PVR Marketing PDF

1 | P a g e
Consumer Perception Towards

Multiplexes in India
A Study With Reference To PVR Cinemas

Section A
Group 8
Anuran Saha (13P010)
Abhidnya Karhadkar (13P026)
Rudro Mukherjee (13P037)
Sasi Kanth Pingali (13P043)
Nilesh Tiwari (13P053)
Vasundhara Tikoo (13P054)
Consumer Perception towards Multiplexes in India

Marketing Planning 1: Project Report Page 2

Acknowledgement

We would like to express our deepest gratitude to Dr. Avinash Kapoor for guiding us on the
Marketing Planning course and for his invaluable guidance, support, and encouragement
throughout our project work which has aided us in the successful completion of our work.

We also extend our thanks to our friends who directly or indirectly helped us during our project
work. We would also like to thank everyone who helped us in primary survey.



Table of Contents
Introduction: ........................................................................................................................................... 5
Purpose and Objectives of the Project: .................................................................................................. 5
Justification and Significance of the Project: .......................................................................................... 6
Justification: ........................................................................................................................................ 6
Significance: ........................................................................................................................................ 6
Outline / Flow of the Project: ................................................................................................................. 7
Literary Review: .................................................................................................................................. 7
Hypotheses Development: .................................................................................................................. 7
Data Collection and Analysis ............................................................................................................... 7
Customer Survey ............................................................................................................................. 7
Analysis ........................................................................................................................................... 8
Findings: .............................................................................................................................................. 8
SWOT Analysis of the Multiplex Industry ............................................................................................... 9
Strengths ............................................................................................................................................. 9
Weaknesses ........................................................................................................................................ 9
Opportunities ...................................................................................................................................... 9
Threats ................................................................................................................................................ 9
SWOT Analysis of PVR Cinemas ............................................................................................................ 10
Strength ............................................................................................................................................ 10
Weakness .......................................................................................................................................... 10
Opportunities .................................................................................................................................... 10
Threats .............................................................................................................................................. 10
Consumer Behaviour ............................................................................................................................. 11
Consumer/Personal Characteristics: ............................................................................................. 11
Environmental Factors .................................................................................................................. 11
Product/Service Factors ................................................................................................................ 12
Five stage model of Buying Decision process ....................................................................................... 12
Problem Recognition ..................................................................................................................... 12
Information search ........................................................................................................................ 12
Evaluation of Alternatives ............................................................................................................. 12
Purchase Decision ......................................................................................................................... 13
Post-purchase behaviour .............................................................................................................. 13


PVRs Value Proposition ........................................................................................................................ 13
Hypothesis Development: ..................................................................................................................... 14
PVRs Value Proposition ................................................................................................................ 14
Understanding the General Trends of the Movie Goer ........................................................................ 14
Language of the Movies .................................................................................................................... 14
Frequency of Movie going ................................................................................................................ 15
Show Timings .................................................................................................................................... 15
PVR Specific Questions ......................................................................................................................... 16
Most Preferred Multiplex ................................................................................................................. 16
Experience @ PVR ............................................................................................................................. 17
Why PVR? .......................................................................................................................................... 18
Best PVR in Gurgaon ......................................................................................................................... 18
Reason for Deviation from PVR ........................................................................................................ 19
Consumer perception of Cost @ PVR ............................................................................................... 20
PVR Promotional Offers (Consumer awareness) .............................................................................. 20
Methods of Ticket Booking: .............................................................................................................. 21
Refreshments: ................................................................................................................................... 22
3D experience: .................................................................................................................................. 22
Methodology: ........................................................................................................................................ 23
Regression model .................................................................................................................................. 24
Pre Modelling ................................................................................................................................ 24
Model building & Results: Phase-1 ............................................................................................... 24
Model building & Results: Phase-2 ............................................................................................... 26
Model Analysis ...................................................................................................................................... 26
Findings/Originality/Value/Future market ........................................................................................... 27
Result ................................................................................................................................................ 27
Conclusion ......................................................................................................................................... 27
Implications ....................................................................................................................................... 29
Limitations ........................................................................................................................................ 29
Future Research ................................................................................................................................ 29
References ............................................................................................................................................ 29
Appendix: Questionnaire ...................................................................................................................... 30


Introduction:
Entertainment has always played a prominent role in the social fabric in India . Movies
in particular succeeded in attracting the masses. Over the past decade the growth of
multiplexes has been a vehicle of improvement for the film industry.
The multiplex industry was pioneered in India by PVR. The Company began as a joint
venture agreement between Priya Exhibitors Private Limited and Village
Roadshow Limited in 1995 with 60:40 ratio and Priya Village Roadshow (PVR) was
born. Recently, with the acquisition of Cinemax chain at a record price of Rs 395 crore, it
improved its position as the countrys number one multiplex operator.
To consolidate its position as the largest cinema chain in India. PVR currently holds 385
screens in 89 locations across 37 Indian Cities. PVR commands a heavy presence in the
Delhi and NCR with 55 screens. PVR currently operates Indias largest multiplexes with
11 screens, PVR Orion and PVR Forum in Bangalore.

