Multiplexes

Jinesh Jayprakash Vasa – MMS-A (2008-2010)
Roll number : 59
022-28985049; +91-9769683830; jineshvasa@gmail.com
Market Analysis -
Multiplexes
Jinesh J. Vasa
MMS A – 2008 -2010.
Roll Number 59.
This report deals with the analysis and study of
Multiplexes as a part of Indian Film Industry and the
Top 5 Multiplexes.
K.J.Somaiya Institute of
Management Studies and
Research
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The Film Exhibition

Industry –
MULLTIPLEX
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INDEX
Sr. Topic Page
1. Introduction 4–5
2. Multiplexes vs Single Screens 6–8
3. SWOT Analysis 9 – 11
3.1. Strengths
3.2. Weakness
3.3. Opportunities
3.4. Threats
4. PEST Analysis 12 – 13
4.1. Political
4.2. Environment
4.3. Social
4.4. Technological
5. Marketing Mix Concept 14 – 15

5.1. Product
5.2. Promotion
5.3. Place
5.4. Price
6. Marketing Communications Mix 16

6.1. Advertising
6.2. Publicity
7. Comparative analysis of top 5 multiplexes 17 – 18
8. Individual Brands (Multiplexes) at Glance 19 – 29

8.1. ADLABS Films
8.2. INOX Cinemas
8.3. PVR Cinemas
8.4. CINEMAX Cinemas
8.5. FAME Cinemas
9. Conclusion 30
10. Recommendations 31 – 33
11. Bibliography 34
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1. Introduction
1.1. Film Industry Chain
The making of a movie forms a chain from conceptualisation to sale:
Concept
This is where a person comes up with the idea, researches the audience, the target market etc.
These include script writing, budgeting, preproduction planning, performers and others.
Distribution
This is where the person packages his idea, audience research and the team into an attractive
package and sells the idea to the distributors. They in turn give him undertakings that give him
an idea of how much money the film will make.
Financing
This is where money is raised on the basis of the undertakings that have been given by the
distributors.
Manufacture
Now the film can be made keeping in mind the quality expectations of the distributors. This
includes the production and post-production phases.
Selling
Now the completed film is delivered to the distributors and marketed to the audiences that
targeted in the first place. It includes cinema, television, video stores, and internet/DVD.
Marketing is undertaken at every step of this chain. From the time the story is thought and the
cast is selected, the marketing process begins. Directly or indirectly, the news that is spread
about the movie tells the customers about it thus promoting the movie.
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Marketing teams consist of strategists, negotiators, publicists, photographers, graphic

designers, sales reps, writers, media producers and announcers, editors, and many more
specialists who move the product from a script through the industry system into the consumer
system. Marketing a movie involves a roll-out calendar that first reaches out to industry
channels: distributors, theatrical exhibitors, sales reps, producers’ reps, and the industry
media.
In the value chain of film making, Production, Distribution and Exhibition are the three key
segments, of which, the distributor is the key stake holder. It includes distribution to the
theatres, to homes through VCD, DVD, and satellite.
We will concentrate on distribution through Theatres/Multiplexes in the report below.
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2. Multiplexes vs Single screens

