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THE INDIAN INSTITUTE OF PLANNING AND

MANAGEMENT
NEW DELHI

THESIS
Brand

Positioning Of PVR CINEMAS

Submitted To: -

Submitted By:-

Prof Sumanto Sharma

SANIYA MALIK
BATCH : PGP/ SPRING SUMMER

Thesis Guide: -

YEAR

PROF L. RAGHVAN IYER

SPECIALISATION: MARKETING

IIPM, New Delhi

ALUMINI ID : DS57 M257

: 2005-2007

ABSTRACT
OBJECTIVE OF THE RESEARCH :
Studying the rise of booming entertainment industry. Nowadays as we know that
entertainment industry has become an increasingly popular marketing communications
vehicle therefore we need to investigate if its actually beneficial to a firm and its brands.
Scrutinize the effect of using the TV celebrities in building brand awareness, brand
image, and corporate image and its use as an established communications instrument.
Evaluate the efficacy of both as a marketing communication tool. i.e. analyze the growth,
use and effectiveness of entertainment industry vis a vis the TV celebrities to market
products
Market orientation is one of the primary methods of advocating increase in sale whilst
maintaining customer satisfaction .Market orientation is a construct which places the
customer central to the operations of the firm and is designed to collect information to
understand the customer and so tailor the product-service offering to best meet their
needs. The primary objective of this thesis is to resolve the gaps between the external and
internal market orientation in an organization to optimize the branding strategy.
Research Methodology
The best place to start with is the customer itself. We will make an attempt to find what
do customers expect in PVR complexes for a complete family entertainment experience:
Market scope :
Study on cineplex market scope in NCR in next few years.
Competitors and others cineplexes in offering
Deciding the "win" factors for PVR
Offering free tickets in these stalls to customers giving good feedback .

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Customer Stalls : stalls at pvr cineplexes taking feedback from customers in intermissions
or before movies about what are their expectations.
Providing a "Family Experience"
Extra attractions in PVR's like bowling alleys, video games for kids
Getting best movies and customer feedback on which recent movie they wana see
External Study of competitors and what they are doing new and exclusive.
Scope of the Thesis Work
This research would mainly focus on the strategies adopted by PVR CINEMAS. The
internal and external market orientation would be studied .considering their widespread
use its imperative to study how effective they are as an instrument for effectively
conveying the communicating message and influencing the consumers to make required
purchase decisions.

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ACKNOWLEDGEMENT

My sincere thanks to Prof Raghavan, who helped me to undertake this study not only
through his inputs on theoretical and practical aspects, but also by guiding me properly
and thus facilitating the existing nature of the study.
I am grateful to Ms Manpreet Kaur and Prof Rekha, who are responsible for my interest
in this area largely as a result of their thought provoking lectures. I would further like to
thank Mr Vijay Boddu, Thesis Deptt, for giving me valuable inputs for the completion of
my thesis.
I would also take this opportunity to thank Dr M.K Chaudhary for giving us such a
rewarding experience in IIPM. My gratitude goes to the numerous people (friends and
fellow colleagues) who helped me in the completion of my report. Last but not least, I
would like to thank Prof Sumanto Sharma for giving me support and to my institute,
IIPM, New Delhi , all the faculty and my fellow post graduates, who have been a
constant source of encouragement.

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TABLE OF CONTENTS

ACKNOWLEDGEMENT.................................................Error! Bookmark not defined.


EXECUTIVE SUMMARY.................................................................................................1
INTRODUCTION...............................................................................................................2
LITERATURE REVIEW.....................................................................................................5
HISTORY OF PVR............................................................................................................21
VISION..............................................................................................................................26
CONSUMER BEHAVIOUR.............................................................................................28
Understanding Consumer behavior...............................................................................30
PROMOTIONAL strategy & Consumer behavior for PVR..........................................31
Creating satisfied customers..........................................................................................33
Consumer behavior is product person situation specific............................................34
Consumer lifestyle and consumer decisions..................................................................35
The Nature of consumption...........................................................................................35
PVR NEST.........................................................................................................................36
MARKET SEGMENTATION RESEARCH.....................................................................49
RESEARCH METHODOLGY.........................................................................................52
RECOMMENDATIONS...................................................................................................63
CONCLUSIONS...............................................................................................................73
BIBLIOGRAPHY..............................................................................................................74
ANNEXURE.....................................................................................................................75

EXECUTIVE SUMMARY

The thesis study is titled "BRAND POSITIONING OF PVR CINEMAS". The study
involves the exhaustive insight study as to what parameters make PVR cinemas a market
leader in the mind of the consumers.
The objective of the study as title suggests is to know the position of PVR CINEMAS
in the minds of the customers in NCR. To achieve the set objective, the study entailed a
survey of 50 respondents based on a convenience sampling. The survey was carried out at
different locations in New Delhi region. The questionnaire was based on a set of
parameters of Pull and Push strategy such as price, performance, brand image and
performance such as showroom looks and attitude towards the customers, which helped
to gather the consumer perception about PVR and the factors influencing people to visit
PVR often.
The results of the survey were then analyzed to gauge the consumer preferences. The
overall results indicated that though consumers considered PVR as a market leader in
NCR, there are competitors who are expanding so even PVR has to constantly provide
better service and open new theatres to be ahead of competition.

INTRODUCTION
A product's position is how potential buyers see the product. Positioning is expressed
relative to the position of competitors. The term was coined in 1969 by Al Ries and Jack
Trout ."Positioning" is a game people play in todays me-too market place" in the
publication Industrial Marketing. It was then expanded into their ground-breaking first
book, "Positioning: The Battle for Your Mind".
Positioning is something (perception) that happens in the minds of the target market. It is
the aggregate perception the market has of a particular company, product or service in
relation to their perceptions of the competitors in the same category. It will happen
whether or not a company's management is proactive, reactive or passive about the ongoing process of evolving a position. But a company can positively influence the
perceptions through enlightened strategic actions.
In marketing, positioning has come to mean the process by which marketers try to create
an image or identity in the minds of their target market for its product, brand, or
organization. It is the 'relative competitive comparison' their product occupies in a given
market as perceived by the target market.
Re-positioning involves changing the identity of a product, relative to the identity of
competing products, in the collective minds of the target market. De-positioning involves
attempting to change the identity of competing products, relative to the identity of your
own product, in the collective minds of the target market.

Product positioning process


1. Generally, the product positioning process involves:
2. Defining the market in which the product or brand will compete (who the relevant
buyers are)

3. Identifying the attributes (also called dimensions) that define the product 'space'
4. Collecting information from a sample of customers about their perceptions of
each product on the relevant attributes
5. Determine each product's share of mind
6. Determine each product's current location in the product space
7. Determine the target market's preferred combination of attributes (referred to as
an ideal vector)
8. Examine the fit between:
o

The position of your product

The position of the ideal vector

9. Position
The process is similar for positioning your company's services. Services, however, don't
have the physical attributes of products - that is, we can't feel them or touch them or show
nice product pictures. So you need to ask first your customers and then yourself, what
value do clients get from my services? How are they better off from doing business with
me? Also ask: is there a characteristic that makes my services different?
Write out the value customers derive and the attributes your services offer to create the
first draft of your positioning. Test it on people who don't really know what you do or
what you sell, watch their facial expressions and listen for their response. When they
want to know more because you've piqued their interest and started a conversation, you'll
know you're on the right track.

Positioning concepts
More generally, there are three types of positioning concepts:
1. Functional positions
o

Solve problems

Provide benefits to customers

Get favorable perception by investors (stock profile) and lenders

2. Symbolic positions
o

Self-image enhancement

Ego identification

Belongingness and social meaningfulness

Affective fulfillment

3. Experiential positions
o

Provide sensory stimulation

Provide cognitive stimulation .

