ZOdiAC Mini Plex Problem Statement The entertainment industry is booming since last many years and particularly the theatres we can find full of on Friday(s). But the rest of the days the multiplexes do not even able to meet their break even. The Miniplex concept thats why been introduced first time in India. The awareness of the same is presently required to be tested amongst the consumers. The liking of the Miniplex theatres is also needs to be known to be successful in the market. Research Objectives Primary Objectives Identifying the feasibility of setting up a miniplex at Chandkheda(Ahmedabad) Identifying the awareness of the Miniplex concept Preparing financial map of setting up such venture. Secondary Objectives Identifying the liking of the consumers towards the Miniplex theatres Identifying the frequency of the consumers towards visit of the theatres Identifying the amount spend by the consumers towards the theatres Identification of the most visited theatre and the reasons for the same in the city of Ahmedabad. Identification of the most important parameters for visiting the theatre Identifying the liking of other purposes of the theatre apart from movies Nature of Research Research is descriptive and conclusive in nature. Research will be done mainly to identify the consumer preference towards the Miniplex theatres against the Multiplex.
Research Instrument In this project research instrument which will be used vitally is structured questionnaire Analysis Statistics tests like chi-square, cross tabs, factor analysis, correlation, and KS test will be used to analyze the data. Computer software Statistical Package for Social Science (Version 17.0) and Microsoft excel will be used to analyse the data. Data Sources Primary Sources Sample Universe: - Residents of the area of Chandkheda. Sampling Size: - For the purpose of research the sample size would be 300 people. Sampling Method: - Stratified Convenience Sampling Method. Where the strata are Students and Working class people Secondary Sources Past records & financial statements of K Sera Sera. Beneficiaries The research will benefit most to the researchers to understand the entertainment market and consumers. Apart from that the research will be useful for real estate agents, new project developers etc. Qualifications Of the Reseacher Jaydeep Patadiya B.Com, MBA (Mktg- Pursuing) Rahul Goyal B.Sc (Mathematics), MBA (Mktg- Pursuing)
2.2.1 1940s
Hindi Film Industry saw many great artists like Prithviraj Kapoor and Dilip Kumar during this period of pre-independent and independent India. The battles against the Britishers during this era made lots of filmmakers to make patriotic films. The expression against the British Empire was very much visible in Dilip Kumars Shaheed(1944), Andaaz, Jwar Bhata, Sunhere Din and Jugnu are some of the other significant films released during this period.
2.2.2 1950s
This era was dominated by great and unforgettable artists like Raj Kapoor, Guru Dutt, Dev Anand, Nargis, Meena Kumari and Ashok Kumar. In the later part of 1950s Sunil Dutt and Kishore Kumar dominated the Hindi Film Industry. Rural India was portrayed in this era. The farmers struggle and their uprising against the landlords for social equality was a dominant factor of this era. During this times humour also started making its way in the Hindi Film Industry as Kishore Kumars Chalti Ka Naam Gadi did wonders as the Indian population wanted to laugh after painful 200 years of freedom struggle. In 1957, Mother India became the foremost Indian film to reach the Oscars in the Best Foreign Film category Hulchul, Aan, Jagte Raho, Naya Daur, Kaagaz Ke Phool and Baijuare some masterpiece of this era.
2.2.3 1960s
During this decade, Rural India was left in the wake of India being looked upon as a rising nation. Improvement of law and order in the country was the need of the hour thus films like Kala Bazaar and Kanoon dealt with this subject. Later in this decade, flashing vintage cars and multi-coloured attires became integral parts of Hindi films as India was slowly but steadily entering the world of fashion. Mughal-e-Azam, Sahib Biwi Aur Ghulam, Guide, Jewel N. R. Institute of Business Management 6
ZOdiAC Mini Plex Thief, Ram Aur Shyam, Aradhna and Barsaat Ki Raat are some of the most momentous films of this period.
2.2.4 1970s
This decade was largely dominated by artists like Rajesh Khanna, Amitabh Bachchan, Hema Malini, Jaya Bhaduri, Dharmendra and Manoj Kumar. Films like Reshma aur Shera, Seeta Aur Geeta, Abhiman, Bawarchi, Aandhi, Golmaal, Anand, Mera Naam Joker, Hare Krishna Hare Raam and Purab Aur Paschim are some of the most significant films of this era. It was in this era that Amitabh Bachchan got the title of Angry Young Man of Indian Cinema with some of his great films like Zanjeer, Sholay, Amar Akbar Anthony, Don and Kaala Pathar. This era also saw the western influence on the Indian society with films like Hare Rama Hare Krishna and Purab Aur Paschim.
2.2.5 1980s
During this decade the concept of Angry Young Man continued as lots of films were made showing one man fighting against the injustices of the society. This era also saw some other great artists like Anil Kapoor, Rishi Kapoor, Sanjay Dutt, Aamir Khan, Kamala Hassan, Sridevi,Madhuri Dixit, Vinod Khanna, Meenakshi Shishadri and in the later parts of this decade Salman Khan made an entry with a huge hit Maine Pyar Kiya. This decade had mixes of comedy, musical and family oriented films. Namak Halal, Chasme Baddoor, Angoor, Namkeen, Jaane Bhi Do Yaaro, Naukar Biwi Ka, Chaalbaaz, The Burning Train, Disco Dancer, Mr India and Jaane Bhi Do Yaaro are some memorable films of this time.
2.2.6 1990s
Romance and family oriented films were the flavour of this decade with bits and pieces of comedy films, war films and films based on life in underworld contributing to the success of many artists of this decade. Shahrukh Khan, Salman Khan, Kajol, Rani Mukherjee, Priety Zinta,Akshay Kumar dominated the Hindi Film Industry in this decade. Shahrukh Khan became the next super star with his some of the unforgettable romantic films like Dilawalwe Dulhaniya
ZOdiAC Mini Plex Le Jayenge, Dil To Pagal Hai, Kuch Kuch Hota Hai, Mohabattein and Pardes in this decade. Darr, Hum Aapke Hai Kaun, Dil, Beta, Deewana, Khuda Gawah, Karan Arjun, Rangeela, Hum Saath Saath Hain, Hum Dil De Chuke Sanam Taal, Border, Dil Se and Satya are some of the prominent films of this period.
2.2.7 2000s
Dominance of Hrithik Roshan, Abhishek Bachchan, Aishwariya Rai, Ranbir Kapoor and Sonam Kapoor continues as this decade is coming to an end. This decade saw lots of films being made on issues of terrorism. Films like Monsoon Wedding and Bollywood Hollywood appealed the NRI audience who are increasing in numbers day by day. Thus a new concept of Hinglish cinema became popular among the young generation. Films like Lagaan, Munaabhai MBBS, Lage Raho Munnabhai, Gadar Ek Prem Katha, Lagaan, Dil Chahta Hai, Kabhi Khushi Kabhie Gham, Koi Mil Gaya, Kal Ho Naa Ho, Devdas, Saathiya, Veer Zaara, Main Hoon Na, Krrish, Om Shanti Om, Taare Zameen Par Chak De India, Ghajini are some of the memorable movies of this decade. This is the decade when attitude of the filmmakers and audience opened and films were made on issues which no one would have considered ten years ago. This decade would be remembered for A.R. Rehman who received an Oscar in the early 2009.
"Films" has been one of the integral components of the Indian entertainment industry contributing nearly 27% of the total revenues of the entertainment industry. Besides, films also contribute to other components of the entertainment industry like music, television and live entertainment. The Indian film industry is one of the most complex and fragmented national film industries in the world comprising of a number of regional film industries like Hindi, Tamil, Telugu, Kannada and others. The Hindi film industry is the most popular among them. Though India produces the largest number of films in the world (Approximately 1000 per year), it accounts for only 1% of the global film industry revenues. In spite of being over 90 years old, the Indian film industry was accorded the status of industry only in 2000. Over the years, the Indian film industry has been highly unorganized as film financing was dependant on private and individual financing at extremely high interest rates. Only recently, the industry has got access to organized finance.
With vertical integration taking place between producers, distributors, exhibitors, broadcasters and Music Companys corporatization is now taking shape in the Indian film industry. We believe, that corporatization, will bring about transparency, accountability and consolidation which will help to improve the overall profitability of the Indian film industry as well as reduce piracy and leakages which presently account for 14% of the Indian film industry's revenues.
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Such has been the runaway success of this cinema viewing experience that today, even though multiplexes make up just 2% of Indias nearly 11500 screens, they account for more than half the box office revenue of Hollywood releases in the country and more than a third for Bollywood. That success, however, has not been limited to the glitzy cinema halls.
Industry analysts say that multiplexes, with their smaller halls, have also redefined filmmaking by creating a niche for experimental cinema among urban, educated audiences.
