PREFACE

One of the fastest growing sectors of the economy is entertainment industry. Entertainment
today dictates our lives, education, careers, earning money, all lead to the quest for higher and
sophisticated entertainment. One seeks knowledge to improve the quality of life. The quality of
life improves when the basic requirement of life are supplemented with entertainment in some
form or other. Current scenario the entertainment industry is totally different from the past, as
the modes of media used for providing services were different before the 20th century when
compared with the present media. The cinema exhibition industry in India is growing at 10%
per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as
well as second and third tier cities. Favorable demographics in a cinema-crazy nation, tax
exemptions, and quality locations such as malls, are driving growth of multiplexes in India.
Most of the multiplexes in India are anchor tenants in the large format malls making a favorite
destination for the youngsters as well as the families. Multiplexes captured the market as
complete family entertainment centers. The digital revolution has helped the Media and
Entertainment industry to go digital. There are more than 100 digital cinemas in India today.
They, along with the multiplexes have completely transformed the experience of the viewers.
With an increase in the incomes of the people and increasing expenditure on the leisure
activities, multiplexes are poised for high growth in India. Other than the sale of the movies
tickets, Food & beverages is the major source of revenue for the multiplexes. Space economies
and the optimal utilization of the capacities are the major advantages or benefits that the
multiplexes enjoy over single screen theatres. PVR, a pioneer and a trailblazer in Multiplex
development in India, is the largest cinema exhibition player in the country today. The
company began its commercial operations in June 1997 with the launch of PVR Anupam in
Saket, India's first multiplex. By introducing the multiplex concept in the country PVR
Cinemas brought in a whole new paradigm shift to cinema viewing experience, high class
seating, state of the art screens and audio visual systems. This catapulted the company to
command a significant presence in New Delhi, National Capital Regions like Gurgaon &
Noida, Bangalore, Hyderabad, Mumbai, Lucknow and Indore, making it the largest cinema
exhibition chain in the country. PVR, in order to solidifying its exhibition growth and strength
also ventured into the business of film distribution, set up PVR Pictures, a fully-owned
subsidiary of PVR Ltd. PVR Pictures, a strategic business unit, specialises in acquisition and
local distribution of films

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 TABLE OF CONTENTS
SERIAL PARTICULARS PAGE No.
No.

1. CHAPTER 1- INTRODUCTION 1

1.1 Entertainment Industry 2

1.2 About the Company 7

1.3 Marketing Strategy 11

2. CHAPTER 2 – REVIEW OF LITERATURE 17

3. CHAPTER 3 – NEED AND SCOPE OF THE STUDY 24

3.1 Need of the study 25

3.2 Scope of the study 26

4. CHAPTER 4 – RESEARCH METHODLOGY 27

4.1 Objectives of the Study 28

4.2 Research Methodology 29

4.3 Limitations of the Study 31

5. CHAPTER 5 – DATA ANALYSIS AND INTERPRETATION 32

6. CHAPTER 6 – CONCLUSION 44

6.1 Findings of the Study 45

6.2 Recommendations 47

6.3 Conclusion 49

7. ANNEXURE 50

7.1 Bibliography 51

7.2 Questionnaire 53

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 CHAPTER 1
INTRODUCTION

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 ENTERTAINMENT INDUSTRY

Entertainment consists of any activity which provides a diversion or permits people to amuse
themselves in their leisure time. Entertainment is generally passive, such as watching opera or a
movie. Active forms of amusement, such as sports, are more often considered to be recreation.
Activities such as personal reading or practicing a musical instrument are considered to be
hobbies. Entertainment may also provide fun, enjoyment and laughter. The industry that
provides entertainment is called the entertainment industry. There are many forms of
entertainment for example: cinema, theatre, sports, games and social dance. Puppets, clowns,
pantomimes and cartoons tend to appeal to children, though adults may also find them
enjoyable.

The concept of leisure, and the freedom to choose individual pastimes and leisure pursuits, is a
20th century development for the mass population. Historically, only the wealthy could divide
up their time to engage in activities of their choosing. The working classes had neither the time
nor the money to enjoy leisure activities on a broad scale. The development of leisure is seen
predominantly in westernized cultures, where it has become increasingly sophisticated. Over
the years, as working hours have shrunk, people found that they had more free time on their
hands to spend on leisurely activities. Sitting home with a book could only go so far, and thus
an entire industry sprung up to make money on those who wanted “something to do.” This is
the leisure industry, which actually spans numerous types of industries. Leisure industry fields
include: restaurants, amusement parks, theaters, hotels, gaming places, venues for musical
groups or lectures, and sporting arenas. Also one might include spas, gyms, and areas where
one can conduct sports, like golfing or boating as part of the leisure industry. Anything that is
made to be enjoyed, and is made to occupy one’s leisure hours is essentially part of the leisure
industry. Leisure being what we do more or less voluntarily and pleasurably within our way of
life; leisure services being all those occupations and organizations that deal with leisure
behaviour — from tourism to therapeutic recreation to parks. The reinvention of leisure is
going on right now but, just as fish presumably do not see water; it may be hard for those of us
interested in leisure services to see such change. Perhaps these changes can't be seen (or
understood) directly, but instead require that professionals and students learn more about what
is changing in our environment, our economy, our society, our use of technology, and our
values. Given the accelerating change in our world, it seems leisure will be changed for those in
both the modern and developing worlds. It would follow that the organizations that serve
people providing a broad array of recreation, park, sport, cultural, theatres, therapeutic, tourism,

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hospitality, hotel, restaurant, and other "leisure services" will be, themselves, in a process of
change, reinvention, reconceptualization and adjustment.

The entertainment industry (also informally known as show business or show biz) consists of a
large number of sub-industries devoted to entertainment. However, the term is often used in the
mass media to describe the mass media companies that control the distribution and manufacture
of mass media entertainment. In the popular parlance, the term show biz in particular connotes
the commercially popular performing arts, especially musical theatre, vaudeville, comedy, film,
and music.

Entertainment Industry in India has registered an explosive growth in last two decades making
it one of the fastest emerging industries in India. Television itself witnessed its transformation
from a single government owned channels to a medium telecasting more than 300 national and
regional channels. At present Indian film industry or Bollywood is a perfect combination of
entertainment and commercial sector, producing close to thousand movies in a year in various
Indian languages. Indian film industry supersedes Hollywood in terms of movie production
quantity by more than three times. As per the recent report by Price waterhouse Coopers
(PwC), Indians are likely to spend more on entertainment in the coming years with a steady
growth in their disposable income. And as per the combined survey report by KMPG and
FICCI, the entertainment industry in India is expected to expand by 12.5% every year and is
likely to reach US$ 20.09 billion by the year 2013. Key sectors of Indian Entertainment
Industry are - Music, radio, digital media are some of the other fastest growing sectors in the
Indian entertainment industry. Entertainment industry includes – Film Industry, Theatre
Industry, Television Industry, Music Industry, Radio Industry, and Animation Industry. The
Government has introduced some reform policies to trigger the growth of entertainment
industry in India. They are:

 Allowing 100% FDI on advertising and film industry through regular channels
 Authorizing 49% foreign stake in DTH and cable TV
 Allowing establishment of uplinking destinations to private TV broadcasters for satellite
uplinking from India
 Certifying the repute of an industry to the movie sector
 It has given its consent on the guidelines for Headend-in-the-Sky (HITS) operators, an
equipment that will offer electronic cable content to Indian viewers
 Permitting Foreign Direct Investment (FDI) in FM radio industry with a 20% restriction

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  Paving way for FM Radio functioning to the private sector
 Including development projects of film industry in its five-year plans and allocating
US$ 50.13 million to it.