LITERATURE REVIEW
BOOK - MARKETING
AUTHOR JAMES H MYERS
PUBLISHER Mc GRAW-HILL INTERNATIONAL EDITIONS
Modern marketings answer to the problem of selling parity products is what known as
POSITIONING. The basic idea behind positioning is that any product or service can
distinguish itself from others by claiming some unique position in the market. This
position does not need to be based on clearly superior overall performance or quality it
could be that one companys product has a minor feature or it does not represent a major
product difference.
Product could establish its own position in the market. This product would represent the
IMAGE of the product-what the product stands for, what it delivers especially well-as
seen through the eyes of the customer. An advertising executive observedTo succeed in our over-communicated society, a company must create a position in the
prospects mind. A position that takes into consideration not only its own strengths and
weaknesses, but those of its competitors as well. Advertising is entering an era where
strategy is king.
Positioning is basic selling concept used to motivate consumers to select a given product
over that of the competitor. The greater the number and strength of the competitive
brands ,the greater the need for positioning to foster distinction between a given product
and all others in the same product category.
The basic idea of positioning has recently been extended into a consideration that each
brand in a product category has an entire personality of its own. A company must make
every effort to find out what kind of personality profile each of its existing product or
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service lines has. It must also expand marketing efforts to create a distinct and favourable
personality for each product or service both existing and new.
FINDING A SUITABLE POSITIONThe basic idea of positioning is rather simple, identifying the most effective position for a
particular product or service is definitely not. The research director of one of the nations
largest advertising agencies has suggested five good ways of establishing a suitable
position.
1. Preempt an important consumer need
2. Identify marketing requirements to be served by the product
3. Capitalize on the products competitive advantage
4. Convert a products weakness or liability into an asset
5. Expand or change product usage patterns
Any one of the combination of these approaches might be used as the basis for
establishing a successful position for a particular product or service. Every advertisement
for a consumer product or service has the objective of either establishing or reinforcing
some position a company wishes to claim for its offering.
Marketing planners usually feel that its important to obtain marketing research in order
to understand consumers better and to measure their perceptions of all competing brands
in a given product category. This research usually helps in establishing strong positions
that have an impact over many years of time. And a good position can make the task of
the market planner much easier and the product line much more profitable.
POSITIONING MAPSIn the case of product positioning, a small group of marketing researchers have developed
several techniques that can measure peoples perceptions of competing brands in a

product category. These measurements can then be used to produce maps that show
peoples perception in a simple graphical manner. The resulting picture is known as a
perceptual map.
Products or brands that are close together on a positioning map are known as
COMPETITIVE sets of products- they compete more directly against one another than
against other products on the map. A map of this kind shows which attribute are likely to
be most important for positioning purposes.
A very important task for marketing planners is to identify the strong possible distinctive
position that can be justified by the performance of product or service itself. Positioning
maps are thus very helpful. Marketing oriented companies almost always undertake at
least some market research to find out what benefits people want most in a product or
service and what features of the companys product or brand they see as most distinctive.
This leads to a much better understanding of peoples perceptions and suggest where a
strong position might be found.

OBJECTIVESThe market planner should consider all important objectives at the same time, to evaluate
the trade offs.
(1) Identifying market opportunities.
(2) Selecting the market targets.
(3) Positioning the product.
(4) Establishing marketing objectives.

DEVELOPING MARKETING MIX1. What kinds of information are needed?


2. How much information is needed?
3. How accurate is the information received?
4. How much money should be spent to get the right information?

PVR LIMITED
Company profile
Overview
PVR is Indias largest Multiplex Cinema operator by number of screens. They established
the first Multiplex Cinema in India, PVR Anupam, in Saket, Delhi in 1997 and the largest
Multiplex Cinema in India, PVR Bangalore in 2004. As of July, 2006, their
geographically diverse cinema circuit in India consisted of 18 cinemas with a total of 70
screens spread over Delhi, Gurgaon, Noida, Faridabad, Mumbai, Bangalore, Hyderabad,
Lucknow and Indore.
The brand, PVR, is one of Indias most recognized film exhibition brands. Across all their
various cinemas, there were 8.78 million patrons for the twelve months ended March 31,
2006. PVR is the only film exhibition company in India to have had an international film
exhibition operator as a strategic investor. The company was incorporated in April 1995
pursuant to a joint venture agreement between Priya Exhibitors Private Limited and
Village Roadshow Limited, one of the largest non-U.S. cinema exhibition companies in
the world with more than 1,000 screens under operation. Village Roadshows
international experience enabled them to begin their film exhibition business operations
at PVR Saket, the first Multiplex Cinema in India, using international best practices.
In November 2002, as part of Village Roadshows planned divestment of its investments
in 18 countries, it sold its entire shareholding in the Company to Priya Exhibitors Private
Limited. In March 2003, the India Advantage Fund-I managed by ICICI Venture Funds
Management Company Limited, one of the largest private equity funds in India, invested
Rs. 380 million in our Company. PVR successfully completed an Initial Pubic Offering
(IPO) in March 2006 in which 77,00,000 equity shares were offered to the public

consisting of a fresh issue of 57,00,000 equity shares and an Offer for Sale of 20,00,000
equity shares by ICICI Venture Funds Management Company Limited. The issue price
per share was Rs.225.
They also have a film distribution business through a wholly-owned subsidiary, PVR
Pictures, which acquires and distributes Indian and international films. The strategy is to
continue to distribute Hindi films in the same territories where their own cinemas are
located, and to purchase the entire suite of distribution rights including the theatrical,
satellite/television and DVD rights for international films on an all India basis.
The other 100% subsidiary of the Company, M/s CR Retail Malls (India) Pvt Ltd., will
implement the seven screen Multiplex Project at The Phoenix Mills compound, Lower
Parel, Mumbai, a prime retail and entertainment destination in Mumbai.
The unconsolidated total income was Rs. 1078.4 million in fiscal 2006. Box office
revenue (sale of tickets of films, less state entertainment taxes and plus revenue share of
sale of tickets of films) and food and beverages revenue (income from sales of food and
beverages, less sales tax/VAT), represented approximately 68.4% and 20.6% of PVRs
unconsolidated net operating income during the twelve month ended March 31, 2006
respectively. Advertisement revenue, and royalty income (pouring rights) constituted
8.2% and 1.8% respectively of the total income.

ANNOUNCEMENTS

PVR Cinemas launched its 70th screen... 2 screen multiplex at Sahara Mall
designed to bedazzle gurgaon with unmatched PVR experience.

PVR Opens 6 screen multiplex in Mulund, Mumbai

PVR Ltd: FY06 net up by 46%, Revenues up by 52%

PVR LTD. announces Interim divdend of 10% on the equity share capital for the
year 2005-06

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PVR Juhu commences operation

PVR opens in Lucknow

Blow Away Movie Ticket Blues With Quiktixthru.

PVR eyes content from across the globe... PVR Pictures acquires 15 films for
distribution in the Indian subcontinent.

PVR Rivoli commences operations

PVR opens 5 screen multiplex at Hyderabad

PVR signs five projects in State of Punjab, Govt. of Haryana reduces


Entertainment Tax Duty

Film Exhibition Business


Multiplexes typically feature auditoriums ranging from 150 to 450 seats each. The
cinemas appeal to a diverse group of patrons because a wide selection of films and
convenient show times is offered. In addition, the cinemas feature modern amenities such
as wall-to-wall screens, state-of-the-art audio and projection technology, such as three
way digital Dolby sound systems and Xenon projection systems, multi-station food and
beverage stands, computerized ticketing systems, stadium seating and movie-themed
interiors and exteriors.
There is a variation in cinema seating capacities within the same Multiplex, to enable
them to exhibit films on a more cost effective basis for a longer period of time by shifting
films to smaller cinemas to meet changing attendance levels. In addition, significant
operating efficiencies is achieved by having a common box office, concessions,
projection, lobby and wash room facilities, which enables in spreading some of the costs,
such as payroll, advertising and rent, over a higher revenue base. The movie show times
are staggered to reduce staffing requirements and lobby congestion and to provide more
desirable traffic flow patterns. In addition, PVR believes that operating a business
consisting primarily of Multiplex Cinemas enhances their ability to attract patrons.
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PVR designs and build cinemas to suit different markets and has a range of cinema styles
that is implemented as appropriate. They introduced Cinema Europa and Gold Class
cinemas to certain Multiplexes. Cinema Europa offers a higher level of comfort than their
regular cinemas (which is referred to as "Classic" cinemas). Gold Class auditoriums are
custom built luxury cinemas with plush reclining seats, double armrests and ample
legroom. Gold Class cinema patrons are also offered a food and beverages service in their
Gold Class lounges.
Currently, they do not own any rights in the immovable property in which their cinemas
are located. They entered into long-term operation and management agreements or lease
agreements, pursuant to which the developer has delivered to us a building shell with or
without certain services such as air-conditioning and power back up and the company
carried out the rest of the work, including civil and interiors, sound and projection
equipment, electrical, plumbing, fire fighting and detection systems, furniture, fixtures
and equipment, concessions and equipment, IT related infrastructure, signs and operating
supplies.

