Professional Documents
Culture Documents
MANAGEMENT
NEW DELHI
THESIS
Brand
Submitted To: -
Submitted By:-
SANIYA MALIK
BATCH : PGP/ SPRING SUMMER
Thesis Guide: -
YEAR
SPECIALISATION: MARKETING
: 2005-2007
ABSTRACT
OBJECTIVE OF THE RESEARCH :
Studying the rise of booming entertainment industry. Nowadays as we know that
entertainment industry has become an increasingly popular marketing communications
vehicle therefore we need to investigate if its actually beneficial to a firm and its brands.
Scrutinize the effect of using the TV celebrities in building brand awareness, brand
image, and corporate image and its use as an established communications instrument.
Evaluate the efficacy of both as a marketing communication tool. i.e. analyze the growth,
use and effectiveness of entertainment industry vis a vis the TV celebrities to market
products
Market orientation is one of the primary methods of advocating increase in sale whilst
maintaining customer satisfaction .Market orientation is a construct which places the
customer central to the operations of the firm and is designed to collect information to
understand the customer and so tailor the product-service offering to best meet their
needs. The primary objective of this thesis is to resolve the gaps between the external and
internal market orientation in an organization to optimize the branding strategy.
Research Methodology
The best place to start with is the customer itself. We will make an attempt to find what
do customers expect in PVR complexes for a complete family entertainment experience:
Market scope :
Study on cineplex market scope in NCR in next few years.
Competitors and others cineplexes in offering
Deciding the "win" factors for PVR
Offering free tickets in these stalls to customers giving good feedback .
ii
Customer Stalls : stalls at pvr cineplexes taking feedback from customers in intermissions
or before movies about what are their expectations.
Providing a "Family Experience"
Extra attractions in PVR's like bowling alleys, video games for kids
Getting best movies and customer feedback on which recent movie they wana see
External Study of competitors and what they are doing new and exclusive.
Scope of the Thesis Work
This research would mainly focus on the strategies adopted by PVR CINEMAS. The
internal and external market orientation would be studied .considering their widespread
use its imperative to study how effective they are as an instrument for effectively
conveying the communicating message and influencing the consumers to make required
purchase decisions.
iii
ACKNOWLEDGEMENT
My sincere thanks to Prof Raghavan, who helped me to undertake this study not only
through his inputs on theoretical and practical aspects, but also by guiding me properly
and thus facilitating the existing nature of the study.
I am grateful to Ms Manpreet Kaur and Prof Rekha, who are responsible for my interest
in this area largely as a result of their thought provoking lectures. I would further like to
thank Mr Vijay Boddu, Thesis Deptt, for giving me valuable inputs for the completion of
my thesis.
I would also take this opportunity to thank Dr M.K Chaudhary for giving us such a
rewarding experience in IIPM. My gratitude goes to the numerous people (friends and
fellow colleagues) who helped me in the completion of my report. Last but not least, I
would like to thank Prof Sumanto Sharma for giving me support and to my institute,
IIPM, New Delhi , all the faculty and my fellow post graduates, who have been a
constant source of encouragement.
iv
TABLE OF CONTENTS
EXECUTIVE SUMMARY
The thesis study is titled "BRAND POSITIONING OF PVR CINEMAS". The study
involves the exhaustive insight study as to what parameters make PVR cinemas a market
leader in the mind of the consumers.
The objective of the study as title suggests is to know the position of PVR CINEMAS
in the minds of the customers in NCR. To achieve the set objective, the study entailed a
survey of 50 respondents based on a convenience sampling. The survey was carried out at
different locations in New Delhi region. The questionnaire was based on a set of
parameters of Pull and Push strategy such as price, performance, brand image and
performance such as showroom looks and attitude towards the customers, which helped
to gather the consumer perception about PVR and the factors influencing people to visit
PVR often.
The results of the survey were then analyzed to gauge the consumer preferences. The
overall results indicated that though consumers considered PVR as a market leader in
NCR, there are competitors who are expanding so even PVR has to constantly provide
better service and open new theatres to be ahead of competition.
INTRODUCTION
A product's position is how potential buyers see the product. Positioning is expressed
relative to the position of competitors. The term was coined in 1969 by Al Ries and Jack
Trout ."Positioning" is a game people play in todays me-too market place" in the
publication Industrial Marketing. It was then expanded into their ground-breaking first
book, "Positioning: The Battle for Your Mind".
Positioning is something (perception) that happens in the minds of the target market. It is
the aggregate perception the market has of a particular company, product or service in
relation to their perceptions of the competitors in the same category. It will happen
whether or not a company's management is proactive, reactive or passive about the ongoing process of evolving a position. But a company can positively influence the
perceptions through enlightened strategic actions.
In marketing, positioning has come to mean the process by which marketers try to create
an image or identity in the minds of their target market for its product, brand, or
organization. It is the 'relative competitive comparison' their product occupies in a given
market as perceived by the target market.
Re-positioning involves changing the identity of a product, relative to the identity of
competing products, in the collective minds of the target market. De-positioning involves
attempting to change the identity of competing products, relative to the identity of your
own product, in the collective minds of the target market.
3. Identifying the attributes (also called dimensions) that define the product 'space'
4. Collecting information from a sample of customers about their perceptions of
each product on the relevant attributes
5. Determine each product's share of mind
6. Determine each product's current location in the product space
7. Determine the target market's preferred combination of attributes (referred to as
an ideal vector)
8. Examine the fit between:
o
9. Position
The process is similar for positioning your company's services. Services, however, don't
have the physical attributes of products - that is, we can't feel them or touch them or show
nice product pictures. So you need to ask first your customers and then yourself, what
value do clients get from my services? How are they better off from doing business with
me? Also ask: is there a characteristic that makes my services different?
Write out the value customers derive and the attributes your services offer to create the
first draft of your positioning. Test it on people who don't really know what you do or
what you sell, watch their facial expressions and listen for their response. When they
want to know more because you've piqued their interest and started a conversation, you'll
know you're on the right track.