PVR has tried to diversify its offerings to the consumer under different income group. It
recently launched its premiere brand PVR Premiere targeting the urban youth segment
in the metros. PVR also operates three other brands namely PVR Talkies targeting the
consumers in tier II cities, the original PVR Cinemas aimed at urban and semi urban
consumers and PVR Directors cut for high end consumers. PVR Pictures is the
distribution arm of PVR Cinemas. International film distribution has been a major focus
area for PVR. It also ventured into Movie Production for a while.

At present, the exhibition business for PVR contributes nearly 70 per cent of PVR's
revenues, a smaller proportion in comparison to other multiplex chains. The revenue
share from food and beverages is 18 per cent and from advertisements, 13 per cent.
PVR has also set up a subsidiary PVR bluO which is setting up bowling centres
across the country. PVRs strategy to diversify into sectors beyond films is a move to
strengthen and de-risk its business plan and strengthen its non-core business. At the
same time PVR plans to have 500 screens presence all over India by 2015.
Purpose and Objectives of the Project:
The study is aimed at analysing the Consumer Behaviour and exploring the
determinants that helped PVR showcase their competencies in the highly competitive
Multiplex industry.
The objectives of our research can be classified as shown:
1. To analyse and reason the popularity of PVR as a preferred cinema destination.
2. To study the market trend of various multiplexes and how PVR could hold its
customer base intact.


3. To analyse the customer perception towards different class offerings of PVR.
4. To synthesise insights from the data collected through survey of movie goers.
5. To provide recommendations so as to overcome potential challenges of PVR.
Justification and Significance of the Project:

Justification:
The multiplex is a highly volatile and competitive industry and entirely dependent upon
customer preferences. Hence by studying customer behaviour we can formulate
requisite strategies to effectively maintain a dominant position in the market.
With too many players chasing limited audiences, sustaining the market share and
customer base is of prime importance. Hence understanding the customers preferences
ensures PVRs continued leadership in market.
PVR being the largest player with different classes is the best sample to understand the
dynamics of the multiplex industry. Its pan-Indian presence and multiple class offerings
ensure that the audience sample is the best representative of movie goers community.
Significance:
This survey based study brings out the inner voice of a movie goer about PVR
cinemas, across different formats of screens that are offered.
As students aiming to understand the dynamics of market, direct interactions
with customers enables a close view of how certain aspects of customer
preferences affects the business and market.
PVR Cinemas as a company will better understand the consumer pulse and
initiate improvements wherever feasible so as to enhance customer experience.
This project can be used in development of a case based on entertainment
industry to analyse and synthesize customer behaviour towards entertainment
industry.
For managers in the domain, this project helps to better align their decision
making process with changing needs of customers.



Outline / Flow of the Project:

Literary Review:
This includes identifying the various research papers and journals which are directly related to
understand consumer behaviour with respect to Multiplex industry in India.
Hypotheses Development:
Based on the primary research, hypotheses will be framed which determine the survey
questionnaire. Data collection is determined by the hypotheses that are framed and help us answer
the hypotheses.
Data Collection and Analysis
In this phase, the data will be captured and analysed to which will form the basis for drawing
insights about the industry, the company and the customers. The methodology will be as
follows:
Customer Survey
This includes directly interacting with audience and collecting responses for the questions, few
objective & few subjective, aimed at understanding the customers preferences. Survey
methodology is designed to capture the preferences of audiences belonging to varied strata of
demographics.
Findings
Survey
Results
Insights Recommendations
Potential
Challenges
Data Collection and Analysis
Questionnaire
Preparation
Audience Survey Preference Analysis
Hypothesis Development
Research
Objective
Factors of
Preferences
Hypothesis Research Design
Literature Review
Multiplex industry dynamics Journals


Analysis
The data collected will be analyzed at different dimensions to test and answer the hypotheses. Also,
the analysis performed would be the base for the insights and recommendations.
Findings:
The analysis of the survey data will give us insight into consumer preferences and directions for
future market trends and innovations in the multiplex industry.



SWOT Analysis of the Multiplex Industry
Strengths
1. Change in lifestyle and spending patterns of the Indian masses on entertainment.
2. Growing youth population with high disposable income with easy accessibility.
3. The pace of audio visual & technology improvements like graphics, dolby digital
effects.
4. Great utilization of information technology through online bookings, offers, etc.
5. Enhanced movie watching experience compared to traditional single screen
theatres.
6. Better tax exemptions compared to other areas of entertainment industry.
7. Growing non-ticket revenues, chiefly from food and beverages and advertising.

