Assignment Service Marketing and Customer Relationship Management MK0006 Fourth semester Two credits Set 1 (30 marks)

Answer all the questions and each question carries 10 marks 1. Explain the strategies influencing customer perceptions 2. Discuss the techniques of managing the demand and capacity in the service marketing 3. Case study

Pricing the movie service experience: The PVR way.

Priya village road show, popularly known as PVR is the pioneer in establishing the theater system in India. PVR started its operations in the year 1998 and redefined the way movie service provided in India. It is the first Indian company that corporatized the theater system. Till then theaters are owned by the individuals. PVR is the first media company to initiate the multiplex system in India. Multiplexes are the theaters built inside the shopping malls or commercial complexes. PVR knew that establishing multiplexes alone cannot help it to expand. Therefore it started an innovative idea of holding the theaters and screens. Pricing a movie ticket is a complex issue. PVR believed in providing high quality movie experience at an affordable price. But rising input cost like, wage, rent, electricity and others made PVR to rethink its business model. PVR restructured its business model and divided its services into PVR premier and PVR theater. The comfort and hospitality provided in these two formats vary. PVR Forum Mall Theater in Bangalore divided its theater into three divisions. They are; classic, Europa and gold class. The prices of the ticket of these three categories on

weekends are Rs 200, Rs350 and Rs 500 respectively for Hindi and English movies. The price per ticket for the Kannada movies varies as the company gets tax sops from the Karnataka government. It charges Rs 80 to Rs 150. The price of the ticket in the weekdays will vary in the classic and Europa sections to attract more number of consumers. The price of the gold class remains same. The company realized that numbers of movie goers in the morning are less. It reduced the price of classic and Europa to Rs 80 till 12 noon on weekdays where as gold class price remains as it is. The gold class price is having two components. Out of Rs 500 charged Rs 350 is considered as movie ticket price and Rs 150 is used to provide snacks to the consumers. PVR started all these permutations and combinations in pricing products because movie goers felt that ticket price is too high. PVR thought that this consumer perception will harm its revenue in the future as it wont get the volume. At this juncture the company reduced the ticket price. This has resulted in the lowering of the margins for the PVR limited. To rationalize this company started providing the food and beverages inside its lounge. These products are priced higher than the market price. To adapt this strategy company studied the market extensively and found that consumers who use the food and beverages inside the theaters are not price sensitive. For them it is a habit to have food and beverages to get the movie experience. This bundling helped the PVR to improve its bottom line.
Discussion questions: 1. What is the pricing strategy adopted by the PVR? 2. Does bundling the movie ticket and food and beverages help company to improve the image in the minds of consumer? Support your answer from the extracts of case let. 3. Suggest a business model that help PVR to improve its bottom line.

Assignment Service Marketing and Customer Relationship Management MK0006 Fourth semester Two credits Set 2 (30 marks)

Answer all the questions and each question carries 10 marks 1. Explain the strategies involved in marketing professional services. 2. How companies are maximizing the customer value through CRM? 3. Case study Aditya Birla retail limited is a flagship company of Aditya Birla group. This company manages the retail store business of the group under the brand name . More. Company began its journey from Pune in May 2007 and in course it started more than 100 retail stores. It acquired south India based retail giant Trinethra retail in the same year. By this acquisition, company is able to have direct control over 300 Fabmall (brand of Trinethra) stores and making it prominent player in the retail industry. After the acquisition Aditya Birla Retail management believed that the brand Fabmall and Trinethra are not reflecting proper image of the company. They started searching for the brand name that enhances the shopping experience for consumers and convey message about the store offerings. Company conducted a in depth marketing research to identify consumer views on shopping and merchandise they like. On the basis of research company started offering wide range of product categories including fruits and vegetables, staples, personal care, household general merchandising and dairy products. In the marketing research, consumer expressed that quality, affordability and convenience gets highest priority in getting retail experience. Prasad Kulkarni. Faculty, Sikkim Manipal University Bangalore This Case let is prepared in 2008. Company found that integration of the Fabmall and Trinethra are necessary to have single brand

that help company to have unified communication strategies. Hence company changed Fabmall and Trinethra name to .more. The name reflects companys commitment to offer consumers more fulfilling retail experience. .more also means providing higher satisfaction to consumer. .more provides the solution to the shopping needs of the Indian housewife who wants a modern and convenient retail store with an attractive and a consistent range of products. .more assures consumers the best quality products at the best market price. .more started storing its own brands in the retail supermarkets. These products follow stringent quality norms and are available in attractive packaging. Company is also improving its supply chain network. It is building direct linkages with the farmers to get uninterrupted and quality supply of fruits and vegetables. The stores have been designed by Fitch, the leading international retail design firm. 1. Do you think that phasing out well known brands like Fabmall from market and replacing it by .more? Comment 2. Explain the private labeling strategy of Aditya Birla retail limited.