Positioning concepts
More generally, there are three types of positioning concepts:
1. Functional positions
o
Solve problems
2. Symbolic positions
o
Self-image enhancement
Ego identification
Affective fulfillment
3. Experiential positions
o
LITERATURE REVIEW
BOOK - MARKETING
AUTHOR JAMES H MYERS
PUBLISHER Mc GRAW-HILL INTERNATIONAL EDITIONS
Modern marketings answer to the problem of selling parity products is what known as
POSITIONING. The basic idea behind positioning is that any product or service can
distinguish itself from others by claiming some unique position in the market. This
position does not need to be based on clearly superior overall performance or quality it
could be that one companys product has a minor feature or it does not represent a major
product difference.
Product could establish its own position in the market. This product would represent the
IMAGE of the product-what the product stands for, what it delivers especially well-as
seen through the eyes of the customer. An advertising executive observedTo succeed in our over-communicated society, a company must create a position in the
prospects mind. A position that takes into consideration not only its own strengths and
weaknesses, but those of its competitors as well. Advertising is entering an era where
strategy is king.
Positioning is basic selling concept used to motivate consumers to select a given product
over that of the competitor. The greater the number and strength of the competitive
brands ,the greater the need for positioning to foster distinction between a given product
and all others in the same product category.
The basic idea of positioning has recently been extended into a consideration that each
brand in a product category has an entire personality of its own. A company must make
every effort to find out what kind of personality profile each of its existing product or
5
service lines has. It must also expand marketing efforts to create a distinct and favourable
personality for each product or service both existing and new.
FINDING A SUITABLE POSITIONThe basic idea of positioning is rather simple, identifying the most effective position for a
particular product or service is definitely not. The research director of one of the nations
largest advertising agencies has suggested five good ways of establishing a suitable
position.
1. Preempt an important consumer need
2. Identify marketing requirements to be served by the product
3. Capitalize on the products competitive advantage
4. Convert a products weakness or liability into an asset
5. Expand or change product usage patterns
Any one of the combination of these approaches might be used as the basis for
establishing a successful position for a particular product or service. Every advertisement
for a consumer product or service has the objective of either establishing or reinforcing
some position a company wishes to claim for its offering.
Marketing planners usually feel that its important to obtain marketing research in order
to understand consumers better and to measure their perceptions of all competing brands
in a given product category. This research usually helps in establishing strong positions
that have an impact over many years of time. And a good position can make the task of
the market planner much easier and the product line much more profitable.
POSITIONING MAPSIn the case of product positioning, a small group of marketing researchers have developed
several techniques that can measure peoples perceptions of competing brands in a
product category. These measurements can then be used to produce maps that show
peoples perception in a simple graphical manner. The resulting picture is known as a
perceptual map.
Products or brands that are close together on a positioning map are known as
COMPETITIVE sets of products- they compete more directly against one another than
against other products on the map. A map of this kind shows which attribute are likely to
be most important for positioning purposes.
A very important task for marketing planners is to identify the strong possible distinctive
position that can be justified by the performance of product or service itself. Positioning
maps are thus very helpful. Marketing oriented companies almost always undertake at
least some market research to find out what benefits people want most in a product or
service and what features of the companys product or brand they see as most distinctive.
This leads to a much better understanding of peoples perceptions and suggest where a
strong position might be found.
OBJECTIVESThe market planner should consider all important objectives at the same time, to evaluate
the trade offs.
(1) Identifying market opportunities.
(2) Selecting the market targets.
(3) Positioning the product.
(4) Establishing marketing objectives.
PVR LIMITED
Company profile
Overview
PVR is Indias largest Multiplex Cinema operator by number of screens. They established
the first Multiplex Cinema in India, PVR Anupam, in Saket, Delhi in 1997 and the largest
Multiplex Cinema in India, PVR Bangalore in 2004. As of July, 2006, their
geographically diverse cinema circuit in India consisted of 18 cinemas with a total of 70
screens spread over Delhi, Gurgaon, Noida, Faridabad, Mumbai, Bangalore, Hyderabad,
Lucknow and Indore.
The brand, PVR, is one of Indias most recognized film exhibition brands. Across all their
various cinemas, there were 8.78 million patrons for the twelve months ended March 31,
2006. PVR is the only film exhibition company in India to have had an international film
exhibition operator as a strategic investor. The company was incorporated in April 1995
pursuant to a joint venture agreement between Priya Exhibitors Private Limited and
Village Roadshow Limited, one of the largest non-U.S. cinema exhibition companies in
the world with more than 1,000 screens under operation. Village Roadshows
international experience enabled them to begin their film exhibition business operations
at PVR Saket, the first Multiplex Cinema in India, using international best practices.
In November 2002, as part of Village Roadshows planned divestment of its investments
in 18 countries, it sold its entire shareholding in the Company to Priya Exhibitors Private
Limited. In March 2003, the India Advantage Fund-I managed by ICICI Venture Funds
Management Company Limited, one of the largest private equity funds in India, invested
Rs. 380 million in our Company. PVR successfully completed an Initial Pubic Offering
(IPO) in March 2006 in which 77,00,000 equity shares were offered to the public
consisting of a fresh issue of 57,00,000 equity shares and an Offer for Sale of 20,00,000
equity shares by ICICI Venture Funds Management Company Limited. The issue price
per share was Rs.225.
They also have a film distribution business through a wholly-owned subsidiary, PVR
Pictures, which acquires and distributes Indian and international films. The strategy is to
continue to distribute Hindi films in the same territories where their own cinemas are
located, and to purchase the entire suite of distribution rights including the theatrical,
satellite/television and DVD rights for international films on an all India basis.
The other 100% subsidiary of the Company, M/s CR Retail Malls (India) Pvt Ltd., will
implement the seven screen Multiplex Project at The Phoenix Mills compound, Lower
Parel, Mumbai, a prime retail and entertainment destination in Mumbai.
The unconsolidated total income was Rs. 1078.4 million in fiscal 2006. Box office
revenue (sale of tickets of films, less state entertainment taxes and plus revenue share of
sale of tickets of films) and food and beverages revenue (income from sales of food and
beverages, less sales tax/VAT), represented approximately 68.4% and 20.6% of PVRs
unconsolidated net operating income during the twelve month ended March 31, 2006
respectively. Advertisement revenue, and royalty income (pouring rights) constituted
8.2% and 1.8% respectively of the total income.
ANNOUNCEMENTS
PVR Cinemas launched its 70th screen... 2 screen multiplex at Sahara Mall
designed to bedazzle gurgaon with unmatched PVR experience.
