media and communication services industry in india. report on cinepolis

7/24/2019 Media and Communication Services Industry in India. Report on Cinepolis

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Sector Media &CommunicationCompany - Cinepolis Group 5, Se

Arpit Jain (1!a"ul Jain (1Atul #upta ($i%e 'ayar As"is" Mis"rMayan #upMant"an A*(1401010 ,

aus"i an !a(1401030/3

Mar etin. o Ser%ices


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rie %er%ie+ Media and Communicationndustry

ntertainment

5ele%ision

#amin.

Animation & $67

8

Music9i.ital

Ad%ertisin.

!adio

6ilms

rint

Segment Value ($ 5ele%ision

rint

6ilms

9i.italAd%ertisin.

Animtion and$67

#amin.

!adio

8

Music

Spllit into Ma*or Se.ments


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'ature and Scope o t"e ndustry

8i."ly ra.mented industry; 'o sin.le company "as enou." s"are to

in=uence t"e entire sector 8i." >?ed costs and "i."ly peris"a@le products

8i." capital re uirements

Access to distri@ution is diBcult

ncreasin. num@er o content pro%iders

Consumers loyalty to+ards one c"annel is less as a %ariety o alternate

sources are a%aila@le


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#lo@al Conte?t o t"e ndustry

5"ird ar.est 5$Mar et 1)/ Million 5$ Sets D


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ndustry SiFe & ro*ected #ro+t"

6GH0/ 6GH0( 6GH10 6GH11 6GH12 6GH13 6GH14 6GH1,: 6GH1): 6GH1%e years +ill see di.ital tec"nolo.ies increase t"eir in=uence all across t"e

industry leadin. to a sea c"an.e in consumer @e"a%iour across all se.ments


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Mar et S"are o Ma*or ndustry Se.ments in 2014

4


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6orecasted Mar et Se.mentation in201

5ele%ision print and >lm

accounted or /4;3E mar

in 2014 rint media +ould @e

lar.est and 8 !

#amin. is e?pected to c

2E to t"e entire industry @ 5ele%ision is e?pected

more mar et s"are in t"

years and e?ptected to c

"al o t"e total mar et @


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5ele%ision ar.est and 6astest #ro+in. Se.ment

6GH14 6GH1(6

'()& '*)+

+#)' +$)(

Su@scr iption !e%enue 5$ Ad%ertisin.

Kit" a .ro+t" rate o 1,;/E in 2011 ndian tele%ision industry stood second +"en compared+it" ! C and ot"er ma*or de%eloped economies

n 2014 ndia tele%ision industry deri%ed its ma*or re%enues rom su@scription c"ar.es; 5"etrend is e?pected to remain t"e same t"rou." t"e ne?t , years +it" minor %ariation


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8i." #ro+t" in !adio Animation #amin. and 9i.italAd%ertisin.

n u!tr" -.pecte C/G0 from # %&1%*

9i.ital Ad%ertisin. 30;2/E

#amin. 14;3/E

!adio 1/;20E

Animation 1);40E

Kit" increasin. use o internet and ot"er di.ital resources 9i.ital Ad%ertisin.is e?pected to .ro+ at t"e astest rate amon. peers li e print media radioand outdoor ad%ertisin.;

9urin. 2014-1 t"ese se.ments are e?pected to increase at t"eollo+in. le%els:


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Ad%ertisin. !e%enues

3

3);,

1,;4

, 4;1

Sale!

rint 5$9i.ital Ad%ertisin.

8!adio

5otal spendin. on ad%ertisin. acr

media stood at D ); n

e?pected to touc" D


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9emand 9ri%ers

!isin. ncome e%els& ncreased nternetIsa.e %ol%in. i estyles

leadin. to a "i."erdemand o aspirationalproducts

ncreased usa.e o 3# 4#and porta@le de%ices

ncreasin.n%estments

8i."er 69 n=o+s ncreasin. M&A acti%ity ntry o @i. players

across all se.ment o t"eindustry

olicy Support ncreasin. 69 li 9i.itiFation o ca

distri@ution ncreasin. li@erand ta? rela?atio


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ottlenec s in ntertainment ndustry

ndia is only second to C"ina in t"e Asia aci>c re.ion interms o users accessin. pirated content online

ac o proper le.al rame+or to deal +it" copyri."tin rin.ementiracy

ndia +it" 2;0 M@ps a%era.e connection speed o 2M@ps is ran ed amon. t"e lo+est in t"e +orld inconnection speeds

9iBcult or comapanies to pu@lis" media online orcustomers

oor and+idt"

ac o ro@ust payment mec"anisms to ma e contentaccessi@le on t"e internet

irated content easily a%aila@le on t"e internet

ac o 9i.italayment #ate+ays

( ay per %ie+ !ise in t"e num@er o serious .amers due to launc" o

premium consoles 9iBcult or companies to ma e it accesi@le to more

customers

8i." 5a? ncidence


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#o%ernment nitiati%es

9i.itiFin. t"e ca@le distri@ution sector to attract .reater institutional undin.

