Case study for Entry strategy of Online Product. 2 Sided Marketplace

1. Case Study: Online Movie Ticket Booking
Industry Analysis
Online movie ticketing business is growing in India with the following stats:
Total Movie Screens in India: 12000
Total Movie Tickets booked: 550 Mil. (10% CAGR)
Total Online tickets booked: 100 Mil. (Around 18% of tickets are booked online)
Total Revenue of Movie Tickets booked: $2.1 Bil. (CAGR of 7%)
Market size of Online Movie Ticket Booking: $ 1 Billion (CAGR of 8%)
User Demographics
No of people in the Age Range of 18-64: ~850 Mil (64%)
Of which around 30% or ~250Mil live in Urban areas.
Out of that Urban population has around 60% internet penetration (i.e 150 Mil.) as of June 2016 but with the
Drive in 4G Internet is it supposed to capture full market potential soon.
Competitive Analysis
Company Bookmyshow Paytm
Competencies Books events and sports .Has great
User Interface,
Large User base from Online
payment platform
Differentiator F&B integration in 370 screens. Chat
feature for engaging users.
Heavy Discounts on movie
tickets
Screens 350 cities and towns 4000 screens
Mkt. Share 93 Mil Tickets. 248 Cr .1 Mil Tickets
Active User Base 9 Mil. Mobile Active users 80 Mil. Active Users
Pain points Cash on Delivery Options User Interface
The Addressable market for Movie ticketing is around 550 Mil tickets per year.
Voice of Customer
After talking to few people about their preference in booking platform and reasons for the same and
performing secondary research I found out few of the problems people face while booking tickets
online:

2. 1.”It shows me movies that I don’t like such as Marathi movies.” –Rishi, 26yrs , Male, Arts student,
Mother tongue Hindi, Mumbai
2.”I have to scroll a lot to look for the movie I would like to watch.” – Abhimanyu, 27yrs, Male,
Freelancer.
3.”I don’t book online because I don’t have online banking facility on my card.” - Apoorv , 28yrs, Male,
Entrepreneur, Delhi.
4.”What if I have to cancel later on? ” Anil , Male, 30yrs, Sales Professional
5.”I don’t know when I would be free and if there will availability then?” – Apoorv , 28yrs, Male,
Entrepreneur, Delhi.
6. “The internet handling fee is too much. I would rather go and book” – Yash,24yrs, Male, story writer,
Gujrati
7.”I don’t know what is getting released this weekend and when I check its already filled.” –Apurv ,
Delhi, 30yrs, Working ,Male
Gaps in Customer Value Proposition:
1. Suggestion of Movies based on preference
2. Fixed Service Charge and discount on group bookings
3. Pre-booking
Bookmyshow has already captured majority of the Customer value propositions and has currently also
launched the Free cancellation and User chat feature for discussion while booking movies with friends.
Paytm has already acquired a lot of customers and provides them with easy payment options.
Some of the benefits that could be provided to customers to improve their experience:
1. Location and preference based movie suggestions with user movie and location preferences
being updated frequently.
2. Booking Assistant options for movies coming next week
3. Discover availability of seats in nearby cinemas for movies
4. Flexibility of cancelling tickets
Market Entry Strategy
Currently Bookmyshow has dominance over online ticket booking with 90% of the online booking
coming from their website and app.

3. Current addressable online market for movie goers in Urban areas is 150 Mil. Increase of this market is
mainly dependent on the internet penetration which is going to come from 4G drive, hence increase
in Mobile users.
Taking into account increasing internet penetration and assuming 80% penetration of internet in
mobile in 3-4 years the market size is ~200 Mil. Bookmyshow consists of only 6% active users and
Paytm has ~53% of active users leaving a lot of space for an new comer to enter the market. Hence it
should be mobile only platform with first launching in Android then iOS.
1. Majority of the users will gain internet access through their smartphones due to 3G /4G
connectivity and hence in terms of first time app usage the new entrant should be able to
provide enriched experience for first time online movie booking users to capture their interest.
2. Since movie pre-booking is one of the areas where other players are not working the launch of
the app with a movie release should build enough traction for the app to kickstart the network
effect.
Product Modules for different User Groups
There are 3 major user groups mainly Customers, Theatre Owners, Third Party Service Providers.
Module for Customer
1. Quick book: User preference information will be captured during onboarding to suggest
suitable movies and reduce time to discover a movie and increase repeat purchases.
a. Preferred Language
A User profile will be created and push notification will be sent to user once a matching movie
comes to a theatre nearby with an option to book.
The suggestive feature would improve based on the booking history
2. Booking Assistant: Allow the user to set a notification for a movie releasing in the next 2
weeks based on the following parameters:
a. Theatre: Choose from a list of Preferred Theatre.
b. Language
c. Format
 This feature could give the app an edge over the incumbents.
 When the movie is available the notification will be sent and user could book it based on
the same preferences on change them.
This would remove the chance of missing out on the movie.
3. Nearby Availability: Uses the Location of the Device to show movies only in the nearby
theatre.
 This will improve the experience of the customer as they won`t have to go through a lot
of filters.

