Service marketing in multiplex
- Executive summary
- Industry analysis
- Indian entertainment industry
- Indian film industry
- Growth drivers
- Key players
- Services marketing concepts as applied in multiplex
- 7 Ps of services marketing
- Service profit chain
- Service blueprinting
- Managing demand and supply
- Yield management
- Managing waiting process
- Complaint management and service recovery
- Customer feedback
- Research report
The magical word in cinemas today is - multiplex. It caters to the busy, fast moving and variety-loving consumer who wants more than just one film under a single roof. Multiplexes have become just a rage that most of the old cine complexes are converting to multiplexes. Cinema cannot be an independent identity. It stands with the food and entertainment counters. In the concept of multiplexes full entertainment is the magnet that attracts people inside
This paper examines various Services Marketing concepts, such as 7 Ps of services marketing- Service Product, Price, Place, Promotion, People, Process, and Physical evidence; Service Blueprinting; Service Profit Chain; Managing Demand and Supply; Yield Management; Queue Management; Customer Feedback and Service Recovery.
This paper also throws some light on Industry analysis. Tectonic change in Indian Entertainment Industry and Indian Film Industry, and Growth drivers responsible for the expected increase in the number of multiplex cinemas such as Favorable demographic changes, An increase in disposable income in the hands of ever-expanding Indian middle class, Organized retail boom, Entertainment tax benefits for multiplex cinemas, India is one of the fastest growing economies in the world, High quality of creative and technical talent pool, Indian consumers willing to spent more on Entertainment, and Increase in the number of high-grade Hindi films, etc are considered. The paper also lists key players in the industry such as PVR Limited, INOX, FUN Cinemas, FAME Cinemas, and Cinemax.
A descriptive research has been conducted, using questionnaire method, with a view to understand customer profile, customer expectation, customer satisfaction, customer loyalty, usage frequency, customer behavior, and to get other important insights with respect to a multiplex. A number of charts and tables are prepared to bring out the main characteristics of the collected data.
[...] At a glance: Number of films produced in Number of single screens Approx Number of multiplex screens Approx Filmed Entertainment Industry Estimated at Rs billion in 2006; Projected to grow to Rs.175 billion by 2011 Domestic Box Office Market Estimated at Rs.64 billion in 2006; Projected to grow to Rs.119 billion by 2011 Growth Drivers: Growth drivers responsible for the expected increase in the number of multiplex cinemas are as follows: Favorable demographic changes An increase in disposable income in the hands of ever-expanding Indian middle class Organized retail boom Entertainment tax benefits for multiplex cinemas India is one of the fastest growing economies in the world High quality of creative and technical talent pool Indian consumers willing to spent more on Entertainment Increase in the number of high-grade Hindi films Favorable Demographics: Current Population: As per 2001 Census, with about of the world’s surface area, India accounts for 16>7% of the world’s population. [...]
[...] For a newly established multiplex the communication objectives will be to build awareness and interest in the service being provided, to communicate its features and benefits, to differentiate itself from the alternatives available, to build positive brand image, to build preferences over competitors. Once the brand is established, the objectives will be to continuously communicating the movies and their timings, to provide reassurance, to teach customers how to use the service, to stimulate demand in low-demand periods and discourage demand during peak periods, to remind people of the existence of a service and/or the service firm, to thus to build a strong brand. [...]
[...] Service Characteristics: Let us now have a look at the characteristics of this business that make it an ideal candidate for applying Yield Management: The Product is perishable to a great extent: Even though ticket sales do not stop immediately as soon as the show begins, after a few minutes, the ticket loses its value and any seat remaining unsold results in lost revenues for that particular show. Capacity is Limited: No matter how much the owners of a multiplex would like to increase the capacity of their halls during times of high demand, the capacity is fixed and cannot be altered without a significant time lag and investment. [...]