a look into Services Marketing by analysing the case of Cinemax chain of cinemas

1. By
Pranay Sheth -419
Ishan Parekh
Kushal Karamchandani

2. Index
 7 P’s Of Services Marketing
 Service Blueprint
 Gaps Model
 Service Preference

3. 7 P’s Of Service Marketing
 Product
 Exhibition theatre chain about 130 screens.
 35% share of multiplex screens in Mumbai.
 The Red Lounge
 USP: quality, maintenance & PR activities.
 Technology used:
◦ Projector: Christie
◦ Sound: Dolby Sound System
◦ Digital & 3D system: 2K scrabble
◦ Digital Screening: UFO

4. 7 P’s Of Services Marketing
 Price
 Revenue breakup : 78% ticket sales, 17% food &
beverages, 5% advertising.
 Cost breakup :
◦ Direct Cost
◦ Personnel Cost
◦ Depreciation
◦ Interest or lease amount.

5. 7 P’s Of Services Marketing
 Promotion
 Outdoor Media
 Schemes
 Movie Premiers
 Surprise Star Cast visits
 Special Contests

6. 7 P’s Of Services Marketing
 Place

7. 7 P’s Of Services Marketing
 Physical Evidence

8. 7 P’s Of Services Marketing
 People
 In-house training 3-4 weeks
 Outsourcing
 Graduates & Post Graduates.
 Process
 Standardized process for operations like ticket
booking, maintenance and recruitment.
 Ernst & Young is their auditor and consultant.

9. Service Blueprint

10. Service Blueprint

11. Gaps Model

12. GAP 1
• Gap closed
 EFFORTS MADE TO
CLOSE THE GAP:
 Interaction through Social Media.
 Good CRM practices.
 Good market research.
Company
Perceptions of
Consumer
Expectations
Gap 1

13. GAP 2
• Gap closed.
 EFFORTS MADE TO
CLOSE THE GAP:
 Well-defined blueprint.
 Customer oriented service
design.
 Good ambience.
 Cleanliness.
 Physical evidence.
Customer-Driven
Service Designs and
Standards
Company Perceptions
of Consumer
Expectations
Gap 2

14. GAP 3
• Gap exists.
 Reasons:
 Deficiency in HR polices.
 Some customers who negatively
impact other customers.
Service
Delivery
Customer-Driven
Service Designs and
Standards
Gap 3

15. GAP 4
• Gap exists.
 Reasons:
 Lack of education for customers
 Lack of Internal marketing.
 Absence of customer expectation management
through all forms of communication.
Service
Delivery
External
Communications
to CustomersGap 4

16. Service Preferences
0 2 4 6 8
RESPONSIVENESS
EMPATHY
TANGIBLITY
ASSURANCE
RELIABILITY
RATING
Rating

17. Managing Capacity & Variable
Demand
 Variation in demand to relative
capacity
 Capacity constraints
 Demand patterns
 Strategies for managing demand &
capacity

18. Variation in demand to relative
capacity

19.  Total capacity at infinity mall 1575
 Maximum possible shows in a screen
considering the movie life of pi 6.
 Show duration 2hrs and 7 minutes
 Screening every 2 and half hour gap.
1st show at 10 15 am last show at 10
45 pm.
 If all shows go house full total capacity
would be 9720 customers in a day.
 Total shows available 35 to 40

20. Excess demand
 When demand for a particular show
exceeds full capacity it is a Housefull
show.
 If a movie is expected to generate
exceptionally high demand more
shows are dedicated to that movie.
 Eg 3 idiots had been assigned 19
shows out of a possible 24.

21. Demand exceeds optimal
capacity
 Separate sofa seats theatre screen was
made in 2006.
 Number of shows for movies which
generate peak demand during certain
show times such as night shows are
increased and prices are considerably
reduced or night show prices are
increased.
 transformers 3 9 pm show went for
rupees 270 executive class and 350 for
gold class 450 for platinum class.
Morning and afternoon shows were
100, 140, 180 & 150,220,270.