The Indian film industry is the largest film industry in the world in terms of the
number of films produced and admissions each year. Revenue for 2010 was estimated at
Rs. 89 billion (US$1.3 billion), which was less than 1% of global film industry revenue
and a fraction of the U.S. Film industry revenue, which was US$9.49 billion in 2003. Nearly
80% of Indian Industry revenues come from Domestic and Overseas Theatrical. On the
contrary US Film Industry earns only 35% from box office sales and remaining 65% is derived
from other revenue sources. This clearly signifies the onset and potential of Multiplexes in the
Indian Film Exhibition Sector.

The story of single-screen theatres has reached its sad end in India. In India, the single-screen
theatres with poor facilities and zero-service oriented staff are on last stage of their life. These
are getting converted into multiplexes. India's multiplex bandwagon has gone beyond the
metros to redefine entertainment in B and C class cities like Indore and Jaipur. These theatres
have fully air-conditioned halls with marvellous ambience, plush chairs, excellent audio-visual
quality, better infrastructure, professionally-oriented services, proactivity and allied facilities
like restaurants, play zone etc. Their aim is to provide world-class entertainment services.
Multi-screen theatres have opened new vistas for the entertainment industry. After the entry of
corporate titans like Reliance, the scenario of entertainment services has become more
professional than ever. These theatres have changed the entire movie-going experience. These
theatres are known for marvellous ambience, excellent audio-visual quality, better
infrastructure, professionally oriented services, proactivity and allied facilities. After gaining
stronghold in metros the multiplex players are now entering into B and C class cities. Cities
like Lucknow, Indore, Nasik, Aurangabad, Madurai, Kanpur, Amritsar and Jaipur are the new
destinations of multiplex players. Fuelled by rising income of people and advancements in
technology, these multiplex are spreading red carpets for a wonderful movie-going experience
of viewers.

Multiplex is a medium that offers a person composite entertainment comprising of a one stop
destination to shop, entertain, and dine and watch a Varity of movies under a common roof.
Multiplex are one of the means of lifestyle that offer to viewers the choice of watching a movie
in a five star or three star environment. The Multiplex model is based on concept of umbrella

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entertainment built around a primary anchor- movie. The revenue streams, however, do not
necessarily centre on a single anchor.
Typically, the possible income generating channels in a Multiplex can include.
 The box office collections
 Rent from display system
 Food & beverage
 Product lunch rentals
 Promotions by companies to promote consumer goods.

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

Key players of multiplex industry are-

 Fun Cinemas is a cinema chain in India based in Mumbai owned by the Essel Group
and promoted by E-City Ventures.
 INOX Leisure Limited is the diversification venture of the INOX Group into
entertainment and is a subsidiary of Gujarat Flurochemicals Ltd.
 PVR (Priya Village Roadshow) Cinemas is one of the largest cinema chains in India.
The company, which began as a joint venture agreement between Priya Exhibitors
Private Limited and Village Roadshow Limited.
 BIG Cinemas, a division of Reliance MediaWorks Limited, a member of the Reliance
Anil Dhirubhai Ambani Group(ADAG), is India’s one of the largest cinema chain with
about 516 screens spread across India, US and Malaysia and Netherlands and caters to
over 40 million consumers.

ABOUT THE COMPANY

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Priya Exhibitors Pvt. Ltd is a part of the diversified Bijli Group, which has interests in
transport, finance and construction sectors all over India. After a downturn in the industry in
late 80s when the onslaught of video wars at its peak cinema has now been rejuvenated with the
latest international trends in cinema exhibition reaching India’s shores swiftly with the arrival
of satellite TV. The capitals cosmopolitan audience is becoming increasingly aware of the
advanced cinematic technology that enhances the movie going experience and this has whetted
their appetite for watching movies on the “big screen“. To cater to the increasingly
sophisticated tastes of the audience Priya exhibitor Pvt. Ltd. totally refurbished the existing
cinema in June 1991 including installation of a Dolby stereo sound system. They also gained
exclusive rights to screen blockbusters from major distributors mainly Warner brothers, 20th
century fox, united international pictures, small wonder then that the cinema has become the
focal point for entertainment in the capital for both the young and old attracting over 30,000
patrons a week. In fact, “Speed” set a national box office world record of Rs.785000 in its first
week of screening at PVR (the highest ever for an English film), which is remarkable
considering the relatively low price of a cinema ticket in India. Buoyed by the overwhelming
success of the cinema after upgrading, Priya exhibitors ltd have taken the next initial step for
setting up the first multiplex in the country in a joint venture with Village Roadshow Ltd,
Australia’s leading Entertainment Corporation.
PVR is a brand name synonymous with state-of-the-art cinema exhibition in India. PVR
specializes in developing and operating state-of-the-art Multiplexes. PVR Cinemas are the
leading cinemas in the country with an emphasis on design, technology and service. Over the
last three years, PVR has established itself as a very strong brand associated with movies,
quality exhibition and youth-targeted promotions.

The company was conceived as a Joint Venture between the Bijli family, headed by Mr. Ajjay
Bijli as Indian Promoters and Village Roadshow Limited of Australia, one of the largest
multiplex operators in the world with more than 1500 screens under operation.
PVR FIRSTS

 First to launch a multiplex in India - PVR Anupam Saket, Delhi

 First to launch India's biggest 11 screen multiplex - PVR, Bangalore
 First to bring premier movie viewing to India with the exclusive Europa Cinema and
Lounge at PVR Gurgaon
 First to introduce Gold Class Cinemas in India at PVR, Bangalore

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  First to form a foreign joint venture with Village Roadshow, Australia
 First to receive institutional funding in the cinema industry – from ICICI Venture
 First to offer computerised & online ticketing
 First to accept credit cards in cinemas
 First to introduce mobile based information & ticketing service
 First to launch a loyalty program for movie-goers in India
 First to launch 'Movies First' - a monthly magazine that updates the movie lovers on the
latest happenings in Bollywood and Hollywood.

RELATIONSHIP WITH VILLAGE ROADSHOW - In 2002, Village Roadshow was

undergoing a strategic and business restructuring worldwide. As part of their worldwide
strategy, they decided to concentrate on the Production business and on Exhibition business
only in those territories where they have majority control and have the critical mass of screens.
In line with this strategy they exited from almost 20 countries worldwide, including India.
Village Road show’s inability to support the growth plans of PVR, the Indian promoters
offered to buy out the Village stake and the joint venture was mutually decided to be terminated
in June 2002. However, though Village Road show exited as a joint venture partner, the
excellent relationship between both companies continues and is reflected by the fact that PVR
continues to have an exclusive long term technical and marketing services arrangement with its
erstwhile partners on a long term basis. During the 5 years of joint venture with Village, PVR
was exposed to best business and operational practices in the Cinema Exhibition industry and
was able to revolutionize the way to go to cinemas.

DIVERSIFICATION - PVR has also ventured into the business of film distribution and set up
PVR Pictures, a fully-owned subsidiary of PVR Ltd. PVR Pictures specialises in acquisition
and local distribution of films. PVR Cinemas has also come out with a film magazine. PVR
Movies First, as the magazine is called is the latest addition to PVR's big bouquet of offerings
in the movie entertainment business. It is a monthly magazine and is expected to fulfill the
information needs of the die-hard movie fans.

MARKET PENETRATION AND DEVELOPMENT - Beyond the existing markets, PVR is

contemplating implementing new multiplex projects in Delhi, NCR, Mumbai, Hyderabad,
Bangalore and Indore.

