that not only provides the patrons theability to book tickets from comfort of their homes, butalso provide information for all movie related queries.Patrons also book tickets through the SMS and Internetroute

Concessions: The concession / candy / snack bar is calledRefuel. Refuel follows the station concept with multiplecounters offering all products, emphasizing speed,efficiency and courtesy of service. Refuel also featuresmodern touch-screen computer terminals, networked withour integrated box office software, thus reducingtransaction time and queuing. While popcorn and aeratedwaters (like colas) remain the focus of concessionstands, they have also been successful intaking cinemasnacks to a higher level, by offering pre-packed items,like sandwiches, samosas, puffs, etc. to encourageimpulse buying.

Ushering: This department handles the challenging task ofcoordinating the movement of patrons within the cinemaand in multiple auditoriums in the multiplex in anefficient and friendly way.

HR &Training: This department services the needs of theOperating Units for all matters relating to humanresource and training. One of the key strengths of theemployee is the high level of training where HRdepartment has been successful in setting an industrystandard.

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Projection and Engineering: This department isresponsible to ensure maximum uptime for all cinemaequipment, and a high quality, comfortable and safe movieviewing experience, by ensuring preventive and breakdownmaintenance of allequipments pertaining to projection,sound, air-conditioning, safety, etc.

Finance: This department ensures an accurate capturing ofrevenues, booking of costs, safeguarding of assets, andensuring proper controls and documentation for inhouseand statutory compliance.

Housekeeping: This department is directly responsible forthe hygiene, upkeep and maintenance of the multiplex.This department plays a key role in ensuring thatOperating Units are known for their superior upkeep andmaintenance. This department is outsourced.

The operations department is also responsible forimplementing standard operating procedures, ensuring thatpatrons get the same high quality of service andamenities across all Operating Units in India.

MarketingMarketing department is responsible for extending, formulatingand maintaining the position of the brand. In addition,themarketing department is the interface for patrons. Itorganizes promotions, events, campaigns and contests toattract patrons tothe multiplexes. It is also responsible forbranding alliances, and meeting advertising revenue

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targets.The department consists of a Vice President at theCorporate Office who is assisted by the marketing manager ofeach Operating Unit and a central team comprising of brandmanager, promotion manager and manager for alliances. A headof public relation (“PR”) handling corporate communicationsand PR of all Operating Units is also part of the team. Eachof the marketing managers in the Operating Units is assistedby a marketing executive and in some Operating Units also a PRexecutive. They get associated with known PR agencies toassist them in PR for launch of various properties. It helpsus in getting good mediamileage during the time of the launch.

The department’s goal is to present the brand as the finest inthe exhibition industry. Their slogan ‘Live the Movie’demonstrates thatthey are dedicated to provide a holisticentertainment experience to our patrons. Other medium toattract audiences to the multiplex are direct mailers,newspaper advertisements, internet, outdoors, radio andalliances with brands In addition the following marketingtools are used to create awareness amongst the patrons:

Loyalty Clubs

They identify premium and frequent customers throughfeedback forms and data generated from contest forms.This database has more than 25000 members across India.They are planning to start a loyalty program to rewardcustomers with certain privileges like invitations topremiers, special events etc.

Promotions

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The presence of tenants within the mall, with good brandvalue, enables them to conduct joint promotions with theother tenants and increase footfalls. They also do moviepromotions with specific big movies – Hollywood andBollywood, where they offer to the patrons various giftslike movie merchandise, invites to premier and tickets tothe movies. This is promoted in house and through thevarious FM radio channels.

We also house various festivals in different cities likePune International Film Festival, International FilmFestival of India in Goaand Asian Film Festival inMumbai.

Star Visits

The purpose of celebrity visits is to make the movieexperience memorable as the patrons interact with theirfavoritestars thereby attracting crowd and increase boxoffice collections. We have had Aamir Khan, John Abraham,Anil Kapoor, Esha Deol,Hema Malini, Pooja Bhatt, VikramBhatt, Vivek Oberoi, Kim Sharma, Jimmy Shergill andseveral other stars, visited our multiplexes. We also getcricketers/ famous sports personalities and other well-known personalities visiting our multiplexes.

BUSINESS MODEL Patrons’ Spends:A patron is a customer who visits the theatre. A patron spendson tickets, parking if applicable and F&B (together called

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average Spend per head). Our revenue from patrons is a directfunction of number of patrons and Spend per head.

Number of patronsIt is the number of patrons coming to the theatre. It’s aproduct of occupancy, number of seats available andnumber of shows. The following table and chart depict thegrowth in our quarterly number of patrons.

