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Stp Plan

In: Business and Management

Submitted By chakram
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INTRODUCTION

Objective: * To study and understand the Segmenting, Targeting & Positioning and the Price Sensitivity of cinema goers in Ranchi. * To understand the theoretical concept & it’s application to practical world. * For partial fulfillment of Masters Degree in Management.

Scope: * Study is limited to the fulfillment of academic purpose only. * Help to understand the applicability of theory in cinema hall business to some extent.

Limitation: * Study is based on secondary data thus only had limited scope. * Dummy used to establish the concept of the study, thus had limitations.

Methodology:

* The study is based on secondary data. * Most of the facts are assumed on the basis of data received from various secondary sources.

BUSINESS OVERVIEW

Film Exhibition Industry

Film exhibition, which involves the exhibiting of movies in cinemas. The Indian film exhibition sector can be divided into two segments: single and double-screen cinemas and multiplex cinemas, i.e., a cinema complex with three screens or more. Indian media and entertainment industry is one of the fastest growing sectors with a market size of Rs 584 billion in 2008, recording a growth of 12.4 per cent and projected to reach Rs 1052 billion by 2013 India is the highest producer and consumer of filmed entertainment. The cinema exhibition industry in India is growing at 10% per annum driven by multiplexes, which are expanding rapidly in major metropolitan cities as well as second and third tier cities. South Indian cinema industry is pegged at Rs 17.3 billion with the domestic theatrical revenue stream being most dominant, accounting for nearly three-fourth (around Rs 12.6 billion). The four southern states have 50 per cent of the theatres in India and almost 25 per cent (1,200 theatres) of the 5,000 theaters in the south are digital. Growth opportunities galore as some of the world’s largest multiplex chains are foraying into India Despite the higher number of tickets sold in India, but the total reported box office revenue is significantly lower in India compared with the United States. This is primarily due to the fact that ticket prices are much lower in India, with an average of Rs. 25 . The lower ticket prices in India are due to lower income levels, especially in rural and semi urban parts of the country, and the lack of good quality cinemas. The average price of a ticket for a multiplex cinema is Rs. 75 - 85 but the number of screens in multiplexes represented only 2.3% of total screens in India. An increase in the number of Multiplex screens should result in an increase in film exhibition revenues, so the opening of new Multiplexes represents a significant growth opportunity for the industry. The total reported box office revenue in India is also lower because the amount of revenue collected at the box office is under reported due to the fragmented and non-transparent nature of the film exhibition sector.

Segmenting – Targeting - Positioning
PLAN

Pattern of Market Preference: * Homogeneous Preference * Diffused Preference * Clustered Preference

Segmentation:

(1) Identify Segmentation Variables and Segment The Market:

* Geographic Variables. * Demographic Variable. * Psychographic Variable. * Behavioral Variable.

Geographic Variable.

* Local. * Regional. * Urban & Rural. * Metro & Non-Metro.

Demographic Variable.

* Age & Life Cycle Stage * Gender: Male & Female * Income * Education * Generation * Social Class

Psychographic Variable.

* Lifestyle. * Personality.
Behavioral Variable.

* Occasions. * Benefits. * User Status. * Usage Rate. * Loyalty Status. * Buyer Readiness Stage. * Attitude.

(2) Develop Profile Of The Resulting Segment:

* Clustered Preference * Local Market-Total Literate Urban Population- 975184 * Age Group: 18-36 years-42%-409577 * Single & Newly Married * Male-225267 * Female-184310 * Education-College Graduates & PG’s

Targeting:

(1) Evaluate The Attractiveness Of Target Segment:

* Selection of Movie. * Seating Facility. * Sound Quality. * Screen Quality. * Snacks & Beverages. * Organized Management.

(2) Select The Target Segment:

* Educated Students, Young Married Couples & Young Married Couples with One or Two Kids.

Positioning:

(1) Identify Possible Positioning Concept For Target Segment:

* Luxury with affordability. * Value for money.