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PVR AS A BRAND - PVR has successfully assimilated the Standard operating business and
operational practices of Village Roadshow and set new standards in the quality of exhibition in
India. The quality of cinema viewing has made the PVR brand synonymous with high quality
cinema viewing in the country. This has enabled them to enter into strong corporate alliance
partnerships and co-marketing exercises with leading brands like Pepsi, Evian, Samsung,
Whirlpool, Hero Honda, Bharti, American Express, Master Card, Pizza Hut, Cadburys etc. This
has generated additional steady stream of revenues for the company.

SWOT ANALYSIS OF PVR CINEMA –

Strengths –
 First mover advantage in the multiplex business in India

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  Updated technology
 Premium positioning
 Plays Hindi, English, Regional & foreign movies
 Locational strength
 Ambience
 Started the concept of ‘a complete movie going experience’
 Market leader
 Very strong brand equity
 TOM recall
 ‘Original’ multiplex
 Blend of retail & entertainment
Weaknesses –
 High cost perceptions
 T.A very specific (not mass service)
 Disjointed images for all PVR properties
 Customer retention
 Parking problems
Opportunities –
 First mover advantage
 Growing family spend on entertainment
 Large film industry – over 200 hindi films every year
 PVR loyalists
Threats –
 Competition blooming large
 Government’s interference
 Entertainment Tax
 Other Multiplexes as competition
 Other ways of entertainment
 Accused of increased crime rate
 Piracy No control over surroundings e.g. West Delhi
 Movies becoming bigger than the brand

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 MARKETING STRATEGY

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

MARKETING STRATEGIES OF PVR CINEMA

Segmentation- On the basis of customer preferences, we may classify PVR under the Clustered
category. This is owing to the fact, that out of the entire masses they have clearly defined their
target audience and aim to cater to them. Also, PVR is a Concentrated Market because they
only cater to the premium movie-going audience i.e. SEC A and SEC B. PVR Cinemas has
approx. 22 million movie goers per month.

Targeting- PVR being the first of its kind has always been a market leader and therefore its
offering to the customer is Innovative. PVR has premium pricing and they target mainly SEC A
and SEC B. PVR has brought to its customers the experience of Luxury Cinema. PVR uses the
concentrated method as they have target a much focused audience out of the entire masses.
PVR witnessed tremendous success Europa Lounge in Delhi. PVR’s chain use Differentiation
method for pricing. It practices different price slabs for different target audience.

Positioning - PVR had, and still has a very well planned market position. Its premium
positioning affects the customers perceptual positioning. Therefore, they decided on their
marketing strategy and pricing, keeping the target market in mind. In case of PVR, they make

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use of all their tangible elements to prove to their customers that their movie tickets are worth
the price they are paying. Also, since some of the other movie theatres (which are not
multiplexes) are still offering movies at rates as low as Rs 50, it is the task of its marketer to
ensure that PVR comes across as a superior brand in terms of cinema viewing as well as the
experience.

Entertainment Marketing: Marketing of entertainment services is referred as entertainment

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

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

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

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

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

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

MARKETING MIX – 7 Ps

1) PRODUCT - A product (in the marketing context) may be tangible, intangible or both. In
case of services, on the contrary, the tangible component is nil or minimal. In services, there is
no or very little tangible element because of which they are considered as benefits, which are
offered to the target market. First, a service is a bundle of features and secondly, there benefits
and features have relevance for a specific target market. Therefore while developing a service
product; it is important that the package of benefits in the service offer must have a customer’s
perspective. Core Benefit is the MOVIES that the customer comes to a cinema hall for, along
with the attendant experience of PVR. The expected product in PVR’s case would be ambience,
hygiene, good service, parking, candy bar etc. PVR has augmented its product offerings:

 Luxury cinema - PVR has brought to its customers the experience of luxury cinema.
After the tremendous success of Cinema Europa in Delhi, PVR Cinemas has introduced
the concept of luxury viewing to Bangalore as well. Gold Class Cinemas have been
introduced for the first time in India, are two ultra luxurious exclusive auditoriums, each
equipped with 32 plush and fully reclining seats and generous legroom. Patrons can also
enjoy star like treatment at the exclusive Gold Class lounge which provides an excellent
pre cinema experience with scrumptious food and beverages.

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  Bulk Bookings - There are special arrangements for bulk bookings (of twenty or more
tickets) done by corporate. Details can be filled online and PVR executives themselves
get in touch with the concerned people.

 E-booking and tele-booking - PVR also provides the factility of e-booking, which was
first started by PVR, it has now been copied by Satyam cineplexes as well. It also offers
telebooking.

 Parties at PVR - PVR has also started helping customers in planning birthday/kitty
parties at PVR. They have made PVR a wholesome entertainment experience than just a
movie watching spree.

 Movie newsletter and magazine - To keep its customers hooked on to movies and to
PVR, it has also come out with an online newsletter called ‘PVR Wire’ is directly
mailed to the subscribers and can also be downloaded from their website. They have
also launched a movie magazine called ‘Movies First’.

 Movie vouchers - They have also taken out the unique concept of movie vouchers
which people can use as gifts. Many corporates have also started using these as
incentives and rewards for their employees. The vouchers are available in
denominations of Rs 100 to Rs 350 and a minimum of 25 coupons needs to be
purchased to avail of the offer.

2) PRICE - PVR when started off had a huge advantage of being the only one of its kind in
Delhi to begin with. Therefore, they could charge a higher amount to its target audience, as
they did not hesitate to pay the sum for the new concept. This high pricing helped them make
maximum gains. Also, PVR had, and still has a very well planned market position. Its premium
positioning affects the customers perceptual positioning.In case of PVR, they make use of all
their tangible elements to prove to their customers that their movie tickets are worth the price
they are paying. Also, since some of the other movie theatres (which are not multiplexes) are
still offering movies at rates as low as Rs 35, it is the task of its marketer to ensure that PVR
comes across as a superior brand in terms of cinema viewing as well as the experience. The
movie theatres market is a Free Market, even though the government in the past regulated it.
This allows PVR as the market leader to set its own prices. Prices that had originally started

16
from Rs 125 (for evening shows) and Rs 90 (for morning shows and weekday plans) have
increased to a high of Rs 150 and the lowest is Rs 100. The high pricing however has not led to
any change in the footfalls that PVR gets. Even in slighter crowded shows, the occupancy rates
as low as 35% reaches PVR’s break-even points. The pricing at PVR Europa is Rs 160 and a
Gold Class ticket is charged at Rs. 750. It offers superior ambience, environment, seating,
viewing etc in the sum.

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

4) PROMOTION - PVR as a brand indulges into print advertisements on every Friday giving
out the latest movie schedules. Any new developments are communicated to the audience via
press releases. Hence there is a strong element of PR involved. Apart from that, they usually
have contests pertaining to latest festivals like Valentines Day, New Years Eve, Oscar Movies
Week etc. PVR also has a host of online promotional contests associated with movies. They are
also in collaboration with cellular services like Airtel have SMSand- win contests and give out
free tickets to the winners. Also, PVR attracts a lot of commercial shooting / media coverage
via programmes etc which promotes it as a brand in a big way. Organizing Star Events on
Premiers of movies like ‘Kuch Kuch Hota Hai’ helps PVR relate better with its target audience
i.e. the youth. The whole PVR banner and its exterior environment including movie hoardings,
banners etc help promote the concept of movie viewing as well as PVR as a strong and
successful brand. PVR also hosts premiere shows with leading movie stars visiting the various
PVR cinemas. They also host numerous fun events for children while screening animations etc.

