RESEARCH PROPOSAL

A BUSINESS PERSPECTIVE ON THE REVIVAL OF THE

CINEMA INDUSTRY IN KARACHI WITH RESPECT TO 4PS

Course Name:
Research Report

Course Instructor:
Ms. Azra Maqsood

Submitted By:
Tuba Khalid 0511230

Sara Ahmed 0511221

Khurram Navaee 0511212

Felix D’souza 0411168

Submitted On:
3rd September, 2008

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 TABLE OF CONTENTS

Background of the Research...............................................................3

Objectives and Scope of the Research..................................................6

Problem Definition & Research Questions.............................................7

Research Methodology.......................................................................8

Sampling Frame...............................................................................8

Instrumentation...............................................................................8

Data Collection.................................................................................8

Limitations & Delimitation..................................................................9

Significance of the Study...................................................................9

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1.1 Background of the Research
Cinema Industry in Pakistan has for long been a trusted hub for entertainment in
Pakistan. People of all age groups went to cinemas to celebrate and enjoy movies from
all across the world, and especially from across the border.

Cinemas had always been dear to all from the times of sub-continent. Cinema houses
were built in major cities in India and tents were placed in vast spaces or maidans to
accommodate a larger audience, giving birth to the term maidan cinema. Soon purpose-
built cinema theatre was constructed. 1947 brought the first crash to the cinema
industry. With brain drain and shortage of filming equipment the industry was left
paralyzed, until Noor Jehan came to rescue.

The '60s decade is often cited as being the golden age of cinema in Pakistan. Many A-
stars were introduced in this period in time and became legends on the silver screen. As
black-and-white became obsolete, Pakistan saw the introduction of first color films. In
September 1965, following an armed conflict between India and Pakistan, all Indian films
were taken off the screen from cinemas in Pakistan and a complete ban was imposed on
the Indian films. The ban existed since 1952 in West Pakistan and since 1962 in East
Pakistan (now Bangladesh),[26] but was exercised rigorously after the conflict. Pakistani
cinemas did not suffer much from the decision to remove the films and instead received
better viewer ship for their films. Realizing the potential, Waheed Murad stepped into the
industry. His persona led people to call him the chocolate hero and in essence, he
became the Marlon Brando and Elvis Presley of Pakistan.

Following the Bangladesh Liberation War, Pakistani film industry lost its Dacca wing and
number of cinema decreased rapidly. The period saw the exodus of more influential
workers in the industry leave for the newly found Bangladesh. This caused another
serious brain drain since the partition of India. Veterans like Runa Laila departed for
Bangladesh and the Pakistani industry was at the brink of disaster yet again. Soon
political uncertainty took charge of the entertainment industry. So vulnerable was the film
industry to the changing political landscape that in 1976, an angry mob set fire to cinema
in Quetta just before the release of the first Balochi film.

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The mid-1970s saw the introduction of video cassette recorders in Pakistan and instantly
films from all over the world were copied onto tape, and attendance at cinemas
decreased when people preferred to watch films in the comfort of their homes. This
ushered the birth of the film piracy industry. Films began to be copied on tapes on the
day they premiered in cinemas.

Islamisation smashed the industry. Growing censorship policies against displays of

affection, rather than violence, came as a blow to the industry and as a result violence-
ridden Punjabi films prevailed and overshadowed the Urdu cinema. The middle class
neglected the 'increasingly dilapidated and rowdy cinemas'. This film sub-culture came to
be known as the 'gandasa culture' in the local industry. Nevertheless influx of refugees
from across the Afghani border, who were denied the entertainment in their country, kept
the industry strongly active.

At the starts of the 1990s, Pakistan's film industry was gripped with certain doom. Of the
several studios only 11 were operational in the '70s and '80s producing around 100 films
annually. This number would lower further as studio went towards producing short-plays
and television commercials and let the industry astray in the wake of cable television. By
the early '90s, the annual output dropped to around 40 films.

Some notable productions did try and bring a revolution but were not accepted fully
amongst the lower middle class cinema audience.

The year 1998 saw the release of Noor's Choorian, a Punjabi film that grossed 180
million rupees. Directors realized there was still hope and Javed Sheikh's Yeh Dil Aap
Ka Huwa released in 2002 grossing over 200 million rupees (US $3.4 million) across
Pakistan. The monetary prospects were then realized fully and for the first time in twelve
years, investors started taking keen interest in Pakistani films.

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However, the short period of successes in the industry could not keep the cinemas
afloat, and the same industry that at one time produced more than a 100 films annually a
decade ago was now reduced to merely 32 per year, in the year 2003. Production of
Khuda K lIye helped the industry boost a little.

Associations like Film Producers Association (FPA) and the Cinema Owners Association
(CAO) of Pakistan along with actors and directors from India (Mahesh Bhatt) have been
capable of convincing the Government to lift the ban. As a result the Cinemas are fast
gaining popularity not only among middle class, but also the upper class.

Also the opening of first Cineplex in Karachi has helped boost the industry.