Existing Cinemas
Currently operated or managed cinemas are as follows:
Cinema Location
Anupam Delhi

Screens Seats

Opening date

41,000

Jun-97

Priya Delhi

1,944

Jan-00

Naraina Delhi

4,830

Aug-01

Vikaspuri Delhi

3,921

Nov-01

71,310

May-03

Crown Plaza Faridabad

2,504

May-04

Plaza Delhi

1,300

May-04

1,12,011

Nov-04

3,726

Mar-05

Metropolitan Mall Gurgaon

Forum Mall, Bangalore Karnataka


EDM Uttar Pradesh

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Central Mall, Hyderabad A.P,

3,926

Feb-06

Rivoli Delhi

1,329

Feb-06

Treasure Island, Indore M.P

51,140

Apr-06

Sahara Mall, Lucknow U.P

4,874

Apr-06

Juhu Mumbai

2,580

Apr-06

Nirmal Lifestyle, Mulund Mumbai

61,750

Jun-06

2,528

Jul-06

81,821

Dec-05

3,776

Nov-04

Sahara Mall Gurgaon


Franchisee
Spice Noida
SRS Mall Faridabad
Total

70,17,270

# The Hyderabad multiplex has 5 screens with 1371 seats. Currently, 3 screens with 926
seats are operational.
## The Juhu multiplex has 5 screens with 1260 seats. Currently, 2 screens with 580 seats
are operational.
PVR Anupam
PVR Anupam, which opened in June 1997, was the first Multiplex in India and was an
instant success on account of its strategic location and first mover advantage. It has fourscreens with 1,000 seats. It is located in Saket, an up market locality of South Delhi. The
Multiplex is located in an open air shopping area, which has become a prime leisure
destination in Delhi and has leading outlets like McDonalds, Pizza Hut, Barista, Nirulas,
Subway, Moti Mahal, Planet M, Lee and Reebok.
PVR Priya
PVR Priya is a premier single-screen cinema in South Delhi. Prior to January 2000, this
cinema was operated by the Promoters in their personal capacity. It is a single-screen
cinema with 944 seats. It is located in Vasant Vihar, an up market locality of South Delhi.
The Multiplex is located in the Basant Lok shopping and commercial complex, a prime

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leisure destination in Delhi, which has leading outlets including McDonalds, Pizza Hut,
TGIF and Barista. The company has positioned PVR Priya as blockbuster cinema and it
is believed that it is a preferred cinema for distributors and patrons for first run Hindi and
Hollywood blockbuster movies.
PVR Naraina
PVR Naraina opened in August 2001 after it was converted from an old single-screen
cinema into a Multiplex. It has four screens with 830 seats. It is located in Naraina, which
is adjacent to densely populated catchment area that includes Naraina, Rajouri Garden
and Naraina Vihar, all of which are upper class suburbs in West Delhi.
PVR Vikaspuri
PVR Vikaspuri opened in November 2001. It has three screens with 921 seats. PVR
Vikaspuri is a part of an 80,000 square foot mall. The Multiplex caters to the residential
colony of Vikaspuri, which is a large and thickly populated residential area in Delhi. By
the time the company took over this property, the developer had spent considerable
amounts on the multiplex, which resulted in substantial capital expenditure savings for
us.
PVR Gurgaon at Metropolitan Mall
PVR Guragaon was opened in May 2003. It has seven screens and 1,310 seats including
two Cinema Europa auditoriums. It is located in the Metropolitan Mall, a prime lifestyle,
food, retail and shopping space of over 300,000 square feet in Gurgaon. This Multiplex
caters to Guragaon, an up market suburb in the National Capital Region of Delhi. Over
the weekends it attracts many customers from Delhi as well.
PVR Plaza
PVR Plaza opened in May 2004. It is a single-screen heritage cinema with 300 seats. It is
located in the central business and retail district of Delhi, Connaught Place. Plaza was
one of Delhi's oldest and most popular cinema halls, and was renovated and refurbished

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into a smaller 300 seat cinema, with a food court on the ground floor. The cinema caters
to the transient population in Connaught Place.
PVR Faridabad
PVR Faridabad opened in May 2004. It has two screens with 504 seats. It was the first
Multiplex in the Faridabad catchment area, and is located in the Ansal Plaza Mall on the
Delhi-Agra highway.
PVR Bangalore
PVR Bangalore was opened in November 2004. It has 11 screens and 2,011 seats, and is
Indias largest Multiplex Cinema. (Source: FICCI - PWC Report, 2005). The cinema
comprises seven Classic screens with a total of 1,581 seats, two Cinema Europa screens
with 366 seats in the two Gold Class screens with 32 seats each, spread over an area of
100,000 square feet. This Multiplex plays over 50 shows every day, with screenings
starting approximately every 15 minutes. This Multiplex plays movies in six languages:
English; Hindi; Kannada; Tamil; Telugu; and Malyalam, catering to people with varied
taste and socio-cultural background. The cinema is located in the Forum Mall,
Koramangala, and is a part of 350,000 square foot shopping mall spread over four levels.
It is the prime retail and leisure destination in Bangalore, and is well located in
Koramangala, with customers from across the city.
PVR EDM
PVR EDM opened on March 31, 2005. It has three screens with 720 seats. It is located in
the East Delhi Mall in Kaushambi, on the outskirts of Delhi in Uttar Pradesh. This
Multiplex services the catchment area of East Delhi and Kaushambhi (Uttar Pradesh),
including Vaishali, Gaziabad, Sahibadbad and Mohannagar. PVR EDM is exempt from
paying state entertainment taxes until March 30, 2010 or until the exemption amount
reaches Rs. 95.33 million, whichever is earlier. PVR and the developer/cinema owner
share box office revenues of this cinema, and the companys share is reflected as Income
from revenue sharing. PVR is entitled to the entire food and beverage revenue and
advertisement revenue from this Multiplex.

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PVR SRS
PVR SRS opened in November 2004. It has three screens with 776 seats. It is the first
Multiplex of the Company under the franchisee model. It is located in a shopping centre
in Faridabad, which has food and beverages and retail outlets.
PVR Spice
PVR Spice opened in December 2005. It has eight screens with 1821 seats. It is the
second Multiplex of the Company under the franchisee model. It is located in a shopping
centre in Noida, which has food and beverages and retail outlets.
PVR Hyderabad
PVR Hyderabad opened in Feb 2006. It has five screens with 1321 seats. It is located at
the Central Mall at Panchgutta crossing in the city of Hyderabad. Currently, 3 screens
with 926 screens are operational and balance 2 screens are expected to commence
operations shortly.
PVR Rivoli
PVR Rivoli opened in February 2006. It is a single-screen heritage cinema with 329
seats. It is located in the central business and retail district of Delhi, Connaught Place.
The cinema caters to the transient population in Connaught Place.
PVR Indore
PVR Indore opened in April 2006. This five-screen Multiplex is situated in the Treasure
Island Mall on Mahatma Gandhi Road, which is considered the prime commercial and
retail destination in Indore. A number of well established brands such as Pizza Hut,
Pantaloons, Big Bazaar, McDonalds, Archies, Levis, Crossroads and Barista are located
in the mall.

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PVR Lucknow
PVR Lucknow is located in Sahara Mall, Hazratganj in Lucknow. Hazrathganj is the key
retail and commercial hub of Lucknow. The Sahara Mall is approximately 2,27,000
square feet. development and also has other leading retail and food brands that have taken
space in the mall including Pantaloons, Big Bazaar, Marks & Spencers, Planet Sports,
Reebok, McDonalds, Pizza Hut, Levis and Allen Solly
PVR Juhu, Mumbai
The project is part of a 100,000 square feet shopping centre with Shoppers Stop as the
other anchor tenant, and serves the up-market residential area in and around the Juhu Vile
Parle Development and is close to Juhu Beach, a major tourist destination in Mumbai.
PVR Mulund, Mumba
The project is part of Nirmal Lifestyle Mall, located in Mulund, Mumbai. It is the largest
mall (approximately 500,000 square feet) in the catchment area of Mulund and has a
number of major retail and food brands, such as Shoppers Stop, Shoprite, Fashion Street
by Pantaloons, McDonalds, Pizza Hut and Caf Coffee Day as tenants. The catchment
area for the Multiplex spans the entire of East Mumbai encompassing Mulund,
Ghatkopar, Powai and Chembur.
PVR Gurgaon at Sahara Mall, Mumbai
This mall is located at one of the arterial roads of Gurgaon where there is a concentration
of retail and commercial activity. The mall has other anchor tenants such as Pantaloons
and Big Bazaar. The Multiplex aims to cater to the catchment areas of DLF Phase II,
Sector 28, and Sushant Lok Phase V.
Projects under construction and New Projects signed

17

PVR has signed MOUs/ agreements with various developers for setting up multiplex
projects across the country. These Multiplexes are coming up in good quality
developments / malls, which are well located and have potential of becoming prime
entertainment, leisure and retail destinations. About 46 multiplex screens of the Company
are presently under various stages of construction and fit-outs and are expected to
commence operations over next 12 months. The list of upcoming multiplexes of the
Company is as under:
Cinemas Location
Prashant Vihar Delhi

Screens Seats
3,818

Aurangabad Maharashtra

31,156

Latur Maharashtra

31,136

Oberai Mall, Goregaon Mumbai

61,800

Select Mall, Saket Delhi

61,269

Phoenix Mills, Lower Parale Mumbai 72,050


Ampa Mall Chennai

71,600

Flamez Mall, Ludhiana Punjab

41,025

Freemans Mall, Ludhiana Punjab

31,025

Ambi Mall Gurgaon

71,500

Ghatkopar Mumbai

41,250

Rajouri Garden Delhi

61,500

Moradabad Uttar Pradesh

4,873

Jalandhar Punjab

41,300

Bhatinda Punjab

41,025

Hazrat Ganj, Lucknow Uttar Pradesh

41,037

Centra Mall, Chandigarh Punjab

41,013

Fun city, Panipat Haryana

3,800

Viraj Khand, Lucknow Uttar Pradesh

3,740

World Trade Park, Jaipur Rajasthan

51,067

Brigade Road, Bangalore Karnataka

1,22,800

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Celebration Mall, Khanna Punjab

41,200

Celebration Mall, Jalandar Punjab

61,200

Moksh Mall, Ranchi Jharkhand

61,250

Moksh Mall, Dhanbad Jharkhand

41,000

Scottish Hillview Mall, Dehradun

51,250

Dehradun 2 Uttaranchal

61,500

Scottish Mall, Ahemdabad Gujarat

61,500

Destination Mall, Ahmedabad Gujarat

71,300

Mysore Karnataka

62,235

Coimbatore Tamil Nadu

62,033

Vijaywada Andhra Pradesh

41,230

Raipur Chattisgarh

41,400

Celebration Mall, Amritsar Punjab

41,000

Maiden Mall, Amritsar Punjab

51,100

The Mall, Amritsar Punjab

41,250

Total

1,79,47,232

With the above projects the Company has a total of 250 screens signed till date (including
70 screens which are already under operation).
Management fee/franchise model
Recent high growth in the Indian organized retail market has led to increasing
developments of large-scale shopping malls that incorporate Multiplex Cinemas. Whilst
property developers may possess expertise in the construction and development of
shopping malls, they often lack the skill and experience required to successfully manage
Multiplex Cinemas. This offers us an opportunity to market and sell our expertise in the
development, operation and management of Multiplexes. Furthermore, PVR has a strong
brand name.

