Description
The entertainment industry is booming since last many years and particularly the theatres we can find full of on Friday(s). But the rest of the days the multiplexes do not even able to meet their break even
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? Problem Statement
The entertainment industry is booming since last many years and particularly the theatres
we can find full of on Friday(s). But the rest of the days the multiplexes do not even able
to meet their break even. The Miniplex concept that‘s why been introduced first time in
India. The awareness of the same is presently required to be tested amongst the
consumers. The liking of the Miniplex theatres is also needs to be known to be successful
in the market.
? Research Objectives
Primary Objectives
? Identifying the feasibility of setting up a miniplex at Chandkheda(Ahmedabad)
? Identifying the awareness of the ?Miniplex? concept
? Preparing financial map of setting up such venture.
Secondary Objectives
? Identifying the liking of the consumers towards the Miniplex theatres
? Identifying the frequency of the consumers towards visit of the theatres
? Identifying the amount spend by the consumers towards the theatres
? Identification of the most visited theatre and the reasons for the same in the city of
Ahmedabad.
? Identification of the most important parameters for visiting the theatre
? Identifying the liking of other purposes of the theatre apart from movies
? Nature of Research
Research is descriptive and conclusive in nature. Research will be done mainly to identify
the consumer preference towards the Miniplex theatres against the Multiplex.
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? Research Instrument
In this project research instrument which will be used vitally is structured questionnaire
? Analysis
Statistics tests like chi-square, cross tabs, factor analysis, correlation, and KS test will be used
to analyze the data. Computer software Statistical Package for Social Science (Version 17.0)
and Microsoft excel will be used to analyse the data.
? Data Sources
Primary Sources
? Sample Universe: - Residents of the area of Chandkheda.
? Sampling Size: - For the purpose of research the sample size would be 300 people.
? Sampling Method: - Stratified Convenience Sampling Method. Where the strata are
Students and Working class people
Secondary Sources
? Past records & financial statements of K Sera Sera.
? Beneficiaries
? The research will benefit most to the researchers to understand the entertainment market
and consumers.
? Apart from that the research will be useful for real estate agents, new project developers
etc.
? Qualifications Of the Reseacher
Jaydeep Patadiya – B.Com, MBA (Mktg- Pursuing)
Rahul Goyal – B.Sc (Mathematics), MBA (Mktg- Pursuing)
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2.1 Hindi Film Industry
Hindi Film Industry is the major part of the magnanimous Indian film industry. It is used to refer
the Hindi film industry in India. The term is often misunderstood as the whole of Indian cinema
but it is only a part of the Indian film industry. Hindi Film Industry is the largest film producer in
India and one of the largest in the world. Hindi Film Industry is one the most recognized film
industry in the world with reach in diverse regions like U.S., Britain, Nepal, Japan, China,
Russia, Canada and many other parts of the world.
?Raja Harishchandra(1913)‘ was the first silent film made in India. In 1920‘s only around 25 –
30 films were made by Indian filmmakers, while this number jumped to around 200 films in
1930‘s. Today in 21st century around 100 films are being made yearly by the Indian filmmakers.
This shows that Hindi Film Industry has come a long way since 1930‘s. In 1931 came a huge
transition when first movie with sound was released named ?Alam Ara‘. Then in 1950‘s
filmmakers adopted the technology by switching from black and white to colour. This made
films more beautiful and colourful in respect of clothing and location.
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2.2 Hindi Film I ndustry Over The Decades
Hindi Film Industry has seen enormous evolution over the years. Many great artists have
contributed to the success of the Hindi Film Industry decades by decades. Every decade saw
great and unforgettable films. The major evolution in the Hindi Film Industry started in 1940‘s
and 1950‘s when sound and colours became essential parts of films in India.
2.2.1 1940’s
Hindi Film Industry saw many great artists like Prithviraj Kapoor and Dilip Kumar during this
period of pre-independent and independent India. The battles against the Britishers during this
era made lots of filmmakers to make patriotic films. The expression against the British Empire
was very much visible in Dilip Kumar’s ?Shaheed(1944)‘, ?Andaaz‘, ?Jwar Bhata‘, ?Sunhere
Din‘ and Jugnu are some of the other significant films released during this period.
2.2.2 1950’s
This era was dominated by great and unforgettable artists like Raj Kapoor, Guru Dutt, Dev
Anand, Nargis, Meena Kumari and Ashok Kumar. In the later part of 1950‘s Sunil Dutt and
Kishore Kumar dominated the Hindi Film Industry. Rural India was portrayed in this era. The
farmers‘ struggle and their uprising against the landlords for social equality was a dominant
factor of this era. During this times humour also started making its way in the Hindi Film
Industry as Kishore Kumar’s ?Chalti Ka Naam Gadi‘ did wonders as the Indian population
wanted to laugh after painful 200 years of freedom struggle. In 1957, ?Mother India‘ became the
foremost Indian film to reach the Oscars in the Best Foreign Film category ?Hulchul‘, ?Aan‘,
‘Jagte Raho‘, ‘Naya Daur‘, ?Kaagaz Ke Phool‘ and ?Baijuare some masterpiece of this era.
2.2.3 1960’s
During this decade, Rural India was left in the wake of India being looked upon as a rising
nation. Improvement of law and order in the country was the need of the hour thus films like
?Kala Bazaar‘ and ?Kanoon‘ dealt with this subject. Later in this decade, flashing vintage cars
and multi-coloured attires became integral parts of Hindi films as India was slowly but steadily
entering the world of fashion. ?Mughal-e-Azam‘, ?Sahib Biwi Aur Ghulam‘, ?Guide‘, ?Jewel
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Thief‘, ?Ram Aur Shyam‘, ?Aradhna‘ and ?Barsaat Ki Raat‘ are some of the most momentous
films of this period.
2.2.4 1970’s
This decade was largely dominated by artists like Rajesh Khanna, Amitabh Bachchan, Hema
Malini, Jaya Bhaduri, Dharmendra and Manoj Kumar. Films like ?Reshma aur Shera‘, ?Seeta
Aur Geeta‘, ?Abhiman‘, ?Bawarchi‘, ?Aandhi‘, ?Golmaal‘, ?Anand‘, ?Mera Naam Joker, ?Hare
Krishna Hare Raam‘ and Purab Aur Paschim‘ are some of the most significant films of this era.
It was in this era that Amitabh Bachchan got the title of ?Angry Young Man of Indian Cinema‘
with some of his great films like ?Zanjeer‘, ?Sholay‘, ?Amar Akbar Anthony‘, ?Don‘ and ?Kaala
Pathar‘. This era also saw the western influence on the Indian society with films like ?Hare Rama
Hare Krishna‘ and ?Purab Aur Paschim‘.
2.2.5 1980’s
During this decade the concept of ?Angry Young Man‘ continued as lots of films were made
showing one man fighting against the injustices of the society. This era also saw some other
great artists like Anil Kapoor, Rishi Kapoor, Sanjay Dutt, Aamir Khan, Kamala Hassan,
Sridevi,Madhuri Dixit, Vinod Khanna, Meenakshi Shishadri and in the later parts of this decade
Salman
Khan made an entry with a huge hit ?Maine Pyar Kiya‘. This decade had mixes of comedy,
musical and family oriented films. ?Namak Halal‘, ?Chasme Baddoor‘, ?Angoor‘, ?Namkeen‘,
?Jaane Bhi Do Yaaro‘, ?Naukar Biwi Ka‘, ?Chaalbaaz‘, ?The Burning Train‘, ?Disco Dancer‘,
?Mr India‘ and ?Jaane Bhi Do Yaaro‘ are some memorable films of this time.
2.2.6 1990’s
Romance and family oriented films were the flavour of this decade with bits and pieces of
comedy films, war films and films based on life in underworld contributing to the success of
many artists of this decade. Shahrukh Khan, Salman Khan, Kajol, Rani Mukherjee, Priety
Zinta,Akshay Kumar dominated the Hindi Film Industry in this decade. Shahrukh Khan became
the next super star with his some of the unforgettable romantic films like ?Dilawalwe Dulhaniya
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Le Jayenge‘, ?Dil To Pagal Hai‘, ?Kuch Kuch Hota Hai‘, ?Mohabattein‘ and ?Pardes‘ in this
decade.
?Darr‘, ?Hum Aapke Hai Kaun‘, ?Dil‘, ?Beta‘, ‘Deewana‘, ‘Khuda Gawah‘, ‘Karan Arjun‘,
?Rangeela‘, ?Hum Saath Saath Hain‘, ?Hum Dil De Chuke Sanam‘ ?Taal‘, ?Border‘, ?Dil Se‘ and
?Satya‘ are some of the prominent films of this period.
2.2.7 2000’s
Dominance of Hrithik Roshan, Abhishek Bachchan, Aishwariya Rai, Ranbir Kapoor and Sonam
Kapoor continues as this decade is coming to an end. This decade saw lots of films being made
on issues of terrorism. Films like Monsoon Wedding and Bollywood Hollywood appealed the
NRI audience who are increasing in numbers day by day. Thus a new concept of ?Hinglish‘
cinema became popular among the young generation. Films like ?Lagaan‘, ?Munaabhai MBBS‘,
?Lage Raho Munnabhai‘, ‘Gadar Ek Prem Katha‘, ?Lagaan‘, ?Dil Chahta Hai‘, ?Kabhi Khushi
Kabhie Gham‘, ? Koi Mil Gaya‘, ?Kal Ho Naa Ho‘, ? Devdas‘, ?Saathiya‘, ?Veer Zaara‘, ?Main
Hoon Na‘, ?Krrish‘, ?Om Shanti Om‘, ?Taare Zameen Par‘ ?Chak De India‘, ?Ghajini‘ are some
of the memorable movies of this decade. This is the decade when attitude of the filmmakers and
audience opened and films were made on issues which no one would have considered ten years
ago. This decade would be remembered for A.R. Rehman who received an Oscar in the early
2009.
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2.3 Film Exhibition Business In India
India's craze for films has not been fully exploited by the "Film Exhibition" industry due to the
lack of screen density in the country coupled with the poor quality of screens. "Multiplex
Cinemas" offer an alternative to tap this potential by providing a quality experience to the viewer
as well as economies to the multiplex operator.
"Films" has been one of the integral components of the Indian entertainment industry
contributing nearly 27% of the total revenues of the entertainment industry. Besides, films also
contribute to other components of the entertainment industry like music, television and live
entertainment. The Indian film industry is one of the most complex and fragmented national film
industries in the world comprising of a number of regional film industries like Hindi, Tamil,
Telugu, Kannada and others. The Hindi film industry is the most popular among them. Though
India produces the largest number of films in the world (Approximately 1000 per year), it
accounts for only 1% of the global film industry revenues. In spite of being over 90 years old, the
Indian film industry was accorded the status of industry only in 2000. Over the years, the Indian
film industry has been highly unorganized as film financing was dependant on private and
individual financing at extremely high interest rates. Only recently, the industry has got access to
organized finance.
With vertical integration taking place between producers, distributors, exhibitors, broadcasters
and Music Company‘s corporatization is now taking shape in the Indian film industry. We
believe, that corporatization, will bring about transparency, accountability and consolidation
which will help to improve the overall profitability of the Indian film industry as well as reduce
piracy and leakages which presently account for 14% of the Indian film industry's revenues.
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2.4 Tremendous Scope
Film exhibition forms the most important component of the Indian film industry. According to
the - KPMG report domestic theatrical revenues contributes 57% of the total Rs59bn film
industry revenues and are expected to grow at 17%. Overall, the Indian film industry is expected
to grow at 16% CAGR it is expected to reach Rs143bn in 2010. The main pockets for film
exhibition in India are Delhi, Mumbai and South India. Due to various regional language film
industries in the South, it has become an important film exhibition pocket. Hyderabad and
Bangalore are 2 southern cities where occupancies are exceptionally high at around 70%-80%.
(2.1 Growth of entertainment industry)
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2.5 Multiplexes Feeding India’s Movie Mania
Indian and Hollywood films, although a ticket now costs about $3 (Rs121). Moreover, many are
located in big malls, adding the attraction of shopping to a day out at the movies. Earlier, it was
like one film in one hall, you don‘t get tickets you go home said Dipti Varma, a young executive
with a business forum. Now you have a choice of films under one roof.
Such has been the runaway success of this cinema viewing experience that today, even though
multiplexes make up just 2% of India‘s nearly 11500 screens, they account for more than half the
box office revenue of Hollywood releases in the country and more than a third for Bollywood.
That success, however, has not been limited to the glitzy cinema halls.
Industry analysts say that multiplexes, with their smaller halls, have also redefined filmmaking
by creating a niche for experimental cinema among urban, educated audiences.
Multiplexes, where ticket prices are five times that at a single-screen cinema, ensure a faster
return on investment for producers and, because of quick turnarounds, have become instrumental
in raising the output of films, he said. ?The idea now is to recover investments within the first
weekend,? said Bose, who has authored several books on Bollywood.
Independent film-makers like Madhur Bhandarkar agree, saying multiplexes have proved to be a
blessing as many recent hits would never have been made if it were not for them. ?Exhibitors
would never run my films in a 1,000-seater hall,? said Bhandarkar, a leading director known for
his unconventional films. For businessmen who kept their faith in movie halls and invested in
multiplexes, it has been a gamble that paid off. They have thrived on the back of tax incentives
over the last five years, and are now looking to expand, according to industry group Ficci.
Aiming to widen their base in search of greater profits, they are now moving to smaller cities and
towns, where operating costs are lower, allowing for greater flexibility in ticket pricing.
?Multiplexes will first reap the more lucrative markets— reap the low hanging fruit first—and
then move on to the smaller markets,? said Deepak Asher, director of multiplex operator Inox.
?It is just a question of time before multiplexes hit the B and C towns big time.? While PVR Ltd,
the pioneer, has about 70 screens, Inox has about 50. Adlabs Films Ltd, which branched out from
film processing to multiplexes, plans to have about 80 screens by 2007-08.
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The multiplex industry is expected to grow more than 44% to $220 million by next year,
according to a recent report by brokerage B&K Securities. The overall Indian film industry, now
worth about $2 billion, is expected to grow to $4.3 billion by 2011, Ficci says.
While more and more single-screen cinemas are converting to multiplexes in cities, they still
remain the entertainment mainstay for millions in small towns and villages. They are also
popular with the urban poor because of their cheaper tickets. Analysts say high ticket prices have
also meant that average occupancy levels in multiplexes have hovered at around 40%. They say
that as multiplexes mushroom and begin cutting into each others‘ territories, occupancy levels
could plummet to 30%. ?This could mean the multiplex boom is a bubble that will burst unless
ticket prices are brought down,?
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2.6 Key Players I n Multiplex
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2.7 Demand Side - Strong pull
Demand side environment has never been better for the whole media & entertainment industry in
general and multiplex sector in particular. A lot of demographic changes coupled with sector
fundamentals are expected to fuel demand side of the story for the sector.
2.7.1 Prosperity To Drive Discretionary Spend
India is a highly favorable country for
consumer industries with all the key
indicators pointing towards higher
consumer spends in the coming years.
It has seen its per capita income
doubling in the last 6 years, it has
more than 60% of its people under the
age of 60, urbanization and exposure
to western lifestyle is rising, all
leading towards increasing
consumerism in the coming decade.
In the buoyant times; people tend to
spend more on the leisure based
consumption. For the multiplex sector, the target group is in the age group of 15-60 years of age,
which visits the theaters more often than others.
2.7.2 People Willing To Pay For Quality
With the entry of multiplexes, which provide better quality movie watching experience at a
higher price compared to single screen theaters, more and more middle income group people are
coming back to the theatres thus unlocking a latent demand. This is a classic case of leisure
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consumption winning over value proposition in India. As content supply booms, more and more
people will turn to multiplexes because of the rising willingness of people to pay for such
services.
2.7.3 Production of Hindi movies
The Indian film industry, with over 3 billion admissions per annum, is the largest in the world, in
terms of number of films produced per year. This industry, which was worth US$ 2.12 billion in
2006, is estimated to grow at a CAGR of 16 per cent to US$ 4.42 billion by 2011. The opening
of the film industry to foreign investment coupled with the granting of industry status to this
segment has had a favorable impact, leading to many global production units entering the
country. For example, Walt Disney has partnered with Yash Raj Films to make animated movies,
the Warner Group is funding the Sippys' film projects.
2.7.4 Where Will You Watch Them?
India is an entertainment hungry nation, and the major sources of entertainment are cricket and
Bollywood. More than 3.3bn tickets are sold in India annually, this makes us the most cinema
going population in the world. Even then, there are only ~11,000 screens operational in the
country. Secondly, 95% of these are single screen theatres many of which have poor quality
ambience.
Most of the single screen theatres are run by single proprietor, often without proper operational
management skills. Moreover, because of the poor quality of prints supplied to the single screen
theatres in the rural areas, footfalls have been coming down. On top of it, these screens are not
eligible for entertainment tax exemptions. These factors have eroded the viability of these
screens resulting in poor infrastructure spend which further reduces footfalls.
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2.7.5 Enough Space For Multi – Screen Theatres
We believe that there is enough space for more multiplex projects given the quantum of demand
and lack of supply in the sector. Our preliminary analysis suggests that at national level and
considering only the urban population demand in the age group of 15-60 years, 662 multiplexes
with 3 screens per property i.e. ~2000 screens can operate at 35% capacity. All of the multiplex
players combined are operating only ~500 screens at present, hence, we believe that even though
there might be a case for overbuild in some pockets, overall there is enough scope for further
screen supply.
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2.8 Risks & Concerns
2.8.1 Slowdown I n Content Supply
As multiplexes are the consumers of content, they have no control over the supply quality and
quantity. Multiplexes thrive on rising footfalls which in turn depend on the better supply of films
from producers. Hence, any disruption on the supply side will definitely have a negative impact
on the multiplex players' growth.
2.8.2 Alternative Entertainment Avenues
Movies compete for customer attention with other forms of entertainment viz. DVDs, TV,
cricket, festivals etc. An increased acceptability of these avenues will divert footfalls away from
multiplexes.
However, we believe that there is enough room for all to exist and grow simultaneously. A case
in point is US, where almost all forms of entertainment are present and have been well received
by the consumers. Even then, footfall growth hasn't halted over there. Moreover, there might be
possible synergies among these formats which might benefit multiplexes, e.g. showing of IPL
matches on cinema screens.
2.8.3 Mall Development Delays
Supply of quality real estate has been a problem in the past for multiplex players. Mall delays
due to various reasons will hurt expansion plans of the companies. We are building in a 50%
delay in mall handovers to the multiplexes in our analysis. Any delay more than this will hurt
future growth of multiplexes.
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2.8.4 Uncertainty Over Entertainment Tax
Entertainment tax in India is among the highest in the world leading to a much higher occupancy
levels required for breakeven of multiplexes. Even though state governments have announced tax
free windows for these players, uncertainty looms over the viability of multiplexes after the
window expires. We believe that the levels entertainment tax will come down in the future,
otherwise any increase will be passed on to the consumer to a large extent like it is done at
present.
2.8.5 Fluctuating Economic Environment
The whole footfall growth story depends on rising prosperity in the country leading to higher
discretionary consumer spends. If the economic environment starts worsening for a prolonged
period, it will affect patronage levels negatively pulling down top line growths. We are assuming
very low CAGRs at the top line levels for all of the players and are quite optimistic that
multiplexes will grow as expected.
2.8.6 Great Success Of I PL
Bollywood regularly competes with cricket as an entertainment category. One such property, the
Indian Premier League (IPL) was floated by the BCCI during Q1FY09 and held between Apr'08
and Jun'08. This has been a double whammy for multiplex operators. On the one hand, movie
producers were reluctant to release their movies during the quarter; on the other hand, popularity
of IPL reduced cinema visits. Since no fresh content was forthcoming, multiplex operators had to
churn the old movies a little longer and hence, could not generate footfall growth.
Our interaction with the management at various multiplex chains indicates that all operators
experienced low occupancy rates during the quarter. Given the fact that the DLF IPL is here to
stay as a property, at least in the foreseeable future, we believe that low occupancy levels would
characterize the first quarter performance. However, we also believe that going forward, once the
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novelty factor wears off, and multiplex operators would be able to progressively improve their
occupancy levels.
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There were times when people were almost crazy about various facilities of multiplex and they
were ready to pay high sum of money in order to get the experience of a multiplex. But, times
have changed; now people are no longer attracted by the games zone or waiting lounge or food
court. What matters for them is the quality of movie viewing experience & cost of the ticket.
High ticket cost at the Multiplexes is discouraging the movie viewers. People now want a
medium where they can enjoy quality movie viewing experience.
Miniplex here provides a perfect solution for this problem. Although, the size of miniplex is
small, the fun, enjoyment & feel of the multiplex or any big screen size theatre still prevails.
3.1 What is a Miniplex?
A miniplex can be termed as a theatre with limited seating capacity. Since it has limited seating
capacity, the area needed for the same is also far less as compared to a normal multiplex screens.
The size of the screen is also smaller as compared to a normal multiplex screen.
3.2 Benefits
? Due to less infrastructure cost, the cost of the ticket is also lower.
? Mass acceptance is almost guaranteed across all socio – economic strata.
? Operational cost is 60% lower per seat as compared to any multiplex
? Maximum utilization of limited resources is possible
? It provides 100% multiplex feel with 50% lower cost.
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4.1 Company’s Objective
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To develop a highly successful, profitable entertainment business chain, providing service of
movie exhibition at an affordable cost for the community.
4.2 Company’s Vision
?A commitment to provide best quality cinema viewing experience to everyone at an affordable
cost.?
4.3 Company’s Mission
?To be one of the leading player in the movie exhibition industry in next 10 years.?
4.4 Technical I nputs
? E – Cinema technology which would be delivered via satellite.
? Full high definition quality projection.
? No print cost
? Reduction in distribution & logistics cost
? Control in piracy
4.5 Advantages
? Operational cost per seat is 60% lower.
? Provides 100% multiplex at 50% lower cost.
? Low cost to viewers
? Opportunity to reach mass market across all towns and cities.
? Optimum utilization of the infrastructure shall be ultimately boost the Return on
Investment(ROI)
? Payback period can be achieved within a far smaller period as compared to large
multiplexes.
? Requires space of only 3500 to 5000 sq. ft
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Location is one of the most important factors for operating any business successfully.
An ideal location for our miniplex would be Chandkheda. There are a lot of reasons behind the
same which are as follows:-
? Currently there are no theatres in Chandkheda as well as its surrounding areas like
Sabarmati, Zundal, Adalaj, Sardar Patel Ring Road, etc.
? Chandkheda is considered one of the hottest destinations from realty point of view. As a
result of which there is a lot of township projects who are just about to get completed as
well as a lot of other township projects which have started. These projects have a
potential of accommodating lakhs of people. As a result of which we will find huge rise
in population of Chandkheda. This would increase the target market segment for our
miniplex.
? Chandkheda is one of the most heterogeneous localities of the city. You can easily get
population of almost all the income groups; which can be segmented.
? The nearest locality from our location is New C. G. Road which is considered as one of
the sought after residential areas of the city.
? Vishwa Karma Engineering College & IIT – Gandhinagar are two colleges which are
almost next to our location. These colleges have thousands of students studying in it as
well as living in hostel nearby our location. These students are the major target segment
of our miniplex.
? New projects like Dubai World Mall, 4D Square, etc. are coming up in chandkheda. Also
there are well established formats like D – Mart, Sales India, Balaji Mall, Sangath Mall,
etc. which are doing very well. Apart from that there are various restaurants & cafe in
Ahmedabad like Mirch Masala, Cafe Coffee Day, Havmor, etc. All these things combine
to give a visitor a complete package kind of shopping, entertainment, fun, etc.
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Dev Business Hub
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6.1 Segmentation
The segmentation strategy for our miniplex is pretty clear. We have clearly defined our target
segment and aim to cater them. It is targeted mainly towards students & middle class income
group consumers. Our miniplex with different pricing strategy for different shows will try and
cater almost all the sections of people.
? 6.1.1 Consumer Demographic Segmentation
Age: - Out of 300 respondents surveyed we had 78% of the people in the age group of
21 to 40 & almost 19.67% of the people in the age group of below 20. This age group of
people are the major target segment for our miniplex.
I ncome: - Chandkheda is a very heterogeneous locality. It has got the consumers of
almost all the income groups. Our target segment comprises of audience under the
monthly income group of less than 45,000. Also in our survey we have found out that
around 80.95% of the respondents were under the income level of less than Rs. 45,000
per month.
? 6.1.2 Geographic Segmentation
Our miniplex is specifically targeted towards the residents living in Chandkheda,
Sabarmati, Motera, Adalaj, Zundal, etc. Also it is targeted towards students of two
engineering colleges in Chandkheda who study there, live there, or come there to attend
their college.
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? 6.1.3 Consumer Psychographic Segmentation
Movie goers of our target segment can be termed as ?Experiencers? who seek variety and
entertainment. Since they do not belong to affluent class in terms of income; they seek to
strike a balance between household expenses and expense on fashion, entertainment and
socializing.
Also they do consist following major tendencies:-
o Go outside the home for entertainment
o Can be easily reached through traditional media
o Heavy television and radio users, as well as medium internet users
o Receptive to advertising in movie theatre, consider as part of their movie going
experience.
? 6.1.4 Benefits – Sought Segmentation
6.1.4.1 WHAT?
1. What benefits that the customer seeks? – Complete movie going experience.
2. Factors influence demand? – Price, movie, day, time of the day, day of the week,
month etc.
3. What function can the product perform for the customer? – Entertainment.
4. What are the important buying criteria? – Price, ambience, placement, quality service,
premium positioning, status symbol.
5. What risks does the customer perceives – risk of being overcharged, risk of being in an
emergency like fire at the theatre.
6.1.4.2 HOW?
1. How does customer buy the product? – Online /Telebooking / In person
2. How long does the buying process take? – Simple and prompt
3. How do the various marketing mix elements influence the customer at each stage of
buying? – (Explained later in the report)
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4. How does product fit in to their lifestyle? – Entertainment product for the premium.
5. How much would they be willing to spend? – We have decided to keep Rs 70 for all
the shows,
6. How much do they buy in one transaction? – Almost always more than 1 ticket.
Depends upon the number of audience & movie playing.
6.2 Targeting
The whole concept of miniplex is very new in the market and therefore its offering to the
customer is Innovative. Our miniplex has affordable pricing and they target mainly middle class
income group people. We are trying to bring our customers the experience of Luxury Cinema.
We have decided to keep Rs 70 for all the shows.
6.3 Positioning
We have a very well planned market position. Its affordable positioning affects the customers
perceptual positioning. Therefore, we have decided on its marketing strategy and pricing,
keeping the target market in mind. In case of our miniplex, we will make use of all their tangible
elements to prove to their customers that their movie tickets are worth the price they are paying.