With multiplex industry’s soaring business and ominous presence, can the single screen
cinema halls sustain its business?
Single screen theatres and talkies in the city are a passé now. They are inconspicuously
disappearing into oblivion in the wake of rampant multiplex culture. Besides the government
ordinance which ensures a complete entertainment tax waiver and concessions to multiplexes,
the populace audience also has deserted the single screens. The nature of multiplex
entertainment, which offers video arcades, bowling alleys and pool parlours spiced up with
their lavish and multi-cuisine food courts, does ensure that the audience is lured towards its
glitterati.
With multiplexes came the multiplex style of management: plush seats, superior sound
quality, add-ons - all at a price, of course. Consumerism has always existed. Today
multiplexes are offering better facilities to a section of the audience that can afford it.
The Indian film industry is one of the largest in the world — producing 1041 films, annually.
It is currently worth about US$ 1.8 billion and is expected to grow at a CAGR of 16 per cent
for the next 5 years to reach US$ 3.8 billion in 2011. Bollywood, the Hindi film industry,
which commands a 40 per cent share of the Indian film market, is gaining a global audience.
A spurt in the number of multiplexes in the country has changed the entire complexion of
Indian films — their budgets, the way they are made and the audiences they are made for.
Multiplexes have played a pivotal role in these developments, catering to a global taste, says
Mr. Alok Tandon, CEO of INOX.
“People with higher disposable income prefer the multiplex catering. 65% of operational cost
in a Multiplex is pertained to electricity cost the rest is staff salaries and ancillaries. I see
Multiplex culture is not only in Mumbai but all over India. They offer better choices of films
to the consumer outlet for small media products to be screened,” says Shravan Shroff,
Director Fame Adlabs.
Across the country, single-screens are being taken over and converted into multiplexes.
Here’s a stunning stat: the total number of screens in India actually declined by nearly 20 %
from 2000, even as the number of multiplex screens surged by a whopping 1300% in the
same period.
“Yes multiplexes are a growing trend in Mumbai. This will be to the advantage of the
customer making it a buyer’s market. Populated neighbourhoods will see the rise of
multiplexes and this will overcome the problem of fewer cinemas and longer travel times to
visit them. This will also help increase the distribution network of films brings it to a larger
audience thereby improving the overall collections per film. Multiplexes will also open the
market for small budget and international films which can be showcased to a select audience.
This is surely revenue making proposition,” Pooja Shetty, Director, IMAX Adlabs Dome
Theatre and Multiplex.
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The rationale for tax waiver was explained and a statement was appended to the government
notification. The statement reads as follows, “Public at large these days prefer to see movies
at home. Keeping in view this scenario, a concept of complete family entertainment centre
has emerged, popularly known as a multiplex. However, these multiplexes are highly capital
intensive, their gestation period is also longer and therefore, need government support and
incentive.”
“The tax waiver is going to kill us,” laments Vikram Chavan, Vice-president of the Pune
Exhibitors Association (PEA). Couple that with the nature of multiplex entertainment, which
offers video arcades, bowling alleys and pool parlours, and distributors may well forget that
single screen theatres exist,” he adds.
The notification states that a multiplex has the option of exit after ten years. This is not
allowed for single screen theatres, even if the whole thing is running at a total loss and should
a single screen theatre owner decide to convert the premise into a commercial complex, there
is a condition that a mini-theatre must be a part of the new structure.
“All the incentives has not only given a boost to the burgeoning multiplex industry, but the
fringe benefits like parlours and food courts, that the lies at the core of multiplex
entertainment has been successful in ably attracting the audience. As a result the single screen
theatre industry, which has quality movie and action as their centripetal guiding force, has
been dying a slow and painstaking death. There are very few loyalists who actually are
willing to purchase tickets and visit the single screen theatres, but otherwise the majority
doesn’t mind spending unreasonable amounts that these multiplexes charge,” says Mr.
Mohan Tapare, Manager Vasant theatre, Pune.
Veteran film exhibitor Manoj Desai and Executive Director of the Gaiety-Galaxy multiplex
as well as the legendary Maratha Mandir theatre, says, “The multiplex industry is a profitable
one and it is natural that the entrepreneurs will dive into it. But what is disheartening is that
under the pretext of the entertainment, they are selling other amenities like food courts,
lounge styles and pools. The core of these multiplexes is not quality entertainment, but
hollow facilities and it is really sad that people are willing to pay astronomical prices and
abandoning theatres and drama for these bromides. The current status of single screen theatre
is really concerning.”
In India, there are only 12 screens per million population compared to 117 screens per million
in the US and more than 40 screens per million for European countries.
“We will be left with b and c grade films and this will further deplete an already decreasing
audience,” states Mr. Mohan Tapare.
Theatre owners are not allowed to change the nature of their business unless they retain 33
per cent of the original number of seats in their new enterprise. Further, the government has
not considered the fact that not everyone can afford to watch a film in a multiplex considering
the high rates of admission. This will only promote a backdoor boost to video piracy.
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Many city theatres have shut shop in the last few years. Some prominent theatres on the death
list include Ganesh in Lalbaug, Satyam, Sachinam and Sundaram in Worli, Milap in
Kandivli, Milan in Santa Cruz and Sangeeta in Malad. Five more cinema halls are on their
way out. Kohinoor at Dadar and Topiwala at Goregaon too have fallen in this contest.
Steep taxes, film piracy, a recalcitrant audience and mushrooming multiplexes are spelling its
doom on single screens. The state government’s steep entertainment and property taxes are
the main scourges for exhibitors, said Nester D’Souza, the CEO of Metro theatre.
Over the past five years, 49 single screen cinemas in Mumbai and the suburbs have downed
shutters. Apsara at Grant Road and Metro at Marine Lines are among those that have been
converted into multiplexes.
Mr. Manoj Desai, says “Earlier, a theatre owner in south Mumbai paid Rs 50,000 as property
tax, while he now shells out Rs 5 lakh. Theatre owners also pay other taxes: 12 per cent for
education tax, 15 per cent for road tax, while one per cent of weekly box office collections go
to the government-owned Films Division.”
Whatever be the reason, the popular choice or the government incentives for multiplexes, the
fact that the single screens are deserted is glaringly evident and looks as if soon these single
screens will be a matter of history.
Q.1. Single Screens or Multiplex? (Survey conducted across people of various age and
gender in Metros)
Preference
Either
Single 5%
12%
Multiplex
88%
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Jinesh Jayprakash Vasa – MMS-A
A (2008-2010)
(2008
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3. SWOT ANALYSIS
For developing a sound strategic plan for the film industry mainly for the marketing and
brand recognition, first a detailed analysis is required to be done. For this reason, a SWOT
analysis of the Indian same is done below:
INTERNAL EXTERNAL
ENVIRONMENT ENVIRONMENT
Strenghts Oppurtunities
Weakness Threats
3.1. Strengths
3.1.1 Size:
The Indian film industry is one of the largest in the world — producing 1041 films, annually.
It is currently worth about US$ 1.8 billion and is expected to grow at a CAGR of 16 per cent
for the next 5 years to reach US$ 3.8 billion in 2011. Bollywood, the Hindi film industry,
which commands a 40 per cent share of the Indian film market, is gaining a global audience.
3.1.2. Government Help:
The Government in India is keen to sustain this growth and has positioned itself as a
proactive facilitator positioning
ng India as a 'hub' for the 21st century. It is removing barriers to
foreign investment, fast tracking procedures and introducing legislation to control piracy and
under-declaration.
declaration. It has granted the film sector 'industry' status and has introduced 'clean'clea
money' through state controlled banks.
3.1.3. Tax Incentives:
Government has started to use regional and national tax incentives for improving and
building the production and exhibition infrastructure and to improve investment in content
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creation and human capital. According to a government ordinance, the multiplexes need not
pay any Entertainment Tax for three years and then only 25 per cent for the next five.
3.2. Weaknesses
3.2.1. Quality of films:
The number of movies produced in India is far more than those produced by Hollywood but
the investment per film is fairly low and better quality movies are needed with more
investment.
3.2.2. Dependence on Box Office Sales mainly:
Various new areas for revenue generation like DVD, video sales, video rentals are still not
explored. Most of them depend only on box office sales. Also holiday seasons play an
important role; otherwise the turnout for an average movie is less.
3.2.3. Indian Diaspora:
Indian movies look only at audiences in the Indian Diaspora, even the audience abroad
should be viewed with the same importance.
3.2.4. Ticket Prices
The ticket prices play an important role. If the ticket prices are really high, then the number
of viewers will be less then otherwise.
3.3. Opportunities
3.3.1. Foreign Capital Investment:
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There are opportunities for foreign capital investment in projects, production houses, film
studios and film facilities, especially post-production, distribution and exhibition.
3.3.2. Funds from Non-Resident Indians:
There are opportunities for Non-Resident Indians to become equity investors in the Rupee
Fund being discussed by the Federation of Indian Chambers of Commerce and Industry
(FICCI), the Confederation of Indian Industry (CII) and investment bank Ambit. Through the
fund, individuals will be able to buy shares in the major film and television companies, invest
in projects for profit and in education and training institutions for philanthropic reasons.
3.3.3. Corporatisation:
Speeding up of the move towards corporatisation would result in good movies made in record
time with discipline and professionalism. Also the ambience will improve a lot.
3.3.4. Tax Incentives to Multiplexes:
The tax incentives to multiplexes are a good opportunity to attract audiences of all class to
watch movie having a special experience.
3.4. Threats
3.4.1. Threat of Rivalry:
Movies are released on a yearly basis on a large scale and number. Each movie has to acquire
a special position in the minds of the audiences. They need to stand out with their unique
methods to promote the movie and with the unique theme of the movie. Also the location of
the multiplex plays an important role.
3.4.2. Threat of Substitutes:
Also there is an enormous threat from the other industries of the entertainment sector viz.:
TV, Radio, Stage plays (theatre), et al. Demand and popularity for TV serials is increasing
day by day. Soon DTH will be the most important threat for the same and it will suffers
enormously”.
3.4.3. Threat of Buyers:
Movie audience is becoming more and more aware. They understand what a good movie is.
People are paying more attention to the buzz created for the movie.
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4. Pest Analysis
To understand how this service affects the environment and how it is affected by the
environment, it is necessary to do a PEST analysis. Below picture shows the same.
PEST
• Political
• Enviornmental
• Social
• Technological
4.1. Political
Given
iven the fast pace of its spread, its acumen towards cinema of diverse kinds and a long
gestation period, central and state governments are encouraging major investment and
offering sops to investors and developers who comprise real estate entities, film exhibitors
e
and distributors, film processing companies and media conglomerates. But the concessions
are accompanied with conditionality aimed to prevent concentration of multiplexes in select
regions and in some cases to promote regional cinema. A microcosm of retail culture
including significant portions of global brand names, the multiplex site makes for the kind of
up-beat
beat location that coincides with government attempts to alter conventional images and all
that compliments the bandwagon. It also enables foreign tourists to access cinema. The
Indian film exhibition sector is highly regulated and changes in regulations may have an
adverse effect on business.
Provisions of laws include:
– Requiring a minimum distance between the screen and the front row seats, which
distances were set based on large screens used in single screen cinemas and not the
smaller screens used at most Multiplex Cinemas.
– The permissible pressure at which the electrical current may be supplied to a
projector, which provision does not reflect
r the technological advances in respect of
Multiplex Cinemas.
– The reservation of playing times for a scientific film, educational film, news reel or
documentary.
– Restrictions on ticket prices in certain states
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4.2. Environmental
Upon introduction of liberalization, retail chains emerged and expanded as the momentum of
consumerism slowly rose. Consequently, retail spaces steadily gained premium over
commercial ones. Strategies to cover costs had to be revised. While rethinking products,
prices and efficiency, retailers linked promotions, fun and entertainment to penetrate bigger
chunks of the market and secure customer loyalty through customization. In a climate of
alliances and add-ons like food joints, the concept of holistic family entertainment
experiences gained patronage. In such a scenario, the immensely popular leisure activity far
older than television in India – cinema – suffering from inadequate exhibition facilities
intersected with aggressive retailing and helped prompt the multiplex. This served to revive
the diminishing cinema going habit by enticing audiences away from their television sets,
with their clutter of imagery from all over the world drawing upon the cable and satellite
boom. The desire for the image is now combined with other leisure activities and
occupations.
4.3. Social
The multiplex is preceded by and concurrent with a tradition in parallel cinema that reached a
peak in the 1970s. More recently a trend in rethinking, innovative cinema has gained
prominence for confronting pressing social issues like feudalism, sexuality, terrorism and
separatist movements within the scale of mainstream films. These films occupy the space
between the mainstream and art film, reaching audiences without the essential melodrama
typical of Bollywood films in which characters are fore grounded, on occasions distanced,
from their milieu. They have gained critical acclaim at home and abroad alongside box office
endorsement. While the attraction of some can be located in the dynamics of stardom and a
heady mix of song and dance, all interrelate the audience through commonplace situations,
traumas and experiences.
4.4 Technological
As a space commanding flexibility and an ease with manoeuvrability, the multiplex,