22. Demand & supply balanced
 Ideal situation.
 Movie shows are reduced for a movie
every week.
Twilight Number of shows
Week 1 20
Week 2 8
Week 3 1

23. Excess capacity
 Screens offered for marathi movies
 3 shows for aayna ka bayna 1 pm 3 pm
5 pm.
 Premiers are held.
 Premier for workers of rhytm and hues
an animation company were held during
a 3 15 pm and 5 45 pm show in 1st & 2nd
week when demand was still picking up.
 Sometimes old movies are showed
again. Cricket Fifa World cup finals was
also shown live.

24. Capacity constraints

25. Time
 Total Shows in a day
Show types Number of shows
Only hindi shows 24– 30
Hindi english mixed 30 – 36
Only english 36 – 42

26. Labor
 3 ticket counters working in two shifts.
 3 security guards on the screen floor 2
on entry 3 shifts. Night shift has 1 on
entry 2 overseeing cleaning and
maintenance.
 one stall manager in 2 shifts.
 6 people on stalls in 2 shifts.
 2 screen managers in 2 shifts.

27. Facility
 6 screens.
 Size limited by adjacent mall.

28. Demand patterns

29. General
0
20
40
60
80
100
120
morning afternoon evening primetime late night
Series 1

30. Demand by market segment
 Morning shows for college goers.
 Primetime shows are for families.
 Late night shows are for couples and
adults.
 Business is more in vacations.

31. Random fluctuations
 Fame adlabs citi mall closed down in
june which has increased demand.
 Theatre was closed for 3 days during
the aftermath of death of Balasaheb
Thackeray.

32. Strategies used to manage
fluctuations

33. Shifting demand
 Add or remove shows. Changes made
usually weekly.
 Price differentiation.

34. Shift capacity
 Stretching number of shows. Down time is
under 10 minutes.
 Free tickets are given through contests on
twitter.
 Premiers are organized.
 Employees are cross trained.
 Cleaning staff is completely outsourced.
 Part time employees are also hired.
 Employees also borrowed from other
theatres.
 Number of full time employees on payroll at
cinemax versova is 23.

35. Hard stds
 Food prices are different
 Ticket prices are different
 Amount of staff is different
 Projector quality is also different.
 Tickets printed are different.
 Ticketing software is same wherever
applied.
 Theatre quality is also different

36. Soft stds
 Better employees are placed in
multiplexes.
 Employees are cross trained.
 many employees on the floor are part
time.
infinty mall has 14 part time
employees on the screaning floor.

37. PRICING METHODS

38. “If greater demand is supposed to move
prices, why does a ticket to each movie
cost the same?”

39. Uniform Pricing Method

40. Price
discrimination
with space &
time
Inconsistent
cut in prices
after opening
weekend
Price can
repel as
easily as it
attracts

41. Costs & Revenues

42. Costs

43. Revenues

44. Entertainment Tax

45. Entertainment Tax

46. Entertainment Tax
Exemptions

47. Who gets what?

51. SERVICESCAPE

52. Role of Servicescape
Package Facilitator
Socializer Differentiator

53. Type & Complexity of
Servicescape
Interpersonal
Service Elaborate
Environment

54. Elements of Physical Evidence
Servicescape Other tangibles
Facility exterior
Exterior design
Signage
Parking
Landscape
Surrounding environment
Facility interior
Interior design
Equipment
Signage
Layout
Air quality/temperature
Business cards
Stationery
Billing statements
Reports
Employee dress
Uniforms
Brochures
Internet/Web pages

55. SERVICE DELIVERY

56. CUSTOMER
COMPANY
Service Delivery
GAP 3
Customer-Driven
Service Designs and
Standards
Provider Gap 3

57. Employee’s
Role
Customer’s
Role

58. References
 Wikipedia
 Cinemax.com
 Bookmyshow.com
 Service marketing

59. Thank you