Our positioning is evident in our mission statement also which says
“A commitment to provide best quality cinema viewing experience to everyone at an
affordable cost.”
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7.1 Marketing Philosophy
Our marketing philosophy is to present our company as an independent, service oriented
business organization, which is genuinely concerned with providing high – quality service at an
affordable rate.
7.2 Marketing Strategy
? Opportunities
The greatest strength of our project is that there are no competitors currently operating in
our locality. Audience of Chandkheda and its surrounding localities like Sabarmati,
Adalaj, Zundal, residential areas near S. P. Ring Road, etc. are actually in need of a
theatre which is located not far away from their residence.
Audience nowadays is not attracted by the games zone, or food zone, etc. of a multiplex
& high cost of multiplex is discouraging movie buffs. What they want is quality movie
viewing experience and it would be an icing on the cake for them if they are able to get it
at an affordable price.
If we look demographically than major population of Chandkheda consists of families
which belong to middle class & upper middle class income groups. The model of our
miniplex is almost perfect to suit their needs.
? Company Strengths
One of the biggest strengths of our theatre is its operating cost, which is almost 60%
lower as compared to any normal multiplex theatre. This provides us with an opportunity
to set up competitive pricing for our shows, but the sound quality & on – screen
experience still remains the same. So we can provide all the fun of a multiplex movie
experience with almost 50% lower costs. The affordable pricing strategy almost
guarantees the mass acceptance.
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? Our Marketing Strategy I s Two – Fold
First, we must develop a loyal customer base on which to build our business.
Second, we must cultivate and expand this customer base to ensure a long lasting and
solid relationship with our repeat customers and continued vitality of the business with
the addition of new customers.
? Image We Want To Portray
The entire foundation of our business rests on our pledge to provide quality service at a
reasonable price. We will portray our business in such a way that the consumers will feel
that they had value for their money. Even though we have an affordable pricing strategy;
we would still want to portray ourselves as one who provides quality movie viewing
experience to our audience.
7.3 Advertising and Promotion
During our first month of business we will involved in to sound local advertising and promotion.
We will go for banners and news paper advertising. The banners will be displayed nearby the
public places like colleges (Vishwakarma Engineering College and IIT Gandhi nagar),
Chimanbhai Bridge, New CG Road, Near ChandKheda Bus Terminus, Near Narmada Canal,
Shopping Malls like D-Mart, Sales India, E-mall etc. Apart from that we will distribute leaflets
every week for first 1 month along with the news papers.
7.4 Advertising Cost
The advertising initially will be done to make people aware about the theatre. Then the specific
budget will be allocated based on the revenues earned. The image we want to portray is the
theme based theatre with low cost. The initial advertising will be carried out by the print and out
door advertising. The leaflets, banners and news paper advertising will be used.
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? News paper advertising
o The news papers like Divya Bhaskar and Ahmedabad Mirror will be used for
the print advertisement prior to the day of opening that is 31
st
July, 2010-
Saturday. And than once again the same advertisement for the next week. This
will cost us around 50,000 Rs.
? Leaflets
o The leaflets will be sent along with Divya Bhaskar news paper will cost around
15,000 Rs. This medium will be used for initial advertisement purpose. Than
based upon the response the advertisement strategy will be altered.
? Banners
o The small banners using white cloth will be used initially to make familiar the
nearby locality public. This will cost around in total Rs. 35000 for various
public locations. This medium will be used for initial 6 months.
7.5 Grand Opening
? The grand opening will be on the day of Friendship Day that is 1
st
August, 2010,
Sunday. Promotion strategy is to offer free movie show on the day of opening and the
next day of the opening. The prior registration will be required to avail the scheme of
free ticket. Hence forth for 1 week well offer free morning and noon show to attract
people to feel the experience of the new concept of Miniplex. The major news papers
and radio channels will cover the launch news in the city of Ahmedabad.
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8.1 Movie Preference
Movies, that are consider as a most entertaining medium in the entire entertainment industry.
People visit theatres for the best of their entertainment. With so many types of movies coming up
in the Bollywood as well as Hollywood are viewed by the people. The first question was asked to
the respondents to make them involved in the research process as because the questionnaire
designs type is of ?Funnel sequence.? The options given to the respondents are as follows.
? Action
? Love Stories
? Thriller
? Horror
? Documentary
? Reality based
? None of the above
All the above options were asked to the respondents to select for more than one options if
required. The comedy options had not been used because it will lead to biasness as people will
like the comedy movies for time pass option. The result of the data are shown in the below table
as well as graph.
(8.1 Movie preference)
Responses
N Percent
$Movie_preference
a
Action 128 21.2%
Love Stories 154 25.5%
Thriller 94 15.5%
Horror 65 10.7%
Documentory 36 6.0%
Reality based 119 19.7%
None 9 1.5%
Total 605 100.0%
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(8.1 Movie Preference)
From the above graph as well as table we can conclude that out of 300 respondents 605
responses in total were obtained. From those 605 responses Love stories has got the first
preference with 154 i.e. 25.5% of the total respondents. Followed by action and reality based
movies which got second and third preference respectively. Thus we can say that Love Stories is
the most proffered type of movies among respondents. This could be because of the emotional
natured culture of India.
8.2 Type of cable TV connection
The entertainment industry is highly dominated by the television watching habit of the
consumers. New type of TV connections like ?Direct To Home?(DTH) are available for the
consumers to see high quality pictures and sound at their home. This question was asked to the
respondents to know the television connection usage of the people around the Chandkheda area.
The options given to the respondents were, local cable connections and DTH services like
TataSky, Dish TV, Sun TV or Airtel DTH. The response of the respondents can be seen from the
below pie-chart.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
21.20%
25.50%
15.50%
10.70%
6.00%
19.70%
1.50%
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(8.2 TV Connection)
The above pie chart shows the results that 64% of the respondents in the locality use the local
cable TV connections. That is the positive sign for the new venture because they can not access
the specialized services which the DTH provider‘s provide i.e. Movie on demand in which by
paying some amount of rupees one can see movie as and when he wants at his home.
8.3 Movie on demand usage
New DTH services provider are coming up in the market because of advances in the technology
and acceptance of the DTH services also the charges of the same are going down because of new
and new players are coming up in the market. The services provided by these companies are also
increasing i.e. recording of any show, movie on demand etc. These services can be threat for the
theatres because people can use theses services to watch movies rather than going to the theatres.
The respondents who said they are using the DTH services at their home are further asked about
usage of the Movie on demand options. The options given to the respondents were are as
follows.
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? Yes
? No
? Sometimes
(8.3 Movie on demand)
Out of the 300 respondents surveyed 108 respondents use the DTH services and out of that 74%
or 80 respondents said that they are not using the movie on demand option. Here there is a
positive signal for the theatres around the locality as because people don‘t find it suitable to
watch movies at their home the reason of the same could be because of completed system of
ordering movies or the cost of ordering could be high or same as the theatres and therefore to go
to the theatres may be suitable option for the consumers.
8.4 Computer usage
Increasing the education level of the people also increases the usage of various gazettes like
computers. If the consumers are having the computers at their home along with the internet
connection can be a threat for the theatres as because availability of the movies at free of cost
using the internet services. The major free data provider services are ?BitTorrent?. The
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respondents were asked about having a computer at their home or not. The options given to the
respondents were simply Yes or No.
(8.4 Computer usage)
Out of the 300 respondents 299 gave the response of this question and out of those 250
respondents that is 83% respondents said that they are having a computer or a laptop at their
home. That is a negative sign for the theatres as because consumers can watch movies in the
computers especially the youngsters who are more addicted towards the internet.
8.5 I nternet Usage
As explained in the earlier point of the computer usage pattern this question was asked to the
respondents to know that whether they are using internet connection at their premises or not to
generalize the techno-savvy pattern of the consumers of Chandkheda. The options given to the
respondents were simply Yes and No. The histogram that reveals the picture of the internet usage
is as follows.
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(8.5 Internet Usage)
Out of the 300 respondents surveyed 60% that is 179 of the respondents said that they use the
internet connection at their premises. This is again shows a negative impact for the theatres as
because the user of internet may get influenced of watching a movie by downloading it from the
internet. Especially students are regular downloader of the data from the internet.
8.6 Movies download habit from the internet
After asking the respondents about having internet connection or not, the next question asked to
the respondents was about to know their habit of downloading the movies from the internet. The
options were given to the respondents are as follows.
? Yes, I download regularly
? Yes, but only if the movie is average
? No, I don‘t download at all
? No, it is time consuming
? No, I like to watch it in a theatre
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The responses obtained from the respondents can be used to understand the consumer‘s
psychology about the internet downloading patterns. The last option was also given to
understand the consumer‘s habit of watching movies in spite of having computer and internet
connection. The 3D bar graph that reveals the picture is as follows.
(8.6 Movie downloads habit from internet)
The above bar graph reveals that 217 respondents responded to this question and among them 28
% that is 60 respondents said that they visit theatres to watch movies instead of downloading the
movies from the internet followed by third option that is I don‘t download at all. Here it again
shows the positive response towards the theatres as because respondents prefer theatres. The
reason of the same could be lack of time or lack of knowledge or it can be because of sound and
video quality along with fun and shopping facilities at the malls and multiplexes.
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8.6.1 Cross Tabs of Internet Usage and Movie download pattern
Q5_Internet * Q6_Download Cross tabulation
Q6_Download Total
Regularl
y
Only if
average
do not
download
No time
consuming
watch in
theatre
Q5_Intern
et
yes 42 25 41 28 42 178
no 1 4 16 0 18 39
Total 43 29 57 28 60 217
(8.2 Cross tabs of internet usage*movie download pattern)
The cross tabulation result reveals that 19% of the people, who has internet connection,
download movies regularly from the internet. Out of all respondents 62.35% of the respondents
do not prefer to download movies from the internet and 38% of those 62.35% respondents prefer
to watch movies only in the theatre. The result over here turns out to be that there is no
significant difference in the number of respondents who prefer to watch movies only in the
theatre and the respondents who download movies regularly from the internet.
8.7 Members of Video Library
Now, it is essential to know whether the respondents are the members of any video library like
BigFlix, Moserbear, etc. Since, Video libraries provide high quality original video at a nominal
rate to its members; it is likely to affect the frequency and the expenses of an individual towards
movies in theatres.
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(8.7 Members of video library)
Here we observe that none of the respondents is the member of any video library. This may be
because there are no video library in Chandkheda and its surrounding localities or may be
because respondents are not aware of the concept of video library or may be people are not
inclined towards it.
8.8 Mode (Overall)
Mode of watching movies is directly related to the frequency and expense of an individual
towards the same. Here we questioned respondents for the mode(s) they use for watching
movies. Here the options given to them were
? Theatre
? VCD/DVD Purchase
? VCD/DVD Rental
? Ordering through DTH
? Home on TV Channels
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(8.8 Mode theatre)
(8.9 Mode DVD purchase)
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(8.10 Mode DTH)
(8.11 Mode DVD rental)
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(8.12 Mode TV channel)
Here we observe that theatre is the most preferred mode of watching movies among the
respondents. The second most preferred option among respondents is VCD/DVD purchase.
With the availability of Pirated VCD‘s & DVD‘s any new movie released is easily available to
the respondents and that to at a very cheap rate and thus this option is also very highly preferred.
In case of watching movies at home since on Local Cable TV channels; operators these days
tend to show the newly released movie which also plays an important role in the final expense of
an individual towards theatre. As far as ordering movies through DTH is concerned it is clearly
visible that respondents rarely prefers it.
8.8.1 Frequency of watching movies in theatre.
Now there was the need to know the frequency of various modes of watching movies of the
respondents. Here the options given to the respondents were
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? 1 = Once in a week
? 2 = Twice a month
? 3 = Monthly
? 4 = Once or Twice in Six Month
? 5 = Once or Twice in a year
? 6 = I go for every new movie release
(8.13 Frequency of Students in theatre)
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(8.14 Frequency of Professionals)
Here researcher has tried to compare the frequency patterns of students with that of the
professionals. It is based upon the assumption that since professionals have hectic schedules their
frequency pattern tends to differ from that of the students.
We observe that approximately 32% of the students & 31% of the professionals tend to watch
movie at least once in a week. This shows that these two strata does not differ significantly in
terms of watching one movie at least a week.
Also approximately 35% of the students & 36% of the professionals tend to watch at least two
movies in a month. Again there is no significant difference between the two strata when it comes
to watching movies at least twice a month.
Same is the case when it comes to watching movies monthly, once or twice in six months, once
or twice in a year. Both the strata show almost the same frequency even in the case of going for
every new movie release.
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Thus, from the above responses it can be safely concluded that students & professionals exhibit
the same pattern when it comes to the frequency of watching movies in the theatre.
8.8.2 Frequency of VCD/DVD purchase
(8.15 Frequency of Students for DVD purchase)
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(8.16 Frequency of Professionals for DVD purchase)
In the case of Purchasing VCD/DVD there is a noticeable difference between students &
professionals. While 27% of the students tend to purchase VCD/DVD at least once in a week; on
the other hand only 21% of the professionals tend to do the same.
When it comes to purchasing VCD/DVD at least twice in a month; professionals with 33% show
greater tendency then students with 29%. Same is the case when it comes to purchasing
VCD/DVD monthly. Professionals again with 28% show higher preference than students with
almost 22%.
But when it comes to purchasing VCD/DVD once or twice in six months & once or twice in a
year both the strata has equal number of respondents.
Thus, it can be said that professionals do tend to purchase more VCD/DVD then students.
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8.8.3 Frequency of VCD/ DVD rental
(8.17 Frequency of Students for DVD rental)
(8.18 Frequency of Professionals for DVD/VCD rental)
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In the case of DVD/VCD rental; students & professionals differ from each other in many aspects.
When it comes to having rented DVD/VCD weekly; students with 30% nudge ahead of the
professionals with almost 26%.But, in the case of having a rented DVD/VCD twice in a month
students with 16.21% show very less tendency as compared to professionals, where almost 36%
of the professionals tend have it.
The frequency pattern of renting DVD/VCD monthly is almost same for both students &
professionals. But again when it comes to frequency pattern of buying DVD/VCD once or twice
in six months students with 16.21% show much higher tendency than professionals with 6.45%.
The same case has been observed when it comes to having rented DVD/VCD once or twice in a
year. Zero response from professionals in the case of renting DVD/VCD for every new release
clearly shows that they are not inclined towards renting DVD/VCD as much as students.
Thus here we can safely assume that students are more likely to rent a DVD/VCD than
professionals.
8.8.4 Frequency of ordering through DTH
(8.19 Frequency of Students through DTH)
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(8.20 Frequency of Professionals for DTH)
Now in the case of ordering movies via DTH only 6 out of the 150 students & 8 out of 150
professionals mentioned that they use this medium. Although the number of responses are not
sufficient in order to conclude anything we can still say that as per the responses obtained
professionals are more likely to order movie via DTH then students.
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8.8.5 Frequency of home on TV channels
(8.21 Frequency of Students for TV channel)
(8.22 Frequency of Professionals for TV channel)
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To start with there is a huge difference between the numbers of respondents who prefer to watch
movie on TV channels. Students here have higher frequency of watching movies on home at TV
channels as compared to the professionals.
There is almost no difference in terms of percentage of respondents in both the strata in case of
watching movies home on TV channels weekly. There is somewhat difference in the frequency
for twice in a month. Here again students tend to show higher frequency as compared to the
professionals. In rest of the cases also we observe that students show higher frequency of
watching movies on TV channels as compared to professionals.
8.8.6 Overall expenses on theatres
We have asked the amount spend by the respondents on each of the modes of watching movies.
But major important here to know the amount spend on theatres. We have decided the amount in
various ranges i.e. Less than 300, 300 to 600, 600 to 900 and Above 900.
(8.23 Overall expense on theatre)
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The histogram of the expenses on theatre reveals that 43% of the respondents spend less than 300
rs and 37% of the respondents spend between 300 to 600 rs on then theatres. That shows that
people of Chandkheda spend very low amount and therefore low cost theatre can work out very
well in this area.
8.8.7 Correlation
Now here we try to find out strongly Monthly Family Income, Frequency of Visiting Theatre and
Expenses of Theatre are correlated.
Correlations
Monthly_Famil
y_Income
Q8_expnse_the
ater
Q8_freqcy_The
ater
Monthly_Family_Incom
e
Pearson Correlation 1 .227
**
.083
Sig. (2-tailed)
.000 .177
N 293 268 264
Q8_expnse_theater Pearson Correlation .227
**
1 -.354
**
Sig. (2-tailed) .000
.000
N 268 274 269
Q8_freqcy_Theater Pearson Correlation .083 -.354
**
1
Sig. (2-tailed) .177 .000
N 264 269 270
**. Correlation is significant at the 0.01 level (2-tailed).
Here we observe that there exists a positive correlation between monthly family income &
expense in the theatre, as well as monthly family income & frequency of theatre. Also we
observe that the value correlation between expense in the theatre & monthly family income is
0.227 which is far higher than correlation value between monthly family income & frequency of
theatre (.083). So we can say that there is stronger correlation between expense of theatre &
monthly family income as compared to monthly family income and frequency of visiting theatre.
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8.9 Companions for visiting a theatre
Theatres are the place for entertainment and people go to the theatres along with their friends,
family or relatives. It is very important to know that with who the people are visiting theatres as
because the ambiance of the theatre should maintained according to the target audience. This
question was asked mainly to know that people come to the theatres with which kind of their
companions. The options given to them were as follows.
? Family
? Friends
? Relatives
? Spouse
? Alone
The above options were given to the respondents to select multiple options as because the
visitors change their companions according to the situations. The bar graph that reveals the true
picture is as follows.
(8.24 Companions for movies)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Q9_family Q9_friends Q9_relatives Q9_spouse Q9_alone
.4100
.8533
.1300
.1600
.0700
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The above bar graph shows that 85% of the respondents said that they would prefer to visit
theatres along with their friends followed by families that turnout to be the 41% . The very less
response is given to the spouse and that is only 16% respondents prefer to visit theatre with
spouse. That might be because majority of the respondents who are surveyed, are unmarried.
8.10 Highly visited competitors
Before starting any business the first step is to understand the competitors and identify the best
competitor in the market. Ahmedabad is having the major theatre brands like Adlabs, Cinemax,
and Wide Angle etc. There was need to identify the most visited theatre by the consumer. The
success of the company depends on the repeat purchase of the product not only increasing the
number of customers. This question was asked to the respondents to be successful in the market
by identifying the most visited theatre among the consumers. The respondents were forced to
select the first three theatres which they had visited till date and also were asked to rank that
three selected theatres on 1 to 3 scale where 1 being the most highly visited theatre and 3 being
the 3
rd
best visited theatre. The options given to the respondents were as follows.
? K Sera Sera
? R world
? CineMax
? Adlabs
? Wide angle
? Red carpet
? Devi
? City pulse
? City Gold
? Fun Republic
? Others
The frequency of each of the rank given to the theatres by the respondents are shown in the
below table. The weighted mean will be calculated to identify the top three visited theatres by the
respondents
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.
Theatres 1=Highest Visited 2=2nd highest visited 3=3rd highest visited
K_sera_sera 5 0 12
R_world 28 31 26
Cinemax 35 35 41
Adlabs 49 31 21
Wide_angle 69 78 37
Red_carpet 12 16 15
Devi 3 0 8
City_pulse 7 17 30
City_gold 35 41 47
Fun_republic 44 47 60
Others 13 4 3
Total 300 300 300
(8.4 highly visited competitor)
The weighted mean will be calculated by assigning values like 0.3 to the 1
st
ranked, 0.2 to the 2
nd
and 0.1 to the 3
rd
ranked theatre. Then the formulae for the which will be used to calculate mean
will be as follows.
Weighted Mean=
0.3*n1+0.2*n2+0.1*n3
300
Where, n1=number of respondents who gave 1 to the particular theatre
n2= number of respondents who gave 2 to the particular theatre
n3= number of respondents who gave 3 to the particular theatre
The weighted mean for all the theatres and the overall rank of all the theatres are given in the
following table.
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Theaters Weighted Mean Rank
Wide_angle 0.1333 1
Fun_republic 0.095 2
City_gold 0.078 3
Adlabs 0.076 4
Cinemax 0.072 5
R_world 0.057 6
City_pulse 0.028 7
Red_carpet 0.027 8
Others 0.016 9
K_sera_sera 0.009 10
Devi 0.0056 11
(8.5 Waighted mean for highest visited theatres)
The above table that shows that Wide Angle is the top most visited theatre by the respondents
though it is far away from the Chandkheda area with the weighted mean of 13.33% followed by
the Fun republic and City Gold with 9.5% and 7.8% respectively. Adlabs has been ranked 4
th
by
the respondents for visiting the theatre. The reason for visiting these top most theatres could be
because of the sound and video quality, low cost, food court, gaming zones etc. The Gujarati
people are fascinated towards the Khava-Piva and Farva and that facility plays major role to
increase footprints in the theatres.
8.11 Attraction towards frequent visit
The frequent visit of customers depends on some special attribute or facilities that consumers
like the most. This question was asked to the respondents to know the reason of visiting the most
visited theatre. That reason is very useful to understand the competitors Unique Selling
Proposition. We can also emphasize in the feature which is very important to be successful. In
this question the respondents were forced to rank all the options comparatively on the scale of 1
to 8 where 1 is the best reason for frequent visit of a theatre and 8 is the least reason for frequent
visit of a theatre. The options are as follows.
? High sound and video quality
? Comfortable sitting arrangement
? Affordable Cost
? Games
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? Food Court
? Shopping facility is also available
? Because its near to my residence
? I like the audience coming to that theatre
8.11 .1 High sounds and video quality
The sound and video qualities are the first major requirements for any theatre because to feel the
surround sound and digital quality video quality consumers pay heavily for tickets. The new
system of movie screening through satellite is now very successful and reduces the piracy of the
movies. The responses given by the respondents are shown in the histogram.
(8.25 High sound and video quality)
The above histogram reveals that the major reason for visiting the Wide Angle is its high sound
and video quality with 2.17 mean that is the least among all the options. Also we can see from
the histogram that the normal distribution curve is positively skewed with 1.613 that is highest
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among all the options and that reveals that the data are far on the 1 and 2 ranking side from the
mean and gives 1
st
rank as the reason of visiting the Wide Angle theatre. Therefore we should
more focus towards the high quality sound system and high quality projectors.
8.11 .2 Comfortable sitting arrangement
The ambiance of the theatre plays very important role in attracting consumers to visit the theatre
for the second time. The various kind of fancy chairs are available in the market like Push Back,
Electric Remote Chairs etc. The comfortable seats with soft sponge costs heavily but at the same
time it gives the major reason to the consumers to visit the theatre again. The histogram of the
comfortable seats reveals the following facts.
(8.26 Comfortable chairs)
The above histogram reveals that the comfortable seating arrangement as well as chairs is the 2
nd
best reason to visit Wide Angle, Fun Republic or City Gold theatres. The mean of comfortable
sitting arrangements is turn out to be 2.78 with 1.523 standard deviation. The histogram shows
the normal distribution curve to be positively skewed towards the 2 and 3 rankings hence we can
conclude that its a second best important feature for a theatre.
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8.11 .3 Affordable Cost
The rates of the ticket are very important because a very high equipped theatre costs very high
and it directly affects the visiting decision of an individual. The average costing of a theatre
ranges between 100 to150 bucks. Also the show timings affect the cost of the tickets. In the
morning show the cost of the ticket is very low and reaches to around 40 to 60 bucks. The cost is
also a major important criterion for visiting a theatre again.
(8.27 Affordable cost)
The above histogram for affordable cost reveals that the 3
rd
major reason to visit the top three
theatres is its affordable ticket pricing with the mean of 3.45 and standard deviation of 1.945.
The prising of Wide Angle is costly compared to all the other theatres but still its highly visited
the reason of that can be because of the high quality sound system of the theatre. The 2
nd
most
visited theatre is Fun Republic which is running at cheap rates of ticket compared to other
theatres and that can be the major attracting parameter for consumers.
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8.11 .4 Games Zones
The consumers especially youngsters are very passionate about playing games at the theatres.
The games are also an attractive feature for any malls and multiplexes. The major games
available at the theatres include Cricket, Bowling, Ice Hockey, Racing Cars, Video games for
kids etc.
(8.28 Games zone)
The above histogram for gaming zones reveal that the consumers do not have inclination towards
the games facilities at the theatres and got the 7
th
ranking reason for visiting the theatres with
5.91 mean and 1.698 standard deviation. We can see from the histogram that the normal
distribution curve is negatively skewed with -0.71 value.
8.11 .5 Food Court
The Gujarati people are very foodies and they need something to eat and drink at the time of
going out of home for enjoyment. The food court at the theatre is as important as other features
at the theatre. People spend around 300 to 500 bucks for food items at the theatres. The major
available items include Sandwiches, Samosa, Fries, Burger, Hotdog, Coke, Pepsi, Thums-up etc.
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(8.29 Food court)
The above histogram for food court reveals that the consumer does not have special inclination
towards the food court with 5.54 mean and 1.697 standard deviation and got the 6
th
rank as a
preference to visit a theatre frequently. The reason of that could be very high cost of items
available in the theatres. Generally the prises of the cold drinks increase by 50% from normal
prises. That‘s why people will prefer to complete Pet Pooja earlier and than they prefer to visit
the theatre as they are also aware about the show timing.
8.11 .6 Shopping Facilities
The malls are crowded with the so many brands for shopping purposes in the city. The shopping
patterns of consumers are changing day by day. Nova day‘s consumer‘s purchases are impulse
decision. In the crowded mall the ground floor, 1
st
and 2
nd
floors are devoted for shopping
facility and at the top floor there is a theatre. It has been assumed that people come earlier at the
malls for shopping and than they go for watching a movie at the theatre. This option was given to
the respondents especially to know that do consumers prefer a theatre at the area where there is
no any shopping facility.
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(8.30 Shopping facility)
The result of the shopping facility is turned out to be the positive as there is very least
importance given by the respondents towards the shopping facility as a reason for visiting the
theatre with the mean of 6.26 and the standard deviation of 1.595. From the above histogram we
can see that the normal distribution curve is negatively skewed and that concludes that the
shopping facility has got the 8
th
ranking.
8.11 .7 Distance from home
A megacity like Ahmedabad, having a huge big area, where the distance plays very important
role because travelling from one place to another takes time as well as incurs cost of travelling.
Chandkheda area is around 15 Km away from main city of Ahmedabad. There for people has to
travel a lot to watch a movie in a theatre. The theatre near by one‘s premises will be given first
preference to watch a movie because it also reduces per head cost. This option was given to the
respondents to know that whether the nearness of location is the criterion to visit a theatre more
number of times or not.