19

The company is managing 2 multiplex cinemas under the above model. In November
2004, they began to manage a three-screen Multiplex at the SRS Mall, Faridabad. In
December 2005, also began to manage an eight-screen Multiplex in Noida.
The company intends to expand this part of business selectively. It is most appropriate in
areas where they want to make small investments and where taking a cinema on a full
operational and financial control basis, as already done with most of the existing cinemas,
may not be possible due to the developers desire to own and operate the cinema.
Subsidiary Companies
PVR Pictures Limited
PVR also operate a small film distribution business through our wholly-owned
subsidiary, PVR Pictures, which acquires and distributes Indian and international films.
The strategy is to continue to distribute Hindi films in the same territories where own
cinemas are located, and to purchase the entire suite of distribution rights theatrical,
satellite/television and DVD rights for international films on an all India basis. PVR
Pictures was acquired by them in April 2005 and PVR Pictures financial results were
consolidated with their financial results only for the twelve months ended March 31,
2006.
CR Retail Malls (India) Private Limited
CR Retail Malls (India) Pvt Ltd. Is a 100% subsidiary of the Company which will
implement the seven screen Multiplex Project at The Phoenix Mills compound, Lower
Parel, Mumbai, a prime retail and entertainment destination in Mumbai.

20

HISTORY OF PVR
INDIAS LARGEST CINEMA CHAIN

It all started as a dream in the year 1997, and within a decade, the promoters have turned
the same into a 70 mm reality. Like the credits of a movie, the company would like to
share with the customers their achievements
Setting up the very FIRST multiplex in the country - Setting up a movie haven for
filmgoers in the form of the eleven screener: PVR Bangalore, India's largest ever
multiplex - Delighting not one, not two but more than 8.75 million patrons last year. PVR
now have an unmatched 68 screens across the country.
PVR says We love to entertain.
Our singular belief: Movies First.

- It's

mantra

every

single

one

of

our

1,000

employees

swears

by.

- It's a motto that helps us deliver the finest cinema experience, year after year.
From filling up our candy bars with the most scrumptious popcorns and beverages to
offering personalized service.
From raising the experience bar with super luxury Gold Class Cinemas to collaborating
with international partners to bring you the latest movies first.
At PVR, it's Movies First all the way.

A HALL OF FIRSTS. LIKE NO OTHER.

21

Breaking new grounds is our specialty; here is a proud list of our Hall of Firsts:

First to bring premier movie viewing to India with the exclusive Cinema Europa
& Lounge

First to introduce Gold Class Cinemas & Lounge in India

First to introduce Heritage Cinemas in India

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

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

First to offer Computerized & Online Ticketing

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

First to introduce Mobile Based Information & Ticketing Service

Introduced Cross Location Ticket Sales

First to introduce ATM Movie Ticket Kiosk

WHY MOVIE-GOERS PUT US FIRST.


Showcasing the best of movies under one roof - Designing vibrant and exciting cinema
interiors - Offering world-class service standards - Computerized ticketing - Real
time online booking - Mobile ticketing facilities - Gold Class and Cinema Europa
with luxury seating - Exclusive lounge and Personalized service - Experiential
marketing and promotions to delight patrons. With a star-cast this impressive, no wonder
PVR is the preferred choice to moviegoers across the country
ADVERTISERS PUT US FIRST
It is not just the moviegoers who give PVR Cinemas the preferential destination status
but also advertisers - successful brands like Pepsi, Airtel, Hero Honda, Nokia, LG, Lipton
and Samsung have made us their top choice.

22

FILM-MAKERS PUT US FIRST.


All prime studios, film distributors and producers of English, Hindi and Regional Films
consider PVR Cinemas the main cinema exhibition chain while releasing their films.
They provide active support in conceiving successful movie marketing campaigns and
promotions. PVR Cinemas' marketing acumen and positioning is aimed at giving record
breaking box-office collections.
DEVELOPERS PUT US FIRST.
Real estate developers from all over the country give PVR Cinemas the preferred
Anchor Tenant status for its ability to attract large footfalls.
NOW SHOWING.
CENTRAL DELHI

PVR Plaza, Connaught Place

PVR Rivoli, Connaught Place,

SOUTH DELHI

PVR Anupam, Saket,

PVR Priya, Vasant Vihar

WEST DELHI

PVR Naraina

PVR Vikaspuri

GURGAON

PVR Cinemas, The Metropolitan Mall

PVR Cinemas, Sahara Mall

GHAZIABAD

23

PVR Cinemas, EDM Mall, Kaushambi

NOIDA

Spice PVR, Spice World, Noida

FARIDABAD

PVR Cinemas, Crown Plaza Mall

PVR SRS Cinemas, SRS World

MUMBAI

PVR Cinemas, Dynamix Mall, Juhu

PVR Cinemas, Nirmal Lifestyles, Mulund

BANGALORE

PVR Cinemas, The Forum Mall

HYDERABAD

PVR Cinemas, The Central Mall, Hyderabad

INDORE

PVR Cinemas, Treasure Island, Indore

LUCKNOW

PVR Cinemas, Sahara Ganj, Lucknow

THE FUTURE OF THINGS TO COME..

24

PVR Cinemas will soon have a very firm national footprint with 250 screens across the
country. PVR will soon open cinemas in Delhi, Mumbai, Chennai, Jalandhar, Amritsar,
Ludhiana, Aurangabad, Latur and other territories.
The company will soon take the unique PVR Cinema Experience to every part of India.

PVR PICTURES
Our distribution arm, PVR Pictures, acquires and distributes Indian and International
films. As a strategy, the company intends to distribute Hindi films in the same territories
where our cinemas are located, and purchase the entire suite of content exploitation rights
including theatrical, satellite/television and Home Video for international film properties
on an all India basis.
Our cinematic journey of over a million miles has just begun

25

VISION

The companys main goals are to remain Indias largest and most preferred cinema
exhibition company. To achieve these goals, they would continue to focus on the
following elements:
Continue to provide the highest exhibition standards to achieve customer delight.
Increase the number of cinemas under our operation on a pan India basis by adopting a
price-based differentiation model, offering our patrons a superior cinema-going
experience at each price point.

26

PROMOTIONAL EFFORTS
The comprehensive definition the definition of positioning :

1. The position of a brand is the perception it brings about in the mind of a target
consumer.
2. This perception reflects the essence of the brand in terms of its functional and nonfunctional benefits in the judgement of that consumer.
3. It is relative to the perception, held by that consumer of competing brands all of
which can be represented as points or positions in his or her perceptual space and
together make up a product class.

The brand is not passive but active. It acts to bring about that perception. Position
represents the whole or overall perception of the brand in that consumers mind and that
it is always a relative concept.

27

CONSUMER BEHAVIOUR

Attitudes / Needs
Marketing
activities

Learning
(monory)

Situations

Culture

Perception

Problem
Recognitio
n

Subcultur
es

Motives

Informatio
n Search

Values
Consum
er
lifestyle

Evaluation
& selection

Personali
ty

Demograp
hics
Store
choice &
purchase

Emotions

Social status
Households

Reference Groups

Postpurcha
se
processes

Situations
Experiences

28

CONSUMER BEHAVIOUR AND MARKETING


STRATEGY
Organizations are applying theories and information about consumer behaviour on a daily
basis.

Consume behavior theory provides the manager with the proper questions to ask.

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

What they think of possible improvements in our products.

How they use our products.

What attitudes they have about our products and our advertising.

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

What their hopes and dreams are for themselves and their families

29

Understanding Consumer behavior

Marketing strategy to
satisfy target consumer
needs
Consumer
research
Understanding
consumer behavior

Behavioral
theories

Regulatory policy

Informed individuals to
better understand how
societies function

All marketing strategy and tactics are based on explicit or implicit beliefs about consumer
behavior.

30

PROMOTIONAL strategy & Consumer behavior for PVR


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

Providing superior customer value requires the organization to do a better job of


anticipating and reacting to customer needs than the competition does.