concurrent as it is with the digital revolution, could even aid in the promotion of the format.
Not simply by providing accompanying exhibition facilities like digital projection or digital
sound, but by making available alternative display spaces for digital films that bear potential
as a distinct genre. With the conveniences of its apparatuses, film form is already witnessing
alteration in some parts of the world, and filmmakers without access to elaborate film
equipment have received a fillip from this technology. New territories in relation to content
are being explored by a breed of filmmakers who are exploiting the ease of accessibility
accompanying the medium. Redefining film form and content, digital films could prompt and
occupy viewing spaces as differing from conventional films and embody forms like the ‘walk
through’ film that may require simultaneous projection on more than one screen, not
necessarily of conventional theatre size. So if technology advancement is not kept in mind, it
can badly hinder the future growth of the industry.
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5. Marketing Mix
A combination of marketing elements used in the sale of a particular product, the marketing
mix is centred on combining elements of the 4 P’s of marketing: product, price, place, and
promotion.
“Marketing attitude” behind each of these critical elements of engaging people in the
exchange of entertainment and enlightenment for the greenback is discussed below.
5.1. Product:
Production value is a nice global term in product marketing at multiplexes. Included in this
catch-all basket are:
Location
Ticket Rates and Show timings
Visual, Sound and Music quality
Deliverability: quality, on-budget, on-time and marketing materials
5.2. Promotion:
This part of the marketing mix is the most important in determining whether a person will
want to watch a film in a multiplex or not. For most movies aimed at a mass audience the
opening weekend is crucial to its box office performance, if it does not open well (Friday to
Sunday) then it is likely to be a flop. Therefore most of film promotion is designed to open a
movie big and then hope that positive word of mouth will kick in afterwards.
5.3. Pricing:
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The main aim for the multiplex is that more and more audience watch the film in the
multiplex. But if the price of the tickets and additional charges (like parking, snacks, games)
are not kept under control it might act as a repellent for the audiences. Also, with the rising
demand for VCDs and DVDs and also the piracy, manufacturers are bringing down the prices
too. Standard Ticket Rates for various multiplexes are:
Shows Morning Afternoon Evening Night