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(8.31 Distance from home)
The above histogram for the nearness of the theatre as an important criterion has got the highest
values on 4, 5 and 7 rankings and it has got the 4
th
rank in overall ranking as its mean turned out
to be the 4.8 with the standard deviation of 2.224. The importance of location has got the
moderate importance. From the above graph we can see that the normal distribution curve is
slightly skewed towards left. And there for we can conclude that the location proximity has got
the moderate important reason for visiting a theatre.
8.11 .8 Relevance of audience
The perception of the people varies according to the income level and life style. Generally, we
like to visit a place where we find some what the same status people as we are having. A very
high income level person will not like to visit a low priced theatre because he will not like the
audience coming to the theatre. This option was asked to the respondents to know that do people
visit the theatre frequently as because of the same kind of audience or not.
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(8.32 Relevance of audience)
The above histogram for the liking of audience at a particular theatre has got the mean of 5.07
with the standard deviation of 2.162 and the normal distribution curve is also slightly skewed
towards the left. Hence, we can conclude that the audience parameter has got the moderate
importance for visiting a theatre frequently. This could be the reason because people do not pay
much attention towards the other audience of the theatre.
Descriptive Statistics
N Mean
Std.
Deviation Skewness
Statistic Statistic Rank Statistic Statistic
Std.
Error
High_sound_video 296 2.1723 1.0000 1.38541 1.613 .142
Sitting_arrangement 296 2.7838 2.0000 1.52289 1.205 .142
Affordable_cost 296 3.4459 3.0000 1.94076 .498 .142
Games 296 5.9088 7.0000 1.69799 -.710 .142
Food_court 296 5.5372 6.0000 1.69705 -.378 .142
Shopping 296 6.2568 8.0000 1.59500 -1.083 .142
Nearness 296 4.7973 4.0000 2.24427 -.221 .142
Audiance 296 5.0743 5.0000 2.16158 -.066 .142
Valid N (listwise) 296
(8.6 Descriptive statistics for frequent visit)
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The above descriptive statistics table shows entire discussion about the reason of visiting the
most frequent theatres, that is Wide Angle, Fun Republic, and City Gold. The 1
st
reason is
because of the high sound and video quality followed by comfortable sitting arrangement and
affordable cost respectively as 2
nd
and 3
rd
reason. The fourth reason is the proximity from home
and the fifth reason is the kind of audience coming to the theatres.
From the above result we can conclude that we have to focus more on sound & video quality and
comfortable seats. The location proximity for Chandkheda area will be an added advantage.
8.12 Most Important factors for visiting a theatre
This question we had asked to know the importance of various factors while considering visiting
a theatre. The likert scale was used to know the degree of importance for each factor in the
theatre. We have applied the factor analysis technique to know the importance of various factors.
The options given to the respondents were as follows.
? Sound Quality
? Screen Size
? Comfortable Chairs
? Lighting in the theatre
? Personalized services (Snacks, Cold drinks at your seat)
? Shopping facility
? Food court
? Games Zone
? Cost of ticket
? Distance from home
? Advance Ticket Booking
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KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .763
Bartlett's Test of Sphericity Approx. Chi-Square 719.230
Df 55
Sig. .000
(8.7 KMO test)
For analysis of this question we have used Kaise – Meyer – olkin (KMO) measure of sampling
adequacy. This index compares the magnitudes of the observed correlation coefficients to the
magnitude of the partial correlation coefficients. Generally for doing factor analysis KMO value
of greater than 0.5 is desirable. Here since we obtain KMO value of 0.763; thus we can proceed
for factor analysis.
(8.8 Total variance explained)
Total Variance Explained
Com
pone
nt
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulativ
e % Total
% of
Variance
Cumulativ
e % Total
% of
Variance
Cumulativ
e %
1 3.236 29.422 29.422 3.236 29.422 29.422 2.404 21.857 21.857
2 1.788 16.258 45.681 1.788 16.258 45.681 2.118 19.255 41.112
3 1.124 10.217 55.898 1.124 10.217 55.898 1.626 14.786 55.898
4 .879 7.994 63.892
5 .807 7.333 71.225
6 .686 6.237 77.462
7 .641 5.829 83.291
8 .529 4.813 88.104
9 .511 4.644 92.748
10 .425 3.862 96.610
11 .373 3.390 100.000
Extraction Method: Principal Component Analysis.
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(8.9 Component matrix)
Now with the help of rotated component matrix we can reduce the factors. By using ?Varimax
with Kaiser Normalization? rotation method, we found out that there are three important factors.
Now from the above column of 1, 2, & 3 we have to select from each column the factors whose
value is greater than 0.5 & the remaining factor(s) form a new factor all together.So, from the
above we have obtained the following table
Rotated Component Matrix
a
Component
1 2 3
Sound_quality .208 .035 .814
Screen_size .085 .200 .756
Comfortable_chai
rs
.057 .578 .285
Lighting .331 .480 .380
Personalized_serv
ice
.574 .485 .108
Shoping .781 .013 .101
Food_court .772 .115 .160
Games_zone .809 -.131 .087
Cost_of_ticket -.171 .559 .189
Distance -.029 .779 -.250
Advance_booking .144 .572 .109
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 4 iterations.
(8.10 Rotated Component matrix)
Component Matrix
a
Component
1 2 3
Sound_quality .560 -.070 -.624
Screen_size .533 .133 -.564
Comfortable_chai
rs
.483 .429 -.038
Lighting .668 .186 -.054
Personalized_serv
ice
.708 .029 .273
Shoping .601 -.470 .199
Food_court .677 -.381 .177
Games_zone .537 -.601 .174
Cost_of_ticket .267 .551 -.043
Distance .268 .620 .463
Advance_bookin
g
.455 .363 .144
Extraction Method: Principal Component
Analysis.
a. 3 components extracted.
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In Movie Experience
Sound Quality
Screen Size
Out of Screen
Experience
Personalized
Service
Shopping
Food Court
Games Zone
Valued Variables
Comfortable
Chairs
Cost of Ticket
Advance Booking
Distance
(8.11 Factors extracted)
8.13 Show timings
The movies are being shown at various timings in entire day. Earlier the theatres used to start
from the matinee show and operate till the mid night show. Nova days the theatres are starting
from the early morning shows at 7 or 8 am and operates till the mid night shows of 9 or 10 pm.
The different show timings are offered to cater various segments of consumers. The question was
asked to the respondents to know that which is the most suitable show for the customers of
Chandkheda and based on that decide the show timings and also its promotion strategy for our
theatre. The options given to the respondents are as follows.
? Morning( Between 8 am to 12 pm)
? Noon ( Between 12 pm to 3 pm)
? Matinee ( Between 3 pm to 6 pm)
? Evening ( Between 6 pm to 9 pm)
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? Night ( Between 9 pm till midnight)
The respondents were given option to select multiple options because the most preferred show
timing can be more than two and it also depends on convenience. The result of this question can
be used as deciding on focusing a particular show as the main revenue generation show timing.
The analysis of the same according to strata is as follows.
8.13.1 Student’s most preferred show timings
(8.33 student’s most preferred show)
The above bar graph shows that out of 150 students surveyed, 149 gave response about the show
timings and out of them 54% students that is 81 students like to see movies in the morning show
and they have seen movies in the morning show. The second best time is noon followed by
evening and night as the same position. This result could be because of the reason that the
students have very limited pocket money and because of that they prefer morning cheap shows
that cost them around 40 to 50 bucks only. The reason for the same could be to bunk the classes
and enjoy with their friends at the theatre. This is the normal mentality of the students.
.0000
.1000
.2000
.3000
.4000
.5000
.6000
Morning Noon Matinee Evening Night
.5436
.3758
.0805
.2685
.2685
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8.13.2 Professional’s people’s most preferred show timings
(8.34 professional’s most preferred show timings)
The above bar graph for the working class people for the preference of show timings reveals that
out of the 150 people surveyed 39% people said that they visit the theatre at evening shows
followed by the night shows and morning shows respectively. The result of evening and night
shows is turn out to be the equal that could be because of non availability of time during the day
time. The cost of the ticket is not a major issue for them as they earn by themselves.
.0000
.0500
.1000
.1500
.2000
.2500
.3000
.3500
.4000
Morning Noon Matinee Evening Night
.3600
.2267
.1000
.3933
.3867
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8.13.3 Overall preference for show timings
(8.35 overall preference for show timings)
The above bar graph shows the overall preference for show timings of the entire sample. Out of
the 300 respondents 45% of the respondents prefer the morning shows while the evening shows
and night shows got 2
nd
and 3
rd
preference with the means of 33.11% and 32.78% respectively.
The reason of the same could be the low cost of ticket in the morning time. As the Chandkheda
area is not a posh area like Satelite and Navrangpura, the income level of people is quiet low
compared to the other areas of the Ahmedabad. There for people would like to compromise with
the timings. The working class people have to reach their offices at around 10.30 AM to 11.00
AM and there for morning show of 7.00 AM to 10.00 AM would be suitable for them also with
the low pricing of tickets.
.0000
.0500
.1000
.1500
.2000
.2500
.3000
.3500
.4000
.4500
.5000
Morning Noon Matinee Evening Night
.4515
.3010
.0903
.3311
.3278
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8.13.4 Reason for morning show
(8.36 Reason for morning show-students)
(8.37 Reason for morning show professional)
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Here we can clearly observe that students tend to prefer morning shows more than the
professionals. Also we can observe that major reason for the students behind the same is low cost
of the ticket. Although 45 out of 51 professionals have also said that they prefer morning shows;
but total preference of professional class towards morning shows is far less than that of the
students. Hence it won‘t be wrong to infer that professionals are less likely to compromise with
show timings for the benefit of low – cost of the movie.
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8.13.5 Reason for noon show
(8.38 Reason for noon show professional)
(8.39 Reason for noon show students)
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Almost same pattern follows when it comes to noon shows. Most of the students prefer this
timing because they find this time pretty convenient. This may be because students can come to
watch movies once their college gets over in noon. But, since most of professionals are busy with
their jobs during noon; it becomes almost impossible for them to watch movie during that time.
Since there are very theatres which provide low cost tickets even during noon time; there is
relatively low response for low cost during noon shows.
8.14 Awareness of Miniplex concept
A miniplex has already started in Ahmedabad but it is very new and far away from the
Chandkheda where the research is conducted. Researcher wants to know whether people are
aware of this concept or not and if they are aware of it then how would they describe it or how
do they perceive it.
The main purpose of this question thus is to facilitate researcher in knowing the perceptions of
the respondent towards miniplex.
(8.40 Awareness of miniplex)
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Here researcher found out that almost 38% of the people are aware of the miniplex. This is quite
a significant number considering the fact that it has started just a few months ago.
8.15 Preference towards visiting theatre apart from movies purpose
The main purpose of asking this question was to find out which are the other alternatives
available to the theatre apart from showing movies. The responses obtained here can be used to
find out the other feasible options which are available to the theatre when there is no good movie
releasing in the near future or when there is a major sports tournament like IPL is going around.
This will help theatre in minimizing their loss during those times.
Here researcher has already given the some alternatives to the respondents and the respondents
were supposed to select one or more than option (as per their preference). Those alternatives
were
? Watching Live matches
? New Product Launch
? Attending Seminars
? Various film festivals (e.g. special movies on children‘s day, valentine‘s day, etc.)
Responses
N Percent
Other activities
a
Live matches 108 28.2%
Product launch 56 14.6%
Seminars 82 21.4%
Film festivals 137 35.8%
Total 383 100.0%
(8.12 Visit of theatre apart from movies)
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(8.41 Visit of theatres apart from movies)
From the above questions 383 responses were obtained. Various film festivals was the most
preferred option with the frequency of 137 followed by live matches with the frequency of 108.
Here it can be inferred that even though showing live matches seems to be a very lucrative
option (especially in the cricket season); but consumers may still be more inclined towards
watching movies in the theatre. But speaking in the favour of telecasting matches it can be
argued that since this whole thing is still quite new to the people. Also adding to the same point;
since we have such a cricket frenzy crowd their lies a potential of building preference among
consumers over a period of time.
Thus, it can be safely assumed that screening various films during special occasions & showing
live matches seem to be very likely alternatives by which a theatre can survive even in turbulent
times.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Live Matches Product Launch Seminars Film festivals
28.20%
14.60%
21.40%
35.80%
Activities Other Than Movies
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8.16 Morning show preference
The main purpose of asking this question was to find out whether people would turn for an early
morning show given the benefit of the low cost. Early morning show at a very cheap rate can
serve as a differentiating point for the miniplex from its competitors.
(8.42 Morning show preference for students)
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(8.43 Morning show preference for professional)
Since more than 50% of the people from both the strata have given positive response for this
question; we can say that this strategy may work out really well for the miniplex.
Now we do the cross-tabulation between the people who say that they would like to watch an
early morning show with their family monthly income. The main rationale behind this is to find
out whether their decision was completely based on low cost of the ticket or whether they really
liked the innovative idea or whether they would like to try out new show timings
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Q17_morning_time * Monthly_Family_Income Crosstabulation
Count
Monthly_Family_Income
Total
less than
15,000
15,000 to
30,0000
30,000 to
45,000 above 45,000
Q17_morning_tim
e
Yes 43 58 37 19 157
NO 33 43 24 37 137
Total 76 101 61 56 294
(8.13 Crosstab 0f morning time*family income)
Results clearly show that most of the respondents falling in first two income groups (i.e. less than
15,000 & 15,000 to 30,000) have shown their readiness to come for an early morning show for
low cost of the ticket. First two category responses constitute about 64% of the total people who
have agreed to come for an early morning show. The readiness for the early morning show
steadily decreases as we move up in the higher income level group (i.e. above 45,000).So it
won‘t be wrong to say that their decision is mainly based upon the cost of the ticket rather than
trying out new innovative timings of the show.
Hence we say that cost of the ticket plays a very important role while deciding upon a show to
watch the movies.
8.17 Screen size vs Cost of ticket
The screen size of a miniplex is smaller than the screen size of a regular multiplex. There are a
lot of people who go to theatre only watch movie on big screens. Researcher here wants to know
whether people will turn up to the theatre given the incentive of low cost as compared to
multiplexes.
The respondents here were directly questioned about their intent to turn up for the movie and
were given following options to choose from at the same time.
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? Yes
? No
? Cannot Say
(8.44 screen size vs cost for students)
(8.45 screen size vs cost professional)
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Here we observe that around 50% of respondents of both the strata are not ready to compromise
with the screen size for the low cost of the ticket. Only 30% in student strata & 34% in
professional strata have shown their readiness to compromise for the screen size for the cost of
the ticket.
Q18_screensize_vs_cost * Q14_Miniplex Crosstabulation
Count
Q14_Miniplex
Total
Yes No
Q18_screensize_vs_cos
t
Yes 37 55 92
No 57 92 149
Cannot say 18 34 52
Total 112 181 293
(8.14 crosstab of screen size vs cost*miniplex awareness)
Now we do cross tabulation between the respondents who have disagreed to compromise with
the screen size with the knowledge about miniplex.
As mentioned earlier around 62.03% of the people are not aware of the concept of miniplex.
From the above cross tabulation we can clearly see that 92 out of 149 respondents, who have said
that they are not ready to compromise with screen size of the theatre for the low cost of ticket,
are actually not aware of the concept of miniplex. That is around 62% of the respondents who
have disagreed are not aware of miniplex at all. While only 38% of the respondents who are
aware of the concept of miniplex are not ready to compromise
The results might have initially signalled that people may not like miniplex because of its small
screen size. But speaking in favour of the miniplex we can definitely argue that since most of the
respondents have not experienced miniplex their result may be biased. Since in miniplex the
entertainment of the theatre still prevails; we can say that it has the potential and the preference
of the people can change in the favour of miniplex after experiencing it once.
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8.18 Size of audience vs Cost of ticket
Some people consider that it is fun to watch movies in a huge crowd as it builds a nice
atmosphere in the theatre. Also there are some people who go to the theatre only because they
like the kind of audience which turns up in the theatre.
The capacity of the miniplex won‘t be more than 100 seats which is far less than the regular
multiplex capacity of more than 200 seats. Thus researcher here wants to know whether people
would show their readiness in this situation given the incentive of low cost of the ticket.
(8.46 audiance vs cost professional)
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(8.47 audience vs cost for students)
From the above results it is pretty clear that that size and the nature of the audience is not an
important factor for the people. They are ready to come to the theatre regardless of its capacity. It
can also be concluded that people are ready to visit the small theatre given the benefit of the cost
of ticket.
An important reason behind this can be that for most of the people it does not matter who are the
other people in the theatre; but what matters is their companions with whom they have came to
see the movie. If people enjoy watching movies with their friends, relatives, spouse, family, etc.
than size of the theatre does not matter to them.
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8.19 New movie watching habit
The new movie is being launched on majority of every Friday and the box office reviews movie
promotion is carried out from a long time by the producers. There are people who like to watch
movies in the first day and first shows and there are people who wait for movie reviews and than
if the movie is good than only they go to the theatre. The visiting of a theatre also depends on the
?Favourites? that is some one will like to visit theatre if the movie is of their favourite star or
director. This question was asked to the respondent to know the habit of the people of
Chandkheda about watching a movie. The options given to them are as follows.
? See the movie in the first week
? Wait for reviews and then go to the theatre
? Visit the video library and get a DVD on rent
? If movie is very highly praised, then only visit the theatre
? If movie is moderately praised, then do not go to the theatre
The above options were given to the respondents and forced them to rank it comparatively on the
scale of 1 to 5, where 1 is the 1
st
task that they will do and the 5
th
is the least. The detailed
analysis of the all the options are given in the following histograms.
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8.19.1 See the movie in first week
(8.48 First week)
The histogram of watching a movie in the first week when it has been launched shows the mean
of 2.79 with 1.499 standard deviation. The maximum values of 77 and 76 are on the 1
st
and 2
nd
ranking. The normal distribution curve also shows the curve to be normally distributed and
overall ranking it has got is 2
nd
or 3
rd
preference.
8.19.2Wait and watch
The general mentality of the people is like they wait for the movie reviews and than visit theatre
to see a movie. The various sources of the movie reviews are news papers (i.e. Times of India
rating stars by public and box office), internet (i.e. Yahoo movies, Santa Banta.com,
Chakpak.com) and most frequently used method is word of mouth by asking their friends and
relatives.
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(8.49 wait and watch)
The histogram of wait for reviews and than watch movies has got the 1
st
preference among all
the options with the mean of 1.94 and standard deviation of 1.20. This shows that consumers are
very conscious about spending money on entertainment irrespective of their income level. The
curve of normal distribution also is positively skewed with maximum 1
st
rank given by 149
respondents.
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8.19.3 DVD rental
(8.50 DVD rental)
The above histogram of going to get a DVD on rent to see the movie at home has got the least
preference with 3.73 as mean and standard deviation of 1.21. The curve is also negatively
skewed and from that we can conclude that it has got 4
th
or 5
th
ranking preference among the
respondents.
8.19.4 Highly praised movies
The people has the tendency that they will spend their time and money only on the movies which
are worth watching it. The movies like ?3idots, Munnabhai Series, Golmaal, Dhoom etc. are
watched by the people in the theatres while if the movie is not much good than will not like to
visit a theatre instead they ignore it or watch it on a VCD/DVD.
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(8.51 Praised than visit)
The above histogram shows that it has got overall 2
nd
or 3
rd
preference to watch a movie. As
described earlier that the highly praised movies are the main source to increase the revenues in
the theatre. There for Bollywood and Hollywood should come up with super duper hit movies to
so that the theatres can sustain their business.
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8.19.5 Moderate praised movies
(8.52 Moderate praised than not visit)
The above histogram reveals that respondents has got the very least inclination towards the going
to the theatre if the movie is not much good and has got the 4
th
or 5
th
ranking in overall. The
reason of that could be because the people like to spend their time in a theatre though the movie
is moderate. People may feel it comfortable to visit a theatre instead of roaming around in the
city. The other reason could be because of the influence of the friends or relatives on the
respondents.
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Descriptive Statistics
N Mean
Std.
Deviation Skewness
Statistic Statistic Statistic Statistic Std. Error
First_week 296 2.7939 1.49851 .259 .142
Wait_and_watch 296 1.9358 1.20138 1.222 .142
DVD_rental 296 3.7331 1.21281 -.681 .142
Praised_than_visit 296 2.7770 1.13688 .154 .142
Moderate_praised_not_
visit
296 3.7601 1.11076 -.575 .142
Valid N (listwise) 296
(8.15 Descriptive statistics for new movie watching habit)
The descriptive statistics table concludes all the options result. From the above table we can see
that 1
st
rank is given to the Wait and Watch option by the respondents. And the First week first
show and Praised movie than only visit the theatre has got 2
nd
or 3
rd
ranking. There for the
conclusion is that we have to hope that more and more super duper hit movies will come up in
the industry.
8.20 Preference towards medium of advertisement
The advertisements are an integral part of the marketing program. The cost of the advertisements
is also very high and depends upon the medium of the same. There for selection of a medium
plays very important role in deciding upon an advertisement campaign. This question was asked
to the respondents to know their regular usage of medium to find show timings of any theatre.
The options given to the respondents are as follows.
? Newspapers
? Internet
? By calling to the theatre
? By calling to the Helpline Services
? By visiting theatre
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? By asking to friends or relatives
The respondents were asked to rank all the options on a scale of 1 to 6, where 1 is best preferred
and 6 is the least preferred medium to find out show timings of a theatre. The analysis of all the
options is given in the following histograms.
8.20.1 Newspapers
News papers are having very high reach and frequency among all the other medium of
advertisement. It builds trust among the people and is very effective. Newspapers are
conventional medium of advertisement. In any news paper there is a particular page and column
devoted especially for theatres advertisement and movie reviews. In Times of India page number
11 is devoted for the movie advertisement where advertisement comes by movies or by theatres.
(8.53 Newspaper)
The histogram for news papers reveals that the curve of normal distribution is positively skewed.
And the maximum number of responses that is 200 out of 300 respondents rate news papers as
the 1
st
preferred medium to find show timings of the theatre. The mean of news paper is 1.60
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with standard deviation of 1.07 that is the lowest among all the other options and hence it has got
overall 1
st
ranking in terms of advertisement.
8.20.2 I nternet
The internet is a pool of information nova days and people can find any kind of information by
googling on the internet. To find any kind of information people use internet as user friendly
medium. Increasing the use of internet has lead to internet marketing by using a website of the
company itself or giving a contract of online ticket booking or show timings to the portals like
Bookmyticket.com.
(8.54 Internet)
The histogram of the in internet as a medium of advertising has got a mean of 3.49 with standard
deviation of 1.795. The curve of normal distribution seems to be symmetrically distributed. The
response for this medium has got the mixed response for the ranking. Looking from the overall
response and mean the internet has got the 2
nd
preference of medium to find information about
show timings.
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8.20.3 Calling to the theatre
(8.55 Calling to the theatre)
The histogram of calling to the theatre to get the information about show timings has got the
mean of 3.59 with the standard deviation of 1.422. The normal distribution curve is also
symmetrically distributed. Out of the 300 respondents maximum responses has been found on
the 3, 4 and 5 ranking. Overall the respondents have given 3
rd
or 4
th
ranking as the preference.
8.20.4 Calling to help line services
The usage of help line services are increasing day by day. The consumers call on a number and
ask about the various products and services. The major services of help line are given by Kem
Cho, Just Dial etc. This option was given to the respondents to know the importance of the
services of the help lines given by the respondents and decide about the marketing of the same.
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(8.56 Calling helps line)
The histogram of help line services reveals that the respondents have not given any inclination
towards the usage of the services. The high ranking is given on 5 and 6 ranks. The mean turn out
to be 4.66 that is the highest among all the options. There for we can conclude that it has got 6
th
rank in overall rankings.
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8.20.5 Visit of a theatre to know timings
(8.57 Visit the theatre)
The histogram for visit of a theatre to know show timings reveals that it has got second least
preference that is 5
th
preference to know about show timings. The reason for the same could be
because of waste of time and money resources to know about the information as the other
medium like news papers and internet could be very cheap.
8.20.6 Word of mouth
The decision of the people majority of the time is being influenced by their friends and relatives.
Before deciding to go for a movie in the theatre, people ask their friends and relatives about the
movie as well as theatre. After getting the reviews from them they decide to go for movies. This
option was given to the respondents to know about the importance of the word of mouth.
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(8.58 word of mouth)
The histogram for asking the friends and relatives about the show timings has got the 3
rd
or 4
th
ranking. The respondents gave it a moderate preferred option among all the alternatives. The
reason could be they might not ask about the show timings to their friends and relatives. Instead
they prefer to get it from the other sources.
Descriptive Statistics
N Mean
Std.
Deviation Skewness
Statistic Statistic Statistic Statistic Std. Error
Newspaper 300 1.5967 1.06980 2.230 .141
Internet 300 3.4867 1.79459 .197 .141
Calling_theatre 300 3.5933 1.42175 -.071 .141
Calling_helpline 300 4.6600 1.22586 -.676 .141
Visiting_theatre 300 4.0233 1.40572 -.260 .141
Friends_relatives 300 3.6400 1.54868 .084 .141
Valid N
(listwise)
300
(8.16 Descriptive statistics for preference towards ad medium)
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8.21 Online ticket booking
(8.59 Online ticket booking)
The main purpose of asking this question was to find out whether to provide online booking
facility to the people or not. Here we observe that around 67% of the people have never used this
service and the remaining 33% consist of mixture of people who always use it & who use it
occasionally.
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8.22.1 Demographics of respondents-Age diversity
(8.60 age)
Here the majority of the respondents were of the age group of 21 to 40 years. This augurs well
for the researcher as this group of population constitutes major target group. Since most of the
movies are targeted towards this age group; this age group normally brings most of the business
for the movie theatres.
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8.22.2 Income level diversity
(8.61 Income level diversity)
Here we can clearly see that most of the respondents middle – class income group. This group is
the major target segment for the miniplex theatre. Since middle – class income group consumers
are very price conscious low prices for movies in miniplex has a potential to attract a lot of
consumers from that group.
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8.22.3 Gender diversity
(8.62 Gender diversity)
Out of 300 respondents 194 respondents were male & 106 respondents were female i.e. around
64.67% of the respondents are male and the rest 35.33% are female.
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8.23 Hypothesis testing
8.23.1 Hypothesis 1
Ho: Spending on theatres is not dependent on the income level of the consumers
H
1
: Spending on theatre is dependent on the income level of the consumers
Solution:-
In order to find out whether the expenses made by an individual is dependent upon its monthly
family income or not; we will do the cross – tabulation between expenses of an individual and
their monthly family income and then we will apply Chi – Square test.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Q8_expnse_theater *
Monthly_Family_Incom
e
269 89.7% 31 10.3% 300 100.0%
(8.17 Number of valid cases for hypotheses 1)
Here we observe that only 269 respondents out of 300 have responded to the query of both their
monthly family income & expenses in theatre. So now we do Cross – tabulation of those 269
respondents.