Multiplexes, where ticket prices are five times that at a single-screen cinema, ensure a faster return on investment for producers and, because of quick turnarounds, have become instrumental in raising the output of films, he said. The idea now is to recover investments within the first weekend, said Bose, who has authored several books on Bollywood.
Independent film-makers like Madhur Bhandarkar agree, saying multiplexes have proved to be a blessing as many recent hits would never have been made if it were not for them. Exhibitors would never run my films in a 1,000-seater hall, said Bhandarkar, a leading director known for his unconventional films. For businessmen who kept their faith in movie halls and invested in multiplexes, it has been a gamble that paid off. They have thrived on the back of tax incentives over the last five years, and are now looking to expand, according to industry group Ficci. Aiming to widen their base in search of greater profits, they are now moving to smaller cities and towns, where operating costs are lower, allowing for greater flexibility in ticket pricing. Multiplexes will first reap the more lucrative markets reap the low hanging fruit firstand then move on to the smaller markets, said Deepak Asher, director of multiplex operator Inox. It is just a question of time before multiplexes hit the B and C towns big time. While PVR Ltd, the pioneer, has about 70 screens, Inox has about 50. Adlabs Films Ltd, which branched out from film processing to multiplexes, plans to have about 80 screens by 2007-08. N. R. Institute of Business Management 11
The multiplex industry is expected to grow more than 44% to $220 million by next year, according to a recent report by brokerage B&K Securities. The overall Indian film industry, now worth about $2 billion, is expected to grow to $4.3 billion by 2011, Ficci says.
While more and more single-screen cinemas are converting to multiplexes in cities, they still remain the entertainment mainstay for millions in small towns and villages. They are also popular with the urban poor because of their cheaper tickets. Analysts say high ticket prices have also meant that average occupancy levels in multiplexes have hovered at around 40%. They say that as multiplexes mushroom and begin cutting into each others territories, occupancy levels could plummet to 30%. This could mean the multiplex boom is a bubble that will burst unless ticket prices are brought down,
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In the buoyant times; people tend to spend more on the leisure based consumption. For the multiplex sector, the target group is in the age group of 15-60 years of age, which visits the theaters more often than others.
ZOdiAC Mini Plex consumption winning over value proposition in India. As content supply booms, more and more people will turn to multiplexes because of the rising willingness of people to pay for such services.
Most of the single screen theatres are run by single proprietor, often without proper operational management skills. Moreover, because of the poor quality of prints supplied to the single screen theatres in the rural areas, footfalls have been coming down. On top of it, these screens are not eligible for entertainment tax exemptions. These factors have eroded the viability of these screens resulting in poor infrastructure spend which further reduces footfalls.
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However, we believe that there is enough room for all to exist and grow simultaneously. A case in point is US, where almost all forms of entertainment are present and have been well received by the consumers. Even then, footfall growth hasn't halted over there. Moreover, there might be possible synergies among these formats which might benefit multiplexes, e.g. showing of IPL matches on cinema screens.
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Our interaction with the management at various multiplex chains indicates that all operators experienced low occupancy rates during the quarter. Given the fact that the DLF IPL is here to stay as a property, at least in the foreseeable future, we believe that low occupancy levels would characterize the first quarter performance. However, we also believe that going forward, once the
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ZOdiAC Mini Plex novelty factor wears off, and multiplex operators would be able to progressively improve their occupancy levels.
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ZOdiAC Mini Plex There were times when people were almost crazy about various facilities of multiplex and they were ready to pay high sum of money in order to get the experience of a multiplex. But, times have changed; now people are no longer attracted by the games zone or waiting lounge or food court. What matters for them is the quality of movie viewing experience & cost of the ticket. High ticket cost at the Multiplexes is discouraging the movie viewers. People now want a medium where they can enjoy quality movie viewing experience. Miniplex here provides a perfect solution for this problem. Although, the size of miniplex is small, the fun, enjoyment & feel of the multiplex or any big screen size theatre still prevails.
3.2 Benefits
Due to less infrastructure cost, the cost of the ticket is also lower. Mass acceptance is almost guaranteed across all socio economic strata. Operational cost is 60% lower per seat as compared to any multiplex Maximum utilization of limited resources is possible It provides 100% multiplex feel with 50% lower cost.
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ZOdiAC Mini Plex To develop a highly successful, profitable entertainment business chain, providing service of movie exhibition at an affordable cost for the community.
4.5 Advantages Operational cost per seat is 60% lower. Provides 100% multiplex at 50% lower cost. Low cost to viewers Opportunity to reach mass market across all towns and cities. Optimum utilization of the infrastructure shall be ultimately boost the Return on
Investment(ROI)
Payback period can be achieved within a far smaller period as compared to large
multiplexes.
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CHAPTER 5 Location
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ZOdiAC Mini Plex Location is one of the most important factors for operating any business successfully. An ideal location for our miniplex would be Chandkheda. There are a lot of reasons behind the same which are as follows: Currently there are no theatres in Chandkheda as well as its surrounding areas like Sabarmati, Zundal, Adalaj, Sardar Patel Ring Road, etc. Chandkheda is considered one of the hottest destinations from realty point of view. As a result of which there is a lot of township projects who are just about to get completed as well as a lot of other township projects which have started. These projects have a potential of accommodating lakhs of people. As a result of which we will find huge rise in population of Chandkheda. This would increase the target market segment for our miniplex. Chandkheda is one of the most heterogeneous localities of the city. You can easily get population of almost all the income groups; which can be segmented. The nearest locality from our location is New C. G. Road which is considered as one of the sought after residential areas of the city. Vishwa Karma Engineering College & IIT Gandhinagar are two colleges which are almost next to our location. These colleges have thousands of students studying in it as well as living in hostel nearby our location. These students are the major target segment of our miniplex. New projects like Dubai World Mall, 4D Square, etc. are coming up in chandkheda. Also there are well established formats like D Mart, Sales India, Balaji Mall, Sangath Mall, etc. which are doing very well. Apart from that there are various restaurants & cafe in Ahmedabad like Mirch Masala, Cafe Coffee Day, Havmor, etc. All these things combine to give a visitor a complete package kind of shopping, entertainment, fun, etc.
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6.1 Segmentation
The segmentation strategy for our miniplex is pretty clear. We have clearly defined our target segment and aim to cater them. It is targeted mainly towards students & middle class income group consumers. Our miniplex with different pricing strategy for different shows will try and cater almost all the sections of people.
6.1.1 Consumer Demographic Segmentation Age: - Out of 300 respondents surveyed we had 78% of the people in the age group of 21 to 40 & almost 19.67% of the people in the age group of below 20. This age group of people are the major target segment for our miniplex.
Income: - Chandkheda is a very heterogeneous locality. It has got the consumers of almost all the income groups. Our target segment comprises of audience under the monthly income group of less than 45,000. Also in our survey we have found out that around 80.95% of the respondents were under the income level of less than Rs. 45,000 per month.
6.1.2 Geographic Segmentation Our miniplex is specifically targeted towards the residents living in Chandkheda, Sabarmati, Motera, Adalaj, Zundal, etc. Also it is targeted towards students of two engineering colleges in Chandkheda who study there, live there, or come there to attend their college.
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ZOdiAC Mini Plex 6.1.3 Consumer Psychographic Segmentation Movie goers of our target segment can be termed as Experiencers who seek variety and entertainment. Since they do not belong to affluent class in terms of income; they seek to strike a balance between household expenses and expense on fashion, entertainment and socializing.
Also they do consist following major tendencies:o Go outside the home for entertainment o Can be easily reached through traditional media o Heavy television and radio users, as well as medium internet users o Receptive to advertising in movie theatre, consider as part of their movie going experience.
6.1.4 Benefits Sought Segmentation 6.1.4.1 WHAT? 1. What benefits that the customer seeks? Complete movie going experience. 2. Factors influence demand? Price, movie, day, time of the day, day of the week, month etc. 3. What function can the product perform for the customer? Entertainment. 4. What are the important buying criteria? Price, ambience, placement, quality service, premium positioning, status symbol. 5. What risks does the customer perceives risk of being overcharged, risk of being in an emergency like fire at the theatre.
6.1.4.2 HOW? 1. How does customer buy the product? Online /Telebooking / In person 2. How long does the buying process take? Simple and prompt 3. How do the various marketing mix elements influence the customer at each stage of buying? (Explained later in the report) N. R. Institute of Business Management 30
ZOdiAC Mini Plex 4. How does product fit in to their lifestyle? Entertainment product for the premium. 5. How much would they be willing to spend? We have decided to keep Rs 70 for all the shows, 6. How much do they buy in one transaction? Almost always more than 1 ticket. Depends upon the number of audience & movie playing.