69 limit rom nancial and mar etin. resources


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9e%elopment n%estments

Cinepolis ndia ri%ate imited t"e ndian mo%ie e?"i@ition arm o Me?ican

c"ain Cinepolis "as plans to add )0 screens to ta e its total count to o%er 2,0

screens @y t"e end o 201,

S5A! ndia a unit o 21st Century 6o? ac uired t"e entire @roadcast @usiness

o MAA 5ele%ision 'et+or

'et=i? one o t"e leadin. on-demand internet streamin. media companies in

t"e +orld "as >rmed up its plans to enter ndian mar et @y 201) Carni%al 6ilms ri%ate imited ac uired Star.aFe ntertainment ri%ate

imited a multiple? company rom a unit o Mu es" Am@ani-controlled

'et+or 1/ Media and n%estments imited;


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S ill 9e%elopment

mployment in Media andcommunication industry 0;4mn

ro*ected to .ro+ at a CA#! o 13E

ac o *o@ security use o

reelancers unattracti%e entry

salaries at entry le%els are t"e

reasons or people not applyin. or

t"e *o@s

, ,1,

3,

40

-mplo"ment # %+ (% 2 3 &

Animation$67 and#amin.

5ele%ision C

Source: Media & ntertainment 'S9C s ill study 201,


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n%estment in t"e Sector

5rends o n%estment ($olume and $alue

((


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6ilm ndustry er ormance


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Cinepolis in ndia

1 st nternational Multiple? c"ain esta@lis"ed t"rou." a 100E69 route

pened 1 st cinema in Amritsar in 200

Ac uired 6I' Cinemas in 2014

3 rd lar.est player ( collection Attendance

4 t" lar.est in ndia (Screen Count

nly operator o 2 me.aple?es in ndia (as o May 201,


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Cinepolis in ndia


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S60-7G681 KorldHs 4t" lar.est multiple? c"ain +it"operations in 12 countries2 ar.est operator o lu?ury cinema .lo@ally3 n "ouse .ourmet ood e?pertise4 Strate.ic tie ups +it" !entra !eal-9Osystems and MA7 in ndia, Can tie up +it" mo%ie producers or >lmpromotions in atin America

9-/:7-SS1 ac o 1st mo%er ad%anta.e

2 9istri@utor s"are pretty "i." nearin. to4


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IS 6rance Spain I #ermany Japan C"ina ndia

0

20

40

)0

/0

100

120

140

12,

/, /2

)1,lm arran.ed to orm a star

'ame +ritten ne?t to it +it" an emp"asis on VeL or t"e ri."t pronunciation

Com@ination o yello+ and @lue to con%ey t"at t"e @rand stands or "appiness and un

U0>

cinepolis;com and cinepolisindia;com

arent companyLs I! carries t"e name alone a .ood +ay to s"o+ aut"enticity and uni ueness

ndian operations carry VindiaL alon. +it" actual name an indicator t"at t"e ndian operations are independent

d l ( d


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rand lements (contd; C aracter

'o c"aracters are used in t"e mar etin. communications t is *usti>ed as t"e name stands or a VplaceL and not a Vc"aracterL

Slogan V a Capital del CineL or VCapital o CinemaL !etains t"e +ord VcineL rom t"e name to emp"asiFe on +"at t"e @rand oPers S"o+s t"e dominance o t"e @rand in t"e industry +it" t"e +ord VcapitalL

Eingle 'o *in.les are used @y Cinepolis or Cinepolis ndia n line +it" companyLs ad%ertisin. strate.y arent company ad%ertises in countries li e raFil ISA @ut doesnLt use *in.les


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Cinepolis Pers

Cinepolis

$

MA7

!eal9

39

9ol@y

Atmos

497

CoP ee

5ree

S %i i


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Ser%ice ine Cinepoli!