5) PEOPLE – This indicates the Employees and Customers. Service must be fully developed
and internally accepted before it’s launched. PVR indulges in the following: Complimentary
ticket on payment of entertainment tax amount at any point of time (2 days in advance) to the

17
employees, subject to Availability, Tickets to employees are given for: 1+1 oneself and
employees guest and 2 for immediate family i.e. parents, spouse etc. This has been done to
encourage movie going among employees as well as customers, Gives 10 national holidays to
employees, Report customer grievances to managers, Strict on rules on no smoking, drinking
on job etc, They are given personalized badges – symbolizes that the employees pride
themselves on being a part of the PVR family, Very great importance is given to person
hygiene and appearance –Clean uniform and shoes, Not allowed to make a gesture to ask for
any sort of a tip / gift from customers, Job performance evaluation at the completion of first 90
days of employment. They are evaluated once a year on their anniversary of date of joining by
individual superiors and records regarding employees’ progress are evaluated, all employees
are taught to deal with safety problems like accidents, Fire, bomb threat, armed robbery etc. All
trainees are made to train at all departments like ticket sales, computer ticketing, telebooking,
sales enquiries, customer service skills, cash handling sales, credit card sales etc. Lastly, it is
made sure that all employees represent PVR in the best way possible and sell it as a strong and
well-established brand. All 55 employees are given full details on what they are representing
and informed all about PVR to make them a part of the family. For the customers’ convenience,
it is ensured by the organisation that there are no loopholes. In case of any customer
complaints, the employees are immediately directed to report the same to their managers. The
nature of all employees is very friendly, informed, helpful, reliable, soothing, cheerful and
youth-like. Therefore, the audience can easily relate and communicate with them.

6) PHYSICAL EVIDENCE - Though customers cannot see a service, but they can definitely
see various tangible clues of the service offer like facilities, communication, objectives,
employees, other customers, price etc. On basis of these, he forms his opinion as they help us to
tangibalise the service. . Therefore, it is essential to manage physical evidence. Atmosphere –
helps to shape opinions. The building, layout, colours of interiors, tickets, labels, logo of the
organisation etc help to formulate a good unified corporate image / identity.

7) PROCESS - It was the first cinema company to introduce computerized ticketing through
use of international box office software in its cinemas; first cinema to accept credit cards in
India against tickets; and the first to offer cinema tickets on Internet with online payment
gateway for payment.. PVR was the first to install surround sound and Dolby in Delhi. Gurgaon
7 screen megaplex is equipped with the latest THX approved sound system for the real life
sound effects and the state of the art Xenon based projection technology.

18
CHAPTER 2
REVIEW OF
LITERATURE

19
 REVIEW OF LITERATURE

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

In the five years since the Anil Ambani-led entertainment group (then Adlabs, now Reliance
Mediaworks, RMW) bought a controlling stake in Manmohan Shetty's Adlabs in a whopping
Rs 350-crore deal, along with their 16 multiplex screens, the industry has not seen big buzz
deals. Till, Shravan Shroff decided to sell his screen dream — Fame (96 screens) to Inox. There
is still a huge untapped potential. The big five players i.e Inox, Adlabs, PVR, Waves, Big
Cinema, in a unified voice feel there is a lot of space to grow. The problem, if at all, is not of
too many players right now but factors like piracy, shorter windows with satellite and home
video eating into theatrical and, of course, a low success ratio of films. These plus the
economic slowdown, saw expansion plans go slow. So, due to a host of reasons, the present
may look a bit bleak (add IPL to that list) but the long-term scenario looks intact. According to
the Ficci-KPMG 2010 report on the media and entertainment industry, by 2013, the number of
plex screens in India is likely to cross 1,600. "Multiplexes have become an important and
integral part of the domestic theatrical industry. They have made a significant impact in
bringing viewers back to the cinemas. This is reflected in that as much as 60% of Indian
theatrical revenues for Hollywood and Hindi films, come from the multiplexes while for South
Indian films, it is 25%. Given the experience of consumers and part digitalisation, the
importance of plexes in the distribution space is here to stay," says executive director and head,
media & entertainment, KPMG, Rajesh Jain.

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

From rickety trucks to swanky malls. It’s been a long journey for Ajjay Bijli. Born in a family
that was into trucking business, he was asked to look after his business after he completed his
studies. With Priya, Mr Bijli had tasted blood and now he wanted more. “Since we screened
English movies regularly at Priya, I was in constant touch with Hollywood companies like
Columbia, UV and Warner Brothers during that period. The market for English movies in India
was growing in a major way and these companies were looking for an outlet in India. I also
came in touch with Australian company Village Roadshow that was looking for a partner in
India. Soon we were partners,” says Ajjay. So was born the joint venture Priya Village
Roadshow Ltd or PVR. Together they started setting up multiplexes for India. As luck would
have it, Anupam was on the blocks. Mr Bijli grabbed the opportunity and turned it into a

20
multiplex in 1997. “We were amazed with the kind of response we got.” Meanwhile, the
priorities changed for his overseas partner, Village Road Show, post 9/11. The lull in 2001
forced it to focus on the American market and movie production leaving the field here open for
the Indian partner. So, PVR or Priya Village Roadshow Ltd became PVR Ltd. “Now, we only
have a tie-up with them for technical backup.” Today Mr Bijli has ICICI Ventures as his
partner which owns 32 per cent stake in the company. Mr Bijli considers this as no mean
achievement. Entertainment is a challenging business as every city has a different profile and
we have to understand the people’s behaviour there and cater to them.

Gummerson (1996) “Relationship Marketing”

He tried to explore the extent of application of relationship marketing in service sector.
According to his findings, the service users hold good image of the company if it provides
effective CRM services. He found that poor relationship marketing caused discontinuation of
services by many customers. The same concept applies to Indian customers too. Service
industry players need to put thrust on this area to maintain profits on a sustainable basis.

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

Customers are now demanding personalization and customization of products and services
ranging from video-on-demand and personal video recorders (e.g., TiVo) to niche brands and
product extensions that help customers feel unique and stand out from the crowd (Bianco
2004). This shift in the way firms do business is not only evident it is also clear that the
academic research is changing its course as well to match with the climate in the industry. Any
firm that looks to sell products or services to the market needs to treat its customers as assets.
For example, AT&T was adopting a macro-level strategy to deal with customers (Squeo
andWilke 2004). As a result, AT&Tlagged behind its competitors and is getting out of the
landline business (not acquiring new customers) and merging their wireless business with
another service provider. However, DISH Network, which used to offer standard packages of
television channels, realized the shift in customer needs and adopted a micro-level (customer)
strategy to offer customized channels (Grant 2004). As a result, the growth experienced by
DISH Network is phenomenal. Thus, resources need to be properly allocated to various
marketing strategies, which only can be accomplished if a firm can identify its best customers
and prospects and send those individuals the right marketing message at the right time.

21
Jain and Dhar (2003) “Effectiveness of CRM”
They studied the determinants of customer relationship management effectiveness in India.
They used in-depth interviews focused on behavioural dimensions of relationships. It was
found that customer relationship management emerged as a core business process for
maintaining and enhancing the competitive edge in modern business affairs. In the area of
services, the issue of customer relationship management holds much importance. Many a times,
it is the CRM that becomes the deciding factor while selection of services. Customer loyalty is
directly related to the CRM efforts made by the service sector companies.