PVR LTD. announces Interim divdend of 10% on the equity share capital for the
year 2005-06
10
PVR eyes content from across the globe... PVR Pictures acquires 15 films for
distribution in the Indian subcontinent.
PVR designs and build cinemas to suit different markets and has a range of cinema styles
that is implemented as appropriate. They introduced Cinema Europa and Gold Class
cinemas to certain Multiplexes. Cinema Europa offers a higher level of comfort than their
regular cinemas (which is referred to as "Classic" cinemas). Gold Class auditoriums are
custom built luxury cinemas with plush reclining seats, double armrests and ample
legroom. Gold Class cinema patrons are also offered a food and beverages service in their
Gold Class lounges.
Currently, they do not own any rights in the immovable property in which their cinemas
are located. They entered into long-term operation and management agreements or lease
agreements, pursuant to which the developer has delivered to us a building shell with or
without certain services such as air-conditioning and power back up and the company
carried out the rest of the work, including civil and interiors, sound and projection
equipment, electrical, plumbing, fire fighting and detection systems, furniture, fixtures
and equipment, concessions and equipment, IT related infrastructure, signs and operating
supplies.
Existing Cinemas
Currently operated or managed cinemas are as follows:
Cinema Location
Anupam Delhi
Screens Seats
Opening date
41,000
Jun-97
Priya Delhi
1,944
Jan-00
Naraina Delhi
4,830
Aug-01
Vikaspuri Delhi
3,921
Nov-01
71,310
May-03
2,504
May-04
Plaza Delhi
1,300
May-04
1,12,011
Nov-04
3,726
Mar-05
12
3,926
Feb-06
Rivoli Delhi
1,329
Feb-06
51,140
Apr-06
4,874
Apr-06
Juhu Mumbai
2,580
Apr-06
61,750
Jun-06
2,528
Jul-06
81,821
Dec-05
3,776
Nov-04
70,17,270
# The Hyderabad multiplex has 5 screens with 1371 seats. Currently, 3 screens with 926
seats are operational.
## The Juhu multiplex has 5 screens with 1260 seats. Currently, 2 screens with 580 seats
are operational.
PVR Anupam
PVR Anupam, which opened in June 1997, was the first Multiplex in India and was an
instant success on account of its strategic location and first mover advantage. It has fourscreens with 1,000 seats. It is located in Saket, an up market locality of South Delhi. The
Multiplex is located in an open air shopping area, which has become a prime leisure
destination in Delhi and has leading outlets like McDonalds, Pizza Hut, Barista, Nirulas,
Subway, Moti Mahal, Planet M, Lee and Reebok.
PVR Priya
PVR Priya is a premier single-screen cinema in South Delhi. Prior to January 2000, this
cinema was operated by the Promoters in their personal capacity. It is a single-screen
cinema with 944 seats. It is located in Vasant Vihar, an up market locality of South Delhi.
The Multiplex is located in the Basant Lok shopping and commercial complex, a prime
13
leisure destination in Delhi, which has leading outlets including McDonalds, Pizza Hut,
TGIF and Barista. The company has positioned PVR Priya as blockbuster cinema and it
is believed that it is a preferred cinema for distributors and patrons for first run Hindi and
Hollywood blockbuster movies.
PVR Naraina
PVR Naraina opened in August 2001 after it was converted from an old single-screen
cinema into a Multiplex. It has four screens with 830 seats. It is located in Naraina, which
is adjacent to densely populated catchment area that includes Naraina, Rajouri Garden
and Naraina Vihar, all of which are upper class suburbs in West Delhi.
PVR Vikaspuri
PVR Vikaspuri opened in November 2001. It has three screens with 921 seats. PVR
Vikaspuri is a part of an 80,000 square foot mall. The Multiplex caters to the residential
colony of Vikaspuri, which is a large and thickly populated residential area in Delhi. By
the time the company took over this property, the developer had spent considerable
amounts on the multiplex, which resulted in substantial capital expenditure savings for
us.
PVR Gurgaon at Metropolitan Mall
PVR Guragaon was opened in May 2003. It has seven screens and 1,310 seats including
two Cinema Europa auditoriums. It is located in the Metropolitan Mall, a prime lifestyle,
food, retail and shopping space of over 300,000 square feet in Gurgaon. This Multiplex
caters to Guragaon, an up market suburb in the National Capital Region of Delhi. Over
the weekends it attracts many customers from Delhi as well.
PVR Plaza
PVR Plaza opened in May 2004. It is a single-screen heritage cinema with 300 seats. It is
located in the central business and retail district of Delhi, Connaught Place. Plaza was
one of Delhi's oldest and most popular cinema halls, and was renovated and refurbished
14
into a smaller 300 seat cinema, with a food court on the ground floor. The cinema caters
to the transient population in Connaught Place.
PVR Faridabad
PVR Faridabad opened in May 2004. It has two screens with 504 seats. It was the first
Multiplex in the Faridabad catchment area, and is located in the Ansal Plaza Mall on the
Delhi-Agra highway.
PVR Bangalore
PVR Bangalore was opened in November 2004. It has 11 screens and 2,011 seats, and is
Indias largest Multiplex Cinema. (Source: FICCI - PWC Report, 2005). The cinema
comprises seven Classic screens with a total of 1,581 seats, two Cinema Europa screens
with 366 seats in the two Gold Class screens with 32 seats each, spread over an area of
100,000 square feet. This Multiplex plays over 50 shows every day, with screenings
starting approximately every 15 minutes. This Multiplex plays movies in six languages:
English; Hindi; Kannada; Tamil; Telugu; and Malyalam, catering to people with varied
taste and socio-cultural background. The cinema is located in the Forum Mall,
Koramangala, and is a part of 350,000 square foot shopping mall spread over four levels.
It is the prime retail and leisure destination in Bangalore, and is well located in
Koramangala, with customers from across the city.
PVR EDM
PVR EDM opened on March 31, 2005. It has three screens with 720 seats. It is located in
the East Delhi Mall in Kaushambi, on the outskirts of Delhi in Uttar Pradesh. This
Multiplex services the catchment area of East Delhi and Kaushambhi (Uttar Pradesh),
including Vaishali, Gaziabad, Sahibadbad and Mohannagar. PVR EDM is exempt from
paying state entertainment taxes until March 30, 2010 or until the exemption amount
reaches Rs. 95.33 million, whichever is earlier. PVR and the developer/cinema owner
share box office revenues of this cinema, and the companys share is reflected as Income
from revenue sharing. PVR is entitled to the entire food and beverage revenue and
advertisement revenue from this Multiplex.
