Description
This presentation gives a brief about multiplex industry in India, factors that led to boom in multiplex.
INTRODUCTION
?
?
Over the past few years, multiplexes have helped in bringing back audiences to the theatres. They remain ambitious on their plans for doing the same in the long run. By 2013, the number of multiplex screens in India is likely to cross 1,600, according to the FICCI-KPMG ?Indian Media and Entertainment Industry Report‘. Jehil Thakkar, executive director, media and entertainment, KPMG said, ?This (multiplex) market depends a lot on the real-estate sector. There is room for improvement and growth seems likely for multiplexes. Expansion plans are mainly for regional markets like Tier-II and Tier-III cities. There is a thirst for regional cinema and with more multiplexes in these regions, it will only boost the market.?
?
?
?
?
?
?
Satyam Cineplexes had plans to reach the target of 100 screens by 2012—targeting metros and Tier II cities. Fun Multiplex Pvt Ltd operates 81 cinema screens in 24 locations. Talkie Town, the cinema exhibition brand of Fun Multiplex Private Limited, has plans to roll out 150 value screens in Tier II & Tier III cities by the end of 2011. PVR Cinemas, the leading player in this segment, has around 32 cinemas with 136 screens spread across the country. Reliance MediaWorks, which operates through Big Cinemas, currently has 500 screens spread across India, Malaysia and the US. Cinemax, a Kanakia group company, currently operates through 29 locations with 94 screens operational and has plans to expand and increase the number to 400 screens across the country.
WHAT IS MULTIPLEX?
Multiplex is a medium that offers a person composite entertainment comprising of a one stop destination to shop, entertain, and dine and watch a Varity of movies under a common roof. ? The Multiplex model is based on concept of umbrella entertainment built around a primary anchor- movie. ? Typically, the possible income generating channels in a Multiplex can include.
?
? ? ? ? ?
The box office collections Rent from display system Food & beverage Product lunch rentals Promotions by companies to promote consumer goods.
?
The word multiplex has two meaning.
? Firstly it is a medium that often its consumers full
entertainment including the pleasure of shopping, dining, enjoying and watching a wide range of movies under a common platform. ? Secondly it is a type of technology which is referred as Multiplexing with the help of this technology the same movie can be shown simultaneously in all the screens of the Multiplex with minor difference of 3 seconds between their screenings.
A TYPICAL MULTIPLEX
?
A typical multiplex has
? 4-5 Screens
? Ticketing options ? Cafeteria
? Entertainment
? Malls ? Restaurants
MULTIPLEX INDUSTRY
?
The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as well as second and third tier cities. Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such as malls, are driving growth of multiplexes in India. ?Most of the multiplexes in India are anchor tenants in the large format malls making a favorite destination for the youngsters as well as the families. Multiplexes captured the market as complete family entertainment centers. The digital revolution has helped the Media and Entertainment industry to go digital. There are more than 100 digital cinemas in India today.”
The industry is characterized by variations in ticket prices based on the film and location of the multiplex, seasonality, low screen density, increasing average ticket prices, and reducing shelf life of movies. ? The key trends identified include PE/VC investments occurring in multiplex segment, new format in single screen theatres, shift to digital and 3D cinema and alternate modes of revenues. ? The competitive landscape identifies and compares each of the major multiplex operators with respect to their profit and revenues in the market since they dominate an industry where single screen cinemas are highly fragmented. ? The revenues being generated by multiplexes is estimated to be a whopping INR 12,000 Cr. as at the end of calendar year 2009. As per study conducted by PWC the revenue is forecasted at INR 17,000 Cr. at the end of the year 2011.
?
?
They, along with the multiplexes have completely transformed the experience of the viewers. With an increase in the incomes of the people and increasing expenditure on the leisure activities, multiplexes are poised for high growth in India. Other than the sale of the movies tickets, Food & beverages is the major source of revenue for the multiplexes. Space economies and the optimal utilization of the capacities are the major advantages or benefits that the multiplexes enjoy over single screen theatres.
Source: The Indian Entertainment Industry: Emerging Trends & Opportunities – FICCI – E&Y Report, 2004
MULTIPLEX BOOM
?
In India there are about 20,000 theatres and there is a plenty of space and resources for an equivalent number of theatres to be started allover. Due to the high growth rate of the multiplex industry; various benefits are provided by the government such as overall tax concessions, reduction in entertainment tax and so on in order to motivate the industry person.