asic multiple? +it" all t"e re uired acilities

rices and acilities at par +it" ma*or competitors

Cinepoli!V < u?urious cinema +atc"in. e?perience

est-in-Class seats and customer ser%ice

M/@

8as t"e capacity to record and display ima.es o ar .reater siFe and resolution t"ancon%entional >lm systems

Cinepolis is one o t"e e+ multiple? c"ains to s"o+case mo%ies in MA7 standards

Ser%ice ine (contd;


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Ser%ice ine (contd; &D@

A ully immersi%e mo%ie e?perience +it" a real simulation o ePects li e motion seats +ater

+ind o. li."tenin. and scents

ndiaLs >rst 497

Dol=" /tmo! 5"e >rst truly immersi%e surround sound t"eatre e?perience

0ealD +D A di.ital stereoscopic pro*ection tec"nolo.y made and sold @y !eal9

Currently t"e most +idely used tec"nolo.y or +atc"in. 39 >lms in t"eatres;

CoFee6ree an Cinecafe ?clusi%e .ourmet ood e?perience

Pers more %arieties t"an competitors

ricin Strate y


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ricin. Strate.y

Market ;riente


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Communication Mi?

Communication Mi?


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Communication Mi?

Communication Mi?


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Communication Mi?

Communication Mi?


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Communication Mi?

6uture Mar etin Strate y


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6uture Mar etin. Strate.y

9i.ital 9isplay Ads (!etar.etin. Ke@site 5a eo%ers @lasts and e'e+sletters #eo & e"a%ioral 5ar.etin. (Cate.ory

a@andoned cart Social Media (6 5+ nsta.ram

rint Ma*or 'e+spapers Community 'e+spapers i estyle Ma.aFines Community Ma.aFines #eo 5ar.eted nserts

8 ill@oards Mo@ile ill@oards us S"elters us Kraps

9irect Mail #eo 9emo tar.eted "i."-end m

! ocal %ents Sponsors"ips 6undraisers & 9onations

!e%enue Mana ement


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!e%enue Mana.ement

6ood and @e%era.e operations in"ouse

eases =oor space on a rent plusre%enue s"arin. model

o? oBce collection ul Sales 5"eatre ad%ertisements u?ury cinema Mo%ie %ouc"ers

!oad@loc s in !e%enue Mana ement


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!oad@loc s in !e%enue Mana.ement

nly 30E re%enue comes rom in "ouse @e%era.es nline @oo in.s contri@ute up to 30E o t"e re%enue 9elay in #o%ernment appro%als or esta@lis"in. ne+ cinema

"all #o%ernment re.ulations in certain .eo.rap"ies leadin. to

re%enue loss 9elay in "andin. o%er t"e premises o desi.nated spaces

iracy

Ser%ice rocess


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Ser%ice rocess

ottlenec s in ser%ice process


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p

9ue to paucity o staP resource allocation at ood counter and @o?oBce counter poses a @i. c"allen.e

ac o tec"nical o staP to support .litc"es encountered at iosmac"ines

nconsistency in customer e?perience due to "i." demand at pea"ours

9emand and Supply


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pp y

5"e %ariation can @e attri@uted to many actors li e @i. releases to+ards t"e last 2uarters ( id 9i+ali and C"ristmas etc;

#enerally Supply ( o? Bce tic ets leads t"e 9emand e?cept or i. 5ic et releasesand esti%e seasons

uarter /Aerage ;ccupanc"1 (Jan-Marc" 1)E

2 (April-June 2)E

3 (July-Septem@er 32E

4 ( cto@er-9ecem@er 4,E

n sync +it" t"e industry a%era.e t"e a%era.e occupancy rate per year isclose to 2,-30E

5"ere is a %ariation in t"e occupancy rate in eac" uarter

9emand and Supply (contd;


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pp y ( ; n concessions department( 6ood and e%era.es t"e demand is close to or .reater

t"an t"e supply as a .ood num@er o customers "a%e to @e ser%ed in t"e inter%al .ap+"ic" is an operational c"allen.e

CompanyLs ocus is to eep demand and supply +ell @alanced and on eepin.optimum capacity or ma*or part

Deman Management Strateg"H

5"ere are t+o ma*or demand mana.ement strate.ies : Matc" 9emand to Capacityand Matc"in. Capacity to 9emand