(Rs.) (Rs.) (Rs.) (Rs.)
Weekdays (Except first Friday of 60 - 80 80 - 120 100 - 150 120 - 180

movie release)
1st Friday of movie release (Awaited 80-100 100 - 140 150 - 180 160 - 250
Movie)
Weekends and Holidays 70 - 90 100 - 140 120 - 180 120 - 250
5.4. Place:
India's multiplex bandwagon has gone beyond the metros to redefine entertainment in B and
C class towns. "While the first phase (of the multiplex story) saw emergence of multiplexes
in metros and now this growth is spreading to Tier 2 and 3 cities like Lucknow, Indore,
Nasik, Aurangabad, Kanpur, Amritsar and so on," says Ajay Bijli, managing director, PVR
Cinemas. And PVR is not alone. Other top multiplex players like Adlabs Films (where Anil
Ambani holds a 51% stake), Inox Leisures, Shringar Cinemas (Fame multiplexes), Fun
Multiplex (of Essel group) and Cinemax India too have ventured to small towns across the
country.
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6. Marketing Communications Mix

In order to make a profit on movies they showcase, multiplexes usually engage in a
sometimes expensive marketing campaign to ensure that people will actually attend the
movie.
Several different techniques serve this end. Trailers - assemblies of excerpts from the movie -
screen prior to other movie showings. Advertisements in newspapers, on television, and
movie-oriented websites can also help. More questionable practices include movie junkets,
reliance on so-called quote whores and (allegedly) fake movie fan websites.
The marketing communications mix can be divided in the following parts:
6.1. Advertising:
The various mediums of advertising are:-
1. TV
2. radio
3. print (newspaper and magazine)
4. billboards (mobile advertising)
5. trailers (television and theatre)
6.2. Publicity:
1. Posters
2. Website
3. Press (tabloids & broadsheet) articles and reviews
4. Magazines
5. Tie-ins (coffee outlets, online booking sites, credit cards, GSM/CDMA service
providers etc)
6. Music launch, Premieres
7. Festivals
8. Mobile Phones
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7. Comparative Analysis of Top 5 Multiplexes
Market Capitalization
as on 5th Sep, 2008
4%
8%
12% Adlabs
Inox
PVR
Cine
14% 62% Fame
Net Profit Net Sales

as on 5th Sep, 2008 as on 5th Sep, 2008
10% 7%
8% Adlabs 9% Adlabs
46% INOX 36% INOX
11%
PVR PVR
25% 21%
Cine Cine
Fame Fame
27%
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Multiplex Market Capital (Rs.cr) Net Sales (Rs.cr) Net Profit (Rs.cr)
Adlabs 2348.28 270.35 45.91
INOX Theatres 525.80 153.01 24.79
PVR 439.89 199.08 10.56
CINEMAX 262.50 67.64 8.20
FAME 153.27 51.59 9.83
Multiplex # of properties # of screens
Adlabs 70 181
INOX Theatres 44 179
PVR 16 62
CINEMAX 14 39
FAME 14 48
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8. Individual Brands (Multiplexes) at Glance
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8.1. ADLABS CINEMAS
BSE: 532399 NSE: ADLABSFILM
Email : info@adlabsfilms.com Internet : http://www.adlabsfilms.com
8.1.1. Background:
This Company was incorporated on 2000 under the Companies Act as Adlabs Films Ltd to
primarily carry on the business of building, owning, and operating Multiplexes, Theatres and
entertainment centres.
8.1.2. Registered Office:
Adlabs Films Limited, Film City Complex, Mumbai – 400065.
8.1.3. Unique Selling Point: NEVER A DULL MOMENT
8.1.4. Marketing Mix:
Product:
The Product is not purely a service for Adlabs. In addition movies they provide various
eateries, shopping, games etc. Also the movies are screened at various show timings across
all the Adlabs cinemas in the city, providing consistency to the viewers at different locations.
Anil Ambani’s Reliance communications has acquired 51st Stake in this company in 2007.
There are various other companies having minority stake in Adlabs.
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Middle and Upper income strata
Discerning customer looks for quality as well good value for money.
Aspirational – wants the best for himself / herself & family.
Promotion:
Adlabs cinemas provide various offers along with tie-ups with other companies and many
other services.
1. Product launches and product displays and on-the-floor contests