But the question remain, is this revival or just another one of the short bright periods this
industry has seen before?

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1.2 Objectives and the Scope of the Research
In the wake of 21st century, entertainment industry plays a major role in the world
economy. It’s a service that satisfies all who seek to soothe their senses.

Cinema is a large chunk of this industry. According to Wikipedia cinemas are defined as
a medium that disseminates moving pictures; a place designed for showing films.

Pakistan has long been deprived of this entertainment. Short periods of raise show how
willing are people for this industry to revive again. But the main question still remains to
be answered; what defines the revival of cinema in Pakistan? Does release of movies
like “Khuda Ke Liye” or “Khulay Aasman ke neechey” is the sing of revival or is it the
lifting of ban of screening Bollywood movies. If it is the revival, what must cinema
industry do to ensure it sees yet another golden age?

Answers to these questions would be explored in our research. We would analyse what
marketing mistakes have cinema industry made in the past, and suggest what must it do
to rectify them. However, this research would be strictly kept to the extent of 4P’s.

For the purpose of our research samples would be drawn from SEC A & B (upper &
middle class broadly), male & female, between the age of 20-40. The downfall of cinema
industry began with the intro of “Gandasa Culture”, and gradually the middle and upper
class pulled away. According to recent research cinema owners feel that lower class
does not pay much and entertaining them has meant severe losses. They wish to cater
to upper & middle class and are sure that they would get greater profits and also have
quality movies being filmed. This according to them would mark the revival.

For this reason we have selected the decision makers from these classes

Our scope of study is limited to Karachi only. We would also gain information from the
Cinema owners / managers to have first hand insight on the problems they face.

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1.3 Problem Definition and Research questions
Factors influencing the Cinema Industry are several. Each play a significant role and are
important to be considered if the revival of Cinema is to be seen. But for the purpose of
our research we have narrowed down the topic of research to analyzing the roles of 4ps
only. We would identify past Ps taken into consideration by the industry and what
strategy must be implemented today in light of 4Ps.

Following questions will help us study our problem statement:

 Past trends of Cinema industry of Karachi only?

 What defines the revival of Cinema Industry in Pakistan?

 Do the recent changes in the Cinema Industry mark its revival or are it yet
another short period of success to be lost in twilight soon?

 Where does the Cinema Industry of Karachi Stand at the moment?

 What factors would help the Industry gain back its repute as a stable
entertainment channel?

 What are the past mistakes and how to rectify them (only 4Ps to be analyzed)?

 What strategy shall we present for the revival to take place and bring another
Golden Age in the history of Cinema?

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1.4 Research methodology
In order to conduct the research we would adopt three methods: In-depth Interviews,
questionnaires and Focus Group Discussion.

1.4.1 Sampling Frame

The samples would be drawn from through Random and convenience sampling.
This would help us collecting most of our data during the month of Ramadan and
we would be flexible with timings considering respondents availability and
willingness to participate. The sample size for the in-depth interview is 4 (Cinema
Owners/ managers), for questionnaire 50 and for focus group 6 (male and
females belonging to SEC A and B).

1.4.2 Instrumentation
As mentioned above three instruments would be used; In-depth interviews,
questionnaires and Group Discussions.

1.4.3 Data Collection

The three instruments would be used in an order; first being In-depth interviews,
second being questionnaires questions for which would be driven from the In-
depth interviews and last conduct the Focus groups which would be audio
recorded.

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1.5 Limitations and Delimitations of the Research
The formal literature is available at hand; however the limitations exist in terms of time
frame, constraints arising from the change in timings due to Ramadan, participants
willingness and availability and the legal limitations (if any). More over the Bollywood is
more active in Lahore, but due to limitations of logistics we have kept Karachi as our
area of study. Also we are focusing only on the marketing perspective of the revival
even though other factors like political, economic, etc are also vital.

We would try and utilize articles that provide relevant facts and collect information from
any previous study or research on the related topic. This would help us in delivering an
unbiased, authentic research.

1.6 Significance of the Study

As mentioned earlier the purpose of conducting this research is to pin point what
marketing factors would help revive the Cinema Industry in Karachi. As a city, Karachi
began to grow at a fast pace in the late 60's, and the price of the property shot up
significantly. At the peak of Pakistani cinema industry in the mid 1970s, Karachi alone
had more than 100 cinema halls and more than 200 films were produced and released
each year. Now, fewer than ten of these houses remain. The same happened a little
later in Lahore as well. This caused the film industry to loose a lot of revenue, making
the industry even less attractive for investment. Many professional financiers left the
cinema industry of Pakistan.

Entertainment Industry all over the world plays significant role in delivering huge
revenues and are seen as part that provide education plus entertainment to all. Pakistan
has a large potential and huge view ship of cinemas. People miss the good old days
when cinemas were seen as a family entertainer.

Our research is going to help the cinemas identify what is missing and creating
hindrance in the path of revival of this industry. Our in-depth analysis would provide the
strategy that must be utilized by cinemas today.

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