Sarangi (2007) “Entertainment Industry”

It highlights the aspect of quality of entertainment service industry in India. The objective was
to define the parameters of service quality satisfaction with reference to entertainment services
in a metro city. In a survey of 300 people visiting the multi-screen cinema halls and luxury
hotels, various dimensions of services were found. Customers in metros and other cities have
started watching movies in multiplexes which provide excellent ambience and quality. When
asked about the factors causing the visit, the customers gave first preference to comfort and
ambience provided in the place. For this aspect, the customers were ready to compromise on
cost and distance factor. Besides ambience, promptness in services was another factor leading
to satisfaction of customers.

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

The concept of Theming and design has been related to leisure stimulation, play theories and
service marketing and the practice analyzed thoroughly, using relevant and up to date
examples. Therefore, in summary it is possible to state that the themed entertainment industry,
and the theme park industry in general terms is developing through organic growth. Much of
this is down to technological innovation and advancements and indeed the talent to put such
ideas into practice. Ideas are also developing in accordance to marketing practice, with new
ways of ensuring customer satisfaction and enhancing the core service product that a theme
park offers. Technology and innovation is allowing the ability to construct higher, faster, longer
rides and attractions but when coincided with Theming, complete new environments can be
produced and with the use of virtual reality, complete false environments are being created.
There is a coming move away from the traditional iron ride, although they are by no means in
decline, technology and VR is being further developed to create more ambitious 'dark rides'
where story telling combined with special effects creates visitor immersion, which is also

22
apparent in restaurants, shops and other service orientated aspects. Thus, in reflection, the
future of the industry remains to be seen; yet serious adaptations need to be considered as
visitors demand meaningful and often educational entertainment, with particular consideration
to the increasing gray market.

Charles R.Akland (2003) “Screen Traffic: Movies, Multiplexes and Global Culture”
Scholars of film exhibition are concerned with the fraught intersection of political economy and
cultural studies. In this timely new study, communications scholar Charles Acland raises the
bar for post-nationalist discussions of cinema culture by insisting that film going must be
approached as a complex of industrial and cultural phenomena. Using a cultural materialist
approach inspired by Raymond Williams, Acland argues that "film" must be considered as a
highly mutable site of international economics and individual emotional responses,
encompassing technologies of reproduction alongside patterns of reception. Although film has
arguably been a global enterprise since Hollywood began to aggressively develop the
international market in the 1920s, Acland makes a compelling argument that film culture
became global in a new way in the 1980s when cinema was reconfigured as a vertically
integrated industry in the wake of deregulation policies. Thus, his study concentrates on cinema
exhibition practice as a phenomenon of global culture from the mid-1980s to the mid-
1990s.The primary phenomenon under consideration here is the shift in exhibition practices
that emerged between 1986 and 1998, a period when grimy, utilitarian suburban multiplexes
were replaced across North America by monstrous exurban space age megaplexes. Acland
describes the motion picture theatre as an "essential location at which discourses of global
audiences are being worked out and applied," and as "sites for the mobility and flow of bodies,
texts, and money." He associates these new theatrical settings with "shrunken amusement
parks," a logical next step in the convergence of the corporate entertainment industry during
this period. As Acland points out, in retrospect, this moment might also be seen as the last gasp
of the cinema as such. Since 1998, the emergent technology in cinema exhibition has been
digitalisation, which potentially obviates many of the metropolis/hinterland relations that have
traditionally shaped the cinemagoing landscape. Internet distribution of pirated mainstream
films and independent productions threatens to displace–or at least radically alter–the
importance of the cinema as a site of cultural dissemination.

23
I.Nod (2006) “The Entertainment Industry”
The entertainment industry demonstrates a multi channel structure, with companies owning
several forms of companies in each link of the value chain. The industry is converging toward a
single model, which combines production of content with multichannel distribution. All
companies try to sell content in many ways, e.g. movie, TV show, book theme park, etc. All but
two of major players in the industry conform to this model. Non-conforming companies have
regulatory barriers (foreign owned) or do so out of choice. Some companies (Disney) buy
distribution channels, i.e. networks (ABC); others build their own (News Corp., Time Warner)
or do both Viacom (WB, CBS). The newest trend is to combine production and distribution
with added distribution possibilities of internet (AOL Time Warner, Vivendi Seagram). In this
industry we find vertical integration through direct ownership, as well as commercial
transactions via long-term contracts and one-time “spot market” transactions. Ironically, even
the resources can be “owned” – as in the case of the old “studio system” which tied actors to
studies for a number years. In today’s industry, these arrangements are still in place, with actors
signing on for “x number of picture” contracts with various studios. Production companies can
either be independent or owned by integrated companies. In either case, production from one
company may be sold to a competing network or distributor. Finally, local television affiliates
and local movie theaters are sometimes bound by contract, sometimes entirely independent, or
sometimes owned by networks. This last situation is usually the case with large metropolitan
areas, where the networks want to have a closer link to the customer. Agents and other
facilitators play a commercial conduit role of helping to bring together various people and
companies along the value chain.

Ashwin B. Sonone and Rajendra N. Pathak (2005) “The impact of Multiplex Cinema’s in
India”
The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes,
which are expanding rapidly in major metropolitan cities as well as second and third tier cities.
Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such
as malls, are driving growth of multiplexes in India. The study provides a snapshot of the
market including the two segments multiplexes and single screen cinemas. An overview gives a
quick picture of the market with estimated market size, growth rate and theater distribution in
India. Various business models adopted by Indian multiplex operators are presented alongwith
typical revenue streams and cost base. An analysis of drivers reveals that on the supply side -
growth in film industry, improving real estate supply, and favorable tax exemptions have help

24
in growth of this sector while on the demand side favourable demographics, rising income
levels and willingness of people to spend on entertainment are increasing footfalls. The key
challenges identified include slowdown in economy, alternate modes of entertainment,
development delays, piracy and uncertainty over entertainment tax exemptions. The industry is
characterized by seasonality, low screen density, increasing average ticket prices, and reducing
shelf life of movies. The key trends identified include producers bypassing distributors, shift to
digital cinema, and alternate content in multiplexes, retail partnerships, and new single screen
formats. India's craze for films has not been fully exploited by the "Film Exhibition" industry
due to the lack of screen density in the country coupled with the poor quality of screens.
"Multiplex Cinemas" offer an alternative to tap this potential by providing a quality experience
to the viewer as well as economies to the multiplex operator. "Films" has been one of the
integral components of the Indian entertainment industry contributing nearly 27% of the total
revenues of the entertainment industry. Besides, films also contribute to other components of
the entertainment industry like music, television and live entertainment. The Indian film
industry is one of the most complex and fragmented national film industries in the world
comprising of a number of regional film industries like Hindi, Tamil, Telugu, Kannada and
others. The Hindi film industry is the most popular among them. Though India produces the
largest number of films in the world (Approximately 1000 per year), it accounts for only 1% of
the global film industry revenues. In spite of being over 90 years old, the Indian film industry
was accorded the status of industry only in 2000. Over the years, the Indian film industry has
been highly unorganized as film financing was dependent on private and individual financing at
extremely high interest rates. Only recently, the industry has got access to organized finance.
With vertical integration taking place between producers, distributors, exhibitors, broadcasters
and music company’s corporatization is now taking shape in the Indian film industry. We
believe, that corporatization, will bring about transparency, accountability and consolidation
which will help to improve the overall profitability of the Indian film industry as well as reduce
piracy and leakages which presently account for 14% of the Indian film industry's revenues.