15
PVR SRS
PVR SRS opened in November 2004. It has three screens with 776 seats. It is the first
Multiplex of the Company under the franchisee model. It is located in a shopping centre
in Faridabad, which has food and beverages and retail outlets.
PVR Spice
PVR Spice opened in December 2005. It has eight screens with 1821 seats. It is the
second Multiplex of the Company under the franchisee model. It is located in a shopping
centre in Noida, which has food and beverages and retail outlets.
PVR Hyderabad
PVR Hyderabad opened in Feb 2006. It has five screens with 1321 seats. It is located at
the Central Mall at Panchgutta crossing in the city of Hyderabad. Currently, 3 screens
with 926 screens are operational and balance 2 screens are expected to commence
operations shortly.
PVR Rivoli
PVR Rivoli opened in February 2006. It is a single-screen heritage cinema with 329
seats. It is located in the central business and retail district of Delhi, Connaught Place.
The cinema caters to the transient population in Connaught Place.
PVR Indore
PVR Indore opened in April 2006. This five-screen Multiplex is situated in the Treasure
Island Mall on Mahatma Gandhi Road, which is considered the prime commercial and
retail destination in Indore. A number of well established brands such as Pizza Hut,
Pantaloons, Big Bazaar, McDonalds, Archies, Levis, Crossroads and Barista are located
in the mall.
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PVR Lucknow
PVR Lucknow is located in Sahara Mall, Hazratganj in Lucknow. Hazrathganj is the key
retail and commercial hub of Lucknow. The Sahara Mall is approximately 2,27,000
square feet. development and also has other leading retail and food brands that have taken
space in the mall including Pantaloons, Big Bazaar, Marks & Spencers, Planet Sports,
Reebok, McDonalds, Pizza Hut, Levis and Allen Solly
PVR Juhu, Mumbai
The project is part of a 100,000 square feet shopping centre with Shoppers Stop as the
other anchor tenant, and serves the up-market residential area in and around the Juhu Vile
Parle Development and is close to Juhu Beach, a major tourist destination in Mumbai.
PVR Mulund, Mumba
The project is part of Nirmal Lifestyle Mall, located in Mulund, Mumbai. It is the largest
mall (approximately 500,000 square feet) in the catchment area of Mulund and has a
number of major retail and food brands, such as Shoppers Stop, Shoprite, Fashion Street
by Pantaloons, McDonalds, Pizza Hut and Caf Coffee Day as tenants. The catchment
area for the Multiplex spans the entire of East Mumbai encompassing Mulund,
Ghatkopar, Powai and Chembur.
PVR Gurgaon at Sahara Mall, Mumbai
This mall is located at one of the arterial roads of Gurgaon where there is a concentration
of retail and commercial activity. The mall has other anchor tenants such as Pantaloons
and Big Bazaar. The Multiplex aims to cater to the catchment areas of DLF Phase II,
Sector 28, and Sushant Lok Phase V.
Projects under construction and New Projects signed
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PVR has signed MOUs/ agreements with various developers for setting up multiplex
projects across the country. These Multiplexes are coming up in good quality
developments / malls, which are well located and have potential of becoming prime
entertainment, leisure and retail destinations. About 46 multiplex screens of the Company
are presently under various stages of construction and fit-outs and are expected to
commence operations over next 12 months. The list of upcoming multiplexes of the
Company is as under:
Cinemas Location
Prashant Vihar Delhi
Screens Seats
3,818
Aurangabad Maharashtra
31,156
Latur Maharashtra
31,136
61,800
61,269
71,600
41,025
31,025
71,500
Ghatkopar Mumbai
41,250
61,500
4,873
Jalandhar Punjab
41,300
Bhatinda Punjab
41,025
41,037
41,013
3,800
3,740
51,067
1,22,800
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41,200
61,200
61,250
41,000
51,250
Dehradun 2 Uttaranchal
61,500
61,500
71,300
Mysore Karnataka
62,235
62,033
41,230
Raipur Chattisgarh
41,400
41,000
51,100
41,250
Total
1,79,47,232
With the above projects the Company has a total of 250 screens signed till date (including
70 screens which are already under operation).
Management fee/franchise model
Recent high growth in the Indian organized retail market has led to increasing
developments of large-scale shopping malls that incorporate Multiplex Cinemas. Whilst
property developers may possess expertise in the construction and development of
shopping malls, they often lack the skill and experience required to successfully manage
Multiplex Cinemas. This offers us an opportunity to market and sell our expertise in the
development, operation and management of Multiplexes. Furthermore, PVR has a strong
brand name.
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The company is managing 2 multiplex cinemas under the above model. In November
2004, they began to manage a three-screen Multiplex at the SRS Mall, Faridabad. In
December 2005, also began to manage an eight-screen Multiplex in Noida.
The company intends to expand this part of business selectively. It is most appropriate in
areas where they want to make small investments and where taking a cinema on a full
operational and financial control basis, as already done with most of the existing cinemas,
may not be possible due to the developers desire to own and operate the cinema.
Subsidiary Companies
PVR Pictures Limited
PVR also operate a small film distribution business through our wholly-owned
subsidiary, PVR Pictures, which acquires and distributes Indian and international films.
The strategy is to continue to distribute Hindi films in the same territories where own
cinemas are located, and to purchase the entire suite of distribution rights theatrical,
satellite/television and DVD rights for international films on an all India basis. PVR
Pictures was acquired by them in April 2005 and PVR Pictures financial results were
consolidated with their financial results only for the twelve months ended March 31,
2006.
CR Retail Malls (India) Private Limited
CR Retail Malls (India) Pvt Ltd. Is a 100% subsidiary of the Company which will
implement the seven screen Multiplex Project at The Phoenix Mills compound, Lower
Parel, Mumbai, a prime retail and entertainment destination in Mumbai.
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HISTORY OF PVR
INDIAS LARGEST CINEMA CHAIN
It all started as a dream in the year 1997, and within a decade, the promoters have turned
the same into a 70 mm reality. Like the credits of a movie, the company would like to
share with the customers their achievements
Setting up the very FIRST multiplex in the country - Setting up a movie haven for
filmgoers in the form of the eleven screener: PVR Bangalore, India's largest ever
multiplex - Delighting not one, not two but more than 8.75 million patrons last year. PVR
now have an unmatched 68 screens across the country.