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Q8_expnse_theater * Monthly_Family_Income Crosstabulation
Count
Monthly_Family_Income
Total
less than
15,000
15,000 to
30,000
30,000 to
45,000 above 45,000
Q8_expnse_theater Less than 300 45 47 20 15 127
300-600 21 35 28 26 110
600-900 1 5 4 6 16
above 900 4 4 3 5 16
Total 71 91 55 52 269
(8.18 Crosstabs of expense on theatre*income level)
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 21.120
a
9 .012
Likelihood Ratio 21.873 9 .009
Linear-by-Linear
Association
13.850 1 .000
N of Valid Cases 269
a. 6 cells (37.5%) have expected count less than 5. The
minimum expected count is 3.09.
(8.19 Chi-square table)
Here at 5% level of significance & 9 degrees of freedom the tabulated value of Chi – Square is
16.919.But here we are getting Chi – Square calculated value as 21.120.
Therefore, Calculated > Tabulated
So, Ho rejected
Implies H
1
accepted.
Thus, Spending on theatre is dependent on the income level of the consumers.
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8.24 Hypothesis 2
Ho: There exists positive correlation between family income and frequency
H
1
: There does not exist positive correlation between family income and frequency
Solution:-
In order to find out whether there exists any correlation between frequency and monthly family
income first do cross – tabulation between frequency & monthly family income and then apply
Pearson‘s R correlation test.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Q8_freqcy_Theater *
Monthly_Family_Incom
e
265 88.3% 35 11.7% 300 100.0%
(8.20 Number of valid cases for hypotheses 2)
Here we observe that out of 300 respondents only 265 respondents have responded to both the
query of frequency of visiting theatre & family monthly income. So now we do cross –
tabulation between them.
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Q8_freqcy_Theater * Monthly_Family_Income Crosstabulation
Count
Monthly_Family_Income
Total
less than
15,000
15,000 to
30,000
30,000 to
45,000
above
45,000
Q8_freqcy_Thea
ter
Once in a week 27 25 16 15 83
Twice in a month 17 40 19 19 95
Monthly 16 13 9 5 43
Once/twice in six
month
6 10 5 6 27
Once/twice in a year 2 3 2 3 10
Every new movie
release
2 0 1 4 7
Total 70 91 52 52 265
(8.21 cross table of frequency of theatre*family income)
Symmetric Measures
Value
Asymp. Std.
Error
a
Approx. T
b
Approx.
Sig.
Interval by
Interval
Pearson's R .081 .067 1.314 .190
c
Ordinal by
Ordinal
Spearman
Correlation
.053 .065 .864 .388
c
N of Valid Cases 265
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
(8.22 Correlation table)
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We needed a value greater than 0 in order to prove that there exists a positive correlation
between two variables or not.
Here we observe that Pearson‘s R value is .081
Therefore, Ho is accepted
Thus, there exists a positive correlation between family income & frequency of visiting theatre.
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9.1 Competitive Factors
Our miniplex has got a lot of direct competition and indirect competition. It has got direct
competition from various multiplexes which are located in different parts of the city & the
people of Chandkheda and its surrounding localities are quite used to visiting those places. It has
got indirect competition from other modes of watching movies like VCD/DVD purchases,
DVD/VCD rentals, video libraries like BigFlix, downloading movie via internet, etc. Also
adding to all these factors it has also got competition from other sources like sports as a mode of
entertainment.
9.2 Current Business Focus
Our miniplex in this service – dependent business is to provide the highest quality service, at the
fairest price, to the largest percentage to the target market population as possible. This will foster
a repeat customer base.
9.3 Advantages we will have over competitors
9.3.1 Price
We are already starting off our business venture with affordable pricing strategy. This strategy is
specifically kept in order to attract masses. If a competitor enters our locality we will still have
price advantage because of the cost of setting up a miniplex is far less as compared to multiplex.
In turbulent times also we will incur far less loss as compared to multiplex owners. It will
provide 100% multiplex feel at 50% lower costs; this will help us to achieve economies to scale.
Since we will be able to attain our breakeven far earlier than a multiplex would; we can then
compete more fiercely with other players of the industry. Our whole infrastructure planning &
pricing is planned in such a way that it will provide best possible service for the price charged.
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9.3.2 Performance
Keeping in line with our business objective to provide the highest quality service possible at an
affordable price, we have decided to purchase the most technologically advanced equipments
available. The technologically advanced equipment will provide us with qualitative edge over
other players in the industry.
All this factors will help us in achieving good business till the time we face competition from
other players as well during competitive wars with other players.
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10.1 Background
The principal owners will be the full – time managers. Both of them have keen interest towards
entertainment industry and hence taken an initiative to open such miniplex theatre. Moreover
they are very practical and knowledgeable; having sound knowledge of their respective domains
and post graduation in Marketing to add to it.
10.2 Responsibilities
One manager will focus on daily operations, including employee hiring, building maintenance,
property maintenance, and equipment maintenance, employee pay and benefits. The other
manager will focus on marketing, advertising, and community relations, taxes, payables,
receivables. Other employees of our group will provide support to the owners with regard to their
specific area of expertise.
10.3 Compensation For Owners
Each owner will receive a salary of Rs. 15,000 per month.
10.4 Proposed Employees Hiring
We plan to hire total 8 employees. Their summary is as follows:-
Particulars No. of People
Security Personnel 2
Ticket Desk
Personnel
2
Movie Projector
Staff
1
Canteen Staff 1
Sweeper 1
Total 8
(10.1 Proposed employee hiring)
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10.5 Skilled Versus Unskilled
No special skills are required for our operational staff. Ticket desk personnel must possess basic
mathematical skills, be able to operate a cash register, and diplomatically interact with the
general public.
10.6 Compensation For Employees
Our operational employees will get salary as per following structure:-
Particulars No. of People
Per Month Salary
(in Rs.)
Yearly salary (In
Rs.)
Security Personnel 2 5000 60,000
Ticket Desk
Personnel
2 7000 84,000
Movie Projector
Staff
1 3000 36,000
Canteen Staff 1 3000 36,000
Sweeper 1 2000 24,000
Total 8 20,000 2,40,000
(10.2 Compensation for employees)
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11.1 Strengths
? High ticket cost of the multiplexes is discouraging the movie viewers.
? The core strengths of our Miniplex project are :-
o Provides 100% Multiplex feel with 50% ticket cost
o Operational cost per seat is 60% lower.
? Key technical strengths of our Miniplex are :-
o E – cinema technology would be delivered via satellite
o Full high definition quality projection
o Reduction in distribution & logistics costs
o Control in piracy
? Payback period can be achieved much earlier as compared to multiplex projects
? Comparatively less loss during off season cricket season or during the period when a
good movie is not around.
11.2 Weakness
? Less capacity as compared to multiplex
? Less price of the ticket may led to the misconception of lower quality services
? People of higher income group may not prefer it as they may think that this miniplex is
meant only for lower income group people.
? The location of the miniplex is far away from the city
? It may not attract the audience from other part of the city because of the distance
? Chandkheda does not have any major shopping destinations in order to attract people
from other areas of the city.
11.3 Opportunities
? There is not a single theatre right now in Chandkheda and its surrounding localities like
Sabarmati, Adalaj, Zundal, etc.
? Chandkheda right now is considered as one of the hottest destinations from realty point of
view. As a result of which there is a lot of township projects who are just about to get
completed as well as a lot of other township projects which have started. These projects
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have a potential of accommodating lakhs of people. As a result of which we may find
huge rise in population of chandkheda. This would increase the target market segment for
our miniplex.
? The concept of miniplex is almost ideal for new ideas like :-
o Telecast of live matches
o New product launch
o Seminars
o Various films festivals
o Interactive educational platforms, etc.
11.4 Threats
? Big business houses with huge financial back up can start multiplex in the same or nearby
area of chandkheda.
? These business houses can also start a miniplex which resembles completely to our
concept.
? Since chandkheda is one of the hottest destination for properties there is potential of more
than one major players of movie exhibition industry opening up their business in the span
of a very few kilometres from our miniplex.
? Movie exhibition business suffers a lot during cricket season where cricket frenzy people
do not turn up at all.
? Uncertainity over entertainment tax.
? Piracy is a huge danger to the whole industry. Now adding to the agony people also these
days also have an option of downloading whole movie via internet free of cost.
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12.1 Financial Features
Required Capital
The major investment initially is of the interior, furniture, chairs, sound system and of projectors.
The chairs will cost around Rs. 4000-6000 each and total of 160 chairs are needed. The sound
system we have decided to install is the best quality sound system for the theatres. We have
decided to install JBL Company‘s Dolby Digital and Surround Sound system which will cost us
around 30L to 40L Rs.
Further the capital will be utilized for the interior decoration that includes the lightning in the
theatres and the sound proof wall material. We need to use grass wood, aluminium net, black
curtain to make the wall sound proof. The projector will cost us around 400000 to 500000 Rs
each. We also need to purchase two lenses for the projector and the best quality lens costs 40000
Rs each. The high configuration computers will require for showing a movie through satellite.
Requirement of an investment of Rs 8000000, we both would be investing Rs. 4000000 each.
We are not going to venture capitalist or issuing any loan at this moment.
12.2 Financial Arrangements
? Expected annual return for investor
The total investment of around Rs 8000000/- is require for this project and the investor can
expect an annual return of ____% which will achieve from the second year of the operation of
the business. This is calculated by dividing net profit by total investment. The net profit does not
include income tax as the industry has to pay only entertainment tax of net ticket collection.
? Number of investors
For this project there are two investors, each will invest 40, 00,000 Rs. We are not going to use
any loan or issuing any shares.
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? Financial projections
We assumed the useful life of the furniture and electric equipment will be of 10 years and the
straight line method of depreciation will be used. There for the depreciation will be 10%.
? Financial statement highlights
The financial figures presented in our pro forma statements are extremely encouraging in that it
is prepared by monthly, yearly and by various occupancy levels. We have used various
occupancy levels because market dynamics can vary.
It is important to note that in our presentation of the financial statements, we endeavoured to be
conservative in our revenue calculations and liberal in our expense calculations. This approach
was intentionally adopted to ensure that we maintained cautious, if not slightly pessimist
approach to the evaluation of our new venture______________ liability.
12.3 Financial data
? Start-Up Cost
We have calculated the initial start up costs to be Rs. 80, 86,000. This includes majority of the
fixed assets costs.
START UP EXPENSES
Legal 4000
Stationary 2000
Sign boards and advertisement 100000
Furniture & Interiors
Chairs 800000
Others 2000000
Sound system 3000000
Projectors 1000000
(Air Conditioners) 1000000
Computers 100000
Lenses 80000
TOTAL START UP EXPENSES 8086000
(12.1 Start-up expenses)
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? Sales and cost
The sales and cost of the show is calculated for daily, monthly, and yearly. The break up of 50%,
70% and 100% occupancy ratio is also calculated to understand the return pattern of various
market responses.
(12.2 Sales and cost projections)
100%
Occupancy
70%
Occupancy
50%
Occupancy
REVENUES(Monthly)
Seats( 2
screens) Rate Amount
Morning(7.30am-11.30am) 160 70 11200 7840 5600
Noon(11.45am-2.45pm) 160 70 11200 7840 5600
Matinee(3pm-6pm) 160 70 11200 7840 5600
Evening(6.15pm-9.15pm) 160 70 11200 7840 5600
Night(9.30pm-12.30pm) 160 70 11200 7840 5600
Total( Rs.Per Day) 56000 39200 28000
Days 30 30 30
Total( Rs. Per Month) 1680000 1176000 840000
DIRECT COST
Entertainment tax (20%) 336000 235200 168000
DISTRIBUTOR SHARE (50%) 672000 470400 336000
GROSS REVENUE 672000 470400 336000
Advertisement Revenue 150000 150000 150000
Other Revenues 20000 20000 20000
Food Court 240000 168000 120000
TOTAL
REVENUES(MONTHLY) 1082000 808400 626000
Month 12 12 12
REVENUES(YEARLY) 12984000 9700800 7512000
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? Profit & Loss Account
PROFIT AND LOSS ACCOUNT
PERTICULARS AMOUNT(50% occupancy) AMOUNT(70% occupancy)
Revenue(Ticket Collection) 10080000 14112000
Less: E Tax(20% of ticket
collection) 2016000 2822400
Gross Revenue 8064000 11289600
Advertisement 1800000 1800000
Other advertisement income 240000 240000
Food Court 1440000 2016000
Gross Total Revenue 11544000 15345600
Less: Direct Cost(50%) 4032000 5644800
Total Revenue 7512000 9700800
Expenses
Salary 600000 600000
Movie Screening 630000 630000
Electricity 1200000 1200000
Telephone 60000 60000
Administration Expenses 120000 120000
Rent 1950000 1950000
Advertisement Cost 400000 400000
Furniture Depriciation(10%) 280000 280000
Electric Equipment
Depriciation(10%) 518000 518000
Total Expenses 5758000 5758000
Net Revenue 1754000 3942800
Total investment 8086000 8086000
ROI(%) 21.69181301 48.76082117
Pay Back Period 4.610034208 2.050826824
(12.3 Profit and loss account)
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13.1 Cost of Ticket
After careful analysis of the region and market of the theatre‘s industry, we have decided our
prising strategy that we believe is the best competitive strategy that provides the feel of multiplex
at very economy prices. The prises are flat for all the shows and for all the seating arrangement.
In accordance with our prising strategy, the price of the ticket is Rs.70 for all the shows
irrespective of the timings of the shows. The reason of using this pricing structure is based on our
analysis of the research.
13.2 Profit Margins
Calculating the profit margin based upon the projected year-end financial figures is relatively
clear cut and yields the gross profit margin of 74.52% and net profit margin of 17.40% based
upon 50% occupancy ratio pessimistically. The profit margin is being calculated as gross/net
profit divided by sales.
13.3 Competitor’s Prices
Based on our analysis of the competitors we have found out one competitor that is City Gold
multiplex existing nearby Motera Stadium and around 3 to 4 Km away from our location. The
prices of the City Gold are ranges between Rs.100 – 150. Our concept of Miniplex is to provide
feel of Mutiplex with economy prices therefore we are sure about our success.
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14.1 Response
Since our miniplex is based on completely new & first of its kind for the audience of
Chandkheda and its surrounding localities, we need to take care that we do not flop. Here there
are full chances that the people may not actually respond in the way they responded in the
survey. Audience here may react in a completely different way when miniplex is actually
opened.
14.2 Sales Projections Not Attained
There are chances where we are not able to attain our sales projections. This poses a great threat
as the future strategy would have to be changed and things could go worse. The bad response
from the audience can lead to great losses.
14.3 Competitive Price Cutting By Giant’s Entry
Since we do not have any direct competition in Chandkheda and its surrounding localities, we
are semi – insulated from price cutting schemes. Also adding to it we are already entering in the
industry with an affordable pricing strategy. However, we realize we do not operate in vacuum,
and there are full chances of Big Giants entering the segment if they see an opportunity. In light
of this we have developed our whole structure; right from pricing, infrastructure, interiors,
comfort, etc. in such a way that the new entrants will find stiff competition from us in order to
penetrate in the market. We have also highlighted the best qualities of our theatre and built our
own pricing scale, which we believe fairly balances quality and price. Even if a competitor enters
in our locality than since we are the early movers, we are bound to get the advantage of
economies of scale earlier than other late entrants.
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14.4 Cyclical Fluctuations
Movie exhibition industry is not immune to cyclical fluctuations. Peak periods are seen when
good movies of big superstars are lined up release one after another. Off-peak period is observed
especially when no big movies are releasing. Off – peak periods sometimes get worse when they
are coupled with sports season like IPL or during the period when most of students are having
their examinations. A lot of time during this period the theatre has to cancel the shows due to
lack of footfalls.
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15.1 Future Plan
If our miniplex is successful then following actions can be taken:
? We are already having 6500 sq. Ft of space at our location, which can be used to extend
one more screen at the same place.
? We can start our branches in different parts of the cities.
? We can start our ventures in other cities, especially in small cities.
? We can also start giving our franchisee
? We can also provide for various options like telecast of live matches, organizing various
small film festivals on special occasions.
? We can do collaboration with various universities in order to provide various interactive
education platform
? We can also devote one screen especially for corporate for their business meetings and
gathering or training of the employees
15.2 Exit Strategy
In case of failure of our project e will have following options:
? Since we are already having rented space it can be returned back to the owner.
? In case of our other infrastructure are concerned (e.g. chairs, projectors, sound system,
Air conditioners, etc.); we would like to sell it off and recover as much cost as possible.
? Whole infrastructure can be handed over to any other player aspiring to enter this
industry or any major player who already exists in this industry.
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? It is feasible to start a Miniplex in Chandkheda area because only one player exists in that
area and the investment required is also very low as compared to multiplex.
? The awareness of Mimiplex concept is very less as only 38% respondents are aware
about the Miniplex.
? The initial capital requirement is of Rs. 80,86,000 and the yearly net profit pessimistically
can be Rs. 25,52,000. The pay back period turns out to be around 4.6 years.
? As the respondents are not aware about the Miniplex concept, the response about liking
of it is turned out to mixed. Out of 300 respondents, 50% declined to compromise with
the screen size while 60% of the respondent like to compromise with the number of
audience.
? 28% respondents visit theatre once in a week and 33% respondents visit theatre
fortnightly.
? 43% of the respondents spend less than 300 rs and 37% of the respondents spend between
300 to 600 rs on then theatres.
? The most visited theatre by the respondents is, Wide Angle, followed by Fun Republic
and City Gold respectively. The reason for visiting those theatres is its high sound and
video quality, comfortable seats and affordable cost.
? Apart from movies 35% respondents would like to visit theatre for various film festivals
and 28% would like to watch live cricket matches.
? News papers have got the first preference that respondents will use to know about the
show timings of the theatres followed by internet search.
? The amount spent by the respondent is on theatre is not dependent on the monthly family
income of the consumer but the frequency is dependent on their monthly family income.
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The potential of Chandkheda for the movie exhibition business can be safely termed as
unexploited. There is only one theatre near Chandkheda, which is about 3 – 4 kms. away and that
too with premium pricing strategy; as a result of which it is not working very well. Audience of
Chandkheda and its surrounding localities are actually in need of a theatre which provides them
with quality movie viewing experience and that too at an affordable cost. The population of
Chandkheda and its surrounding localities is increasing day by day with a lot of residential
projects coming up as well as a number of projects which are about to get completed. Since these
projects have the potential to accommodate lacs of people, in the near future we will see a huge
rise in the target segment for our miniplex.
The concept of miniplex is very new and a lot of people are not aware of this concept which
showed up in our findings. When it comes to watching movie in a theatre there are some basic
elements like screen size, sound quality, etc. with which audience are not ready to compromise.
But the strong point of a miniplex is that audience still gets the feel of watching a movie in a big
screen multiplex. The only difference between multiplex and miniplex is the screen size and the
capacity. Since not a lot of people are aware of this concept there lies some serious potential to
build the preference of the consumers towards miniplex. Miniplex is an ideal solution for the
cost-sensitive audience. In our research we observed that cost of the ticket plays an important
role in deciding the frequency of an individual with respect to theatre. So, there are high chances
that the frequency of an individual for the theatre would increase with the introduction of
miniplex.
Financial projections showed that payback period from the miniplex would be around 4.6 years
(considering depreciation). These 4.6 years is far less as compared to the normal multiplex
theatre which invests crores of rupees and waits for a long time to achieve break – even.
Thus, we can safely conclude that it is feasible to open a miniplex in the area of Chandkheda.
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Scribd-free i-paper. Movie exhibition industry report (online).Retrived on March 10, 2010, from
http://www.scribd.com/movie-exhibition.html
Scribd-free i-paper. Sound Music Theatre (online).Retrived on March 10, 2010, from
http://www.scribd.com/search?q=theatre+industry+in+india&cat=redesign&sa.x=0&sa.y=0
Scribd-free i-paper. Multiplex Theatres Report 2009 (online).Retrived on March 10, 2010, from
http://www.scribd.com/search?q=multiplex+theatres+in+India&cat=redesign&sa.x=0&sa.y=0
K Sera Sera website. About Company .Retrieved on March 10, 2010 from
http://www.miniplex.co.in/about.html
K Sera Sera website. E-brochure of Company .Retrieved on March 10, 2010 from
http://www.miniplex.co.in/ebrochure.html
Planet Bollywood Web site. Article on Miniplex in Ahmedabad. Retrieved on March 10, 2010
from http://www.planetbollywood.com/displayArticle.php?id=n012610062607
Times of India website, Launch of India’s first Miniplex in Ahmedabad. Retrieved on March 10,
2010 from http://www.timesofindia.indiatimes.com/miniplex.asp
Balaji Agora Mall. Brochure for 2009. Ahmedabad:
Rechard l. Levin & Devid S. Rubin. Statistics for Management 7
th
edition. New Delhi: Prentice-
Hall of India Pvt.Ltd.
Naresh K. Malhotra. Marketing Research 4
th
edition. (2005) New Delhi: Pearson Education.
Luck and Rubin. Marketing Research 3
rd
edition. (2006) New Delhi: Pearson Education.
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Questionnaire
Dear Sir / Madam,
We are students of M.B.A. and conducting a survey for academic purpose which is part of our
curriculum. Your views about the questions asked are welcomed and of great importance to
Entertainment industry. I here by assure that details provided by you will be very much
confidential.
1. Which type of movies do you like? (Select multiple options if required)
? Action
? Love Stories
? Thriller
? Horror
? Documentary
? Reality based
? None of the above
2. Which cable TV connection do you have? (Select any one)
? Local cable
? DTH services ( i.e. Tata sky, Dish TV)
3. If DTH, than do you use the ?Movie on Demand? option in your DTH connection by
paying some amount for a movie? (Select any one)
? Yes
? No
? Sometimes
4. Do you have a computer?
? Yes
? No
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5. Do you have an internet connection?
? Yes
? No
6. If yes, then do you like to download movies from the internet?
? Yes, I download regularly
? Yes, but only if the movie is average
? No, I don‘t download at all
? No, it is time consuming
? No, I like to watch it in a theatre
7. Are you a member of any video library like Bigflix, Moserbear?
? Yes, If yes, then mention the name______________
? No
8. Please tick mark the appropriate mode(s) of watching movies which you use & also mention the
approximate monthly expense on each of them. Also mention the frequency of each of the
selected options as per the numbers given below. (Select multiple options if required)
(# 1= Once in a week, 2=Twice in a month, 3=Monthly, 4=Once or Twice in six month,
5=Once or Twice in a year, 6=I go for every new movie release)
Mode of Watching Movies Yes/No
Monthly
Expense Frequency#
Theatre
Purchasing VCDs/DVDs
VCD/DVD Rentals
Ordering movies through DTH(i.e. Tata Sky, Dish
TV) services*
Home on TV channels
(* In case you are using DTH service at home)
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9. Generally, with whom would you like to go for a movie to a theatre? (Select multiple options if
required)
? Family
? Friends
? Relatives
? Spouse
? Alone
10. Please select any three theatres out of the following which you have visited the most and also
rank those from 1 to 3, where 1 is the highest & 3 is the lowest visited.
Name of Theatres Rank
? K Sera Sera
? R World
? CineMax
? Adlabs
? Wide Angle
? Red Carpet
? Devi
? City Pulse
? City Gold
? Fun Republic
? Others (please specify)________________________
11. What is the major reason for going to the above selected theatre? Rank all the alternatives below
in the scale of 1 to 8, where 1 is the most important & 8 is the least important.
? High sound and video quality ______
? Comfortable sitting arrangement ______
? Affordable Cost ______
? Games ______
? Food Court ______
? Shopping facility is also available ______
? Because its near to my residence ______
? I like the audience coming to that theatre ______
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12. From the following options, rate the factors which as per you, are most important to consider
while visiting a theatre
13. Which show time you generally prefer to go for movies? Tick mark option(s) and also mark the
reason for going to that show. (Select multiple options if required)
Option Low cost Convenient Time
? Morning( Between 8 am to 12 pm)
? Noon ( Between 12 pm to 3 pm)
? Matinee ( Between 3 pm to 6 pm)
? Evening ( Between 6 pm to 9 pm)
? Night ( Between 9 pm till midnight)
14. Do you know about ?Miniplex? theatre?
? Yes
? No
Factors
Extremely
Important Important Neutral Unimportant
Extremely
unimportant
Sound Quality
Screen Size
Comfortable Chairs
Lighting in the theatre
Personalized services (Snacks, Cold drinks
at your seat)
Shopping facility
Food court
Games Zone
Cost of ticket
Distance from home
Advance Ticket Booking
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15. How would you describe a Miniplex?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
________________________________
16. Out of the following, for which purpose would you like to visit a theatre, apart from movies?
(Select multiple options if required)
? Live matches
? New Product launch shows absolutely free and that offers some free gift
? Seminars
? Various film festivals or events (e.g. special movies on children‘s day, valentine‘s day, etc.)
17. Would you like to go for a movie if it is at morning time of 7 am & also offered at a lower price?
(between Rs. 40 to 50)
? Yes
? No
18. Would you like to compromise with the screen size of the theatre for the cost of the ticket? (e.g.
the screen size is smaller and price range is between Rs. 50-80)
? Yes
? No
? Cannot say
19. Would you like to compromise with the size of the audience for the cost of the ticket? (e.g. There
are only 70 seats instead of 150, which you normally see in a theatre)
? Yes
? No
? Cannot say
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20. A new movie has been launched today, what do you do out of the following? (Please rank all the
alternatives in the scale of 1 to 5, where 1 is the best attractive and 5 is the worst)
? See the movie in the first week ______
? Wait for reviews and then go to the theatre ______
? Visit the video library and get a DVD on rent ______
? If movie is very highly praised, then only visit the theatre ______
? If movie is moderately praised, then do not go to the theatre ______
21. From where do you find the information regarding the show timings? (Please rank all the
alternatives in the scale of 1 to 6, where 1 is the most suitable and 6 is the worst)
? Newspapers ______
? Internet ______
? By calling to the theatre ______
? By calling to the Helpline Services ______
? By visiting theatre ______
? By asking to friends or relatives ______
22. Do you use online ticket booking?
? Yes
? No
? Sometimes
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Personal Information:-
Gender: Male Female
Age (Years): Below 20 21 to 40
41 to 60 61 or above
Occupation: Businessman Having job Student House wife Retired
Self-employed (i.e. doctor, lawyer etc.)