(2) Select, Develop and Communicate The Chosen Positioning Concept:

Product: Masala Hindi Movies (UA category)
Price:
* Price to be set on little premium level from other single screen cinema hall. * Price to be covers the break even cost. * Price to be set by keeping in mind the long term perspective. * King: Rs.200 * Queen:Rs.150 * Jack:Rs.100

Place: Heart of the city.
Promotion:
* Message- At your service that you can admire. * Media- 1. Hording- Physical Evidence with Strong Price Appeal. 2. Local Newspaper- All types of offer detail with. (Launch Ad Half Page Local) Regular Cinema Detail in Classified. 3. FM Radio- Regular Jingle. 4. Website- Online Booking & Full Information. 5. Facebook-Facebook Page to connect with local surfers. 6. Twitter-Regular Twits & add local followers. 7. Gift Voucher- Rs.150 8. Credit Card EMI facility on bulk booking. 9. Loyalty Card: Each movie has Rs.2.5 per Rs.100. 10. Redemption of points to be done in one year from date of issue of loyalty card. 11. Redemption could be possible on absolute value and rest to be transferred even to next year. 12. Institutional 50 & above booking may pay in PDC’s.

Monday-Friday (Price Scheme)

* Morning: 20% * Noon: 10% * Evening: No Discount * Night: 5%

Saturday-Sunday (Price Scheme)

* Morning: 20% * Noon: No Discount * Evening: No Discount * Night: Coldrink 200ml/1-Cup Tea or Coffee

People: * Complimentary ticket on payment of entertainment tax amount at any point of time (2 days in advance) to employees, subject to availability. * Tickets to employees are given for 1+1 oneself and employees guest for immediate family i.e. parents, spouse etc. * This has been done to encourage movie going among employees as well as customers. * Gives 10 national holidays to employees * Makes all employees train at different levels from time to time * Teaches employees to be helpful, polite and courteous to all patrons and co workers – enthusiasm a cheerful. * Report customer grievances to managers. * Strict on rules on no smoking, drinking on job etc. * They are given personalized badges – symbolizes that the employees pride themselves on being a part of the brand. * Very great importance is given to person hygiene and appearance –clean uniform and shoes. * Not allowed to make a gesture to ask for any sort of a tip / gift from customers. * Job performance evaluation at the completion of first 90 days of employment. They are evaluated once a year on their anniversary of date of joining by individual superiors and records regarding employees’ progress are evaluated. * Given bright uniforms similar to brand colour scheme – represents brand. This is done to ensure uniformity of appearance and to project a well kept image. * All employees are taught to deal with safety problems like accidents, fire, bomb threat, armed robber etc. * Certified first aid course given to all employees. * All trainees are made to train at all departments like ticket sales, computer ticketing, telebooking, sales enquiries, customer service skills, cash handling sales, credit card sales etc. * Special well kept rooms for the employees.

Process: * Service design is a complex task that can benefit from a more sophisticated version of flowcharting. * Identifying all the key activities involved in service delivery and production and specifying the linkages between these activities. * A central aspect of service blueprinting is to distinguish between what the customer experiences front stage and the activities of employees and support process backstage, where the customer cannot see them. * Standards to be set for each service activity but should be based on good understanding of customer expectations. * Flowcharting also gives managers the opportunity to identify potential fail points in the process that pose a significant risk of things going wrong and diminishing service quality. * Development of Standard Operating Procedures. * Regular Audit of SOP.

SOP Contains: 1. Script for each front stage activity 2. Physical evidence for front stage activities 3. Line of interaction 4. Front stage actions by customer-contact personnel 5. Line of visibility 6. Backstage actions by customer contact personnel 7. Identifying failure points

Three Core Stages: 1. Before the core product is encountered 2. Delivery of core product 3. Getting ready for next show

Physical Evidences:

* Atmosphere- The building, layout, colours of interiors, tickets, labels, logo. * Ambience- 1. Air quality. 2. Quality of scent. 3. Degree of circulation. 4. Aesthetics. 5. Architecture, colour scheme, material. 6. Functional dimensions of design in terms of layout comfort. 7. Appearance. 8. Behavior and number of service personnel. 9. Quality & Quantity of other customers.

CONCLUSION

We like to conclude through following points:

* Attract the average income group & college goers. * Provide luxury equivalent to multiplex. * Affordable price. * Reward to frequent goers. * Single screen to keep operating cost in control. * Small but luxurious. * Size help to ease of management so as to provide best of service.

BIBLOGRAPHY, WEBLOGRAPHY, REFERANCES

BIBLOGRAPHY:

* Marketing Management (Analysis, Planning, Implementation & Control)- Philip Kotler * Marketing Management (Global Perspective Indian Context)- V.S.Ramaswamy

WEBLOGRAPHY: * www.cinematoday.in/theatre.html * www.cinemaindiaexpo.com * www.dessenceconsulting.com * http://www.census2011.co.in/district.php

REFERANCES:

* Filmfare * Stardust…...

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