At a time when single-screen theaters are dying due to lack of footfalls, people are queuing up at multiplexes which sells tickets at almost 5 times the prices prevailing in single-screen theaters at metropolis and tier 2 cities. This fact provides for ample testimony to the increasing prosperity as well as Indian consumer‘s willingness to pay for superior-quality entertainment.
?
?
Some of the other factors involved
? Aspirations
? Attitudinal Change
? Combination of various facilities ? More number of screens
?
?
?
Aspirations: There is a huge group of people who are very ambitious and have a status symbol (premium or the top class) or desire to possess it. Attitudinal Change: Gone are the days when one used to think about saving the money by not going to the theatre along with the family to watch a movie and instead go out for a picnic to enjoy the whole day. More number of screens: This is one of the most important reasons for the multiplex boom. These are more screens, roughly 3-5, when compared to the normal movie theater (Single Screen). As there are many screens in the multiplex, people get a huge variety and range of movies to view. Also, the movie timings are flexible and thus a customer can view any movie of their choice as per their availability and convenience. Due to this the turnover of audiences as compared to the single screen theatres are relatively very high.
?
Combination of various facilities: The concept of satisfying the consumer under one common roof is growing rapidly allover the world. Thus there are two types of combinations found:
? One is a “Mall with a Multiplex ? Second is a “Multiplex with shopping Facilities and
various Amenities” within its roof.
?
The relationship between the multiplexes and the malls is referred as the “Synergy Effect”. It thus helps in satisfying the consumer with the required amount of amenities and facilities needed by bringing all the required resources under one common roof. This helps the consumer to enjoy his whole day at one common place instead of planning to go to various places in order to shop, dine and have fun with his family members.
CHANGING DEMOGRAPHIC PROFILE
Source: KSA Technopak India
SEGMENTATION AND TARGET GROUP
?
According to the research Multiplex owner has conducted, the come up with three categories signifies different groups of people and their behaviour which plays a very important role in making decisions. 1. Groucho 2. Westerner 3. Geeks
?
Groucho:
? This group consist of 32% of audience (Premium grp.) ? They visit the cinema halls occasionally (once‘ in 3 month) ? Prefer to watch Hindi Thriller movies and also Regional
movies. ? Come late to movies at least by 15 minutes. ? Prefer to watch with spouse and children. ? Age grp. 25 – 44 yr.
?
Westerner:
? This group consist of 5 % of population residing in ? ? ? ? ? ?
western part of the city. Visit cinema hall regularly (Once per week) Prefer to watch English movies as action, animation. For Hindi, prefer suspense. Come 10 minute late to movie hall. Prefer to watch movie with family and children. Age group is 35 – 55 yr.
?
Geeks:
? This group consist of 27 % of the population. ? Visit cinema hall frequently (Once in a month) ? Prefer to watch hindi action, war Dubbed English
movies either alone or with friends ? Enters 5 minutes late in the movie hall. ? Age group is of 15 – 24 yrs.
MARKETING MIX OF MULTIPLEXES
?
Product
Expectations made by the consumer Viewing space in the multiplex, view the movie with the latest technology. Cleanliness in the multiplex, punctuality in start timings of the show, comfortable seating arrangements. Apart from the good quality of viewing, one expects great ambience, helpful employees, sophisticated interiors. Incentives provided by the multiplex, reward system.
Product level Generic (the basic benefit)
Expected (the expected benefit)
Augmented (in addition to the expected benefit)
Potential (beyond the usual, pleasant surprise)
?
Price: Indian multiplex follow 2 methods of pricing:
? Cost based pricing ? Competition based pricing
?
Place: FAME, CINEMAX and BIG CINEMAS are the best examples of an organization who has multiplex outlets situated at various places of the city and provides movie viewing services with latest technology.
?
Physical Evidence: Thus physical evidence of multiplex can be summarized into:
? Ambient factors - Air Conditioning - Excellent ventilation ? Design factors - Uniform Appearance - Extensive parking lot - Spacious interiors ? Social Factors - Well dressed employees - Courteous - Family atmosphere
?
Promotion: The most important strategies are:
? Awareness ? Brand Visibility
? Induce Sales
? Induce first time trial
MARKETING MEDIA CHANNELS FOR COMMUNICATION is used by firm ? Web: Personal website for multiplex
? ?
?
?
?
to market the movie. SMS: The database of numbers is collected from the customer who watch movies. Hoardings: This is used to recall customers about the movies being screened at multiplex. Tie-ups: Multiplex has tie-ups only when it has promotional activities to be conducted within its premises. It works with the company that is promoting and markets both the company‘s product as well as officials of multiplex. Public relation: This activity supports all the activities which are used to promote multiplex. In –House Branding:
RESEARCH SPEAKS
?