Weaknesses
1. Low margins & seasonal factors in movie exhibition.
2. Vulnerable to economic conditions since the money spent on movies is largely
from disposable income.
3. Sluggish expansion due to dependence on real estate property market which is
currently in shambles.
4. Extremely limited access to rural strata who have good purchasing power.

Opportunities
1. Large scope of expansion since multiplexes constitute only 7% of the screens in
India
2. Providing better experience matching international standards.
3. The country remains significantly under-served with just 8 cinema screens per
million people. In the US the figure is over 100 per million. So there is scope for
growth.
4. With the coming of 3D, more people especially children can be lured.

Threats

1. Drastic improvement of digital technology is increasing making piracy easier
2. Events like IPL negatively impacting the occupancy rate for nearly 2 months
3. Releasing of movies through DTH and satellite distribution
4. Increasing number of player which might cause imbalance between demand and
supply



SWOT Analysis of PVR Cinemas

Strength
1. It has initiators advantage as it started the multiplex revolution in 1995
2. It has a wide market coverage with 385 screens in 89 locations across 37 cities in
India
3. It has the maximum market share in multiplex segment.
4. Pioneer in Technologically driven innovations such as e-ticketing or online selection
of seats.
5. PVR is involved in multiple lingual movie market such as Hindi, English, Tamil, and
Telugu etc. and in multiple movie format such as 3D.
6. Strong focus on a complete entertainment experience rather than just watching a
movie.

Weakness
1. High dependence on distributors for showing every film as there is no backward
integration after closure of movie business
2. Parking problems due to space crunch in cities.
3. Inability to produce standalone multiplex as they are always subject to mall
partnerships.
4. Costs still prohibitively high for many customers.

Opportunities

1. Growth in the movie industry and the number of moviegoers and the growth in the
share of the multiplexes in the same.
2. Differential pricing scheme can attract consumers who are still untapped.
3. Huge scope for expansion in smaller cities and towns with growth in income via
lower tier multiplexes.
4. IT can branch out into new industries such as virtual simulation or 4D movies.

Threats

1. Large number of competitors, such as Inox, Adlabs, constantly vying for market
share and limits to price undercutting to remain competitive also the cost of setting
up multiplexes coming down inviting new competitors in the market.
2. Vagaries of the movie industry and uncertainty of peoples response to a movie
imposes threat of low occupancy.
3. DVDs, Blue ray discs and HD channels coupled with latest audio video technology in
television threaten to provide an alternative movie experience at a lower cost.
4. Rampant piracy online and offline and lenient law enforcement against the same
erodes the market share.



Literature Review for PVR
Consumer Behaviour
The mental, emotional and physical activities that people engage in while selection, purchase, usage
and disposing of products and services so as to satisfy needs and desires can be termed as Consumer
Behaviour. There are several factors which affect the consumer behaviour. These can be broadly
classified as:
Consumer/Personal Characteristics:
The consumer/personal characteristics include demographic factors, individual preferences
and behavioural characteristics.
Demographic factors are gender, age, status, income and occupation. The factors are
observed to be correlated to the decisions taken.
The value that a multiplex offers to persons of different age groups is observed to be
significantly different.
Environmental Factors

This includes both social variables and cultural variables.
Social Variables:
A consumers society that is his family, friend circle and community influences his decisions
to buy or select a particular product or service.

PVR has projected itself as a socializing hotspot for the youth as well as a family oriented
entertainment centre. Due to this multiple customers are influenced when one of them is
targetted and a strong identification with the brand is developed.

Cultural Variables:
Differences in culture also affect the buyers decision. A consumer in USA will have different
behaviour than one in India and even within India different parts have a wide variety of
cultures that have to be taken into consideration for effective functioning of PVR.
Different parts have different festival seasons at different times in the year which provide
varied opportunities for profit maximization in cinemas and special offers promotion has to
be planned and targeted accordingly.
Secondly film made in local languages have a different level of importance and a different
market share in each part of india hence there coverage of screening and the amount to be
invested in them is decided basis on the size of the target moviegoer segment.



Product/Service Factors
This includes the price, promotion and the product and its quality. Customer Services also
affect a buyers decision. With the multiplexes competition getting fierce, the facilities
provided along with the movie watching experience influence a lot in the audience decision
to choose a multiplex over other.
Promotion is a key aspect of multiplex industry and PVR has a huge promotional setup
whether it be with films produced by them or via movie stars. They also have many offers
and attractive schemes as well as special rates on particular days to promote the PVR brand.
Five stage model of Buying Decision process
A consumer passes through the following stages in coming to a buying decision:
1. Problem Recognition
2. Information Search
3. Evaluation of alternatives
4. Purchase Decision
5. Post Purchase Behaviour
Problem Recognition
The buying process starts only when the consumer feels a need ---a state of felt deficiency. It can be
triggered by internal or external stimuli. An internal stimuli consists of factors such as hunger, thirst
etc. An external stimulus is such that that person gets influenced or motivated to buy something by
seeing what other have bought or they process.
Information search
Once the consumer is aware of his/her need, he/she starts looking for information on various
products/services available that would satisfy the need.
The major information sources can be classified into:
Personal: Friends & Family
Commercial: Advertisements, Sales engagements
Public: Media, Rating organizations
Experiential: Experiencing the product
The consumer is influenced by information from all these sources by a varying degree based on his
own predilection. The information is collated and and analyzed as a whole by the customer only then
does he go to buy the product.
Evaluation of Alternatives
Amongst the various products/services available in the market the consumer analyses which brand
of product/services will give/provide the greatest value to the consumer. In this stage the consumer
forms preferences among the brands in the choice set.