Monthly Family Income: Less than 15000 15000 to 30000
30000 to 45000 More than 45000
doc_760633937.docx
The entertainment industry is booming since last many years and particularly the theatres we can find full of on Friday(s). But the rest of the days the multiplexes do not even able to meet their break even
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? Problem Statement
The entertainment industry is booming since last many years and particularly the theatres
we can find full of on Friday(s). But the rest of the days the multiplexes do not even able
to meet their break even. The Miniplex concept that‘s why been introduced first time in
India. The awareness of the same is presently required to be tested amongst the
consumers. The liking of the Miniplex theatres is also needs to be known to be successful
in the market.
? Research Objectives
Primary Objectives
? Identifying the feasibility of setting up a miniplex at Chandkheda(Ahmedabad)
? Identifying the awareness of the ?Miniplex? concept
? Preparing financial map of setting up such venture.
Secondary Objectives
? Identifying the liking of the consumers towards the Miniplex theatres
? Identifying the frequency of the consumers towards visit of the theatres
? Identifying the amount spend by the consumers towards the theatres
? Identification of the most visited theatre and the reasons for the same in the city of
Ahmedabad.
? Identification of the most important parameters for visiting the theatre
? Identifying the liking of other purposes of the theatre apart from movies
? Nature of Research
Research is descriptive and conclusive in nature. Research will be done mainly to identify
the consumer preference towards the Miniplex theatres against the Multiplex.
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? Research Instrument
In this project research instrument which will be used vitally is structured questionnaire
? Analysis
Statistics tests like chi-square, cross tabs, factor analysis, correlation, and KS test will be used
to analyze the data. Computer software Statistical Package for Social Science (Version 17.0)
and Microsoft excel will be used to analyse the data.
? Data Sources
Primary Sources
? Sample Universe: - Residents of the area of Chandkheda.
? Sampling Size: - For the purpose of research the sample size would be 300 people.
? Sampling Method: - Stratified Convenience Sampling Method. Where the strata are
Students and Working class people
Secondary Sources
? Past records & financial statements of K Sera Sera.
? Beneficiaries
? The research will benefit most to the researchers to understand the entertainment market
and consumers.
? Apart from that the research will be useful for real estate agents, new project developers
etc.
? Qualifications Of the Reseacher
Jaydeep Patadiya – B.Com, MBA (Mktg- Pursuing)
Rahul Goyal – B.Sc (Mathematics), MBA (Mktg- Pursuing)
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2.1 Hindi Film Industry
Hindi Film Industry is the major part of the magnanimous Indian film industry. It is used to refer
the Hindi film industry in India. The term is often misunderstood as the whole of Indian cinema
but it is only a part of the Indian film industry. Hindi Film Industry is the largest film producer in
India and one of the largest in the world. Hindi Film Industry is one the most recognized film
industry in the world with reach in diverse regions like U.S., Britain, Nepal, Japan, China,
Russia, Canada and many other parts of the world.
?Raja Harishchandra(1913)‘ was the first silent film made in India. In 1920‘s only around 25 –
30 films were made by Indian filmmakers, while this number jumped to around 200 films in
1930‘s. Today in 21st century around 100 films are being made yearly by the Indian filmmakers.
This shows that Hindi Film Industry has come a long way since 1930‘s. In 1931 came a huge
transition when first movie with sound was released named ?Alam Ara‘. Then in 1950‘s
filmmakers adopted the technology by switching from black and white to colour. This made
films more beautiful and colourful in respect of clothing and location.
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2.2 Hindi Film I ndustry Over The Decades
Hindi Film Industry has seen enormous evolution over the years. Many great artists have
contributed to the success of the Hindi Film Industry decades by decades. Every decade saw
great and unforgettable films. The major evolution in the Hindi Film Industry started in 1940‘s
and 1950‘s when sound and colours became essential parts of films in India.
2.2.1 1940’s
Hindi Film Industry saw many great artists like Prithviraj Kapoor and Dilip Kumar during this
period of pre-independent and independent India. The battles against the Britishers during this
era made lots of filmmakers to make patriotic films. The expression against the British Empire
was very much visible in Dilip Kumar’s ?Shaheed(1944)‘, ?Andaaz‘, ?Jwar Bhata‘, ?Sunhere
Din‘ and Jugnu are some of the other significant films released during this period.
2.2.2 1950’s
This era was dominated by great and unforgettable artists like Raj Kapoor, Guru Dutt, Dev
Anand, Nargis, Meena Kumari and Ashok Kumar. In the later part of 1950‘s Sunil Dutt and
Kishore Kumar dominated the Hindi Film Industry. Rural India was portrayed in this era. The
farmers‘ struggle and their uprising against the landlords for social equality was a dominant
factor of this era. During this times humour also started making its way in the Hindi Film
Industry as Kishore Kumar’s ?Chalti Ka Naam Gadi‘ did wonders as the Indian population
wanted to laugh after painful 200 years of freedom struggle. In 1957, ?Mother India‘ became the
foremost Indian film to reach the Oscars in the Best Foreign Film category ?Hulchul‘, ?Aan‘,
‘Jagte Raho‘, ‘Naya Daur‘, ?Kaagaz Ke Phool‘ and ?Baijuare some masterpiece of this era.
2.2.3 1960’s
During this decade, Rural India was left in the wake of India being looked upon as a rising
nation. Improvement of law and order in the country was the need of the hour thus films like
?Kala Bazaar‘ and ?Kanoon‘ dealt with this subject. Later in this decade, flashing vintage cars
and multi-coloured attires became integral parts of Hindi films as India was slowly but steadily
entering the world of fashion. ?Mughal-e-Azam‘, ?Sahib Biwi Aur Ghulam‘, ?Guide‘, ?Jewel
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Thief‘, ?Ram Aur Shyam‘, ?Aradhna‘ and ?Barsaat Ki Raat‘ are some of the most momentous
films of this period.
2.2.4 1970’s
This decade was largely dominated by artists like Rajesh Khanna, Amitabh Bachchan, Hema
Malini, Jaya Bhaduri, Dharmendra and Manoj Kumar. Films like ?Reshma aur Shera‘, ?Seeta
Aur Geeta‘, ?Abhiman‘, ?Bawarchi‘, ?Aandhi‘, ?Golmaal‘, ?Anand‘, ?Mera Naam Joker, ?Hare
Krishna Hare Raam‘ and Purab Aur Paschim‘ are some of the most significant films of this era.
It was in this era that Amitabh Bachchan got the title of ?Angry Young Man of Indian Cinema‘
with some of his great films like ?Zanjeer‘, ?Sholay‘, ?Amar Akbar Anthony‘, ?Don‘ and ?Kaala
Pathar‘. This era also saw the western influence on the Indian society with films like ?Hare Rama
Hare Krishna‘ and ?Purab Aur Paschim‘.
2.2.5 1980’s
During this decade the concept of ?Angry Young Man‘ continued as lots of films were made
showing one man fighting against the injustices of the society. This era also saw some other
great artists like Anil Kapoor, Rishi Kapoor, Sanjay Dutt, Aamir Khan, Kamala Hassan,
Sridevi,Madhuri Dixit, Vinod Khanna, Meenakshi Shishadri and in the later parts of this decade
Salman
Khan made an entry with a huge hit ?Maine Pyar Kiya‘. This decade had mixes of comedy,
musical and family oriented films. ?Namak Halal‘, ?Chasme Baddoor‘, ?Angoor‘, ?Namkeen‘,
?Jaane Bhi Do Yaaro‘, ?Naukar Biwi Ka‘, ?Chaalbaaz‘, ?The Burning Train‘, ?Disco Dancer‘,
?Mr India‘ and ?Jaane Bhi Do Yaaro‘ are some memorable films of this time.
2.2.6 1990’s
Romance and family oriented films were the flavour of this decade with bits and pieces of
comedy films, war films and films based on life in underworld contributing to the success of
many artists of this decade. Shahrukh Khan, Salman Khan, Kajol, Rani Mukherjee, Priety
Zinta,Akshay Kumar dominated the Hindi Film Industry in this decade. Shahrukh Khan became
the next super star with his some of the unforgettable romantic films like ?Dilawalwe Dulhaniya
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Le Jayenge‘, ?Dil To Pagal Hai‘, ?Kuch Kuch Hota Hai‘, ?Mohabattein‘ and ?Pardes‘ in this
decade.
?Darr‘, ?Hum Aapke Hai Kaun‘, ?Dil‘, ?Beta‘, ‘Deewana‘, ‘Khuda Gawah‘, ‘Karan Arjun‘,
?Rangeela‘, ?Hum Saath Saath Hain‘, ?Hum Dil De Chuke Sanam‘ ?Taal‘, ?Border‘, ?Dil Se‘ and
?Satya‘ are some of the prominent films of this period.
2.2.7 2000’s
Dominance of Hrithik Roshan, Abhishek Bachchan, Aishwariya Rai, Ranbir Kapoor and Sonam
Kapoor continues as this decade is coming to an end. This decade saw lots of films being made
on issues of terrorism. Films like Monsoon Wedding and Bollywood Hollywood appealed the
NRI audience who are increasing in numbers day by day. Thus a new concept of ?Hinglish‘
cinema became popular among the young generation. Films like ?Lagaan‘, ?Munaabhai MBBS‘,
?Lage Raho Munnabhai‘, ‘Gadar Ek Prem Katha‘, ?Lagaan‘, ?Dil Chahta Hai‘, ?Kabhi Khushi
Kabhie Gham‘, ? Koi Mil Gaya‘, ?Kal Ho Naa Ho‘, ? Devdas‘, ?Saathiya‘, ?Veer Zaara‘, ?Main
Hoon Na‘, ?Krrish‘, ?Om Shanti Om‘, ?Taare Zameen Par‘ ?Chak De India‘, ?Ghajini‘ are some
of the memorable movies of this decade. This is the decade when attitude of the filmmakers and
audience opened and films were made on issues which no one would have considered ten years
ago. This decade would be remembered for A.R. Rehman who received an Oscar in the early
2009.
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2.3 Film Exhibition Business In India
India's craze for films has not been fully exploited by the "Film Exhibition" industry due to the
lack of screen density in the country coupled with the poor quality of screens. "Multiplex
Cinemas" offer an alternative to tap this potential by providing a quality experience to the viewer
as well as economies to the multiplex operator.
"Films" has been one of the integral components of the Indian entertainment industry
contributing nearly 27% of the total revenues of the entertainment industry. Besides, films also
contribute to other components of the entertainment industry like music, television and live
entertainment. The Indian film industry is one of the most complex and fragmented national film
industries in the world comprising of a number of regional film industries like Hindi, Tamil,
Telugu, Kannada and others. The Hindi film industry is the most popular among them. Though
India produces the largest number of films in the world (Approximately 1000 per year), it
accounts for only 1% of the global film industry revenues. In spite of being over 90 years old, the
Indian film industry was accorded the status of industry only in 2000. Over the years, the Indian
film industry has been highly unorganized as film financing was dependant on private and
individual financing at extremely high interest rates. Only recently, the industry has got access to
organized finance.
With vertical integration taking place between producers, distributors, exhibitors, broadcasters
and Music Company‘s corporatization is now taking shape in the Indian film industry. We
believe, that corporatization, will bring about transparency, accountability and consolidation
which will help to improve the overall profitability of the Indian film industry as well as reduce
piracy and leakages which presently account for 14% of the Indian film industry's revenues.
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2.4 Tremendous Scope
Film exhibition forms the most important component of the Indian film industry. According to
the - KPMG report domestic theatrical revenues contributes 57% of the total Rs59bn film
industry revenues and are expected to grow at 17%. Overall, the Indian film industry is expected
to grow at 16% CAGR it is expected to reach Rs143bn in 2010. The main pockets for film
exhibition in India are Delhi, Mumbai and South India. Due to various regional language film
industries in the South, it has become an important film exhibition pocket. Hyderabad and
Bangalore are 2 southern cities where occupancies are exceptionally high at around 70%-80%.
(2.1 Growth of entertainment industry)
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2.5 Multiplexes Feeding India’s Movie Mania
Indian and Hollywood films, although a ticket now costs about $3 (Rs121). Moreover, many are
located in big malls, adding the attraction of shopping to a day out at the movies. Earlier, it was
like one film in one hall, you don‘t get tickets you go home said Dipti Varma, a young executive
with a business forum. Now you have a choice of films under one roof.
Such has been the runaway success of this cinema viewing experience that today, even though
multiplexes make up just 2% of India‘s nearly 11500 screens, they account for more than half the
box office revenue of Hollywood releases in the country and more than a third for Bollywood.
That success, however, has not been limited to the glitzy cinema halls.
Industry analysts say that multiplexes, with their smaller halls, have also redefined filmmaking
by creating a niche for experimental cinema among urban, educated audiences.
Multiplexes, where ticket prices are five times that at a single-screen cinema, ensure a faster
return on investment for producers and, because of quick turnarounds, have become instrumental
in raising the output of films, he said. ?The idea now is to recover investments within the first
weekend,? said Bose, who has authored several books on Bollywood.
Independent film-makers like Madhur Bhandarkar agree, saying multiplexes have proved to be a
blessing as many recent hits would never have been made if it were not for them. ?Exhibitors
would never run my films in a 1,000-seater hall,? said Bhandarkar, a leading director known for
his unconventional films. For businessmen who kept their faith in movie halls and invested in
multiplexes, it has been a gamble that paid off. They have thrived on the back of tax incentives
over the last five years, and are now looking to expand, according to industry group Ficci.
Aiming to widen their base in search of greater profits, they are now moving to smaller cities and
towns, where operating costs are lower, allowing for greater flexibility in ticket pricing.
?Multiplexes will first reap the more lucrative markets— reap the low hanging fruit first—and
then move on to the smaller markets,? said Deepak Asher, director of multiplex operator Inox.
?It is just a question of time before multiplexes hit the B and C towns big time.? While PVR Ltd,
the pioneer, has about 70 screens, Inox has about 50. Adlabs Films Ltd, which branched out from
film processing to multiplexes, plans to have about 80 screens by 2007-08.
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The multiplex industry is expected to grow more than 44% to $220 million by next year,
according to a recent report by brokerage B&K Securities. The overall Indian film industry, now
worth about $2 billion, is expected to grow to $4.3 billion by 2011, Ficci says.
While more and more single-screen cinemas are converting to multiplexes in cities, they still
remain the entertainment mainstay for millions in small towns and villages. They are also
popular with the urban poor because of their cheaper tickets. Analysts say high ticket prices have
also meant that average occupancy levels in multiplexes have hovered at around 40%. They say
that as multiplexes mushroom and begin cutting into each others‘ territories, occupancy levels
could plummet to 30%. ?This could mean the multiplex boom is a bubble that will burst unless
ticket prices are brought down,?
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2.6 Key Players I n Multiplex
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2.7 Demand Side - Strong pull
Demand side environment has never been better for the whole media & entertainment industry in
general and multiplex sector in particular. A lot of demographic changes coupled with sector
fundamentals are expected to fuel demand side of the story for the sector.
2.7.1 Prosperity To Drive Discretionary Spend
India is a highly favorable country for
consumer industries with all the key
indicators pointing towards higher
consumer spends in the coming years.
It has seen its per capita income
doubling in the last 6 years, it has
more than 60% of its people under the
age of 60, urbanization and exposure
to western lifestyle is rising, all
leading towards increasing
consumerism in the coming decade.
In the buoyant times; people tend to
spend more on the leisure based
consumption. For the multiplex sector, the target group is in the age group of 15-60 years of age,
which visits the theaters more often than others.
2.7.2 People Willing To Pay For Quality
With the entry of multiplexes, which provide better quality movie watching experience at a
higher price compared to single screen theaters, more and more middle income group people are
coming back to the theatres thus unlocking a latent demand. This is a classic case of leisure
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consumption winning over value proposition in India. As content supply booms, more and more
people will turn to multiplexes because of the rising willingness of people to pay for such
services.
2.7.3 Production of Hindi movies
The Indian film industry, with over 3 billion admissions per annum, is the largest in the world, in
terms of number of films produced per year. This industry, which was worth US$ 2.12 billion in
2006, is estimated to grow at a CAGR of 16 per cent to US$ 4.42 billion by 2011. The opening
of the film industry to foreign investment coupled with the granting of industry status to this
segment has had a favorable impact, leading to many global production units entering the
country. For example, Walt Disney has partnered with Yash Raj Films to make animated movies,
the Warner Group is funding the Sippys' film projects.
2.7.4 Where Will You Watch Them?
India is an entertainment hungry nation, and the major sources of entertainment are cricket and
Bollywood. More than 3.3bn tickets are sold in India annually, this makes us the most cinema
going population in the world. Even then, there are only ~11,000 screens operational in the
country. Secondly, 95% of these are single screen theatres many of which have poor quality
ambience.
Most of the single screen theatres are run by single proprietor, often without proper operational
management skills. Moreover, because of the poor quality of prints supplied to the single screen
theatres in the rural areas, footfalls have been coming down. On top of it, these screens are not
eligible for entertainment tax exemptions. These factors have eroded the viability of these
screens resulting in poor infrastructure spend which further reduces footfalls.
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2.7.5 Enough Space For Multi – Screen Theatres
We believe that there is enough space for more multiplex projects given the quantum of demand
and lack of supply in the sector. Our preliminary analysis suggests that at national level and
considering only the urban population demand in the age group of 15-60 years, 662 multiplexes
with 3 screens per property i.e. ~2000 screens can operate at 35% capacity. All of the multiplex
players combined are operating only ~500 screens at present, hence, we believe that even though
there might be a case for overbuild in some pockets, overall there is enough scope for further
screen supply.
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2.8 Risks & Concerns
2.8.1 Slowdown I n Content Supply
As multiplexes are the consumers of content, they have no control over the supply quality and
quantity. Multiplexes thrive on rising footfalls which in turn depend on the better supply of films
from producers. Hence, any disruption on the supply side will definitely have a negative impact
on the multiplex players' growth.
2.8.2 Alternative Entertainment Avenues
Movies compete for customer attention with other forms of entertainment viz. DVDs, TV,
cricket, festivals etc. An increased acceptability of these avenues will divert footfalls away from
multiplexes.
However, we believe that there is enough room for all to exist and grow simultaneously. A case
in point is US, where almost all forms of entertainment are present and have been well received
by the consumers. Even then, footfall growth hasn't halted over there. Moreover, there might be
possible synergies among these formats which might benefit multiplexes, e.g. showing of IPL
matches on cinema screens.
2.8.3 Mall Development Delays
Supply of quality real estate has been a problem in the past for multiplex players. Mall delays
due to various reasons will hurt expansion plans of the companies. We are building in a 50%
delay in mall handovers to the multiplexes in our analysis. Any delay more than this will hurt
future growth of multiplexes.
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2.8.4 Uncertainty Over Entertainment Tax
Entertainment tax in India is among the highest in the world leading to a much higher occupancy
levels required for breakeven of multiplexes. Even though state governments have announced tax
free windows for these players, uncertainty looms over the viability of multiplexes after the
window expires. We believe that the levels entertainment tax will come down in the future,
otherwise any increase will be passed on to the consumer to a large extent like it is done at
present.
2.8.5 Fluctuating Economic Environment
The whole footfall growth story depends on rising prosperity in the country leading to higher
discretionary consumer spends. If the economic environment starts worsening for a prolonged
period, it will affect patronage levels negatively pulling down top line growths. We are assuming
very low CAGRs at the top line levels for all of the players and are quite optimistic that
multiplexes will grow as expected.
2.8.6 Great Success Of I PL
Bollywood regularly competes with cricket as an entertainment category. One such property, the
Indian Premier League (IPL) was floated by the BCCI during Q1FY09 and held between Apr'08
and Jun'08. This has been a double whammy for multiplex operators. On the one hand, movie
producers were reluctant to release their movies during the quarter; on the other hand, popularity
of IPL reduced cinema visits. Since no fresh content was forthcoming, multiplex operators had to
churn the old movies a little longer and hence, could not generate footfall growth.
Our interaction with the management at various multiplex chains indicates that all operators
experienced low occupancy rates during the quarter. Given the fact that the DLF IPL is here to
stay as a property, at least in the foreseeable future, we believe that low occupancy levels would
characterize the first quarter performance. However, we also believe that going forward, once the
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novelty factor wears off, and multiplex operators would be able to progressively improve their
occupancy levels.
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There were times when people were almost crazy about various facilities of multiplex and they
were ready to pay high sum of money in order to get the experience of a multiplex. But, times
have changed; now people are no longer attracted by the games zone or waiting lounge or food
court. What matters for them is the quality of movie viewing experience & cost of the ticket.
High ticket cost at the Multiplexes is discouraging the movie viewers. People now want a
medium where they can enjoy quality movie viewing experience.
Miniplex here provides a perfect solution for this problem. Although, the size of miniplex is
small, the fun, enjoyment & feel of the multiplex or any big screen size theatre still prevails.
3.1 What is a Miniplex?
A miniplex can be termed as a theatre with limited seating capacity. Since it has limited seating
capacity, the area needed for the same is also far less as compared to a normal multiplex screens.
The size of the screen is also smaller as compared to a normal multiplex screen.
3.2 Benefits
? Due to less infrastructure cost, the cost of the ticket is also lower.
? Mass acceptance is almost guaranteed across all socio – economic strata.
? Operational cost is 60% lower per seat as compared to any multiplex
? Maximum utilization of limited resources is possible
? It provides 100% multiplex feel with 50% lower cost.
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4.1 Company’s Objective
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To develop a highly successful, profitable entertainment business chain, providing service of
movie exhibition at an affordable cost for the community.
4.2 Company’s Vision
?A commitment to provide best quality cinema viewing experience to everyone at an affordable
cost.?
4.3 Company’s Mission
?To be one of the leading player in the movie exhibition industry in next 10 years.?
4.4 Technical I nputs
? E – Cinema technology which would be delivered via satellite.
? Full high definition quality projection.
? No print cost
? Reduction in distribution & logistics cost
? Control in piracy
4.5 Advantages
? Operational cost per seat is 60% lower.
? Provides 100% multiplex at 50% lower cost.
? Low cost to viewers
? Opportunity to reach mass market across all towns and cities.
? Optimum utilization of the infrastructure shall be ultimately boost the Return on
Investment(ROI)
? Payback period can be achieved within a far smaller period as compared to large
multiplexes.
? Requires space of only 3500 to 5000 sq. ft
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Location is one of the most important factors for operating any business successfully.
An ideal location for our miniplex would be Chandkheda. There are a lot of reasons behind the
same which are as follows:-
? Currently there are no theatres in Chandkheda as well as its surrounding areas like
Sabarmati, Zundal, Adalaj, Sardar Patel Ring Road, etc.
? Chandkheda is considered one of the hottest destinations from realty point of view. As a
result of which there is a lot of township projects who are just about to get completed as
well as a lot of other township projects which have started. These projects have a
potential of accommodating lakhs of people. As a result of which we will find huge rise
in population of Chandkheda. This would increase the target market segment for our
miniplex.
? Chandkheda is one of the most heterogeneous localities of the city. You can easily get
population of almost all the income groups; which can be segmented.
? The nearest locality from our location is New C. G. Road which is considered as one of
the sought after residential areas of the city.
? Vishwa Karma Engineering College & IIT – Gandhinagar are two colleges which are
almost next to our location. These colleges have thousands of students studying in it as
well as living in hostel nearby our location. These students are the major target segment
of our miniplex.
? New projects like Dubai World Mall, 4D Square, etc. are coming up in chandkheda. Also
there are well established formats like D – Mart, Sales India, Balaji Mall, Sangath Mall,
etc. which are doing very well. Apart from that there are various restaurants & cafe in
Ahmedabad like Mirch Masala, Cafe Coffee Day, Havmor, etc. All these things combine
to give a visitor a complete package kind of shopping, entertainment, fun, etc.
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Dev Business Hub
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6.1 Segmentation
The segmentation strategy for our miniplex is pretty clear. We have clearly defined our target
segment and aim to cater them. It is targeted mainly towards students & middle class income
group consumers. Our miniplex with different pricing strategy for different shows will try and
cater almost all the sections of people.
? 6.1.1 Consumer Demographic Segmentation
Age: - Out of 300 respondents surveyed we had 78% of the people in the age group of
21 to 40 & almost 19.67% of the people in the age group of below 20. This age group of
people are the major target segment for our miniplex.
I ncome: - Chandkheda is a very heterogeneous locality. It has got the consumers of
almost all the income groups. Our target segment comprises of audience under the
monthly income group of less than 45,000. Also in our survey we have found out that
around 80.95% of the respondents were under the income level of less than Rs. 45,000
per month.
? 6.1.2 Geographic Segmentation
Our miniplex is specifically targeted towards the residents living in Chandkheda,
Sabarmati, Motera, Adalaj, Zundal, etc. Also it is targeted towards students of two
engineering colleges in Chandkheda who study there, live there, or come there to attend
their college.
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? 6.1.3 Consumer Psychographic Segmentation
Movie goers of our target segment can be termed as ?Experiencers? who seek variety and
entertainment. Since they do not belong to affluent class in terms of income; they seek to
strike a balance between household expenses and expense on fashion, entertainment and
socializing.
Also they do consist following major tendencies:-
o Go outside the home for entertainment
o Can be easily reached through traditional media
o Heavy television and radio users, as well as medium internet users
o Receptive to advertising in movie theatre, consider as part of their movie going
experience.
? 6.1.4 Benefits – Sought Segmentation
6.1.4.1 WHAT?
1. What benefits that the customer seeks? – Complete movie going experience.
2. Factors influence demand? – Price, movie, day, time of the day, day of the week,
month etc.
3. What function can the product perform for the customer? – Entertainment.
4. What are the important buying criteria? – Price, ambience, placement, quality service,
premium positioning, status symbol.
5. What risks does the customer perceives – risk of being overcharged, risk of being in an
emergency like fire at the theatre.
6.1.4.2 HOW?
1. How does customer buy the product? – Online /Telebooking / In person
2. How long does the buying process take? – Simple and prompt
3. How do the various marketing mix elements influence the customer at each stage of
buying? – (Explained later in the report)
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4. How does product fit in to their lifestyle? – Entertainment product for the premium.
5. How much would they be willing to spend? – We have decided to keep Rs 70 for all
the shows,
6. How much do they buy in one transaction? – Almost always more than 1 ticket.
Depends upon the number of audience & movie playing.
6.2 Targeting
The whole concept of miniplex is very new in the market and therefore its offering to the
customer is Innovative. Our miniplex has affordable pricing and they target mainly middle class
income group people. We are trying to bring our customers the experience of Luxury Cinema.
We have decided to keep Rs 70 for all the shows.
6.3 Positioning
We have a very well planned market position. Its affordable positioning affects the customers
perceptual positioning. Therefore, we have decided on its marketing strategy and pricing,
keeping the target market in mind. In case of our miniplex, we will make use of all their tangible
elements to prove to their customers that their movie tickets are worth the price they are paying.
Our positioning is evident in our mission statement also which says
“A commitment to provide best quality cinema viewing experience to everyone at an
affordable cost.”