25
 CHAPTER 3
NEED AND SCOPE
OF THE STUDY

26
 NEED OF THE STUDY

The need of study on this topic is to get a detailed knowledge about the marketing strategies of
PVR Cinema and their degree of Effectiveness. This study helps to know the reasons behind
the success story of PVR Cinema – a journey from single screen theatre Priya to chain of PVR
multiplexes. The study is required to know how the marketing strategies influencing the
decision of people to visit the PVR cinema. This study is essential for knowing the market
share of PVR cinema. This research helps to attain a deep knowledge about the fact why people
are ready to pay high price and what makes PVR cinema different from others. The knowledge
which is gathered through this research explains that PVR Cinema in terms of its services has
an upper edge over other popular brands in multiplex industry. PVR since from its beginning is
considered as one of its kind and has attained a premium positioning in market. The study is
required to observe what drives PVR to move forward even in such a tough competition and
keep sustaining and maintaining the place of a Market Leader in Multiplex Industry. The main
aim of study is to know that what are the various variables that attract people towards PVR
Cinema. The aim of the study is to make an analysis of different marketing strategies and their
impact on the masses.

27
 SCOPE OF STUDY

The scope of the research is very wide as it is the known fact that today multiplex industry is at
the boom and among those PVR Cinema is considered as the Market Leader of that industry.
So it is important to know the reasons behind their popularity and what are the various
marketing strategies which they follow. The aim of the study is to make an analysis of different
marketing strategies and their impact on the masses.

28
 CHAPTER 4
RESEARCH
METHODOLOGY

29
 OBJECTIVES OF THE STUDY

1) To study about marketing strategies of PVR Cinema.

2) To check the effectiveness of marketing strategies of PVR Cinema

3) To suggest the improvements in the marketing strategies of PVR Cinema.

30
 RESEARCH METHODOLOGY

Research is the systemized efforts to gain new knowledge. A Research Methodology defines
the purpose of the research, how it proceeds, how to measure progress and what constitute
success with respect to the objectives determined for carrying out the research study. The
appropriate research design formulated is detailed below. A scientifically carried out research
project has a definite framework for data collection. This framework constitutes the research
design.. It determines the data collection method, sampling method, the fieldwork and so on.

Research Design:

The research design for the present study is descriptive as it matches well with the objectives of
the study.

Data Collection:

There are two sources from which data can be collected. For the purpose of study, both primary
and secondary data were required.

Primary Data:

Primary data is that type of data which is collected first time for some specific purpose. There
are various means of the primary data collection. Here the mean of the collection of the primary
data is questionnaire method which was devised to be brief and simple.

Secondary Data:

Secondary data is data which is collected already for some other purposes. Secondary data is
collected from internet, publications, research papers & journals.

Sample Size:

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

Sampling Technique:

Initially a rough draft was prepared keeping in mind the objective of the research. A pilot study
was done in order to know the accuracy in the questionnaire. The final questionnaire was

31
prepared only after certain important changes. Thus my sampling came out to be non-
probability convenience sampling.

Data Analysis Technique:

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

analysing whether the study of marketing strategies is effective or ineffective.

32
 LIMITATIONS OF THE STUDY

In attempt to make this project authentic and reliable, every possible aspect of the topic was
kept in mind. Nevertheless, despite of fact, constraints were at play during the formulation of
this project. The main limitations are as follows:

1. This study is purely based on the responses received from the respondents.
2. Since I was not the authorized researchers so this study is made keeping in view utmost
cost effectiveness.
3. This study is done in a limited time span.
4. Mixed responses were there among different age group of respondents.
5. Peoples were some time unwilling and hesitated in replying Questions.
6. The consumer behaviour being dynamic in nature, there is every possibility that over
the time findings of today may become invalid tomorrow.

33
 CHAPTER 5
DATA ANALYSIS
AND ITS
INTERPRETATION

34
 DATA ANALYSIS & INTERPRETATION

Formulation of the problem:

Problem formulation includes several tasks. The objective of using Logistic Regression is to
study about effectiveness of marketing strategies of PVR Cinema. The variables to be included
in the Logistic Regression based on past research, theory and judgments. The variables are
appropriately measured on 7-point likert scale. During the study, I have studied about 100
persons who visit multiplexes to watch movies, nearly 50 respondents were satisfied with their
marketing strategies and 50 were dissatisfied. The respondents were asked to indicate their
degree of agreement with the following statements using a 7-point scale (1=strongly disagree,
7=strongly agree)

satisfied
respondents
dissatisfied
respondents

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

called generalized linear models. This broad class of models includes ordinary regression and
ANOVA, as well as multivariate statistics such as ANCOVA and log linear regression. An
excellent treatment of generalized linear models is presented in Agresti (1996).

Logistic regression allows one to predict a discrete outcome, such as group membership, from a
set of variables that may be continuous, discrete, dichotomous, or a mix of any of these.
Generally, the dependent or response variable is dichotomous, such as presence/absence or
success/failure. Discriminant analysis is also used to predict group membership with only two
groups. However, discriminant analysis can only be used with continuous independent
variables. Thus, in instances where the independent variables are a categorical, or a mix of
continuous and categorical, logistic regression is preferred.

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

35
In our case, the study has been directed to judge the effectiveness of marketing strategies of
PVR Cinema. Data for this has been collected from 100 respondents (50 out of 100 are satisfied
with the marketing strategies and 50 are not satisfied) variables for checking the effectiveness
of marketing strategies are taken as

Variable 1 = Robust Infrastructure,

variable 2 = Soothing Ambience,
variable 3 = Safe Security System,
variable 4 = Premium Positioning of Cinema in Multiplex Industry,
variable 5 = Great Level of Comfort,
variable 6 = Easy Availability of Tickets,
variable 7 = Brilliant Seating and Projecting Arrangement,
variable 8 = Impressive Picture Quality,
variable 9 =3-Way surround Sound system Facility,
variable 10 = Variety of Customer Relationship Services offered,
variable 11 = Fully Air Conditioned Luxury Halls,
variable 12 = Plush and Comfort Chairs,
variable 13 = Ample Parking Space,
variable 14 = Online Ticket Booking,
variable 15 = Online Payment System ,
variable 16 =Status Symbol,
variable 17 = Fair ticket price,
variable 18 = Credit Cards acceptability,
variable 19 = Self selection of Seats,
variable 20 = Friendly Behaviour of Staff,
variable 21 = Play Hindi, English, Regional and Foreign movies,
variable 22 = Variety of Food Joints,
variable 23 = Suitable Location of PVR cinema,
variable 24 =, Quality of services offered,
variable 25 = Number of movie shows running in a day,
variable 26 = Multi-screens,

36
variable 27 = Blend of retail and entertainment,
variable 28 = Availability of different prices of tickets,
variable 29 = Bulk Bookings, variable 30 = Source of full Entertainment,
variable 31 =Discount offers,
variable 32 = Availability of Rest Rooms,
variable 33 = Candy Bars ,
variable 34 = Tele-booking facility,
variable 35 = Celebrity Factor,
variable 36 = Impressive Advertisement,
variable 37 = Premiers of new releases are organized,
variable 38 = Proper Care of Hygiene,
variable 39 = Separate section for kids entertainment

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

LOGISTIC REGRESSION VARIABLES VAR00001 /METHOD=ENTER VAR00002

VAR00003 VAR00004 VAR00005 VAR00006 VAR00007 VAR00008 VAR00009
VAR00010 VAR00011 VAR00012 VAR00013 VAR00014 VAR00015 VAR00016
VAR00017 VAR00018 VAR00019 VAR00020 VAR00021 VAR00022 VAR00023
VAR00024 VAR00025 VAR00026 VAR00027 VAR00028 VAR00029 VAR00030
VAR00031 VAR00032 VAR00033 VAR00034 VAR00035 VAR00036 VAR00037
VAR00038 VAR00039 /SAVE=PRED PGROUP /CLASSPLOT /CASEWISE
/PRINT=GOODFIT CORR ITER(1) CI(95) /CRITERIA=PIN(0.05) POUT(0.10)
ITERATE(20) CUT(0.5).