Purchase Decision
Under the purchase decision the consumer makes the following decisions:
Which brand to buy?
Which dealer to buy from?
What quantity to buy?
When to buy?
How to pay?
After analysing based on the different answers to these questions the correct alternative is chosen
as the most likely that will satisfy the moviegoer and give him maximum value for money. Once the
purchase phase is over, the customers post purchase behavior is an important aspect that
companies need to focus on.
Post-purchase behaviour
Post purchase is influenced by the post-purchase satisfaction. Satisfaction is closely related to the
closeness between the consumers expectation and products performance. A satisfied customer is
more likely to purchase the product again and may render the after sales services.
In this case the overall movie experience should be such that it will satisfy all the moviegoers
needs. There should be adequate parking, good picture quality, reasonably priced food, proper
sanitary facilities etc. This will increase the value obtained by the customer for the amount spent
which will increase customer retention. Also this will propagate a positive brand image post service.
On the other hand if any of the following is not present the customer will be lost to competition
PVRs Value Proposition
PVR is the largest multiplex chain in India. PVR has been able to influence consumer behaviour by
offering the best in class service. PVR does not project itself as a multiplex but it rather projects itself
as someone who provides a complete entertainment package.
PVR offers the following:
World class acoustics
State of art projector and its allied technology
Online booking facility
Parking Spaces available
Aesthetic ambience
Variable Ticket Pricing targeting various segments of the society
In this project we studied the factors influencing a movie goer to go and watch the movie at PVR. For
this we floated a survey and asked the potential audience/consumer various questions to
understand their behaviour.


Hypothesis Development:
PVRs Value Proposition

PVR is the largest multiplex chain in India. PVR has been able to influence consumer behaviour by
offering the best in class service. PVR does not project itself as a multiplex but it rather projects itself
as someone who provides a complete entertainment package.
PVR offers the following:
World class acoustics
State of art projector and its allied technology
Online booking facility
Parking Spaces available
Aesthetic ambience
Variable Ticket Pricing targeting various segments of the society
We broadly asked question of two types:
1. Questions to understand the general trends of the movie goer
2. Questions specific to PVR
Understanding the General Trends of the Movie Goer
Language of the Movies
The question of language of the movie is framed to test the hypothesis that Bollywood is the most
preferred by audience
In this question, we asked the sample population regarding the most preferred language of the
movie they prefer to visit multiplexes for. We classified the movies as Bollywood (Hindi), Hollywood
(English) and Regional.
The results indicated that most people go to multiplexes for watching Hollywood Movies (56%)
followed by Bollywood movies (38%) and then Regional movies (6%). This negates our hypothesis
and it is rejected.


Frequency of Movie going
On the frequency of movie going, the question framed tests the hypothesis that Most people watch
a maximum of 2 movies in a month
In the sample of 98 we found that 73% people go to multiplex 1-2 times in a month. 19% of the
people go to multiplex 3-4 times and 4% of the samples go to movies for 5-6 or for more than 6
times to the multiplex in a month.

The results indicate that the hypothesis not proved wrong and cannot be rejected
Show Timings
To determine the most preferred choice of movie time, the question was posed to movie goers to
test the hypothesis that Multiplex customers prefer night shows the most
38%
56%
6%
Kinds of movies
Bollywood Hollywood Regional
73%
19%
4%
4%
Frequency of visiting the multiplex in a week
1 to 2 3 to 4 5 to 6 >6


We asked the preferred movie slot for the cine goers. We classified the shows broadly into Morning
shows (47%), Matinee show (15 %) and Night shows (38%).

As the results depict, this hypothesis is not proved wrong and canot be rejected.
PVR Specific Questions
Most Preferred Multiplex
To test the hypothesis that PVR is the most preferred multiplex in Gurgaon, a question was posed.
We asked the consumer about the most preferred multiplex in Gurgaon. We gave the consumers the
option to select the most preferred multiplex amongst the various competitors of PVR. The major
rivals of PVR in Gurgaon are Inox, Big cinemas and DT.PVR came about to be the most preferred
multiplex.
15%
38%
47%
Preferred Timings
Morning show Matinee show Night show


The results show that PVR is indeed the most preferred multiplex in gurgaon.
Experience @ PVR
To gauge the level of experience provided by PVR and how the audience receive it, a question was
posed to test the hypothesis that PVR provides a great experience
We asked the sample population to rate their experience at PVR ranging from extremely good to
unpleasant. While majority of the customers (64 %) had a decent level of satisfaction from PVR,
there were 26% people who were highly satisfied with PVR. 8% voted an OK and only 2% were
dissatisfied with PVR.