? ?
The operation of a multiplex is related to the broader complex whose part it is. The coexistence of many different activities creates significant positive synergies. A second positive economic impact is the attraction of visitors from other cities. The attraction of such complexes to visitors of other cities increases the possibilities for tourism development. If the city that has such a complex also has additional tourist resources, these combined with the multiplex could lead to the development of cultural tourism in general.
THE IMPACT OF MULTIPLEXES IN URBAN DEVELOPMENT: THE CASE OF STER (EX-EUROPLEX) CINEMA IN LARISSA By Alex Deffner, Christos Liouris
? ? ?
?
?
With the boom and trend in multiplex in India one question which arise is whether single-screens are going to die? The perfect answer to this will be a big ?NO?. The analysis shows that more than 70% of people prefer going to multiplex than a single-screen, but ?The bigger the mod, the greater the thrill? is an old saying. In a country like India where people still feel and believe that a movie needs to have ?PAISA VASOOL? value, it shows that the expenditure on a movie always been a question. Multiplexes offering tickets at around 150 bucks cannot call for large chunk of audience on account of high prices. On the other hand, if a common middle class family – comprising a husband, wife and two kids thinks of venturing out into a multiplex on a Saturday evening, the idea doesn‘t seems to pleasing, if you count the cost! Fact remains that still consumers are ready to spend more as the quality of viewing is much improved compared to a single-screen, the trend which is rising as time goes.http://www.naachgaana.com/2010/06/26/multiplex-and-single-screen-business/
?
The new phenomenon which is gathering pace in and around cities and towns is Multiplexing of single-screens. So, don‘t be surprised if you see a single-screen nearby getting converted into 2-3 screens multiplex. The trend which one can see will eventually make single-screens a rare species in India.
http://www.naachgaana.com/2010/06/26/multiplex-and-single-screen-business/
http://www.researchandmarkets.com/rep orts/1230861/ ?http://www.moneylife.in/article/8/5553.ht ml ?http://www.financialexpress.com/news/pr oducers-multiplexes-lock-horns-onprofit-sharing/435199/0 ?http://www.thehindubusinessline.com/cat alyst/2002/12/26/stories/200212260003 0100.htm
?
doc_985560049.pptx
This presentation gives a brief about multiplex industry in India, factors that led to boom in multiplex.
INTRODUCTION
?
?
Over the past few years, multiplexes have helped in bringing back audiences to the theatres. They remain ambitious on their plans for doing the same in the long run. By 2013, the number of multiplex screens in India is likely to cross 1,600, according to the FICCI-KPMG ?Indian Media and Entertainment Industry Report‘. Jehil Thakkar, executive director, media and entertainment, KPMG said, ?This (multiplex) market depends a lot on the real-estate sector. There is room for improvement and growth seems likely for multiplexes. Expansion plans are mainly for regional markets like Tier-II and Tier-III cities. There is a thirst for regional cinema and with more multiplexes in these regions, it will only boost the market.?
?
?
?
?
?
?
Satyam Cineplexes had plans to reach the target of 100 screens by 2012—targeting metros and Tier II cities. Fun Multiplex Pvt Ltd operates 81 cinema screens in 24 locations. Talkie Town, the cinema exhibition brand of Fun Multiplex Private Limited, has plans to roll out 150 value screens in Tier II & Tier III cities by the end of 2011. PVR Cinemas, the leading player in this segment, has around 32 cinemas with 136 screens spread across the country. Reliance MediaWorks, which operates through Big Cinemas, currently has 500 screens spread across India, Malaysia and the US. Cinemax, a Kanakia group company, currently operates through 29 locations with 94 screens operational and has plans to expand and increase the number to 400 screens across the country.
WHAT IS MULTIPLEX?
Multiplex is a medium that offers a person composite entertainment comprising of a one stop destination to shop, entertain, and dine and watch a Varity of movies under a common roof. ? The Multiplex model is based on concept of umbrella entertainment built around a primary anchor- movie. ? Typically, the possible income generating channels in a Multiplex can include.
?
? ? ? ? ?
The box office collections Rent from display system Food & beverage Product lunch rentals Promotions by companies to promote consumer goods.
?
The word multiplex has two meaning.
? Firstly it is a medium that often its consumers full
entertainment including the pleasure of shopping, dining, enjoying and watching a wide range of movies under a common platform. ? Secondly it is a type of technology which is referred as Multiplexing with the help of this technology the same movie can be shown simultaneously in all the screens of the Multiplex with minor difference of 3 seconds between their screenings.