37
 Case Processing Summary

Unweighted Casesa N Percent

Selected Cases Included in Analysis 100 100.0

Missing Cases 0 .0

Total 100 100.0

Unselected Cases 0 .0

Total 100 100.0

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

cases.

Dependent Variable Encoding

Original
Value Internal Value

.00 0

1.00 1

Block 0: Beginning Block

Iteration Historya,b,c

Coefficients

Iteration -2 Log likelihood Constant

Step 0 1 138.629 .000

a. Constant is included in the model.

b. Initial -2 Log Likelihood: 138.629

c. Estimation terminated at iteration number 1

because parameter estimates changed by less than .
001.

38
 Classification Tablea,b

Predicted

VAR00040
Percentage
Observed .00 1.00 Correct

Step 0 VAR00040 .00 0 50 .0

1.00 0 50 100.0

Overall Percentage 50.0

a. Constant is included in the model.

b. The cut value is .500

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

Variables in the Equation

B S.E. Wald df Sig. Exp(B)

Step 0 Constant .000 .200 .000 1 1.000 1.000

Model Summary

Cox & Snell R Nagelkerke R

Step -2 Log likelihood Square Square

1 78.618a .451 .602

a. Estimation terminated at iteration number 7 because

parameter estimates changed by less than .001.

39
 Hosmer and Lemeshow Test

Step Chi-square df Sig.

1 5.001 8 .757

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

Classification Tablea

Predicted

VAR00040
Percentage
Observed 0 1 Correct

Step 1 VAR00040 0 40 10 80.0

1 8 42 84.0

Overall Percentage 82.0

a. The cut value is .500

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

40
 Casewise List

Observed Temporary Variable

Case Selected Statusa VAR00040 Predicted Predicted Group Resid ZResid

1 S 0 .055 0 -.055 -.241

2 S 0 .034 0 -.034 -.187

3 S 0** .527 1 -.527 -1.055

4 S 0 .236 0 -.236 -.557

5 S 0 .090 0 -.090 -.315

6 S 0 .051 0 -.051 -.233

7 S 0 .384 0 -.384 -.789

8 S 0 .082 0 -.082 -.299

9 S 0 .042 0 -.042 -.210

10 S 0 .014 0 -.014 -.119

11 S 0 .074 0 -.074 -.284

12 S 0 .211 0 -.211 -.517

13 S 0 .007 0 -.007 -.082

14 S 0 .463 0 -.463 -.928

15 S 0 .163 0 -.163 -.441

16 S 0 .077 0 -.077 -.288

17 S 0 .070 0 -.070 -.274

18 S 0 .249 0 -.249 -.576

19 S 0 .075 0 -.075 -.286

20 S 0** .895 1 -.895 -2.918

21 S 0 .290 0 -.290 -.640

41
22 S 0 .034 0 -.034 -.187

23 S 0** .632 1 -.632 -1.311

24 S 0 .000 0 .000 -.011

25 S 0 .058 0 -.058 -.249

26 S 0 .300 0 -.300 -.655

27 S 0 .396 0 -.396 -.809

28 S 0 .007 0 -.007 -.085

29 S 0 .204 0 -.204 -.506

30 S 0** .540 1 -.540 -1.084

31 S 0 .441 0 -.441 -.888

32 S 0 .059 0 -.059 -.251

33 S 0 .489 0 -.489 -.978

34 S 0 .050 0 -.050 -.228

35 S 0 .048 0 -.048 -.224

36 S 0 .064 0 -.064 -.262

37 S 0 .000 0 .000 -.016

38 S 0** .562 1 -.562 -1.133

39 S 0 .238 0 -.238 -.559

40 S 0 .101 0 -.101 -.335

41 S 0 .138 0 -.138 -.400

42 S 0** .645 1 -.645 -1.349

43 S 0 .101 0 -.101 -.335

44 S 0** .927 1 -.927 -3.552

45 S 0** .752 1 -.752 -1.741

42
46 S 0 .382 0 -.382 -.787

47 S 0 .001 0 -.001 -.033

48 S 0** .548 1 -.548 -1.102

49 S 0 .277 0 -.277 -.620

50 S 0** .719 1 -.719 -1.599

51 S 1** .255 0 .745 1.709

52 S 1** .264 0 .736 1.671

53 S 1 .862 1 .138 .401

54 S 1 .712 1 .288 .636

55 S 1 .960 1 .040 .205

56 S 1 .589 1 .411 .836

57 S 1 .699 1 .301 .656

58 S 1 .999 1 .001 .024

59 S 1 .974 1 .026 .163

60 S 1 .860 1 .140 .404

61 S 1 .730 1 .270 .608

62 S 1 .772 1 .228 .544

63 S 1 .999 1 .001 .032

64 S 1 .905 1 .095 .325

65 S 1 .639 1 .361 .752

66 S 1 .671 1 .329 .700

67 S 1 .845 1 .155 .428

68 S 1** .184 0 .816 2.109

69 S 1 .858 1 .142 .406

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70 S 1 .648 1 .352 .738

71 S 1** .163 0 .837 2.264

72 S 1 .999 1 .001 .034

73 S 1 .615 1 .385 .791

74 S 1 .996 1 .004 .062

75 S 1 1.000 1 .000 .001

76 S 1** .420 0 .580 1.176

77 S 1 .517 1 .483 .967

78 S 1 .927 1 .073 .281

79 S 1** .398 0 .602 1.230

80 S 1 .735 1 .265 .600

81 S 1 .745 1 .255 .585

82 S 1 .586 1 .414 .840

83 S 1 .901 1 .099 .332

84 S 1 .998 1 .002 .049

85 S 1 .886 1 .114 .359

86 S 1 .933 1 .067 .268

87 S 1 .992 1 .008 .088

88 S 1 .667 1 .333 .706

89 S 1 .977 1 .023 .154

90 S 1 .902 1 .098 .329

91 S 1 .944 1 .056 .242

92 S 1** .139 0 .861 2.484

93 S 1 .985 1 .015 .123

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94 S 1 .990 1 .010 .100

95 S 1 .641 1 .359 .749

96 S 1** .359 0 .641 1.337

97 S 1 .949 1 .051 .231

98 S 1 .918 1 .082 .299

99 S 1 .571 1 .429 .867

100 S 1 .918 1 .082 .299

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

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

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CHAPTER 6
CONCLUSION

46
 FINDINGS OF THE STUDY

 On the basis of the survey it was found that maximum number of respondents are aware
about PVR cinema.

 It was found that respondents have mixed responses when they are asked about how they
know about PVR Cinema. Some said through Commercials, some said through websites,
billboards, Print Ads, Word of Mouth. But if observed most of the people have same consent
over Online Advertisement.

 It has been observed that almost all respondents have visited PVR Cinema atleast once in a
month, except a few which clearly indicates the popularity of PVR Cinema.

 It was found that most of the respondents are awared about all the marketing strategies of
PVR Cinema.

 It was observed that the maximum number of respondents lie in the age group of 15-35
years and out of them most of the visitors are students.

 Almost all respondents have annual income more than 3 lacs per annum that shows the
premium positioning of PVR Cinema.

 It was found that almost all respondents are fully satisfied with the infrastructure and the
ambience of the PVR Cinema.

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

 Online ticket booking, tele-booking and online payment system are some of the features of
PVR Cinema which was rated highest by maximum number of respondents.