PVR says We love to entertain.
Our singular belief: Movies First.
- It's
mantra
every
single
one
of
our
1,000
employees
swears
by.
- It's a motto that helps us deliver the finest cinema experience, year after year.
From filling up our candy bars with the most scrumptious popcorns and beverages to
offering personalized service.
From raising the experience bar with super luxury Gold Class Cinemas to collaborating
with international partners to bring you the latest movies first.
At PVR, it's Movies First all the way.
21
Breaking new grounds is our specialty; here is a proud list of our Hall of Firsts:
First to bring premier movie viewing to India with the exclusive Cinema Europa
& Lounge
22
SOUTH DELHI
WEST DELHI
PVR Naraina
PVR Vikaspuri
GURGAON
GHAZIABAD
23
NOIDA
FARIDABAD
MUMBAI
BANGALORE
HYDERABAD
INDORE
LUCKNOW
24
PVR Cinemas will soon have a very firm national footprint with 250 screens across the
country. PVR will soon open cinemas in Delhi, Mumbai, Chennai, Jalandhar, Amritsar,
Ludhiana, Aurangabad, Latur and other territories.
The company will soon take the unique PVR Cinema Experience to every part of India.
PVR PICTURES
Our distribution arm, PVR Pictures, acquires and distributes Indian and International
films. As a strategy, the company intends to distribute Hindi films in the same territories
where our cinemas are located, and purchase the entire suite of content exploitation rights
including theatrical, satellite/television and Home Video for international film properties
on an all India basis.
Our cinematic journey of over a million miles has just begun
25
VISION
The companys main goals are to remain Indias largest and most preferred cinema
exhibition company. To achieve these goals, they would continue to focus on the
following elements:
Continue to provide the highest exhibition standards to achieve customer delight.
Increase the number of cinemas under our operation on a pan India basis by adopting a
price-based differentiation model, offering our patrons a superior cinema-going
experience at each price point.
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PROMOTIONAL EFFORTS
The comprehensive definition the definition of positioning :
1. The position of a brand is the perception it brings about in the mind of a target
consumer.
2. This perception reflects the essence of the brand in terms of its functional and nonfunctional benefits in the judgement of that consumer.
3. It is relative to the perception, held by that consumer of competing brands all of
which can be represented as points or positions in his or her perceptual space and
together make up a product class.
The brand is not passive but active. It acts to bring about that perception. Position
represents the whole or overall perception of the brand in that consumers mind and that
it is always a relative concept.
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CONSUMER BEHAVIOUR
Attitudes / Needs
Marketing
activities
Learning
(monory)
Situations
Culture
Perception
Problem
Recognitio
n
Subcultur
es
Motives
Informatio
n Search
Values
Consum
er
lifestyle
Evaluation
& selection
Personali
ty
Demograp
hics
Store
choice &
purchase
Emotions
Social status
Households
Reference Groups
Postpurcha
se
processes
Situations
Experiences
28
Consume behavior theory provides the manager with the proper questions to ask.
What attitudes they have about our products and our advertising.
What their hopes and dreams are for themselves and their families
29
Marketing strategy to
satisfy target consumer
needs
Consumer
research
Understanding
consumer behavior
Behavioral
theories
Regulatory policy
Informed individuals to
better understand how
societies function
All marketing strategy and tactics are based on explicit or implicit beliefs about consumer
behavior.
30
Marketing strategy as described in Figure 1-2 is conceptually very simple. It begins with
an analysis of the market the organization is considering. This requires a detailed analysis
of the organizations capabilities, the strengths and weaknesses of competitors the
economic and technological forces affecting the market and the current and potential
customers in the market. Based on the consumer analysis portion of this step, the
organization identifies groups of individuals, households or firms with similar needs.
These market segments are described in terms of demographics, media preferences,
geographic location and so forth. One or more of these segment are then selected as target
market based on the firms capabilities relative to those of the competition (given current
and forecast economic and technological conditions).
31
Outcomes
Customer
product/brand image
satisfaction
sales
Next, marketing strategy is formulated. Marketing strategy seeks to provide the customer
with more value than the competition does while still producing a profit for the firm.
Marketing strategy is formulated in terms of the marketing mix. That is it involves
determining the product features, price, communications, distribution and services that
will provide customers with superior value. This entire set of characteristics is often
referred to as the total product. The total product is presented to the target market which
is consistently engaged in processing information and marking decision designed to
maintain or enhance its lifestyle (individuals and households) or performance (businesses
and other organizations.)
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The reaction of the target market to the total product produces an image of the
product/brand sales (or lack thereof) and some level of customer satisfaction among those
who did purchase. Sophisticated markets seek to produce satisfied customers rather than
mere sales-because satisfied customers are more profitable in the long run.
Our total
product
Consume
r decision
process
Superior
value
expected
Sales
Perceived
value
delivered
Customer
satisfactio
n
Competit
ors total
products
In Figure 1-3 you see that convincing consumers your brand offers superior value
(relative to the competition) is necessary in order to mark the initial sales. However,
creating satisfied customers and thus future sales requires that customers continue to
believe that your brand offers superior value after they have used it. That is you must
deliver as much or more value than your customers initially expected. This requires an
even greater understanding of consumer behavior.
33
Personal
characteristics
Product
characteristic
s
Consumer
behavior
Marketing
strategy
Consumption
situation
34
Needs/attitudes
that
consumption decisions
influence
Consumer
lifestyle
Consumer
choices
35
PVR NEST
Projects operating under the CSR initiative of PVR Cinemas
PVR NEST, (PVR Network for Enablement and Social Transformation) is the corporate
social responsibility initiative of PVR Cinemas. At PVR Nest, they believe that
companies can make a real, effective difference in improving the quality of life in the
communities where they operate. Their vision is to work together with the government
bodies and the community, spearheading a movement for better social conditions around
us.
To begin with, PVR NEST has identified two key concern areas: disadvantaged urban
children and the deteriorating urban environment.
Three projects have been initiated to address the above:
1. PVR CHILDSCAPES
The CHILDSCAPES project seeks to transform the lives and restore the dignity of street
children through educational, social and cultural activities. The project works with a
floating population of about 75 disadvantaged children, most of whom are beggars, ragpickers or destitute.
