The document discusses the entertainment industry in India and factors related to customer relationship management (CRM) in multiplex cinemas. It identifies six key factors that constitute the foundation of CRM: ambience, amenities, speedy services, staff cooperativeness, online services, and infrastructure. A study was conducted comparing two multiplexes, Adlabs and Waves, in Noida on these factors. The results can help multiplex theaters improve their CRM practices relative to single screen theaters.

1. ENTERTAINMENTENTERTAINMENT
INDUSTRYINDUSTRY
SUBMITTEDSUBMITTED
BY-BY-
DIPIKA KAPOORDIPIKA KAPOOR
NEHA GUPTANEHA GUPTA
PAYAL MAHAJANPAYAL MAHAJAN
VARINDA GUPTAVARINDA GUPTA

2. INTRODUCTIONINTRODUCTION
The story of single-screen theatre hasThe story of single-screen theatre has
reached its sad end in India. Multi-screenreached its sad end in India. Multi-screen
theaters have opened new vistas for thetheaters have opened new vistas for the
entertainment industry. After the entry ofentertainment industry. After the entry of
corporate titans like Reliance, the scenariocorporate titans like Reliance, the scenario
of entertainment services has becomeof entertainment services has become
more professional than ever. Thesemore professional than ever. These
theaters have changed the entire movie-theaters have changed the entire movie-
going experience.going experience.

3.  Multiplexes currently constitute 4-5 % of theMultiplexes currently constitute 4-5 % of the
12,900 screens in India, the industry has a12,900 screens in India, the industry has a
long way to go. This is just the beginning oflong way to go. This is just the beginning of
multiplex revolution.multiplex revolution.
 In multiplex segment, PVR is the marketIn multiplex segment, PVR is the market
leader in India.leader in India.
 Besides, there are other major players like:Besides, there are other major players like:
Adlabs, Waves, Inox Leisures, Cinemax,Adlabs, Waves, Inox Leisures, Cinemax,
Fame etc.Fame etc.
 These multi-screen theaters have startedThese multi-screen theaters have started
more facilities for customers like: online ticketmore facilities for customers like: online ticket
booking, attractive sales promotion schemes,booking, attractive sales promotion schemes,
home delivery of tickets, SMS booking, toll-home delivery of tickets, SMS booking, toll-
free calling services etc.free calling services etc.

4. CUSTOMER RELATIONCUSTOMER RELATION
MANAGEMENTMANAGEMENT
Customer relationship managementCustomer relationship management
(CRM)(CRM) is a broadly recognized, widely-is a broadly recognized, widely-
implemented strategy for managing aimplemented strategy for managing a
company’s interactions withcompany’s interactions with customerscustomers,,
clients and sales prospects.clients and sales prospects.

5. PHASESPHASES
The three phases in which CRM support the relationshipThe three phases in which CRM support the relationship
between a business and its customers are to:between a business and its customers are to:
 AcquireAcquire: CRM can help a business acquire new customers: CRM can help a business acquire new customers
through contact management,through contact management, direct marketingdirect marketing, selling, and, selling, and
fulfillment.fulfillment.
 EnhanceEnhance: web-enabled CRM combined with customer: web-enabled CRM combined with customer
service tools offers customers service from a team of salesservice tools offers customers service from a team of sales
and service specialists, which offers customers theand service specialists, which offers customers the
convenience of one-stop shopping.convenience of one-stop shopping.
 RetainRetain: CRM software and databases enable a business to: CRM software and databases enable a business to
identify and reward its loyal customers and further develop itsidentify and reward its loyal customers and further develop its
targeted marketing and relationship marketing initiatives.targeted marketing and relationship marketing initiatives.

6. STRATEGYSTRATEGY
For larger-scale enterprises, a complete and detailedFor larger-scale enterprises, a complete and detailed
plan is required to obtain the funding, resources, andplan is required to obtain the funding, resources, and
company-wide support that can make the initiative ofcompany-wide support that can make the initiative of
choosing and implementing a system successful.choosing and implementing a system successful.
Benefits must be defined, risks assessed, and costBenefits must be defined, risks assessed, and cost
quantified in three general areas:quantified in three general areas:
 PROCESSESPROCESSES
 PEOPLEPEOPLE
 TECHNOLOGYTECHNOLOGY

7. PROCESSPROCESS
PROMOTIONPROMOTION
PHYSICAL EVIDENCEPHYSICAL EVIDENCE PEOPLEPEOPLE
PLACEPLACE
PRICEPRICE
PRODUCTPRODUCT
THE MARKETING
MIX
THE MARKETING
MIX
The 7 P’s of Multiplex Cinemas