6.2 Targeting
The whole concept of miniplex is very new in the market and therefore its offering to the customer is Innovative. Our miniplex has affordable pricing and they target mainly middle class income group people. We are trying to bring our customers the experience of Luxury Cinema. We have decided to keep Rs 70 for all the shows.
6.3 Positioning
We have a very well planned market position. Its affordable positioning affects the customers perceptual positioning. Therefore, we have decided on its marketing strategy and pricing, keeping the target market in mind. In case of our miniplex, we will make use of all their tangible elements to prove to their customers that their movie tickets are worth the price they are paying. Our positioning is evident in our mission statement also which says A commitment to provide best quality cinema viewing experience to everyone at an affordable cost.
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Audience nowadays is not attracted by the games zone, or food zone, etc. of a multiplex & high cost of multiplex is discouraging movie buffs. What they want is quality movie viewing experience and it would be an icing on the cake for them if they are able to get it at an affordable price.
If we look demographically than major population of Chandkheda consists of families which belong to middle class & upper middle class income groups. The model of our miniplex is almost perfect to suit their needs. Company Strengths One of the biggest strengths of our theatre is its operating cost, which is almost 60% lower as compared to any normal multiplex theatre. This provides us with an opportunity to set up competitive pricing for our shows, but the sound quality & on screen experience still remains the same. So we can provide all the fun of a multiplex movie experience with almost 50% lower costs. The affordable pricing strategy almost guarantees the mass acceptance.
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ZOdiAC Mini Plex Our Marketing Strategy Is Two Fold First, we must develop a loyal customer base on which to build our business. Second, we must cultivate and expand this customer base to ensure a long lasting and solid relationship with our repeat customers and continued vitality of the business with the addition of new customers.
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ZOdiAC Mini Plex News paper advertising o The news papers like Divya Bhaskar and Ahmedabad Mirror will be used for the print advertisement prior to the day of opening that is 31st July, 2010Saturday. And than once again the same advertisement for the next week. This will cost us around 50,000 Rs. Leaflets o The leaflets will be sent along with Divya Bhaskar news paper will cost around 15,000 Rs. This medium will be used for initial advertisement purpose. Than based upon the response the advertisement strategy will be altered. Banners o The small banners using white cloth will be used initially to make familiar the nearby locality public. This will cost around in total Rs. 35000 for various public locations. This medium will be used for initial 6 months.
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Responses N $Movie_preference
a
Total
25.50%
19.70% 15.50% 10.70%
6.00%
1.50%
(8.1 Movie Preference) From the above graph as well as table we can conclude that out of 300 respondents 605 responses in total were obtained. From those 605 responses Love stories has got the first preference with 154 i.e. 25.5% of the total respondents. Followed by action and reality based movies which got second and third preference respectively. Thus we can say that Love Stories is the most proffered type of movies among respondents. This could be because of the emotional natured culture of India.
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(8.2 TV Connection) The above pie chart shows the results that 64% of the respondents in the locality use the local cable TV connections. That is the positive sign for the new venture because they can not access the specialized services which the DTH providers provide i.e. Movie on demand in which by paying some amount of rupees one can see movie as and when he wants at his home.
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(8.3 Movie on demand) Out of the 300 respondents surveyed 108 respondents use the DTH services and out of that 74% or 80 respondents said that they are not using the movie on demand option. Here there is a positive signal for the theatres around the locality as because people dont find it suitable to watch movies at their home the reason of the same could be because of completed system of ordering movies or the cost of ordering could be high or same as the theatres and therefore to go to the theatres may be suitable option for the consumers.
ZOdiAC Mini Plex respondents were asked about having a computer at their home or not. The options given to the respondents were simply Yes or No.
(8.4 Computer usage) Out of the 300 respondents 299 gave the response of this question and out of those 250 respondents that is 83% respondents said that they are having a computer or a laptop at their home. That is a negative sign for the theatres as because consumers can watch movies in the computers especially the youngsters who are more addicted towards the internet.
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(8.5 Internet Usage) Out of the 300 respondents surveyed 60% that is 179 of the respondents said that they use the internet connection at their premises. This is again shows a negative impact for the theatres as because the user of internet may get influenced of watching a movie by downloading it from the internet. Especially students are regular downloader of the data from the internet.
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ZOdiAC Mini Plex The responses obtained from the respondents can be used to understand the consumers psychology about the internet downloading patterns. The last option was also given to understand the consumers habit of watching movies in spite of having computer and internet connection. The 3D bar graph that reveals the picture is as follows.
(8.6 Movie downloads habit from internet) The above bar graph reveals that 217 respondents responded to this question and among them 28 % that is 60 respondents said that they visit theatres to watch movies instead of downloading the movies from the internet followed by third option that is I dont download at all. Here it again shows the positive response towards the theatres as because respondents prefer theatres. The reason of the same could be lack of time or lack of knowledge or it can be because of sound and video quality along with fun and shopping facilities at the malls and multiplexes.
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Q5_Intern et Total
yes no
178 39 217
(8.2 Cross tabs of internet usage*movie download pattern) The cross tabulation result reveals that 19% of the people, who has internet connection, download movies regularly from the internet. Out of all respondents 62.35% of the respondents do not prefer to download movies from the internet and 38% of those 62.35% respondents prefer to watch movies only in the theatre. The result over here turns out to be that there is no significant difference in the number of respondents who prefer to watch movies only in the theatre and the respondents who download movies regularly from the internet.
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(8.7 Members of video library) Here we observe that none of the respondents is the member of any video library. This may be because there are no video library in Chandkheda and its surrounding localities or may be because respondents are not aware of the concept of video library or may be people are not inclined towards it.
(8.12 Mode TV channel) Here we observe that theatre is the most preferred mode of watching movies among the respondents. The second most preferred option among respondents is VCD/DVD purchase. With the availability of Pirated VCDs & DVDs any new movie released is easily available to the respondents and that to at a very cheap rate and thus this option is also very highly preferred. In case of watching movies at home since on Local Cable TV channels; operators these days tend to show the newly released movie which also plays an important role in the final expense of an individual towards theatre. As far as ordering movies through DTH is concerned it is clearly visible that respondents rarely prefers it.
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ZOdiAC Mini Plex 1 = Once in a week 2 = Twice a month 3 = Monthly 4 = Once or Twice in Six Month 5 = Once or Twice in a year 6 = I go for every new movie release
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(8.14 Frequency of Professionals) Here researcher has tried to compare the frequency patterns of students with that of the professionals. It is based upon the assumption that since professionals have hectic schedules their frequency pattern tends to differ from that of the students. We observe that approximately 32% of the students & 31% of the professionals tend to watch movie at least once in a week. This shows that these two strata does not differ significantly in terms of watching one movie at least a week. Also approximately 35% of the students & 36% of the professionals tend to watch at least two movies in a month. Again there is no significant difference between the two strata when it comes to watching movies at least twice a month. Same is the case when it comes to watching movies monthly, once or twice in six months, once or twice in a year. Both the strata show almost the same frequency even in the case of going for every new movie release. N. R. Institute of Business Management 50
ZOdiAC Mini Plex Thus, from the above responses it can be safely concluded that students & professionals exhibit the same pattern when it comes to the frequency of watching movies in the theatre.
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(8.16 Frequency of Professionals for DVD purchase) In the case of Purchasing VCD/DVD there is a noticeable difference between students & professionals. While 27% of the students tend to purchase VCD/DVD at least once in a week; on the other hand only 21% of the professionals tend to do the same. When it comes to purchasing VCD/DVD at least twice in a month; professionals with 33% show greater tendency then students with 29%. Same is the case when it comes to purchasing VCD/DVD monthly. Professionals again with 28% show higher preference than students with almost 22%. But when it comes to purchasing VCD/DVD once or twice in six months & once or twice in a year both the strata has equal number of respondents. Thus, it can be said that professionals do tend to purchase more VCD/DVD then students.
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ZOdiAC Mini Plex In the case of DVD/VCD rental; students & professionals differ from each other in many aspects. When it comes to having rented DVD/VCD weekly; students with 30% nudge ahead of the professionals with almost 26%.But, in the case of having a rented DVD/VCD twice in a month students with 16.21% show very less tendency as compared to professionals, where almost 36% of the professionals tend have it. The frequency pattern of renting DVD/VCD monthly is almost same for both students & professionals. But again when it comes to frequency pattern of buying DVD/VCD once or twice in six months students with 16.21% show much higher tendency than professionals with 6.45%. The same case has been observed when it comes to having rented DVD/VCD once or twice in a year. Zero response from professionals in the case of renting DVD/VCD for every new release clearly shows that they are not inclined towards renting DVD/VCD as much as students. Thus here we can safely assume that students are more likely to rent a DVD/VCD than professionals.