47
 Most of the respondents considered that watching movie at PVR Cinema is a status symbol
due to its premium positioning in the market.

 Respondents gave positive response when it comes to the quality of services provided at
PVR Cinema.

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

 The layout and the interiors of PVR Cinema is considered as one of the most attractive
feature of PVR Cinema by the respondents.

 When it comes to the price of PVR Cinema the respondents has mixed reactions as some
considered it as high and some said that they are worth the experience.

 Almost every respondent showed their consent that the food quality and hygiene maintained
at PVR Cinema is totally superior.

 The feature that attracts respondents in the best way is the 3-way surrounds sound system
and the seating and the projection arrangement of PVR Cinema.

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 RECOMMENDATIONS

 When PVR came into being it was at the forefront of the technology involved in the
Movie business but now much more has been done in this field and PVR needs to keep
up. Like the IMAX theatre that Adlabs has introduced, PVR should also foray into new
technological advances in the entertainment business.

 Also the prices charged at the food and beverage counter are way above the MRP,
which we feel is an undue premium that is being charged.

 There should be some concession for the student class.

 While intermission, the ready to eat products like patties, popcorns, soft drinks should
only be made available to the customers by the employees, the counter get over-
crowded because of the limited space. Another option is to increase the manpower at
the time of rush.

 Many of the audiences feel that some of the services inside do not command the prices
that is charged for them, example, even the first two rows in the theatre command a
price of Rs. 150/-. Most people feel that a lesser price should be charged as sitting too
close to the screen is not as good an experience as sitting in one of the back rows.

 A food court that has a variety of offerings, not just snacks but wholesome meals as
well would greatly improve the movie going experience as people would spend greater
amount of time in the theatre and the food court could work as an ancillary to the
theatre.

 Once a movie is past its prime and running in the second or third week where sales are
low, PVR could do promotional campaigns and reduce the prices marginally for one
show a day. This would encourage more people to experience the PVR experience,
especially those that are inhibited by high prices.

49
 Special promotional campaigns for students for instance could help in attracting the vast
price sensitive student audience. Such promotions could happen once or twice a month
without diluting the superior brand image.

 Cricket is an obsession in India. PVR could capitalize the same by screening ‘hot’
matches live. For e.g. IPL matches. The growing popularity of soccer and other sports
can also be tapped. This would be an instant hit even at very high prices charged. To
add on to the excitement they could couple this with cricket contests and give prizes
like paraphernalia with autographs of eminent sportspersons.

50
 CONCLUSION

Purpose of any survey or research is to fulfill the objectives. In this study of “Effectiveness of
Marketing Strategies of PVR Cinema in influencing the customer’s decision to visit the
multiplex” the various objectives have been fulfilled by using the method of Questionnaire,
getting it filled from 100 respondents and finally analyzing the results.

After analyzing the results it has been found that marketing strategies of PVR Cinema to attract
the customers towards the brand plays an effective role in influencing the decision making of
the customer. According to the respondents every single effort made by the PVR Cinema is
worth appreciation. Their effectiveness can be observed with their market growth and their
market share in the multiplex industry. They make every possible effort to maintain their
positioning in the market. PVR Cinema doesn’t believe in the philosophy of Sit and Relax.
They keep adding something new to their services to make their customers always fully
satisfied and maintain their position as Market Leader in the industry. Though whatever PVR
Cinema is doing for their brand is adding to their popularity but there is still some scope of
improvement as the multiplex industry nowadays is full of competition with the big corporates
involved in it. Also this analysis has shown that multiplex has become the biggest source of
entertainment for the present generation. They want everything under one roof and that makes
the remarkable growth of multiplexes in India.

51
ANNEXURE

52
 BIBLIOGRAPHY

BOOKS

 Marketing management by Philip Kotler

 Unleashing the Ideavirus by Doc Searls
 CineBlitz Film Magazine
 Building Strong Brands by David A. Aaker
 Movies First PVR Magazine

WEBSITES

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

JOURNALS

 Gummerson, E., (1996), "Making Relationship Marketing Operations", International

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

53
 Varki, S. and Wong, S. (2003), "Consumer Involvement in Relationship Marketing of
Services", Journal of Service Research, Vol. 3 (6), August.
 Parasuraman, A.; Berry, L. L. and Zeithaml V., (1994), "Alternative Scales of
Measuring Service Quality: A Comparative Assessment Based on Diagnostic Criteria",
Journal of Marketing, Vol. 70 (3).

54
QUESTIONNAIRE

55
 Questionnaire
Dear Respondent,

I, Deepali Thakur, a student of MBA in D.A.V. Institute of Engineering and Technology, Jalandhar, am
conducting a survey on “Marketing Strategies of PVR Cinema”. I would be extremely thankful if you spare
some time to answer the following questions. I hereby declare that all the information collected through this
questionnaire will be kept confidential and will be used for academic purpose only.

Please tick (√) at the appropriate box.

Q1: Do you visit Multiplexes?

(a) Yes

(b) No

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

(a) PVR Cinema

(b) INOX

(c) WAVES

(d) BIG Cinema

(e) Adlabs

Q3: Have you ever visited PVR Cinema?

(a) Yes

(b) No

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

(a) Online Advertisement

(b) Word of Mouth

(c) Billboards

(d) Commercial

(e) Print Ads (magazine, newspaper)

(f) Website

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

(a) Never

(b) Once

(c) Twice

56
 (d) Thrice

(e) More than 3 times

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

(a) Promotional offers

(b) Online booking

(c) Parties at PVR

(d) Movies Newsletter and Magazine

(e) Movie Vouchers

(f) Booking through SMS

(g) Online contests

(h) Promotion through catalogs

(i) Free trials

(j) Providing Gifts to visitors

Q7: Please indicate your degree of agreement or disagreement for the following variables that affect your decision
to visit PVR Cinema.

S.No Variables Strongly Fairly Disagree Neutral Agree Fairly Strongly

. Disagree Disagree (3) (4) (5) Agree Agree
(1) (2) (6) (7)
1. Robust
Infrastructure

2. Soothing Ambience

3. Safe Security
System

4. Premium
Positioning of
Cinema in Multiplex
Industry
5. Great Level of
Comfort

6. Easy Availability of
Tickets

7. Brilliant Seating
and Projecting
Arrangement

57
8. Impressive Picture
Quality

9. 3-Way surround
Sound system
Facility
10. Variety of Customer
Relationship
Services offered
11. Fully Air
Conditioned Luxury
Halls
12. Plush and Comfort
Chairs

13. Ample Parking

Space

14. Online Ticket

Booking

15. Online Payment

System

16. Status Symbol

17. Fair ticket price

18. Credit Cards

acceptability

19. Self selection of

Seats

20. Friendly Behaviour

of Staff

21. Play Hindi, English,

Regional and
Foreign movies
22. Variety of Food
Joints

23. Suitable Location of

PVR cinema

24. Quality of services

offered

26. Multi-screens

26. Multi-screens

27. Blend of retail and

entertainment

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 28. Availability of
different prices of
tickets
29. Bulk Bookings

30. Source of full

Entertainment

31. Discount offers

32. Availability of Rest

Rooms

33. Candy Bars

34. Tele-booking facility

35. Celebrity Factor

36. Impressive
Advertisement

37. Premiers of new

releases are
organized
38. Proper Care of
Hygiene

39. Separate section for

kids
entertainment

RESPONDENT’s PROFILE

NAME - _____________________

AGE - Below 18 18 to 30 Above 30

SEX - Male Female

OCCUPATION - Service Agriculture Student

Business Others

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

CONTACT No. - _____________________

59