2. Tie ups with the Game Zone or F&B.
3. Sampling.
4. Menu branding at the café.
5. Ticket jackets.
6. Events.
7. Movie schedules.
8. Seat Jackets.
9. Fun Innovations
Place:
They have over 35 Multiplexes in India situated. They have a knack of locating the Multiplex
where it is most needed in the city. All Cinemas are located at premium locations and
symbolize excellence in design, ambience and service. Every Cinema is equipped with state-
of-the-art equipment, so as to provide a moviegoer with a superior cinema viewing
experience.
Price:
The rates are subject to changes depending on the festivals, movies, weekdays and weekends.
But shows are cheaper in morning then other timings.
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8.2. INOX Cinemas
BSE: 532706 NSE: INOXLEISUR
Email : investors@inox.co.in Internet : http://www.inoxmovies.com
8.2.1. Background:
The Company was incorporated as a public limited company as Inox Leisure Limited' vide a
certificate of incorporation dated November 9, 1999 under the Companies act with the
Registrar of Companies, New Delhi. It has obtained the certificate of commencement of
business on February 11, 2000.
8.2.2. Registered Office.
ABS Towers, Old Parda Road, Vadodara, Gujarat - 390007
8.2.3. Unique Selling Concept: LIVE THE MOVIE
Product:
It is in the business of setting up and operating a national chain of world class multiplex
cinema theatres. The Company continues to use the latest technology for giving high quality
viewing experience to the patrons.
Promotion:
1. Product launches
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2. Product displays and on-the-floor contests