Average Ticket Price (ATP)ATP is defined as the gross ticket sales divided by thetotal tickets sold in a day. Over a period of time wehave been successful in steadily but moderatelyincreasing our ticket prices confirming that the patronis willing to pay a reasonable premium for a superiorworld class movie viewing experience.

Food & Beverages(F&B)We normally have a good mix of F&B to enhance our patronexperience and Spend per head. These are fast food innatureand having high margins.

Advertising:A multiplex offers advertisers a great opportunity to capturethe attention of more than 4000 patrons per day. Advertisingopportunities in a multiplex include on-screen advertising,posters inside the theatre, promotional stalls, etc. Some ofthe key advertisers who have used multiplexes for advertisingopportunities include Kingfisher, Airtel, Hutch, Maruti,Hyundai, etc. They also have allowed various entities to use apart of lobby space at times to give the patrons a ‘movieplus’ experience.This happens through sale of movie basedmerchandise. Such partners pay a fixed sum or percentage oftheir sales. Some ofthe partners who have worked with INOX -

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Yummy Tummy, Crazy Corn, Coca-Cola, Mamamia Icecream, Act II,etc.

Conducting FeeWherever the premise belongs to INOX and a larger mall has been developed, they lease out the retail space to various popular retail players such as Mc Donald, Pantaloon etc on a business conducting agreement. They receive Conducting Fee from such retail partners as our income. This is currently applicable to the Pune Multiplex and Vadodara Multiplex.

Management Fee:

F&B CostThis is the cost that they incur in sourcing various foodand beverages from vendors. This is usually a directfunction of our F&B revenues.

Entertainment TaxEntertainment tax represents the tax payable on the boxoffice collections. This usually is a key component ofcost, except in cases where the multiplex enjoys aconcessional tax regime due to a tax exemption policy.Many States have, in order to encourage the growth ofthis industry, announced an entertainment tax policy,which grants exemptions to multiplexes, subject tofulfillment of certain conditions .Most of the OperatingUnits currently enjoy an entertainment tax exemption.Such exemption, where available, directly adds toprofits.

Personnel costs

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Personnel cost includes salaries and other cost associatedwith employees and other recruits at each Operating Unit. Thisalso includes the cost of training required to deliver thehigh levels of service.

Operating costs

Property RentalsWhere are Operating Units are not owned, property rentalsare a key element of cost. Such rentals are typicallynegotiated with the property developer at a fairly earlystage of the property development. Typically, these arestructured as long term leases, where they pay a monthlyrental to the property developer. Usually, multiplex rentalsare lower than normal rentals for retail space, sincemultiplexes are considered to be “anchor tenants” due to thefootfalls that multiplexes attract to the retaildevelopment.

UtilitiesThe major cost here is the electricity cost used for runningair-conditioners, lighting, etc at the Operating Units. Thisalso includes municipal charges for water.

Marketing CostThis includes spends on newspaper advertising, hoardings,posters, and the related creative cost.

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Graph 36: Business Model

Graph 37: Income Mix

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Graph 38 : Total Income

Graph 39: Cost Mix

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Graph 40: Total no. of patrons

Summary

Inox backed by best picture and sound quality, overall facilities , shopping andrestaurants , easy access , reasonable pricesand good staff behavior emerged as a clearwinner amongst all the multiplexes ofVadodara , namely PVR , Chandan and Fame .

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Known for having premium segment customersINOX really lives up to the hype and publicimage created by the company. But it stillhas to improve its ticket booking facilities.

Multiplexes are known for attracting largeno. of footfalls especially youth who havedisposable income to spend on entertainment,shopping, recreation and food . Mostlystudents visit these multiplexes on a monthlybasis. Female patrons although less in no.spend more. Similarly businessmen althoughvisiting these multiplexes rarely spendlavishly on themselves and family . There isa huge demand for a Drive-in theatre inVadodara . Respondents feel its still earlyto rule out single screens as they servelower income classes .

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CONCLUSION

Multiplex, in India, is the new business modelfor the film exhibition industry. It istransforming movie viewing habits in India. It isset to take over a significant slice of theentertainment market of India. Today multiplexesconstitute just 1% of the total number of cinemahalls, and 4-5% of the total screens in India.The industry experts believe that it is beginningof the end of single screens in India as themultiplexes with certain advantages such asmulti-screen potential, flexibility inoperations; scope for other commercial viabilitywill rule movie exhibition business in Indianfilm exhibition industry .The multiplexes enjoys rebates and exemptionsSingle Screen doesn’t enjoy such exemptionsfrom the government.(Entertainment Tax) on partof government. They just don’t offer movie butalso offer so Talking of the ambience,multiplex offer better Single screens onthe other hand don’t offer sitting ,Dolby digital sounds and good such

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facilities to view graphics for viewers .Multiplexes, by offering food courts,ATM etc . The mushrooming of multiplexes hasthrown up huge competition amongst multiplexesand is giving the stand-alone theatres a run fortheir money. However, multiplex owners are stillupbeat about their business. “In India, we had3,100 million admissions last year and only 12screens per million. So there is a hugepotential for growth”. The road ahead fortheatre owners is both exciting andchallenging. “The service industry isever changing and you have to changeproactively”.