4. 4. Ticket Reservation: Provide the user a flexibility to reserve a ticket and option to pay for it any
time upto 1 hr before the movie.
5. Fixed internet handling charges: We could charge internet handling fees for a single ticket
and provide discounts on multiple ticket (more than 3).
 It would reduce the ticket prices without giving any discounts.
6. Wallet service: This is a basic feature which needs to be present in case of cashbacks and in
the long run help in faster transactions. The wallet will also help in integrating the app with
other third party services.
7. Movie Information Reviews and Rating: Currently the ticket booking experience is
transactional. But with content for every movie such a User Ratings, Critics Reviews, Box Office
Collections, Movie Trailers user interaction could be increased pre and post booking.
8. Movie Poll: It takes a lot of discussion and checking movie timing and theatre to decide to go
for a movie. This feature would improve the app with simple polling in groups to decide movie
and timings.
9. Feedback : This feature would take down customer feedback for the app. It will help improve
the next versions.
Module for Theatre Owner
1. Analytics Platform: Create a simplistic analytics platform for the theatre owners on a mobile
or web platform to manage everyday booking and other operations.
a. The system should provide overall booking, revenue, predict demand and suggest
pricing to help theatre owners to capture more users.
2. Provide options to assess previous movie booking data and user data to predict show timings
and screens for Maximum revenue generation.
Module for Third Party Service Providers
1. Food and Beverages
2. Ecommerce movie merchandise providers
3. Movie Fashion accessories
4. Valet Parking
 These 3rd
Party service providers could integrate their services on the system and allow
buying options with different pricing options.
Product RoadMap
We can rate the above features based on the User Benefits and Business Impact and Design the MVP
with features of high importance
Minimum Viable Product
Features User
Benefits
Business
Impact
Priority
MVP Online Marketplace for Online ticket booking High High High

5. Nearby Availability of movies High High High
Booking Assistant High High High
Customer Onboarding with Preferences High High High
Mobile Wallet for quicker transactions High High High
Movie Reservations with cancellation options High High High
Movie Suggestions based on Preferences High Medium High
Mobile no authentication for onboarding Low High High
Feedback Medium Medium Medium
Next
Update
Analytics for Revenue Generation for Theatre
Owner
Low Medium Medium
Movie Suggestions based on Previous
Bookings
High Medium Medium
Movie Information ,Reviews Medium Low Medium
Integrating Facebook and Gmail for Social
Sharing of reviews and easy login and
sharing
Medium Low Medium
Movie Poll Medium Low Low
Theatre Owner analytics Platform low Medium Medium
3rd
Party Integration for F&B, Parking,
Merchandising
Medium Low Medium
Features
From all the above stories I am going to give detail descriptions for the stories Below :
Use Case: As a customer I should be able to get notifications for movies opening in the next 1 week
so that I can book before it gets filled.
Acceptance Criteria:
1. User should be able to enter the following criteria to get notifications of the movies
a. Language
b. Format
2. User should be able to see the notification once the movie is online and able to book with
different payment options.
3. On Clicking the notification the user would be redirected to the movie bookings page with the
option to choose the Language and Format once more and proceed ahead to book.
Use Case: As a customer I should be able to see movies based on my preferences and book
Acceptance Criteria:
1. User should be able to enter their preferences as follows:
a. Preferred Language
b. Format

6. c. Movie Theatre
2. User should see suggested movies sorted based on preferences then the rest and should be
able to book and pay through any payment option.
3. User should be able to change their preferences without leaving the page.
Wireframes
1. Lets begin with the first screen of the preference while onboarding
a. This screen will capture the preferred languages
b. Only Movies of these languages will be shown to customers unless it is change
c. The next button completes the registration and takes them to the Homepage
2. The Homepage
a. Here only the movies based on languages will appear
b. User can change the Preference in the filters option
c. Once the user clicks on the book option he is taken through step by step layers of Choosing
Language, Format, Cinemas, Timings to choose seats and then onto payments page.

7. 3. Booking Assistant :
a. User should be able to book a select and choose the notification for a particular movie.
b. Once chosen the user will get notification once the movie come to the mentioned theatres.

8. c. Once someone clicks on the Early Book option it shows them in a layer format to enter the
Language, Format and Preferred Theatre.
Impact Analysis
Upon Launch the following metrics should be tracked:
1. # of monthly downloads and registrations.
2. # of monthly active users and their activity on the platform.
3. Average # of bookings per customer.
4. Average # of Early booking per customer.
5. # of Cancellation per booking per customer.
6. % of wallet users.
7. Average user session time.
8. Average time to book a ticket.
9. Measure page drop off metrics for each page.
These metrics along with user feedback should help us improve the next release.