WORKING ON THESIS

THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

NEW DELHI

THESIS

Brand Positioning Of PVR CINEMAS Submitted To: -

Submitted By:-

Prof Sumanto Sharma

SANIYA MALIK

BATCH : PGP/ SPRING SUMMER

Thesis Guide: -

YEAR : 2005-2007

PROF L. RAGHVAN IYER

SPECIALISATION: MARKETING

IIPM, New Delhi

ALUMINI ID : DS57 M257ABSTRACTOBJECTIVE 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 .

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.

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.

TABLE OF CONTENTSError! Bookmark not defined.ACKNOWLEDGEMENT

1EXECUTIVE SUMMARY

2INTRODUCTION

5LITERATURE REVIEW

21HISTORY OF PVR

26VISION

28Consumer Behaviour

30Understanding Consumer behavior

31PROMOTIONAL strategy & Consumer behavior for PVR

33Creating satisfied customers

34Consumer behavior is product person situation specific

35Consumer lifestyle and consumer decisions

35The Nature of consumption

36PVR NEST

49MARKET SEGMENTATION RESEARCH

52RESEARCH METHODOLGY

63RECOMMENDATIONS

73CONCLUSIONS

74BIBLIOGRAPHY

75ANNEXURE

EXECUTIVE SUMMARYThe 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 on-going 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.

Product positioning process

1. Generally, the product positioning process involves:

2. Defining the market in which the product or brand will compete (who the relevant buyers are)

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:

The position of your product

The position of the ideal vector

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

Solve problems

Provide benefits to customers

Get favorable perception by investors (stock profile) and lenders

2. Symbolic positions

Self-image enhancement

Ego identification

Belongingness and social meaningfulness

Affective fulfillment

3. Experiential positions

Provide sensory stimulation

Provide cognitive stimulation .

LITERATURE REVIEW

BOOK - MARKETING

AUTHOR JAMES H MYERS

PUBLISHER Mc GRAW-HILL INTERNATIONAL EDITIONSModern 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 observed-

To 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 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 POSITION-

The 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 MAPS-

In 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.

OBJECTIVES-

The 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.

DEVELOPING MARKETING MIX-

1. What kinds of information are needed?

2. How much information is needed?

3. How accurate is the information received?

4. How much money should be spent to get the right information?

PVR LIMITEDCompany profile

OverviewPVR 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 Opens 6 screen multiplex in Mulund, Mumbai PVR Ltd: FY06 net up by 46%, Revenues up by 52% PVR LTD. announces Interim divdend of 10% on the equity share capital for the year 2005-06 PVR Juhu commences operation PVR opens in Lucknow Blow Away Movie Ticket Blues With Quiktixthru. PVR eyes content from across the globe... PVR Pictures acquires 15 films for distribution in the Indian subcontinent. PVR Rivoli commences operations PVR opens 5 screen multiplex at Hyderabad PVR signs five projects in State of Punjab, Govt. of Haryana reduces Entertainment Tax DutyFilm Exhibition Business

Multiplexes typically feature auditoriums ranging from 150 to 450 seats each. The cinemas appeal to a diverse group of patrons because a wide selection of films and convenient show times is offered. In addition, the cinemas feature modern amenities such as wall-to-wall screens, state-of-the-art audio and projection technology, such as three way digital Dolby sound systems and Xenon projection systems, multi-station food and beverage stands, computerized ticketing systems, stadium seating and movie-themed interiors and exteriors.

There is a variation in cinema seating capacities within the same Multiplex, to enable them to exhibit films on a more cost effective basis for a longer period of time by shifting films to smaller cinemas to meet changing attendance levels. In addition, significant operating efficiencies is achieved by having a common box office, concessions, projection, lobby and wash room facilities, which enables in spreading some of the costs, such as payroll, advertising and rent, over a higher revenue base. The movie show times are staggered to reduce staffing requirements and lobby congestion and to provide more desirable traffic flow patterns. In addition, PVR believes that operating a business consisting primarily of Multiplex Cinemas enhances their ability to attract patrons.