Marketing strategy as described in Figure 1-2 is conceptually very simple. It begins with
an analysis of the market the organization is considering. This requires a detailed analysis
of the organizations capabilities, the strengths and weaknesses of competitors the
economic and technological forces affecting the market and the current and potential
customers in the market. Based on the consumer analysis portion of this step, the
organization identifies groups of individuals, households or firms with similar needs.
These market segments are described in terms of demographics, media preferences,
geographic location and so forth. One or more of these segment are then selected as target
market based on the firms capabilities relative to those of the competition (given current
and forecast economic and technological conditions).

31

Outcomes
Customer
product/brand image

satisfaction

sales

Consumer decision process problem recognition


information search alternative evaluation purchase
use evaluation

Marketing strategy product, price, distribution,


promotion, service

Market segmentation identify product-related needs


sets group customers with similar need sets
describe each group select attractive segment(s) to
target

Market analysis company competitors conditions


consumers

Next, marketing strategy is formulated. Marketing strategy seeks to provide the customer
with more value than the competition does while still producing a profit for the firm.
Marketing strategy is formulated in terms of the marketing mix. That is it involves
determining the product features, price, communications, distribution and services that
will provide customers with superior value. This entire set of characteristics is often
referred to as the total product. The total product is presented to the target market which
is consistently engaged in processing information and marking decision designed to
maintain or enhance its lifestyle (individuals and households) or performance (businesses
and other organizations.)

32

The reaction of the target market to the total product produces an image of the
product/brand sales (or lack thereof) and some level of customer satisfaction among those
who did purchase. Sophisticated markets seek to produce satisfied customers rather than
mere sales-because satisfied customers are more profitable in the long run.

Creating satisfied customers

Our total
product
Consume
r decision
process

Superior
value
expected

Sales

Perceived
value
delivered

Customer
satisfactio
n

Competit
ors total
products

In Figure 1-3 you see that convincing consumers your brand offers superior value
(relative to the competition) is necessary in order to mark the initial sales. However,
creating satisfied customers and thus future sales requires that customers continue to
believe that your brand offers superior value after they have used it. That is you must
deliver as much or more value than your customers initially expected. This requires an
even greater understanding of consumer behavior.

33

Consumer behavior is product person situation specific

Personal
characteristics

Product
characteristic
s

Consumer
behavior

Marketing
strategy

Consumption
situation

34

Consumer lifestyle and consumer decisions

Needs/attitudes
that
consumption decisions

influence

Consumer
lifestyle

Consumer
choices

Behavior/experiences that reduce,


maintain, or enhance lifestyle

The Nature of consumption


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

35

PVR NEST
Projects operating under the CSR initiative of PVR Cinemas
PVR NEST, (PVR Network for Enablement and Social Transformation) is the corporate
social responsibility initiative of PVR Cinemas. At PVR Nest, they believe that
companies can make a real, effective difference in improving the quality of life in the
communities where they operate. Their vision is to work together with the government
bodies and the community, spearheading a movement for better social conditions around
us.
To begin with, PVR NEST has identified two key concern areas: disadvantaged urban
children and the deteriorating urban environment.
Three projects have been initiated to address the above:
1. PVR CHILDSCAPES
The CHILDSCAPES project seeks to transform the lives and restore the dignity of street
children through educational, social and cultural activities. The project works with a
floating population of about 75 disadvantaged children, most of whom are beggars, ragpickers or destitute.
The project has been piloted at the Vasant Vihar Shopping Centre in association with
Katha's Tamasha Roadshow and the active support of the Vasant Vihar Market Traders'
Association.
2. PVR KI PAATHSHALA
The PAATHSHALA program aims to enable economically disadvantaged children to
finish their schooling. The programme also offers academic coaching and counselling.
36

The pilot is being implemented by Literacy India , with 25 children of Village Ishapur (a
predominantly scheduled caste village in Haryana).
3. Green PVR: Valuing Nature
The Green PVR: Valuing Nature project is an effort to optimize the use of existing urban
infrastructure and public service facilities, thereby delivering a better city experience to
all citizens. It is an endeavour to demonstrate environmental conservation practices in
and around PVR Cinemas Halls. The project brings together the efforts of the
neighborhood, the Market Association, MCD and DDA.
PVR NEST: PVR Network for Enablement and Social Transformation- the corporate
social responsibility of PVR Cinemas.

37

AWARDS PICTURES.

Indira Super Achiever Award by


Indira Group of companis in Oct. 2005

Delhi Ratna at PHDCCI Centenary Celebration on 10th September 2005

Ernst & Young Enterpreneur


Of The Year Award 2005

38

Enterpreneur of The Year Award at Franchise Award '05

Indian Developer
Felicitation 2005

TAAL Cinema Marketing


Of The Year 2005

39

Special Award
CineAsia 2004

The Teacher's
Achievement Award 2004

CREDAI National Convention 2004


Award for Tthe Year 2004

Newsmaker of the Year Award for 2003


as part of the Frames 2004 in Mumbai

40

Retailer of the Year: Entertainment

Enterpreneur of the Year


At Franchising Award 2004

Retailer of the Year: Entertainment


For The Year 2003-04

41

Retailer of the Year: Entertainment


For The Year 2003-04

Ernst & Young Enterpreneur


Of The Year 2002

42

One face to the customer


Building a brand that unites company efforts in a customerrelevant manner
Tim Riesterer is president & CEO of The Brady Company, an integrated marketing
communications firm specializing in programs that improve sales channel productivity
for industrial and medical business-to-business clients worldwide.
Make selling easier, faster, and cheaper. Build a brand.
Its worse than the three faces of Eve... the many faces some companies present to their
market and their customers. While decentralized divisions and distinct business
operating units have done wonders for the agility of corporate America, we are starting to
see at least one bad side effect:
A systematic erosion in the ability of a companys brand to attract prospects and maintain
customers.
This is particularly evident in companies where multiple business units sell to the same
customer. Imagine the poor enduser being barraged by scads of self-styled, separate and
unique marketing messages generated by individual business units; all with parochial
profit/loss objectives.
By separating marketing resources into proprietary parcels for each unit, these companies
further dilute already limited budgets. The laws of marketing physics dictate that these
groups must create exclusive programs, messages, positions, names, logos, icons -- in
the name of reaching their personal product goals. But, many times at the expense and
detriment

of

the

companys

overall

market

position

and

brand

image.

Most companies simply do not have the resources -- people or money -- to sustain

43

customized, fragmented product or division-level approaches, and achieve breakthrough


success with todays customers.
180 degrees off course
Thats because todays customer is changing. While the business world goes about its
internal-driven restructuring, its customers are reorganizing themselves to buy a
completely different solution than is being created by these so-called management gurus.
Customers, in increasing numbers, are looking for a more complete, trustworthy singlesource solution. Supplier consolidation is a well-documented trend. These new
customers

require

vendor

partners

who

assume

more

important

turn-key

responsibilities. Systems integration and related after-sale services, such as inventory


management, are among the new expectations.
How does a company appeal to these customers when it is perceived merely as a
collection of islands in a stream? How does it instill confidence in its integrated solution
when decentralized marketing messages create images of concrete silos where interdependent products and services should be seen?
The answer: Companies must reach all their critical audiences with a cohesive,
consistent message presented in a manner that is immediately identifiable as a single,
positive corporate brand.
This requires a strong corporate positioning strategy to unite your companys offering in a
customer-relevant manner that provides clear and tangible proof of the superiority of your
solution. The process, however, requires significant discipline for strongly divisionalized
companies

looking

to

put

an

umbrella

over

their

fiefdoms.

A day in the life of the brand

44

The first step in organizing and rallying disparate agendas toward a singular brand
position is a market study. A meaningful brand market study is more experiential than it
is empirical. It reaches out to all relevant audiences with the power to influence a brand
position and the companys ultimate success:
Company executives: In-depth, one-on-one interviews with key company executives
from

appropriate

corporate

and

division

areas

of

responsibility.