A TYPICAL MULTIPLEX
?
A typical multiplex has
? 4-5 Screens
? Ticketing options ? Cafeteria
? Entertainment
? Malls ? Restaurants
MULTIPLEX INDUSTRY
?
The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as well as second and third tier cities. Favorable demographics in a cinema-crazy nation, tax exemptions, and quality locations such as malls, are driving growth of multiplexes in India. ?Most of the multiplexes in India are anchor tenants in the large format malls making a favorite destination for the youngsters as well as the families. Multiplexes captured the market as complete family entertainment centers. The digital revolution has helped the Media and Entertainment industry to go digital. There are more than 100 digital cinemas in India today.”
The industry is characterized by variations in ticket prices based on the film and location of the multiplex, seasonality, low screen density, increasing average ticket prices, and reducing shelf life of movies. ? The key trends identified include PE/VC investments occurring in multiplex segment, new format in single screen theatres, shift to digital and 3D cinema and alternate modes of revenues. ? The competitive landscape identifies and compares each of the major multiplex operators with respect to their profit and revenues in the market since they dominate an industry where single screen cinemas are highly fragmented. ? The revenues being generated by multiplexes is estimated to be a whopping INR 12,000 Cr. as at the end of calendar year 2009. As per study conducted by PWC the revenue is forecasted at INR 17,000 Cr. at the end of the year 2011.
?
?
They, along with the multiplexes have completely transformed the experience of the viewers. With an increase in the incomes of the people and increasing expenditure on the leisure activities, multiplexes are poised for high growth in India. Other than the sale of the movies tickets, Food & beverages is the major source of revenue for the multiplexes. Space economies and the optimal utilization of the capacities are the major advantages or benefits that the multiplexes enjoy over single screen theatres.
Source: The Indian Entertainment Industry: Emerging Trends & Opportunities – FICCI – E&Y Report, 2004
MULTIPLEX BOOM
?
In India there are about 20,000 theatres and there is a plenty of space and resources for an equivalent number of theatres to be started allover. Due to the high growth rate of the multiplex industry; various benefits are provided by the government such as overall tax concessions, reduction in entertainment tax and so on in order to motivate the industry person.
At a time when single-screen theaters are dying due to lack of footfalls, people are queuing up at multiplexes which sells tickets at almost 5 times the prices prevailing in single-screen theaters at metropolis and tier 2 cities. This fact provides for ample testimony to the increasing prosperity as well as Indian consumer‘s willingness to pay for superior-quality entertainment.
?
?
Some of the other factors involved
? Aspirations
? Attitudinal Change
? Combination of various facilities ? More number of screens
?
?
?
Aspirations: There is a huge group of people who are very ambitious and have a status symbol (premium or the top class) or desire to possess it. Attitudinal Change: Gone are the days when one used to think about saving the money by not going to the theatre along with the family to watch a movie and instead go out for a picnic to enjoy the whole day. More number of screens: This is one of the most important reasons for the multiplex boom. These are more screens, roughly 3-5, when compared to the normal movie theater (Single Screen). As there are many screens in the multiplex, people get a huge variety and range of movies to view. Also, the movie timings are flexible and thus a customer can view any movie of their choice as per their availability and convenience. Due to this the turnover of audiences as compared to the single screen theatres are relatively very high.
?
Combination of various facilities: The concept of satisfying the consumer under one common roof is growing rapidly allover the world. Thus there are two types of combinations found:
? One is a “Mall with a Multiplex ? Second is a “Multiplex with shopping Facilities and
various Amenities” within its roof.
?
The relationship between the multiplexes and the malls is referred as the “Synergy Effect”. It thus helps in satisfying the consumer with the required amount of amenities and facilities needed by bringing all the required resources under one common roof. This helps the consumer to enjoy his whole day at one common place instead of planning to go to various places in order to shop, dine and have fun with his family members.
CHANGING DEMOGRAPHIC PROFILE
Source: KSA Technopak India
SEGMENTATION AND TARGET GROUP
?
According to the research Multiplex owner has conducted, the come up with three categories signifies different groups of people and their behaviour which plays a very important role in making decisions. 1. Groucho 2. Westerner 3. Geeks
?
Groucho:
? This group consist of 32% of audience (Premium grp.) ? They visit the cinema halls occasionally (once‘ in 3 month) ? Prefer to watch Hindi Thriller movies and also Regional
movies. ? Come late to movies at least by 15 minutes. ? Prefer to watch with spouse and children. ? Age grp. 25 – 44 yr.
?