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

Screens Seats Opening date

Anupam Delhi

41,000

Jun-97

Priya Delhi

1,944

Jan-00

Naraina Delhi

4,830

Aug-01

Vikaspuri Delhi

3,921

Nov-01

Metropolitan Mall Gurgaon

71,310

May-03

Crown Plaza Faridabad

2,504

May-04

Plaza Delhi

1,300

May-04

Forum Mall, Bangalore Karnataka 1,12,011

Nov-04

EDM Uttar Pradesh

3,726

Mar-05

Central Mall, Hyderabad A.P, 3,926 Feb-06

Rivoli Delhi

1,329

Feb-06

Treasure Island, Indore M.P

51,140

Apr-06

Sahara Mall, Lucknow U.P

4,874

Apr-06

Juhu Mumbai

2,580

Apr-06

Nirmal Lifestyle, Mulund Mumbai 61,750

Jun-06

Sahara Mall Gurgaon

2,528

Jul-06

Franchisee

Spice Noida

81,821

Dec-05

SRS Mall Faridabad

3,776

Nov-04

Total

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 AnupamPVR 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 four-screens 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 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 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.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 RivoliPVR 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 IndorePVR 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.PVR LucknowPVR 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, MumbaThe 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

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 Screens SeatsPrashant Vihar Delhi

3,818

Aurangabad Maharashtra

31,156

Latur Maharashtra

31,136

Oberai Mall, Goregaon Mumbai 61,800

Select Mall, Saket Delhi

61,269

Phoenix Mills, Lower Parale Mumbai 72,050

Ampa Mall Chennai

71,600

Flamez Mall, Ludhiana Punjab 41,025

Freemans Mall, Ludhiana Punjab 31,025

Ambi Mall Gurgaon

71,500

Ghatkopar Mumbai

41,250

Rajouri Garden Delhi

61,500

Moradabad Uttar Pradesh

4,873

Jalandhar Punjab

41,300

Bhatinda Punjab

41,025

Hazrat Ganj, Lucknow Uttar Pradesh 41,037

Centra Mall, Chandigarh Punjab 41,013

Fun city, Panipat Haryana

3,800

Viraj Khand, Lucknow Uttar Pradesh 3,740

World Trade Park, Jaipur Rajasthan 51,067

Brigade Road, Bangalore Karnataka 1,22,800

Celebration Mall, Khanna Punjab 41,200

Celebration Mall, Jalandar Punjab 61,200

Moksh Mall, Ranchi Jharkhand 61,250

Moksh Mall, Dhanbad Jharkhand 41,000

Scottish Hillview Mall, Dehradun 51,250

Dehradun 2 Uttaranchal

61,500

Scottish Mall, Ahemdabad Gujarat 61,500

Destination Mall, Ahmedabad Gujarat 71,300

Mysore Karnataka

62,235

Coimbatore Tamil Nadu

62,033

Vijaywada Andhra Pradesh

41,230

Raipur Chattisgarh

41,400

Celebration Mall, Amritsar Punjab 41,000

Maiden Mall, Amritsar Punjab 51,100

The Mall, Amritsar Punjab

41,250

Total

1,79,47,232With 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 modelRecent 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.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 CompaniesPVR Pictures LimitedPVR 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 LimitedCR 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. HISTORY OF PVRINDIAS 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 a 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.A HALL OF FIRSTS. LIKE NO OTHER.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

First to introduce Gold Class Cinemas & Lounge in India

First to introduce Heritage Cinemas in India

First to form a Foreign Joint Venture with Village Roadshow, Australia

First to receive Institutional Funding in the cinema industry - from ICICI

First to offer Computerized & Online Ticketing

First to introduce Real Time Ticketing on www.pvrcinemas.com

First to introduce Mobile Based Information & Ticketing Service

Introduced Cross Location Ticket Sales

First to introduce ATM Movie Ticket Kiosk WHY MOVIE-GOERS PUT US FIRST.Showcasing the best of movies under one roof - Designing vibrant and exciting cinema interiors - Offering world-class service standards - Computerized ticketing - Real time online booking - Mobile ticketing facilities - Gold Class and Cinema Europa with luxury seating - Exclusive lounge and Personalized service - Experiential marketing and promotions to delight patrons. With a star-cast this impressive, no wonder PVR is the preferred choice to moviegoers across the country