3. Tie ups with the Game Zone or F&B.
4. Sampling.
5. Menu branding at the café.
6. Events.
7. Movie schedules.
8. Fun Innovations
9. Tie ups with Banks
10. Offers
Place:
The target location and the audience for these cinemas is usually upper middle class and it is
mostly located at the posh areas of a city.
Price:
The rates are subject to changes depending on the festivals, movies, weekdays and weekends.
But shows are cheaper in morning then other timings.
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8.3. PVR Cinemas
BSE: 532689 NSE: PVR
Email : cosec@pvrcinemas.com Internet : http://www.pvrcinemas.com
8.3.1. Background:
The Company was incorporated on April 26, 1995 under the Companies Act as Priya Village
Roadshow Limited and obtained a certificate of commencement of business on December 4,
1995. On June 28, 2002 the name of our Company was changed from Priya Village
Roadshow Limited to PVR Limited consequent to the exit of Village Roadshow Limited
from our Company.
61, Basant, Lok, Vasant Vihar, New Delhi 110 057.
8.3.3. Unique Selling Concept: High-class seating, state-of-the-art screens and audio-
visual systems.
Product:
PVR is the largest exhibition player in the country and our cinemas are known for their
“consumer focus”. PVR Anupam in Saket launched way back in 1997, was India’s first
multiplex and made cinema viewing a whole new experience with high-class seating, state-
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of-the-art screens and audio- visual systems. PVR Priya has the distinction of having the
widest screen in India.
Promotion:
They brought premiere movie viewing to India with the exclusive Europa Cinema and Lounge at PVR Gurgaon
and introduced Gold Class Cinemas in India at PVR, Bangalore. The former promises the very best in world and
local cinema and pampers its patrons with food and beverages served at the seats. The Gold Class Cinemas too
provide excellent pre-cinema experience and scrumptious food and beverages. The two-ultra luxurious,
exclusive auditoriums at PVR Bangalore are each equipped with 32 plush and fully reclining seats with
generous legroom. And they plan to take the concept to other cinemas across the country too.
Place:
Every geographical segment comes with different psychographics. In Mumbai the movie
going habit is far higher in terms of the number of visits to a theatre per year as compared to
Delhi. That’s not surprising given the fact that Mumbai is the country’s capital for Hindi
movies that guarantees livelihood to so many of its residents. Film watching is a part of most
Mumbaikar’s DNA and that is the one clear and present difference that can only work in their
favour. Company now operates and manages 82 screens across the country spread over Delhi,
Haryana, Karnataka, Uttar Pradesh, Andhra Pradesh, Maharashtra, Gujarat and Madhya
Pradesh.
Price:
During the year under review this Company had launched a new brand of cinema called PVR
Talkies to cater the demand of the cinema viewing public in class B & C cities at a lower
price range of Rs. 40 to Rs. 60 for an enhanced movie viewing experience.
The total number of watched movies at the cinemas during this year was 14.73 million, as
Compared to 8.78 million in the previous year. The average occupancy in the cinemas during
the year was 43% as compared to 46% in the previous year. The Occupancies of the cinemas
which operated for full year both in 2005-06 & 2006-07 increased from 46% to 49%.
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8.4. CINEMAX Cinemas
BSE: 532807 NSE: CINEMAX
Email : investor@cinemax.co.in Internet : http://www.cinemax.co.in
8.4.1. Background:
This Company was incorporated on May 22, 2002 under the Companies Act as Cineline
Entertainment (India) Private Limited to primarily carry on the business of building,
owning, and operating Multiplexes, Theatres and entertainment centres. The name of the
Company was changed to Cinemax Cinemas (India) Private Limited on December 23, 2005.
They were converted to a public limited company by a resolution of the members passed at
the AGM held on June 12, 2006. The fresh certificate of incorporation consequent to the
change of name of our Company was issued by the RoC on July 27, 2006.
8th Floor, 349 Business Point, Western Express Highway, Andheri (East), Mumbai 400069.
8.4.3. Unique Selling Concept : ENJOY and RELAX (RED LOUNGE)
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Product:
They have targeted the people who are watching movies for sheer comfort and experience.
They have met the demand really well for the service they are providing.
Promotion:
All the theatres have their unique features. Cinemax (Wonder Mall) that was the first
multiplex to come up in Thane, has a picturesque fountain up front and Cinemax (Sion) a
wonderful garden terrace and cafe. Cinemax (Goregaon) has distinctive river slope seating
while Cinemax in Andheri (East) boasts of a curved auditorium with each seat at the same
angle from the screen. As far as competition goes, it’s always healthy and considering that a
second theatre (Fun Republic) didn’t result in a big hit to the business of the existing cinema
(Fame), I don’t think our presence in the area is cause for undue concern.
Place:
This is wonderfully segmented, although the location is in suburbs, it introduced the concept
of RED LOUNGE, giving a whole new experience of comfort.
Price:
They have priced the tickets at less than Rs 100 in Nashik (Non-metros), while in its Mumbai
property the average ticket price is Rs 150 (metros). Also, revenues from food and beverages
(F&B) and advertisements are lower in smaller towns. According to Sampat of Cinemax,
F&B revenue constitute 15-20% in non-metros compared to 20-25% in metros. "While ad
revenue in metros would be 10%, non metros would yield 5%," he adds. "Since my margins
in food and beverages are as high as 65%, lower F&B revenues from the segment, would
delay my break even in B and C class cities," murmurs a multiplex operator who doesn't want
to be named.
Also although the ticket rates are in sync with other cinemas, the Red Lounge provides a
whole new comfort zone at a steep price.
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8.5. FAME Cinemas
BSE: 532631 NSE: FAME
Email : contact@famecinemas.com Internet : http://www.famecinemas.com
8.5.1. Background:
They were incorporated on October 26, 1999 as a private limited Company under the name
shringar group later changed their name to Fame India.
Fame Adlabs, 2nd Floor, Andheri Link Road, Mumbai – 400053.
8.5.3. Unique Selling Concept : Ambience and Premiers
Product:
Shringar Cinemas made its foray into the world of multiplexes with Fame Adlabs, which
was launched in Mumbai in 2002. In quick succession, within the next 2 years, doors of Fame
Malad, Fame Nashik and Fame Kolkata were opened to the public. Not only did these
multiplexes change the landscape of Mumbai and Nashik, they also set unparalleled
benchmarks as the city’s finest entertainment destinations. Their sole mission is to provide
our patrons a unique movie viewing experience. It will be their constant endeavour to
improve and innovate every aspect of our theatres, in order to make it a truly distinctive
experience.
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Promotion:
Fame Cinemas constantly endeavours to bring in the highest quality of entertainment to
Mumbai's film going audience. Fame has transformed the experience of cine goers into a
pleasant, very user-friendly and delightful experience. Given the commitment to the quality
of service & films being screened, there is little wonder then that, Fame has a burgeoning set
of loyal customers who love getting pampered here.
Watching a movie at Fame Cinemas is like taking a short vacation. There is a cool ambience,
quality service and convenience in booking i.e. you can engage in cashless booking
transactions. There are even more facilities for booking tickets.
1. Mobile Booking
2. Festivals
3. Tie ups with service providers
4. Brand recognition
The latest promotion is the tie-up with Vodafone. Here the Vodafone subscriber have a send
an SMS to 56789 with text TUESDAY M on Tuesdays and they will receive a code instantly.
They have to show this code at the cinemas on Tuesdays only and avail one ticket free for
every ticket bought.
Place:
Fame Thakur Movie is the company’s seventh property in Mumbai, including Fame Adlabs
Versova, Fame Inorbit Malad, Fame Raghuleela Kandivali, Fame Thakur Kandivali, Fame
Nakshtra Dadar and Fame Dahisar.
Countrywide, Shringar Cinemas will be doubling its multiplexes to 22 in the current fiscal
with an investment of Rs 60,000-70,000 per seat. Shringar plans to open 50-60 multiplexes
with around 300 screens in the next five years across the country.
Price:
It was the trend setter of reducing rates for the morning shows and segmenting ticket rates
according to show timings.
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9. Conclusion
Once in place, the multiplex developed a counter to the unitary propensity of the single
screen hall, founded on exclusion, perpetuating homogeneity and cultivating committed
audience segments. While single screen cinemas identify themselves with films of particular
kinds, say the Hindi masala and blockbuster, the English, or the porn movie, the multiplex
has capitalised on an inclusive tendency to motivate and assemble diverse audiences.
On the one hand it has contained the influence of embourgeoising forces within its edifice,
allowing on its screens the interplay of alternative and mainstream or conventional strains.
Further it has limited contact with the West to no more than the fashioning of its site,