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7.1 Marketing Philosophy
Our marketing philosophy is to present our company as an independent, service oriented
business organization, which is genuinely concerned with providing high – quality service at an
affordable rate.
7.2 Marketing Strategy
? Opportunities
The greatest strength of our project is that there are no competitors currently operating in
our locality. Audience of Chandkheda and its surrounding localities like Sabarmati,
Adalaj, Zundal, residential areas near S. P. Ring Road, etc. are actually in need of a
theatre which is located not far away from their residence.
Audience nowadays is not attracted by the games zone, or food zone, etc. of a multiplex
& high cost of multiplex is discouraging movie buffs. What they want is quality movie
viewing experience and it would be an icing on the cake for them if they are able to get it
at an affordable price.
If we look demographically than major population of Chandkheda consists of families
which belong to middle class & upper middle class income groups. The model of our
miniplex is almost perfect to suit their needs.
? Company Strengths
One of the biggest strengths of our theatre is its operating cost, which is almost 60%
lower as compared to any normal multiplex theatre. This provides us with an opportunity
to set up competitive pricing for our shows, but the sound quality & on – screen
experience still remains the same. So we can provide all the fun of a multiplex movie
experience with almost 50% lower costs. The affordable pricing strategy almost
guarantees the mass acceptance.
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? Our Marketing Strategy I s Two – Fold
First, we must develop a loyal customer base on which to build our business.
Second, we must cultivate and expand this customer base to ensure a long lasting and
solid relationship with our repeat customers and continued vitality of the business with
the addition of new customers.
? Image We Want To Portray
The entire foundation of our business rests on our pledge to provide quality service at a
reasonable price. We will portray our business in such a way that the consumers will feel
that they had value for their money. Even though we have an affordable pricing strategy;
we would still want to portray ourselves as one who provides quality movie viewing
experience to our audience.
7.3 Advertising and Promotion
During our first month of business we will involved in to sound local advertising and promotion.
We will go for banners and news paper advertising. The banners will be displayed nearby the
public places like colleges (Vishwakarma Engineering College and IIT Gandhi nagar),
Chimanbhai Bridge, New CG Road, Near ChandKheda Bus Terminus, Near Narmada Canal,
Shopping Malls like D-Mart, Sales India, E-mall etc. Apart from that we will distribute leaflets
every week for first 1 month along with the news papers.
7.4 Advertising Cost
The advertising initially will be done to make people aware about the theatre. Then the specific
budget will be allocated based on the revenues earned. The image we want to portray is the
theme based theatre with low cost. The initial advertising will be carried out by the print and out
door advertising. The leaflets, banners and news paper advertising will be used.
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? News paper advertising
o The news papers like Divya Bhaskar and Ahmedabad Mirror will be used for
the print advertisement prior to the day of opening that is 31
st
July, 2010-
Saturday. And than once again the same advertisement for the next week. This
will cost us around 50,000 Rs.
? Leaflets
o The leaflets will be sent along with Divya Bhaskar news paper will cost around
15,000 Rs. This medium will be used for initial advertisement purpose. Than
based upon the response the advertisement strategy will be altered.
? Banners
o The small banners using white cloth will be used initially to make familiar the
nearby locality public. This will cost around in total Rs. 35000 for various
public locations. This medium will be used for initial 6 months.
7.5 Grand Opening
? The grand opening will be on the day of Friendship Day that is 1
st
August, 2010,
Sunday. Promotion strategy is to offer free movie show on the day of opening and the
next day of the opening. The prior registration will be required to avail the scheme of
free ticket. Hence forth for 1 week well offer free morning and noon show to attract
people to feel the experience of the new concept of Miniplex. The major news papers
and radio channels will cover the launch news in the city of Ahmedabad.
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8.1 Movie Preference
Movies, that are consider as a most entertaining medium in the entire entertainment industry.
People visit theatres for the best of their entertainment. With so many types of movies coming up
in the Bollywood as well as Hollywood are viewed by the people. The first question was asked to
the respondents to make them involved in the research process as because the questionnaire
designs type is of ?Funnel sequence.? The options given to the respondents are as follows.
? Action
? Love Stories
? Thriller
? Horror
? Documentary
? Reality based
? None of the above
All the above options were asked to the respondents to select for more than one options if
required. The comedy options had not been used because it will lead to biasness as people will
like the comedy movies for time pass option. The result of the data are shown in the below table
as well as graph.
(8.1 Movie preference)
Responses
N Percent
$Movie_preference
a
Action 128 21.2%
Love Stories 154 25.5%
Thriller 94 15.5%
Horror 65 10.7%
Documentory 36 6.0%
Reality based 119 19.7%
None 9 1.5%
Total 605 100.0%
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(8.1 Movie Preference)
From the above graph as well as table we can conclude that out of 300 respondents 605
responses in total were obtained. From those 605 responses Love stories has got the first
preference with 154 i.e. 25.5% of the total respondents. Followed by action and reality based
movies which got second and third preference respectively. Thus we can say that Love Stories is
the most proffered type of movies among respondents. This could be because of the emotional
natured culture of India.
8.2 Type of cable TV connection
The entertainment industry is highly dominated by the television watching habit of the
consumers. New type of TV connections like ?Direct To Home?(DTH) are available for the
consumers to see high quality pictures and sound at their home. This question was asked to the
respondents to know the television connection usage of the people around the Chandkheda area.
The options given to the respondents were, local cable connections and DTH services like
TataSky, Dish TV, Sun TV or Airtel DTH. The response of the respondents can be seen from the
below pie-chart.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
21.20%
25.50%
15.50%
10.70%
6.00%
19.70%
1.50%
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(8.2 TV Connection)
The above pie chart shows the results that 64% of the respondents in the locality use the local
cable TV connections. That is the positive sign for the new venture because they can not access
the specialized services which the DTH provider‘s provide i.e. Movie on demand in which by
paying some amount of rupees one can see movie as and when he wants at his home.
8.3 Movie on demand usage
New DTH services provider are coming up in the market because of advances in the technology
and acceptance of the DTH services also the charges of the same are going down because of new
and new players are coming up in the market. The services provided by these companies are also
increasing i.e. recording of any show, movie on demand etc. These services can be threat for the
theatres because people can use theses services to watch movies rather than going to the theatres.
The respondents who said they are using the DTH services at their home are further asked about
usage of the Movie on demand options. The options given to the respondents were are as
follows.
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? Yes
? No
? Sometimes
(8.3 Movie on demand)
Out of the 300 respondents surveyed 108 respondents use the DTH services and out of that 74%
or 80 respondents said that they are not using the movie on demand option. Here there is a
positive signal for the theatres around the locality as because people don‘t find it suitable to
watch movies at their home the reason of the same could be because of completed system of
ordering movies or the cost of ordering could be high or same as the theatres and therefore to go
to the theatres may be suitable option for the consumers.
8.4 Computer usage
Increasing the education level of the people also increases the usage of various gazettes like
computers. If the consumers are having the computers at their home along with the internet
connection can be a threat for the theatres as because availability of the movies at free of cost
using the internet services. The major free data provider services are ?BitTorrent?. The
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respondents were asked about having a computer at their home or not. The options given to the
respondents were simply Yes or No.
(8.4 Computer usage)
Out of the 300 respondents 299 gave the response of this question and out of those 250
respondents that is 83% respondents said that they are having a computer or a laptop at their
home. That is a negative sign for the theatres as because consumers can watch movies in the
computers especially the youngsters who are more addicted towards the internet.
8.5 I nternet Usage
As explained in the earlier point of the computer usage pattern this question was asked to the
respondents to know that whether they are using internet connection at their premises or not to
generalize the techno-savvy pattern of the consumers of Chandkheda. The options given to the
respondents were simply Yes and No. The histogram that reveals the picture of the internet usage
is as follows.
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(8.5 Internet Usage)
Out of the 300 respondents surveyed 60% that is 179 of the respondents said that they use the
internet connection at their premises. This is again shows a negative impact for the theatres as
because the user of internet may get influenced of watching a movie by downloading it from the
internet. Especially students are regular downloader of the data from the internet.
8.6 Movies download habit from the internet
After asking the respondents about having internet connection or not, the next question asked to
the respondents was about to know their habit of downloading the movies from the internet. The
options were given to the respondents are as follows.
? Yes, I download regularly
? Yes, but only if the movie is average
? No, I don‘t download at all
? No, it is time consuming
? No, I like to watch it in a theatre
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The responses obtained from the respondents can be used to understand the consumer‘s
psychology about the internet downloading patterns. The last option was also given to
understand the consumer‘s habit of watching movies in spite of having computer and internet
connection. The 3D bar graph that reveals the picture is as follows.
(8.6 Movie downloads habit from internet)
The above bar graph reveals that 217 respondents responded to this question and among them 28
% that is 60 respondents said that they visit theatres to watch movies instead of downloading the
movies from the internet followed by third option that is I don‘t download at all. Here it again
shows the positive response towards the theatres as because respondents prefer theatres. The
reason of the same could be lack of time or lack of knowledge or it can be because of sound and
video quality along with fun and shopping facilities at the malls and multiplexes.
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8.6.1 Cross Tabs of Internet Usage and Movie download pattern
Q5_Internet * Q6_Download Cross tabulation
Q6_Download Total
Regularl
y
Only if
average
do not
download
No time
consuming
watch in
theatre
Q5_Intern
et
yes 42 25 41 28 42 178
no 1 4 16 0 18 39
Total 43 29 57 28 60 217
(8.2 Cross tabs of internet usage*movie download pattern)
The cross tabulation result reveals that 19% of the people, who has internet connection,
download movies regularly from the internet. Out of all respondents 62.35% of the respondents
do not prefer to download movies from the internet and 38% of those 62.35% respondents prefer
to watch movies only in the theatre. The result over here turns out to be that there is no
significant difference in the number of respondents who prefer to watch movies only in the
theatre and the respondents who download movies regularly from the internet.
8.7 Members of Video Library
Now, it is essential to know whether the respondents are the members of any video library like
BigFlix, Moserbear, etc. Since, Video libraries provide high quality original video at a nominal
rate to its members; it is likely to affect the frequency and the expenses of an individual towards
movies in theatres.
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(8.7 Members of video library)
Here we observe that none of the respondents is the member of any video library. This may be
because there are no video library in Chandkheda and its surrounding localities or may be
because respondents are not aware of the concept of video library or may be people are not
inclined towards it.
8.8 Mode (Overall)
Mode of watching movies is directly related to the frequency and expense of an individual
towards the same. Here we questioned respondents for the mode(s) they use for watching
movies. Here the options given to them were
? Theatre
? VCD/DVD Purchase
? VCD/DVD Rental
? Ordering through DTH
? Home on TV Channels
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(8.8 Mode theatre)
(8.9 Mode DVD purchase)
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(8.10 Mode DTH)
(8.11 Mode DVD rental)
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(8.12 Mode TV channel)
Here we observe that theatre is the most preferred mode of watching movies among the
respondents. The second most preferred option among respondents is VCD/DVD purchase.
With the availability of Pirated VCD‘s & DVD‘s any new movie released is easily available to
the respondents and that to at a very cheap rate and thus this option is also very highly preferred.
In case of watching movies at home since on Local Cable TV channels; operators these days
tend to show the newly released movie which also plays an important role in the final expense of
an individual towards theatre. As far as ordering movies through DTH is concerned it is clearly
visible that respondents rarely prefers it.
8.8.1 Frequency of watching movies in theatre.
Now there was the need to know the frequency of various modes of watching movies of the
respondents. Here the options given to the respondents were
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? 1 = Once in a week
? 2 = Twice a month
? 3 = Monthly
? 4 = Once or Twice in Six Month
? 5 = Once or Twice in a year
? 6 = I go for every new movie release
(8.13 Frequency of Students in theatre)
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(8.14 Frequency of Professionals)
Here researcher has tried to compare the frequency patterns of students with that of the
professionals. It is based upon the assumption that since professionals have hectic schedules their
frequency pattern tends to differ from that of the students.
We observe that approximately 32% of the students & 31% of the professionals tend to watch
movie at least once in a week. This shows that these two strata does not differ significantly in
terms of watching one movie at least a week.
Also approximately 35% of the students & 36% of the professionals tend to watch at least two
movies in a month. Again there is no significant difference between the two strata when it comes
to watching movies at least twice a month.
Same is the case when it comes to watching movies monthly, once or twice in six months, once
or twice in a year. Both the strata show almost the same frequency even in the case of going for
every new movie release.
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Thus, from the above responses it can be safely concluded that students & professionals exhibit
the same pattern when it comes to the frequency of watching movies in the theatre.
8.8.2 Frequency of VCD/DVD purchase
(8.15 Frequency of Students for DVD purchase)
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(8.16 Frequency of Professionals for DVD purchase)
In the case of Purchasing VCD/DVD there is a noticeable difference between students &
professionals. While 27% of the students tend to purchase VCD/DVD at least once in a week; on
the other hand only 21% of the professionals tend to do the same.
When it comes to purchasing VCD/DVD at least twice in a month; professionals with 33% show
greater tendency then students with 29%. Same is the case when it comes to purchasing
VCD/DVD monthly. Professionals again with 28% show higher preference than students with
almost 22%.
But when it comes to purchasing VCD/DVD once or twice in six months & once or twice in a
year both the strata has equal number of respondents.
Thus, it can be said that professionals do tend to purchase more VCD/DVD then students.
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8.8.3 Frequency of VCD/ DVD rental
(8.17 Frequency of Students for DVD rental)
(8.18 Frequency of Professionals for DVD/VCD rental)
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In the case of DVD/VCD rental; students & professionals differ from each other in many aspects.
When it comes to having rented DVD/VCD weekly; students with 30% nudge ahead of the
professionals with almost 26%.But, in the case of having a rented DVD/VCD twice in a month
students with 16.21% show very less tendency as compared to professionals, where almost 36%
of the professionals tend have it.
The frequency pattern of renting DVD/VCD monthly is almost same for both students &
professionals. But again when it comes to frequency pattern of buying DVD/VCD once or twice
in six months students with 16.21% show much higher tendency than professionals with 6.45%.
The same case has been observed when it comes to having rented DVD/VCD once or twice in a
year. Zero response from professionals in the case of renting DVD/VCD for every new release
clearly shows that they are not inclined towards renting DVD/VCD as much as students.
Thus here we can safely assume that students are more likely to rent a DVD/VCD than
professionals.
8.8.4 Frequency of ordering through DTH
(8.19 Frequency of Students through DTH)
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(8.20 Frequency of Professionals for DTH)
Now in the case of ordering movies via DTH only 6 out of the 150 students & 8 out of 150
professionals mentioned that they use this medium. Although the number of responses are not
sufficient in order to conclude anything we can still say that as per the responses obtained
professionals are more likely to order movie via DTH then students.
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8.8.5 Frequency of home on TV channels
(8.21 Frequency of Students for TV channel)
(8.22 Frequency of Professionals for TV channel)
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To start with there is a huge difference between the numbers of respondents who prefer to watch
movie on TV channels. Students here have higher frequency of watching movies on home at TV
channels as compared to the professionals.
There is almost no difference in terms of percentage of respondents in both the strata in case of
watching movies home on TV channels weekly. There is somewhat difference in the frequency
for twice in a month. Here again students tend to show higher frequency as compared to the
professionals. In rest of the cases also we observe that students show higher frequency of
watching movies on TV channels as compared to professionals.
8.8.6 Overall expenses on theatres
We have asked the amount spend by the respondents on each of the modes of watching movies.
But major important here to know the amount spend on theatres. We have decided the amount in
various ranges i.e. Less than 300, 300 to 600, 600 to 900 and Above 900.
(8.23 Overall expense on theatre)
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The histogram of the expenses on theatre reveals that 43% of the respondents spend less than 300
rs and 37% of the respondents spend between 300 to 600 rs on then theatres. That shows that
people of Chandkheda spend very low amount and therefore low cost theatre can work out very
well in this area.
8.8.7 Correlation
Now here we try to find out strongly Monthly Family Income, Frequency of Visiting Theatre and
Expenses of Theatre are correlated.
Correlations
Monthly_Famil
y_Income
Q8_expnse_the
ater
Q8_freqcy_The
ater
Monthly_Family_Incom
e
Pearson Correlation 1 .227
**
.083
Sig. (2-tailed)
.000 .177
N 293 268 264
Q8_expnse_theater Pearson Correlation .227
**
1 -.354
**
Sig. (2-tailed) .000
.000
N 268 274 269
Q8_freqcy_Theater Pearson Correlation .083 -.354
**
1
Sig. (2-tailed) .177 .000
N 264 269 270
**. Correlation is significant at the 0.01 level (2-tailed).
Here we observe that there exists a positive correlation between monthly family income &
expense in the theatre, as well as monthly family income & frequency of theatre. Also we
observe that the value correlation between expense in the theatre & monthly family income is
0.227 which is far higher than correlation value between monthly family income & frequency of
theatre (.083). So we can say that there is stronger correlation between expense of theatre &
monthly family income as compared to monthly family income and frequency of visiting theatre.
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8.9 Companions for visiting a theatre
Theatres are the place for entertainment and people go to the theatres along with their friends,
family or relatives. It is very important to know that with who the people are visiting theatres as
because the ambiance of the theatre should maintained according to the target audience. This
question was asked mainly to know that people come to the theatres with which kind of their
companions. The options given to them were as follows.
? Family
? Friends
? Relatives
? Spouse
? Alone
The above options were given to the respondents to select multiple options as because the
visitors change their companions according to the situations. The bar graph that reveals the true
picture is as follows.
(8.24 Companions for movies)
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Q9_family Q9_friends Q9_relatives Q9_spouse Q9_alone
.4100
.8533
.1300
.1600
.0700
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The above bar graph shows that 85% of the respondents said that they would prefer to visit
theatres along with their friends followed by families that turnout to be the 41% . The very less
response is given to the spouse and that is only 16% respondents prefer to visit theatre with
spouse. That might be because majority of the respondents who are surveyed, are unmarried.
8.10 Highly visited competitors
Before starting any business the first step is to understand the competitors and identify the best
competitor in the market. Ahmedabad is having the major theatre brands like Adlabs, Cinemax,
and Wide Angle etc. There was need to identify the most visited theatre by the consumer. The
success of the company depends on the repeat purchase of the product not only increasing the
number of customers. This question was asked to the respondents to be successful in the market
by identifying the most visited theatre among the consumers. The respondents were forced to
select the first three theatres which they had visited till date and also were asked to rank that
three selected theatres on 1 to 3 scale where 1 being the most highly visited theatre and 3 being
the 3
rd
best visited theatre. The options given to the respondents were as follows.
? K Sera Sera
? R world
? CineMax
? Adlabs
? Wide angle
? Red carpet
? Devi
? City pulse
? City Gold
? Fun Republic
? Others
The frequency of each of the rank given to the theatres by the respondents are shown in the
below table. The weighted mean will be calculated to identify the top three visited theatres by the
respondents
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.
Theatres 1=Highest Visited 2=2nd highest visited 3=3rd highest visited
K_sera_sera 5 0 12
R_world 28 31 26
Cinemax 35 35 41
Adlabs 49 31 21
Wide_angle 69 78 37
Red_carpet 12 16 15
Devi 3 0 8
City_pulse 7 17 30
City_gold 35 41 47
Fun_republic 44 47 60
Others 13 4 3
Total 300 300 300
(8.4 highly visited competitor)
The weighted mean will be calculated by assigning values like 0.3 to the 1
st
ranked, 0.2 to the 2
nd
and 0.1 to the 3
rd
ranked theatre. Then the formulae for the which will be used to calculate mean
will be as follows.
Weighted Mean=
0.3*n1+0.2*n2+0.1*n3
300
Where, n1=number of respondents who gave 1 to the particular theatre
n2= number of respondents who gave 2 to the particular theatre
n3= number of respondents who gave 3 to the particular theatre
The weighted mean for all the theatres and the overall rank of all the theatres are given in the
following table.
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Theaters Weighted Mean Rank
Wide_angle 0.1333 1
Fun_republic 0.095 2
City_gold 0.078 3
Adlabs 0.076 4
Cinemax 0.072 5
R_world 0.057 6
City_pulse 0.028 7
Red_carpet 0.027 8
Others 0.016 9
K_sera_sera 0.009 10
Devi 0.0056 11
(8.5 Waighted mean for highest visited theatres)
The above table that shows that Wide Angle is the top most visited theatre by the respondents
though it is far away from the Chandkheda area with the weighted mean of 13.33% followed by
the Fun republic and City Gold with 9.5% and 7.8% respectively. Adlabs has been ranked 4
th
by
the respondents for visiting the theatre. The reason for visiting these top most theatres could be
because of the sound and video quality, low cost, food court, gaming zones etc. The Gujarati
people are fascinated towards the Khava-Piva and Farva and that facility plays major role to
increase footprints in the theatres.
8.11 Attraction towards frequent visit
The frequent visit of customers depends on some special attribute or facilities that consumers
like the most. This question was asked to the respondents to know the reason of visiting the most
visited theatre. That reason is very useful to understand the competitors Unique Selling
Proposition. We can also emphasize in the feature which is very important to be successful. In
this question the respondents were forced to rank all the options comparatively on the scale of 1
to 8 where 1 is the best reason for frequent visit of a theatre and 8 is the least reason for frequent
visit of a theatre. The options are as follows.
? High sound and video quality
? Comfortable sitting arrangement
? Affordable Cost
? Games
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? Food Court
? Shopping facility is also available
? Because its near to my residence
? I like the audience coming to that theatre
8.11 .1 High sounds and video quality
The sound and video qualities are the first major requirements for any theatre because to feel the
surround sound and digital quality video quality consumers pay heavily for tickets. The new
system of movie screening through satellite is now very successful and reduces the piracy of the
movies. The responses given by the respondents are shown in the histogram.
(8.25 High sound and video quality)
The above histogram reveals that the major reason for visiting the Wide Angle is its high sound
and video quality with 2.17 mean that is the least among all the options. Also we can see from
the histogram that the normal distribution curve is positively skewed with 1.613 that is highest
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among all the options and that reveals that the data are far on the 1 and 2 ranking side from the
mean and gives 1
st
rank as the reason of visiting the Wide Angle theatre. Therefore we should
more focus towards the high quality sound system and high quality projectors.
8.11 .2 Comfortable sitting arrangement
The ambiance of the theatre plays very important role in attracting consumers to visit the theatre
for the second time. The various kind of fancy chairs are available in the market like Push Back,
Electric Remote Chairs etc. The comfortable seats with soft sponge costs heavily but at the same
time it gives the major reason to the consumers to visit the theatre again. The histogram of the
comfortable seats reveals the following facts.
(8.26 Comfortable chairs)
The above histogram reveals that the comfortable seating arrangement as well as chairs is the 2
nd
best reason to visit Wide Angle, Fun Republic or City Gold theatres. The mean of comfortable
sitting arrangements is turn out to be 2.78 with 1.523 standard deviation. The histogram shows
the normal distribution curve to be positively skewed towards the 2 and 3 rankings hence we can
conclude that its a second best important feature for a theatre.
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8.11 .3 Affordable Cost
The rates of the ticket are very important because a very high equipped theatre costs very high
and it directly affects the visiting decision of an individual. The average costing of a theatre
ranges between 100 to150 bucks. Also the show timings affect the cost of the tickets. In the
morning show the cost of the ticket is very low and reaches to around 40 to 60 bucks. The cost is
also a major important criterion for visiting a theatre again.
(8.27 Affordable cost)
The above histogram for affordable cost reveals that the 3
rd
major reason to visit the top three
theatres is its affordable ticket pricing with the mean of 3.45 and standard deviation of 1.945.
The prising of Wide Angle is costly compared to all the other theatres but still its highly visited
the reason of that can be because of the high quality sound system of the theatre. The 2
nd
most
visited theatre is Fun Republic which is running at cheap rates of ticket compared to other
theatres and that can be the major attracting parameter for consumers.
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8.11 .4 Games Zones
The consumers especially youngsters are very passionate about playing games at the theatres.
The games are also an attractive feature for any malls and multiplexes. The major games
available at the theatres include Cricket, Bowling, Ice Hockey, Racing Cars, Video games for
kids etc.
(8.28 Games zone)
The above histogram for gaming zones reveal that the consumers do not have inclination towards
the games facilities at the theatres and got the 7
th
ranking reason for visiting the theatres with
5.91 mean and 1.698 standard deviation. We can see from the histogram that the normal
distribution curve is negatively skewed with -0.71 value.
8.11 .5 Food Court
The Gujarati people are very foodies and they need something to eat and drink at the time of
going out of home for enjoyment. The food court at the theatre is as important as other features
at the theatre. People spend around 300 to 500 bucks for food items at the theatres. The major
available items include Sandwiches, Samosa, Fries, Burger, Hotdog, Coke, Pepsi, Thums-up etc.
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(8.29 Food court)
The above histogram for food court reveals that the consumer does not have special inclination
towards the food court with 5.54 mean and 1.697 standard deviation and got the 6
th
rank as a
preference to visit a theatre frequently. The reason of that could be very high cost of items
available in the theatres. Generally the prises of the cold drinks increase by 50% from normal
prises. That‘s why people will prefer to complete Pet Pooja earlier and than they prefer to visit
the theatre as they are also aware about the show timing.
8.11 .6 Shopping Facilities
The malls are crowded with the so many brands for shopping purposes in the city. The shopping
patterns of consumers are changing day by day. Nova day‘s consumer‘s purchases are impulse
decision. In the crowded mall the ground floor, 1
st
and 2
nd
floors are devoted for shopping
facility and at the top floor there is a theatre. It has been assumed that people come earlier at the
malls for shopping and than they go for watching a movie at the theatre. This option was given to
the respondents especially to know that do consumers prefer a theatre at the area where there is
no any shopping facility.
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(8.30 Shopping facility)
The result of the shopping facility is turned out to be the positive as there is very least
importance given by the respondents towards the shopping facility as a reason for visiting the
theatre with the mean of 6.26 and the standard deviation of 1.595. From the above histogram we
can see that the normal distribution curve is negatively skewed and that concludes that the
shopping facility has got the 8
th
ranking.
8.11 .7 Distance from home
A megacity like Ahmedabad, having a huge big area, where the distance plays very important
role because travelling from one place to another takes time as well as incurs cost of travelling.
Chandkheda area is around 15 Km away from main city of Ahmedabad. There for people has to
travel a lot to watch a movie in a theatre. The theatre near by one‘s premises will be given first
preference to watch a movie because it also reduces per head cost. This option was given to the
respondents to know that whether the nearness of location is the criterion to visit a theatre more
number of times or not.