ADVERTISERS PUT US FIRSTIt is not just the moviegoers who give PVR Cinemas the preferential destination status but also advertisers - successful brands like Pepsi, Airtel, Hero Honda, Nokia, LG, Lipton and Samsung have made us their top choice.FILM-MAKERS PUT US FIRST.All prime studios, film distributors and producers of English, Hindi and Regional Films consider PVR Cinemas the main cinema exhibition chain while releasing their films. They provide active support in conceiving successful movie marketing campaigns and promotions. PVR Cinemas' marketing acumen and positioning is aimed at giving record breaking box-office collections.DEVELOPERS PUT US FIRST.Real estate developers from all over the country give PVR Cinemas the preferred Anchor Tenant status for its ability to attract large footfalls.NOW SHOWING.CENTRAL DELHI PVR Plaza, Connaught Place PVR Rivoli, Connaught Place,SOUTH DELHI PVR Anupam, Saket,

PVR Priya, Vasant ViharWEST DELHI PVR Naraina

PVR Vikaspuri

GURGAON PVR Cinemas, The Metropolitan Mall

PVR Cinemas, Sahara Mall

GHAZIABAD PVR Cinemas, EDM Mall, Kaushambi

NOIDA Spice PVR, Spice World, Noida

FARIDABAD PVR Cinemas, Crown Plaza Mall PVR SRS Cinemas, SRS World

MUMBAI PVR Cinemas, Dynamix Mall, Juhu

PVR Cinemas, Nirmal Lifestyles, Mulund

BANGALORE PVR Cinemas, The Forum MallHYDERABAD PVR Cinemas, The Central Mall, Hyderabad

INDORE PVR Cinemas, Treasure Island, Indore

LUCKNOW PVR Cinemas, Sahara Ganj, Lucknow

THE FUTURE OF THINGS TO COME..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 PICTURESOur 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 begunVISIONThe 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.

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 non-functional 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.

Consumer Behaviour

Attitudes / Needs

Marketing activitiesSituations

Learning (monory)CultureProblem Recognition

PerceptionSubculturesInformation Search

MotivesValues

Consumer lifestyleEvaluation & selection

PersonalityDemographics

Store choice & purchase

EmotionsSocial status

HouseholdsReference GroupsPostpurchase processes

Situations

Experiences

Consumer Behaviour And marketing strategy

Organizations are applying theories and information about consumer behaviour on a daily basis.Consume behavior theory provides the manager with the proper questions to ask.

What they think of our products and those of our competitors.

What they think of possible improvements in our products.

How they use our products.

What attitudes they have about our products and our advertising.

What they feel about their roles in the family ad society.

What their hopes and dreams are for themselves and their families

Understanding Consumer behavior Marketing strategy to satisfy target consumer needs

Consumer research

Understanding consumer behaviorRegulatory policy

Behavioral theoriesInformed individuals to better understand how societies function

All marketing strategy and tactics are based on explicit or implicit beliefs about consumer behavior.PROMOTIONAL strategy & Consumer behavior for PVR

Customer value is the difference between all the benefits derived from a total product and all the costs of acquiring those benefits.

Providing superior customer value requires the organization to do a better job of anticipating and reacting to customer needs than the competition does.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).Outcomes Customer satisfaction sales product/brand image

Consumer decision process problem recognition information search alternative evaluation purchase use evaluation

Marketing strategy product, price, distribution, promotion, service

Market segmentation identify product-related needs sets group customers with similar need sets describe each group select attractive segment(s) to target

Market analysis company competitors conditions consumers

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.)

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.Creating satisfied customers

Our total product

Consumer decision processSuperior value expectedSalesPerceived value deliveredCustomer satisfaction

Competitors 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.