The hypothesis was proved wrong and is rejected. Majority of the audience feel that the experience
is decent but not great.
4%
24%
4%
68%
Best Multiplex
BIG Cinemas DT Inox PVR
64%
26%
8%
2%
How was your experience at PVR?
Decent Extremely good Not Bad Unpleasant


Why PVR?
To know what draws audience to PVR, a question was posed to test the hypothesis that Customers
prefer PVR mainly for the experience
With PVR coming out to be the most preferred multiplex, we wanted to know why PVR was the most
liked or visited multiplex. What is it that PVR was able to do which made it the most preferred
multiplex in Gurgaon.
We tried to reason amongst movie, cost, experience and accessibility which drove the consumers
towards PVR. Experience with 43% was an important factor along with Accessibility (39%).

As the result depicts, the hypothesis is not true since almost equal number of people prefer PVR
because of the movies.
Best PVR in Gurgaon
To understand which kind of PVRs offering is most liked by the audience, a question was posed to
test the hypothesis that Ambience mall is the most preferred PVR destination
We asked the consumers to rate the Best PVR amongst the various PVR multiplexes in Gurgaon. PVR
MGF (60%) was the front runner and PVR, Ambience Premier the least (because of high cost).
2%
43%
14%
39%
2%
Why PVR?
Movie Experience cost Accesibility I hate PVR


Contrary to the hypothesis, majority of the respondents rated the PVR at MGF as the best preferred
mall.
Reason for Deviation from PVR
To also check the causes for audience preferring other multiplexes over PVR, a question is posed to
test the hypothesis that Cost is the main reason for audience who prefer other Multiplexes over
PVR
We also tried to analyse why people may decide to go to other multiplexes. High Cost(40%) and
Unavailability of seats(29%) were the major reasons. Also 12% of the people found booking of tickets
at other multiplexes to be easier.

20%
5%
60%
15%
Best PVR in Gurgaon
PVR, Ambience Gold PVR, Ambience Premier PVR, MGF PVR, Sahara Mall
19%
40%
29%
12%
Reason for consumer preferring other multiplex
Ease of booking High cost Unavailibility Others


The result proved the hypothesis correct and it is concluded that cost is the reason why majority of
the audience wont prefer PVR
Consumer perception of Cost @ PVR
To understand how pricing of tickets is perceived by PVR, a question was posed to audience to test
that the hypothesis that Pricing is doesnt effect the choice of multiplex
With high costs coming to be a major factor for deviant behaviour among consumers, we tried to
analyse how many of the people amongst the sample population perceived the costs to be high at
PVR.A whopping 53% of the people felt that PVR is expensive and 45% felt that it was correctly
priced. Just 2% of the people considered the price to be easy on the pocket.

Contrary to the hypothesis, only very few respondents were comfortable with price levels of tickets
PVR Promotional Offers (Consumer awareness)
PVR gives a lot of promotional offers to audience. To know whether audience are aware of
promotions or not, a hypothesis that Audience are well aware of the offers given by PVR
We asked the sample population of the various promotional offers from PVR which they are aware
of to figure out the reach of PVR to its target audience. Amongst the sample population 42% of the
people were not aware of some offer from PVR indicating a low target audience reach. Some of the
more popular promotional offers are Thursday offer (41%) and Buy one Get one offer (11%).
53%
2%
45%
Consumer perception about cost of PVR ticket cost
Burns your pocket Goes easy on your pocket. Is just Okey


Contrary to the hypothesis, many werent aware of promotions and most people who avail offers
are benefitted by the Thursday offer.
Methods of Ticket Booking:
To understand what mode of booking is appreciated by audience, a question is framed to test the
hypothesis that Booking through PVRs own movie portal is the most preferred mode
One of the major value propositions of multiplex industry is ease of booking. Hence, we felt it is
valuable to have consumers perception about this. Our questionnaire has asked about how they
book tickets. The findings of the survey are as follow

0%
41%
11% 2%
42%
4%
PVR promotions
Promotions Thirsday offer Buy one get one free First row for 75 I don't know about PVR's Promotions Others
49%
23%
28%
Methods of ticket booking
Online from PVR site Online from other site Standing in queue


From the survey we concluded that the 72% of the audience uses internet to book tickets. Hence,
survey has confirmed that the ease of ticket booking is one of the important value propositions. This
result also proved the hypothesis that PVRs own portal is the most preferred mode of booking.
Refreshments:
To know what effects the buying decision of audience when they buy refreshments at PVR, a
question is posed to test the hypothesis that Price play a major role when the audience think of
buying refreshements
Refreshments are also the major contributor of the revenue. The questionnaire has asked about
major factor which influence the audience in their buying decisions. The findings of the survey were:

From the survey, we concluded that the price was one of the major concern in the buying decision of
the refreshment and the hypothesis is proved to be true.
3D experience:
To verify if audience find the 3D experience of PVR to a great extent, a question is framed to test the
hypothesis that 3D watching experience is excellent in PVR
As multiplex are driven because of their quality through new technologies, the 3D experience is
major deciding factor of the quality and technology adaptation. Our questionnaire has asked the
audiences to rate the 3D experience in PVR in a scale of 1 to 10. The survey conducted has the
following findings:
61% 17%
20%
2%
Refreshment
Price Quality Variety Not much concerned


From the survey conducted, we concluded that the 91% of the respondent has felt that the 3D
experience was above average (I.e. > 5). As the results show, majority of the audience find it decent
or better proving our hypothesis.
Methodology:
We have conducted our study in the following steps.
First we analyzed the Strengths, weaknesses, opportunities and threats for Indian Multiplex Industry
as well as for PVR cinemas.
Second, we developed a questionnaire to capture the consumer insight about the offerings of PVR. It
included various dimensions like prioritizing external factors affecting consumer preferences about
multiplex, reasons for consumer choosing Multiplex other than PVR, preferences of show timings,
opinion about ticket pricing, convenience of ticket-booking, overall satisfaction level with PVR,
awareness about different promotional offer from PVR, distribution of consumers preferring
different PVR multiplex like PVR Gold, Premier, PVR Talkies etc.
The results helped us to develop an idea about the consumer preference towards various factors
regarding PVR and how much disintegrated consumer perception is from the actual image that PVR
want to portray.
Third, based on the graphical analysis and interpretation of the results from the consumer survey,
we identified various trends which helped us to find a pattern. These can lead to development of
possible future strategies for PVR to attract even bigger audiences.
9%
40%
36%
15%
3D experience
< 5 5 to 7 8 to 10 Never watched a 3D movie in PVR


Regression model
The survey responses are used to build a model to understand factors that significantly affect overall
movie watching experience.
Multiple linear regression technique is used to model overall movie watching experience as a
function of
Visuals & sounds
Location
Refreshments
Booking in PVR site
Booking in movie portals
Ticket pricing
Reach of Digital Advertisement
Reach of Newspaper Advertisements

Pre Modelling
Before the building the model, the data was checked for missing and erroneous values. Once the
data is analysis ready, correlation is checked for Overall rating with all the other factors. Factors,
which have correlation of 0.4 and above are shortlisted to build model. These are listed above.

Model building & Results: Phase-1
The model built using overall rating as dependent variable and all the 9 factors as independent
variables and results are as follows.
Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 5.79586 0.69581 8.330 2.27e-14 ***
Indicator_OtherBookingSites 1.30124 0.41046 3.170 0.00180 **
Ticket_Price -0.13835 0.07792 0.492 0.02319
Location -0.02849 0.04767 -0.598 0.55077
Indicator_Advertisements_digital 0.35920 0.30849 1.164 0.04587
Indicator_Advertisements_Newspaper 0.71161 0.29094 -2.446 0.01544 *
Visual_sounds 0.18215 0.05659 3.219 0.00154 **
Promotional_Offers 0.12138 0.05100 2.380 0.2837 *
Refreshments 0.29473 0.05360 -1.767 0.07891 .
Indicator_PVRSite 0.08301 0.34504 0.241 0.01016
---
Signif. codes: 0 *** 0.001 ** 0.01 * 0.05 . 0.1 1

Residual standard error: 1.837 on 175 degrees of freedom
Multiple R-squared: 0.772, Adjusted R-squared: 0.1349
F-statistic: 4.188 on 9 and 175 DF, p-value: 6.46e-05

Based on this, the conceptual model was built which is as follows:


The table of Hypothesis is given below:
H1a: News paper
advertisements are
impactful &useful
TRUE
H1: Media advertisements
influence the overal
satisfaction of customer
TRUE
H1b: Digital advertisements
are impactful & useful
TRUE

H2a: PVR's own movie
portal is utilised well by
customers
TRUE
H2: Ease of booking impacts
overall satisfaction of
customer
TRUE
H2b: Other movie portals
play significant role in
providing ease of booking
TRUE

FALSE
H3: Accessibility impacts
overall satisfaction of
customer
FALSE



H4a: Awareness of offers is
low
TRUE
H4: Sensitivity to cost doesn't
impact overall satisfaction
FALSE
H4b: Pricing is not an issue
for customers
FALSE

H5a: Visual & Audi effects
are important qualifiers
TRUE
H5: Value-added services
donot impact overall
satisfaction
TRUE
H5b: Refreshments
provided impact the
decision of consumers
TRUE