The project has been piloted at the Vasant Vihar Shopping Centre in association with
Katha's Tamasha Roadshow and the active support of the Vasant Vihar Market Traders'
Association.
2. PVR KI PAATHSHALA
The PAATHSHALA program aims to enable economically disadvantaged children to
finish their schooling. The programme also offers academic coaching and counselling.
36
The pilot is being implemented by Literacy India , with 25 children of Village Ishapur (a
predominantly scheduled caste village in Haryana).
3. Green PVR: Valuing Nature
The Green PVR: Valuing Nature project is an effort to optimize the use of existing urban
infrastructure and public service facilities, thereby delivering a better city experience to
all citizens. It is an endeavour to demonstrate environmental conservation practices in
and around PVR Cinemas Halls. The project brings together the efforts of the
neighborhood, the Market Association, MCD and DDA.
PVR NEST: PVR Network for Enablement and Social Transformation- the corporate
social responsibility of PVR Cinemas.
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AWARDS PICTURES.
38
Indian Developer
Felicitation 2005
39
Special Award
CineAsia 2004
The Teacher's
Achievement Award 2004
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41
42
of
the
companys
overall
market
position
and
brand
image.
Most companies simply do not have the resources -- people or money -- to sustain
43
require
vendor
partners
who
assume
more
important
turn-key
looking
to
put
an
umbrella
over
their
fiefdoms.
44
The first step in organizing and rallying disparate agendas toward a singular brand
position is a market study. A meaningful brand market study is more experiential than it
is empirical. It reaches out to all relevant audiences with the power to influence a brand
position and the companys ultimate success:
Company executives: In-depth, one-on-one interviews with key company executives
from
appropriate
corporate
and
division
areas
of
responsibility.
Top customers: Visit 5-7 preferred customers to witness a day in the life of the brand.
These will be the customers who already committed to your complete offering despite the
lack of a single message.
Top losses: Where are the gaps? Interview 2-3 significant sales losses. Companies
who fit the profile of a preferred customer, but who chose a competitor.
HQ customer visits: What turns prospects on? Observers take down notes during
tours and discussions with promising prospects visiting the headquarters as part of the
sales process.
Field experience: What is the sales environment? Ride for a day or two with a few
regional-level salespeople iis done to experience the day-to-day competitive environment.
Secondary sources: What market information already exists? Access existing data
on market trends, perceptions and ranking of vendors, buyer demographics and decisionmaking protocols, etc.
Requirements for building a brand that sells
Based on the input from the market study, companies begin to discuss positioning
options. Mini-worksessions and what if meetings should produce reasonable brand
45
position hypotheses. In the book, Selling the Invisible, Harry Beckwith lists several
requirements for creating a position that has real market impact:
Focus
You cannot be all things to all people. Its about sacrifice. What one distinctive thing
will give your company an edge. A lack of sacrifice is a lack of positioning. Focus also
allows you to rally and pinpoint resources for more support.
Halo effect
Recognize that investing in one positive image will have associated impact on your
companys entire portfolio. Remember, no one ever go fired for choosing GE (General
Electric).
Start with current position
Find current customer perceptions and turn them into a benefit. Emphasizing those
issues that most relate the brand to improving the daily life of its users. If the gap
between perception and reality is too big, your customers and prospects wont make the
leap to a radically new position.
Be different
Dont just try to be better. Positioning is about clear, positive difference. The subtleties
between whose better dont stand up long enough to count. So, stand out in a parity
situation. Give prospects a real, sustainable reason to choose you.
Be distinctive
46
In a world of information overload, your brand position and message need to be unique,
hard-hitting and pertinent, as well as sensory and creative. And the customers wont
either.
If you are comfortable that your positioning options stand up to this litmus test, you will
want to entertain select feedback from some of the same audiences who participated in
the original market study.
Their qualitative responses will provide the material for an in-depth position development
plan, including some creative execution to demonstrate how the brand position will
come to life, in the day-to-day lives of company staff, customers and prospects.
47
The goal for bringing a brand to life is to make a proactive effort to drive the organization
toward aligned brand equity development -- in all facets of the customer experience.
2.
3.
manner?
48
Now comes the hard part. An ongoing, consistent commitment to making this position a
reality in the company. Will it be posters in the cafeteria, or will it be a program that
(re)aligns from the innards?
Does the organizational structure have to change to support the brand position? Will we
reprioritize product and service development based on our new market focus? Must
after-sales support networks and programs be staffed and trained differently to deliver
and
complement
our
one
face
to
the
customer?
A complete brand building program will generate significant momentum and equity that
can be leveraged across the entire company to support significantly improved prospecting
and sales activity, as well as helping create customers as advocates.
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conclusions about either their importance or size. That is done in our quantitative
segmentation research effort.
Concept Test with real or proposed brands and product positioning and priceperfomance offers. Concept testing of brand and product brands, each with a unique
brand image and positioning, further attunes our quest for market segment definition. The
response to various brand and product positioning and price-performance offers, and their
differentiated customer appeal, further refines our brand segmentation approach and
conclusions.
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The results of this multi-stage approach yields data for specific market segmentation
recommendations, and preliminary branding positioning recommendations.
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RESEARCH METHODOLGY
& REPORT OF DATA COLLECTION
PRIMARY RESEARCH
Things taken into consideration while working on the methodology is, one being the
sampling and the other being the Data analysis tools. Decision is done on the sampling
using the Sampling Design Process. The Sampling Design Process includes the following
steps:
Target population
Determining the sampling frame
Selecting a sampling technique
Determining the sample size
Executing the sampling process
1) Target population The target population is the collection of elements or objects
that possess the information sought by and about which inferences are to be made.
Tthe target population is defined precisely in terms of elements, sampling units,
extent and time.
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A
C
T
I
V
E
R
E
S
E
A
R
C
H
EAST
SOUTH
DELHI
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Questionnaire
The research has a set of structured questions which include multiple choice.
`
Data Analysis Tool
Mean is used as a statistical tool towards calculating the results in a quantitative form.
Pie Charts is used as a graphical representation of quantifying the results. This technique
is chosen due to its effectiveness in comparing large number of observations which will
make the analysis of the various factors simple and easy.