Consumer behavior is product person situation specific

Personal characteristics

Product characteristicsConsumer behaviorMarketing strategy

Consumption situation

Consumer lifestyle and consumer decisions

Needs/attitudes that influence consumption decisions

Consumer lifestyleConsumer choices

Behavior/experiences that reduce, maintain, or enhance lifestyle

The Nature of consumption

Consumers purchase and consumer products to maintain or enhance their lifestyles. This process is shown in Figure 1-5. Past decisions, time-related events such as aging, external events such as job changes and internal decisions such as trying a new hobby, lead to lifestyle changes that requires the purchase and/r consumption of products to maintain and enhance.

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, rag-pickers 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. 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.

AWARDS PICTURES.Indira Super Achiever Award by Indira Group of companis in Oct. 2005

Delhi Ratna at PHDCCI Centenary Celebration on 10th September 2005

Ernst & Young Enterpreneur

Of The Year Award 2005

Enterpreneur of The Year Award at Franchise Award '05

Indian Developer Felicitation 2005

TAAL Cinema Marketing Of The Year 2005

Special Award CineAsia 2004

The Teacher's Achievement Award 2004

CREDAI National Convention 2004Award for Tthe Year 2004

Newsmaker of the Year Award for 2003 as part of the Frames 2004 in Mumbai

Retailer of the Year: Entertainment

Enterpreneur of the YearAt Franchising Award 2004

Retailer of the Year: EntertainmentFor The Year 2003-04

Retailer of the Year: EntertainmentFor The Year 2003-04

Ernst & Young Enterpreneur Of The Year 2002

One face to the customer

Building a brand that unites company efforts in a customer-relevant manner

Tim Riesterer is president & CEO of The Brady Company, an integrated marketing communications firm specializing in programs that improve sales channel productivity for industrial and medical business-to-business clients worldwide.

Make selling easier, faster, and cheaper. Build a brand.Its worse than the three faces of Eve... the many faces some companies present to their market and their customers. While decentralized divisions and distinct business operating units have done wonders for the agility of corporate America, we are starting to see at least one bad side effect:

A systematic erosion in the ability of a companys brand to attract prospects and maintain customers.

This is particularly evident in companies where multiple business units sell to the same customer. Imagine the poor enduser being barraged by scads of self-styled, separate and unique marketing messages generated by individual business units; all with parochial profit/loss objectives.

By separating marketing resources into proprietary parcels for each unit, these companies further dilute already limited budgets. The laws of marketing physics dictate that these groups must create exclusive programs, messages, positions, names, logos, icons -- in the name of reaching their personal product goals. But, many times at the expense and detriment of the companys overall market position and brand image.

Most companies simply do not have the resources -- people or money -- to sustain customized, fragmented product or division-level approaches, and achieve breakthrough success with todays customers.

180 degrees off course

Thats because todays customer is changing. While the business world goes about its internal-driven restructuring, its customers are reorganizing themselves to buy a completely different solution than is being created by these so-called management gurus.

Customers, in increasing numbers, are looking for a more complete, trustworthy single-source solution. Supplier consolidation is a well-documented trend. These new customers require vendor partners who assume more important turn-key responsibilities. Systems integration and related after-sale services, such as inventory management, are among the new expectations.

How does a company appeal to these customers when it is perceived merely as a collection of islands in a stream? How does it instill confidence in its integrated solution when decentralized marketing messages create images of concrete silos where inter-dependent products and services should be seen?The answer: Companies must reach all their critical audiences with a cohesive, consistent message presented in a manner that is immediately identifiable as a single, positive corporate brand.

This requires a strong corporate positioning strategy to unite your companys offering in a customer-relevant manner that provides clear and tangible proof of the superiority of your solution. The process, however, requires significant discipline for strongly divisionalized companies looking to put an umbrella over their fiefdoms.

A day in the life of the brand

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 decision-making 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 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

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.

Bringing the brand to life: Put out an all points bulletin

The use of marketing communications, such as advertising and publicity, as the primary drivers of company branding is dead. A good corporate theme or tag line alone cannot carry the day when contributors to (and detractors from) brand equity exist across an entire organization.As a result, organization alignment is the most critical component to a brand positions success or failure. Aligning all the forces inside an organization that impact the brand is key to building brand equity. Why? Because communications messages being sent to the market need to line up with the experiences customers have with the company.