8. ENTERTAINMENT INDUSTRYENTERTAINMENT INDUSTRY
This can be explained properly with the bifurcation below.This can be explained properly with the bifurcation below.
Traditional live entertainment industryTraditional live entertainment industry ::
 TheaterTheater
 Play writersPlay writers
 Actors and Theater directorsActors and Theater directors
Music industryMusic industry
 Composers and SongwritersComposers and Songwriters
Singers and MusiciansSingers and Musicians
OrchestrasOrchestras
Publication industryPublication industry
 AuthorsAuthors
JournalistsJournalists
PublishersPublishers
PrintersPrinters
The 20th century mass media industryThe 20th century mass media industry ::
 Film studiosFilm studios
CinemasCinemas
BroadcastingBroadcasting
 Record industryRecord industry
Theme parksTheme parks
DiscothèquesDiscothèques

9. WHAT IS A MULTIPLEX INDUSTRYWHAT IS A MULTIPLEX INDUSTRY
Multiplex is a medium that offers a personMultiplex is a medium that offers a person
composite entertainment comprising of acomposite entertainment comprising of a
one stop destination to shop, entertain,one stop destination to shop, entertain,
and dine and watch a Varity of moviesand dine and watch a Varity of movies
under a common roof. Multiplex are one ofunder a common roof. Multiplex are one of
the means of lifestyle that offer to viewersthe means of lifestyle that offer to viewers
the choice of watching a movie in a fivethe choice of watching a movie in a five
star or three star environment.star or three star environment.

10. SOME FACTS ABOUTSOME FACTS ABOUT
MULTIPLEXESMULTIPLEXES
 Presently there are approximately 13000Presently there are approximately 13000
screens in India with equal number of spacescreens in India with equal number of space
available for the same amount of theatres toavailable for the same amount of theatres to
be opened.be opened.
 Multiplexes in India are given benefits forMultiplexes in India are given benefits for
their development as they form a major parttheir development as they form a major part
of the entertainment industry. Benefits suchof the entertainment industry. Benefits such
as overall tax concession, reduction inas overall tax concession, reduction in
entertainment tax and so on are provided byentertainment tax and so on are provided by
the govt.the govt.

11. COMPETITIVE RIVALRY
WITHIN THE INDUSTRY
THREATS OF NEW ENTRANTS
THREATS OF SUBSTITUTES
BARGAINING POWER
OF CUSTOMERS
BARGAINING POWER OF
SUPPLIERS
PORTER’S FIVE FORCE MODEL

12. PROBLEMS FACED BY THEPROBLEMS FACED BY THE
INDUSTRY-INDUSTRY-
 Indiscipline among filmmakers. This madeIndiscipline among filmmakers. This made
the industry fragmented and disorganized.the industry fragmented and disorganized.
Piracy leading to massive losses for thePiracy leading to massive losses for the
industry.industry.
Lack of resources in terms of finance,Lack of resources in terms of finance,
human etc.human etc.
Lack of corporatized management. LimitedLack of corporatized management. Limited
studio space and lack of security lending tostudio space and lack of security lending to
an expensive foreign locales resulting inan expensive foreign locales resulting in
drain of resources.drain of resources.
 Reluctance of financial institutions to fundReluctance of financial institutions to fund
non asset based venturesnon asset based ventures
 Lack of expertise to handle latestLack of expertise to handle latest
equipments.equipments.

13. Services Provided
Multiplexes providesMultiplexes provides
the user,the user,
 Entertainment-relatedEntertainment-related
informationinformation
 PricingPricing
 AvailabilityAvailability
 Reservations for ticket forReservations for ticket for
its cineplexes.its cineplexes.
Theatre EnvironmentTheatre Environment
 Auditorium SeatingAuditorium Seating
 RestroomsRestrooms
 Parking AreaParking Area
Film PresentationFilm Presentation
 Sound QualitySound Quality
 Picture QualityPicture Quality
 VolumeVolume
Food ServiceFood Service
 Cleanliness of Snack BarCleanliness of Snack Bar
 Selection of ConcessionsSelection of Concessions
 Taste/Temp of Food ItemTaste/Temp of Food Item
PersonnelPersonnel
 Ticket CashierTicket Cashier
 Snack Bar AttendantSnack Bar Attendant
 Handling of ProblemsHandling of Problems

14. SWOT ANALYSIS OFSWOT ANALYSIS OF
ENTERTAINMENT INDUSTRYENTERTAINMENT INDUSTRY
STRENGHTSSTRENGHTS
 most booming sectors in Indiamost booming sectors in India
 Change in the lifestyle and spending patterns of the Indian masses onChange in the lifestyle and spending patterns of the Indian masses on
entertainment.entertainment.
 Technological innovationsTechnological innovations
WEAKNESSESWEAKNESSES
 1. The Entertainment sector in India is highly fragmented.1. The Entertainment sector in India is highly fragmented.
2. The lack of efforts for media penetration in lower socio-economic classes,2. The lack of efforts for media penetration in lower socio-economic classes,
where the mediawhere the media
penetration is low.penetration is low.
 3. The film exhibition business’s fortunes depend on the success of the films3. The film exhibition business’s fortunes depend on the success of the films
they are showingthey are showing
 4. Rapid development of digital technology and the advancement in the4. Rapid development of digital technology and the advancement in the
broadband andbroadband and
 networking spacenetworking space
 5. Low margins and seasonal factors in the movie exhibition .5. Low margins and seasonal factors in the movie exhibition .