To quantify the exact effect, another model was build to exactly quantify the effects of factors.
Model building & Results: Phase-2
Some of the variables were eliminated based on the results of first model and a model is build with
significant factors alone:
Coefficients:
Estimate Std. Error t value Pr(>|t|)
(Intercept) 6.411423 0.584066 10.977 < 2e-16
***
Indicator_OtherBookingSites 1.254136 0.404928 3.097 0.00227
**
Ticket_Price -0.001029 0.076791 -0.013 0.98932
Indicator_Advertisements_digital 0.405157 0.308985 1.311 0.09147
Indicator_Advertisements_Newspaper 0.086078 0.293804 -2.335 0.02066 *
Visual_sounds 0.166603 0.056802 2.933 0.00380
**
Refreshments 0.064448 0.052615 -1.225 0.02224
Indicator_PVRSite 0.126672 0.346434 0.366 0.01507
---
Signif. codes: 0 *** 0.001 ** 0.01 * 0.05 . 0.1 1

Residual standard error: 1.856 on 177 degrees of freedom
Multiple R-squared: 0.7502, Adjusted R-squared: 0.1166
F-statistic: 4.468 on 7 and 177 DF, p-value: 0.0001331

Model Analysis
Below are the model findings
Pricing is observed to be least significant factor compared to others in the model


Other booking sites are playing a crucial role in customer satisfaction. Hence PVR should
ensure that this particular segment of customers are taken care off in any future
changes/implementations
Value added services, together show a significant impact. Hence PVR should maintain the
current level and improve in the future
Digital channel of advertising is proving very crucial which implies that PVR should focus
more on this channel to attract more customers

Findings/Originality/Value/Future market
Result
We have derived the following results from the survey conducted in Gurgaon:

1. The results indicated that most people go to multiplexes for watching Hollywood Movies
followed by Bollywood movies and then Regional movies
2. The frequency of an average movie goer is as high as 1-2 times a month.
3. Maximum people prefer morning shows followed by night shows and then matinee shows.
4. PVR has been rated the most popular multiplex in Gurgaon. Its major competitors are DT
Cinemas, Big Cinemas.
5. Of the people surveyed, little less than three fourth have had a decent level of satisfaction.
About one fourth were highly satisfied.
6. Consumers like PVR majorly because of the experience that it offers. The other important
factor is accessibility.
7. PVR MGF has been rated as the best PVR in Gurgaon followed by Ambience Gold.
8. The Consumers may deviate from PVR owing majorly due to its high prices. Unavailability of
seats follows that.
9. With high costs coming to be a major factor for deviant behaviour among consumers, a
whopping 53% of the samples surveyed believe that PVR is expensive.
10. The consumers are less aware of the promotional offers given by PVR. The most popular
offer known to them is the Thursday Offer.
11. Ease of Booking is one of the value propositions offered since majority of the consumers
book tickets online.
12. The consumers like the 3D experience offered by PVR .

Conclusion
In this project, the Consumer Behaviour and exploring the determinants that helped PVR
showcase their competencies in the highly competitive Multiplex industry were
analysed. The project was divided into the following parts: SWOT Analysis of Multiplex


Industry in India; SWOT Analysis of the PVR; Data collection through primary survey;
Data analysis and results. The SWOT Analysis of PVR and the multiples industry helped
us answer the question why the company chose to enter this segment. It gave us an
understanding of the basis on which Segmentation, Targeting and Positioning that needs
to be done for PVR.
The qualitative primary survey gave us a fair insight of the consumer behaviour. Our
study of purchasing and consumption patterns enabled us to better understand the
consumers mind-sets and the level of success achieved by PVR in positioning its product
in the minds of the consumer. Our study showed that the biggest competitor that PVR
has is DT Cinemas, which is also in the same segment.
This enabled us to come up with few recommendations for PVR to expand its marketing
strategy. It can provide attractive offers where the customer can make a bulk deal of e.g.
Rs 1000 at one go for about a month or so. Not only will this be profitable for the
customer but also will help PVR to cut on the costs incurred in issuing tickets each time
the customer comes to watch a movie. As per the survey, customers are fairly satisfied
with the services PVR is offering.
The movie experience goes much beyond just watching a film. Higher consumption
spending and consequent changes in lifestyle are also spurring the growth of the Indian
Entertainment sector. So we came up with suggestions to introduce product bundling
that could help PVR gain a greater market share. The package concept of services
product suggests that what you offer to the market is a bundle of different services,
tangible and intangible, but there is a main or substantive or core service and around it
are built the auxiliary/peripheral/facilitator. It is important to note that facilitating the
core services is mandatory and if these are left out, the entire service would collapse.
Yet another type called supporting services, dont facilitate the consumption of core
services but are used to increase the value and thus differentiate from the competition.
We analysed various online customer review portals and found out that along with
movie tickets and value additions like refreshments etc., PVR could also include coupons
for gaming zones placed in most of the multiplexes.
Many of the audiences feel that some of the services inside do not command the prices
that is charged for them, example, even the first two rows in the theatre command a
price of Rs. 150/-. Most people feel that a lesser price should be charged as sitting too
close to the screen is not as good an experience as sitting in one of the back rows.
Also the prices charged at the food and beverage counter are way above the MRP, which
we feel is an undue premium that is being charged. We recommend that introduction of
a food court that has a variety of offerings, not just snacks but wholesome meals as well
would greatly improve the movie going experience as people would spend greater
amount of time in the theatre and the food court could work as an ancillary to the
theatre. A lot of audiences that were interviewed feel that the leg space in between the
rows is less and it makes the audience uncomfortable after sometime.
This project helped us understand the scope and competition in the Multiplex Industry
in India, gain knowledge about the marketing strategies followed in the sector and how
these strategies help in developing the image of a product in the market.