Top customers: Visit 5-7 preferred customers to witness a day in the life of the brand.
These will be the customers who already committed to your complete offering despite the
lack of a single message.
Top losses: Where are the gaps? Interview 2-3 significant sales losses. Companies
who fit the profile of a preferred customer, but who chose a competitor.
HQ customer visits: What turns prospects on? Observers take down notes during
tours and discussions with promising prospects visiting the headquarters as part of the
sales process.
Field experience: What is the sales environment? Ride for a day or two with a few
regional-level salespeople iis done to experience the day-to-day competitive environment.
Secondary sources: What market information already exists? Access existing data
on market trends, perceptions and ranking of vendors, buyer demographics and decisionmaking protocols, etc.
Requirements for building a brand that sells
Based on the input from the market study, companies begin to discuss positioning
options. Mini-worksessions and what if meetings should produce reasonable brand

45

position hypotheses. In the book, Selling the Invisible, Harry Beckwith lists several
requirements for creating a position that has real market impact:
Focus
You cannot be all things to all people. Its about sacrifice. What one distinctive thing
will give your company an edge. A lack of sacrifice is a lack of positioning. Focus also
allows you to rally and pinpoint resources for more support.
Halo effect
Recognize that investing in one positive image will have associated impact on your
companys entire portfolio. Remember, no one ever go fired for choosing GE (General
Electric).
Start with current position
Find current customer perceptions and turn them into a benefit. Emphasizing those
issues that most relate the brand to improving the daily life of its users. If the gap
between perception and reality is too big, your customers and prospects wont make the
leap to a radically new position.
Be different
Dont just try to be better. Positioning is about clear, positive difference. The subtleties
between whose better dont stand up long enough to count. So, stand out in a parity
situation. Give prospects a real, sustainable reason to choose you.
Be distinctive

46

In a world of information overload, your brand position and message need to be unique,
hard-hitting and pertinent, as well as sensory and creative. And the customers wont
either.
If you are comfortable that your positioning options stand up to this litmus test, you will
want to entertain select feedback from some of the same audiences who participated in
the original market study.
Their qualitative responses will provide the material for an in-depth position development
plan, including some creative execution to demonstrate how the brand position will
come to life, in the day-to-day lives of company staff, customers and prospects.

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


The use of marketing communications, such as advertising and publicity, as the primary
drivers of company branding is dead. A good corporate theme or tag line alone cannot
carry the day when contributors to (and detractors from) brand equity exist across an
entire organization.
As a result, organization alignment is the most critical component to a brand positions
success or failure. Aligning all the forces inside an organization that impact the brand is
key to building brand equity. Why? Because communications messages being sent to the
market need to line up with the experiences customers have with the company.
From a customers perspective, all experiences affect brand image, not just those
designated as brand building. For example, among customers with a favorable
impression of a companys advertising, a negative service experience will always stick
out as the impression they have of the brand. In addition, the resulting negative word-ofmouth marketing, will carry more sway over potential customers than anything
advertising could ever accomplish.

47

The goal for bringing a brand to life is to make a proactive effort to drive the organization
toward aligned brand equity development -- in all facets of the customer experience.

Taglines as booster rockets


Similar to the space shuttle which needs a high-energy set of booster rockets to
breakthrough earths gravity before it can soar, an organizational alignment program
needs a spark to get it moving forward.
This is where a classic tagline or theme can make or break brand building. The
discipline of identifying a few key words that communicate the full weight and force of
your brand message is the cornerstone of an organizational alignment effort.
With a tagline, you have a rallying cry and focus. All actions, applications and associated
activities get their energy from (and always point back to) this dynamic positioning
device. More than pithy wittiscims or half-baked platitudes, this tagline must stand up to
three critical questions:
1.

Does it provide a clear, recognizable and sustainable differentiation from the


competition?

2.

Does it respond to your customers most pressing needs in a compelling,


believable

3.

manner?

Does it provide guidance for management decisionmaking, hiring, training and


resource allocation?

Right where it counts

48

Now comes the hard part. An ongoing, consistent commitment to making this position a
reality in the company. Will it be posters in the cafeteria, or will it be a program that
(re)aligns from the innards?
Does the organizational structure have to change to support the brand position? Will we
reprioritize product and service development based on our new market focus? Must
after-sales support networks and programs be staffed and trained differently to deliver
and

complement

our

one

face

to

the

customer?

A complete brand building program will generate significant momentum and equity that
can be leveraged across the entire company to support significantly improved prospecting
and sales activity, as well as helping create customers as advocates.

49

MARKET SEGMENTATION RESEARCH


Market segmentation research maintains focus and delivers needed marketing
information in today's moving economy where new markets and new product categories
emerge and traditional market segments fade away. Our market segmentation research
is a way to keep 'your eye on the ball.'
With an on target market research design concept, staged design, and astute market
research questionnaire design, market segmentation research provides a window to your
marketing opportunities and a path to effective marketing strategy. Often we start the
market segmentation process with qualitative research to define ways customers view the
product category, and the differences in those views. perceive competing product
categories, and brands within those categories.
Comprehensive market segmentation research examines a broad range of demographic
and psychographic determinants. Implied in the notion of segment.
Methods we use include in our portfolio of market segmentation research methods:

Qualitative Market Research ...

We conduct preliminary focus groups or other qualitative methods -- such as depth


interviews -- among market segments for which we have hypotheses as to their
importance. We listen to their language. In focus groups, we probe how they talk about
the product or service category. Using projective techniques, we uncover insight as to
how various consumer and business audiences see and feel about the product category
and competitive brands.
Our qualitative market segmentation research effort centers around refining hypotheses,
discovery and refining our learning about customers whether consumers or business
audiences. Our goal is to develop preliminary segmentation dimensions not draw

50

conclusions about either their importance or size. That is done in our quantitative
segmentation research effort.

Market Segmentatin Goals

Estimate the market segment dimension salience or impact.


Marlet segmentation dimensions may be demographic, behavioral,
attitudinal, or a combination of these which may form psychographic
segments.

Estimate the market segment dimension salience or impact.


Factors here may include buying frequency, strenth of product category
importance, perceived value of product use system, and consumer or
business customer attitudes.

Concept Test with real or proposed brands and product positioning and priceperfomance offers. Concept testing of brand and product brands, each with a unique
brand image and positioning, further attunes our quest for market segment definition. The
response to various brand and product positioning and price-performance offers, and their
differentiated customer appeal, further refines our brand segmentation approach and
conclusions.

Quantitative Market Segmentation Methods:

Stage 1: Developmental Market Segmentation Research Survey


A developmental survey -- typically phone, or online survey -- that takes
hypotheses from our qualitative market segmentation exploration,
constructing the survey questionnaire to bracked the initial dimensions,
measure their importance, and the positition of cometitive brands and
cross-category brands along the dimensions. Product and brand concepts
are used to refine the power of each market segmentation dimension to

51

discriminate. Basic statistical analysis may be employed in this


developmental stage.

Stage 2: Statistical Quantitative Market Segmentation Study


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

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

52

RESEARCH METHODOLGY
& REPORT OF DATA COLLECTION
PRIMARY RESEARCH

Things taken into consideration while working on the methodology is, one being the
sampling and the other being the Data analysis tools. Decision is done on the sampling
using the Sampling Design Process. The Sampling Design Process includes the following
steps:
Target population
Determining the sampling frame
Selecting a sampling technique
Determining the sample size
Executing the sampling process
1) Target population The target population is the collection of elements or objects
that possess the information sought by and about which inferences are to be made.
Tthe target population is defined precisely in terms of elements, sampling units,
extent and time.

53

A
C
T
I
V
E
R
E
S
E
A
R
C
H

The target population is as follows:


Sampling Unit: corporate office of the company,
various PVR outlets.
Extent: Metropolitan Delhi
Time: 2007

2) Sampling frame A sampling frame is a representation of the elements of the target


population. It consists of a list or set of directions for identifying the target
population. Example a city map, a mailing list from the commercial organization
3) Selecting a sampling technique Here a probability sampling technique is used
which is stratified sampling. This is done to increase precision without increasing the
cost. Stratified sampling is a probability sampling technique that uses a two step
process to partition the population into subpopulations, or strata. Elements are
selected from each stratum by a random procedure.
Stratified the target population into four regions:
NORTH
WEST

EAST
SOUTH
DELHI

54

4) Determining the sample size Sample size refers to number of elements to be


included in the study. Determining sample size involves qualitative and quantitative
factors. The researcher has decided a sample size of 50.
5) Execution of the sampling process Execution of the sampling process requires a
detailed specification of how the sampling design take decisions with respect to
population, sampling frame, sampling unit, sampling technique, and sample size are to
be implemented.Eg. If households are the sampling unit, an operational definition of a
household is needed.

Questionnaire
The research has a set of structured questions which include multiple choice.
`
Data Analysis Tool
Mean is used as a statistical tool towards calculating the results in a quantitative form.
Pie Charts is used as a graphical representation of quantifying the results. This technique
is chosen due to its effectiveness in comparing large number of observations which will
make the analysis of the various factors simple and easy.

55

Q1 When asked : How much was the waiting time:


the answers were :
20% answered : 15minutes
25% answered : 25 minutes
55% answered : 10 minutes

Q 2 When asked : How was the customer service :


The answers were :
34% answered : Very good
32% answered : Average
34% answered : Good

56

Q 3 When asked : Rating for presentation :


The answers were :
38 % answered : Above average
36 % answered : Good
:24 % answered : Very good

57

Q 4: When asked : How was the performance :


The answers were :
35.2 % answered : Very much satisfied
34.8 % answered : Highly satisfied
30 % answered : Satisfied

58

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


The answers were:
25 % answered :
30 % answered :
35 % answered :
10 % answered :

Above average
Highly satisfied
Satisfied
Dissatisfied by few variety

59

Q 6 When asked : How was the overall performance :


The answers were :
28.20 % answered : Highly satisfied
32 % answered : Appreciable
39 % answered : Above average

60

Q 7 When asked : How were the rest rooms:


The answers were :
37 % answered : Nicely maintained
32 % answered : Hygeinic
30 % answered : Above average

Q 9 When asked : How was the picture quality :


The answers were :
32.6 % answered : Above average
67.4 % answered : Highly satisfied

61

Q 10 When asked : How was the sound quality :


The answers were :

21.35 % answered : Satisfied


78.65 % answered : Highly satisfied

62

Q 11 When asked :How was the overall presentation :


The answers were :
33.2 % answered : Average
66.8 % answered : Above average

63

RECOMMENDATIONS

Recommended positioning for PVR are as under---

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

More variety of foods can be added at PVR counters.