From a customers perspective, all experiences affect brand image, not just those designated as brand building. For example, among customers with a favorable impression of a companys advertising, a negative service experience will always stick out as the impression they have of the brand. In addition, the resulting negative word-of-mouth marketing, will carry more sway over potential customers than anything advertising could ever accomplish.

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.

Taglines as booster rockets

Similar to the space shuttle which needs a high-energy set of booster rockets to breakthrough earths gravity before it can soar, an organizational alignment program needs a spark to get it moving forward.

This is where a classic tagline or theme can make or break brand building. The discipline of identifying a few key words that communicate the full weight and force of your brand message is the cornerstone of an organizational alignment effort.

With a tagline, you have a rallying cry and focus. All actions, applications and associated activities get their energy from (and always point back to) this dynamic positioning device. More than pithy wittiscims or half-baked platitudes, this tagline must stand up to three critical questions:

1. Does it provide a clear, recognizable and sustainable differentiation from the competition?

2. Does it respond to your customers most pressing needs in a compelling, believable manner?

3. Does it provide guidance for management decisionmaking, hiring, training and resource allocation?

Right where it counts

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.

MARKET SEGMENTATION RESEARCHMarket segmentation research maintains focus and delivers needed marketing information in today's moving economy where new markets and new product categories emerge and traditional market segments fade away. Our market segmentation research is a way to keep 'your eye on the ball.' With an on target market research design concept, staged design, and astute market research questionnaire design, market segmentation research provides a window to your marketing opportunities and a path to effective marketing strategy. Often we start the market segmentation process with qualitative research to define ways customers view the product category, and the differences in those views. perceive competing product categories, and brands within those categories.

Comprehensive market segmentation research examines a broad range of demographic and psychographic determinants. Implied in the notion of segment.

Methods we use include in our portfolio of market segmentation research methods:

Qualitative Market Research ...

We conduct preliminary focus groups or other qualitative methods -- such as depth interviews -- among market segments for which we have hypotheses as to their importance. We listen to their language. In focus groups, we probe how they talk about the product or service category. Using projective techniques, we uncover insight as to how various consumer and business audiences see and feel about the product category and competitive brands.

Our qualitative market segmentation research effort centers around refining hypotheses, discovery and refining our learning about customers whether consumers or business audiences. Our goal is to develop preliminary segmentation dimensions not draw conclusions about either their importance or size. That is done in our quantitative segmentation research effort.

Market Segmentatin Goals

Estimate the market segment dimension salience or impact.Marlet segmentation dimensions may be demographic, behavioral, attitudinal, or a combination of these which may form psychographic segments. Estimate the market segment dimension salience or impact.Factors here may include buying frequency, strenth of product category importance, perceived value of product use system, and consumer or business customer attitudes.

Concept Test with real or proposed brands and product positioning and price-perfomance 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.

Quantitative Market Segmentation Methods:

Stage 1: Developmental Market Segmentation Research Survey A developmental survey -- typically phone, or online survey -- that takes hypotheses from our qualitative market segmentation exploration, constructing the survey questionnaire to bracked the initial dimensions, measure their importance, and the positition of cometitive brands and cross-category brands along the dimensions. Product and brand concepts are used to refine the power of each market segmentation dimension to discriminate. Basic statistical analysis may be employed in this developmental stage.

Stage 2: Statistical Quantitative Market Segmentation StudyBased on Stage 1 results dimensions are further refined and pared to a small relevant set. We implement a larger sample survey to allow perfomance of statistical measurement tools. These may include conjoint analysis, multiple regression, perceptual mapping, correspondence analysis and other multivariate techniques. Our approach to this stage is practical while maintaining statistical rigor.

The results of this multi-stage approach yields data for specific market segmentation recommendations, and preliminary branding positioning recommendations.

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.