(8.20 Frequency of Professionals for DTH) Now in the case of ordering movies via DTH only 6 out of the 150 students & 8 out of 150 professionals mentioned that they use this medium. Although the number of responses are not sufficient in order to conclude anything we can still say that as per the responses obtained professionals are more likely to order movie via DTH then students.
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ZOdiAC Mini Plex To start with there is a huge difference between the numbers of respondents who prefer to watch movie on TV channels. Students here have higher frequency of watching movies on home at TV channels as compared to the professionals. There is almost no difference in terms of percentage of respondents in both the strata in case of watching movies home on TV channels weekly. There is somewhat difference in the frequency for twice in a month. Here again students tend to show higher frequency as compared to the professionals. In rest of the cases also we observe that students show higher frequency of watching movies on TV channels as compared to professionals.
ZOdiAC Mini Plex The histogram of the expenses on theatre reveals that 43% of the respondents spend less than 300 rs and 37% of the respondents spend between 300 to 600 rs on then theatres. That shows that people of Chandkheda spend very low amount and therefore low cost theatre can work out very well in this area.
8.8.7 Correlation
Now here we try to find out strongly Monthly Family Income, Frequency of Visiting Theatre and Expenses of Theatre are correlated.
Correlations Monthly_Famil Q8_expnse_the Q8_freqcy_The y_Income ater ater Monthly_Family_Incom Pearson Correlation e Sig. (2-tailed) N Q8_expnse_theater Pearson Correlation Sig. (2-tailed) N Q8_freqcy_Theater Pearson Correlation Sig. (2-tailed) N
**. Correlation is significant at the 0.01 level (2-tailed).
.227** .000
293 .227
**
268 1
269 1
270
Here we observe that there exists a positive correlation between monthly family income & expense in the theatre, as well as monthly family income & frequency of theatre. Also we observe that the value correlation between expense in the theatre & monthly family income is 0.227 which is far higher than correlation value between monthly family income & frequency of theatre (.083). So we can say that there is stronger correlation between expense of theatre & monthly family income as compared to monthly family income and frequency of visiting theatre.
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0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Q9_family .4100
.8533
.1300
.1600 .0700
Q9_friends
Q9_relatives
Q9_spouse
Q9_alone
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ZOdiAC Mini Plex The above bar graph shows that 85% of the respondents said that they would prefer to visit theatres along with their friends followed by families that turnout to be the 41% . The very less response is given to the spouse and that is only 16% respondents prefer to visit theatre with spouse. That might be because majority of the respondents who are surveyed, are unmarried.
ZOdiAC Mini Plex . Theatres K_sera_sera R_world Cinemax Adlabs Wide_angle Red_carpet Devi City_pulse City_gold Fun_republic Others Total 1=Highest Visited 2=2nd highest visited 5 0 28 31 35 35 49 31 69 78 12 16 3 0 7 17 35 41 44 47 13 4 300 300 (8.4 highly visited competitor) 3=3rd highest visited 12 26 41 21 37 15 8 30 47 60 3 300
The weighted mean will be calculated by assigning values like 0.3 to the 1st ranked, 0.2 to the 2nd and 0.1 to the 3rd ranked theatre. Then the formulae for the which will be used to calculate mean will be as follows. Weighted Mean= 0.3*n1+0.2*n2+0.1*n3 300
Where, n1=number of respondents who gave 1 to the particular theatre n2= number of respondents who gave 2 to the particular theatre n3= number of respondents who gave 3 to the particular theatre The weighted mean for all the theatres and the overall rank of all the theatres are given in the following table.
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ZOdiAC Mini Plex Theaters Weighted Mean Rank Wide_angle 0.1333 1 Fun_republic 0.095 2 City_gold 0.078 3 Adlabs 0.076 4 Cinemax 0.072 5 R_world 0.057 6 City_pulse 0.028 7 Red_carpet 0.027 8 Others 0.016 9 K_sera_sera 0.009 10 Devi 0.0056 11 (8.5 Waighted mean for highest visited theatres) The above table that shows that Wide Angle is the top most visited theatre by the respondents though it is far away from the Chandkheda area with the weighted mean of 13.33% followed by the Fun republic and City Gold with 9.5% and 7.8% respectively. Adlabs has been ranked 4th by the respondents for visiting the theatre. The reason for visiting these top most theatres could be because of the sound and video quality, low cost, food court, gaming zones etc. The Gujarati people are fascinated towards the Khava-Piva and Farva and that facility plays major role to increase footprints in the theatres.
ZOdiAC Mini Plex Food Court Shopping facility is also available Because its near to my residence I like the audience coming to that theatre
(8.25 High sound and video quality) The above histogram reveals that the major reason for visiting the Wide Angle is its high sound and video quality with 2.17 mean that is the least among all the options. Also we can see from the histogram that the normal distribution curve is positively skewed with 1.613 that is highest N. R. Institute of Business Management 63
ZOdiAC Mini Plex among all the options and that reveals that the data are far on the 1 and 2 ranking side from the mean and gives 1st rank as the reason of visiting the Wide Angle theatre. Therefore we should more focus towards the high quality sound system and high quality projectors.
(8.26 Comfortable chairs) The above histogram reveals that the comfortable seating arrangement as well as chairs is the 2nd best reason to visit Wide Angle, Fun Republic or City Gold theatres. The mean of comfortable sitting arrangements is turn out to be 2.78 with 1.523 standard deviation. The histogram shows the normal distribution curve to be positively skewed towards the 2 and 3 rankings hence we can conclude that its a second best important feature for a theatre.
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(8.27 Affordable cost) The above histogram for affordable cost reveals that the 3rd major reason to visit the top three theatres is its affordable ticket pricing with the mean of 3.45 and standard deviation of 1.945. The prising of Wide Angle is costly compared to all the other theatres but still its highly visited the reason of that can be because of the high quality sound system of the theatre. The 2nd most visited theatre is Fun Republic which is running at cheap rates of ticket compared to other theatres and that can be the major attracting parameter for consumers.
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(8.28 Games zone) The above histogram for gaming zones reveal that the consumers do not have inclination towards the games facilities at the theatres and got the 7th ranking reason for visiting the theatres with 5.91 mean and 1.698 standard deviation. We can see from the histogram that the normal distribution curve is negatively skewed with -0.71 value.
(8.29 Food court) The above histogram for food court reveals that the consumer does not have special inclination towards the food court with 5.54 mean and 1.697 standard deviation and got the 6th rank as a preference to visit a theatre frequently. The reason of that could be very high cost of items available in the theatres. Generally the prises of the cold drinks increase by 50% from normal prises. Thats why people will prefer to complete Pet Pooja earlier and than they prefer to visit the theatre as they are also aware about the show timing.
(8.30 Shopping facility) The result of the shopping facility is turned out to be the positive as there is very least importance given by the respondents towards the shopping facility as a reason for visiting the theatre with the mean of 6.26 and the standard deviation of 1.595. From the above histogram we can see that the normal distribution curve is negatively skewed and that concludes that the shopping facility has got the 8th ranking.
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(8.31 Distance from home) The above histogram for the nearness of the theatre as an important criterion has got the highest values on 4, 5 and 7 rankings and it has got the 4th rank in overall ranking as its mean turned out to be the 4.8 with the standard deviation of 2.224. The importance of location has got the moderate importance. From the above graph we can see that the normal distribution curve is slightly skewed towards left. And there for we can conclude that the location proximity has got the moderate important reason for visiting a theatre.
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(8.32 Relevance of audience) The above histogram for the liking of audience at a particular theatre has got the mean of 5.07 with the standard deviation of 2.162 and the normal distribution curve is also slightly skewed towards the left. Hence, we can conclude that the audience parameter has got the moderate importance for visiting a theatre frequently. This could be the reason because people do not pay much attention towards the other audience of the theatre. Descriptive Statistics N Mean Std. Deviation Skewness Std. Statistic Error 1.613 .142 1.205 .142 .498 .142 -.710 .142 -.378 .142 -1.083 .142 -.221 .142 -.066 .142
Statistic Statistic Rank Statistic High_sound_video 296 2.1723 1.0000 1.38541 Sitting_arrangement 296 2.7838 2.0000 1.52289 Affordable_cost 296 3.4459 3.0000 1.94076 Games 296 5.9088 7.0000 1.69799 Food_court 296 5.5372 6.0000 1.69705 Shopping 296 6.2568 8.0000 1.59500 Nearness 296 4.7973 4.0000 2.24427 Audiance 296 5.0743 5.0000 2.16158 Valid N (listwise) 296 (8.6 Descriptive statistics for frequent visit) N. R. Institute of Business Management
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ZOdiAC Mini Plex The above descriptive statistics table shows entire discussion about the reason of visiting the most frequent theatres, that is Wide Angle, Fun Republic, and City Gold. The 1st reason is because of the high sound and video quality followed by comfortable sitting arrangement and affordable cost respectively as 2nd and 3rd reason. The fourth reason is the proximity from home and the fifth reason is the kind of audience coming to the theatres. From the above result we can conclude that we have to focus more on sound & video quality and comfortable seats. The location proximity for Chandkheda area will be an added advantage.