Tele- booking needs proper attention.

A little attention should be given to the sound clarity.

Proper support should be given to ventilation as well.

It is recommended that PVR must extensively develop the use of Technology on


uniform platform across all its theatres.

Appropriate budget allocation is required for implementation of new technologies.


For e.g when a person books tickets online then he/she should be able to get the
printouts from there rather than a person delivering it at home.

Also it is recommended that independent booking outlets be opened so that


consumer can get tickets booked there instead of going to the theatre.

Companys focus should be to increase the awareness among the Customers


about new releases and offers by doing Promotions.

Company can increase the sale of tickets by Attractive price offer, more Media
Publicity, etc

In all, after researching about PVR CINEMAS in all possible aspects it is concluded that
PVR should concentrate on expanding and opening new theatres but at the same time
keep on upgrading and providing quality service to the consumer who can experience
such a comfort that keeps attracting them back to PVR.

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SECONDARY RESEARCH
INTERVIEW OF VICE- PRESIDENT--

The uneven state laws are one of the major challenges. State laws differ from state
to state. Secondly, as I said, every area has its own requirement, unique requirement
so you need to understand that and adapt to that. You cant actually run your own
story and expect people to come and watch the film so that is a biggest challenge.
-Mr. Bijli, Vice President, Cinema Marketing & Promotions, PVR Limited
Movies had always been a passion for Mr. Bijli, who was recently promoted as VicePresident, Cinema Marketing and Promotions, PVR Ltd. With over 10 years experience
in the cinema exhibition industry, Bijli has been responsible for content programming and
planning to optimise revenues, acquisition of film products, strategy planning and
concepts development, brand building and creative development in his various
appointments.

QUESTIONS
You started the multiplex culture in India when you opened the first multiplex in
Saket in South Delhi. How do you look at the years gone by?
The multiplex business started in 1997 with PVR Saket, which is still one of the highest
occupied cinema halls of the country. At that point of time, when we were looking at an
outfit, which is kind of a hangout zone, we could not source anything. Then we built up
our own hangout and this particular thing became a phenomena. Post-Saket, there have
been a lot of developments. One is the advent of malls, so the combination for just
movies has changed into a combination of entertainment, shopping and eating. So, from
just a movie going concept it has become a wholesome experience in todays world. Plus,
there are a lot of other things as well; look at destinations, multiplexes has also brought in

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a big retail boom in the industry. So, wherever the multiplexes are open they have
brought in big brands.
The recent big combination is that of cinemas with a hyper mall. All these things are
making it a wholesome experience from what it was earlier. In terms of content, when we
started the multiplex business, it was a little difficult to source out content for four
screens into four or five shows a day. At that point of time, we used to play both English
and Hindi films. Now we are getting films from all over the world, we are even releasing
movies from Thailand and France, which would, of course, be dubbed in English, and we
ourselves are distributing the films.
Every year you see there is a trend of one big blockbuster. The flow has also increased
now because there is some place to play these kind of movies and there is also a lot of
experimentation in terms of project so from a Dil Chahta Hai to a Rang De Basanti
to a Khamosh Paani to an Amu have audiences.

How have you developed the PVR brand since the inception?
There are two things when you develop a brand. One is the facility and the services that
you provide to the consumers. So, every year our mantra changes. Earlier, it has been to
provide services and facilities to the consumers, how do we make him avoid the ticket
counter and get a ticket at his doorstep. We, therefore, took a lot of initiatives. We started
with the first computerised ticket system, we got the software, a complete transparent
system where every report goes to the government and the distributors. We also set up a
multimedia kiosk where you swipe a card and get the ticket, we also started tele-booking
where you punch in your credit card number and book a ticket via phone. We also started
cross-location sales. So, you can purchase a ticket for say PVR Saket from any of the
PVRs. All these initiatives are a first that we have initiated in our cinemas. Tomorrow it
may be common to other cinemas, but at the moment all these initiatives are basically to
benefit the consumers and make it convenient for him to book tickets and watch movies.

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Secondly, every cinema we build has to be classy, have the best location, best sound,
luxurious seating, etc. Everything has to be top class. Apart from that, the new mantra
that we have adopted is experiential marketing. We feel that the experience of the
consumer has to be better than the rest, thats the kind of differentiator for our cinema.
For instance, a person goes to watch Mangal Pandey and sees a contest form, he fills it
up and gets to meet Aamir Khan, or he goes to see Hanuman and there is a Hanuman
standing in front of him much to his kids delight, or maybe he wins various movie
merchandise so all these things contribute to the experiential marketing.
Moreover, we are also looking at promoting regional films or multiplex specific films
like Amu and Khamosh Paani, and are trying to develop a market for that. The next
big thing that is going to happen in the cinemas is the expansion into B and C territories.
We will be coming up with a no frills model, where tickets will be cheaper, but without
compromising on the facilities and quality of PVR Cinemas.

You said price would be cheaper. What would the variation be like?
The variation would be in terms of investment. From a consumers perspective, the seats
will be comfortable, and there will be no compromises in the projection and sound
quality. So, a viewer watching a movie in Aurangabad or Latur will find the best cinema
in town. It would come under a different brand name though, but it will be called PVR
something. Thats an extension of the PVR brand and fortunately for us, PVR as a brand
has become synonymous with cinema.
Which are the other cities that you are planning to foray into and when?
We are going to expand further in Delhi. We will be opening PVR Prashant Vihar. In
Mumbai we have already opened PVR Juhu with two screens and are coming up with
four more properties one in Mulund, one at Phoenix Mills in Lower Parel, and two
other projects in the pipeline. In the North we are coming up with two multiplexes in
Ludhiana, one each in Amrtisar, Bhatinda and Chandigarh. In the South, we are coming

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up with a multiplex in Chennai. In fact, we are looking at expanding to around 250


screens in the next 12-15 months.
What about the East?
Yes, we are looking at expansion in the East as well. Everything is being worked out. So,
definitely the expansion will include every part of India.
How has the mutiplexes business evolved in India?
There was a time when people preferred to watch movies at home buying or renting
video cassettes or VCDs / DVDs. Now they are returning to the cinema halls, thanks to
the good ambience, international sound and picture quality and the option of purchasing
tickets without standing in long queues.
Another thing that we are seeing is that people have become more receptive towards
experimental cinema. A movie like Rang De Basanti may not be a typical masala
Bollywood movie, but it has done phenomenal business. Similarly, an animated feature
film like Hanuman has also been accepted well by the audience. Oscar nominated and
winning films, which used to be considered very niche earlier, are doing very well too.
Another trend is that of hosting corporate functions, birthday parties and even kitty
parties in movie halls. So, cinema is being looked at as a complete medium of
entertainment.
What kind of investments have you lined up for expansion?
We have lined up Rs 300 crore for expansion of multiplexes.

What are the forthcoming releases (Bollywood and Hollywood) lined up for 2006?

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Among the Bollywood line-up we have Krrish (Rakesh Roshan), Don (Farhan Akhtar,
Kabhi Alvida Na kehna (Karan Johar), Umrao Jaan (J.P. Dutta), Phir Dhoom (Yashraj
Films), and Sholay 2 (Ram Gopal Varma), among others.
The Hollywood line-up includes Superman Returns, Casino Royal (James Bond), Da
Vinci Code, Mission Impossible 3, Aishwarya Rai-starrer Mistress of Spice, Pirates of
The Caribbean 2, and Assassination of Jesse James, among others.
This year if you see the line up, there is one blockbuster almost every fortnight. Thats the
kind of power our business is going to get. Advertisers, too, are showing a lot of interest
and want to do innovative things. I guess everybody understands the potential of movies
so it is becoming big and big every year. The next big thing is that multiplexes will go
from metros to non-metro cities. The business is further going to expand
Any major tie-ups in the pipeline with Hollywood and Bollywood studios /
production houses?
We have already tied up with several Bollywood production houses. Another big
advantage is that with studios, producers are directly approaching us and telling us we
have got this content, we would like you to plan a marketing activity for the film and so
on and so forth. So, we are directly in touch with these producers, building up specialised
marketing and promotions for the films. With the recent change, producers and directors
are taking PVR as a hub where they can get a feedback on their films and design the next
film according to what the customer is saying. They are actually trying to understand
what the consumer thinks so that they can make a better and specialised product for that
particular segment. Thus, customer research management is being worked out in PVR.
Can you tell us the names of the houses with which you have tied up?
UTV is very prominent in coordinating marketing activities with us, so are Warner Bros,
Sony Pictures, Paramount Films and Yashraj Films. Ram Gopal Verma (RGV Films) is
very active too. Almost every person is looking at cinemas as a big medium to advertise
with.