Cinepolis uses a mi?ed strate.y in lean periods ocus is on increasin. +al ins +"ic"is acilitated @y special oPers special prices or certain s"o+s etc; Also since t"edemand is more or less cyclical c"an.es in staP count ta e place +"en an increaseddemand is anticipated

9emand and Supply (contd;


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0ecommen ation! for matc ing Deman an Suppl"

Bo. ;Ice Carry out diPerential pricin. strate.y or s"o+s +"ic" "a%e lo+er

occupancy Come up +it" specially curated oPers li e uy 1 #et 1W uy 2 #et 1

sc"emes to increase demand in ncrease Customer articipation in%est in tec"nolo.y and promote -

@oo in. o tic ets +"ic" +ould cut manual costs and +aitin. time at o?Bce or customers

ncrease ocus on ul oo in.s +"ic" +ould "elp increase demand inlean season

Conce!!ion! Cross 5rain mployees : mployees s"ould @e trained in all aspects-

Is"erin. Concession Ser%er CoPee 5ree Ser%er and o? Bceoperations so as to meet demand

Moti%ate customers to opt or ser%e-on-seat oPer

pp y ( ;

Customer i etime


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$alueSimple C>V'o; o Attendees in t"e last year 11 11/ 2

5otal Mar etin. ud.et ( Assumin.

20E o !e%enues

4


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ac"ie%ed $ can pro%ide an e?act >.ure or t"e companyHs lar.est asset +"ic" israrely mentioned in t"e Annual !eport; 5"e calculations [email protected] to ollo+ t"e pro.ress o%er time and to inter%ene i e%entsstart mo%in. in t"e +ron. direction

C $ could @e used to calculate t"e pro>ta@ility o an unc"an.edac uisition strate.y compared +it" an alternati%e uture strate.y @asedon customer retention and de%elopment

6orecastin. +it" customer satis action is possi@le usin. C $

Company can ac"ie%e muc" @etter results (suc" as a+areness and

ima.e @y c"oosin. tar.et .roups communication c"annels and e%ent"e messa.e to @e deli%ered usin. C $

5"e uture pro>t rom an in%estment in a ne+ loyalty pro.rammeincludin. t"e results o diPerent orms o customer re+ards (discountse?clusi%e oPers special ser%ice up.radin. etc; could @e learned @ycalculatin. C $ +it" a loyalty pro.ramme

Customer i etime $alue : !ecommendation


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Cinepolis oyalty ro.ram s"ould @e ocused on t"e diPerentcustomer se.ments

5ar.eted oPers s"ould @e pro%ided to t"e o+ners 9iscountin. or ot"er lucrati%e oPers +it" immediate returns

s"ould @e pro%ided rat"er t"an t"e current met"od 6ocus s"ould @e on increasin. customer @ase in t"e oyalty

pro.ram to le%era.e customer in ormation Ise o SeasonLs pass to increase i etime $alue and reduce

C"urnin. s"ould @e ocused on Company s"ould ocus on its superior oPerin.s li e 49? 9ol@y

and 39 to increase t"e C $

Ser%ice Mar etin. 5rian.le


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Ser%ice $alue C"ain


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mployee mpo+erment in Ser%ice 9eli%ery


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ene>ts: uic er responses

employees eel moreresponsi@le employees tend to interact

+it" +armt" ent"usiasm empo+ered employees are

a .reat source o ideas positi%e +ord-o -mout"

rom customers

9ra+@ac s: .reater in%estments i

selection and trainin. "i."er la@or costs slo+er and or incons

deli%ery may %iolate custome

perceptions o air p Y.i%in. a+ay t"e store

(ma in. @ad decisio

Customers !ole in Ser%ice 9eli%ery


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Ypartial employeesZ contri@utin. ePort time or ot"er resources to

t"e production process Customer inputs can aPect or.aniFationLs

producti%ity

roducti%e Sources

Customers can contri@ute to t"eir o+n satisfaction +it" t"e ser%ice

@y per ormin. t"eir role ePecti%ely @y +or in. +it" t"e ser%ice pro%ider

t"e quality o t"e ser%ice t"ey recei%e @y as in. uestions

@y ta in. responsi@ility or t"eir o+nsatis action @y complainin. +"en t"ere is a ser%ice

ailure

Uuality & Satis action

Customers may YcompeteZ +it" t"e ser%ice pro%ider Y nternal e?c"an.eZ %s; Y ?ternal e?c"an.eZ

Competitors


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media and communication services industry in india. report on cinepolis

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