Westerner:
? This group consist of 5 % of population residing in ? ? ? ? ? ?
western part of the city. Visit cinema hall regularly (Once per week) Prefer to watch English movies as action, animation. For Hindi, prefer suspense. Come 10 minute late to movie hall. Prefer to watch movie with family and children. Age group is 35 – 55 yr.
?
Geeks:
? This group consist of 27 % of the population. ? Visit cinema hall frequently (Once in a month) ? Prefer to watch hindi action, war Dubbed English
movies either alone or with friends ? Enters 5 minutes late in the movie hall. ? Age group is of 15 – 24 yrs.
MARKETING MIX OF MULTIPLEXES
?
Product
Expectations made by the consumer Viewing space in the multiplex, view the movie with the latest technology. Cleanliness in the multiplex, punctuality in start timings of the show, comfortable seating arrangements. Apart from the good quality of viewing, one expects great ambience, helpful employees, sophisticated interiors. Incentives provided by the multiplex, reward system.
Product level Generic (the basic benefit)
Expected (the expected benefit)
Augmented (in addition to the expected benefit)
Potential (beyond the usual, pleasant surprise)
?
Price: Indian multiplex follow 2 methods of pricing:
? Cost based pricing ? Competition based pricing
?
Place: FAME, CINEMAX and BIG CINEMAS are the best examples of an organization who has multiplex outlets situated at various places of the city and provides movie viewing services with latest technology.
?
Physical Evidence: Thus physical evidence of multiplex can be summarized into:
? Ambient factors - Air Conditioning - Excellent ventilation ? Design factors - Uniform Appearance - Extensive parking lot - Spacious interiors ? Social Factors - Well dressed employees - Courteous - Family atmosphere
?
Promotion: The most important strategies are:
? Awareness ? Brand Visibility
? Induce Sales
? Induce first time trial
MARKETING MEDIA CHANNELS FOR COMMUNICATION is used by firm ? Web: Personal website for multiplex
? ?
?
?
?
to market the movie. SMS: The database of numbers is collected from the customer who watch movies. Hoardings: This is used to recall customers about the movies being screened at multiplex. Tie-ups: Multiplex has tie-ups only when it has promotional activities to be conducted within its premises. It works with the company that is promoting and markets both the company‘s product as well as officials of multiplex. Public relation: This activity supports all the activities which are used to promote multiplex. In –House Branding:
RESEARCH SPEAKS
?
? ?
The operation of a multiplex is related to the broader complex whose part it is. The coexistence of many different activities creates significant positive synergies. A second positive economic impact is the attraction of visitors from other cities. The attraction of such complexes to visitors of other cities increases the possibilities for tourism development. If the city that has such a complex also has additional tourist resources, these combined with the multiplex could lead to the development of cultural tourism in general.
THE IMPACT OF MULTIPLEXES IN URBAN DEVELOPMENT: THE CASE OF STER (EX-EUROPLEX) CINEMA IN LARISSA By Alex Deffner, Christos Liouris
? ? ?
?
?
With the boom and trend in multiplex in India one question which arise is whether single-screens are going to die? The perfect answer to this will be a big ?NO?. The analysis shows that more than 70% of people prefer going to multiplex than a single-screen, but ?The bigger the mod, the greater the thrill? is an old saying. In a country like India where people still feel and believe that a movie needs to have ?PAISA VASOOL? value, it shows that the expenditure on a movie always been a question. Multiplexes offering tickets at around 150 bucks cannot call for large chunk of audience on account of high prices. On the other hand, if a common middle class family – comprising a husband, wife and two kids thinks of venturing out into a multiplex on a Saturday evening, the idea doesn‘t seems to pleasing, if you count the cost! Fact remains that still consumers are ready to spend more as the quality of viewing is much improved compared to a single-screen, the trend which is rising as time goes.http://www.naachgaana.com/2010/06/26/multiplex-and-single-screen-business/
?
The new phenomenon which is gathering pace in and around cities and towns is Multiplexing of single-screens. So, don‘t be surprised if you see a single-screen nearby getting converted into 2-3 screens multiplex. The trend which one can see will eventually make single-screens a rare species in India.
http://www.naachgaana.com/2010/06/26/multiplex-and-single-screen-business/
http://www.researchandmarkets.com/rep orts/1230861/ ?http://www.moneylife.in/article/8/5553.ht ml ?http://www.financialexpress.com/news/pr oducers-multiplexes-lock-horns-onprofit-sharing/435199/0 ?http://www.thehindubusinessline.com/cat alyst/2002/12/26/stories/200212260003 0100.htm
?
doc_985560049.pptx