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ZOdiAC Mini Plex KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Bartlett's Test of Sphericity Approx. Chi-Square Df Sig. (8.7 KMO test) For analysis of this question we have used Kaise Meyer olkin (KMO) measure of sampling adequacy. This index compares the magnitudes of the observed correlation coefficients to the magnitude of the partial correlation coefficients. Generally for doing factor analysis KMO value of greater than 0.5 is desirable. Here since we obtain KMO value of 0.763; thus we can proceed for factor analysis. .763 719.230 55 .000
Total Variance Explained Initial Eigenvalues Total 3.236 1.788 1.124 .879 .807 .686 .641 .529 .511 .425 .373 % of Cumulativ Variance e% 29.422 16.258 10.217 7.994 7.333 6.237 5.829 4.813 4.644 3.862 3.390 29.422 45.681 55.898 63.892 71.225 77.462 83.291 88.104 92.748 96.610 100.000 Extraction Sums of Squared Loadings Total 3.236 1.788 1.124 % of Cumulativ Variance e% 29.422 16.258 10.217 29.422 45.681 55.898 Rotation Sums of Squared Loadings Total 2.404 2.118 1.626 % of Cumulativ Variance e% 21.857 19.255 14.786 21.857 41.112 55.898
Com pone nt 1 2 3 4 5 6 7 8 9 10 11
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Component Matrixa Component 1 Sound_quality Screen_size Comfortable_chai rs Lighting Personalized_serv ice Shoping Food_court Games_zone Cost_of_ticket Distance Advance_bookin g .560 .533 .483 .668 .708 .601 .677 .537 .267 .268 .455 2 -.070 .133 .429 .186 .029 -.470 -.381 -.601 .551 .620 .363 3 -.624 -.564 -.038 -.054 .273 .199 .177 .174 -.043 .463 .144
Rotated Component Matrixa Component 1 Sound_quality Screen_size Comfortable_chai rs Lighting Personalized_serv ice Shoping Food_court Games_zone Cost_of_ticket Distance Advance_booking .208 .085 .057 .331 .574 .781 .772 .809 -.171 -.029 .144 2 .035 .200 .578 .480 .485 .013 .115 -.131 .559 .779 .572 3 .814 .756 .285 .380 .108 .101 .160 .087 .189 -.250 .109
Extraction Method: Principal Component Analysis. a. 3 components extracted. (8.9 Component matrix)
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a. Rotation converged in 4 iterations. (8.10 Rotated Component matrix)
Now with the help of rotated component matrix we can reduce the factors. By using Varimax with Kaiser Normalization rotation method, we found out that there are three important factors. Now from the above column of 1, 2, & 3 we have to select from each column the factors whose value is greater than 0.5 & the remaining factor(s) form a new factor all together.So, from the above we have obtained the following table
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In Movie Experience
Valued Variables
ZOdiAC Mini Plex Night ( Between 9 pm till midnight) The respondents were given option to select multiple options because the most preferred show timing can be more than two and it also depends on convenience. The result of this question can be used as deciding on focusing a particular show as the main revenue generation show timing. The analysis of the same according to strata is as follows.
.6000 .5000 .4000 .5436 .3000 .3758 .2000 .2685 .1000 .0805 .0000 Morning Noon Matinee Evening Night .2685
(8.33 students most preferred show) The above bar graph shows that out of 150 students surveyed, 149 gave response about the show timings and out of them 54% students that is 81 students like to see movies in the morning show and they have seen movies in the morning show. The second best time is noon followed by evening and night as the same position. This result could be because of the reason that the students have very limited pocket money and because of that they prefer morning cheap shows that cost them around 40 to 50 bucks only. The reason for the same could be to bunk the classes and enjoy with their friends at the theatre. This is the normal mentality of the students.
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.4000 .3500 .3000 .2500 .2000 .1500 .1000 .0500 .1000 .2267 .3600 .3933 .3867
.0000
Morning Noon Matinee Evening Night
(8.34 professionals most preferred show timings) The above bar graph for the working class people for the preference of show timings reveals that out of the 150 people surveyed 39% people said that they visit the theatre at evening shows followed by the night shows and morning shows respectively. The result of evening and night shows is turn out to be the equal that could be because of non availability of time during the day time. The cost of the ticket is not a major issue for them as they earn by themselves.
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.5000 .4500 .4000 .3500 .3000 .2500 .4515 .3010 .3311 .3278
.2000
.1500 .1000 .0500 .0000 Morning
.0903
Noon
Matinee
Evening
Night
(8.35 overall preference for show timings) The above bar graph shows the overall preference for show timings of the entire sample. Out of the 300 respondents 45% of the respondents prefer the morning shows while the evening shows and night shows got 2nd and 3rd preference with the means of 33.11% and 32.78% respectively. The reason of the same could be the low cost of ticket in the morning time. As the Chandkheda area is not a posh area like Satelite and Navrangpura, the income level of people is quiet low compared to the other areas of the Ahmedabad. There for people would like to compromise with the timings. The working class people have to reach their offices at around 10.30 AM to 11.00 AM and there for morning show of 7.00 AM to 10.00 AM would be suitable for them also with the low pricing of tickets.
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Here we can clearly observe that students tend to prefer morning shows more than the professionals. Also we can observe that major reason for the students behind the same is low cost of the ticket. Although 45 out of 51 professionals have also said that they prefer morning shows; but total preference of professional class towards morning shows is far less than that of the students. Hence it wont be wrong to infer that professionals are less likely to compromise with show timings for the benefit of low cost of the movie.
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ZOdiAC Mini Plex Almost same pattern follows when it comes to noon shows. Most of the students prefer this timing because they find this time pretty convenient. This may be because students can come to watch movies once their college gets over in noon. But, since most of professionals are busy with their jobs during noon; it becomes almost impossible for them to watch movie during that time. Since there are very theatres which provide low cost tickets even during noon time; there is relatively low response for low cost during noon shows.
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ZOdiAC Mini Plex Here researcher found out that almost 38% of the people are aware of the miniplex. This is quite a significant number considering the fact that it has started just a few months ago.
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(8.41 Visit of theatres apart from movies) From the above questions 383 responses were obtained. Various film festivals was the most preferred option with the frequency of 137 followed by live matches with the frequency of 108. Here it can be inferred that even though showing live matches seems to be a very lucrative option (especially in the cricket season); but consumers may still be more inclined towards watching movies in the theatre. But speaking in the favour of telecasting matches it can be argued that since this whole thing is still quite new to the people. Also adding to the same point; since we have such a cricket frenzy crowd their lies a potential of building preference among consumers over a period of time. Thus, it can be safely assumed that screening various films during special occasions & showing live matches seem to be very likely alternatives by which a theatre can survive even in turbulent times.
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(8.43 Morning show preference for professional) Since more than 50% of the people from both the strata have given positive response for this question; we can say that this strategy may work out really well for the miniplex. Now we do the cross-tabulation between the people who say that they would like to watch an early morning show with their family monthly income. The main rationale behind this is to find out whether their decision was completely based on low cost of the ticket or whether they really liked the innovative idea or whether they would like to try out new show timings
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Q17_morning_time * Monthly_Family_Income Crosstabulation Count Monthly_Family_Income less than 15,000 Q17_morning_tim Yes e NO Total 43 33 76 15,000 to 30,0000 58 43 101 30,000 to 45,000 37 24 61 above 45,000 19 37 56 Total 157 137 294
(8.13 Crosstab 0f morning time*family income) Results clearly show that most of the respondents falling in first two income groups (i.e. less than 15,000 & 15,000 to 30,000) have shown their readiness to come for an early morning show for low cost of the ticket. First two category responses constitute about 64% of the total people who have agreed to come for an early morning show. The readiness for the early morning show steadily decreases as we move up in the higher income level group (i.e. above 45,000).So it wont be wrong to say that their decision is mainly based upon the cost of the ticket rather than trying out new innovative timings of the show. Hence we say that cost of the ticket plays a very important role while deciding upon a show to watch the movies.