15. OPPORTUNITIESOPPORTUNITIES
 The Indian film industry is the largest film industry in the world inThe Indian film industry is the largest film industry in the world in
terms of no. of films produced and tickets sold each year expectingterms of no. of films produced and tickets sold each year expecting
growth will be continued in coming years.growth will be continued in coming years.
 The increasing interest of global investors in this sector.The increasing interest of global investors in this sector.
 The media penetration is poor for the poorer sections of the society,The media penetration is poor for the poorer sections of the society,
offering opportunities of expansion in this areaoffering opportunities of expansion in this area
 Rise in viewership and advertisement expenditure.Rise in viewership and advertisement expenditure.
THREATSTHREATS
 Piracy, violation of intellectual property rights poses a major threatPiracy, violation of intellectual property rights poses a major threat
to media and entertainment concerns.to media and entertainment concerns.
 Rapid innovations in technological sector.Rapid innovations in technological sector.
 Increased competition with other entertainment sector like IPL,Increased competition with other entertainment sector like IPL,
affect the occupancy rate in theatre.affect the occupancy rate in theatre.

16. Research ObjectiveResearch Objective
The major objective of this research wasThe major objective of this research was
to determine the factors that constitute theto determine the factors that constitute the
bases of customer relationshipbases of customer relationship
management (CRM) wrt.two multiplexes inmanagement (CRM) wrt.two multiplexes in
Noida city Waves and Adlabs.Noida city Waves and Adlabs.

17. Research MethodologyResearch Methodology
 The study was an explanatory meant for theThe study was an explanatory meant for the
purpose of investigation of factors that constitutepurpose of investigation of factors that constitute
the foundation of CRM in entertainment sector.the foundation of CRM in entertainment sector.
 Based on these factors , Adlabs and wavesBased on these factors , Adlabs and waves
multiplexes were compared .this reserch wasmultiplexes were compared .this reserch was
conducted on 100 movies-goers in noida (50conducted on 100 movies-goers in noida (50
visitors of Adlabs and 50 of Waves ) whichvisitors of Adlabs and 50 of Waves ) which
included students , business men , executives,included students , business men , executives,
family etc.family etc.

18. Tool For Data Collection AndTool For Data Collection And
AnalysisAnalysis
For primary data collection , a selfFor primary data collection , a self
administered and non disguised five pointadministered and non disguised five point
scale questionnaire containing 21scale questionnaire containing 21
statements was usedstatements was used
For the research , some hypothesis wereFor the research , some hypothesis were
formulated and tested for significance toformulated and tested for significance to
prove the objective in scientific manner.prove the objective in scientific manner.

19. Results and DiscussionsResults and Discussions
Ambience: this factor was constituted ofAmbience: this factor was constituted of
level of comfort in multiplex , fully airlevel of comfort in multiplex , fully air
conditioned hall, plush and comfort chairs.conditioned hall, plush and comfort chairs.
Amenities: This factor constitutedAmenities: This factor constituted
customer friendly services , food joints ,customer friendly services , food joints ,
drinking water facilities , neat and cleandrinking water facilities , neat and clean
toilets and kid zone etc ..toilets and kid zone etc ..

20. Speedy servicesSpeedy services : This factor: This factor
constituted spped of ticket booking ,constituted spped of ticket booking ,
facility of quick location of speed , speedfacility of quick location of speed , speed
of services in restaurnant .of services in restaurnant .
Staffs cooperativeness:Staffs cooperativeness: This factorThis factor
constituted the friendly behaviour by staff,constituted the friendly behaviour by staff,
their problem solving attitude .their problem solving attitude .

21. Online servicesOnline services : The factor constituted: The factor constituted
the range of online services provided bythe range of online services provided by
multiplex , online ticket booking and onlinemultiplex , online ticket booking and online
payment system.payment system.
Infrastructure : The factor constituted: The factor constituted
infrastructural components like buildinginfrastructural components like building
and other facilities.and other facilities.

22. Conclusion and ImplicationsConclusion and Implications
The study has determined six factors: ambienceThe study has determined six factors: ambience
amenities speedy services staffsamenities speedy services staffs
cooperativeness online service andcooperativeness online service and
infrastructure. The result of this study can be ofinfrastructure. The result of this study can be of
use for multiplex theatres via-a-vis single screenuse for multiplex theatres via-a-vis single screen
theatres. This study can be made on largetheatres. This study can be made on large
sample and comparison across various citiessample and comparison across various cities
can be done. However, this study is limited tocan be done. However, this study is limited to
noida city only . The study has wide implicationsnoida city only . The study has wide implications
for the industry in specific. Much work can befor the industry in specific. Much work can be
done towards strengthening CRM practices indone towards strengthening CRM practices in
multiple segments in INDIA .multiple segments in INDIA .