2) Sampling frame A sampling frame is a representation of the elements of the target population. It consists of a list or set of directions for identifying the target population. Example a city map, a mailing list from the commercial organization

3) Selecting a sampling technique Here a probability sampling technique is used which is stratified sampling. This is done to increase precision without increasing the cost. Stratified sampling is a probability sampling technique that uses a two step process to partition the population into subpopulations, or strata. Elements are selected from each stratum by a random procedure.

Stratified the target population into four regions:

NORTH

WEST EAST

SOUTH

4) Determining the sample size Sample size refers to number of elements to be included in the study. Determining sample size involves qualitative and quantitative factors. The researcher has decided a sample size of 50.

5) Execution of the sampling process Execution of the sampling process requires a

detailed specification of how the sampling design take decisions with respect to population, sampling frame, sampling unit, sampling technique, and sample size are to be implemented.Eg. If households are the sampling unit, an operational definition of a household is needed.

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.

Q1 When asked : How much was the waiting time:

the answers were :

20% answered : 15minutes

25% answered : 25 minutes

55% answered : 10 minutes

Q 2 When asked : How was the customer service :

The answers were :

34% answered : Very good32% answered : Average34% answered : Good

Q 3 When asked : Rating for presentation :

The answers were :

38 % answered : Above average 36 % answered : Good

:24 % answered : Very good

Q 4: When asked : How was the performance :

The answers were :

35.2 % answered : Very much satisfied 34.8 % answered : Highly satisfied 30 % answered : Satisfied

Q 5 When asked : How are products and its quality:

The answers were:

25 % answered : Above average 30 % answered : Highly satisfied 35 % answered : Satisfied 10 % answered : Dissatisfied by few variety

Q 6 When asked : How was the overall performance :

The answers were :

28.20 % answered : Highly satisfied 32 % answered : Appreciable 39 % answered : Above average

Q 7 When asked : How were the rest rooms:

The answers were :

37 % answered : Nicely maintained32 % answered : Hygeinic30 % answered : Above average

Q 9 When asked : How was the picture quality :

The answers were :

32.6 % answered : Above average67.4 % answered : Highly satisfied

Q 10 When asked : How was the sound quality :

The answers were :

21.35 % answered : Satisfied78.65 % answered : Highly satisfied

Q 11 When asked :How was the overall presentation :

The answers were :

33.2 % answered : Average 66.8 % answered : Above average

RECOMMENDATIONSRecommended positioning for PVR are as under----

Besides NCR , PVR cinemas should be promoted to other parts as well

More variety of foods can be added at PVR counters.

Tele- booking needs proper attention.

A little attention should be given to the sound clarity.

Proper support should be given to ventilation as well.

It is recommended that PVR must extensively develop the use of Technology on uniform platform across all its theatres.

Appropriate budget allocation is required for implementation of new technologies. For e.g when a person books tickets online then he/she should be able to get the printouts from there rather than a person delivering it at home. Also it is recommended that independent booking outlets be opened so that consumer can get tickets booked there instead of going to the theatre.

Companys focus should be to increase the awareness among the Customers about new releases and offers by doing Promotions.

Company can increase the sale of tickets by Attractive price offer, more Media Publicity, etcIn 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. SECONDARY RESEARCHINTERVIEW 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 Vice-President, 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 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.

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 up with a multiplex in Chennai. In fact, we are looking at expanding to around 250 screens in the next 12-15 months.

What about the East?

Yes, we are looking at expansion in the East as well. Everything is being worked out. So, definitely the expansion will include every part of India.

How has the mutiplexes business evolved in India?

There was a time when people preferred to watch movies at home buying or renting video cassettes or VCDs / DVDs. Now they are returning to the cinema halls, thanks to the good ambience, international sound and picture quality and the option of purchasing tickets without standing in long queues.

Another thing that we are seeing is that people have become more receptive towards experimental cinema. A movie like Rang De Basanti may not be a typical masala Bollywood movie, but it has done phenomenal business. Similarly, an animated feature film like Hanuman has also been accepted well by the audience. Oscar nominated and winning films, which used to be considered very niche earlier, are doing very well too.