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56
57
58
Above average
Highly satisfied
Satisfied
Dissatisfied by few variety
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60
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RECOMMENDATIONS
Company can increase the sale of tickets by Attractive price offer, more Media
Publicity, etc
In all, after researching about PVR CINEMAS in all possible aspects it is concluded that
PVR should concentrate on expanding and opening new theatres but at the same time
keep on upgrading and providing quality service to the consumer who can experience
such a comfort that keeps attracting them back to PVR.
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SECONDARY RESEARCH
INTERVIEW OF VICE- PRESIDENT--
The uneven state laws are one of the major challenges. State laws differ from state
to state. Secondly, as I said, every area has its own requirement, unique requirement
so you need to understand that and adapt to that. You cant actually run your own
story and expect people to come and watch the film so that is a biggest challenge.
-Mr. Bijli, Vice President, Cinema Marketing & Promotions, PVR Limited
Movies had always been a passion for Mr. Bijli, who was recently promoted as VicePresident, Cinema Marketing and Promotions, PVR Ltd. With over 10 years experience
in the cinema exhibition industry, Bijli has been responsible for content programming and
planning to optimise revenues, acquisition of film products, strategy planning and
concepts development, brand building and creative development in his various
appointments.
QUESTIONS
You started the multiplex culture in India when you opened the first multiplex in
Saket in South Delhi. How do you look at the years gone by?
The multiplex business started in 1997 with PVR Saket, which is still one of the highest
occupied cinema halls of the country. At that point of time, when we were looking at an
outfit, which is kind of a hangout zone, we could not source anything. Then we built up
our own hangout and this particular thing became a phenomena. Post-Saket, there have
been a lot of developments. One is the advent of malls, so the combination for just
movies has changed into a combination of entertainment, shopping and eating. So, from
just a movie going concept it has become a wholesome experience in todays world. Plus,
there are a lot of other things as well; look at destinations, multiplexes has also brought in
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a big retail boom in the industry. So, wherever the multiplexes are open they have
brought in big brands.
The recent big combination is that of cinemas with a hyper mall. All these things are
making it a wholesome experience from what it was earlier. In terms of content, when we
started the multiplex business, it was a little difficult to source out content for four
screens into four or five shows a day. At that point of time, we used to play both English
and Hindi films. Now we are getting films from all over the world, we are even releasing
movies from Thailand and France, which would, of course, be dubbed in English, and we
ourselves are distributing the films.
Every year you see there is a trend of one big blockbuster. The flow has also increased
now because there is some place to play these kind of movies and there is also a lot of
experimentation in terms of project so from a Dil Chahta Hai to a Rang De Basanti
to a Khamosh Paani to an Amu have audiences.
How have you developed the PVR brand since the inception?
There are two things when you develop a brand. One is the facility and the services that
you provide to the consumers. So, every year our mantra changes. Earlier, it has been to
provide services and facilities to the consumers, how do we make him avoid the ticket
counter and get a ticket at his doorstep. We, therefore, took a lot of initiatives. We started
with the first computerised ticket system, we got the software, a complete transparent
system where every report goes to the government and the distributors. We also set up a
multimedia kiosk where you swipe a card and get the ticket, we also started tele-booking
where you punch in your credit card number and book a ticket via phone. We also started
cross-location sales. So, you can purchase a ticket for say PVR Saket from any of the
PVRs. All these initiatives are a first that we have initiated in our cinemas. Tomorrow it
may be common to other cinemas, but at the moment all these initiatives are basically to
benefit the consumers and make it convenient for him to book tickets and watch movies.
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Secondly, every cinema we build has to be classy, have the best location, best sound,
luxurious seating, etc. Everything has to be top class. Apart from that, the new mantra
that we have adopted is experiential marketing. We feel that the experience of the
consumer has to be better than the rest, thats the kind of differentiator for our cinema.
For instance, a person goes to watch Mangal Pandey and sees a contest form, he fills it
up and gets to meet Aamir Khan, or he goes to see Hanuman and there is a Hanuman
standing in front of him much to his kids delight, or maybe he wins various movie
merchandise so all these things contribute to the experiential marketing.
Moreover, we are also looking at promoting regional films or multiplex specific films
like Amu and Khamosh Paani, and are trying to develop a market for that. The next
big thing that is going to happen in the cinemas is the expansion into B and C territories.
We will be coming up with a no frills model, where tickets will be cheaper, but without
compromising on the facilities and quality of PVR Cinemas.
You said price would be cheaper. What would the variation be like?
The variation would be in terms of investment. From a consumers perspective, the seats
will be comfortable, and there will be no compromises in the projection and sound
quality. So, a viewer watching a movie in Aurangabad or Latur will find the best cinema
in town. It would come under a different brand name though, but it will be called PVR
something. Thats an extension of the PVR brand and fortunately for us, PVR as a brand
has become synonymous with cinema.
Which are the other cities that you are planning to foray into and when?
We are going to expand further in Delhi. We will be opening PVR Prashant Vihar. In
Mumbai we have already opened PVR Juhu with two screens and are coming up with
four more properties one in Mulund, one at Phoenix Mills in Lower Parel, and two
other projects in the pipeline. In the North we are coming up with two multiplexes in
Ludhiana, one each in Amrtisar, Bhatinda and Chandigarh. In the South, we are coming
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What are the forthcoming releases (Bollywood and Hollywood) lined up for 2006?
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Among the Bollywood line-up we have Krrish (Rakesh Roshan), Don (Farhan Akhtar,
Kabhi Alvida Na kehna (Karan Johar), Umrao Jaan (J.P. Dutta), Phir Dhoom (Yashraj
Films), and Sholay 2 (Ram Gopal Varma), among others.
The Hollywood line-up includes Superman Returns, Casino Royal (James Bond), Da
Vinci Code, Mission Impossible 3, Aishwarya Rai-starrer Mistress of Spice, Pirates of
The Caribbean 2, and Assassination of Jesse James, among others.
This year if you see the line up, there is one blockbuster almost every fortnight. Thats the
kind of power our business is going to get. Advertisers, too, are showing a lot of interest
and want to do innovative things. I guess everybody understands the potential of movies
so it is becoming big and big every year. The next big thing is that multiplexes will go
from metros to non-metro cities. The business is further going to expand
Any major tie-ups in the pipeline with Hollywood and Bollywood studios /
production houses?