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(8.31 Distance from home)
The above histogram for the nearness of the theatre as an important criterion has got the highest
values on 4, 5 and 7 rankings and it has got the 4
th
rank in overall ranking as its mean turned out
to be the 4.8 with the standard deviation of 2.224. The importance of location has got the
moderate importance. From the above graph we can see that the normal distribution curve is
slightly skewed towards left. And there for we can conclude that the location proximity has got
the moderate important reason for visiting a theatre.
8.11 .8 Relevance of audience
The perception of the people varies according to the income level and life style. Generally, we
like to visit a place where we find some what the same status people as we are having. A very
high income level person will not like to visit a low priced theatre because he will not like the
audience coming to the theatre. This option was asked to the respondents to know that do people
visit the theatre frequently as because of the same kind of audience or not.
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(8.32 Relevance of audience)
The above histogram for the liking of audience at a particular theatre has got the mean of 5.07
with the standard deviation of 2.162 and the normal distribution curve is also slightly skewed
towards the left. Hence, we can conclude that the audience parameter has got the moderate
importance for visiting a theatre frequently. This could be the reason because people do not pay
much attention towards the other audience of the theatre.
Descriptive Statistics
N Mean
Std.
Deviation Skewness
Statistic Statistic Rank Statistic Statistic
Std.
Error
High_sound_video 296 2.1723 1.0000 1.38541 1.613 .142
Sitting_arrangement 296 2.7838 2.0000 1.52289 1.205 .142
Affordable_cost 296 3.4459 3.0000 1.94076 .498 .142
Games 296 5.9088 7.0000 1.69799 -.710 .142
Food_court 296 5.5372 6.0000 1.69705 -.378 .142
Shopping 296 6.2568 8.0000 1.59500 -1.083 .142
Nearness 296 4.7973 4.0000 2.24427 -.221 .142
Audiance 296 5.0743 5.0000 2.16158 -.066 .142
Valid N (listwise) 296
(8.6 Descriptive statistics for frequent visit)
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The above descriptive statistics table shows entire discussion about the reason of visiting the
most frequent theatres, that is Wide Angle, Fun Republic, and City Gold. The 1
st
reason is
because of the high sound and video quality followed by comfortable sitting arrangement and
affordable cost respectively as 2
nd
and 3
rd
reason. The fourth reason is the proximity from home
and the fifth reason is the kind of audience coming to the theatres.
From the above result we can conclude that we have to focus more on sound & video quality and
comfortable seats. The location proximity for Chandkheda area will be an added advantage.
8.12 Most Important factors for visiting a theatre
This question we had asked to know the importance of various factors while considering visiting
a theatre. The likert scale was used to know the degree of importance for each factor in the
theatre. We have applied the factor analysis technique to know the importance of various factors.
The options given to the respondents were as follows.
? Sound Quality
? Screen Size
? Comfortable Chairs
? Lighting in the theatre
? Personalized services (Snacks, Cold drinks at your seat)
? Shopping facility
? Food court
? Games Zone
? Cost of ticket
? Distance from home
? Advance Ticket Booking
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KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .763
Bartlett's Test of Sphericity Approx. Chi-Square 719.230
Df 55
Sig. .000
(8.7 KMO test)
For analysis of this question we have used Kaise – Meyer – olkin (KMO) measure of sampling
adequacy. This index compares the magnitudes of the observed correlation coefficients to the
magnitude of the partial correlation coefficients. Generally for doing factor analysis KMO value
of greater than 0.5 is desirable. Here since we obtain KMO value of 0.763; thus we can proceed
for factor analysis.
(8.8 Total variance explained)
Total Variance Explained
Com
pone
nt
Initial Eigenvalues
Extraction Sums of Squared
Loadings
Rotation Sums of Squared
Loadings
Total
% of
Variance
Cumulativ
e % Total
% of
Variance
Cumulativ
e % Total
% of
Variance
Cumulativ
e %
1 3.236 29.422 29.422 3.236 29.422 29.422 2.404 21.857 21.857
2 1.788 16.258 45.681 1.788 16.258 45.681 2.118 19.255 41.112
3 1.124 10.217 55.898 1.124 10.217 55.898 1.626 14.786 55.898
4 .879 7.994 63.892
5 .807 7.333 71.225
6 .686 6.237 77.462
7 .641 5.829 83.291
8 .529 4.813 88.104
9 .511 4.644 92.748
10 .425 3.862 96.610
11 .373 3.390 100.000
Extraction Method: Principal Component Analysis.
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(8.9 Component matrix)
Now with the help of rotated component matrix we can reduce the factors. By using ?Varimax
with Kaiser Normalization? rotation method, we found out that there are three important factors.
Now from the above column of 1, 2, & 3 we have to select from each column the factors whose
value is greater than 0.5 & the remaining factor(s) form a new factor all together.So, from the
above we have obtained the following table
Rotated Component Matrix
a
Component
1 2 3
Sound_quality .208 .035 .814
Screen_size .085 .200 .756
Comfortable_chai
rs
.057 .578 .285
Lighting .331 .480 .380
Personalized_serv
ice
.574 .485 .108
Shoping .781 .013 .101
Food_court .772 .115 .160
Games_zone .809 -.131 .087
Cost_of_ticket -.171 .559 .189
Distance -.029 .779 -.250
Advance_booking .144 .572 .109
Extraction Method: Principal Component
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 4 iterations.
(8.10 Rotated Component matrix)
Component Matrix
a
Component
1 2 3
Sound_quality .560 -.070 -.624
Screen_size .533 .133 -.564
Comfortable_chai
rs
.483 .429 -.038
Lighting .668 .186 -.054
Personalized_serv
ice
.708 .029 .273
Shoping .601 -.470 .199
Food_court .677 -.381 .177
Games_zone .537 -.601 .174
Cost_of_ticket .267 .551 -.043
Distance .268 .620 .463
Advance_bookin
g
.455 .363 .144
Extraction Method: Principal Component
Analysis.
a. 3 components extracted.
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In Movie Experience
Sound Quality
Screen Size
Out of Screen
Experience
Personalized
Service
Shopping
Food Court
Games Zone
Valued Variables
Comfortable
Chairs
Cost of Ticket
Advance Booking
Distance
(8.11 Factors extracted)
8.13 Show timings
The movies are being shown at various timings in entire day. Earlier the theatres used to start
from the matinee show and operate till the mid night show. Nova days the theatres are starting
from the early morning shows at 7 or 8 am and operates till the mid night shows of 9 or 10 pm.
The different show timings are offered to cater various segments of consumers. The question was
asked to the respondents to know that which is the most suitable show for the customers of
Chandkheda and based on that decide the show timings and also its promotion strategy for our
theatre. The options given to the respondents are as follows.
? Morning( Between 8 am to 12 pm)
? Noon ( Between 12 pm to 3 pm)
? Matinee ( Between 3 pm to 6 pm)
? Evening ( Between 6 pm to 9 pm)
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? Night ( Between 9 pm till midnight)
The respondents were given option to select multiple options because the most preferred show
timing can be more than two and it also depends on convenience. The result of this question can
be used as deciding on focusing a particular show as the main revenue generation show timing.
The analysis of the same according to strata is as follows.
8.13.1 Student’s most preferred show timings
(8.33 student’s most preferred show)
The above bar graph shows that out of 150 students surveyed, 149 gave response about the show
timings and out of them 54% students that is 81 students like to see movies in the morning show
and they have seen movies in the morning show. The second best time is noon followed by
evening and night as the same position. This result could be because of the reason that the
students have very limited pocket money and because of that they prefer morning cheap shows
that cost them around 40 to 50 bucks only. The reason for the same could be to bunk the classes
and enjoy with their friends at the theatre. This is the normal mentality of the students.
.0000
.1000
.2000
.3000
.4000
.5000
.6000
Morning Noon Matinee Evening Night
.5436
.3758
.0805
.2685
.2685
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8.13.2 Professional’s people’s most preferred show timings
(8.34 professional’s most preferred show timings)
The above bar graph for the working class people for the preference of show timings reveals that
out of the 150 people surveyed 39% people said that they visit the theatre at evening shows
followed by the night shows and morning shows respectively. The result of evening and night
shows is turn out to be the equal that could be because of non availability of time during the day
time. The cost of the ticket is not a major issue for them as they earn by themselves.
.0000
.0500
.1000
.1500
.2000
.2500
.3000
.3500
.4000
Morning Noon Matinee Evening Night
.3600
.2267
.1000
.3933
.3867
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8.13.3 Overall preference for show timings
(8.35 overall preference for show timings)
The above bar graph shows the overall preference for show timings of the entire sample. Out of
the 300 respondents 45% of the respondents prefer the morning shows while the evening shows
and night shows got 2
nd
and 3
rd
preference with the means of 33.11% and 32.78% respectively.
The reason of the same could be the low cost of ticket in the morning time. As the Chandkheda
area is not a posh area like Satelite and Navrangpura, the income level of people is quiet low
compared to the other areas of the Ahmedabad. There for people would like to compromise with
the timings. The working class people have to reach their offices at around 10.30 AM to 11.00
AM and there for morning show of 7.00 AM to 10.00 AM would be suitable for them also with
the low pricing of tickets.
.0000
.0500
.1000
.1500
.2000
.2500
.3000
.3500
.4000
.4500
.5000
Morning Noon Matinee Evening Night
.4515
.3010
.0903
.3311
.3278
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8.13.4 Reason for morning show
(8.36 Reason for morning show-students)
(8.37 Reason for morning show professional)
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Here we can clearly observe that students tend to prefer morning shows more than the
professionals. Also we can observe that major reason for the students behind the same is low cost
of the ticket. Although 45 out of 51 professionals have also said that they prefer morning shows;
but total preference of professional class towards morning shows is far less than that of the
students. Hence it won‘t be wrong to infer that professionals are less likely to compromise with
show timings for the benefit of low – cost of the movie.
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8.13.5 Reason for noon show
(8.38 Reason for noon show professional)
(8.39 Reason for noon show students)
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Almost same pattern follows when it comes to noon shows. Most of the students prefer this
timing because they find this time pretty convenient. This may be because students can come to
watch movies once their college gets over in noon. But, since most of professionals are busy with
their jobs during noon; it becomes almost impossible for them to watch movie during that time.
Since there are very theatres which provide low cost tickets even during noon time; there is
relatively low response for low cost during noon shows.
8.14 Awareness of Miniplex concept
A miniplex has already started in Ahmedabad but it is very new and far away from the
Chandkheda where the research is conducted. Researcher wants to know whether people are
aware of this concept or not and if they are aware of it then how would they describe it or how
do they perceive it.
The main purpose of this question thus is to facilitate researcher in knowing the perceptions of
the respondent towards miniplex.
(8.40 Awareness of miniplex)
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Here researcher found out that almost 38% of the people are aware of the miniplex. This is quite
a significant number considering the fact that it has started just a few months ago.
8.15 Preference towards visiting theatre apart from movies purpose
The main purpose of asking this question was to find out which are the other alternatives
available to the theatre apart from showing movies. The responses obtained here can be used to
find out the other feasible options which are available to the theatre when there is no good movie
releasing in the near future or when there is a major sports tournament like IPL is going around.
This will help theatre in minimizing their loss during those times.
Here researcher has already given the some alternatives to the respondents and the respondents
were supposed to select one or more than option (as per their preference). Those alternatives
were
? Watching Live matches
? New Product Launch
? Attending Seminars
? Various film festivals (e.g. special movies on children‘s day, valentine‘s day, etc.)
Responses
N Percent
Other activities
a
Live matches 108 28.2%
Product launch 56 14.6%
Seminars 82 21.4%
Film festivals 137 35.8%
Total 383 100.0%
(8.12 Visit of theatre apart from movies)
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(8.41 Visit of theatres apart from movies)
From the above questions 383 responses were obtained. Various film festivals was the most
preferred option with the frequency of 137 followed by live matches with the frequency of 108.
Here it can be inferred that even though showing live matches seems to be a very lucrative
option (especially in the cricket season); but consumers may still be more inclined towards
watching movies in the theatre. But speaking in the favour of telecasting matches it can be
argued that since this whole thing is still quite new to the people. Also adding to the same point;
since we have such a cricket frenzy crowd their lies a potential of building preference among
consumers over a period of time.
Thus, it can be safely assumed that screening various films during special occasions & showing
live matches seem to be very likely alternatives by which a theatre can survive even in turbulent
times.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Live Matches Product Launch Seminars Film festivals
28.20%
14.60%
21.40%
35.80%
Activities Other Than Movies
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8.16 Morning show preference
The main purpose of asking this question was to find out whether people would turn for an early
morning show given the benefit of the low cost. Early morning show at a very cheap rate can
serve as a differentiating point for the miniplex from its competitors.
(8.42 Morning show preference for students)
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(8.43 Morning show preference for professional)
Since more than 50% of the people from both the strata have given positive response for this
question; we can say that this strategy may work out really well for the miniplex.
Now we do the cross-tabulation between the people who say that they would like to watch an
early morning show with their family monthly income. The main rationale behind this is to find
out whether their decision was completely based on low cost of the ticket or whether they really
liked the innovative idea or whether they would like to try out new show timings
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Q17_morning_time * Monthly_Family_Income Crosstabulation
Count
Monthly_Family_Income
Total
less than
15,000
15,000 to
30,0000
30,000 to
45,000 above 45,000
Q17_morning_tim
e
Yes 43 58 37 19 157
NO 33 43 24 37 137
Total 76 101 61 56 294
(8.13 Crosstab 0f morning time*family income)
Results clearly show that most of the respondents falling in first two income groups (i.e. less than
15,000 & 15,000 to 30,000) have shown their readiness to come for an early morning show for
low cost of the ticket. First two category responses constitute about 64% of the total people who
have agreed to come for an early morning show. The readiness for the early morning show
steadily decreases as we move up in the higher income level group (i.e. above 45,000).So it
won‘t be wrong to say that their decision is mainly based upon the cost of the ticket rather than
trying out new innovative timings of the show.
Hence we say that cost of the ticket plays a very important role while deciding upon a show to
watch the movies.
8.17 Screen size vs Cost of ticket
The screen size of a miniplex is smaller than the screen size of a regular multiplex. There are a
lot of people who go to theatre only watch movie on big screens. Researcher here wants to know
whether people will turn up to the theatre given the incentive of low cost as compared to
multiplexes.
The respondents here were directly questioned about their intent to turn up for the movie and
were given following options to choose from at the same time.
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? Yes
? No
? Cannot Say
(8.44 screen size vs cost for students)
(8.45 screen size vs cost professional)
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Here we observe that around 50% of respondents of both the strata are not ready to compromise
with the screen size for the low cost of the ticket. Only 30% in student strata & 34% in
professional strata have shown their readiness to compromise for the screen size for the cost of
the ticket.
Q18_screensize_vs_cost * Q14_Miniplex Crosstabulation
Count
Q14_Miniplex
Total
Yes No
Q18_screensize_vs_cos
t
Yes 37 55 92
No 57 92 149
Cannot say 18 34 52
Total 112 181 293
(8.14 crosstab of screen size vs cost*miniplex awareness)
Now we do cross tabulation between the respondents who have disagreed to compromise with
the screen size with the knowledge about miniplex.
As mentioned earlier around 62.03% of the people are not aware of the concept of miniplex.
From the above cross tabulation we can clearly see that 92 out of 149 respondents, who have said
that they are not ready to compromise with screen size of the theatre for the low cost of ticket,
are actually not aware of the concept of miniplex. That is around 62% of the respondents who
have disagreed are not aware of miniplex at all. While only 38% of the respondents who are
aware of the concept of miniplex are not ready to compromise
The results might have initially signalled that people may not like miniplex because of its small
screen size. But speaking in favour of the miniplex we can definitely argue that since most of the
respondents have not experienced miniplex their result may be biased. Since in miniplex the
entertainment of the theatre still prevails; we can say that it has the potential and the preference
of the people can change in the favour of miniplex after experiencing it once.
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8.18 Size of audience vs Cost of ticket
Some people consider that it is fun to watch movies in a huge crowd as it builds a nice
atmosphere in the theatre. Also there are some people who go to the theatre only because they
like the kind of audience which turns up in the theatre.
The capacity of the miniplex won‘t be more than 100 seats which is far less than the regular
multiplex capacity of more than 200 seats. Thus researcher here wants to know whether people
would show their readiness in this situation given the incentive of low cost of the ticket.
(8.46 audiance vs cost professional)
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(8.47 audience vs cost for students)
From the above results it is pretty clear that that size and the nature of the audience is not an
important factor for the people. They are ready to come to the theatre regardless of its capacity. It
can also be concluded that people are ready to visit the small theatre given the benefit of the cost
of ticket.
An important reason behind this can be that for most of the people it does not matter who are the
other people in the theatre; but what matters is their companions with whom they have came to
see the movie. If people enjoy watching movies with their friends, relatives, spouse, family, etc.
than size of the theatre does not matter to them.
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8.19 New movie watching habit
The new movie is being launched on majority of every Friday and the box office reviews movie
promotion is carried out from a long time by the producers. There are people who like to watch
movies in the first day and first shows and there are people who wait for movie reviews and than
if the movie is good than only they go to the theatre. The visiting of a theatre also depends on the
?Favourites? that is some one will like to visit theatre if the movie is of their favourite star or
director. This question was asked to the respondent to know the habit of the people of
Chandkheda about watching a movie. The options given to them are as follows.
? See the movie in the first week
? Wait for reviews and then go to the theatre
? Visit the video library and get a DVD on rent
? If movie is very highly praised, then only visit the theatre
? If movie is moderately praised, then do not go to the theatre
The above options were given to the respondents and forced them to rank it comparatively on the
scale of 1 to 5, where 1 is the 1
st
task that they will do and the 5
th
is the least. The detailed
analysis of the all the options are given in the following histograms.
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8.19.1 See the movie in first week
(8.48 First week)
The histogram of watching a movie in the first week when it has been launched shows the mean
of 2.79 with 1.499 standard deviation. The maximum values of 77 and 76 are on the 1
st
and 2
nd
ranking. The normal distribution curve also shows the curve to be normally distributed and
overall ranking it has got is 2
nd
or 3
rd
preference.
8.19.2Wait and watch
The general mentality of the people is like they wait for the movie reviews and than visit theatre
to see a movie. The various sources of the movie reviews are news papers (i.e. Times of India
rating stars by public and box office), internet (i.e. Yahoo movies, Santa Banta.com,
Chakpak.com) and most frequently used method is word of mouth by asking their friends and
relatives.
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(8.49 wait and watch)
The histogram of wait for reviews and than watch movies has got the 1
st
preference among all
the options with the mean of 1.94 and standard deviation of 1.20. This shows that consumers are
very conscious about spending money on entertainment irrespective of their income level. The
curve of normal distribution also is positively skewed with maximum 1
st
rank given by 149
respondents.
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8.19.3 DVD rental
(8.50 DVD rental)
The above histogram of going to get a DVD on rent to see the movie at home has got the least
preference with 3.73 as mean and standard deviation of 1.21. The curve is also negatively
skewed and from that we can conclude that it has got 4
th
or 5
th
ranking preference among the
respondents.
8.19.4 Highly praised movies
The people has the tendency that they will spend their time and money only on the movies which
are worth watching it. The movies like ?3idots, Munnabhai Series, Golmaal, Dhoom etc. are
watched by the people in the theatres while if the movie is not much good than will not like to
visit a theatre instead they ignore it or watch it on a VCD/DVD.
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(8.51 Praised than visit)
The above histogram shows that it has got overall 2
nd
or 3
rd
preference to watch a movie. As
described earlier that the highly praised movies are the main source to increase the revenues in
the theatre. There for Bollywood and Hollywood should come up with super duper hit movies to
so that the theatres can sustain their business.
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8.19.5 Moderate praised movies
(8.52 Moderate praised than not visit)
The above histogram reveals that respondents has got the very least inclination towards the going
to the theatre if the movie is not much good and has got the 4
th
or 5
th
ranking in overall. The
reason of that could be because the people like to spend their time in a theatre though the movie
is moderate. People may feel it comfortable to visit a theatre instead of roaming around in the
city. The other reason could be because of the influence of the friends or relatives on the
respondents.
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Descriptive Statistics
N Mean
Std.
Deviation Skewness
Statistic Statistic Statistic Statistic Std. Error
First_week 296 2.7939 1.49851 .259 .142
Wait_and_watch 296 1.9358 1.20138 1.222 .142
DVD_rental 296 3.7331 1.21281 -.681 .142
Praised_than_visit 296 2.7770 1.13688 .154 .142
Moderate_praised_not_
visit
296 3.7601 1.11076 -.575 .142
Valid N (listwise) 296
(8.15 Descriptive statistics for new movie watching habit)
The descriptive statistics table concludes all the options result. From the above table we can see
that 1
st
rank is given to the Wait and Watch option by the respondents. And the First week first
show and Praised movie than only visit the theatre has got 2
nd
or 3
rd
ranking. There for the
conclusion is that we have to hope that more and more super duper hit movies will come up in
the industry.
8.20 Preference towards medium of advertisement
The advertisements are an integral part of the marketing program. The cost of the advertisements
is also very high and depends upon the medium of the same. There for selection of a medium
plays very important role in deciding upon an advertisement campaign. This question was asked
to the respondents to know their regular usage of medium to find show timings of any theatre.
The options given to the respondents are as follows.
? Newspapers
? Internet
? By calling to the theatre
? By calling to the Helpline Services
? By visiting theatre
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? By asking to friends or relatives
The respondents were asked to rank all the options on a scale of 1 to 6, where 1 is best preferred
and 6 is the least preferred medium to find out show timings of a theatre. The analysis of all the
options is given in the following histograms.
8.20.1 Newspapers
News papers are having very high reach and frequency among all the other medium of
advertisement. It builds trust among the people and is very effective. Newspapers are
conventional medium of advertisement. In any news paper there is a particular page and column
devoted especially for theatres advertisement and movie reviews. In Times of India page number
11 is devoted for the movie advertisement where advertisement comes by movies or by theatres.
(8.53 Newspaper)
The histogram for news papers reveals that the curve of normal distribution is positively skewed.
And the maximum number of responses that is 200 out of 300 respondents rate news papers as
the 1
st
preferred medium to find show timings of the theatre. The mean of news paper is 1.60
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with standard deviation of 1.07 that is the lowest among all the other options and hence it has got
overall 1
st
ranking in terms of advertisement.
8.20.2 I nternet
The internet is a pool of information nova days and people can find any kind of information by
googling on the internet. To find any kind of information people use internet as user friendly
medium. Increasing the use of internet has lead to internet marketing by using a website of the
company itself or giving a contract of online ticket booking or show timings to the portals like
Bookmyticket.com.
(8.54 Internet)
The histogram of the in internet as a medium of advertising has got a mean of 3.49 with standard
deviation of 1.795. The curve of normal distribution seems to be symmetrically distributed. The
response for this medium has got the mixed response for the ranking. Looking from the overall
response and mean the internet has got the 2
nd
preference of medium to find information about
show timings.
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8.20.3 Calling to the theatre
(8.55 Calling to the theatre)
The histogram of calling to the theatre to get the information about show timings has got the
mean of 3.59 with the standard deviation of 1.422. The normal distribution curve is also
symmetrically distributed. Out of the 300 respondents maximum responses has been found on
the 3, 4 and 5 ranking. Overall the respondents have given 3
rd
or 4
th
ranking as the preference.
8.20.4 Calling to help line services
The usage of help line services are increasing day by day. The consumers call on a number and
ask about the various products and services. The major services of help line are given by Kem
Cho, Just Dial etc. This option was given to the respondents to know the importance of the
services of the help lines given by the respondents and decide about the marketing of the same.
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(8.56 Calling helps line)
The histogram of help line services reveals that the respondents have not given any inclination
towards the usage of the services. The high ranking is given on 5 and 6 ranks. The mean turn out
to be 4.66 that is the highest among all the options. There for we can conclude that it has got 6
th
rank in overall rankings.
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8.20.5 Visit of a theatre to know timings
(8.57 Visit the theatre)
The histogram for visit of a theatre to know show timings reveals that it has got second least
preference that is 5
th
preference to know about show timings. The reason for the same could be
because of waste of time and money resources to know about the information as the other
medium like news papers and internet could be very cheap.
8.20.6 Word of mouth
The decision of the people majority of the time is being influenced by their friends and relatives.
Before deciding to go for a movie in the theatre, people ask their friends and relatives about the
movie as well as theatre. After getting the reviews from them they decide to go for movies. This
option was given to the respondents to know about the importance of the word of mouth.
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(8.58 word of mouth)
The histogram for asking the friends and relatives about the show timings has got the 3
rd
or 4
th
ranking. The respondents gave it a moderate preferred option among all the alternatives. The
reason could be they might not ask about the show timings to their friends and relatives. Instead
they prefer to get it from the other sources.
Descriptive Statistics
N Mean
Std.
Deviation Skewness
Statistic Statistic Statistic Statistic Std. Error
Newspaper 300 1.5967 1.06980 2.230 .141
Internet 300 3.4867 1.79459 .197 .141
Calling_theatre 300 3.5933 1.42175 -.071 .141
Calling_helpline 300 4.6600 1.22586 -.676 .141
Visiting_theatre 300 4.0233 1.40572 -.260 .141
Friends_relatives 300 3.6400 1.54868 .084 .141
Valid N
(listwise)
300
(8.16 Descriptive statistics for preference towards ad medium)
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8.21 Online ticket booking
(8.59 Online ticket booking)
The main purpose of asking this question was to find out whether to provide online booking
facility to the people or not. Here we observe that around 67% of the people have never used this
service and the remaining 33% consist of mixture of people who always use it & who use it
occasionally.
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8.22.1 Demographics of respondents-Age diversity
(8.60 age)
Here the majority of the respondents were of the age group of 21 to 40 years. This augurs well
for the researcher as this group of population constitutes major target group. Since most of the
movies are targeted towards this age group; this age group normally brings most of the business
for the movie theatres.
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8.22.2 Income level diversity
(8.61 Income level diversity)
Here we can clearly see that most of the respondents middle – class income group. This group is
the major target segment for the miniplex theatre. Since middle – class income group consumers
are very price conscious low prices for movies in miniplex has a potential to attract a lot of
consumers from that group.
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8.22.3 Gender diversity
(8.62 Gender diversity)
Out of 300 respondents 194 respondents were male & 106 respondents were female i.e. around
64.67% of the respondents are male and the rest 35.33% are female.
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8.23 Hypothesis testing
8.23.1 Hypothesis 1
Ho: Spending on theatres is not dependent on the income level of the consumers
H
1
: Spending on theatre is dependent on the income level of the consumers
Solution:-
In order to find out whether the expenses made by an individual is dependent upon its monthly
family income or not; we will do the cross – tabulation between expenses of an individual and
their monthly family income and then we will apply Chi – Square test.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Q8_expnse_theater *
Monthly_Family_Incom
e
269 89.7% 31 10.3% 300 100.0%
(8.17 Number of valid cases for hypotheses 1)
Here we observe that only 269 respondents out of 300 have responded to the query of both their
monthly family income & expenses in theatre. So now we do Cross – tabulation of those 269
respondents.