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ZOdiAC Mini Plex Here we observe that around 50% of respondents of both the strata are not ready to compromise with the screen size for the low cost of the ticket. Only 30% in student strata & 34% in professional strata have shown their readiness to compromise for the screen size for the cost of the ticket.
Q18_screensize_vs_cost * Q14_Miniplex Crosstabulation Count Q14_Miniplex Yes Q18_screensize_vs_cos Yes t No Cannot say Total 37 57 18 112 No 55 92 34 181 Total 92 149 52 293
(8.14 crosstab of screen size vs cost*miniplex awareness) Now we do cross tabulation between the respondents who have disagreed to compromise with the screen size with the knowledge about miniplex. As mentioned earlier around 62.03% of the people are not aware of the concept of miniplex. From the above cross tabulation we can clearly see that 92 out of 149 respondents, who have said that they are not ready to compromise with screen size of the theatre for the low cost of ticket, are actually not aware of the concept of miniplex. That is around 62% of the respondents who have disagreed are not aware of miniplex at all. While only 38% of the respondents who are aware of the concept of miniplex are not ready to compromise The results might have initially signalled that people may not like miniplex because of its small screen size. But speaking in favour of the miniplex we can definitely argue that since most of the respondents have not experienced miniplex their result may be biased. Since in miniplex the entertainment of the theatre still prevails; we can say that it has the potential and the preference of the people can change in the favour of miniplex after experiencing it once.
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(8.47 audience vs cost for students) From the above results it is pretty clear that that size and the nature of the audience is not an important factor for the people. They are ready to come to the theatre regardless of its capacity. It can also be concluded that people are ready to visit the small theatre given the benefit of the cost of ticket. An important reason behind this can be that for most of the people it does not matter who are the other people in the theatre; but what matters is their companions with whom they have came to see the movie. If people enjoy watching movies with their friends, relatives, spouse, family, etc. than size of the theatre does not matter to them.
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(8.48 First week) The histogram of watching a movie in the first week when it has been launched shows the mean of 2.79 with 1.499 standard deviation. The maximum values of 77 and 76 are on the 1st and 2nd ranking. The normal distribution curve also shows the curve to be normally distributed and overall ranking it has got is 2nd or 3rd preference.
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(8.49 wait and watch) The histogram of wait for reviews and than watch movies has got the 1st preference among all the options with the mean of 1.94 and standard deviation of 1.20. This shows that consumers are very conscious about spending money on entertainment irrespective of their income level. The curve of normal distribution also is positively skewed with maximum 1st rank given by 149 respondents.
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(8.50 DVD rental) The above histogram of going to get a DVD on rent to see the movie at home has got the least preference with 3.73 as mean and standard deviation of 1.21. The curve is also negatively skewed and from that we can conclude that it has got 4th or 5th ranking preference among the respondents.
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(8.51 Praised than visit) The above histogram shows that it has got overall 2nd or 3rd preference to watch a movie. As described earlier that the highly praised movies are the main source to increase the revenues in the theatre. There for Bollywood and Hollywood should come up with super duper hit movies to so that the theatres can sustain their business.
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(8.52 Moderate praised than not visit) The above histogram reveals that respondents has got the very least inclination towards the going to the theatre if the movie is not much good and has got the 4th or 5th ranking in overall. The reason of that could be because the people like to spend their time in a theatre though the movie is moderate. People may feel it comfortable to visit a theatre instead of roaming around in the city. The other reason could be because of the influence of the friends or relatives on the respondents.
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Descriptive Statistics N Statistic First_week Wait_and_watch DVD_rental Praised_than_visit Moderate_praised_not_ visit Valid N (listwise) 296 296 296 296 296 296 Mean Statistic 2.7939 1.9358 3.7331 2.7770 3.7601 Std. Deviation Statistic 1.49851 1.20138 1.21281 1.13688 1.11076 Skewness Statistic Std. Error .259 1.222 -.681 .154 -.575 .142 .142 .142 .142 .142
(8.15 Descriptive statistics for new movie watching habit) The descriptive statistics table concludes all the options result. From the above table we can see that 1st rank is given to the Wait and Watch option by the respondents. And the First week first show and Praised movie than only visit the theatre has got 2nd or 3rd ranking. There for the conclusion is that we have to hope that more and more super duper hit movies will come up in the industry.
ZOdiAC Mini Plex By asking to friends or relatives The respondents were asked to rank all the options on a scale of 1 to 6, where 1 is best preferred and 6 is the least preferred medium to find out show timings of a theatre. The analysis of all the options is given in the following histograms.
8.20.1 Newspapers
News papers are having very high reach and frequency among all the other medium of advertisement. It builds trust among the people and is very effective. Newspapers are conventional medium of advertisement. In any news paper there is a particular page and column devoted especially for theatres advertisement and movie reviews. In Times of India page number 11 is devoted for the movie advertisement where advertisement comes by movies or by theatres.
(8.53 Newspaper) The histogram for news papers reveals that the curve of normal distribution is positively skewed. And the maximum number of responses that is 200 out of 300 respondents rate news papers as the 1st preferred medium to find show timings of the theatre. The mean of news paper is 1.60
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ZOdiAC Mini Plex with standard deviation of 1.07 that is the lowest among all the other options and hence it has got overall 1st ranking in terms of advertisement.
8.20.2 Internet
The internet is a pool of information nova days and people can find any kind of information by googling on the internet. To find any kind of information people use internet as user friendly medium. Increasing the use of internet has lead to internet marketing by using a website of the company itself or giving a contract of online ticket booking or show timings to the portals like Bookmyticket.com.
(8.54 Internet) The histogram of the in internet as a medium of advertising has got a mean of 3.49 with standard deviation of 1.795. The curve of normal distribution seems to be symmetrically distributed. The response for this medium has got the mixed response for the ranking. Looking from the overall response and mean the internet has got the 2nd preference of medium to find information about show timings.
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(8.55 Calling to the theatre) The histogram of calling to the theatre to get the information about show timings has got the mean of 3.59 with the standard deviation of 1.422. The normal distribution curve is also symmetrically distributed. Out of the 300 respondents maximum responses has been found on the 3, 4 and 5 ranking. Overall the respondents have given 3rd or 4th ranking as the preference.
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(8.56 Calling helps line) The histogram of help line services reveals that the respondents have not given any inclination towards the usage of the services. The high ranking is given on 5 and 6 ranks. The mean turn out to be 4.66 that is the highest among all the options. There for we can conclude that it has got 6th rank in overall rankings.
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(8.57 Visit the theatre) The histogram for visit of a theatre to know show timings reveals that it has got second least preference that is 5th preference to know about show timings. The reason for the same could be because of waste of time and money resources to know about the information as the other medium like news papers and internet could be very cheap.
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(8.58 word of mouth) The histogram for asking the friends and relatives about the show timings has got the 3rd or 4th ranking. The respondents gave it a moderate preferred option among all the alternatives. The reason could be they might not ask about the show timings to their friends and relatives. Instead they prefer to get it from the other sources. Descriptive Statistics N Mean Std. Deviation Statistic 1.06980 1.79459 1.42175 1.22586 1.40572 1.54868 Skewness Statistic Std. Error 2.230 .197 -.071 -.676 -.260 .084 .141 .141 .141 .141 .141 .141
Statistic Statistic Newspaper Internet Calling_theatre Calling_helpline Visiting_theatre Friends_relatives Valid N (listwise) 300 300 300 300 300 300 300 1.5967 3.4867 3.5933 4.6600 4.0233 3.6400
(8.16 Descriptive statistics for preference towards ad medium) N. R. Institute of Business Management 103
(8.59 Online ticket booking) The main purpose of asking this question was to find out whether to provide online booking facility to the people or not. Here we observe that around 67% of the people have never used this service and the remaining 33% consist of mixture of people who always use it & who use it occasionally.
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(8.60 age) Here the majority of the respondents were of the age group of 21 to 40 years. This augurs well for the researcher as this group of population constitutes major target group. Since most of the movies are targeted towards this age group; this age group normally brings most of the business for the movie theatres.
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(8.61 Income level diversity) Here we can clearly see that most of the respondents middle class income group. This group is the major target segment for the miniplex theatre. Since middle class income group consumers are very price conscious low prices for movies in miniplex has a potential to attract a lot of consumers from that group.
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(8.62 Gender diversity) Out of 300 respondents 194 respondents were male & 106 respondents were female i.e. around 64.67% of the respondents are male and the rest 35.33% are female.
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Q8_expnse_theater * 269 89.7% 31 10.3% Monthly_Family_Incom e (8.17 Number of valid cases for hypotheses 1)
Here we observe that only 269 respondents out of 300 have responded to the query of both their monthly family income & expenses in theatre. So now we do Cross tabulation of those 269 respondents.