preventing the hegemony of either Hollywood blockbusters as the result of a partial global
encounter, or conventional Bollywood films that enjoy a pan-linguistic and cultural appeal
cutting across regional, religious, class and other variants. On the other hand, it has remained
an urban, largely middle and upper middle class leisure pursuit, with its highly priced tickets
excluding the masses crowded in the lower regions of the income graph.
While the masses take to cinema readily, given their financial capacity and lack of
identification with the plush appearance, products and services at the multiplex – in any case
targeted at the socially and economically mobile sections – this numerically significant chunk
of audience has remained confined to the outer edges of the multiplex experience. And it is
unlikely that the dynamics of the multiplex in its present avatar will manage to secure their
participation. Spatially too, multiplexes can mostly be spotted in affluent neighbourhoods,
within the easy reach and concentration of young audiences.
So far a nascent experience, the number of multiplexes is soon slated to rise sharply. The full
impact of its rapid spread, particularly over the last two years, is yet to be determined given
the long gestation periods and concentration in and around selected pockets. As a result, it is
too early to draw any conclusions about its impact or chart any definite course for its future.
Going by the variables that are emerging in response to the needs of immediate audiences,
and the fact that in its present form it has acknowledged cinema as composed of diverse
possibilities, the multiplex may in the future enhance segmentation and result in branded
theatres exhibiting particular fare, say the art, mainstream, or foreign films, maybe even
documentaries. The mechanisms of competition would then come into operation and
influence aspects such as ticket pricing.
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10. RECOMMENDATIONS
The Indian film industry’s immense potential for growth is very evident. The ingredients for
success are present but the growth drivers need to be enabled by the Government and the
industry through implementation of the various regulatory and policy measures. The industry
will then be able to realise its dreams of becoming globally competitive and establish the
country as a significant player in the global entertainment (film) industry. The government
also needs to deal with topics as diverse as fighting copyright theft, insurance and niche
broadcasting to radio programming, scripting and the new frontiers in filmmaking.
Based on the SWOT analysis done in the previous chapter, following steps are suggested to
improve the film industry and thus help marketing of movies.
10.1. Expansion in exhibition infrastructure
At 12.5 screens per million people, film exhibition infrastructure in India is much lower than
in developed countries and woefully inadequate for the large population. The average seating
capacity of a theatre in India is between 700 and 800. General attendances are only 35% of
capacity. The high level of taxation has led to under investment in the exhibition
infrastructure resulting in decrepit cinema halls. India has seen a decline in cinema attendance
due to poor cinema content and an inadequate film exhibition infrastructure. Thus to sell their
movie the film industry needs to explore other revenue streams such as home video, DVD
sales and rentals, cable television rights, pay per view, video on demand and merchandising.
In order to boost revenues, there is a compelling need to expand and spruce up the exhibition
infrastructure.
10.2. Ceilings on ticket rates
Pricing of a ticket is a state subject and regulations for pricing differ from state to state. This
regulation, present in some states, has rendered operations of numerous theatres unprofitable.
While some of the states like Maharashtra and Delhi do not have restrictions on pricing,
certain states still control it. In the Southern states where ticket prices are fixed by the
collectorate, theatres owners are not allowed to freely price tickets. High taxation has also led
to exhibitors under-reporting the levels of ticket sales to avoid paying taxes and sharing the
box office profits with the producers/directors and distributors This has led to a parallel
marketing of tickets in these states, more so in the rural areas, causing significant loss of
revenues to the state.
The state governments should thus consider doing away with this regulation.
From its present shape, there only emerge more queries than any concrete predictions. Will
the rapid spread of the multiplex and its concentration in particular zones with audiences
constituting existing and potential markets for the retail entities supporting the multiplex,
emerge as the dominant trend, and push doors for further segregation and institutionalization
of segmented audiences, leading to branded multiplexes? Or will encouragement from the
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various governments drive away the multiplex, aiding its penetration into other urban and
semi urban, non-affluent territories? Will the multiplex alter existing film form so as to align
with its own plush and colourful appearance? Or will it encourage alternative films?
Its dispersal away from well-heeled spaces is crucial if the intention is for it to emerge as at
least a pan-urban, if not a pan-Indian experience. Well meaning as government policies may
be, without their committed implementation and in the absence of the shopping mall culture
in other locales, the possibilities of the multiplex there remain suspect. But in the meanwhile
cinema stands redefined for the Indian viewer as composed of fare other than the regular
three-hour film. From the present assortment at least, sporadic and transitional as it may be,
there are definitely more films to choose from. And the choices aren’t merely linguistic.
10.3. Technological Advancement:
With the introduction of DTH, they will have will have to make use of the new technology
for better quality, without which the business can be impacted. Also, the main reason for
watching movie in multiplex is the experience and the quality, unless they come up with an
idea to cater the high demands of the consumer, they will lose in the race of such a
competitive environment.
10.4. Way forward:
• Over the next 18-24 months, 5 of the largest multiplex operators in India mentioned earlier
are likely to commercialize approximately 200-240 screens spread across 50- 60 new
multiplexes.
• These multiplexes will have a cumulative seating capacity in excess of 55000-60000.
• There will also be an increase in number of multiplexes operated by smaller players, who
constituted 66% of total multiplexes as of march 2007.
• It is estimated that number of operating multiplexes in India will increase by 80-100% by
end of 2010.
• By the end of 2009, 135+ multiplexes will house more than 160,000 seats spread across
500+ screens.
• These multiplexes will have significant direct positive impact on the business economics of
film production, financing, distribution and exhibition and indirectly on other ancillary
markets.
10.5. Major Suggestions
Most of the movie audience watch a movie for pleasure and prefer watching a comedy
movie. Since emotional movies are already plenty for people to watch on television and
also people need to divert their minds from the tension-filled world, more of light,
comedy movies should be made. And, the story of the movie shouldn’t be ignored at all.
It is seen that the mass channel for creating awareness about the movie is television which
should be used more effectively by promotion through TV serials, advertisements, etc.
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Also, the widely used newspaper i.e. TOI (in Mumbai), can be used as a medium for
promotion.
Word of Mouth being the most influential on the people for making decisions should be
tackled properly. Negative word of mouth should be curbed by encouraging star premiers,
freebies, newspaper reviews, and such other steps.
There are number of Growth drivers responsible for the expected increase in the number
of multiplex cinemas, if taken into proper consideration, can help in meeting the
demands. They are as follows:
An increase in disposable income in the hands of an ever-expanding Indian middle
class
Favourable demographic changes
Organised retail boom
Entertainment tax benefits for multiplex cinemas
Increase in the number of high grade Hindi films.
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11. BIBLIOGRAPHY
http://www.india-seminar.com – Aparna Sharma
http://www.moneycontrol.com – Market Research
http://www.adlabsfilms.com – Locations and Prices
http://www.inoxmovies.com – Locations and Prices
http://www.pvrcinemas.com – Locations and Prices
http://www.cinemax.co.in – Locations and Prices
http://www.famecinemas.com – Locations and Prices
http://www.rediff.com/money - 24th Jan, 2008.
http://rohanrrao.wordpress.com – 13th October, 2007.
http://www.screenindia.com – Interviews, Oct 2006.
http://www.google.com – Other information
http://www.asianadage.com
http://www.shringar.co.in
http://www.indiantelevision.com
http://www.indiescene.net
http://www.seattletimes.nwsource.com
Media release, May 03, 2005, New Delhi – BBC World’s Talking Movies
D’Essence Consulting - Report for 2005 and 2007.
Statistical Analysis – Yes Bank.
MAGAZINES:
BUSINESS INDIA – JULY 7 TO 20
THE WEEK – September 11, 2005
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Jinesh Jayprakash Vasa – MMS-A (2008-2010)