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Do you also plan to get into film production and film distribution?
As part of our complete pyramid, the producer is at the top, then there is the distributor
and then the exhibitor. We only need exhibition and distribution and we are very happy
with that. At this moment, we just plan to focus on what is our core competence, which is
exhibition and distribution. Once we feel that now we have time to focus on other areas
we may look at that, but at this moment we are focusing on exhibition and distribution
With the other players in this segment (multiplex business) also becoming
aggressive, how is PVR gearing up to face the competition?
There is a big market here. We would welcome competition because it brings good
change and we are looking at people who are serious about the business, because
ultimately it will help the industry to grow. We are happy that the competition is coming.
Have you chalked out any particular strategy to combat competition?
Our brand stands for two things one is the facility we provide, which anybody can
match, and secondly, the service standard and experiential marketing, the experiences of
the consumer being good to the cinema, which is a PVR and vis-a-vis other cinemas. He
can see the difference in terms of the quality of the service and the passion behind it, so
thats our biggest strategy.
What are the major challenges for the growth of multiplex business in India?
The uneven state laws are one of the major challenges. State laws differ from state to
state. Secondly, as I said, every area has its own unique requirement, so you need to
understand that and adapt to that. You cant actually run your own story and expect
people to come and watch the film, so thats a big challenge. The South is a different
experience, Mumbai is a different experience, Delhi is a different experience, hence,
adapting to a particular region is challenging and exciting as well.

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What is the average occupancy level of PVR theatres across the country on
weekdays and during weekends?
The average occupancy is 50 per cent, if I include both weekends and weekdays, of
course, weekdays are a little lesser than weekends. But again it is all content driven as
well so you have 60-80-100 per cent on a weekend and you have 30 per cent to higher
numbers on weekdays. So, it all depends on the kind of movie you play. For example,
Rang De Basanti had a lot of audience during the morning shows even on weekdays
because college goers were attracted to the movie.
In terms of season, there is a different trend like March and April would be light seasons,
but May, June, July and August would be phenomenally big this year, and generally it is
big because of summer vacations. Another reason is that in summers people want to get
into an air-conditioned hall and spend the whole noon and evening there. Post Diwali also
it is really big. Therefore, overall the occupancy level varies from season to season as
well as weekday to weekend
Are you planning to show any of the 2006 FIFA World Cup matches this year in
PVR halls?
Yes, we are looking at doing screenings in our cinemas. We keep on doing alternative
programming content like soccer or cricket matches.
How has the response been to your Star Club?
We have more than one lakh members, who watch movies regularly and we keep
rewarding them. The response has been very good, look at our website, we get a lot of
queries. If tomorrow I want to do a movie, which is about a serious subject, I can target a
specific audience and send a mailer and inform them about it, if I am releasing an
Amitabh Bachchan movie I can target Big Bs fans. We are able to take all these
initiatives because of our database and the kind of segments we have. All those things are
basically helping us grow the market.

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What other interactive programmes do you have on the anvil?


We are doing contests and games on our website, we keep on changing contests and
everything. Then we have something we call LAM (local area marketing), which is very
strong in our cinemas. Every movie or cinema has a different kind of a promotion. So,
there will be some kind of leaflets or banner or a hoarding, or maybe a contest which are
at a local level. For instance, may be you get a card and get it punched four times, the
fourth time you can get a free movie ticket. All these come under LAM. At this moment,
if we have 11 cinemas then every cinema will have a different LAM plan, We are also
very strong in technological innovations. You can book a ticket for any of the PVRs from
any PVR counter. Similarly, you can go to a kiosk, swipe a card and buy a ticket. Such
kiosks were introduced in Delhi (Saket) and Bangalore in October 2005. These userfriendly initiatives are helping us in a big way.
Moreover, we have also introduced real time ticketing, where you can actually log on to
our website, www.pvrcinemas.com, and choose the seat you want.
What percentage share do online bookings have vis-a-vis on the spot ticket sales?
It is around 30 per cent online bookings. I could call it value added services, so if it is
online booking, it is ticket fare booking. Rather than calling it online, you can call it the
value added service whether it is online or mobile booking.
Any major promotional and marketing activities lined up in the future?
Movie merchandising is something that is going to grow in the coming years. So Krrish
may have a good merchandising opportunity, Superman Returns may have a good
merchandising opportunity. They tend to offer a lot of value addition to patrons coming to
PVR cinemas at that point of time. We are segmenting our audience and doing specific
promotions for that. So, kids will have a special promotion for them, students will have a
separate promotion, women will have specific promotions, then families will have a
different kind of promotion. Hence, we are segmenting the people who come to a cinema
and are trying to do things around them.

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What constitutes a great movie viewing experience?


One is the hardware, which is cinema and everything, second is the software, which is the
content, in between comes the value added services, which help you remember things
that are small but when you go home you remember them. So, when a person goes home
he/she says, maybe the movie was average, but my whole experience was good. But if the
movie is good, then the whole e xperience becomes even better. So, hardware and
software both add on to a good experience.
Finally, what is the mantra of PVRs success?
I would call it passion for the business we are in. If you see our MD, Ajay Bijli, he is
passionate and doing what he loves to do. Our criterion for the selection of the person is
that he has to be a hardcore movie buff. I think passion and innovation has helped us be
where we are. Our internal catchline is we should be mad about movies and our project
philosophy is that all cinemas should ooze with movies. I guess the movie mad culture is
helping us be where we are. That is our success mantra I guess.

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CONCLUSIONS
We have been able to draw the following observations from the findings of the research.
1. QUEUE TIME -As far as Queue time is concerned the customers are required to
wait for a longer duration
2. CUSTOMER SERVICE The audience felt that there was an enthusiastic and
friendly behaviour with them and were very satisfied.
3. PRESENTATION Proper attention is being given at all PVR cinemas in terms of
cleanliness and presentation.
4. PERFORMANCE In terms of performance the customer service was lacking as
the customers had a wait for long for obtaining the ticket.
5. PRODUCT & QUALITY - As per the survey the customers were really influenced
by the products and its quality which was being served at all the PVR cinemas
outlet.
6. OVERALL PERFORMANCE Majority of the people were impressed by the
overall performance in terms of the terms of the eatables being served on their seats.
7. REST ROOMS Proper hygiene is maintained with adequate facilities as well.
8. AIR CONDITIONING &SEATS A good positive response is found so far as
comfortability factor is concerned in terms of proper air conditioning and seating
arrangement.
9. PICTURE QUALITY & SOUND QUALITY Though the customers are satisfied
but still a little improvement can also be done to maintain it further.

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BIBLIOGRAPHY

www.google.com

www.pvr.com

www.exchange4media.com

Published References:
o Marketing Management by Philip Kotler.
o Magazines,journals from libraries
o Newspapers.

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ANNEXURE
QUESTIONARE

On the scale from 0 to 10, with


0 meaning you were not at all satisfied
and
10 meaning you were extremely satisfied.
Please score us by shading the boxes below.
If the question is yes and no in nature, 0 indicates No and 10 indicates Yes

QUEING TIME

0 1 2 3 4 5 6 7 8 9 10

1. What was the queuing time?


2. How was the queue management and experience?
CUSTOMER SERVICE
3. How well were you greeted?
4. Staff was friendly, enthusiastic and made good eye contact.
PRESENTATION
5. The counter was clean and tidy.
6. How would you rate the overall presentation of the ticket box?

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PERFORMANCE
7. Did you obtain your ticket promptly?
8. How would you rate the customer service at the ticket box

Candy Bar
PRODUCT & QUALITY
9. I was asked if I wanted the promotion combo set.
10. I was served fresh, tasty popcorn.
11. The quality of product was up to standards.
OVERALL PERFORMANCE
12. How prompt were you served?
13. How would you rate the service standard at the Candy Bar

Floor Area, Usher Point & Cinema Access


REST ROOMS

Not at all
Satisfied

Extremely

Satisfied

14. The wash room was clean and tidy.


15. The wash room was well supplied.
16. The smell was pleasant.
OVERALL PERFORMANCE
17. The teams co-ordination at this cinema is good

0 1 2 3 4 5 6 7 8 9 10

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

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Inside the Cinema


AIR-CONDITIONING AND SEATS
19. The air-conditioning was comfortable

0 1 2 3 4 5 6 7 8 9 10

20. The seats and the floor were clean and tidy.
PICTURE QUALITY
21. The picture quality was clear and sharp.
22. The picture was still and free of disturbances.
23. The picture was bright enough.
SOUND QUALITY
24. Was the sound clear?
25. The sound level was pleasant?
26. There was no disturbance from the ambient noise
OVERALL PRESENTATION
27. The cinema was clean and comfortable
28. The film presentation went smoothly and was enjoyable.
Getting to know you ..
FULL NAME : ___________________________________________________________
ADDRESS

: ___________________________________________________________ POSTCODE___________________

TELEPHONE : _____________________ E-MAIL : _____________________________


OCCUPATION / COMPANY NAME : ______________________________________REFERRED BY : ______________________

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