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ZOdiAC Mini Plex Q8_expnse_theater * Monthly_Family_Income Crosstabulation Count Monthly_Family_Income less than 15,000 Q8_expnse_theater Less than 300 300-600 600-900 above 900 Total 45 21 1 4 15,000 to 30,000 47 35 5 4 30,000 to 45,000 20 28 4 3 above 45,000 15 26 6 5 52 Total 127 110 16 16 269
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 21.120
a
df 9 9 1
a. 6 cells (37.5%) have expected count less than 5. The minimum expected count is 3.09. (8.19 Chi-square table) Here at 5% level of significance & 9 degrees of freedom the tabulated value of Chi Square is 16.919.But here we are getting Chi Square calculated value as 21.120.
Calculated
>
Tabulated
Implies H1 accepted. Thus, Spending on theatre is dependent on the income level of the consumers. N. R. Institute of Business Management 109
8.24 Hypothesis 2
Ho: There exists positive correlation between family income and frequency H1: There does not exist positive correlation between family income and frequency Solution:In order to find out whether there exists any correlation between frequency and monthly family income first do cross tabulation between frequency & monthly family income and then apply Pearsons R correlation test. Case Processing Summary Cases Valid N Percent N Missing Percent N Total Percent 100.0%
Q8_freqcy_Theater * 265 88.3% 35 11.7% 300 Monthly_Family_Incom e (8.20 Number of valid cases for hypotheses 2)
Here we observe that out of 300 respondents only 265 respondents have responded to both the query of frequency of visiting theatre & family monthly income. So now we do cross tabulation between them.
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Q8_freqcy_Theater * Monthly_Family_Income Crosstabulation Count Monthly_Family_Income less than 15,000 Q8_freqcy_Thea Once in a week ter Twice in a month Monthly Once/twice in six month Once/twice in a year Every new movie release Total 27 17 16 6 2 2 70 15,000 to 30,000 25 40 13 10 3 0 91 30,000 to 45,000 16 19 9 5 2 1 52 above 45,000 15 19 5 6 3 4 52 Total 83 95 43 27 10 7 265
Symmetric Measures Value Interval by Interval Ordinal by Ordinal N of Valid Cases a. Not assuming the null hypothesis. b. Using the asymptotic standard error assuming the null hypothesis. c. Based on normal approximation. Pearson's R Spearman Correlation .081 .053 265 Asymp. Std. Errora Approx. Tb .067 .065 1.314 .864 Approx. Sig. .190c .388c
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ZOdiAC Mini Plex We needed a value greater than 0 in order to prove that there exists a positive correlation between two variables or not. Here we observe that Pearsons R value is .081 Therefore, Ho is accepted Thus, there exists a positive correlation between family income & frequency of visiting theatre.
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ZOdiAC Mini Plex 9.3.2 Performance Keeping in line with our business objective to provide the highest quality service possible at an affordable price, we have decided to purchase the most technologically advanced equipments available. The technologically advanced equipment will provide us with qualitative edge over other players in the industry. All this factors will help us in achieving good business till the time we face competition from other players as well during competitive wars with other players.
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10.1 Background
The principal owners will be the full time managers. Both of them have keen interest towards entertainment industry and hence taken an initiative to open such miniplex theatre. Moreover they are very practical and knowledgeable; having sound knowledge of their respective domains and post graduation in Marketing to add to it.
10.2 Responsibilities
One manager will focus on daily operations, including employee hiring, building maintenance, property maintenance, and equipment maintenance, employee pay and benefits. The other manager will focus on marketing, advertising, and community relations, taxes, payables, receivables. Other employees of our group will provide support to the owners with regard to their specific area of expertise.
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11.1 Strengths
High ticket cost of the multiplexes is discouraging the movie viewers. The core strengths of our Miniplex project are :o Provides 100% Multiplex feel with 50% ticket cost o Operational cost per seat is 60% lower. Key technical strengths of our Miniplex are :o E cinema technology would be delivered via satellite o Full high definition quality projection o Reduction in distribution & logistics costs o Control in piracy Payback period can be achieved much earlier as compared to multiplex projects Comparatively less loss during off season cricket season or during the period when a good movie is not around.
11.2 Weakness
Less capacity as compared to multiplex Less price of the ticket may led to the misconception of lower quality services People of higher income group may not prefer it as they may think that this miniplex is meant only for lower income group people. The location of the miniplex is far away from the city It may not attract the audience from other part of the city because of the distance Chandkheda does not have any major shopping destinations in order to attract people from other areas of the city.
11.3 Opportunities
There is not a single theatre right now in Chandkheda and its surrounding localities like Sabarmati, Adalaj, Zundal, etc. Chandkheda right now is considered as one of the hottest destinations from realty point of view. As a result of which there is a lot of township projects who are just about to get completed as well as a lot of other township projects which have started. These projects N. R. Institute of Business Management 120
ZOdiAC Mini Plex have a potential of accommodating lakhs of people. As a result of which we may find huge rise in population of chandkheda. This would increase the target market segment for our miniplex. The concept of miniplex is almost ideal for new ideas like :o Telecast of live matches o New product launch o Seminars o Various films festivals o Interactive educational platforms, etc.
11.4 Threats
Big business houses with huge financial back up can start multiplex in the same or nearby area of chandkheda. These business houses can also start a miniplex which resembles completely to our concept. Since chandkheda is one of the hottest destination for properties there is potential of more than one major players of movie exhibition industry opening up their business in the span of a very few kilometres from our miniplex. Movie exhibition business suffers a lot during cricket season where cricket frenzy people do not turn up at all. Uncertainity over entertainment tax. Piracy is a huge danger to the whole industry. Now adding to the agony people also these days also have an option of downloading whole movie via internet free of cost.
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CHAPTER 12 financials
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ZOdiAC Mini Plex Financial projections We assumed the useful life of the furniture and electric equipment will be of 10 years and the straight line method of depreciation will be used. There for the depreciation will be 10%. Financial statement highlights The financial figures presented in our pro forma statements are extremely encouraging in that it is prepared by monthly, yearly and by various occupancy levels. We have used various occupancy levels because market dynamics can vary. It is important to note that in our presentation of the financial statements, we endeavoured to be conservative in our revenue calculations and liberal in our expense calculations. This approach was intentionally adopted to ensure that we maintained cautious, if not slightly pessimist approach to the evaluation of our new venture______________ liability.
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ZOdiAC Mini Plex Sales and cost The sales and cost of the show is calculated for daily, monthly, and yearly. The break up of 50%, 70% and 100% occupancy ratio is also calculated to understand the return pattern of various market responses.
100% Occupancy REVENUES(Monthly) Morning(7.30am-11.30am) Noon(11.45am-2.45pm) Matinee(3pm-6pm) Evening(6.15pm-9.15pm) Night(9.30pm-12.30pm) Total( Rs.Per Day) Days Total( Rs. Per Month) DIRECT COST Entertainment tax (20%) DISTRIBUTOR SHARE (50%) GROSS REVENUE Advertisement Revenue Other Revenues Food Court TOTAL REVENUES(MONTHLY) Month REVENUES(YEARLY) Seats( 2 screens) Rate Amount 160 70 11200 160 70 11200 160 70 11200 160 70 11200 160 70 11200 56000 30 1680000
70% Occupancy
50% Occupancy
9700800
7512000
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600000 630000 1200000 60000 120000 1950000 400000 280000 518000 5758000
1754000
600000 630000 1200000 60000 120000 1950000 400000 280000 518000 5758000
3942800
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ZOdiAC Mini Plex 13.1 Cost of Ticket After careful analysis of the region and market of the theatres industry, we have decided our prising strategy that we believe is the best competitive strategy that provides the feel of multiplex at very economy prices. The prises are flat for all the shows and for all the seating arrangement. In accordance with our prising strategy, the price of the ticket is Rs.70 for all the shows irrespective of the timings of the shows. The reason of using this pricing structure is based on our analysis of the research. 13.2 Profit Margins Calculating the profit margin based upon the projected year-end financial figures is relatively clear cut and yields the gross profit margin of 74.52% and net profit margin of 17.40% based upon 50% occupancy ratio pessimistically. The profit margin is being calculated as gross/net profit divided by sales. 13.3 Competitors Prices Based on our analysis of the competitors we have found out one competitor that is City Gold multiplex existing nearby Motera Stadium and around 3 to 4 Km away from our location. The prices of the City Gold are ranges between Rs.100 150. Our concept of Miniplex is to provide feel of Mutiplex with economy prices therefore we are sure about our success.