LIMITATIONS

This study is purely based on the responsesreceived from the respondents.

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Since we are not the authorized researchersso this study is made keeping in view utmostcost effectiveness.

This study is done in a limited time span The study focuses on the youth segment of thepopulation

The Research study would mainly be undertakenbased on collection of primary data andinformation mainly from urban population, itwould be inappropriate to generalize it asfit and good for the whole population.

The Research Study shall be mainly carriedout in the Vadodara city in the State ofGujarat; hence this research work does notaim to cover the opinion of all theconsumers’ of particular brand of multiplexlocated in a different city of Gujarat .

Findings can be applied to only select samplesize and care must be taken while applying tothe other group of consumers’.

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QUESTIONNAIRE

Dear Sir / Madam:

I am Shivang Kalambekar student of 6th sem. of BBA (Marketing)from maharaja sayajirao university of Baroda, conducting a War ofthe multiplexes – A Customer Satisfaction & Customer PreferenceSurvey on Multiplexes in Vadodara.

This questionnaire is part of a research study being conducted byme. The aim of the study is to understand the consumers’ perception towards the multiplexes and to forecast the future of multiplexes in ‘B’ grade city like Vadodara. Any information provided would be used only for academic purpose and kept confidential.

I. Personal profile:

1. Name ofRespondent:-

2.Age:- Below 18 years 19-30 years 31-50 years 51 years & above

3.Gender :- Male Female

4. Occupation:- Student Service

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business housewife

II. Research questions :-

5.Do you prefer to watch a movie in a Multiplex Theatre?

a.Yes b. No

6. Please rank the reasons for your choice ( 5 being most important , 1 being least )

f. Better sound and picture quality g. Comfort

h. Value for moneyi. Status symbolj. Ticket prices

7. How often do you visit a Multiplex? ( Choose Any 1Option )f. Weekly

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g. Twice a monthh. Monthlyi. Twice a yearj. Yearly

8. What is your monthly expenditure on movies ? (Choose Any 1 Option)

a. < 100 b. 100 – 300

c. 300 – 500 d. 500 – 700 e. 700 – 1000 f. > 1000

9. Rank the multiplexes in descending order ( 4 being favorite, 1 being least )

Characteristic Chandan Fame Inox PVRXV. Picture and

sound Quality

XVI. Seat comfort

XVII. Air conditioning

XVIII. Food and refreshments

XIX. Washroom

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facility

XX. Drinking water facility

XXI. Staff behavior

XXII. Gaming zone

XXIII. Ticket booking facilities

XXIV. Shopping experience

XXV. Security arrangement

XXVI. Parking facility

XXVII. Value for money

XXVIII. Overall Ambience

10. Which is your most preferred Multiplex in Vadodara? (Choose Any 1 Option)

Chandan Fame Inox PVR

11. Your suggestions (Choose Any 1 Option for each attribute )

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Attribute StronglyAgree

Agree Don’tKnow

Disagree

StronglyDisagree

Reduction inticket pricesMore offersand discountsTicket bookingconvenienceReduction inprices of

refreshments

12. Which is the Multiplex which has given you highest overall satisfaction ?

Chandan Fame Inox PVR

13. The reasons for your choice (Choose Any 1 Option for each attribute)

Attribute HighlySatisfie

d

Satisfied

Neutral Dissatisfied

HighlyDissatisfi

edOverall

Entertainment

PhysicalfacilitiesService

provided bystaff

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14. Do you think there is a need for a Drive – In theatre in Vadodara?( Choose Any 1 Option )

StronglyAgree

Agree Don’t Know Disagree StronglyDisagree

15. Do you think single screen theatres have come to their end ? (Choose Any 1 Option )

StronglyAgree

Agree Don’t Know Disagree StronglyDisagree

16. Do multiplexes have a bright future in India? ( ChooseAny 1 Option )

StronglyAgree

Agree Don’t Know Disagree StronglyDisagree

-:THANK YOU FOR RESPONDING:-

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BIBLOGRAPHY

www.inox.com www.marketing about.com www.docstoc.com www.authorstream.com Media and entertainment Industry Report 2005 , FICCI

Media and entertainment Industry Report 2005 INOX Annual Report , 2007 www.researchonindia.com Fame Presentation

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