We have already tied up with several Bollywood production houses. Another big
advantage is that with studios, producers are directly approaching us and telling us we
have got this content, we would like you to plan a marketing activity for the film and so
on and so forth. So, we are directly in touch with these producers, building up specialised
marketing and promotions for the films. With the recent change, producers and directors
are taking PVR as a hub where they can get a feedback on their films and design the next
film according to what the customer is saying. They are actually trying to understand
what the consumer thinks so that they can make a better and specialised product for that
particular segment. Thus, customer research management is being worked out in PVR.
Can you tell us the names of the houses with which you have tied up?
UTV is very prominent in coordinating marketing activities with us, so are Warner Bros,
Sony Pictures, Paramount Films and Yashraj Films. Ram Gopal Verma (RGV Films) is
very active too. Almost every person is looking at cinemas as a big medium to advertise
with.
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Do you also plan to get into film production and film distribution?
As part of our complete pyramid, the producer is at the top, then there is the distributor
and then the exhibitor. We only need exhibition and distribution and we are very happy
with that. At this moment, we just plan to focus on what is our core competence, which is
exhibition and distribution. Once we feel that now we have time to focus on other areas
we may look at that, but at this moment we are focusing on exhibition and distribution
With the other players in this segment (multiplex business) also becoming
aggressive, how is PVR gearing up to face the competition?
There is a big market here. We would welcome competition because it brings good
change and we are looking at people who are serious about the business, because
ultimately it will help the industry to grow. We are happy that the competition is coming.
Have you chalked out any particular strategy to combat competition?
Our brand stands for two things one is the facility we provide, which anybody can
match, and secondly, the service standard and experiential marketing, the experiences of
the consumer being good to the cinema, which is a PVR and vis-a-vis other cinemas. He
can see the difference in terms of the quality of the service and the passion behind it, so
thats our biggest strategy.
What are the major challenges for the growth of multiplex business in India?
The uneven state laws are one of the major challenges. State laws differ from state to
state. Secondly, as I said, every area has its own unique requirement, so you need to
understand that and adapt to that. You cant actually run your own story and expect
people to come and watch the film, so thats a big challenge. The South is a different
experience, Mumbai is a different experience, Delhi is a different experience, hence,
adapting to a particular region is challenging and exciting as well.
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What is the average occupancy level of PVR theatres across the country on
weekdays and during weekends?
The average occupancy is 50 per cent, if I include both weekends and weekdays, of
course, weekdays are a little lesser than weekends. But again it is all content driven as
well so you have 60-80-100 per cent on a weekend and you have 30 per cent to higher
numbers on weekdays. So, it all depends on the kind of movie you play. For example,
Rang De Basanti had a lot of audience during the morning shows even on weekdays
because college goers were attracted to the movie.
In terms of season, there is a different trend like March and April would be light seasons,
but May, June, July and August would be phenomenally big this year, and generally it is
big because of summer vacations. Another reason is that in summers people want to get
into an air-conditioned hall and spend the whole noon and evening there. Post Diwali also
it is really big. Therefore, overall the occupancy level varies from season to season as
well as weekday to weekend
Are you planning to show any of the 2006 FIFA World Cup matches this year in
PVR halls?
Yes, we are looking at doing screenings in our cinemas. We keep on doing alternative
programming content like soccer or cricket matches.
How has the response been to your Star Club?
We have more than one lakh members, who watch movies regularly and we keep
rewarding them. The response has been very good, look at our website, we get a lot of
queries. If tomorrow I want to do a movie, which is about a serious subject, I can target a
specific audience and send a mailer and inform them about it, if I am releasing an
Amitabh Bachchan movie I can target Big Bs fans. We are able to take all these
initiatives because of our database and the kind of segments we have. All those things are
basically helping us grow the market.
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CONCLUSIONS
We have been able to draw the following observations from the findings of the research.
1. QUEUE TIME -As far as Queue time is concerned the customers are required to
wait for a longer duration
2. CUSTOMER SERVICE The audience felt that there was an enthusiastic and
friendly behaviour with them and were very satisfied.
3. PRESENTATION Proper attention is being given at all PVR cinemas in terms of
cleanliness and presentation.
4. PERFORMANCE In terms of performance the customer service was lacking as
the customers had a wait for long for obtaining the ticket.
5. PRODUCT & QUALITY - As per the survey the customers were really influenced
by the products and its quality which was being served at all the PVR cinemas
outlet.
6. OVERALL PERFORMANCE Majority of the people were impressed by the
overall performance in terms of the terms of the eatables being served on their seats.
7. REST ROOMS Proper hygiene is maintained with adequate facilities as well.
8. AIR CONDITIONING &SEATS A good positive response is found so far as
comfortability factor is concerned in terms of proper air conditioning and seating
arrangement.
9. PICTURE QUALITY & SOUND QUALITY Though the customers are satisfied
but still a little improvement can also be done to maintain it further.
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BIBLIOGRAPHY
www.google.com
www.pvr.com
www.exchange4media.com
Published References:
o Marketing Management by Philip Kotler.
o Magazines,journals from libraries
o Newspapers.
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ANNEXURE
QUESTIONARE
QUEING TIME
0 1 2 3 4 5 6 7 8 9 10
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PERFORMANCE
7. Did you obtain your ticket promptly?
8. How would you rate the customer service at the ticket box
Candy Bar
PRODUCT & QUALITY
9. I was asked if I wanted the promotion combo set.
10. I was served fresh, tasty popcorn.
11. The quality of product was up to standards.
OVERALL PERFORMANCE
12. How prompt were you served?
13. How would you rate the service standard at the Candy Bar
Not at all
Satisfied
Extremely
Satisfied
0 1 2 3 4 5 6 7 8 9 10
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0 1 2 3 4 5 6 7 8 9 10
20. The seats and the floor were clean and tidy.
PICTURE QUALITY
21. The picture quality was clear and sharp.
22. The picture was still and free of disturbances.
23. The picture was bright enough.
SOUND QUALITY
24. Was the sound clear?
25. The sound level was pleasant?
26. There was no disturbance from the ambient noise
OVERALL PRESENTATION
27. The cinema was clean and comfortable
28. The film presentation went smoothly and was enjoyable.
Getting to know you ..
FULL NAME : ___________________________________________________________
ADDRESS
: ___________________________________________________________ POSTCODE___________________
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