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Q8_expnse_theater * Monthly_Family_Income Crosstabulation
Count
Monthly_Family_Income
Total
less than
15,000
15,000 to
30,000
30,000 to
45,000 above 45,000
Q8_expnse_theater Less than 300 45 47 20 15 127
300-600 21 35 28 26 110
600-900 1 5 4 6 16
above 900 4 4 3 5 16
Total 71 91 55 52 269
(8.18 Crosstabs of expense on theatre*income level)
Chi-Square Tests
Value df
Asymp. Sig.
(2-sided)
Pearson Chi-Square 21.120
a
9 .012
Likelihood Ratio 21.873 9 .009
Linear-by-Linear
Association
13.850 1 .000
N of Valid Cases 269
a. 6 cells (37.5%) have expected count less than 5. The
minimum expected count is 3.09.
(8.19 Chi-square table)
Here at 5% level of significance & 9 degrees of freedom the tabulated value of Chi – Square is
16.919.But here we are getting Chi – Square calculated value as 21.120.
Therefore, Calculated > Tabulated
So, Ho rejected
Implies H
1
accepted.
Thus, Spending on theatre is dependent on the income level of the consumers.
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8.24 Hypothesis 2
Ho: There exists positive correlation between family income and frequency
H
1
: There does not exist positive correlation between family income and frequency
Solution:-
In order to find out whether there exists any correlation between frequency and monthly family
income first do cross – tabulation between frequency & monthly family income and then apply
Pearson‘s R correlation test.
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
Q8_freqcy_Theater *
Monthly_Family_Incom
e
265 88.3% 35 11.7% 300 100.0%
(8.20 Number of valid cases for hypotheses 2)
Here we observe that out of 300 respondents only 265 respondents have responded to both the
query of frequency of visiting theatre & family monthly income. So now we do cross –
tabulation between them.
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Q8_freqcy_Theater * Monthly_Family_Income Crosstabulation
Count
Monthly_Family_Income
Total
less than
15,000
15,000 to
30,000
30,000 to
45,000
above
45,000
Q8_freqcy_Thea
ter
Once in a week 27 25 16 15 83
Twice in a month 17 40 19 19 95
Monthly 16 13 9 5 43
Once/twice in six
month
6 10 5 6 27
Once/twice in a year 2 3 2 3 10
Every new movie
release
2 0 1 4 7
Total 70 91 52 52 265
(8.21 cross table of frequency of theatre*family income)
Symmetric Measures
Value
Asymp. Std.
Error
a
Approx. T
b
Approx.
Sig.
Interval by
Interval
Pearson's R .081 .067 1.314 .190
c
Ordinal by
Ordinal
Spearman
Correlation
.053 .065 .864 .388
c
N of Valid Cases 265
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
(8.22 Correlation table)
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We needed a value greater than 0 in order to prove that there exists a positive correlation
between two variables or not.
Here we observe that Pearson‘s R value is .081
Therefore, Ho is accepted
Thus, there exists a positive correlation between family income & frequency of visiting theatre.
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9.1 Competitive Factors
Our miniplex has got a lot of direct competition and indirect competition. It has got direct
competition from various multiplexes which are located in different parts of the city & the
people of Chandkheda and its surrounding localities are quite used to visiting those places. It has
got indirect competition from other modes of watching movies like VCD/DVD purchases,
DVD/VCD rentals, video libraries like BigFlix, downloading movie via internet, etc. Also
adding to all these factors it has also got competition from other sources like sports as a mode of
entertainment.
9.2 Current Business Focus
Our miniplex in this service – dependent business is to provide the highest quality service, at the
fairest price, to the largest percentage to the target market population as possible. This will foster
a repeat customer base.
9.3 Advantages we will have over competitors
9.3.1 Price
We are already starting off our business venture with affordable pricing strategy. This strategy is
specifically kept in order to attract masses. If a competitor enters our locality we will still have
price advantage because of the cost of setting up a miniplex is far less as compared to multiplex.
In turbulent times also we will incur far less loss as compared to multiplex owners. It will
provide 100% multiplex feel at 50% lower costs; this will help us to achieve economies to scale.
Since we will be able to attain our breakeven far earlier than a multiplex would; we can then
compete more fiercely with other players of the industry. Our whole infrastructure planning &
pricing is planned in such a way that it will provide best possible service for the price charged.
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9.3.2 Performance
Keeping in line with our business objective to provide the highest quality service possible at an
affordable price, we have decided to purchase the most technologically advanced equipments
available. The technologically advanced equipment will provide us with qualitative edge over
other players in the industry.
All this factors will help us in achieving good business till the time we face competition from
other players as well during competitive wars with other players.
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10.1 Background
The principal owners will be the full – time managers. Both of them have keen interest towards
entertainment industry and hence taken an initiative to open such miniplex theatre. Moreover
they are very practical and knowledgeable; having sound knowledge of their respective domains
and post graduation in Marketing to add to it.
10.2 Responsibilities
One manager will focus on daily operations, including employee hiring, building maintenance,
property maintenance, and equipment maintenance, employee pay and benefits. The other
manager will focus on marketing, advertising, and community relations, taxes, payables,
receivables. Other employees of our group will provide support to the owners with regard to their
specific area of expertise.
10.3 Compensation For Owners
Each owner will receive a salary of Rs. 15,000 per month.
10.4 Proposed Employees Hiring
We plan to hire total 8 employees. Their summary is as follows:-
Particulars No. of People
Security Personnel 2
Ticket Desk
Personnel
2
Movie Projector
Staff
1
Canteen Staff 1
Sweeper 1
Total 8
(10.1 Proposed employee hiring)
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10.5 Skilled Versus Unskilled
No special skills are required for our operational staff. Ticket desk personnel must possess basic
mathematical skills, be able to operate a cash register, and diplomatically interact with the
general public.
10.6 Compensation For Employees
Our operational employees will get salary as per following structure:-
Particulars No. of People
Per Month Salary
(in Rs.)
Yearly salary (In
Rs.)
Security Personnel 2 5000 60,000
Ticket Desk
Personnel
2 7000 84,000
Movie Projector
Staff
1 3000 36,000
Canteen Staff 1 3000 36,000
Sweeper 1 2000 24,000
Total 8 20,000 2,40,000
(10.2 Compensation for employees)
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11.1 Strengths
? High ticket cost of the multiplexes is discouraging the movie viewers.
? The core strengths of our Miniplex project are :-
o Provides 100% Multiplex feel with 50% ticket cost
o Operational cost per seat is 60% lower.
? Key technical strengths of our Miniplex are :-
o E – cinema technology would be delivered via satellite
o Full high definition quality projection
o Reduction in distribution & logistics costs
o Control in piracy
? Payback period can be achieved much earlier as compared to multiplex projects
? Comparatively less loss during off season cricket season or during the period when a
good movie is not around.
11.2 Weakness
? Less capacity as compared to multiplex
? Less price of the ticket may led to the misconception of lower quality services
? People of higher income group may not prefer it as they may think that this miniplex is
meant only for lower income group people.
? The location of the miniplex is far away from the city
? It may not attract the audience from other part of the city because of the distance
? Chandkheda does not have any major shopping destinations in order to attract people
from other areas of the city.
11.3 Opportunities
? There is not a single theatre right now in Chandkheda and its surrounding localities like
Sabarmati, Adalaj, Zundal, etc.
? Chandkheda right now is considered as one of the hottest destinations from realty point of
view. As a result of which there is a lot of township projects who are just about to get
completed as well as a lot of other township projects which have started. These projects
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have a potential of accommodating lakhs of people. As a result of which we may find
huge rise in population of chandkheda. This would increase the target market segment for
our miniplex.
? The concept of miniplex is almost ideal for new ideas like :-
o Telecast of live matches
o New product launch
o Seminars
o Various films festivals
o Interactive educational platforms, etc.
11.4 Threats
? Big business houses with huge financial back up can start multiplex in the same or nearby
area of chandkheda.
? These business houses can also start a miniplex which resembles completely to our
concept.
? Since chandkheda is one of the hottest destination for properties there is potential of more
than one major players of movie exhibition industry opening up their business in the span
of a very few kilometres from our miniplex.
? Movie exhibition business suffers a lot during cricket season where cricket frenzy people
do not turn up at all.
? Uncertainity over entertainment tax.
? Piracy is a huge danger to the whole industry. Now adding to the agony people also these
days also have an option of downloading whole movie via internet free of cost.
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12.1 Financial Features
Required Capital
The major investment initially is of the interior, furniture, chairs, sound system and of projectors.
The chairs will cost around Rs. 4000-6000 each and total of 160 chairs are needed. The sound
system we have decided to install is the best quality sound system for the theatres. We have
decided to install JBL Company‘s Dolby Digital and Surround Sound system which will cost us
around 30L to 40L Rs.
Further the capital will be utilized for the interior decoration that includes the lightning in the
theatres and the sound proof wall material. We need to use grass wood, aluminium net, black
curtain to make the wall sound proof. The projector will cost us around 400000 to 500000 Rs
each. We also need to purchase two lenses for the projector and the best quality lens costs 40000
Rs each. The high configuration computers will require for showing a movie through satellite.
Requirement of an investment of Rs 8000000, we both would be investing Rs. 4000000 each.
We are not going to venture capitalist or issuing any loan at this moment.
12.2 Financial Arrangements
? Expected annual return for investor
The total investment of around Rs 8000000/- is require for this project and the investor can
expect an annual return of ____% which will achieve from the second year of the operation of
the business. This is calculated by dividing net profit by total investment. The net profit does not
include income tax as the industry has to pay only entertainment tax of net ticket collection.
? Number of investors
For this project there are two investors, each will invest 40, 00,000 Rs. We are not going to use
any loan or issuing any shares.
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? Financial projections
We assumed the useful life of the furniture and electric equipment will be of 10 years and the
straight line method of depreciation will be used. There for the depreciation will be 10%.
? Financial statement highlights
The financial figures presented in our pro forma statements are extremely encouraging in that it
is prepared by monthly, yearly and by various occupancy levels. We have used various
occupancy levels because market dynamics can vary.
It is important to note that in our presentation of the financial statements, we endeavoured to be
conservative in our revenue calculations and liberal in our expense calculations. This approach
was intentionally adopted to ensure that we maintained cautious, if not slightly pessimist
approach to the evaluation of our new venture______________ liability.
12.3 Financial data
? Start-Up Cost
We have calculated the initial start up costs to be Rs. 80, 86,000. This includes majority of the
fixed assets costs.
START UP EXPENSES
Legal 4000
Stationary 2000
Sign boards and advertisement 100000
Furniture & Interiors
Chairs 800000
Others 2000000
Sound system 3000000
Projectors 1000000
(Air Conditioners) 1000000
Computers 100000
Lenses 80000
TOTAL START UP EXPENSES 8086000
(12.1 Start-up expenses)
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? Sales and cost
The sales and cost of the show is calculated for daily, monthly, and yearly. The break up of 50%,
70% and 100% occupancy ratio is also calculated to understand the return pattern of various
market responses.
(12.2 Sales and cost projections)
100%
Occupancy
70%
Occupancy
50%
Occupancy
REVENUES(Monthly)
Seats( 2
screens) Rate Amount
Morning(7.30am-11.30am) 160 70 11200 7840 5600
Noon(11.45am-2.45pm) 160 70 11200 7840 5600
Matinee(3pm-6pm) 160 70 11200 7840 5600
Evening(6.15pm-9.15pm) 160 70 11200 7840 5600
Night(9.30pm-12.30pm) 160 70 11200 7840 5600
Total( Rs.Per Day) 56000 39200 28000
Days 30 30 30
Total( Rs. Per Month) 1680000 1176000 840000
DIRECT COST
Entertainment tax (20%) 336000 235200 168000
DISTRIBUTOR SHARE (50%) 672000 470400 336000
GROSS REVENUE 672000 470400 336000
Advertisement Revenue 150000 150000 150000
Other Revenues 20000 20000 20000
Food Court 240000 168000 120000
TOTAL
REVENUES(MONTHLY) 1082000 808400 626000
Month 12 12 12
REVENUES(YEARLY) 12984000 9700800 7512000
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? Profit & Loss Account
PROFIT AND LOSS ACCOUNT
PERTICULARS AMOUNT(50% occupancy) AMOUNT(70% occupancy)
Revenue(Ticket Collection) 10080000 14112000
Less: E Tax(20% of ticket
collection) 2016000 2822400
Gross Revenue 8064000 11289600
Advertisement 1800000 1800000
Other advertisement income 240000 240000
Food Court 1440000 2016000
Gross Total Revenue 11544000 15345600
Less: Direct Cost(50%) 4032000 5644800
Total Revenue 7512000 9700800
Expenses
Salary 600000 600000
Movie Screening 630000 630000
Electricity 1200000 1200000
Telephone 60000 60000
Administration Expenses 120000 120000
Rent 1950000 1950000
Advertisement Cost 400000 400000
Furniture Depriciation(10%) 280000 280000
Electric Equipment
Depriciation(10%) 518000 518000
Total Expenses 5758000 5758000
Net Revenue 1754000 3942800
Total investment 8086000 8086000
ROI(%) 21.69181301 48.76082117
Pay Back Period 4.610034208 2.050826824
(12.3 Profit and loss account)
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13.1 Cost of Ticket
After careful analysis of the region and market of the theatre‘s industry, we have decided our
prising strategy that we believe is the best competitive strategy that provides the feel of multiplex
at very economy prices. The prises are flat for all the shows and for all the seating arrangement.
In accordance with our prising strategy, the price of the ticket is Rs.70 for all the shows
irrespective of the timings of the shows. The reason of using this pricing structure is based on our
analysis of the research.
13.2 Profit Margins
Calculating the profit margin based upon the projected year-end financial figures is relatively
clear cut and yields the gross profit margin of 74.52% and net profit margin of 17.40% based
upon 50% occupancy ratio pessimistically. The profit margin is being calculated as gross/net
profit divided by sales.
13.3 Competitor’s Prices
Based on our analysis of the competitors we have found out one competitor that is City Gold
multiplex existing nearby Motera Stadium and around 3 to 4 Km away from our location. The
prices of the City Gold are ranges between Rs.100 – 150. Our concept of Miniplex is to provide
feel of Mutiplex with economy prices therefore we are sure about our success.
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14.1 Response
Since our miniplex is based on completely new & first of its kind for the audience of
Chandkheda and its surrounding localities, we need to take care that we do not flop. Here there
are full chances that the people may not actually respond in the way they responded in the
survey. Audience here may react in a completely different way when miniplex is actually
opened.
14.2 Sales Projections Not Attained
There are chances where we are not able to attain our sales projections. This poses a great threat
as the future strategy would have to be changed and things could go worse. The bad response
from the audience can lead to great losses.
14.3 Competitive Price Cutting By Giant’s Entry
Since we do not have any direct competition in Chandkheda and its surrounding localities, we
are semi – insulated from price cutting schemes. Also adding to it we are already entering in the
industry with an affordable pricing strategy. However, we realize we do not operate in vacuum,
and there are full chances of Big Giants entering the segment if they see an opportunity. In light
of this we have developed our whole structure; right from pricing, infrastructure, interiors,
comfort, etc. in such a way that the new entrants will find stiff competition from us in order to
penetrate in the market. We have also highlighted the best qualities of our theatre and built our
own pricing scale, which we believe fairly balances quality and price. Even if a competitor enters
in our locality than since we are the early movers, we are bound to get the advantage of
economies of scale earlier than other late entrants.
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14.4 Cyclical Fluctuations
Movie exhibition industry is not immune to cyclical fluctuations. Peak periods are seen when
good movies of big superstars are lined up release one after another. Off-peak period is observed
especially when no big movies are releasing. Off – peak periods sometimes get worse when they
are coupled with sports season like IPL or during the period when most of students are having
their examinations. A lot of time during this period the theatre has to cancel the shows due to
lack of footfalls.
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15.1 Future Plan
If our miniplex is successful then following actions can be taken:
? We are already having 6500 sq. Ft of space at our location, which can be used to extend
one more screen at the same place.
? We can start our branches in different parts of the cities.
? We can start our ventures in other cities, especially in small cities.
? We can also start giving our franchisee
? We can also provide for various options like telecast of live matches, organizing various
small film festivals on special occasions.
? We can do collaboration with various universities in order to provide various interactive
education platform
? We can also devote one screen especially for corporate for their business meetings and
gathering or training of the employees
15.2 Exit Strategy
In case of failure of our project e will have following options:
? Since we are already having rented space it can be returned back to the owner.
? In case of our other infrastructure are concerned (e.g. chairs, projectors, sound system,
Air conditioners, etc.); we would like to sell it off and recover as much cost as possible.
? Whole infrastructure can be handed over to any other player aspiring to enter this
industry or any major player who already exists in this industry.
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? It is feasible to start a Miniplex in Chandkheda area because only one player exists in that
area and the investment required is also very low as compared to multiplex.
? The awareness of Mimiplex concept is very less as only 38% respondents are aware
about the Miniplex.
? The initial capital requirement is of Rs. 80,86,000 and the yearly net profit pessimistically
can be Rs. 25,52,000. The pay back period turns out to be around 4.6 years.
? As the respondents are not aware about the Miniplex concept, the response about liking
of it is turned out to mixed. Out of 300 respondents, 50% declined to compromise with
the screen size while 60% of the respondent like to compromise with the number of
audience.
? 28% respondents visit theatre once in a week and 33% respondents visit theatre
fortnightly.
? 43% of the respondents spend less than 300 rs and 37% of the respondents spend between
300 to 600 rs on then theatres.
? The most visited theatre by the respondents is, Wide Angle, followed by Fun Republic
and City Gold respectively. The reason for visiting those theatres is its high sound and
video quality, comfortable seats and affordable cost.
? Apart from movies 35% respondents would like to visit theatre for various film festivals
and 28% would like to watch live cricket matches.
? News papers have got the first preference that respondents will use to know about the
show timings of the theatres followed by internet search.
? The amount spent by the respondent is on theatre is not dependent on the monthly family
income of the consumer but the frequency is dependent on their monthly family income.
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The potential of Chandkheda for the movie exhibition business can be safely termed as
unexploited. There is only one theatre near Chandkheda, which is about 3 – 4 kms. away and that
too with premium pricing strategy; as a result of which it is not working very well. Audience of
Chandkheda and its surrounding localities are actually in need of a theatre which provides them
with quality movie viewing experience and that too at an affordable cost. The population of
Chandkheda and its surrounding localities is increasing day by day with a lot of residential
projects coming up as well as a number of projects which are about to get completed. Since these
projects have the potential to accommodate lacs of people, in the near future we will see a huge
rise in the target segment for our miniplex.
The concept of miniplex is very new and a lot of people are not aware of this concept which
showed up in our findings. When it comes to watching movie in a theatre there are some basic
elements like screen size, sound quality, etc. with which audience are not ready to compromise.
But the strong point of a miniplex is that audience still gets the feel of watching a movie in a big
screen multiplex. The only difference between multiplex and miniplex is the screen size and the
capacity. Since not a lot of people are aware of this concept there lies some serious potential to
build the preference of the consumers towards miniplex. Miniplex is an ideal solution for the
cost-sensitive audience. In our research we observed that cost of the ticket plays an important
role in deciding the frequency of an individual with respect to theatre. So, there are high chances
that the frequency of an individual for the theatre would increase with the introduction of
miniplex.
Financial projections showed that payback period from the miniplex would be around 4.6 years
(considering depreciation). These 4.6 years is far less as compared to the normal multiplex
theatre which invests crores of rupees and waits for a long time to achieve break – even.
Thus, we can safely conclude that it is feasible to open a miniplex in the area of Chandkheda.
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Scribd-free i-paper. Movie exhibition industry report (online).Retrived on March 10, 2010, from
http://www.scribd.com/movie-exhibition.html
Scribd-free i-paper. Sound Music Theatre (online).Retrived on March 10, 2010, from
http://www.scribd.com/search?q=theatre+industry+in+india&cat=redesign&sa.x=0&sa.y=0
Scribd-free i-paper. Multiplex Theatres Report 2009 (online).Retrived on March 10, 2010, from
http://www.scribd.com/search?q=multiplex+theatres+in+India&cat=redesign&sa.x=0&sa.y=0
K Sera Sera website. About Company .Retrieved on March 10, 2010 from
http://www.miniplex.co.in/about.html
K Sera Sera website. E-brochure of Company .Retrieved on March 10, 2010 from
http://www.miniplex.co.in/ebrochure.html
Planet Bollywood Web site. Article on Miniplex in Ahmedabad. Retrieved on March 10, 2010
from http://www.planetbollywood.com/displayArticle.php?id=n012610062607
Times of India website, Launch of India’s first Miniplex in Ahmedabad. Retrieved on March 10,
2010 from http://www.timesofindia.indiatimes.com/miniplex.asp
Balaji Agora Mall. Brochure for 2009. Ahmedabad:
Rechard l. Levin & Devid S. Rubin. Statistics for Management 7
th
edition. New Delhi: Prentice-
Hall of India Pvt.Ltd.
Naresh K. Malhotra. Marketing Research 4
th
edition. (2005) New Delhi: Pearson Education.
Luck and Rubin. Marketing Research 3
rd
edition. (2006) New Delhi: Pearson Education.
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Questionnaire
Dear Sir / Madam,
We are students of M.B.A. and conducting a survey for academic purpose which is part of our
curriculum. Your views about the questions asked are welcomed and of great importance to
Entertainment industry. I here by assure that details provided by you will be very much
confidential.
1. Which type of movies do you like? (Select multiple options if required)
? Action
? Love Stories
? Thriller
? Horror
? Documentary
? Reality based
? None of the above
2. Which cable TV connection do you have? (Select any one)
? Local cable
? DTH services ( i.e. Tata sky, Dish TV)
3. If DTH, than do you use the ?Movie on Demand? option in your DTH connection by
paying some amount for a movie? (Select any one)
? Yes
? No
? Sometimes
4. Do you have a computer?
? Yes
? No
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5. Do you have an internet connection?
? Yes
? No
6. If yes, then do you like to download movies from the internet?
? Yes, I download regularly
? Yes, but only if the movie is average
? No, I don‘t download at all
? No, it is time consuming
? No, I like to watch it in a theatre
7. Are you a member of any video library like Bigflix, Moserbear?
? Yes, If yes, then mention the name______________
? No
8. Please tick mark the appropriate mode(s) of watching movies which you use & also mention the
approximate monthly expense on each of them. Also mention the frequency of each of the
selected options as per the numbers given below. (Select multiple options if required)
(# 1= Once in a week, 2=Twice in a month, 3=Monthly, 4=Once or Twice in six month,
5=Once or Twice in a year, 6=I go for every new movie release)
Mode of Watching Movies Yes/No
Monthly
Expense Frequency#
Theatre
Purchasing VCDs/DVDs
VCD/DVD Rentals
Ordering movies through DTH(i.e. Tata Sky, Dish
TV) services*
Home on TV channels
(* In case you are using DTH service at home)
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9. Generally, with whom would you like to go for a movie to a theatre? (Select multiple options if
required)
? Family
? Friends
? Relatives
? Spouse
? Alone
10. Please select any three theatres out of the following which you have visited the most and also
rank those from 1 to 3, where 1 is the highest & 3 is the lowest visited.
Name of Theatres Rank
? K Sera Sera
? R World
? CineMax
? Adlabs
? Wide Angle
? Red Carpet
? Devi
? City Pulse
? City Gold
? Fun Republic
? Others (please specify)________________________
11. What is the major reason for going to the above selected theatre? Rank all the alternatives below
in the scale of 1 to 8, where 1 is the most important & 8 is the least important.
? High sound and video quality ______
? Comfortable sitting arrangement ______
? Affordable Cost ______
? Games ______
? Food Court ______
? Shopping facility is also available ______
? Because its near to my residence ______
? I like the audience coming to that theatre ______
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12. From the following options, rate the factors which as per you, are most important to consider
while visiting a theatre
13. Which show time you generally prefer to go for movies? Tick mark option(s) and also mark the
reason for going to that show. (Select multiple options if required)
Option Low cost Convenient Time
? Morning( Between 8 am to 12 pm)
? Noon ( Between 12 pm to 3 pm)
? Matinee ( Between 3 pm to 6 pm)
? Evening ( Between 6 pm to 9 pm)
? Night ( Between 9 pm till midnight)
14. Do you know about ?Miniplex? theatre?
? Yes
? No
Factors
Extremely
Important Important Neutral Unimportant
Extremely
unimportant
Sound Quality
Screen Size
Comfortable Chairs
Lighting in the theatre
Personalized services (Snacks, Cold drinks
at your seat)
Shopping facility
Food court
Games Zone
Cost of ticket
Distance from home
Advance Ticket Booking
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15. How would you describe a Miniplex?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
________________________________
16. Out of the following, for which purpose would you like to visit a theatre, apart from movies?
(Select multiple options if required)
? Live matches
? New Product launch shows absolutely free and that offers some free gift
? Seminars
? Various film festivals or events (e.g. special movies on children‘s day, valentine‘s day, etc.)
17. Would you like to go for a movie if it is at morning time of 7 am & also offered at a lower price?
(between Rs. 40 to 50)
? Yes
? No
18. Would you like to compromise with the screen size of the theatre for the cost of the ticket? (e.g.
the screen size is smaller and price range is between Rs. 50-80)
? Yes
? No
? Cannot say
19. Would you like to compromise with the size of the audience for the cost of the ticket? (e.g. There
are only 70 seats instead of 150, which you normally see in a theatre)
? Yes
? No
? Cannot say
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20. A new movie has been launched today, what do you do out of the following? (Please rank all the
alternatives in the scale of 1 to 5, where 1 is the best attractive and 5 is the worst)
? See the movie in the first week ______
? Wait for reviews and then go to the theatre ______
? Visit the video library and get a DVD on rent ______
? If movie is very highly praised, then only visit the theatre ______
? If movie is moderately praised, then do not go to the theatre ______
21. From where do you find the information regarding the show timings? (Please rank all the
alternatives in the scale of 1 to 6, where 1 is the most suitable and 6 is the worst)
? Newspapers ______
? Internet ______
? By calling to the theatre ______
? By calling to the Helpline Services ______
? By visiting theatre ______
? By asking to friends or relatives ______
22. Do you use online ticket booking?
? Yes
? No
? Sometimes
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Personal Information:-
Gender: Male Female
Age (Years): Below 20 21 to 40
41 to 60 61 or above
Occupation: Businessman Having job Student House wife Retired
Self-employed (i.e. doctor, lawyer etc.)
Monthly Family Income: Less than 15000 15000 to 30000
30000 to 45000 More than 45000
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