Another trend is that of hosting corporate functions, birthday parties and even kitty parties in movie halls. So, cinema is being looked at as a complete medium of entertainment.

What kind of investments have you lined up for expansion?

We have lined up Rs 300 crore for expansion of multiplexes.What are the forthcoming releases (Bollywood and Hollywood) lined up for 2006?

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.

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.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.

What other interactive programmes do you have on the anvil?

We are doing contests and games on our website, we keep on changing contests and everything. Then we have something we call LAM (local area marketing), which is very strong in our cinemas. Every movie or cinema has a different kind of a promotion. So, there will be some kind of leaflets or banner or a hoarding, or maybe a contest which are at a local level. For instance, may be you get a card and get it punched four times, the fourth time you can get a free movie ticket. All these come under LAM. At this moment, if we have 11 cinemas then every cinema will have a different LAM plan, We are also very strong in technological innovations. You can book a ticket for any of the PVRs from any PVR counter. Similarly, you can go to a kiosk, swipe a card and buy a ticket. Such kiosks were introduced in Delhi (Saket) and Bangalore in October 2005. These user-friendly initiatives are helping us in a big way.

Moreover, we have also introduced real time ticketing, where you can actually log on to our website, www.pvrcinemas.com, and choose the seat you want.

What percentage share do online bookings have vis-a-vis on the spot ticket sales?

It is around 30 per cent online bookings. I could call it value added services, so if it is online booking, it is ticket fare booking. Rather than calling it online, you can call it the value added service whether it is online or mobile booking.

Any major promotional and marketing activities lined up in the future?

Movie merchandising is something that is going to grow in the coming years. So Krrish may have a good merchandising opportunity, Superman Returns may have a good merchandising opportunity. They tend to offer a lot of value addition to patrons coming to PVR cinemas at that point of time. We are segmenting our audience and doing specific promotions for that. So, kids will have a special promotion for them, students will have a separate promotion, women will have specific promotions, then families will have a different kind of promotion. Hence, we are segmenting the people who come to a cinema and are trying to do things around them.

What constitutes a great movie viewing experience?

One is the hardware, which is cinema and everything, second is the software, which is the content, in between comes the value added services, which help you remember things that are small but when you go home you remember them. So, when a person goes home he/she says, maybe the movie was average, but my whole experience was good. But if the movie is good, then the whole e xperience becomes even better. So, hardware and software both add on to a good experience.

Finally, what is the mantra of PVRs success?

I would call it passion for the business we are in. If you see our MD, Ajay Bijli, he is passionate and doing what he loves to do. Our criterion for the selection of the person is that he has to be a hardcore movie buff. I think passion and innovation has helped us be where we are. Our internal catchline is we should be mad about movies and our project philosophy is that all cinemas should ooze with movies. I guess the movie mad culture is helping us be where we are. That is our success mantra I guess.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.

BIBLIOGRAPHY

www.google.com www.pvr.com www.exchange4media.com Published References:

Marketing Management by Philip Kotler.

Magazines,journals from libraries

Newspapers.

ANNEXURE

QUESTIONARE

On the scale from 0 to 10, with

0 meaning you were not at all satisfied

and

10 meaning you were extremely satisfied.

Please score us by shading the boxes below.

If the question is yes and no in nature, 0 indicates No and 10 indicates Yes

QUEING TIME

1. What was the queuing time?

2. How was the queue management and experience?

CUSTOMER SERVICE

3. How well were you greeted?

4. Staff was friendly, enthusiastic and made good eye contact.

PRESENTATION

5. The counter was clean and tidy.

6. How would you rate the overall presentation of the ticket box?

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

Floor Area, Usher Point & Cinema AccessREST ROOMS

14. The wash room was clean and tidy.

15. The wash room was well supplied.

16. The smell was pleasant.

OVERALL PERFORMANCE

17. The teams co-ordination at this cinema is good

18. I was satisfied with the service standard at this cinema.

Inside the CinemaAIR-CONDITIONING AND SEATS

19. The air-conditioning was comfortable

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 QUALITY24. Was the sound clear?