The Film Exhibition

2. Multiplexes vs Single Screens 6–8

5. Marketing Mix Concept 14 – 15

6. Marketing Communications Mix 16

7. Comparative analysis of top 5 multiplexes 17 – 18

8. Individual Brands (Multiplexes) at Glance 19 – 29

The making of a movie forms a chain from conceptualisation to sale:

Marketing teams consist of strategists, negotiators, publicists, photographers, graphic

We will concentrate on distribution through Theatres/Multiplexes in the report below.

2. Multiplexes vs Single screens

3.1.2. Government Help:

3.1.3. Tax Incentives:

3.2.1. Quality of films:

3.2.2. Dependence on Box Office Sales mainly:

3.2.3. Indian Diaspora:

3.2.4. Ticket Prices

3.3.1. Foreign Capital Investment:

3.3.2. Funds from Non-Resident Indians:

3.3.4. Tax Incentives to Multiplexes:

3.4.1. Threat of Rivalry:

3.4.2. Threat of Substitutes:

3.4.3. Threat of Buyers:

As a space commanding flexibility and an ease with manoeuvrability, the multiplex,

Ticket Rates and Show timings

Visual, Sound and Music quality

Deliverability: quality, on-budget, on-time and marketing materials

Shows Morning Afternoon Evening Night

Weekdays (Except first Friday of 60 - 80 80 - 120 100 - 150 120 - 180

Weekends and Holidays 70 - 90 100 - 140 120 - 180 120 - 250

6. Marketing Communications Mix

The marketing communications mix can be divided in the following parts:

The various mediums of advertising are:-

3. print (newspaper and magazine)

4. billboards (mobile advertising)

5. trailers (television and theatre)

3. Press (tabloids & broadsheet) articles and reviews

6. Music launch, Premieres

7. Comparative Analysis of Top 5 Multiplexes

Net Profit Net Sales

Adlabs 2348.28 270.35 45.91

INOX Theatres 525.80 153.01 24.79

PVR 439.89 199.08 10.56

CINEMAX 262.50 67.64 8.20

FAME 153.27 51.59 9.83

Multiplex # of properties # of screens

INOX Theatres 44 179

8. Individual Brands (Multiplexes) at Glance

8.1. ADLABS CINEMAS

BSE: 532399 NSE: ADLABSFILM

Email : info@adlabsfilms.com Internet : http://www.adlabsfilms.com

8.1.2. Registered Office:

Adlabs Films Limited, Film City Complex, Mumbai – 400065.

8.1.3. Unique Selling Point: NEVER A DULL MOMENT

8.1.4. Marketing Mix:

Middle and Upper income strata

Aspirational – wants the best for himself / herself & family.

1. Product launches and product displays and on-the-floor contests

8.2. INOX Cinemas

BSE: 532706 NSE: INOXLEISUR

Email : investors@inox.co.in Internet : http://www.inoxmovies.com

8.2.2. Registered Office.