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14.1 Response
Since our miniplex is based on completely new & first of its kind for the audience of Chandkheda and its surrounding localities, we need to take care that we do not flop. Here there are full chances that the people may not actually respond in the way they responded in the survey. Audience here may react in a completely different way when miniplex is actually opened.
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CHAPTER 16 Findings
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ZOdiAC Mini Plex It is feasible to start a Miniplex in Chandkheda area because only one player exists in that area and the investment required is also very low as compared to multiplex. The awareness of Mimiplex concept is very less as only 38% respondents are aware about the Miniplex. The initial capital requirement is of Rs. 80,86,000 and the yearly net profit pessimistically can be Rs. 25,52,000. The pay back period turns out to be around 4.6 years. As the respondents are not aware about the Miniplex concept, the response about liking of it is turned out to mixed. Out of 300 respondents, 50% declined to compromise with the screen size while 60% of the respondent like to compromise with the number of audience. 28% respondents visit theatre once in a week and 33% respondents visit theatre fortnightly. 43% of the respondents spend less than 300 rs and 37% of the respondents spend between 300 to 600 rs on then theatres. The most visited theatre by the respondents is, Wide Angle, followed by Fun Republic and City Gold respectively. The reason for visiting those theatres is its high sound and video quality, comfortable seats and affordable cost. Apart from movies 35% respondents would like to visit theatre for various film festivals and 28% would like to watch live cricket matches. News papers have got the first preference that respondents will use to know about the show timings of the theatres followed by internet search. The amount spent by the respondent is on theatre is not dependent on the monthly family income of the consumer but the frequency is dependent on their monthly family income.
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CHAPTER 17 conclusion
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The potential of Chandkheda for the movie exhibition business can be safely termed as unexploited. There is only one theatre near Chandkheda, which is about 3 4 kms. away and that too with premium pricing strategy; as a result of which it is not working very well. Audience of Chandkheda and its surrounding localities are actually in need of a theatre which provides them with quality movie viewing experience and that too at an affordable cost. The population of Chandkheda and its surrounding localities is increasing day by day with a lot of residential projects coming up as well as a number of projects which are about to get completed. Since these projects have the potential to accommodate lacs of people, in the near future we will see a huge rise in the target segment for our miniplex. The concept of miniplex is very new and a lot of people are not aware of this concept which showed up in our findings. When it comes to watching movie in a theatre there are some basic elements like screen size, sound quality, etc. with which audience are not ready to compromise. But the strong point of a miniplex is that audience still gets the feel of watching a movie in a big screen multiplex. The only difference between multiplex and miniplex is the screen size and the capacity. Since not a lot of people are aware of this concept there lies some serious potential to build the preference of the consumers towards miniplex. Miniplex is an ideal solution for the cost-sensitive audience. In our research we observed that cost of the ticket plays an important role in deciding the frequency of an individual with respect to theatre. So, there are high chances that the frequency of an individual for the theatre would increase with the introduction of miniplex. Financial projections showed that payback period from the miniplex would be around 4.6 years (considering depreciation). These 4.6 years is far less as compared to the normal multiplex theatre which invests crores of rupees and waits for a long time to achieve break even. Thus, we can safely conclude that it is feasible to open a miniplex in the area of Chandkheda.
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bibliography
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ZOdiAC Mini Plex Scribd-free i-paper. Movie exhibition industry report (online).Retrived on March 10, 2010, from http://www.scribd.com/movie-exhibition.html Scribd-free i-paper. Sound Music Theatre (online).Retrived on March 10, 2010, from http://www.scribd.com/search?q=theatre+industry+in+india&cat=redesign&sa.x=0&sa.y=0 Scribd-free i-paper. Multiplex Theatres Report 2009 (online).Retrived on March 10, 2010, from http://www.scribd.com/search?q=multiplex+theatres+in+India&cat=redesign&sa.x=0&sa.y=0 K Sera Sera website. About Company .Retrieved on March 10, 2010 from
http://www.miniplex.co.in/about.html K Sera Sera website. E-brochure of Company .Retrieved on March 10, 2010 from http://www.miniplex.co.in/ebrochure.html Planet Bollywood Web site. Article on Miniplex in Ahmedabad. Retrieved on March 10, 2010 from http://www.planetbollywood.com/displayArticle.php?id=n012610062607 Times of India website, Launch of Indias first Miniplex in Ahmedabad. Retrieved on March 10, 2010 from http://www.timesofindia.indiatimes.com/miniplex.asp Balaji Agora Mall. Brochure for 2009. Ahmedabad: Rechard l. Levin & Devid S. Rubin. Statistics for Management 7th edition. New Delhi: PrenticeHall of India Pvt.Ltd. Naresh K. Malhotra. Marketing Research 4th edition. (2005) New Delhi: Pearson Education. Luck and Rubin. Marketing Research 3rd edition. (2006) New Delhi: Pearson Education.
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Annexure
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Questionnaire
Dear Sir / Madam, We are students of M.B.A. and conducting a survey for academic purpose which is part of our curriculum. Your views about the questions asked are welcomed and of great importance to Entertainment industry. I here by assure that details provided by you will be very much confidential. 1. Which type of movies do you like? (Select multiple options if required) Action Love Stories Thriller Horror Documentary Reality based None of the above
2. Which cable TV connection do you have? (Select any one) Local cable DTH services ( i.e. Tata sky, Dish TV) 3. If DTH, than do you use the Movie on Demand option in your DTH connection by paying some amount for a movie? (Select any one) Yes No Sometimes
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7. Are you a member of any video library like Bigflix, Moserbear? Yes, If yes, then mention the name______________ No
8. Please tick mark the appropriate mode(s) of watching movies which you use & also mention the approximate monthly expense on each of them. Also mention the frequency of each of the selected options as per the numbers given below. (Select multiple options if required) (# 1= Once in a week, 2=Twice in a month, 3=Monthly, 4=Once or Twice in six month, 5=Once or Twice in a year, 6=I go for every new movie release) Monthly Mode of Watching Movies Theatre Purchasing VCDs/DVDs VCD/DVD Rentals Ordering movies through DTH(i.e. Tata Sky, Dish TV) services* Home on TV channels (* In case you are using DTH service at home) Yes/No Expense Frequency#
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10. Please select any three theatres out of the following which you have visited the most and also rank those from 1 to 3, where 1 is the highest & 3 is the lowest visited. Name of Theatres K Sera Sera R World CineMax Adlabs Wide Angle Red Carpet Devi City Pulse City Gold Fun Republic Others (please specify)________________________ Rank
11. What is the major reason for going to the above selected theatre? Rank all the alternatives below in the scale of 1 to 8, where 1 is the most important & 8 is the least important. High sound and video quality Comfortable sitting arrangement Affordable Cost Games Food Court Shopping facility is also available Because its near to my residence I like the audience coming to that theatre ______ ______ ______ ______ ______ ______ ______ ______
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Extremely Factors Sound Quality Screen Size Comfortable Chairs Lighting in the theatre Personalized services (Snacks, Cold drinks at your seat) Shopping facility Food court Games Zone Cost of ticket Distance from home Advance Ticket Booking Important Important Neutral Unimportant
Extremely unimportant
13. Which show time you generally prefer to go for movies? Tick mark option(s) and also mark the reason for going to that show. (Select multiple options if required) Option Morning( Between 8 am to 12 pm) Noon ( Between 12 pm to 3 pm) Matinee ( Between 3 pm to 6 pm) Evening ( Between 6 pm to 9 pm) Night ( Between 9 pm till midnight) Low cost Convenient Time
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16. Out of the following, for which purpose would you like to visit a theatre, apart from movies? (Select multiple options if required) Live matches New Product launch shows absolutely free and that offers some free gift Seminars Various film festivals or events (e.g. special movies on childrens day, valentines day, etc.)
17. Would you like to go for a movie if it is at morning time of 7 am & also offered at a lower price? (between Rs. 40 to 50) Yes No
18. Would you like to compromise with the screen size of the theatre for the cost of the ticket? (e.g. the screen size is smaller and price range is between Rs. 50-80) Yes No Cannot say
19. Would you like to compromise with the size of the audience for the cost of the ticket? (e.g. There are only 70 seats instead of 150, which you normally see in a theatre) Yes No Cannot say
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21. From where do you find the information regarding the show timings? (Please rank all the alternatives in the scale of 1 to 6, where 1 is the most suitable and 6 is the worst) Newspapers Internet By calling to the theatre By visiting theatre By asking to friends or relatives ______ ______ ______
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Personal Information:Gender: Age (Years): Male Below 20 41 to 60 Occupation: Businessman Female 21 to 40 61 or above Having job Student House wife Retired
Self-employed (i.e. doctor, lawyer etc.) Monthly Family Income: Less than 15000 30000 to 45000 15000 to 30000 More than 45000
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