Implications
The implications of the results are as follows:
1. The Multiplex Industry is a very fast growing segment with huge market potential and should
be one of the key areas that PVR needs to continually focus on.
2. PVR needs to stay updated about the trends in the industry especially the marketing
strategies and new products from the major competitors in Gurgaon : DT and Big Cinemas.
3. They should focus on enhancing movie watching experience by investing in technology eg the
IMAX theatre that Adlabs has introduced, PVR should also foray into new technological
advances in the entertainment sector. This will ensure their brand recall.
4. PVR should also head into generating more awareness in the customer base in terms of the
promotional packages offered.
5. PVR should evaluate the option of product bundling.

Limitations
The limitations of the project are:
1. Limited sample size of around 200 for the survey leading to insufficient representation from
all the segments.
2. Limited budget for carrying out the survey.

Future Research
The project can be taken forward with a higher budget and the data be collected from a larger
sample to get a more certain idea about the preferences of customers and their behaviour
patterns. Aspect of Product Bundling can be studied more extensively and based on consumer
behaviour form various packages that would allure them.
References

1. http://www.thehindubusinessline.com

2. http://www.scribd.com

3. http://www.google.co.in/

4. http://business.outlookindia.com/printarticle.aspx?284567

5. http://ibnlive.in.com/news/pvr-vs-cinepolis-the-multiplex-war-is-on/254121-55.html
6. Customer retention : A usage segmentation and customer value approach by Art
Weinstein

7. http://articles.economictimes.indiatimes.com/2012-08-24/news/33366602_1_ajay-bijli-
pvr-cinema



8. http://www.justdial.com/Mumbai/pvr-cinema-%3Cnear%3E-mulund-
west/022P5337821_BZDET#rvw

9. http://www.consumercomplaints.in/bycompany/pvr-cinemas-a26947.html
Appendix: Questionnaire
1. What age group do you belong to? *
Below 20
20 - 30
30 - 45
Above 45
2. What is the frequency of your visit to Multiplex in a month ? *
1 - 2
3 - 4
4 - 6
> 6
3. According to you, which is the best Multiplex in Gurgaon ? *

4. What draws you towards PVR ? *
Experience
Facilities
Cost
Accessibility
Other:
5. How will you rate the overall movie watching experience in PVR(1: Lowest, 10: Highest)

6. In the past, what lead you choose another multiplex over PVR *
High cost
Unavailability
Ease of booking


Facilities like parking
Other:
7. In terms of price of the ticket, PVR (1: Not Satsisfied, 10: Satisfied)

8. Which PVR do you prefer the most in Gurgaon ? *
PVR, Sahara Mall
PVR, MGF
PVR, Ambience Gold
PVR, Ambience Premier
9. What kind of movies do you watch most frequently in multiplexes *
Hollywood Movies
Bollywood Flicks
Regional Language Movies
None
10. How would you rate your 3D viewing experience in PVR ? *(1:Least, 10: Highest)

11. What method did you use to book your tickets ? *
Online Booking from PVR Site
Online Booking from other websites. (Read BookMyShow)
Standing-in-line Booking :P
Not Applicable
12. Which show timings do you usually prefer ? *

13. Which of PVRs promotional offers did you like ? *
All shows at Rs. 75/- on Thursday
Buy one get one on Wednesday Morning shows.
Other offers (like - Kotak Super Saturdays, HSBC 50% cash back etc.)
I dont know much about PVR promotional offers.
Other:


14. What do you dislike the most about the refreshments sold in the multiplex ? *
Variety
Quality
Price
Other:
15. How useful do you feel newspaper ads are ? *(1:Least, 10: Highest)

16. How useful do you feel digital ads are?* (1:Least, 10: Highest)

17. How accessible do you think are PVR theatres?* (1:Least, 10: Highest)
18. How do you rate refreshments available?* (1:Least, 10: Highest)
19. How do you rate visual and audio effects?* (1:Least, 10: Highest)

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